WTO - Farmers Oppose India's Flexibility On SPS + BUDDHIST TOURISM + Trade News

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In This NEWS Bulletin ***************************************** 1. WTO Talks - Nath’s offer of room on special products irks farmers 2. MARKETING TOURISM -- 11 states stand to gain from ‘Buddhist Tourism’ thrust 3. India set to get $150-m GEF aid for bio diversity 4. Commodity prices to harden in the long run -- Govt measures may offer only temporary relief 5. Futures trade in urad, tur banned 6. Customs duty slashed by 10% on edible oils 7. Duty-free import of maize till Dec 31 8. Corporates, PSUs take up quality management - ASQ norms also to help trade ---- WTO TALKS --- Nath’s offer of room on special products irks farmers http://www.financialexpress.com/fe_full_story.php?content_id=153014 ASHOK B SHARMA Posted online: Monday, January 29, 2007 at 0000 hours IST NEW DELHI, JAN 28: The issue of special safeguard mechanism (SSM) and special products (SPs) in agriculture has assumed importance in discussions for WTO talks resumption. This was after commerce and industry minister Kamal Nath’s recent offer of flexibility on the topic. Nath, who is currently at Davos for the World Economic Forum summit, has reportedly said that India was willing to discuss indicators on SPs and the

SSM, based on the 2005 Hong Kong ministerial declaration. He also insisted that the US brings down its trade-distorting subsidies to the $15 billion-level, with clear disciplines for product-specific caps in the most trade-distorting aggregate measure of support and counter-cyclical payments. Nath’s unilateral offer has invited sharp criticism from the country’s farmers who termed it “unwarranted” at this juncture. “The commerce minister should have insisted on both the European Union (EU) and the US to reduce their farm protection, rather than making an unilateral offer of concession from the developing world,” said Krishan Bir Chaudhary, executive chairman of Bharat Krishak Samaj, adding, “every agriculture product in the developing world is a concern of livelihood security and therefore, qualifies as special products.” The commerce minister’s missive evidently follows WTO director-general Pascal Lamy’s

series of “green room” meetings in Geneva and his pronouncement to “re-energise” the Doha Development Round and to provide a platform for the group of four —the US, the EU, Brazil and India—for setting the agenda for future negotiations. However, against Nath’s suggestion for US capping its trade-distorting subsidies to a $15 billion-level, Brazilian ambassador Roberto Abdenur said, “It should be capped at $ 12 billion-level” All India Kisan Sabha general secretary Atul Kumar Anjaan said: “In the name of reviving the stalled talks, the commerce minister has no right to sacrifice the interests of farmers of the Third World.” The group of least developed and developing countries, G-33, is very serious about getting benefits of SPs and the SSM. India is also associated with this group of countries and also with the G-20 combination. India’s role is, therefore, vital in discussions

on SPs and the SSM. G-33 had proposed that 20% of the products should be designated as SPs, which would result in about 300 tariff lines being protected from any possible surge in imports. But the US counter-proposal allows protection of only 5 tariff lines. The G-33 proposal still allows for tariff reduction on 90% of agricultural tariff lines, while allowing developing countries to provide limited exemption from tariff cuts on 10% of the agricultural tariff lines or to liberalise a limited number of other products more slowly than would otherwise be the case. A paper, recently released by the World Bank, had criticised the G-33 proposal inferring that raising agricultural prices substantially through SPs “would create large increases in poverty – sufficient in some cases to undo decades of development progress—and push the already poor deeper into poverty.” G-33 has questioned Bank’s credibility on the issue

and said it had ignored the reality of the prevailing agrarian structures in most developing countries and has misinterpreted the operation and impacts of SPs. India farmers, however, disagrees with the modest approach of G-33 on SPs and want every farm products to be designated as SPs. Alternatively, the countries be given back the right to impose quantitative restrictions (QRs) on imports, whenever necessary. Recently, at a summit meeting of Afro-Asian Rural Development Organisation (AARDO) in Delhi, it was resolved that countries in the region should collectively face the challenges of WTO.----- MARKETING TOURISM -- 11 states stand to gain from ‘Buddhist Tourism’ thrust http://www.financialexpress.com/fe_full_story.php?content_id=153030 ASHOK B SHARMA Posted online: Monday, January 29, 2007 at 0022 hours IST NEW DELHI : As India gears up to market Lord Buddha to attract global tourists, about 11 states stand to reap major benefits if they make sincere efforts to upgrade the identified circuits. The Union ministry for tourism and culture has chalked out an action plan to promote “Buddhist tourism” around places having direct association with Lord Buddha’s life and mission. These are Kapilavastu, Sarnath, Kaushambi, Shravasti, Sankisa and Kushinagar in Uttar Pradesh and Bodhgaya, Nalanda, Rajgir and Vaishali in Bihar. Indian Railway Catering and Tourism Corporation Ltd (IRCTC) is slated to launch a luxury coach—Mahaparinirvan Special

