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Revenues of organised <keyword id="21758362" type="General" weightage="100" keywordseo="gold-jewellery-retailers" source="keywords">gold jewellery retailers</keyword> are expected to surge by 22-25% this fiscal year, driven by the sharp reduction in import duties on <keyword id="18712" type="General" weightage="20" keywordseo="gold" source="Orion">gold</keyword> in the July Budget, according to a <keyword id="20874793" type="General" weightage="20" keywordseo="CRISIL-report" source="keywords">CRISIL report</keyword>. A recent analysis by CRISIL Ratings, which examined 58 gold jewellery retailers representing a third of the <keyword id="21165181" type="General" weightage="20" keywordseo="organised-sector" source="keywords">organised sector</keyword>'s revenues, indicates that the sector will benefit from improved <keyword id="19900859" type="General" weightage="20" keywordseo="working-capital" source="keywords">working capital</keyword> management. Although many retailers plan significant store expansions--estimated at 12-14% of existing stores--lower gold prices will reduce inventory costs, providing working capital relief. The organised jewellery sector, which accounts for just over a third of the overall market, is poised for a stronger financial performance compared to its unorganised counterpart. The steep reduction in <keyword id="20069572" type="General" weightage="20" keywordseo="import-duty" source="keywords">import duty</keyword> has come at a crucial time for the industry, as retailers prepare for the festive and marriage seasons. Following the price decline, volumes are expected to grow by 3-5% this fiscal year, reversing earlier projections of stagnant demand. Gold prices had been steadily rising since February 2024, which had subdued consumer demand and led to revenue growth driven solely by higher realisations rather than increased sales volumes. Himank Sharma, Director at CRISIL Ratings, highlighted the timely impact of the duty cut and said, "The duty cuts to their decadal lows have come at an opportune time for the gold jewellery retailers as they start stocking for the festive and marriage seasons from the latter half of August." He added, "However, the inventory losses on the existing stock due to the price cuts will be partially mitigated by the reduced spends on marketing and discounts, as demand revives. All said <keyword id="19957745" type="General" weightage="20" keywordseo="profitability" source="keywords">profitability</keyword> will see a marginal dip on-year to 7.1-7.2%." Despite the pressure on profitability, retailers' cash flows will improve due to higher revenues, enabling them to pursue expansion plans. Store expansions, expected to increase by 12-14%, will require higher inventory levels. However, the lower input costs resulting from reduced gold prices will balance out the additional working capital requirements. Gaurav Arora, Associate Director at CRISIL Ratings, added, "Gold jewellery retailers will maintain comfortable financial metrics this fiscal, with total outside liabilities to tangible net worth (TOL/TNW) and interest coverage ratios remaining around 1.0 and 9 times, respectively. These will be moderately better than our earlier expectations, keeping credit profiles stable." As the festive season approaches, gold prices remain around 17% higher than last year's average, which is expected to sustain demand and further drive revenues in the second half of the fiscal year. However, potential volatility in gold prices, changes in government regulations, and shifts in consumer sentiment will need to be closely monitored. The combination of reduced prices, increased demand, and improved working capital management is expected to keep the financial outlook for gold jewellery retailers positive, despite the slight dip in profitability. The reduced duty has caused retail gold prices to fall by Rs 4,500-5,000 per 10 grams, leading to increased demand for gold jewellery. The growth projection, 500-600 basis points higher than earlier estimates of 17-19%, is fuelled by higher volumes as more consumers are enticed by the lower prices.

Budget import duty cut will boost gold jewellery retailers' revenues by 22-25% this fiscal, notes CRISIL report

