Union Govt Has Sanctioned Rs 122 Cr For Replanting And Rejuvenation Schemes

Kochi: The Union Government has sanctioned Rs 122 crore for cardamom replanting and rejuvenation schemes in the next four years, according to V.J. Kurien, Chairman, Spices Board.

Of the total amount, Rs 50 crore will be spent in Kerala this year. The main purpose of the programme is to increase the production from 9,500 tonnes to 24,000 tonnes, he said at a press meet. The Board is also working out various schemes to market cardamom both in domestic and export markets.

The Board will also explore the possibility of utilising the neutraceutical properties of cardamom as part of the marketing strategy, he said.

Export volume down

The major markets for cardamom are Saudi Arabia, Malaysia, Japan and the UK. The exportduring 2007-08 has been 500 tonnes valued at Rs 24.75 crore (650 tonnes valued at Rs 22.36 crore), registering an increase of 11 per cent in value terms. However, the export volume has declined by 23 per cent.

The reported production decline in Guatemala, which controls more than 90 per cent of the global trade, has resulted in sharp increase in the prices of cardamom, he said.

Incentive for vanilla

According to the Chairman, the Government had also sanctioned Rs 4.5 crore to meet the price difference between natural and synthetic vanilla. This will provide an incentive to encourage the use of vanilla, he added. The export of vanilla has gone up from 125 tonnes in 2006-07 to 200 tonnes in 2007-08. However, the export value has gone down by 11 per cent owing to the decline in the prices in the international markets.

Madagascar, the largest producer is supplying the material in the range of $18-20 a kg. The supply from other producing countries such as Uganda, Papua New Guinea, has pull down the prices in the international market. The major markets are the US, Germany and France.

Govt Holding Consultations On Loan Waiver Scheme

New Delhi: The Finance Minister, P. Chidambaram, said on Friday that he would impress upon chief executives of public sector banks, at their meeting on May 1, to continue their “normal lending operations” to debt-distressed farmers, pending finalisation of guidelines for the Rs 60,000-crore loan waiver scheme.

He was responding to supplementaries during the Question Hour in Lok Sabha on the question raised by members Haribhau Rathod and Chinta Mohan on the farm debt waiver and debt relief scheme. The agitated members drew the attention of the Finance Minister to banks’ reluctance to provide fresh loans to farmers (who are beneficiaries of the scheme) in the absence of guidelines from Reserve Bank of India (RBI) to various banks for implementing the loan waiver scheme.

“The guidelines would be finalised in consultation with the RBI and the National Bank for Agriculture and Rural Development (Nabard). I had given myself time of March, April and May to hold consultations to finalise the guidelines. But, let me repeat my assurance already made to this House. By June 30, the loans will be waived,” Chidambaram said.

On a suggestion that the land holding limit for availing of the debt waiver scheme should be raised, Chidambaram said that every suggestion made on the debt waiver and debt relief scheme was under examination. “I can do what is doable and what is affordable,” he said.Meanwhile, in a written answer, Chidambaram said that guidelines which are in the process of being drafted will be issued by the RBI and Nabard to enable completion of implementation of debt waiver scheme by June 30,.

The Finance Minister also said that the suggestions for modifying the scheme broadly relate to varying the land- holding criteria taking into account the irrigation status or productivity; doing away with the land holding criteria; inclusion of those farmers in the scheme who have taken loans from moneylenders; and extension of the debt waiver and debt relief scheme to farmers who have paid their loans in time.

The Government has already set up a farmers’ debt relief fund with initial corpus of Rs 10,000 crore to fund the debt waiver and debt relief scheme.

Govt Allows FDI In Commodity Exchanges

New Delhi: The Government on Wednesday liberalised the foreign direct investment (FDI) cap across various sectors including public sector oil refineries, while allowing foreign investment in areas such as commodity exchanges and credit information companies (CICs).

In the case of petroleum refining by PSUs, the Union Cabinet has approved hiking the equity cap to 49 per cent (from the existing 26 per cent) with prior approval of the FIPB.

However, it does not envisage dilution in the existing PSUs.

Also in the case of trading and marketing of petroleum products, the Cabinet has waived-off a condition of compulsory divestment of up to 26 per cent in favour of Indian partner/public within five years.

FDI In refining

While FDI up to 100 per cent through automatic route is allowed for private companies, in the case of PSUs, there was a cap of 26 per cent. Today’s decision would ease the entry of foreign players in the refining sector in partnership with PSUs.

The move assumes significance in the backdrop of the interest envisaged by foreign companies such as Kuwait Petroleum for forging alliances with new refining projects of state owned refiners.

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FDI up to 26 per cent and the FII up to 23 per cent has been allowed in commodity exchanges subject to the condition that no single investor would hold more than five per cent.

The move is in sync with the stance of the Department of Economic Affairs that there should be separate caps within the overall cap of 49 per cent for the FDI and the FII investment at 26 per cent and 23 per cent, respectively.

Industrial parks

However, DIPP had said there was no justification for imposing separate caps on the FDI and the FII within the overall foreign investment cap.

The Cabinet also decided to exempt foreign investment in industrial parks from the provisions of Press Note 2 (2005) that stipulates conditions such as minimum capitalisation and a three-year lock in.

Similarly, in case of construction development projects, investment by registered FIIs under the portfolio investment scheme would be distinct from the FDI and outside the provisions of Press Note 2 (2005).

Besides the minimum capitalisation of $10 million for the wholly-owned subsidiaries and $5 million for joint ventures with Indian partners, the Press Note 2 specifies that original investment cannot be repatriated before a period of three years from completion of minimum capitalisation. It also stipulates other conditions such as minimum area to be developed.