The chairman of the Powerloom Development and Export Promotion Council (Pdexcil), MS Mathivanan, today said issuance of circulars by more than one department on export policy and guidelines was creating confusion and difficulties to the exporters. He said that it was unfortunate that the Department of Revenue (DoR) had reportedly advised the customs by a circular to ignore the circular issued by the Directorate of Foreign Trade (DGFT), regarding admissibility of credit under the DEPB Scheme in respect of made-ups, made out of yarn dyed fabrics. Mathivanan said the DGFT had clearly stated that the fabrics, which at yarn or fabric stage had undergone the process of printing, dyeing and the made-ups manufactured out of such fabrics, were admissible for DEPB credit, he said.

Plastic makers may raise prices

Domestic plastic manufacturers said on Tuesday that they would be forced to increase the prices of finished products in view of the steep increase in prices effected by domestic manufacturers of feedstock. "Domestic producers of raw materials have increased their prices thrice between August and September which translates to an increase of about Rs 23 per kg on an average and this has affected our processing units with 80 per cent of them working to only 40 per cent of their capacity," Arvind Mehta, president of the All India Plastics Manufacturers Association (Aipma). This situation has resulted in the manufacturing units shelling out 40 per cent more for the same quantity of raw materials purchased, he said. They demanded stability in prices of feedstock produced by domestic manufacturers as also a sharp reduction in import duty on raw materials to ensure their survival and be competitive. The customs duty on raw materials should be reduced from the prevailing 35 per cent to 20 per cent and also in view ofthe prevailing international scenario, the anti-dumping duty of Rs 6,000 on polystyrene be withdrawn, Mehta said.

Sugar production rises

Sugar production during August this year increased to about 0.95 lakh tonne as against 0.66 lakh tonne during the same month last year. Indian Sugar Mills Association (Isma) and National Federation of Cooperative Sugar Factories (nfcsf), in a joint communique, said with this, the total output during the season now stood at 154.25 lakh tonne as against 127.68 lakh tonne during the corresponding period last season. The sugar despatches from factories during the month stood at 12.39 lakh tonne, including 0.81 lakh tonne of imported sugar, for internal consumption against 12.51 lakh tonne, including 0.70 lakh tonne of imported sugar during the same month last season. There was no export in this season, while in the last season, 0.11 lakh tonne was exported during the same month.

Castor oil prices decline

A steep fall in the prices of castoroil and castorseeds, featured trading on a mixed oilseeds market in Mumbai on Tuesday. In the non-edible section, castor oil commercial nosedived by Rs 24 to end at Rs 405 from the previous close of Rs 429 due to good arrival amidst poor industrial demand. Castorseed Madras fell steeply to Rs 1,875 from Rs 1,995, due to poor export demands. Linseed oil, however, managed to hold steady at Rs 355 on scattered support. On the other hand, in the edible section, groundnut oil and imported palm oil rose further by Rs 5 each to end at Rs 410 and Rs 222 due to good local buying in the face of poor supply. In palm oil, higher overseas advices also aided the sharp rise in prices, traders said. In the futures market, castorseed December contract resumed sharply weak at Rs 1,942 and on heavy stockists offering in wake of poor export demand, declined further steeply to end at Rs 1,911, registering a fall of Rs 56.

Saudi demand on oil investment

Saudi Arabia will stick to its demand that Japan invest substantially in the kingdom when fresh negotiations on renewing a lucrative oil concession open this week, an industry source said. ``If they meet our requests for investment, then they can renew the concession,'' he added. Japan's Arabian Oil Co Ltd (AOC) has been locked in tough negotiations with Saudi Arabia on renewing the crucial Neutral Zone concession the kingdom shares with Kuwait.