Domestic <keyword id="19910265" type="General" weightage="100" keywordseo="gold-prices" source="keywords">gold prices</keyword> have risen by 10% on a year-to-date basis on the back of the strength in global gold prices, which have surged by 18% year-to-date, driven by robust <keyword id="19894998" type="General" weightage="20" keywordseo="central-bank" source="keywords">central bank</keyword> purchases, heightened geopolitical risks, and growing expectations of a monetary policy pivot from the <keyword id="19901377" type="General" weightage="20" keywordseo="us-federal-reserve" source="keywords">US Federal Reserve</keyword>, according to the <keyword id="20195223" type="General" weightage="20" keywordseo="World-Gold-Council" source="keywords" meta.keywordsubtype="org" meta.entityname="World Gold Council" meta.hostid="153" meta.entityid="World Gold Council">World Gold Council</keyword>. The reduction in <keyword id="20069572" type="General" weightage="20" keywordseo="import-duty" source="keywords">import duty</keyword> has ignited a resurgence in gold demand across <keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword>. Reports from the recently concluded India International Jewellery Show indicate a substantial increase in order bookings from retailers, particularly in preparation for the upcoming festive and wedding season. Manufacturers have noted that in some cases, orders have reached levels not seen in several years, underscoring the strong buying interest among <keyword id="21595593" type="General" weightage="20" keywordseo="jewellery-retailers" source="keywords">jewellery retailers</keyword> and consumers alike. The trend of bar and coin buying has also remained robust, with both consumers and jewellers capitalizing on the more attractive prices to stock up for future manufacturing needs. Historical analysis suggests that Indian consumer demand, encompassing jewellery and bar and coin demand, could see an additional 50 tonnes or more in the second half of 2024. This potential increase is fueled by a combination of an initial boost in consumer appetite due to the more attractive prices and a longer-term alignment of local prices with international rates. In a notable shift, domestic gold prices, which had been trading at a discount to international prices for five consecutive months, have now started trading at a premium following the <keyword id="19908389" type="General" weightage="20" keywordseo="Union-Budget" source="keywords">Union Budget</keyword> announcement. The discount had widened significantly in July, reaching a peak of around $80 per ounce in the third week of the month, driven by subdued demand and an increased supply of gold through various preferential trade agreements and unofficial channels. However, wholesalers who had inventory purchased under the old customs duty regime began selling gold at a premium to the landed cost to mitigate their losses, further supported by increased consumer demand. While the premiums have moderated recently, from $28 per ounce to around USD 5 per ounce, this shift highlights the changing market sentiment and the impact of rising international gold prices and potential inventory valuation adjustments. The changes introduced in the Union Budget, including a reduction in the long-term investment holding period and a lower tax rate, have made gold ETFs a more attractive investment option. Data from the Association of Mutual Funds in India (AMFI) reveals that net inflows into gold ETFs in July amounted to Rs 13.4 billion (approximately USD 160 million), marking the highest monthly inflows since February 2020 and an 84% increase compared to June 2024. Despite these inflows, the total assets under management (AUM) for Indian gold ETFs grew marginally by 0.3% from the previous month, reaching Rs 345 billion ($4.1 billion). This modest increase can be attributed to the 8 % fall in domestic gold prices following the import duty reduction. Year-to-date, net inflows into Indian gold ETFs have totalled Rs 45 billion ($543 million), with total AUMs rising by 48 % from a year ago. The <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="153" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword> (RBI) has continued its gold purchasing trend, although at a slower pace following a significant increase in June, when purchases reached 9.3 tonnes--the highest monthly total in nearly two years. Year-to-date, the RBI's gold acquisitions have totaled 44.3 tonnes, surpassing the total purchases of the past two years combined. The RBI's gold reserves have now reached a record 849 tonnes, representing 8.8% of total foreign reserves, compared to 7.5 % a year ago. In July, gold imports remained steady at $3.1 billion, maintaining the stable trend observed over the previous three months. Between April and July, imports averaged $3.2 billion, with volumes ranging between 43 and 47 tonnes during this period. The gold import bill for July 2024 was 11 % lower than the previous year, with an estimated 26% decrease in volume terms, around 47 tonnes. Despite a surge in international gold prices, domestic gold prices in India have experienced a notable decline, primarily due to the 9 % reduction in import duty announced in the Union Budget 2024-25. This policy change has led to a 6% decrease in the landed cost of gold, marking a shift in the domestic gold market dynamics.

