The production of natural rubber rose by 43 per cent to 62,000 tons last month as against 43,480 tons in the year-ago period, according to the Rubber Board's provisional data.
"Increase in production is due to favourable climatic conditions, increase in tapping days and better price," a senior Rubber Board official told PTI.
However, natural rubber consumption in June increased marginally by 2.16 per cent to 71,000 tons, against 69,495 tons in the year-ago period.
During the period under review, the export of natural rubber has more than doubled to 8,500 tons, compared to 4,105 tons, while import witnessed a marginal increase to 7,200 tons as against 7,198 tons in the same period last year.
"Export during June 2008 doubled than June 2007 due to price differential. However, there is least scope for import due to hike in international price," he said.
In its projection for the entire 2008-09 fiscal, the Rubber Board has pegged the natural rubber output at 8.75 lakh tons and consumption at 8.99 lakh tons in 2008-09.
The exports and imports are estimated at 50,000 tons and 80,000 tons respectively for 2008-09 fiscal.
In 2007-08 fiscal, the production of natural rubber declined by three per cent to 8.25 lakh tons from 8.52 lakh tons in the previous fiscal.
The consumption, however, increased by five per cent to nearly 8.6 lakh tons during 2007-08 as against 8.2 lakh tons in the year-ago period.
India exported 51,381 tons in 2007-08 as compared to 56,545 tons in the previous fiscal. The imports stood at 87,219 tons, against 89,699 tons during the period under review.
Friday, July 04, 2008
Sugar crisis looms large, wheat, rice comfortable: ICRIER
The country is likely to face a severe shortage of sugar and pulses by 2021, with supply falling by over half the demand, according to a study by economic think tank ICRIER.
The study by the Indian Council for Research on International Economic Relations (ICRIER) said India's demand for sugar will rise to 55 million tons (MT) against the supply of 26 MT by 2021 if the gross domestic product (GDP) of the country grows at 8 per cent.
The demand for sugar will rise further to 65.7 MT, if the GDP grows at 9 per cent, it points out. The demand-supply mismatch projection of sugar is a serious concern for the government, which currently gives many a sops to the industry that is plagued by the problems of plenty. Indian sugar industry is facing glut in the domestic market for the second year in a row as production at 26 MT far outstrips demand of 20 MT.
The demand for pulses, too, may spiral to 38.7 MT compared with a supply of 17.6 MT by 2021 at 8 per cent GDP, ICRIER says, adding requirement would rise further to 42.5 MT if economic growth rate strikes 9 per cent.
The situation doesn't get any better for edible oils. The demand is likely to surge to 26.7 MT against a projected supply of 12.5 MT by 2021. However, it's not that worse considering that India currently imports about 5 MT of edible oils, which is about half of its annual need.
However, there is good news on rice and wheat front as the study projects a higher supply of grains than demand. The demand for rice may rise to 96.9 MT, compared with the supply of 105.8 MT, while that for wheat will shoot up to 66.8 MT against supply of 91.6 MT.
The study by the Indian Council for Research on International Economic Relations (ICRIER) said India's demand for sugar will rise to 55 million tons (MT) against the supply of 26 MT by 2021 if the gross domestic product (GDP) of the country grows at 8 per cent.
The demand for sugar will rise further to 65.7 MT, if the GDP grows at 9 per cent, it points out. The demand-supply mismatch projection of sugar is a serious concern for the government, which currently gives many a sops to the industry that is plagued by the problems of plenty. Indian sugar industry is facing glut in the domestic market for the second year in a row as production at 26 MT far outstrips demand of 20 MT.
The demand for pulses, too, may spiral to 38.7 MT compared with a supply of 17.6 MT by 2021 at 8 per cent GDP, ICRIER says, adding requirement would rise further to 42.5 MT if economic growth rate strikes 9 per cent.
The situation doesn't get any better for edible oils. The demand is likely to surge to 26.7 MT against a projected supply of 12.5 MT by 2021. However, it's not that worse considering that India currently imports about 5 MT of edible oils, which is about half of its annual need.
However, there is good news on rice and wheat front as the study projects a higher supply of grains than demand. The demand for rice may rise to 96.9 MT, compared with the supply of 105.8 MT, while that for wheat will shoot up to 66.8 MT against supply of 91.6 MT.
India seeks Kuwait's help for fertiliser sector
India has sought help from Kuwait for reviving its fertiliser industry, plagued by supply constraints and lack of investments for capacity expansion.
"India seeks Kuwaiti participation in revival of Indian fertiliser industry," Commerce and Industry Minister Kamal Nath said in a meeting with Kuwait's Minister of Finance Mustafa Jassim Al-Shamali. The highly subsidised fertiliser industry has not been able to attract fresh investments, resulting in stagnating supplies. With demand for fertilisers on the rise, India depends on imports to meet its requirements.
The government has been undertaking a series of measures to ease the fertiliser subsidy burden and increase availability of fertilisers in the country. It has been looking at setting up units in countries such as Saudi Arabia, Kuwait, Egypt and Nigeria where natural gas, the main fuel for urea plants, is easily available.
