India-China trade tensions ease! China loosens urea export curbs to India; move comes amidst Trump's tariff wars
Big sign of easing tensions! China has relaxed restrictions on urea exports to India, signalling an improvement in diplomatic relations between the two Asian countries, particularly as both face trade challenges from US President Donald Trump's administration.
India, which leads global urea imports, is expected to receive approximately 300,000 tons, sources told Bloomberg. China, traditionally a significant urea exporter, had previously limited its overseas sales of this nitrogen-based fertiliser in recent years.
This Chinese policy shift follows Trump's recent trade actions, specifically the doubling of tariffs to 50% on Indian products as a consequence of New Delhi's Russian oil purchases, which has contributed to strengthening China-India relations.
Also Read |
First time since 2021! Faced with EU sanctions on Russia oil, India's Nayara Energy ships diesel cargo to China
Relations between India and China deteriorated significantly in 2020 following border confrontations. India has now lifted restrictions on tourist visas for Chinese citizens, and there are prospects of Prime Minister Narendra Modi and Chinese President Xi Jinping meeting during a summit in Tianjin beginning on August 31.
India-China trade dynamics
Nearly half of China's urea exports were destined for India in 2023. However, exports to all destinations stopped last year.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
15 Foods That Might Kill You Before Anything Else Does
HealthSupportMag.com
Undo
Whilst Beijing eased restrictions in June, it maintained specific limitations on India until now.
The trade flow, although currently modest, has the potential to expand substantially, potentially alleviating global supply constraints and reducing elevated prices.
India's urea imports declined by approximately 20% to 5.7 million tonnes during the fiscal year that concluded on March 31, as reported by the Fertiliser Association of India.
The organisation noted that purchases from China decreased to roughly 100,000 tonnes in 2024-25, a significant reduction from 1.87 million tonnes in the previous year.
India's substantial agricultural sector and its domestic production shortfall necessitate considerable imports to ensure consistent fertiliser availability for farmers. The country maintains significant subsidies on urea, as this essential soil nutrient plays a vital role in enhancing the productivity of principal crops.
Also Read |
Trump's 'critical' move on Pakistan? US step on BLA may aim at America mining rare earths; how will China react?
Stay informed with the latest
business
news, updates on
bank holidays
,
public holidays
, current
gold rate
and
silver price
.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
18 minutes ago
- Business Standard
Crude oil prices fall ahead of Trump-Putin meeting at Alaska summit
Oil prices declined on Friday as traders awaited talks between U.S. President Donald Trump and Russian leader Vladimir Putin, which some say could lead to an easing of the sanctions imposed on Moscow over the war in Ukraine. Brent crude futures were down 89 cents, or 1.3 per cent, at $65.95 a barrel by 1315 GMT. U.S. West Texas Intermediate crude futures were 97 cents, or 1.5 per cent, lower at $62.99. At Friday's meeting between Trump and Putin in Alaska, a ceasefire in Ukraine is at the top of the agenda. Trump has said he believes Russia is prepared to end the war, but he has also threatened to impose secondary sanctions on countries that buy Moscow's oil if there is no progress with peace talks. "The market is watching out for whether there is a ceasefire or not. An expectation of a ceasefire translates into more Russian production," said UBS commodities analyst Giovanni Staunovo. "The question is will there be escalation or de-escalation?" For the week, WTI is set to drop 0.7 per cent while Brent is on track for a 0.4 per cent gain. Weaker economic data from China, meanwhile, raised concerns over fuel demand. Chinese government data showed factory output growth slumped to an eight-month low and retail sales growth expanded at its slowest pace since December, weighing on sentiment despite stronger oil throughput in the world's second-largest crude user. Throughput at Chinese refineries rose 8.9 per cent year on year in July, but that was down from June levels, which