Domestic gold prices surge 10% amid global price rally, central bank buying: World Gold Council

The <keyword id="26362" type="General" weightage="20" keywordseo="government" source="Orion">government</keyword> has reduced the <keyword id="6357502" type="General" weightage="20" keywordseo="import-duty" source="Orion">import duty</keyword> on refined soybean and sunflower oils to 12.5 per cent from 17.5 per cent with effect from Thursday to boost the domestic availability and check prices, a finance ministry notification said. Usually, India imports 'crude' soybean and sunflower oils and not their 'refined' form. Yet, the government has reduced the duty on refined soybean and sunflower oils. With this reduction, the effective duty on refined edible oils stands at 13.7 per cent, including cess on social welfare. The effective duty on all major crude edible oils is 5.5 per cent. Commenting on this, Solvent Extractors' Association of India (SEA) Executive Director B V Mehta said the move may have some temporary impact on market sentiments but unlikely to attract imports. "Basically, government wants to keep the prices of edible oils under check. Even with less duty difference between crude and refined soya and <keyword id="58302" type="General" weightage="20" keywordseo="sunflower-oil" source="Orion">sunflower oil</keyword>s, chances of shipment of refined soya and sunflower <keyword id="6359072" type="General" weightage="20" keywordseo="oil" source="Orion">oil</keyword> may not be commercially viable but have some temporary sentiment impact on market," Mehta said in a statement. Currently, there are no import of refined soybean and sunflower oils. According to SEA, the delayed onset of monsoon in Kerala by a week led to delay in sowing. "The Met Department has forecast near normal monsoon, however El Nino is not ruled out completely and may spoil the chances of normal monsoon, which may impact kharif crop and domestic availability of vegetable oils in next oil year 2023-24," Mehta added. India relies on imports to fulfill its demand-supply gap in edible oils. It meets nearly 60 per cent of edible oil demand through imports. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/entertainment/news/sonam-kapoor-plans-to-return-to-bollywood-with-2-yrf-films/articleshow/101014785.cms">Sonam Kapoor plans to return to Bollywood with 2 YRF films</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/automotive-digital-marketplace-truecar-lays-off-24-of-workforce/articleshow/101013596.cms">Automotive digital marketplace TrueCar lays off 24% of workforce</a>

Govt cuts import duty on refined soybean & sunflower oils to 12.5%

<ul><li>Platinum and <keyword id="6363355" type="General" weightage="20" keywordseo="PALLADIUM" source="Orion">palladium</keyword> for use in manufacture of precious metal chemicals, compounds. </li><li>As per reports some bullion importers are importing refined gold disguised as <keyword id="15093121" type="General" weightage="20" keywordseo="PLATINUM-ALLOY" source="Orion">platinum alloy</keyword>.</li><li>Gold attracts 15 % import duty, as opposed to platinum alloy that invites a duty of 10.75 %. </li></ul> Import duty on platinum has been increased to a total of 15.4 % with effect from Monday through a notification by the Finance Ministry. Platinum and palladium for use in manufacture of precious metal chemicals, compounds (noble metal compounds and solutions) and catalytic converters will continue at basic customs duty of 7.5 % subject to IGCR. <keyword id="922074" type="General" weightage="20" keywordseo="RHODIUM" source="Orion">Rhodium</keyword> will also continue with BCD of 2.5 %. It is being presumed that the increase in duty on platinum is to plug a loophole which is helping bullion importers to make record profits. As per reports some bullion importers are importing refined gold disguised as platinum alloy. Gold attracts 15 % import duty, as opposed to platinum alloy that invites a duty of 10.75 % which observers say is a case of misdeclaration and duty violation. There were reports that the customs had cleared consignments since the loophole in the notification have not clearly defined alloys of precious metals. The consignments of platinum alloy contained 96 % gold and some importers are importing refined gold under the guise of platinum alloy and making bullion bars. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/entertainment/news/this-pioneering-regional-ott-has-turned-profitable-in-5-years-heres-how/articleshow/94629578.cms">This pioneering regional OTT has turned profitable in 5 years – here’s how</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/next-repo-rate-hike-expected-to-be-35-basis-points-to-6-25-kotak-report/articleshow/94633139.cms">Next repo rate hike expected to be 35 basis points to 6.25%: Kotak report</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/neobanking-platform-vance-raises-5-8-million-in-seed-round-led-by-hummingbird-ventures/articleshow/94623266.cms">Neobanking platform Vance raises $5.8 million in seed round led by Hummingbird Ventures</a>

