Sensitive Items Import Jumps 14% to 40.5k cr.

NEW DELHI: India’s import of sensitive products increased 14% to Rs 40,499 crore in the April-October 2010 period with sharp increases in food grains, dairy products, automobiles , edible oil, rubber and alcoholic beverages. Rise in import of crude edible oil increased total edible oil imports to Rs15,882 crore that was 12% higher than imports in the same period last year.

Dairy product imports trebled to Rs536 crore in the seven months period, while rubber imports increased 93.1% to Rs 977.24 crore. Automobile imports more than doubled to . 1,249 crore compared to Rs583 crore in the same period of the previous year. The country also imported more of alcoholic beverages which was 55% higher at Rs102 crore. Imports of cotton and silk, tea and coffee imports dipped by 26.7 per cent and 19.5 per cent during the period to Rs945.44 crore and Rs149.19 crore, respectively. The sensitive items are a list of more than 300 products crucial for the economy monitored by the commerce department on a regular basis.

Import of sensitive items amounted to 4.6% of the country's total imports during the period . Imports of sensitive items from Indonesia, China , Malaysia and the United States have gone up while those from Myanmar , Canada, Brazil and Japan have gone down.
Exporters Worried Over Rupee Volatility

In another development, exporters have sought government intervention to help them deal with the exchange rate volatility that has made business decisions difficult for them.

“These days the currency is behaving in a more volatile manner than the stock exchange ,” Fieo president Ramu Deora said, adding that it was not helping anybody other than speculators.

“These days the currency is behaving in a more volatile manner than the stock exchange ,” Fieo president Ramu Deora said, adding that it was not helping anybody other than speculators.

They have sought a minimum exchange rate guaranteed by the Centre, interest payment on foreign currency accounts and greater convertibility of the Indian rupee to mitigate the hardship.

Indian rupee moved in a 8% band against the dollar in 2010, ranging between Rs43.74 and Rs48.76.

Such major fluctuations send all our price and profit calculations haywire and in some cases we have to suffer losses, said S P Agarwal, president, Delhi Exporters Association. “For instance if orders for my goods are booked when a dollar is ruling at Rs47 and by the time I realise my payments it falls to Rs45, I may end up suffering a heavy loss as we work on very thin margins,” Agarwal said. India’s exports are expected to overshoot the target of $200 billion set for the year thanks to a recovery in demand in the US and parts of Europe and diversification into new markets.

Source : economictimes.indiatimes.com