TRADE UPDATE #109

A Bite of the Virus

01/04/2021

The Foreign Trade Policy which was all set to roll out on April 1 has yet again been extended by the government till the end of September, giving policymakers more time to make key decisions. While this may be regarded as another detrimental effect of coronavirus that can bite into the Indian economy, economists believe the move is good considering the current fluid situation.

Speaking of unpredictable scenarios, the stranded enormous container ship- Ever Green was successfully unmoored from the Suez Canal, earlier this week. The mishap exposed the vulnerability of the global trade and raised concerns over a potential hike in freight charges. Even The Confederation of Indian Industry (CII) representatives have voiced their opinions in this regard claiming that the steep freight rates are already impacting India’s export competitiveness. We hope that this issue is further highlighted and measures are taken to strengthen the country’s export market.


POLICY

Govt extends current foreign trade policy till September

he government on Wednesday extended the existing foreign trade policy (FTP) for six more months up to September 30 this year, according to a notification. FTP provide guidelines for enhancing exports to push economic growth and create jobs.


LOGISTICS & SHIPPING

"Those Tense 10 Minutes" As Giant Ship Was Freed In Suez Canal

A nearly week-long saga to dislodge a giant container ship stuck in the Suez Canal reached an end Monday as the vessel was freed and traffic resumed through the vital waterway. Authorities expected operations to return to normal within days.


COMMODITY

Time to promote production of chemical free and organic Basmati to increase exports

There is a vast scope for the supply of organic Basmati rice in the international market. Demand of Indian Basmati is decreasing in the countries of European Union because of the Bad Lemon effect as the presence of chemicals and pesticides is more than the international standard. The European Union issued new standards in the pesticides residue content in Basmati for import. Here is a lesson for the growers of Basmati and policy makers for intensive agriculture. Government should promote the production of chemical free and organic Basmati, according to international standards to increase exports. Till date the efforts for chemical free production of Basmati are limited only to farmers and exporters of rice.


MSMES

MSME sector is going to be one of the key areas of NDA govt: PM Modi

Prime Minister Narendra Modi highlighted that MSMEs are going to be one of the key focus areas of the National Democratic Alliance (NDA) government. While addressing the election rally in Puducherry on Tuesday, March 30, PM Modi further highlighted that Rs 14,000 crore has been sanctioned for 3.16 lakh MSMEs in the state with almost 1.5 lakh people directly linked to the sector benefitting.


LOGISTICS & SHIPPING

Must have shipping sector regulator: CII

CII representatives raised concerns on container shortage and high shipping rates, two factors that are impacting India’s export competitiveness.There is a need to have a shipping regulator, pointed out industry body CII’s representatives in a conference on lowering logistics costs.


OTHER NEWS