Centre hikes import duty on platinum to 15.4%

Tesla CEO <keyword id="6355315" type="UNKNOWN" weightage="20" keywordseo="elon-musk">Elon Musk</keyword> said that his <keyword id="381751" type="ORGANIZATION" weightage="20" keywordseo="Electric-vehicle">electric vehicle</keyword> (EV) company wants to launch cars in India, but the country's <keyword id="564430" type="PERSON" weightage="20" keywordseo="import-duties">import duties</keyword> on EVs are "highest in the world by far". Replying to an Indian YouTuber on <keyword id="6354616" type="UNKNOWN" weightage="20" keywordseo="Twitter">Twitter</keyword>, who asked him to launch <keyword id="4241163" type="PERSON" weightage="20" keywordseo="Tesla-cars">Tesla cars</keyword> ASAP in India, <keyword id="364027" type="PERSON" weightage="20" keywordseo="Musk">Musk</keyword> blamed high import rates in the country. "We want to do so, but import duties are the highest in the world by far of any large country!" he wrote. "Moreover, clean energy vehicles are treated the same as diesel or petrol, which does not seem entirely consistent with the climate goals of India," he added. Last year, a report said that India has taken a slew of measures to promote the use of electric cars in the country. The government slashed Goods and Services Tax (GST) on electric vehicles to five per cent from earlier 12 per cent but to protect domestic automakers, it levies 125 per cent duty on imported vehicles. "I'm told import duties are extremely high (up to 100 per cent), even for electric cars. This would make our cars unaffordable," Musk earlier said while responding to a tweet from an Indian follower. Close on the heels of the <keyword id="6360189" type="ORGANIZATION" weightage="20" keywordseo="union-budget">Union Budget</keyword> providing tax relief for buying electric vehicles, the GST Council in its meeting last year in July cut the tax on electric vehicles (EV) from 12 per cent to 5 per cent, effective August 1, 2019. The twin rate cuts are set to further boost the EV sector. The Budget, last year, had proposed an Income Tax deduction of Rs 1.5 lakh on the interest paid on the loans taken to purchase electric vehicles. SEE ALSO- <a href="https://www.businessinsider.in/business/news/reliance-retail-the-cash-cow-for-mukesh-ambanis-ril-may-be-hit-by-the-second-wave-of-the-pandemic/articleshow/84644924.cms">Reliance Retail, the cash cow for Mukesh Ambani’s RIL, may be hit by the second wave of the pandemic</a> <a href="https://www.businessinsider.in/tech/news/zomato-paytm-sony-liv-disneyhotstar-down-as-massive-internet-outage-sweeps-across-many-countries/articleshow/84653441.cms">Zomato, Paytm, Sony LIV, Disney+Hotstar back up after glitch takes down internet</a>

Elon Musk wants to bring Tesla to India but high import duties are a challenge

The Indian Cellular and Electronics Association (<keyword id="6816005" type="UNKNOWN" weightage="20" keywordseo="icea">ICEA</keyword>) has sought extension of the <keyword id="984226" type="PERSON" weightage="20" keywordseo="zero-import-duty">zero import duty</keyword> on open cell television panels beyond September 2019. In a letter to Revenue Secretary <keyword id="9938032" type="UNKNOWN" weightage="20" keywordseo="ajay-bushan-pandey">Ajay Bushan Pandey</keyword>, the ICEA said that the reduction of custom duty on open cell from 5 per cent to zero per cent till September 2020 has given a huge fillip to domestic manufacturing of <keyword id="428513" type="PERSON" weightage="20" keywordseo="LED-televisions">LED televisions</keyword> and led to reduction in imports from ASEAN countries. It has sought an extension on the zero duty on open cell imports for three years. Citing the Ministry of Electronics and IT's recent proposal to to impose duty of 5 per cent on open cell panels and bring pure cell to zero per cent in a bid to encourage the process of polariser film and COF bonding for open cell, the industry body said that it is concerned about its implementation as the anomaly in differentiation of open cell with bonding and open cell without bonding -- pure cell -- still remains a challenge. The industry body, representing LG, <keyword id="874458" type="COMPANY" weightage="20" keywordseo="Xiaomi">Xiaomi</keyword> and Micromax among others, warned of the growth of the grey market if the proposal is put into effect. "If the duty on open cell is not extended beyond September 2020, it will again lead to high imports of LED TVs under FTA, a huge blow to the Make in India programme of the Government of India. It will have an adverse impact on the Indian domestic manufacturers and the EMS companies," the letter by ICEA Chairman Pankaj Mohindroo said. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/its-not-just-india-chinese-intelligence-has-its-eye-on-more-than-2-4-million-individuals-across-the-us-japan-canada-australia-and-the-uk/articleshow/78101034.cms">It's not just India — Chinese intelligence has its eye on more than 2.4 million individuals across the US, Japan, Canada, Australia, and the UK</a> <a href="https://www.businessinsider.in/defense/news/india-china-border-tension-will-be-in-focus-as-the-parliaments-monsoon-session-begins-today/articleshow/78098575.cms">India-China border tension will be in focus as the Parliament's Monsoon session begins today</a> <a href="https://www.businessinsider.in/finance/banks/news/all-eyes-on-parliaments-monsoon-session-the-banking-regulation-amendment-bill-2020-may-not-be-on-the-docket-for-long/articleshow/78101791.cms">All eyes on Parliament's Monsoon session — the Banking Regulation (Amendment) Bill 2020 may not be on the docket for long</a> <a href="https://www.businessinsider.in/stock-market/news/hcl-tech-share-price-jumps-after-mid-quarter-guidance-pulling-tcs-infosys-wipro-and-tech-mahindra-in-the-green-along-with-it/articleshow/78103743.cms">HCL Tech's mid-quarter guidance optimism sparks rally in TCS, Infosys, Wipro, and Tech Mahindra too</a>