Inviting investments for development of infrastructure, power, petroleum and petro-chemical sectors, Nath said the two countries can enhance trade in leather goods, drugs, steel and tourism. In 2007-08, non-oil trade between the two countries amounted to $958.41 million. India's exports to Kuwait during April 2007 and February 2008 was worth $589.78 million, with basmati rice, machinery, meat and preparations, manufactures of metals, primary and semi-finished iron and steel being the major items shipped.
India imported petroleum, crude products, organic chemicals, metal scraps and fertiliser manufactured from Kuwait.
"India seeks Kuwaiti participation in revival of Indian fertiliser industry," Commerce and Industry Minister Kamal Nath said in a meeting with Kuwait's Minister of Finance Mustafa Jassim Al-Shamali. The highly subsidised fertiliser industry has not been able to attract fresh investments, resulting in stagnating supplies. With demand for fertilisers on the rise, India depends on imports to meet its requirements.
The government has been undertaking a series of measures to ease the fertiliser subsidy burden and increase availability of fertilisers in the country. It has been looking at setting up units in countries such as Saudi Arabia, Kuwait, Egypt and Nigeria where natural gas, the main fuel for urea plants, is easily available.
Inviting investments for development of infrastructure, power, petroleum and petro-chemical sectors, Nath said the two countries can enhance trade in leather goods, drugs, steel and tourism. In 2007-08, non-oil trade between the two countries amounted to $958.41 million. India's exports to Kuwait during April 2007 and February 2008 was worth $589.78 million, with basmati rice, machinery, meat and preparations, manufactures of metals, primary and semi-finished iron and steel being the major items shipped.
India imported petroleum, crude products, organic chemicals, metal scraps and fertiliser manufactured from Kuwait.
G8 leaders face worst economic outlook amid high prices
Between surging oil prices, food inflation and a credit crunch that's depressed global growth, leaders from the Group of Eight economic powers face the gravest combination of economic woes in at least a decade when they gather next week.
The outlook has darkened dramatically since last year's summit in Germany, when the leaders declared the global economy was in ``good condition'' and oil cost US$70 a barrel, which seemed high at the time.
Since then, the US subprime mortgage crisis has erupted, roiling markets and battering financial firms. Oil has doubled to above US$140 and food prices have jumped, hurting the poor in particular and raising the threat of political instability.
``Things have changed for the worse across the board,'' said Robert Hormats, vice chairman at Goldman Sachs (International) Corp in New York.
Hormats argues that the economic problems now are more serious and widespread than during the Asian financial crisis of 1997-98, where the pain was largely limited to emerging markets.
``Now you have a financial disorder where the epicenter is the US,'' he said. And fuel and food inflation ``are serious matters that affect large numbers of people.''
Host Japan had put global warming at the top of the summit's agenda, but the dilemma of how to respond to accelerating inflation and slowing global economic growth could grab the spotlight.
Prime Minister Yasuo Fukuda has said he hopes the July 7-9 meeting at a hot springs resort in Hokkaido, Japan's northern island, will ``show some direction'' in tackling oil and food prices but stressed it was only ``one step'' in a longer process.
On oil, analysts are skeptical that the G-8 leaders representing the US, Japan, Britain, France, Germany, Russia, Italy and Canada will come up with much beyond urging major petroleum producers to boost output, reiterating the message of their finance ministers, who met last month in Osaka.
Foreshadowing possible disagreement among the leaders, the finance ministers were divided on where to assign blame for the run-up in oil prices. Germany, France and Italy held speculators largely accountable, while the U.S. and Britain said the focus needed to be on boosting production capacity that has barely kept up with growing global demand.
Soaring crude prices have already forced India, Malaysia, and Indonesia to cut subsidies and raise state-set prices on gasoline and other fuels. Last month, China hiked fuel prices as much as 18 percent.
At the same time, prices of corn, wheat, rice and soybeans and other farm goods have surged due to changing diets, urbanization, expanding populations, extreme weather, growth in biofuel production and speculation.
Spiraling fuel and food costs could drive millions into poverty, the Asian Development Bank has warned. In India, inflation has jumped to a 13-year high of 11.4 percent.
On the food front, the G-8 leaders may announce an aid package or pledging agricultural investment in poorer countries, experts say.
The credit crisis and global market turmoil are sure to be discussed, but with central bankers absent the leaders will most likely avoid saying anything specific about interest rates and currencies. The European Central Bank raised its benchmark interest rate a quarter point Thursday, suggesting it saw inflation as a greater threat than slower growth.
Overall, the summit's main goal will be demonstrating confidence that they can ``work through the oil crisis without causing the global economy to melt down,'' said Tom Cooley, dean of New York University's Stern School of Business.
Given the meeting's emphasis on climate change, the leaders could highlight the links between energy issues and global warming by stressing the importance of energy efficiency and alternative forms of energy, said Goldman's Hormats.
``The key thing is not what they do at these meetings but what they do at home,'' he said.
Oil and energy have remained recurring themes at the annual summits, said Hormats, who participated in several of the first meetings, which started in 1975. That initial gathering came after the 1973-74 oil embargo, when fuel prices surged after Middle East oil producers cut off the U.S. and other countries supporting Israel.
