AILBIEA - SPLASH 2011 - 10th Anniversary

10th Anniversary

“There are two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle.” - Albert Einstein

How true is the above saying ! When we started our Association ten years ago, little did we realize the immense potential that lay in pursuance of its objectives; significant being the one to break ice with various authorities, to bring in good deal of relief to our members, in terms of systematization and simplification of procedures.

AILBIEA’s ongoing journey of ten years has been really educative and filled with varied experiences. The key to success is being aware that one should not wait for inspiration to start anything. Action always generates inspiration. So from the day of our launch, in the year 2000, we have been progressing at a healthy pace, making decent inroads in the various governmental and revenue departments with our polished and sincere representations.

‘Change’ is the well accepted and established phenomenon which is ever evolving around the business and lives of people. How does one tune himself / his business with ever-changing trends and norms ? This is where the challenges lie for us; to keep abreast with constant changes and try and bring about a balance to ensure that our members are not adversely impacted.

It is imperative that members realize their responsibilities and act in a more mature and pro-active manner, rather than have single-minded focus on making profits at any cost ! To start with, members should equip themselves with knowledge of the laws and procedures in force, from time to time, getting involved in day-to-day operations and work. It has to be a holistic approach, a fine team work, carrying along all those involved in the operations and ensuring that at no given time do they ever breach any of the parameters set for truthful and honest execution of their businesses.

It is rightly said, “Your vision will become clear only when you can look into your own heart. Who looks outside, dreams; who looks inside, awakens.” Blame game is just not acceptable in our EXIM trade; we cannot resign ourselves to our fate and destiny, for ultimately, we have to be our own masters, chalking out the right path to be able to tread on smooth terrains.

Until one is committed, there is hesitancy, the chance to draw back, ineffectiveness. Concerning all acts of initiative (and creation), there is one elementary truth, the ignorance of which kills countless ideas and splendid plans: that the moment one definitely commits oneself, then Providence moves too. Just ponder over this wonderful saying,
Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it. How true !

Various issues impacting our Liquid Bulk Trade have been alarmingly cropping up at irritatingly regular intervals. AILBIEA has always strived hard to address these issues with finesse and to a fairly great degree, with success. However, the response and feedback from members continue to be a cause for concern, more so because of the indifferent attitude adopted by many, in re-grouping to tackle such impacting issues.

Members have a strange feeling that the IMPOSSIBLE is what cannot be done, until someone does it ! But the time has come for every member to realize one’s commitment and contribution to AILBIEA, thereby strengthening the Association with unstinted support and trust. This will work wonders ! If every member gets into thinking process of AILBIEA and participates in the meetings and discussions to tackle various issues, then AILBIEA would become a potent force to reckon with in the country! As Martin Luther King Jr. had said, “We must learn to live together as brothers or perish together as fools.”

To give the much-needed impetus and to make AILBIEA even more visible, it is imperative that all members take active part in the discussions, attend meetings, participate in representations and keep giving their inputs. Members’ involvement and feeling of ‘ownership’ about the Association will help generate more enthusiasm to perform at optimum levels.

There was a time when individually, members were virtually running from pillar to post, to have their genuine issues resolved and met with no success, which eventually led to the formation of AILBIEA. In the initial years of formation itself, AILBIEA was able to make path-breaking moves and met with resounding success. It only established and testified the fact that as an ASSOCIATION, we can really make things happen ! So, it is in the interest of the members that they strengthen their very own AILBIEA, by their passionate and intense commitment towards this family-like Association.

AILBIEA has ambitious plans and ideas to start operations in all major Ports, where there is significant activity of Liquid Bulk Import / Export. The main aim and objective is to be a perfect catalyst between our members and the governmental departments, to ensure hassle-free and smooth flow of EXIM Trade, which eventually will be a great boon to our economy.

10 years have gone in consolidation and getting AILBIEA established. Now, that AILBIEA has come to stay, being accepted and recognized in all forums as a progressive and interactive Association, it is time to THANK and acknowledge the magnificent contributions of some of the members, who have played a very crucial role in playing as a perfect TEAM. It is also time for other members to wake up and join in the mainstream, to enjoy the fruits of success and hard labour !