Xiaomi, LG and Micromax-backed lobby seeks extension of zero import duty on open cell TV panels

Mumbai, Jan 13 () The gem and jewellery industry has sought reduction in customs duty on gold to four per cent, withdrawal of tax collected at source (TCS), cut in <keyword id="6357502" type="UNKNOWN" weightage="20" keywordseo="Import-Duty">import duty</keyword> on polished precious and semi-precious gemstones, in the upcoming Union <keyword id="6358021" type="COMPANY" weightage="20" keywordseo="budget">Budget</keyword> 2021-22. All India Gem and Jewellery Domestic Council (GJC) Chairman Ashish Pethe told , "We urge the government to reduce the customs duty to 4 per cent from the current 12.5 per cent. If the tax rate is not kept at this level, it will encourage smuggling and encourage people to do unorganised business." He further urged the government to keep goods falling under HSN-71 (Harmonised System Nomenclature) out of the purview of TCS provisions as the amount of funds blocked in TCS is 6.67 times more than the ability to pay income tax, resulting in blockage of funds. Pethe also said the facility of equated-montly instalment (EMI) should be extended to the gems and jewellery industry and to increase the cash purchase limit to Rs 1 lakh from the current Rs 10,000. Gems and Jewellery Export Promotion Council (<keyword id="110243" type="PERSON" weightage="20" keywordseo="GJEPC">GJEPC</keyword>) Chairman Colin Shah urged the government to reduce import duty on cut and polished precious and semi-precious gemstones to 2.5 per cent, from the current 7.5 per cent. In its Budget recommendations, GJEPC has also proposed a hike in import duty on synthetic cut and polished stones to 25 per cent from 5 per cent. Shah said GJEPC has also proposed amendment in taxation provisions to allow sale of rough diamonds in special notified zone in Mumbai. Malabar Group Chairman MP Ahammed has urged the government that tax rate, including import duty on gold and GST, should be reduced to 7 per cent. Ahammed has also said the government should create an enabling environment for the jewellery retail trade to introduce MRP pricing in jewellery without any pricing break-up in terms of GST or other taxes. Currently, gold attracts 12.5 per cent import duty and 3 per cent GST and total duty and GST implication works out at 15.5 per cent. "Such high taxes have led to large-scale smuggling and tax evasion. Therefore, reducing import duty-GST implication to 7 per cent is an effective measure to prevent those industry malpractices," he added. Although the tax and duty implication is 15.5 per cent on gold, the actual implication comes to around 20 per cent after adding the mining royalties. The gold and diamond trade together accounts for 7.5 per cent of the country's GDP and 14 per cent of the country's total exports. About 60 lakh people are employed in this sector. Therefore, Ahammed noted that the government should take steps to facilitate comprehensive development of the grade trade sector so that it can continue to play a pivotal role in the growth of the economy. PNG Jewellers Chairman and Managing Director Saurabh Gadgil opined that 2020-21 has had a negative impact on the industry over all. "While jewellers are on track to recover from the impact of the pandemic and a muted wedding season, we are hopeful that the Budget 2021-22 will look at the jewellery industry favourably and roll out many SOPs and important policy changes that can help revive the industry in the next one year," he said. It is critical that the government also look at policies that encourage banks to kick-start lending once again to the jewellery sector, which will help businesses across the board to maintain liquidity and ensure survival and success, he pointed out. From the consumer perspective, he said gold should be deemed as an asset class like the mutual funds, allowing an increase in consumer investment confidence as well as the availability of facilities like EMI schemes to invest in gold products. "Setting up of a spot exchange, announced in the 2018 Budget on an immediate basis, will ensure consistency in pricing of gold across the country. This will boost consumer confidence and help people sell their gold at daily transparent prices," he added. SM HRS