Express—in March 2007 from Delhi, which would facilitate tourists to visit all these places. Year 2007 is the 2,550th year of the attainment of mahapariniravan or salvation by Lord Buddha. The eight-day tour package of Mahaparinirvan Express includes train and road travel, hotel accommodation, meals and incidental expenses like site entry and guide charges. The package also provides flexible options. Apart from Uttar Pradesh and Bihar, the other states that house icons of Buddhism are Orissa, Maharashtra, Andhra Pradesh, Chhattisgarh and Madhya Pradesh. States like Himachal Pradesh, Sikkim, Arunachal Pradesh and Jammu & Kashmir (Ladakh and Leh) have schools of learning and practices of Buddhism, particularly those relating to the Vajrayana/Lamaism sect and also spots for nature and adventure tourism. Thus, in all, 11 states have sites that are of specific interests to “Buddhist Tourism”. A study by ICRA

Management Consulting Services Ltd (iMaCS) on behalf of the Federation of Indian Chambers of Commerce & Industry (Ficci) has estimated that if “Buddhist Tourism” is sincerely promoted, it can attract about million tourists by 2012, a rise by 400% over the flow of 200,000 Buddhist tourists in 2004. The increased tourist flow would result in spillover effects, providing employment opportunities and increased local income. The government also plans to launch a website in Chinese and train guides in Chinese to attract tourists from China. Union minister for tourism and culture, Ambika Soni, has urged all stakeholders, including the state governments concerned, corporate sector and travel and tour operators to make sincere efforts to upgrade infrastructure and restore Buddhists sites. She urged state governments to seek overseas aid, if necessary. Soni lauded the Bihar government for making sincere efforts in this direction. “We have made

special efforts jointly with the Bihar government to improve the road from Gaya to Bodhgaya, removed illegal occupants of the land around the Mahabodhi temple by creating two new commercial hubs. We have also planned to restore Sarnath to to its full glory”, she told FE. Andhra Pradesh tourism minister, J Geeta Reddy, said her state was once the seat of Mahayana Buddhism and had four relevant tourist circuits like Hyderabad-Kondapur-Phanigiri-Anapu-Gajulabanda-Nagarjunakonda-Dulikatta, Guntur-Chandavaram-Amravati-Vaddamanu-Bhattiprolu, Vijayawada-Ghantasala-Nelakondapalle-Jaggayyapeta-Guntupalle and Visakhapatnam-Sankaram-Thotlakonda-Bavikonda-Pavurallakond-Salihundam-Dantapuram. She said was impressed with the Kalachakra ceremony held in the state in January 2006 for which her government spent Rs 55 crore. In Orissa, the important Buddhist sites are Udaigiri, Ratnagiri, Lalitgiri and Dhauli. In Maharashtra,

major Buddhist sites are Ajanta, Ellora, Kanheri, Karla, Bhaja and Bedsa and Sanchi and Sirpur areas in Madhya Pradesh and Chhattisgarh. The Japan Bank for International Cooperation has so far assisted four projects in Uttar Pradesh, Bihar and Maharashtra amounting to Rs 1,200crore. It has plans for assisting development of other Buddhist circuits in India and the Heritage Corridor between Delhi and Mumbai.--------- India set to get $150-m GEF aid for bio-diversity and environment http://www.financialexpress.com/fe_full_story.php?content_id=152610 ASHOK B SHARMA Posted online: Wednesday, January 24, 2007 at 0024 hours IST NEW DELHI, JAN 23