I wish to sincerely THANK my colleagues for their unstinted support and unconditional help and all members who have helped our Association grow, over the years. I only request other members to put on their shoes and start walking along with AILBIEA, in all well-meaning endeavors and pursuits. Together, we can be a really potent force and do wonders for EXIM TRADE.

Remember, AILBIEA is the body and soul of LIQUID BULK TRADE and dear members, you are the driving force, guiding AILBIEA to a superior grade !

Liquid Bulk Commodities to boost Economic Growth

Make no mistake; India is now one of world’s fastest growing significant economies. Sustained growth in GDP resulting in rising incomes and population pressure drive demand for a range of goods and services. In the coming decades, the country’s growth will be significantly commodity-driven.

Food, Textiles, Energy and Housing and Infrastructure are growth sectors with strong commodity content. Given the mismatch between rapidly expanding domestic demand growth and trailing domestic supply growth, the demand-supply mismatch is expected to widen, necessitating larger imports to meet the consumption needs of people.

Recent trends suggest that India may be slowly but inexorably moving towards food insecurity and energy insecurity. So, liquid bulk cargoes, especially for the food and energy sectors, will play a more critical role in future than hitherto.

Energy: It is important to recognise that energy consumption fuels economic growth. Given the current state of manufacturing technology, often there may be no alternative but to burn fossil fuels, especially mineral oil. No wonder, there is a strong positive co-relation between energy use and economic growth.

India’s energy consumption has been rising rapidly in recent years to fuel growth in Manufacturing, Transportation and other sectors. The XIth Five Year Plan projections for crude imports and petroleum consumption have gone awry, with growth expanding more robustly than projected five years ago.

It is the admitted position that domestic production of crude oil is not adequate to meet the domestic demand of petroleum products. The dependency on imports in 2009-10 for crude oil was as high as 77 %. Experts project a worsening situation in the next few years, with import dependency rising to an alarming 90 %.

According to government estimates, crude imports into the country touched a humungous 159 million tons in 2009-10, at an estimate value of $ 79.5 Billion. In 2004-05, India’s crude import was 95.9 ml.t. which expanded to 99.4 ml.t. the following year. In 2006-07, import volume was 111.5 ml.t. which increased to 121.7 ml.t. the following year and then on to a new high of 132.8 ml.t. in 2008-09.

Indigenous production of crude oil has been near-stagnant at 33-34 million tons since 2006-07.

Efforts to accelerate hydrocarbon explorations and production activities to increase crude oil output are going on; yet, they seem to be unable to match rising demand.

Substitution of oil through use of alternative / non-conventional sources of energy such as biodiesel and ethanol-blended petrol is also being explored; but with limited success.

In 2009, the Ministry of Petroleum and Natural Gas estimated the consumption, production, import and export of major petroleum products as under:

Motor spirit

So, clearly, the volumes of mineral oil imports into the country have a strong potential to rise consistently in the years ahead. The massive quantities will necessitate investments in requisite infrastructure, not only for storage, transportation and distribution, but also for expedited handling at discharge ports.

Vegetable oil: Rising incomes, low current per capita consumption and population pressure generate huge demand growth for Edible Oil. For similar reason, demand for Industrial Oils (for making soaps, detergents, paints and varnish and other industrial applications).

However, indigenous output of Vegetable Oil (both edible and industrial) has not been able to keep pace with rising domestic demand. This has necessitated large-scale imports. Import volumes have been rising in recent years. Today, rather than indigenous oil, imported cooking oil accounts for more than half of the country’s total consumption.

The situation is unlikely to change dramatically on current reckoning. In other words, imports will continue to meet domestic needs, with the volumes likely to rise year on year. India’s Vegetable Oil imports are a function not only of domestic physical demand, but also trade and tariff policies of the government, as well as the possibility of stock transfer from the origins to India, for commercial reasons.

From less than 50 lakh tons in till 2006-07, the country’s Vegetable Oil inflows have doubled to about 88 lakh tons in 2009-10.

