TRADE UPDATE #133

A Sweet News

17/09/2021

It looks like our sugar traders would soon be on a sugar high as they are now gearing up to witness a bumper export season with the international price of the commodity at a four-year high of around 20 cents/lb. This rise in costs and higher demand from diverse markets comes after Brazil's steep fall in sugar production and also the resulting supply chain issues. Along with sugar, India's rice exports' forecast appears bright as analysts believe India is on the course to dominate the global rice trade in 2021, with the new port capacity promising to boost shipments.

While some commodities are indeed flourishing, not all products are that lucky. Industry experts opine that the global shortage of components, including semiconductor chips used in smartphones, may drive up the costs of the devices or lead to fewer launches ahead of the festival season. Perhaps, India needs to focus on creating a semiconductor ecosystem of its own, to avoid being drastically crippled by such occurrences. If the situation goes further haywire, these rising prices, coupled with the shortage of essential materials, may dampen festivities and spoil the covid-19 recovery party.


ECONOMY

Exports surge 46% in Aug, smart import rebound too

Merchandise exports shot up 45.8% in August to $33.3 billion y-o-y, supported by a conducive base, improved order flow from western markets and elevated global commodity prices. Exports also saw a 28% jump over the pre-Covid (same month in FY20) level, as a resurgence in advanced economies bolstered demand for goods.


INTERNATIONAL TRADE

OECD seeks global plan for carbon prices to avoid trade wars

The Organisation for Economic Co-operation and Development is seeking a new global plan for carbon prices that it hopes will prevent trade wars from erupting between countries with different green policies.


ECONOMY

PHDCCI identifies 75 potential products, markets to take exports to $750 bn by 2027

Industry chamber PHDCCI on Sunday said it has identified as many as 75 potential products from nine sectors, including agriculture and minerals, and as many markets like the US and Europe, which can help take India's exports to USD 750 billion by 2027.


SHIPPING & LOGISTICS

Explained: Why there is a major container shortage, and its impact on international trade

The government is in talks with exporters to help them deal with an international container shortage that has led to freight rates rising by over 300 per cent in the past year for key shipping routes. We examine why there is a major container shortage and what the government can do to address the issue.


COMMODITY

Component supply constraints may push up phone prices: Industry experts

Festive season this year is likely to see fewer launches by smartphone companies and prices of existing devices could rise by 7-10 per cent as players are grappling with severe shortage of components, including semiconductor chips, according to industry experts.


OTHER NEWS