Inflation rate moves up to 8.57 per cent
New Delhi: The annual rate of inflation has gone up by 0.36 percentage points to touch a new high of 8.57 per cent for the week ended February 10, due to rise in the prices of manufactured products. The inflation rate based on wholesale price index for all commodities (base year: 1993-94 = 100) peaked a new high this calender year from the previous week's 8.21 per cent and only 3.04 per cent a year ago.

The final inflation rate during mid-December stood at 8.56 per cent from the provisional 8.01 per cent. Prices of manufactured products increased by 0.3 per cent, while that of primary items declined by 0.1 per cent and fuel remained firm at previous week's level.
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Acrylic fibre industry seeks tariff protection
New Delhi: Acrylic fibre manufacturers have urged the government to bring in safeguards against duty-free imports and reduce customs tariff on raw materials like acrylonitrile.

The industry has demanded imposition of safeguards like auxiliary duty and countervailing duty on duty-free imports from Nepal, to ensure that the domestic industry does not suffer on account of unfair competition from abroad. Forum of Acrylic Fibre Manufacturers, in a letter sent to Mr. Yashwant Sinha, finance minister, has said that removing anomalies in the duty structure is key to the survival of the acrylic fibre industry.

Currently, the import duty on acrylonitrile — the major raw material for acrylic fibre — is 22 per cent while the duty on the finished product, acrylic yarn, is lower at 20 per cent. The letter notes that the current duty structure goes against the government’s oft-reiterated policy of having lower duty on raw materials and intermediates as compared to finished goods.
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Crisil report sees consolidation of aluminium sector
Mumbai: The Credit Rating Information Services of India Ltd. (Crisil) has said that the Indian aluminium industry will have one or two players with a globally competitive cost structure, including lesser power costs in the medium term.

In its latest review of the aluminium industry, Crisil has said that ongoing consolidation and capacity expansions could lead to emergence of one or two very strong players in the domestic market and help reduce the competitive pressures and irrational pricing practices. The review notes that domestic players are likely to maintain favourable financial health with globally competitive cost structure and comfortable price trends on the London Metal Exchange (LME).

The demand for aluminium in the country was expected to grow by five-six per cent per annum with increased use by consumer durable and packaging sectors and the recent spurt in the construction activity, the review has noted.
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Food processing policy to be discussed in budget session
New Delhi: The union government is likely to take up the National Food Processing policy during the current budget session of parliament. The new draft policy document seeks to remove bottlenecks and restrictions and attract investment. In particular, it aims at substantially enhancing value addition and raising the processing level from a meagre two per cent at present to at least ten per cent by the end of the decade.

India is one of the largest producers of fruits and vegetables in the world with an output of about 602 million tonnes but has been able to process only two per cent of its farm produce. The new policy therefore, seeks to attract foreign direct investment (FDI) as well as domestic private investment to make the sector more dynamic. The government has projected a potential investment of about Rs 1,40,000 crore in the sector which will raise the processing level to ten per cent of current farm output and generate about three crore jobs.

The new policy seeks to do away with constraints like high tax structure, multiplicity of laws and agencies and create necessary environment for investments to be more profitable. It has also sought a new comprehensive processed food development legislation integrating various laws governing the agro-processing sector.
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Alcoholic beverage industry sets up task force
New Delhi: Liquor companies have set up a industry task force that will look into the needs and demands of the spirits segment, in the wake of lifting of Quantitative Restrictions (QRs). The task force will consist of representatives of the All India Distillers Association (AIDA) and the Confederation of Indian Alcoholic Beverages Companies (CIABC) and Mr. RV Subramaniam, an independent consultant.

The task Force on spirits will meet in the next few days to finalise a representation to the department of food processing, department of chemicals and petrochemicals and the commerce ministry. Yet another task force for the brewing industry will be formed with representatives of All India Breweries Association (AIBA) and United Breweries among others.

The industry has already constituted a task force for the wine segment. This task force has representatives from Champagne Indage, Grover Vineyards and United Breweries and is trying to pursuade the government to delink wine from hard spirits and has sought higher duty structure on imported wine.
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