Interestingly, import of Non-Edible Oils (palm stearine, palm fatty acids and distillates) has declined from 7.1 lakh tons in 2005-06 to 4.2 lakh tons in 2009-10, as per data compiled by Solvent Extractors’ Association of India.

Summary: It is obvious that liquid bulk commodities have a critical role to play in boosting India’s economic growth in the coming years. Whether for food security or energy security, crude and related products, Vegetable Oils, Industrial Oils, Chemicals and other liquid cargoes, Ethanol and Biodiesel will play an increasingly important role.

The government needs to come up with policies - Fiscal, Monetary, Trade and Administrative - that would support and help the stakeholders in liquid bulk trade stay competitive. There is scope for rationalisation of operations and cost reduction. Huge investments are necessary from the logistics perspective. The private sector is well placed to play an active role in bringing in supply chain efficiencies and capture value domestically.

AILBIEA’s 10th Anniversary

I salute you with a hearty greeting
and remind you all of our first meeting.

I had been set quite off track
by a very badly spasmed back.

My health had been so compromised
Perforce I was hospitalized.

Such are the tricks played by life
but relief came from my Doctor wife.

For Rati got me back on track
accompanied me here and back.

And I have been most delighted
that every year we've been invited

to this great annual event
which all along has been meant.

for a frank exchange of thought
A convivial meeting place is sought.

where players and umpires meet.
And this is the enormous feat.

for which we thank AILBIEA's maker
our dear Jayant and Chandrashekar.

Time of course moves very fast
and in a flash ten years have passed

and we feel a sense of great elation
at the magnitude of the celebration.

The Rooftop was sheer bliss
a venue that I sorely miss.

But now we need much more space
so the Regal Room is the place.

We need, at this stage in our lives.
A hearty welcome to the wives.

Thank you for being with us here,
to us, you are very dear.

with some speeches you must bear
until the entertainment's there!

India's economy rapidly grows
And now we have massive flows.

of Imports and Exports as well.
There was a slowdown for a spell

But that is now well in the past
Now both are growing very fast.

Though Exports now are growing faster
The trade balance is still hard to master.

If the price of crude keeps on rising
with each and every new uprising,

Then the gap in the Current Account
will still continue to mount.

There are those who make the charge
that now the gap is far too large.

They forget, our imports of gold,
which our citizens still hold,

constitutes a major share.
And though the gap may be there

I've shown it is of no import
And so it's clear that we ought.

to stop worrying, continue growing,
Keep two-way trade smoothly flowing.

The life blood of the economy is oil.
Any blockage there is bound to spoil.

the economy's chance to grow.
We must ensure a constant flow.

And AILBIEA has a role to play.
I think it would be safe to say.

That AILBIEA provides us therapy
in Economic Cardiology.

And Jayant Lapsia, to be brief,
would be the Surgeon-in-chief.

He always keeps the life-blood flowing,
which keeps the economy then growing.

I think that now we should take stock
of every impediment and block.

And if the block gets very nasty
we should resort to angioplasty.

Stamp duty is a source of plaque
a problem that we need to crack.

And all of us should take stock
of Octroi as a major block.

Now ports are spreading everywhere
Mumbai and JNPT beware.

If wharfage charges aren't reduced,
your customers will be seduced.

Your services will be outclassed
and your busy ports will be bypassed.

Now Customs once were known to pounce
on discrepancies of a mere ounce.

No longer lurking strangulators
but the friendliest facilitators.

Like statins at appropriate doses
They prevent atherosclerosis.

Let us ensure blood smoothly flows
but also watch where it goes!

The industry also seeks
Some help in preventing leaks.

Now pilferage is a major gash.
Why let the Mafia cut and slash?

And then there are the endless pricks
of shipping agents' many tricks.

We need to have some restriction
On charges, not on fact, but fiction!

And steadily the list enlarges
With washing, damage, other charges.

The situation needs to be mastered
These gaping wounds should be plastered !

We must demand what is right.
But also always keep in sight.

that we always do what we ought
and give AILBIEA all support.

Reviews of the Aniversary