: India is likely to receive around $150-million assistance from the global environment facility (GEF) in the next four years for several green projects and also those related to bio-diversity conservation. India is also a major beneficiary of GEF’s small grants programme (SGP) which has been implemented by the United Nations Development Programme (UNDP) in 90 countries. A new SGP eco-development and bio-diversity project for a cluster of 28 villages in Tumkur district in Karnataka will be launched on Wednesday in Bangalore. Talking to FE, the GEF chairperson, Monique Barbut said, “India is a major beneficiary. We have financed several projects in India amounting to $180 million. GEF’s financing led to co-financing by different agencies to the tune of $1 billion.” Barbut said many project proposals from India were under consideration, the total fund flow from GEF may touch

$150 million in the next four years. She said though GEF was an important part of the public sector’s effort to address growing environmental problems, it had kept aside $50 million corpus for funding private sector initiatives. Barbut was in India to participate in the Delhi sustainable development summit and discuss eco-development with the Federation of Indian Chambers of Commerce and Industry (FICCI). She said GEF had financed several projects to the extent of $2 billion in 140 developing countries during 2006. GEF's efforts have also helped generate $22 billion co-financing from different agencies. India is also a donor of the GEF Fund. Out of the last replenishment of $3.2 billion contributed by donar countries, India and China contributed $9 million each. Barbut lauded India’s efforts and said in many projects the country was able to do without GEF funding. In a World Bank-assisted wind energy project,

India returned $28 million assistance by GEF. There are more than 185 community-based projects in India funded under SGP. SGP funds to the extent of $ 20,000, mainly for small projects. -------- Commodity prices to harden in the long run Govt measures may offer only temporary relief http://www.financialexpress.com/fe_full_story.php?content_id=153009 ASHOK B SHARMA Posted online: Monday, January 29, 2007 at 0000 hours IST NEW DELHI, JAN 28: Rising price trends in many essential commodities may soften in the immediate future, but are likely to begin firming up in the medium and long-term. As both the global scenario and the domestic

supply and demand ratio impact the price situation within the country, market analysts feel that government policy measures will have a definite bearing on price management. Banning exports of commodities in shortage, massive offloading of stocks held by traders and disallowing price manipulations in the futures market are some of the policy measures to arrest the rising trend in prices The current year the rising domestic prices of essential commodities invited the concern of the government, particularly when the inflation rate measured on the point-to-point movement in the wholesale price index (WPI) shot up to 6.12% for the week ended January 6, 2007. It, however, marginally sobered down next week to be at 5.59%. In the retail markets, prices remain considerably high over the previous year - price of rice shot up to Rs 17 per kg in January 22, 2007 from Rs 13 per kg in

January 20, 2006 in Delhi. Price of wheat shot up to Rs 16.5 per kg in January 22, 2005 from Rs 12.5 per kg in January 20, 2006 in Mumbai. Retail prices of gram and tur have sobered down recently due offloading of imported pulses in the domestic market and banning of exports impulses. The sugar prices recently have sobered down at some places with the prospects of a better output. Hurdles • Market analysts feel that government policy measures will have a definite bearing on price management• In the retail markets, prices remain considerably high over the previous year According to market analyst, Nagraj Meda of TransGraph Consulting Pvt Ltd, “There is a possibility of a long-term firm trend in Indian sugar prices with the lifting of the ban on sugar exports.” He explains that sugar prices in the country is likely to dip with a projected production of 22.8 million tonne and with a carryover

stock of 4 million tonne from the previous year. But the increase in consumption demand from 19 million tonne to 19.7 million tonne, export of about 2 million tonne would result in increase in prices in the long-term. Similarly in the global situation, despite good sugar output, the diversion of cane to ethanol production in Brazil would provide support to prices in the long run. Several experts say that the rising global prices for maize and the increasing demand in the global market for cheap maize from India, may cause further aggravate the price and availability situation in the country, unless exports are banned. According to TransGraph maize futures (February 2007) prices on NCDEX is likely to be in the range of Rs 750-84 in the next two months. India is comfortably placed with increased area coverage under wheat and better

prospects of a bumper crop in the current season. According to some experts the export ban would result in greater availability of wheat in the country, but measures like discouraging hoarding of stocks and checking market manipulation would help in arresting the rising trend in prices.----- Futures trade in urad, tur banned http://www.financialexpress.com/fe_full_story.php?content_id=152626 ASHOK B SHARMA Posted online: Wednesday, January 24, 2007 at 0057 hours IST NEW DELHI, JAN 23: A day after the finance ministry cut customs duty on cement and other products to check inflation, commodities market regulator Forward