Budget 2021: Gems and jewellery industry seeks reduction of import duty to 4%

Entire list of imported products that will be more expensive after budget 2020

New Delhi, Feb 1 () Finance Minister Nirmala Sitharaman on Saturday proposed to cut the import duty on newsprint to five per cent.
The government in the last budget had imposed 10 per cent basic custom duty on newsprint and lightweight coated paper.
"However, since then I have received several references that this levy has put additional burden on print media at a time when it is going through a difficult phase. I, therefore, propose to reduce basic customs duty on imports of newsprint and light-weight coated paper from 10 per cent to 5 per cent," she said while presenting the Union Budget for 2020-21.
The Indian Newspaper Society has earlier urged the government to save the newspaper industry by scrapping the 10 per cent duty imposed on newsprint and uncoated paper used for printing newspapers, and light weight coated papers for magazines.
The total consumption of standard newsprint in India is 2.5 million tonnes and the indigenous mills have a capacity of 1 million tonnes only, the INS had said. RR
BAL

Govt proposes to cut import duty on newsprint to 5 pc

New Delhi, Jan 13 () The commerce ministry has sought reduction in the import duty on gold in the forthcoming budget with a view to pushing exports and manufacturing of the gems and jewellery sector, a source said.
 In its budget proposals, the ministry has suggested its finance counterpart to consider a significant reduction in the import duty on the yellow metal, they said.
 In the last Budget, the government has increased the import duty on the yellow metal to 12.5 per cent.
 The gems and jewellery export industry has sought reduction in the import duty to 4 per cent in the budget, which is scheduled to presented on February 1.
 Gold imports in December declined sharply to 39 tonnes, from 152 tonnes in November.
 India's gold imports, which have a bearing on the current account deficit (CAD), fell about 7 per cent to USD 20.57 billion during April-November period of the ongoing financial year, according to the commerce ministry data.
 Imports of the yellow metal stood at USD 22.16 billion in the same period of 2018-19.
 The decline in gold imports has helped in narrowing the country's trade deficit to USD 106.84 billion during the eight-month period under review as against USD 133.74 billion in the year-ago months.
 Gold import had been recording a negative growth since July this year. However, it grew about 5 per cent to USD 1.84 billion in October and 6.6 per cent to USD 2.94 billion in November.
 India is the largest importer of gold, which mainly caters to the demand of the jewellery industry.
 In volume terms, the country imports 800-900 tonne of gold annually.
 To mitigate the negative impact of gold imports on trade deficit and CAD, the government increased the import duty on the metal to 12.5 per cent from 10 per cent in this year's budget.
 Industry experts claim that businesses in the sector are shifting their manufacturing bases to neighbouring countries due to this high duty.
 Gems and jewellery exports declined about 1.5 per cent to USD 20.5 billion in April-November this fiscal.
 The country's gold imports dipped about 3 per cent in value terms to USD 32.8 billion in 2018-19.
 The CAD narrowed to 0.9 per cent of GDP or USD 6.3 billion in July-September, 2019-20 from 2.9 per cent or USD 19 billion in same period last year, according to the RBI data. RR RR MR
MR

