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17th july,2014 daily global rice e newsletter by riceplus magazine

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17th July , 2014

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TOP Contents - Tailored for YOU Latest News Headlines…

 UN strengthens regulations on lead in infant formula and arsenic in rice  Olam To Produce 36,000 Metric Tonnes Of Rice For Nigerian Market-MD  India's monsoon rain deficit narrows, enters active phase  FAO revises downward estimate for 2014 world paddy production

 World Rice News 07.17.2014  South Korea to scrap rice import caps from start of next year: reports

News Detail…

UN strengthens regulations on lead in infant formula and arsenic in rice Source: UN Food and Agriculture Organisation - Wed, 16 Jul 2014 11:00 GMT Author: UN Food and Agriculture Organisation

Any views expressed in this article are those of the author and not of Thomson Reuters Foundation. 17 July 2014, Geneva - UN food standards body the Codex Alimentarius Commission this week adopted new standards to protect consumer health worldwide, including setting out maximum acceptable levels of lead in infant formula and of arsenic in rice. Jointly run by the UN Food and Agriculture Organization (FAO) and the World Health Organization (WHO), the Codex Alimentarius Commission sets international food safety and quality standards to promote safer and more nutritious food for consumers worldwide. Codex standards serve in many cases as a basis for national legislation, and provide the food safety benchmarks for international food trade.The annual meeting this week was attended by representatives from 170 countries and the European Union, as well as 30 international governmental and non-governmental organizations.Lead in infant formulaT. he Codex Alimentarius Commission adopted a recommendation that no more than 0.01 mg per kg of lead should be permitted in infant formula as consumed. Infants and young children are particularly vulnerable to the toxic effects of lead. They can suffer profound and permanent adverse health effects, particularly affecting the

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development of the brain and nervous system, which can diminish their ability to learn.Lead occurs in the environment and trace amounts can end up in the ingredients that are used in the production of infant formula.Levels of lead in infant formula can be controlled by sourcing raw materials from areas where lead is less present.Arsenic in riceFor the first time, Codex has adopted a maximum level for arsenic in rice of 0.2 mg/kg.Long-term exposure to arsenic can cause cancer and skin lesions. It has also been associated with developmental effects, heart disease, diabetes, and damage the nervous system and brain.Arsenic is naturally present at high levels in the groundwater and soil in some parts of the world. The toxic element can enter the food chain when it is absorbed by crops from water and soil. Rice in particular can take up more arsenic than other crops and as a staple food for millions of people can contribute significantly to arsenic exposure, which is detrimental to human health. Arsenic contamination in rice is of particular concern in some Asian countries where paddy fields are irrigated with groundwater containing arsenic-rich sediments pumped from shallow tube wells. Improved irrigation and agricultural practices can help reduce arsenic contamination, for example growing crops in raised beds instead of flooded fields. The Commission also agreed to develop a new code of practice that will help countries comply with the maximum level set and provide producers with good agricultural and manufacturing techniques to prevent and reduce contamination.eterinary drugs Codex recommended that the use of certain veterinary drugs should be restricted in food-producing animals in order to prevent residual amounts of the drugs remaining in meat, milk, eggs or honey. The eight drugs (chloramphenicol, malachite green, carbadox, furazolidone, nitrofural, chlorpromazine, stilbenes and olaquinadox), including antimicrobials and growth promoters, can potentially have adverse effects on human health and may contribute to the development of drug resistance.Other measuresCountries also agreed on maximum levels of pesticide residues and additives in foods as well as maximum levels of contaminants, including toxins called fumonisins that are produced by mould growing on maize. Other measures include new safety and quality standards for foods such as raw scallops, passion fruit, durian and okra.Future workCountries decided on a range of topics for future development, including establishing standards for black, white and green pepper, cumin, oregano, thyme and garlic, and setting maximum levels for cadmium in chocolate and cocoa-derived products.The Commission also discussed the need for a Codex standard for ready-to-eat foods for malnourished children, on the proposal from UNICEF, to guarantee the safety and quality of such foods. The Commission decide to follow up on this discussion at its Committee on Nutrition and Foods for Special Dietary Uses. We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of the Thomson Reuters Foundation. For more information see our Acceptable Use Policy.

