New Delhi, November 11
The country’s exports took a beating for the 13th straight month, as it fell 11.4 per cent in October on little demand for Indian made leather, handicrafts and other products from recession-hit West.

Marked decline was recorded in export of items, including mica and coal during October, though improvement was witnessed in case of iron ore and oil meals. Overseas shipments in the month was $12.5 billion against $14.1 billion in the same period last year.

The decline in exports during first seven months of the current fiscal (April-October 2009-10) worked out to be 26.5 per cent, making it difficult for the government to withdraw stimulus given to the exporters to combat the impact of the global financial meltdown.

Finance Minister Pranab Mukherjee, too, in his address to India Inc this week, said it would not be possible to withdraw stimulus till there was recovery in the developed world which accounts for bulk of India's exports.

Pitching for continuation of stimulus for exporters, Commerce Secretary Rahul Khullar said the exports on year-on-year basis are not likely to turn positive during the course of 2009-10.

However, on month-on-month basis exports are expected to turn positive in January, he said, adding, the exports in January were likely to be more than in December in value terms.

The fall in exports was contained at about three per cent in October as against 13.8 per cent in September.

"If the current trend continues (arrest in decline), export growth is likely to transit to a positive phase by January 2010," Khullar said.

The apex exporters body Federation of Indian Export Organisations (FIEO) said in the first quarter of the next calender year, exports may show positive growth. During April-October this fiscal, exports recorded a level of $90.4 billion against $123 billion.

Shipment of engineering good exports in October fell by 25.1 per cent to $2.33 billion, while gems and jewellery dipped by a meagre 1.1 per cent to $2.29 billion compared with the same period last year.

Petroleum products and leather exports contracted by 12.1 per cent and 34.7 per cent, respectively, in the month under review, to $1.86 billion and $165 million, over the corresponding period last year.

Commenting on the figures, Khullar said, "The intensity of the decline in exports from a level of 35.5 per cent in April to 11.4 per cent in October is encouraging." In October, positive growth has been registered for the products such as drug and fine chemicals, rice, spices, tobacco and jute.

Spices and tobacco exports in October increased to $113 million and $65 million from $110 million and $63 million, respectively. — PTI 

Mumbai, November 11
An upsurge in Asian stocks helped the markets brush aside concerns of cyclone Phyan hitting Mumbai and stage an impressive rally of over 400 points on all-round hectic institutional buying.Metal and IT stocks were picks of the day. Market leader Reliance Industries gaining for the second day in succession further buoyed the sentiment.

 RIL closed higher by 2.70 per cent. Software exporters Infosys and TCS spurted by 3.24 per cent and 2.61 per cent, respectively, in anticipation of swift recovery in global economy.

Shrugging off the hesitancy at the outset, the Bombay Stock Exchange 30-share Sensex closed the day at nearly three-week high of 16,849.60, netting a rise of 409.04 points or 2.49 per cent over its previous close.

The broader 50-share Nifty of the National Stock Exchange also jumped by 122.25 points or 2.50 per cent to 5,003.95 from its previous close.

However, marketmen said this is no reason for saying cheers. "It is all money game on the streets at present. The market is not moving as per fundamentals. The kind of volatility we are seeing for the past 4-5 days are not desirable for the healthy development of market... At any point, 400-500 points intra-day fluctuation is not good," said Sahara MF chief executive Naresh Garg.

Brokers said the rally is also linked to a sharp fall in dollar value, which fell to a nearly 15-month low, leading to a surge in world stocks during the day. Taking cue from softening of dollar, metal stocks in local bourses surged. The sectoral index posted a gain of 4.27 per cent.

"The uptrend in market is unlikely to continue as the market surged because of a fall in dollar against a basket of currencies", Hitech Securities director Sanjeev Bhambri said.

India's exports, however, fell 11.4 per cent to $12.5 billion in October, negative for 13th straight month, as demand in global markets continue to contract.

Investors, however, ignored exports figures as Asian cues were promising. Hang Seng and Strait Times gaining more than one per cent. European markets, too, were firm in their morning trading. Marketmen said strong industrial output in China revived hopes of global economic recovery. China's industrial output rose 16.1 per cent in October, the sixth one in a row.

Good news in the form of Chinese factory output rising to a 19-month high in October also fuelled Asian stocks, except Shanghai... Besides, European cues were holding up in the day which helped the market to retain the momentum later in the trade," Bonanza Portfolio assistant vice-president Avinash Gupta said.— PTI 

New Delhi, November 11
Beleaguered national carrier Air India suffered a loss of Rs 5,548 crore in 2008-09, and its total revenue declined by around Rs 2,000 crore compared to that in the previous fiscal.

While the losses came down from the Rs 7,200-crore, the airline suffered in 2007-08, to Rs 5,548.26 crore in 2008-09, total revenue fell to Rs 13,479 crore this fiscal from Rs 15,252 crore during the previous fiscal.

The Air India board, which met in Chennai today, approved the annual accounts for fiscal 2008-09, with losses and fall in revenue, resulting out of the global economic meltdown that in turn led to fewer passengers travelling and falling yields.