were the highest since September 2023. Despite the increase, China's oil product exports last month were also up from a year ago, suggesting lower domestic fuel demand. Forecasts of a growing oil market surplus also weighed on sentiment, as did the prospect of higher-for-longer U.S. interest rates. Bank of America analysts said on Thursday that they were widening their forecast for the oil market surplus, citing growing supplies from the OPEC+ producer group comprising the Organization of the Petroleum Exporting Countries, Russia and other allies. The analysts now project an average surplus of 890,000 barrels per day from July 2025 through June 2026. That forecast follows this week's International Energy Agency predictions saying the oil market looks "bloated" after the latest increases to OPEC+ output. (Reporting by Anna HirtensteinAdditional reporting by Laila Kearney and Colleen HoweEditing by Joe Bavier, David Goodman and Jan Harvey)
Hans India
18 minutes ago
- Hans India
Experts Call for Cross Sector, International Collaboration and Tech led Tracking and Enforcement to Curb Illicit Tobacco trade
At the recent summit held in Manila, 'Combatting Illicit Trade in Southeast Asia: Cross-border and Cross-Sector Strategies for Tackling the Threat', experts from Southeast Asia underscored the escalating threat of illicit tobacco trade — a challenge undermining public health systems and draining government revenues in India and Southeast Asia. Fueled by affordability gaps, tax disparities, and weak enforcement, the illegal tobacco market is expanding rapidly. Globally, an estimated 500 billion illicit cigarettes are consumed annually, representing 14–15% of total tobacco use. These products evade taxation and quality control, resulting in significant fiscal losses and heightened health risks. Jericho Nograles, President, Philippine Tobacco Institute, highlighted how the scale of the problem is growing 'In the Philippines, one in five cigarettes is illicit, with a sharp rise seen post-pandemic. Yet governments often avoid discussing the issue, sometimes due to embarrassment. Legal exports can end up fueling illicit imports elsewhere so we need to normalise honest policy dialogue about the existence of illicit trade, if we want real solutions.' On the sidelines of the event, Rodney Van Dooren, Head of Illicit Trade Prevention, Philip Morris International said, 'Illicit tobacco is not just an economic concern but also a health hazard. Counterfeit cigarettes have been found to contain up to 160% more tar and 133% more carbon monoxide than regulated products. In India, where about 120 million people smoke cigarettes, nearly one in four is illicit. Industry estimates suggest this translates into annual excise losses of ₹12,000–13,000 crore (USD 1.5–1.6 billion). 'Illicit tobacco trade in India, and globally, requires a multifaceted approach: balancing regulatory oversight with consumer realities, leveraging technology alongside G2G cooperation with source and transit countries, and stronger enforcement mechanisms The path forward is not just about limiting supply but about understanding demand and building systems that address both,' he added. The affordability of these unregulated products, particularly in low-income and border regions, drives sustained demand. In some cases, the absence or prohibition of regulated, less harmful alternatives has inadvertently pushed consumers toward black-market products. Regional dynamics further complicate enforcement. Illicit products often originate legally in one jurisdiction before being smuggled into others. Chris Humphrey, Executive Director of the EU-ASEAN Business Council, called for a pragmatic reassessment of current fiscal and enforcement strategies, 'Excessive and complex taxation structures create profit margins that make smuggling highly attractive. If we don't have the right IP laws in place, and we don't have the right enforcement in place, that encourages illicit traders. Enforcement is also limited by resources and low penalties, which means there's little deterrent for those involved in these businesses.' Experts agreed that a coordinated approach — including tax rationalisation, cross-border regulatory harmonisation, and technology-led tracking and enforcement — is vital. Without urgent reforms, the illicit tobacco trade is set to continue eroding public health gains and economic stability in the region.
