Categories
Bankruptcy Commodities

Phoenix Commodities has gone into liquidation after amassing $400m in potential trading losses

Phoenix Commodities, a trader of agricultural products with offices in Dubai and Singapore, is being liquidated after amassing more than US$400 million (S$567 million) in potential trading losses. It was valued at $1.1bn-$1.24bn as recently as January, according to a document filed by its provisional liquidators.. The Phoenix Group, which was registered in the British Virgin Islands, operated globally with about 100 corporate entities located in Europe, Africa, Asia, Australia and North America and employed over 2,500 people.

First Abu Dhabi bank reports $73.3m exposure to Phoenix Commodities. Emirates NBD, Mashreq, HSBC Holdings and Standard Chartered were also owed millions by the company.

ArabianBusiness.com

Phoenix Commodities began as a rice trading business in 2001. Its executive chairman, Gaurav Dhawan, became the majority shareholder in 2006 and expanded its activities. It had three main divisions – agrifoods, resources (coal and metals trading) and consumer brands. Phoenix traded 12m tonnes of commodities and goods last year and claims to be one of the largest rice distribution companies in the world.

Categories
Uncategorized

States told to ensure no hurdles to agri exports

The Government of India (GoI) has asked states to ensure that farmers don’t face any problems in shipping exportable items during the lockdown. India is a big exporter of agricultural products with an agri export revenue of $38 billion in 2018-19. The government has identified 21 agricultural products, including honey, potatoes, grapes, soybeans and groundnuts, which India can export, taking advantage of trade restrictions against Chinese goods. The government has allowed traders and bulk purchasers to buy agricultural products directly from farmgate through farmer producer organisations (FPO) and government owned warehouses, bypassing mandis (agri market yards), to ease procurement and transportation of agricultural goods. There is a big demand for agricultural produce from India as the world have gone into panic buying. The government directive states:

Farmers should not lose on any export opportunity of surplus food items. Every step should be taken to ensure hassle-free export of agri commodities.

Read more at The Economic Times