Government bans wheat exports
Mumbai: The Union Government has banned exports of wheat as the crop of wheat has had a lower-than-satisfactory outlook leading to growing concerns over prices. The Agriculture Ministry's latest estimate for the 2006-07 season rabi crop is 72.5 million tonnes (mt), down from the initial estimate of 74.0 mt and production target of 75.5 mt. Last year, wheat output was 69.5 mt. Even though production this season is anticipated to be higher by 3 mt as per the second estimate, there is a possibility of further downward revision in crop size if weather conditions turn unfavourable.

Harvest of early sown crop in major growing States is likely to commence early this season - as early as mid-to-late March as against the normal mid-April. In cognizance of the prospects of wheat crop and anticipated early arrivals, open market prices have already begun to soften. Those holding inventory are unloading stocks in the market. Declining prices could theoretically open a small window of opportunity for exports.

The ban on export is intended to prevent even a small quantity of the grain from leaving the country. With the approach of harvest season, wheat market is expected to correct down. With procurement rate fixed at Rs750 a quintal, open market price inclusive of taxes would be around Rs850 a quintal or even lower depending on local tax structure.

Internationally, wheat prices have been ruling firm following lower production in major origins and declining stocks during 2006-07. India.
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Italy, India signs 11 MoUs; Prodi wants customs duties reduced
Mumbai: Eleven MoUs (memoranda of understanding) were signed between various Indian and Italian companies primarily from the auto sector (three) followed by two each in the defence and electronics, oil and gas, banking and finance and education sector.

Italian Prime Minister, Romano Prodi, acknowledged the increase in bilateral trade between the two countries but said India has to offer easier market access to Italy on a reciprocal basis. He also pleaded for a reduction in peak customs tariff.

Tata Motors enhanced its partnership with Fiat Auto, S.p.A with an overseas industrial project undertaken for the first time. The companies also decided to strengthen their commercial relationship by looking at a feasibility study to enter the commercial vehicle segment jointly in various markets.

Mahindra & Mahindra is also set to enhance its product portfolio by introducing a new transmission from Carraro group for its upcoming `475 deluxe' tractor range.

In the defence and electronics sector, Selex Sistemi Intergrati, part of the Finmeccanica group and providing the latest solutions for air defence, vessel traffic management, coastal defence and air traffic management systems the design and manufacture of helicopters, missiles defence electronics, transportation and energy, has signed an MoU with India's largest engineering goods manufacturer, Bharat Heavy Electricals Ltd (BHEL).

Elettronica, another leading player in electronic defence, has tied up with Alpha Design Technologies to develop design, development, production and support for electronic warfare systems for the Indian defence market.

The oil and gas sector saw two agreements between Eni SpA and Oil and Natural Gas Corporation (ONGC).

The primary one being the joint deepwater exploration agreement signed for local and overseas markets followed by one signed for hydrocarbon exploration activity in India and Congo, Brazzaville.

Tecnimont, a leading engineering and construction company in oil and gas, energy sectors has signed an MoU with Engineers India, to develop common business perspectives in the UAE.

Two partnership agreements have been signed in the education sector. STMicroelectronics, a global leader in developing and delivering semiconductor solutions, has tied up with Birla Institute of Technology and Science (BITS) Pilani and Indian Institute of Technology (IIT, Delhi) to jointly set up state of the art research and innovation labs at their respective campuses. Both labs are expected to be operational by Q2 - 2007.
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