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Olam To Produce 36,000 Metric Tonnes Of Rice For Nigerian Market-MD ARTICLE | JULY 17, 2014 - 2:55PM | BY AUGUSTINE AMINU

Nigeria’s dream of becoming self sufficient in rice production got a boost as Olam integrated Rice mill comes to full operation in Nasarawa State.Olam's 6,000-hectare greenfield farm in Nasarawa State was on Monday commissioned by President Goodluck Jonathan.The Rice mill is said to be the largest in Africa.

The Managing Director of Olam for Africa and Middle East, Mr. Venkataramani Srivathsan disclosed that the newly commissioned Olam Nigeria's integrated rice mill would produce additional 36,000 metric tonnes of rice for the nation's domestic market.In his address at the occasion, Srivathsan noted that the establishment of the rice mill was part of the company's contribution to the federal government's quest for the actual inaction of selfsufficiency in rice production, stressing that "This mill, commissioned by President Goodluck Jonathan, characterizes three important aspects; it demonstrates how large-scale commercial farms can work hand in hand with smallholders to help advance Nigeria's agricultural transformation agenda, generating rural prosperity brought local processing. "It also underlines the country's ability to grow quality, nutritious rice that can enhance domestic food security by providing an alternative to imports and as Olam's kicks off its global 25th anniversary celebrations this month, it represents a marker of our ongoing commitment to Nigeria, the country where Olam's was founded."The target of Olam, he said, is to increase its acreage in Nasarawa up to 10,000 hectares, a move he added would bring the company's total investment in the integrated farm and milling facility to over

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N18billion.While inaugurating the rice mill, President Goodluck Jonathan linked the huge investment in the rice producing sector to the enabling policy put in place by his administration, stressing that the policy had led to exponential increment in the number of rice mills from one to 18 over the last three years.Jonathan noted,"The private se for is responding strongly to our rice policy, as the number of rice mills has grown from just one three years ago to 18 today. Our goal of making Nigeria a net exporter of rice will be achieved faster by encouraging large commercial farms that will complement our small-scale farmers. "Large me banished rice farms like Olam 6,000-hectare farm will not only boost food production, but also provide significant opportunities for jobs in rural areas. These mills are producing high quality local rice that meets international standards and competes well with imported rice."Buttressing the President's position, the Minister of Agriculture, Dr. Akinwumi Adesina, noted that the thrust of the policy of government was to make Nigeria a net exporter of rice, rather than being importer.According to him, Olam's investment in commercialized rice far and integrated rice mill would help boost domestic production and milling of international quality grade rice in Nigeria.He therefore declared that,"This is a clear demonstration that our approach of taking agriculture as a business, while enabling the private sector to drive growth of the agriculture sector, is working.

India's monsoon rain deficit narrows, enters active phase Reuters | New Delhi | Published: Jul 17 2014, 16:05 IST

The deficit in India's monsoon rains is expected to narrow next week as the grain bowl in the country's northwest, oilseed areas of central parts and cotton belt of the western region are set to get higher downpours.The monsoon rains were 15 percent below average in the past week, against 41 percent below average rainfall in the previous week, the weather office data showed.On Thursday, the annual rains covered the entire country two days later than schedule. Last year, monsoon covered the country almost a month ahead of schedule, helping grain output hit a record level.Rains are vital to India's farm sector, which accounts for about 14 percent of the country's nearly $2 trillion economy. Two-thirds of its 1.2 billion population live in rural areas.

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The late revival of monsoon after six straight weeks of poor rains should speed up plantings of main summer crops such as rice, corn, cane, soybean and cotton."This active phase is likely to continue for next ten days," said B.P. Yadav, head of the National Weather Forecasting Centre at the India Meteorological Department.Poor rains since the start of the June-September season had raised concerns that India would face its first drought in five years with coverage for most of the main crops slipping below their half way marks.The predicted wet run in monsoon should improve the level of water in reservoirs that is important for drinking purposes, hydro power generation and irrigation

FAO revises downward estimate for 2014 world paddy production

Petchanet Pratruangkrai

The Nation July 18, 2014 1:00 am The FOOD and Agriculture Organisation's Rice Market Monitor (RMM) has slightly lowered its forecast for global paddy production this year from a previous projection, partly because of the slow onset of seasonal rains in Asia.And it warned that the outlook was dependent on the timing and intensity of the looming El Nino weather phenomenon.The FAO report forecasts 2014 production of 750.9 million tonnes, or 500.7 tonnes on a milled basis - 120,000 tonnes less than foreseen in April and just 0.5 per cent above the revised 2013 estimate.Hiroyuki Konuma, FAO assistant director-general and regional representative for Asia and the Pacific, said that if drought in Asia - particularly in India - became serious, Thailand could become the world's largest rice exporter instead of India this year.

