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Tuesday, January 1, 2008

[vinnomot] Centad Yearbook on South Asia and Trade + Basmati Rice & Trade

                      HAPPY NEW YEAR - 2008

 
NEWS Bulletin from Indian Society For Sustainable Agriculture And Rural Development
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1. Make trade policy in South Asia more participatory, says Centad
2. MFN status to India not important: Pakistan - 'Both the govts should accept the reality situation of the market and make suitable changes in their trade laws'
3. BASMATI RICE TRADE - Lt Overeas arm buys Kusha to raise market share in US
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Make trade policy in South Asia more participatory, says Centad
 
 
ASHOK B SHARMA
Posted online: Tuesday , January 01, 2008 at 0026 hrs IST
 
New Delhi, Dec 31 The trade policy-making process in South Asia is characterized by its episodic, informal and ad hoc nature and is yet to set in place a formal institutionalized process which is broad-based, participatory and consultative, according to the South Asian Yearbook 2007-08 to be released shortly by the Delhi-based Centre for Trade and Development (Centad)
 
It said that the participation in the process by environmentalists, labour unions and civil society was limited in nature. The India case study, however, showed that the country's involvement at the multilateral level, witnessed intense consultations with domestic stakeholders, including the state governments.
 
The yearbook's observation about transparency in the consultation process has come in for severe criticisms by interested groups, which have pointed out that the government had not taken the Parliament into confidence before or after signing bilateral and multilateral agreements, including the decision to join WTO.
 
"The countries in the region are marked by a lack of technical, human and financial capacity and in-house expertise on trade policy making, both within the government and outside," the Centad yearbook said. The yearbook, edited by experts like BS Chimni, BL Das, Mustafizur Rahman and Saman Kelegama, noted a major risk in sustaining high growth rates in the region. As the oil prices are likely to stay high for an extended period, South Asia can greatly benefit from coherent energy policies, it said.
 
It praised India 's "remarkable success in IT market" and suggested other South Asian countries to follow suit. South Asia also needs to focus on development of physical infrastructure. According to the yearbook, India was the first country in the region to legislate an anti-dumping law in 1982. South Asia recorded higher success rate in anti-dumping investigations than the global average.
 
On agriculture, the yearbook noted the limited ability of small farmers to compete. The South Asian nations generally took defensive postures on sanitary and phytosanitory (SPS) issues, they should take a proactive approach to SPS.
 
It called for a balanced labour law to protect the interests of the producers and suggested the need for South Asian nations to work in tandem to combat the deficiency of physicians.
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MFN status to India not important: Pakistan
 
'Both the govts should accept the reality situation of the market and make suitable changes in their trade laws'
 
 
ASHOK B SHARMA
Posted online: Wednesday, December 26, 2007 at 2333 hrs IST
 
New Delhi, Dec 26 Pakistan is of the view that giving most favoured nation (MFN) status to India is not that important as making laws in both the countries, recognising the market reality.
 
Speaking to FE, Pakistan's permanent representative to the WTO, Muhammad Saeed said, "There is lot of illegal cross-border trade taking place between the two countries. Both the governments should accept the reality situation of the market and accordingly make suitable changes in their trade laws."
 
Saeed admitted that India has unilaterally accorded MFN status to Pakistan. He said that Pakistan according MFN status to India in return is not that important in making suitable changes in trade laws. Saeed was recently in India to participate in a South Asian trade conference hosted by the Centre for Trade and Development (Centad).
 
He expressed the hope that the South Asia Free Trade Agreement (Safta) would ultimately boost intra-regional trade, which was now below 5%.
He said that Pakistan's exports to Saarc countries increased from 2.7% in 2003 to 4.5% in 2006. About 45% of the exports was of textiles. In the same period Pakistan's imports from Saarc countries increased from 2.4% in 2003 to 4.1% in 2006. In the same period Pakistan's global exports grew from $12 billion to $17 billion.
 
Saeed, however, said that exports of goods and services as percentage of GDP in 1990-2005 for all South Asian countries, excepting Pakistan increased. For Pakistan it was a marginal decline, he said.
 
On the issue of exporting wheat to India, Saeed said, "Our wheat output in the current season was 15% more than the consumption demand. We exported wheat, including 500,000 tonne to India at about $200 a tonne. Recently, our domestic prices have shot up due to hoarding of stock and market manipulation and we are importing wheat at $460 a tonne."
 
The former commerce secretary of Bangladesh, Suhel A Choudhury that an FTA with India was mooted in March 2003 in Delhi and subsequently it was discussed in the Dakha meeting in October 2003, but unfortunately no progress has been made in this direction.
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Lt Overeas arm buys Kusha to raise market share in US
 
 
ASHOK B SHARMA
Posted online: Tuesday , December 25, 2007 at 0054 hrs IST
 
New Delhi , Dec 24 LT Overseas North America, the wholly owned subsidiary of LT Overseas Ltd. the makers of Daawat, has acquired the US-based Kusha Inc which imports premium quality basmati rice from India Kusha Inc has a revenue of approx $ 40 million.
 
At present LT Overseas Ltd. has a market share of just 7% in the US market but with this major acquirement, the marketplace for LT Overseas Limited (LTOL) will be increased to almost 51% in the US market which will further increase EPS of the company to the major extent moving on to a bigger platform to showcase the company's various brands.
 
The US is one of the key focused Markets of LTOL, with a high potential for growth in the rice industry. This is the largest overseas acquisition of its major worth in terms of market value in the rice industry. This strategic acquisition is a significant achievement in a market that is fast growing with high entry barriers in rice industry and will not only focus the growth in North America's market but rather will reflect in the industry as a whole.
 
Commenting on the strategic investment Mr. Ashwani Arora joint Managing Director LT Overseas Limited, said, "Rice has matured into the main course with the popularity of international dishes. This acquisition is the first major step of the inorganic growth strategy of the Company and a milestone towards building up a global agro product company & a strong market for the basmati rice" across the globe.
 
Abhinav Arora, Director of LTONA, said the completion of this acquisition will allow us to expand our distribution channels and diversify our operations leading to rice manufacturing. Our Company will continue to target and acquire other food industry corporations to remain competitive and bring more product experience compared to other Companies in the industry & to make the name Daawat a known one in the food industry".
 
Sam Nayyeri, Kusha Inc who will be continuing his association with Khusha, said, "With this acquisition, Kusha Inc. has a more diverse platform for its brands to be known in the market and to be available for its ultimate consumers".
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