India's Services PMI remianed the most robust globally at 53 and Exports unable to maintain the upward momentum of July still grew 44% yoy to $ 24 bln taking the "tally" for the first five months to $132 billion. Hwever, imports maintained their momentum and the resultant monthly trade deficit climbed to $14 bln and for the first five months eclipsed the planned SWF by 5 times at $56.77 bln India will have its own SWF to materially manage its resource requirements and thence its trade deficits in a very small time if the Planning commission gets a clear signal for the same.

Overseas energy interests of India include rare production sharing contracts in Iran and Thailand by ONGC Videsh and recently BPCL has signed PSCs in 14 global wells including Mozambique with Videocon.

It also has 10 new fields in Brazil to farm its interest in Energy. As of now imports cost the country a good $50 bln in August, the $14 bln deficit eclipsing its gains in Exports of Wheat, Coffee and Cotton while in Tea its monthly production kept growing to nearly 500 mln kgs for the 6 months but was hit by a downward tick of 30% in Exports from South India to just 6.6 mln kgs while North kept exports growing by 18% for another 10 million kgs in Exports. IT Export figures may tick down for the rest of the year

As an ongoing comparison, China produces 158 million bales of Cotton in a return from dull season in august and Cotton prices recovered globally instantly helped by crop damage in US. Global imprts were a 8.1 million tonnes with India lkeeping unrestricted Exports open in Cotton in the new season starting from October. US and Pakistan , the 2nd and 4th largest producers of Cotton have lost most of their crop to drought damaghe and other damages in this season Cotton and Tea prices will likely remain robust thru the rest of the year as Coffee also continues a global high now ruling above $2.2 k per tonne. Cotton exports by India will exceed 8 million bales this year, growing by more than 20% in the new period that started in August for the commodity from 6.6 million bales till July 2011

China had been keeping cotton imports down in April - July as also for Sugar. Sugar imports by china will increase to 2.1 mllion tonnes

 

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