Commerce Ministry proposes cut in gold import duty in Budget

New Delhi, Nov 22 () Commerce and Industry Minister Piyush Goyal on Friday said he will work with gems and jewellery industry on their demand to cut import duty on gold and bring back businesses, which have shifted from the country.
He also asked the industry to follow legal practices such as doing digital transactions to enhance the integrity of the sector.
"I think it is important that we have a dialogue and I am also working to support the industry request on the duty structure of gold, other precious stones and diamonds, so that we can bring back a lot more business which is possibly gone out of the country and bring that back to India," he said here.
The minister said that he has requested officers to take the issues strongly with other ministries to see "how we can work together to put an end to smuggling and ensures that business comes back to India".
The industry is demanding cut in gold import duty to 4 per cent from the current 12.5 per cent. The industry has claimed that due to hike in the import duty several businesses have shifted out of India.
He, however, added that to "enable me to do that and help me succeed, I need high level of commitment from you about the integrity quotient of the industry".
Goyal said that 100 per cent honesty is important to convince other ministries to agree on the demands of the industry.
"Do not indulge in any illicit transactions. Complain to authorities who are doing wrong. If you will be honest, we are willing to ensure proper finance is available...If all of you come together and give that confidence that we will not engage in any wrong practices, government will be able to support you with lower taxes, lower import duties and lower GST," he added.
He added that few bad and unfortunate examples in the industry has impacted the industry as this sector works on "trust".
Few people who willfully defaulted loans have brought bad name to the industry and there is a need for all the industry to ponder on this, he added. RR BAL

Will work with gems, jewellery industry on import duty demand: Goyal

New Delhi, Dec 27 () Edible oil industry body SEA on Friday urged the government to not reduce the import duty on crude palm oil (CPO) to 30 per cent from the existing 40 per cent as it will affect domestic oilseed growers.
 The industry body also urged the government to not reduce the duty differential between CPO and refined palmolien to 7.5 per cent from existing 10 per cent in line with the ASEAN agreement, which is likely to kick in from January 1, 2020.
 In a statement, the Solvent Extractors Association of India (SEA) said there are reports that the Vanaspati Industry Association has demanded a reduction in CPO import duties to 30 per cent.
 "If this demand is accepted by the government it would seriously hurt the oilseed farmers without being beneficial to the industry," it said.
 The National Mission of Edible Oil, which is targeting about 50 million tonne oilseed production in the country in next three to five years, would also be jeopardised, it added.
 "We suggest the duty differential between CPO and refined palmolien be raised to 15 per cent or minimum 10 per cent as at present without in any way reducing duties," the SEA said.
 Currently, oilseeds are selling above Minimum Support Price (MSP) which augurs well for the future of oilseed production as the right price signals are going to farmers, it added.
 SEA further said, "Over the years, India has seriously compromised its edible oil security which has resulted in dependence on imports growing to almost 70 per cent."
 The main reason for stagnant oilseed production has been lack of interest among oilseed farmers due to poor returns.
 Palm oil shipments comprise 63 per cent of the country's total vegetable oil imports. India imported 94.09 lakh tonnes of palm oil in the 2018-19 marketing year (October-November). LUX RVK