Konuma said the FAO estimated that Thailand would export about 9 million tonnes of rice this year, 35 per cent higher than the 6.6 million tonnes in 2013, but would still hold 18.5 million tonnes of stock at the end of this season.India would likely remain the No 1 rice exporter (10 million tonnes) followed by Thailand (9 million tonnes) and Vietnam (7 million

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tonnes) in 2014.The FAO is closely monitoring the drought situation in India.According to the RMM, Asia is anticipated to garner about 679 million tonnes in 2014, a volume only 0.2 per cent - or 1.1 million tonnes - higher than 2013. However, much will depend on seasonal rains, especially over the critical month of July."Such meagre growth reflects expectations of a poor season in India, but also in Indonesia, Nepal, Sri Lanka and Thailand, all of which might face yearon-year contractions," said the FAO report. "By contrast, Bangladesh, mainland China, Myanmar, Pakistan, the Philippines and Vietnam are anticipated to see production expand, often underpinned by additional government support.

"The United Nations agency's 2014 production outlook for Thailand points to a 2-per-cent year-on-year drop to 37.5 million tonnes, or 24.8 million tonnes on a milled basis. This is because of the delayed onset of rain and expectations that farmers will plant less in anticipation of steep reductions in producer prices from those offered under the ousted elected administration's paddy pledging programme.Global rice utilisation in 2014-15 is set to expand 2.2 per cent to a new high of 502.3 million tonnes on a milled basis, sustained mainly by demand for food but also for other uses such as seeds, postharvest losses and non-food industrial usage. Based on the latest projections of population, the global per-person food-rice intake will remain stable at around 57.6 kilograms.The FAO has raised its forecast of global trade in rice this year by about 100,000 tonnes and is now projecting a record 39.4 million tonnes, an outstanding 6-per-cent increase from the depressed 2013 level.

The 2.3-million-tonne expansion would be underpinned by strong import demand, mainly in Asia, where key markets such as Bangladesh, Indonesia and the Philippines are stepping up purchases abroad in an attempt to rebuild inventories and/or quell inflationary pressure.On the export side, Thailand is projected to capture much of the world's import-demand growth this year, reflecting a return of competitiveness following the suspension of the pledging programme and large offloads from state warehouses, according to the RMM. Larger shipments from Thailand would partly displace deliveries by India, which, nonetheless, are envisaged to remain sizeable.

World Rice News 07.17.2014 17.07.2014

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Cambodian farmers are looking toward a new organization to help them get the best prices for their rice, but many are skeptical disparities between farmers and traders can be overcome. Cambodia exported about 380,000 tons of rice in 2014. But economists say it could do a lot better. Poor yields and poor market structures have traditionally hurt the industry, while neighbors Thailand and Vietnam have become international powerhouses in rice export. Before the Cambodian Rice Federation was created, 84 companies and three associations were in operation for the collection, production and export of rice. *** India's rice exports to the U.S. are expected to increase after the U.S. decided to permit shipments containing small levels of a chemical residue, senior Indian rice industry official said Tuesday. The U.S. had rejected the majority of rice shipments from India, the world's top rice exporter, since 2011 because of the presence of the chemical tricyclazole, a widely used pesticide in India that isn't legal for use in the U.S. *** Indonesian agriculture ministry forecast the country's rice outputs (hulled rice production) to be surplus by 4.2 million ton this year despite a decline in production of un-hulled rice, a senior official said here on Wednesday. This is the country's first of its three forecasts of rice production in a year, which expected the production of the un- hulled rice was estimated at 69.871 million ton in 2014, scaling down from 71.28 million ton in 2013, said Haryono, acting director general at the ministry. "With the forecast of outputs of 69.871 million ton un-hulled rice and the number of population 252.165 million people, based on calculation (we) are still surplus of 4.2 million ton," he said at his office. *** Bangladesh is likely to harvest slightly more rice crop in fiscal 2014-15, the US Department of Agriculture (USDA) said in its latest report Total rice output may rise 0.60 percent to 3.48 crore tonnes in the current fiscal year from last year, the agency said. ***