The passenger load factor declined from 63.8 per cent in 2007-08 to 59.5 per cent in 2008-09 and the number of passengers travelling on Air India flights declined from 13.21 million in 2007-08 to 10.36 million in 2008-09.

The loss comes in the wake of the IATA forecast, predicting that losses in the aviation industry for 2008 would be around $16.8 billion, followed by a loss of $11 billion for 2009, due to weak revenue environment and increase in operating costs, like fuel and other charges.

As per Air India, other significant factors contributing to the loss were substantial increase in fuel costs during 2008-09, when ATF prices touched a record $ 147 per barrel; increase in depreciation costs due to induction of new fleet; increase in interest on aircraft loans and borrowings; and loss on foreign exchange due to a depreciating rupee. 

New Delhi, November 11
The car sales in October has given a clear indication that the Indian economy is finally getting out of the slump of the economic slowdown.

Coupled with the festive season, the car sales last month grew by a staggering 34 per cent from the similar month last year. It is the highest sales figures that the country recorded in two years.

The companies sold 1,32,615 cars in October, compared with 99,052 units sold a year ago, data from the Society of Indian Automobile Manufacturers showed. The rise was the steepest since February 2007, when they had jumped an annual 46.5 per cent.

The overall sales in the passenger segment, including utility and multipurpose vehicles, rose 16.2 per cent. Multipurpose vehicles sales increased 24.06 per cent.

Experts point out that the demand was also stoked by the payout made by the government to its employees as arrears in September, just ahead of Diwali.

In the seven-month period starting April, passenger car sales have grown to 12,57,123 units, a rise of 14.33 per cent over the like period of previous fiscal.

The potential in the Indian market can also be gauged from the comments of Carlos Ghosn, head of the alliance between Japan's Nissan Motors and France's Renault SA at the recently concluded India Economic Summit. He said the Indian passenger car market would triple from the current two million units to six million units in the next 10 years.

Indian carmakers have sold 8,21,954 units so far this year, a 17.5 per cent more than the same period last year.

Sales of trucks and buses in India, a key barometer of industrial activity, rose 52 per cent to 42,562 units in October, the fourth straight rise and the strongest expansion since April 2007.

Ludhiana, November 11
The prices of cotton continue to rule high in the mandis of the Punjab region comprising Punjab, Haryana and Rajasthan. It is selling between Rs 2,900 and Rs 3,000 per quintal in the mandis of Punjab against the minimum support price (MSP) of Rs 2,850 per quintal.

The mandis of the region are now full of cotton arrivals and the traders are the main buyers of the crop. Official agencies like the Cotton Corporation of India (CCI) and Punjab Markfed are not making any purchases due to higher prices.

Enquiries made by The Tribune from the textile mills sources have revealed that mandis of three states are receiving more than 30,000 bales of cotton daily — Punjab mandis - 16,000 to 17,000 bales, Haryana mandis -10,000 bales and Rajasthan 6,000 bales, respectively. Mandis of Punjab namely Mansa, Abohar, Muktsar, Bathinda and Fazilka are receiving 1,000 to 1,500 bales daily.

Punjab mandis have received as many as 4.50 lakh bales while Haryana got 1.20 lakh bales and Rajasthan, Ganganagar circle and lower Rajasthan, 3 lakh bales, respectively, so far.

According to DL Sharma, executive director of the Vardhman Textile Mills, the traders, particularly the textile mills, are the main buyers of cotton this year and official agencies are not making any purchases.

The CCI entered the markets at the initial stages to stabilise the prices. The CCI has purchased about one lakh bales this year. There are international traders who are now making purchases from the mandis.

The CCI had to enter the markets last year in a big way since there was global recession and the mills were reluctant to buy cotton at higher prices. There is no distressed sale of cotton this year and rather the cotton growers are happy with the prices prevailing in the mandis.

Enquiries further show that the area under cultivation of cotton in Punjab saw slight increase and production of cotton was likely to be between 16 lakh and 17 lakh bales this year. There was setback to the production of cotton because of unfavourable weather conditions. The weather was generally hot in the region. 

Chandigarh, November 11
Industry body Assocham has urged Chief Ministers of Punjab, Himachal, Jammu and Kashmir and Rajasthan to charge a uniform VAT of four per cent on processed fruits and vegetables, as recommended by the empowered committee on VAT, rather than charging higher VAT of 12.5 per cent on such products.

In a representation sent to Chief Ministers of these states, Assocham has said the aforesaid states have yet to execute recommendations of the empowered committee on VAT for levying a uniform VAT rate of four per cent on products of processed fruit and vegetables. These states continue to levy additional VAT and cess on such products by restricting the scope of the category description or by shifting the product category itself from four per cent level to 12.5 per cent level. Secretary-general of Assocham, DS Rawat said these additional imports, as described above, have destroyed the spirit of VAT and practically re-introduced the old variable structure of sales tax.

According to the industry chamber, these states have disputed the classification of various value-added fruit and vegetables like potato chips, banana chips et al. The identified states have amended the processed fruit and vegetable entry to restrict the scope only to a few items and there are states that have revised the VAT rate beyond four per cent or even beyond 12.5 per cent by imposing cess or additional VAT.