SEA urges govt to not cut import duty on crude palm oil

New Delhi, Dec 1 () Indian alcohol manufacturers have approached NITI Aayog, seeking exemption of import duty on extra neutral alcohol (ENA), which is the primary raw material for making alcoholic beverages.
 The alcohol manufacturers have pleaded that there is a massive shortage in domestic supplies of ENA following diversion of ethyl alcohol for bio-fuel blending by oil marketing companies (OMCs) in the country.
 "Short availability of ENA (high-purity ethyl alcohol) has placed domestic alcoholic beverage industry in a precarious situation. Price of ENA, which was around Rs 45 per bulk litre until recently, is now breaching Rs 60 mark. Even at this price, the supply is uncertain and under stress," Confederation of Indian Alcoholic Beverage Companies (CIABC) Director General Vinod Giri said in a letter to NITI Aayog CEO Amitabh Kant.
 The CIABC, in its letter, said recent floods in Maharashtra and Karnataka have adversely impacted sugarcane crop in the region which shall worsen the supply of ENA even further and therefore, it is of the view that the Commerce Ministry may be advised to allow imports of ENA exempt from import duty until domestic supply improves. 
 High import duty is a big hinderance for import of ENA from international market. 
 The price of ENA in international market is around Rs 50 per litre. At current duty (150 per cent), imported ENA will cost Rs 125 per litre which is unsustainable. But with no or marginal duty, price can be at Rs 50 to 55 per litre. Availability of ENA at such prices will make it sustainable for the industry, the CIABC said.
 Reduced availability of the primary raw material endangers the survival of the industry and all those who depend on it for livelihood, it added.
 Alcohol industry contributes almost Rs 2 lakh crore by way of various taxes, sustains livelihood of nearly 40 lakh farmers, and employs nearly 20 lakh people directly and indirectly. 
 Tax revenues from alcoholic beverages consist of 20 to 40 per cent of most states' tax receipts. This way, the alcohol industry is one of the largest contributors to the Indian economy, it added.
 Terming the availability of ENA as a multi-ministry issue as it is also being used for bio-fuel, Giri said the Centre is pushing hard for blending ethanol in auto fuels to reduce import dependence in petroleum, but shortage of ENA and its growing costs will make the move economically unsustainable for OMCs and fail to achieve blending target from current level of 7.2 per cent to 20 per cent.
 "We have already said this to Petroleum Ministry in our letter written a couple of months ago," he added.
 According to CIABC estimates, annual ethyl alcohol production in the country is 420 crore litres. Of this, contracts concluded by OMCs for supply towards blending with auto fuel in the year 2018-19 were at 269 crore litres at current level of 7 per cent ethanol addition (blending with petrol). That leaves a balance of 151 crore litres for all other uses, whereas the demand is 260 crore litres.
 While alcoholic beverages industry needs 190 crore litres ethyl alcohol, chemical industry requires another 70 crore litres. There is a shortfall of 109 crore litres, which would only grow with higher levels of blending with fuel targeted by OMCs.
 Higher ENA cost will make blending a cost ineffective option for OMCs. It costs OMCs between Rs 35-40 for a litre of fuel, averaged for diesel and petrol if they source crude from international market at prevailing prices of around USD 58 a barrel and process it.
 It will severely impact their bottom lines if they are made to buy ethanol at a cost of Rs 50 plus per litre and blend it in a ratio of up to 20 per cent. Thus, a commercially sustainable policy is needed, the body pleaded.
 Demanding restriction in ethanol blending in auto fuels to realistic levels based on availability of alcohol, Giri said the government should immediately limit sourcing of ethanol for blending in fuel to molasses-based distilleries, cellulosic material-based distilleries and sugar factories.
 He further suggested that the government should also exclude grain-based alcohol from ethanol blending to make it exclusively available to potable alcohol industry,
 "We have urged the government to explore new innovative alternatives for making bio-fuel. Paddy stubbles which are being burnt causing air pollution in and around Delhi, for example, can be converted into ENA. Other sources like corn etc can also be looked into to generate ENA," he added. KKS RVK

Alcohol manufacturers plead NITI Aayog for import duty exemption on ENA

Mumbai, Feb 13 () The gems and jewellery industry on Thursday urged the government to reduce the import duty on precious metals, cut and polished diamonds and gemstones and amend taxation laws to give domestic traders a level playing field in the global market. "We have been pursuing with the government constantly with few concerns which require immediate attention, like reduction in import duty on precious metals -- gold, silver, platinum to 4 per cent from 12.5 per cent. Reduce import duty on cut and polished diamonds and gemstones from 7.5 per cent to 2.5 per cent," Gem and Jewellery Export Promotion Council (GJEPC) Chairman Pramod Kumar Agrawal said. Speaking at the 13th edition of the India International Jewellery Show (IIJS), he said the industry has also been urging the government for amendment in taxation laws enabling sale of rough diamonds in Special Notified Zone (SNZ), Mumbai. "This is very important to give a level playing field to our traders in the global market," he added. The four-day IIJS, which commenced from Thursday, is hosting more than 700 exhibitors and is expected to attract over 18,000 visitors from India and 55 countries. Agrawal also announced that GJEPC is coming up with a new show in Jaipur in Rajasthan -- India Gem and Jewellery Show -- to be held from April 1-3, especially for international buyers. SM ABMABM

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