Markets Commission (FMC) imposed a temporary ban on two essential commodities, urad and tur (varieties of pulses), from futures trading. Delisting these two commodities for trade on all exchanges, the FMC directive asked traders to square off all their positions at Tuesday’s closing price. Traders have been told not to trade in these two commodities without the permission of the FMC. The rising prices of essential commodities have been an issue of major concern within various sections in the government. The government allowed free import of pulses against zero duty, but even this failed to ease the situation with inflation climbing to 6.12% for the week ended January 6. When inflation breached the 6% mark, the finance ministry said among food items, urad, tea, tomatoes, coconut and arhar were a matter for concern. A statement said the ministry was in touch with the agriculture

ministry on how to control the rising prices of these commodities. Pulse Of Inflation • Finmin has been in touch with the agriculture ministry over the rising prices of urad, tea, tomatoes, coconut and arhar • The FMC move is likely to have a sobering affect on the prices of all other agri commodities impacting inflation The open interest position of tur to date was Rs 151 crore and that of urad was Rs 104 crore on the National Commodity & Derivatives Exchange Ltd, the largest bourse for futures trading in pulses. NCDEX chief Narendra Gupta confirmed to FE the FMC directive. The tur desi futures for Feb 7 on NCDEX was Rs 2,280 per 10 tonne, for March 7 Rs 2,471, for April 7 Rs 2,520, for May 7 Rs 2,565 and for June 7 Rs 2,600. The desi urad futures quoted on NCDEX for Feb 7 was Rs 3, 248 per 10 tonne, for March 7 Rs 3,160, for April 7 Rs 3,010, for May 7 Rs 2,940 and for June

7 Rs 2,905. The Tuesday spot prices for tur desi was Rs 2,337.20 and for urad Rs 3,100-3,359.40.--------- Customs duty slashed by 10% on edible oils http://www.financialexpress.com/fe_full_story.php?content_id=152679 ASHOK B SHARMA Posted online: Thursday, January 25, 2007 at 0000 hours IST NEW DELHI, JAN 24: As part of its continuing measures to rein in rising prices of essential commodities, the government on Wednesday made a 10% duty cut on imports of crude palm oil (CPO), crude palmolein, refined and crude sunflower oils Earlier, on August 11, 2006, the government had reduced import duty on refined palm

oil and RBD palmolien, from 90% to 80%. For CPO the reduction was from 80% to 70%. The tariff values for palm group of oils were frozen at July 2006 levels. According to a notification issued by the customs department on Wednesday, the import duty on refined bleached deodorized (RBD) palm oil and RBD palmolien have been further reduced from 80% to 67.5 %. Duty on crude sunflower oil has been reduced from 75% to 65% and that on refined sunflower oil from 85% to 75%. With this recent reduction in customs duty, coupled with the freezing of tariff values, the government expects that the landed cost of these vegetable oils will be cheaper and have sobering effect on domestic prices. Vegetable oils have an weightage of 2.22% in the wholesale price index (WPI). It is clubed in the manufactured food products category, which has a combined weightage of 11%. A panic situation was created

when the inflation rate based on point-to-point movement in WPI, for the weekended January 6, touched 6.12% The government with a view to calm down the rising prices of essential commodities had initiated several measures like exempting customs duty on wheat and pulses and allowing tariff rate quota import (TRQ) of sugar against a reduced duty of 20%. It had on July 4, 2006 banned exports of sugar and later totally lifted the ban on January 2007. It had banned exports of pulses and wheat and authorised state government to initiate dehording drive and impose restrictions on movement of some agro commodities. On Tuesday the regulator, Forward Markets Commission, imposed a temporary ban on futures trading in urad and tur. On Tuesday, a delegation led by the Indian Vanaspati Producers Association (IVPA) had suggested to the Union agriculture minister, Sharad Pawar that they be allowed to import CPO against a lower

duty of 20%. Industry produces vanaspati by hydrogenating CPO. IVPA delegation told the minister that cheap import of CPO by the industry, solely for the purpose of producing vanaspati would help to reduce the cost of production and give them a level playing field to face the influx of cheap vanaspati products from Nepal and Sri Lanka under free trade agreements with these countries. "Nothing happened to help the vanaspati industry", said Gurumoorthi, the executive director of Vanaspati Manufactuers Association (VMA).---------------------- Duty-free import of maize till Dec 31 http://www.financialexpress.com/fe_full_story.php?content_id=152816 ASHOK B SHARMAPosted online: Friday, January 26,