``We now have another oil crisis,'' Hormats said. The summits were originally meant to focus on economic issues, but the agenda has expanded to include terrorism, Africa's development and the environment.
The group's membership also has grown from six to eight, adding Russia in 1997.
But many argue that it should be expanded to include China, the world's fourth-largest economy, and other emerging powerhouses like India and Brazil especially to tackle global issues like energy and climate change.
``At what point will the G-8 realize we're no longer the steering committee for the world economy?'' said Lael Brainard, a former deputy national economic adviser in the Clinton administration who attended several summits in the 1990s and now is a director at the Brookings Institution, a Washington think tank.
Already, the G-8 has been reaching out. It plans meetings with African leaders on the summit's first day, and later with leaders from China, India, Mexico, Brazil and South Africa countries that someday might be a part of the Group of 13.
``These countries are critical to the solution of any of these problems,'' said Brainard. ``I believe it's only a matter of time'' until the club expands.
The outlook has darkened dramatically since last year's summit in Germany, when the leaders declared the global economy was in ``good condition'' and oil cost US$70 a barrel, which seemed high at the time.
Since then, the US subprime mortgage crisis has erupted, roiling markets and battering financial firms. Oil has doubled to above US$140 and food prices have jumped, hurting the poor in particular and raising the threat of political instability.
``Things have changed for the worse across the board,'' said Robert Hormats, vice chairman at Goldman Sachs (International) Corp in New York.
Hormats argues that the economic problems now are more serious and widespread than during the Asian financial crisis of 1997-98, where the pain was largely limited to emerging markets.
``Now you have a financial disorder where the epicenter is the US,'' he said. And fuel and food inflation ``are serious matters that affect large numbers of people.''
Host Japan had put global warming at the top of the summit's agenda, but the dilemma of how to respond to accelerating inflation and slowing global economic growth could grab the spotlight.
Prime Minister Yasuo Fukuda has said he hopes the July 7-9 meeting at a hot springs resort in Hokkaido, Japan's northern island, will ``show some direction'' in tackling oil and food prices but stressed it was only ``one step'' in a longer process.
On oil, analysts are skeptical that the G-8 leaders representing the US, Japan, Britain, France, Germany, Russia, Italy and Canada will come up with much beyond urging major petroleum producers to boost output, reiterating the message of their finance ministers, who met last month in Osaka.
Foreshadowing possible disagreement among the leaders, the finance ministers were divided on where to assign blame for the run-up in oil prices. Germany, France and Italy held speculators largely accountable, while the U.S. and Britain said the focus needed to be on boosting production capacity that has barely kept up with growing global demand.
Soaring crude prices have already forced India, Malaysia, and Indonesia to cut subsidies and raise state-set prices on gasoline and other fuels. Last month, China hiked fuel prices as much as 18 percent.
At the same time, prices of corn, wheat, rice and soybeans and other farm goods have surged due to changing diets, urbanization, expanding populations, extreme weather, growth in biofuel production and speculation.
Spiraling fuel and food costs could drive millions into poverty, the Asian Development Bank has warned. In India, inflation has jumped to a 13-year high of 11.4 percent.
On the food front, the G-8 leaders may announce an aid package or pledging agricultural investment in poorer countries, experts say.
The credit crisis and global market turmoil are sure to be discussed, but with central bankers absent the leaders will most likely avoid saying anything specific about interest rates and currencies. The European Central Bank raised its benchmark interest rate a quarter point Thursday, suggesting it saw inflation as a greater threat than slower growth.
Overall, the summit's main goal will be demonstrating confidence that they can ``work through the oil crisis without causing the global economy to melt down,'' said Tom Cooley, dean of New York University's Stern School of Business.
Given the meeting's emphasis on climate change, the leaders could highlight the links between energy issues and global warming by stressing the importance of energy efficiency and alternative forms of energy, said Goldman's Hormats.
``The key thing is not what they do at these meetings but what they do at home,'' he said.
Oil and energy have remained recurring themes at the annual summits, said Hormats, who participated in several of the first meetings, which started in 1975. That initial gathering came after the 1973-74 oil embargo, when fuel prices surged after Middle East oil producers cut off the U.S. and other countries supporting Israel.
``We now have another oil crisis,'' Hormats said. The summits were originally meant to focus on economic issues, but the agenda has expanded to include terrorism, Africa's development and the environment.
The group's membership also has grown from six to eight, adding Russia in 1997.
But many argue that it should be expanded to include China, the world's fourth-largest economy, and other emerging powerhouses like India and Brazil especially to tackle global issues like energy and climate change.
``At what point will the G-8 realize we're no longer the steering committee for the world economy?'' said Lael Brainard, a former deputy national economic adviser in the Clinton administration who attended several summits in the 1990s and now is a director at the Brookings Institution, a Washington think tank.
Already, the G-8 has been reaching out. It plans meetings with African leaders on the summit's first day, and later with leaders from China, India, Mexico, Brazil and South Africa countries that someday might be a part of the Group of 13.
``These countries are critical to the solution of any of these problems,'' said Brainard. ``I believe it's only a matter of time'' until the club expands.
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