Cap on cotton exports to hinge on excess production: Textiles minister

New Delhi: The textiles ministry today said it would be in favour of cotton exports beyond the present cap of 55 lakh bales this year if production exceeds the estimate of 325 lakh bales, reports PTI.

"The textiles ministry would be the first to support the movement (of cotton) out of the country in the form of exports (if production exceeds 325 lakh bales)...," secretary in the textiles ministry Rita Menon said when asked if the government would allow cotton exports beyond the current ceiling of 55 lakh bales in the cotton season.

The cotton season starts in October.

She was talking to reporters after the inauguration of a handloom and handicrafts fair at Dilli Haat.

Ms Menon, however said, requirement of the domestic textiles industry should be kept in mind before permitting exports beyond 55 lakh bales.

The domestic textiles industry is likely to consume 220 lakh bales this year.

Earlier, the government had announced that duty free exports of 55 lakh bales (of 170 kg) would be allowed in the current cotton marketing season.

The commerce ministry had said that exports beyond 55 lakh bales would attract duty. To curb exports in wake of rising domestic prices of cotton, a duty of Rs 2,500 per tonne was imposed.

When asked if the government would impose any curbs on exports beyond 55 lakh bales, Ms Menon said "the instruments that we will use after 55 lakh bales (of exports) will be considered by the government after a review meeting later this month."

The textiles commissioner has started registration of cotton export contracts from 1st October and the actual shipments would start from 1st November.

The registration of contracts would stop automatically the moment the ceiling of 55 lakh bales is reached.

Currently, the cotton prices in the domestic market are ruling over 65% higher than Rs22,400 (per candy) in the same period last year.


IMF projects India’s economic growth at 9.7% in 2010

Washington: The International Monetary Fund (IMF) has projected the Indian economy will grow by 9.7% in 2010 and 8.4% in the next fiscal, driven by robust industrial production and macro-economic performance, reports PTI.

However, neighbouring China is expected to grow at an even faster rate of 10.5% in 2010 and 9.6% in 2011, driven by domestic demand, the IMF said in its latest World Economic Outlook report.

Advanced economies, on the other hand, are projected to grow by just 2.7% in 2010 and 2.2% in 2011, the IMF report said, adding that global trade is forecast to expand by 4.8% in 2010 and 4.2% in 2011, with a temporary slowdown during the second half of 2010 and the first half of 2011.

"India's macro economic performance has been vigorous, with industrial production at a two-year high. Leading indicators — the production manufacturing index and measures of business and consumer confidence — continue to point up," the IMF said.

"Growth is projected at 9.7% in 2010 and 8.4% in 2011, led increasingly by domestic demand. Robust corporate profits and favourable external financing will encourage investment," it said.

"Recent activity (10% year-over year growth in real gross domestic product —GDP — at market prices in the second quarter) was driven largely by investment and the contribution from net exports is projected to turn negative in 2011 as the strength in investment further boosts imports," the IMF said.

According to the World Economic Outlook report, growth in emerging Asia economies stands at about 9.5%, with robust demand from China, India, and Indonesia benefiting other Asian economies.

In China, a major fiscal stimulus, a large expansion of credit and a number of specific measures to boost household income and consumption increased domestic demand growth to almost 13 per cent in 2009, contributing to a large decline in the current account surplus.

The recovery is now well established, and a transition from public stimulus to private-sector-led growth is underway, it said.

Latin America has also recovered strongly, with real GDP growth at about 7%.

The recovery in Latin America is being led by Brazil, where real GDP growth has been close to 10% since the third quarter of 2009 and the economy is now showing signs of overheating, the report said.

A number of other economies have also returned to solid growth. However, Mexico is lagging behind, partly because of its strong trade linkages with the United States.

Growth in Mexico recently picked up on the back of strengthening exports to the United States, but the output gap remains large.

The World Economic Outlook projects that the output of emerging and developing economies will expand at a rate of 7.1% and 6.4%, respectively, in 2010 and 2011.

"The global recovery remains fragile, because strong policies to foster internal rebalancing of demand from public to private sources and external rebalancing from deficit to surplus economies are not yet in place," it said.

"The global recovery remains fragile, because strong policies to foster internal rebalancing of demand from public to private sources and external rebalancing from deficit to surplus economies are not yet in place," it said.


Hiranandani to invest Rs100 crore to expand Rodas hotel venture

Mumbai: Upbeat about the growth prospects of the hospitality sector, realty major Hiranandani Group today revealed its plans to invest around Rs100 crore in the expansion of its hotel venture 'Rodas', reports PTI.

"We are very upbeat on the hospitality sector and plan to expand the chain across the country. This year we are launching a five-star 160 room hotel at an investment of Rs100 crore," group chairman and managing director Niranjan Hiranandani told PTI.

The group currently operates a 32-room designer business ecotel hotel in Powai and plans to launch its second property of 160 rooms this year.

"Rodas is a designer ecotel offering impeccable facilities for relaxation, leisure and business support, along with every personalised service. We want to be a niche player in this segment," Mr Hiranandani said.

While refusing to disclose further details on the subject, he discussed another project 23 Marina, a 90-storey residential tower located in one million sq ft in Dubai. 23 Marina is scheduled for completion by December this year, he said.

Besides, Mr Hiranandani said, the company has acquired a 270-room property in Dubai and will renovate it into a five-star hotel by 2013.


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