&w=3840&q=100)
Business Standard
18 minutes ago
- Business Standard
What a possible Russia-Ukraine ceasefire could mean for global markets
World markets are watching closely as US President Donald Trump and Russia's Vladimir Putin meet in Alaska later on Friday to seal a possible ceasefire agreement in Ukraine. This is a conflict that sparked an energy shock, sent food prices soaring, battered European assets and cut Russia's economy off from much of the Western world. Details and the longevity of any agreement will be key, and for now investors are on standby. Ukraine's government bonds - key indicators of the mood - in recent days have largely stalled at a still-distressed 55 cents on the dollar. "The big issue will be, of course, that even if we get a ceasefire, how sustainable is that?" said Zurich Insurance Group's chief markets strategist Guy Miller. Here is a summary of how Europe's biggest conflict since World War Two has shaped markets and what impact a ceasefire agreement could have. 1/ EUROPE HURT Europe's reliance on cheap Russian gas meant its economy and stock market were ill-equipped to handle surging energy prices, and Germany's economy, Europe's industrial powerhouse, stagnated. Stocks were broadly punished, with sectors reliant on low energy prices, such as industrials and chemicals, notably hit. European banks also took a drubbing but have since recovered as those exposed to Russia cut ties. It has not been all doom and gloom and the European STOXX 600 index is not far off March's record high. Aerospace and defence stocks have had a supercharged rally since February 2022, with gains ranging from over 600 per cent for Leonardo to over 1,500 per cent for Rheinmetall. "If the fighting stops in Ukraine, I'd expect defence stocks to come off a little bit but I think the fundamental reason why defence stocks have rallied is still there," said Toni Meadows, CIO at BRI Wealth Management. "If Putin is still there and Trump is still there, then the need for Europe to spend on defence is still there." 2/ HEATED The invasion triggered a surge in European energy prices. Brent crude rose as much as 30 per cent to $139 a barrel, while natural gas prices soared nearly 300 per cent to record highs. Crude subsided in the following months. But Dutch TTF futures, the regional benchmark for natural gas, soared as Europe scrambled for an alternative to the Russian gas that fed over 40 per cent of total demand. Europe has since become increasingly reliant on US super-chilled liquefied natural gas. The European Union has committed to boosting its purchases of US crude, gas and coal from around $75 billion in 2024 to $250 billion per year to 2027, under a new US trade deal - a figure most experts say is unrealistic. Oil and gas prices are below 2022 peaks, but they are higher than five years ago, up 50 per cent and 300 per cent, respectively. 3/ GENIE OUT OF THE BOTTLE Following the COVID-19 pandemic, the war ensured the inflation genie was well out of its bottle as energy and food prices soared while agricultural exports from Russia and Ukraine - two leading grain exporters - were disrupted. Central banks backtracked on the notion that an inflation spike was "transitory" and aggressive interest rate hikes followed. Since late 2022, inflation and rates have come down in big economies and focus shifted to US tariffs. High food prices remain a concern, especially for developing economies. World food commodity prices rose in July to their highest in over two years, according to the United Nations' Food and Agriculture Organization. "If Ukraine could operate normally as an economy, that would help food prices around the world," said April LaRusse, head of investment specialists at Insight Investment. 4/ UKRAINE AND RUSSIA Ukraine's economy was battered by the war. The country was forced to restructure $20 billion of its government debt last year as it could no longer afford the repayments given the demands of the conflict. Its bonds then rallied on hopes that a re-elected Trump would broker a peace deal but plunged following increasingly ugly exchanges between Trump and Ukraine's Volodymyr Zelenskiy that culminated in February's infamous Oval Office meeting. The bonds recovered some ground again this week. Russia's economy also contracted after the West introduced sweeping sanctions but soaring defence spending led to a rebound in 2023 and 2024. After jacking up rates to combat the subsequent inflation spike though, some Russian officials now warn of recession risks. Russia's rouble sank to a record low soon after the invasion, but rebounded to seven-year highs later in 2022 as imports dried up. It is up nearly 40 per cent against the dollar this year. Russia and China meanwhile now do more of their trade in the yuan, which has overtaken the dollar as Russia's most traded foreign currency. 5/CURRENCIES UPENDED The war hit the euro, which fell almost 6 per cent against the dollar in 2022 as the economic impact was felt. Analysts say any improving sentiment created by a ceasefire could help the euro, but note that other factors, such as monetary policy were also key. "The euro might benefit, but we wouldn't see this as a game changer for the currency," said Frederique Carrier, head of investment strategy for RBC Wealth Management in the British Isles and Asia. While safe-havens such as the dollar and Swiss franc benefited, the conflict shaped currencies in other ways. Analysts say the use of sanctions against Russia and a decision by the West to freeze some $300 billion of Russian state assets in 2022 has accelerated de-dollarisation, in short, efforts by countries to decrease reliance on the dollar.