2007 at 0057 hours IST NEW DELHI, JAN 25: In another attempt to rein in the rising prices of essential commodities, government on Thursday allowed duty-free imports of maize for the year 2007. After wheat and pulses, maize becomes the third agro commodity in which the government has allowed dutyfree import. On Wednesday the government reduced the import duty on vegetable oils for the second time in the current fiscal, by reducing customs duty on crude palm oil (CPO), crude palmolein, refined and crude sunflower oils by 10%. Earlier in mid-2006, the government allowed import of sugar under tariff rate quota (TRQ) against a reduced duty of 20%. “Keeping in view the high price of maize, government has now decided to allow imports of maize at nil customs duty till December 31, 2007,” an official press release said. Maize, which had an import duty of 60% was in

short supply in recent months, pushing up domestic prices. The global prices of maize too is ruling high due to shortfall in production due to ban on export imposed by China and diversion of maize in the US to ethanol production. Maize is in the category of primary articles in the government’s wholesale price index (WPI). The primary articles has a high weightage of 22.02% in the WPI. Government was very much concerned when the inflation rate based on the point-to-point movement of WPI for the weekended January 6, 2007 touched 6.12%. However the inflation rate declined to 5.59% for the weekend January 13, 2007, but still higher than Reserve Bank of India (RBI) forecast range of 5%-5.5% According to government’s estimate maize production in the current year is likely to be 12.75 million tonne. The poultry and starch industry has estimate a shortfall of one million tonne. Industry have alleged that taking

advantage of the high global prices exporters are exporting maize. Currently India exports corn to Sri Lanka, Bangladesh and Nepal. The poultry industry had earlier urged the government to impose a ban on maize export. With a view to deal with the situation of rising domestic prices, the government banned exports of wheat and pulses. On July 4, 2006, it had banned sugar exports but later on January, 2007 totally lifted the ban. Farmers’ and consumers’ organisations had suggested to the government that the rise in prices was primarily due to largescale hoarding of stocks by traders and corporates and MNCs and manipulations in the futures market. The Union government woke up to the reality and authorised the state governments to initiate de-hoarding drive. Recently the government also imposed a temporary ban on futures trading in certain pulses like urad and

tur.------------------ Corporates, PSUs take up quality management - ASQ norms also to help trade http://www.financialexpress.com/fe_full_story.php?content_id=153025 ASHOK B SHARMA Posted online: Monday, January 29, 2007 at 0012 hours IST NEW DELHI, JAN 28 : Quality management - in the name of Lean Six Sigma programme - has come to the rescue of Indian corporates and public sector companies in reducing resource wastage, improving profit margins, making them globally competitive in the process. Lean, a Japanese concept developed by the Toyota group, is the method of reducing wastage in resources, time and manpower in entire production and

distribution chain. Six Sigma, a concept developed by Motorola and perfected by GE through Jack Welsh, reduces variations or defects in the entire chain. The combination of these two concepts, Lean Six Sigma is being propagated by American Society for Quality (ASQ). Speaking to FE, the past president of ASQ, Elizabeth M Keim said : “We alongwith FICCI are training professionals in the manufacturing and services sector in India in Lean Six Sigma programme in India. Professionals from some public sector companies like BHEL, NTPC and Defence Quality Organisation are participating in the programme”. According to Keim, there is a need developing quality much beyond the level of mere certification. “Government regulates the safety level of the product, whereas the quality is something more. It is market-driven, based on consumers’ preference”, she said. She said that India can be more competitive in global trade if it can

become more competitive in quality and not adhere to mere compliance of norms. “What we need is performance-oriented quality, new innovative quality and branding of quality,” she said. ASQ training consists of 20-day course in quality management and work on two projects followed by a written examination. After evaluation certificate of merit is award to the deserving professionals. There are two categories of certification – Black Belt and Green Belt. For Black Belt professionals evaluation of performance is done in every three years for which a fresh certificate is given. “This periodic review of trained professionals is necessary to encourage them to be more and more innovative,” said Keim.----------

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