UkrAgroConsult based on data from voacambodia, wsj, shanghaidaily, thedailystar

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South Korea to scrap rice import caps from start of next year: reports BY MEEYOUNG CHO

SEOUL Thu Jul 17, 2014 6:26am EDT

A farmer holds a sickle on a rice field in Gimje, south of Seoul, September 22, 2009. CREDIT: REUTERS/LEE JAE-WON

(Reuters) - South Korea will on Friday announce plans to scrap caps on rice imports from the start of 2015, instead managing shipments into the country using a system of steep tariffs, domestic media including the state Yonhap news agency reported on Thursday.While the possible move is unlikely to spark a shortterm surge in rice imports as hefty tariffs would deter buyers from making overseas purchases, it marks a key psychological shift in a politically sensitive sector and will anger farmers worried it could pave the way towards lower duty down the line. The ministries of trade, agriculture and finance will hold a joint briefing on Friday on the country's rice import policy, spokesmen for the bodies said, declining to give details. Yonhap did not cite sources in its report.The shift has long been expected as a 20-year-old agreement on rice import quotas with the World Trade Organisation expires at the end of 2014, with the nation under pressure to take bigger steps to open its markets for the staple grain."This one-sided, sudden notice without discussing with farmers is the kind of announcement you would expect in a dictatorship," said Park Heong-dae, an official from farmers' group the Korean Peasants League."Some managers of our group are setting up a street strike in front of the government complex to block the (agriculture) minister's announcement tomorrow."The government has held a series of public consultations on the outlook for its rice policy. TARIFF RATES NOT FINALISED The level of any import duty is yet to be finalized, but government officials and industry experts have said it would likely be around 300-500 percent, bringing prices for imported rice in line with local grain.Under the current WTO agreement, South Korea must buy 408,700 tonnes of foreign rice this year, or 9 percent of its demand. The amount that must be purchased abroad has gradually increased from 51,000 tonnes in 1995.China usually accounts for 50-60

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percent of total imports, the United States for 20-30 percent and Thailand for 10-20 percent, government data shows.Of the 159 WTO members, only South Korea and the Philippines have tight controls on rice imports. The Korean government, farmers and civic groups have been closely monitoring negotiations between Manila and WTO members on the future of its restrictions. OPEN DOOR? Opponents led by left-wing farmer groups have said the tariff would eventually fall via free trade deals, opening the door to more imports and hitting domestic growers hard."We have many concerns about whether the duty can really stay at 300-500 percent levels as the government now vows, because the agriculture ministry's roles include not only stabilising production but also helping provide food at low cost for the country's people," a farmer said at a public consultation in June. A free trade agreement between South Korea and the United States took effect in March 15 last year, while Seoul has been in talks with China on a similar deal and also wants to join the Trans-Pacific Partnership trade pact.Officials at the agriculture ministry have said, however, that rice would be excluded from any free trade agreements.South Korea aims to produce 4.15 million tonnes of rice in the crop year that ends in October 2015, down 2 percent from a year earlier as the number of rice fields shrinks, a government official said in April. Its appetite for the grain is estimate at 4.07 million tonnes during the crop year. GLUTINOUS An eventual pick up in imports has the potential to benefit Chinese growers, who produce the glutinous Japonica variety of rice preferred by South Koreans and found in traditional dishes such as bibimpap.But a source at China's agriculture ministry has said the country would focus on its own food security and would not increase rice exports to South Korea even if caps were removed.The United States also exports Japonica, although market participants in South Korea said Chinese rice is closer in flavor to locally grown grain. According to South Korean customs and government data, Thai rice in 2013 fetched an average of $566 per tonne on a cost, insurance and freight (CIF) basis - about a quarter of South Korean rice prices. U.S. rice cost $723 per tonne and Chinese $972, the numbers showed.Meanwhile, some experts noted that any policy change would come against a background of gradually declining rice consumption in Asia's fourth-largest economy, as more Western foods creep into diets.Data from the national statistics office showed the country's per capita rice consumption has dropped nearly a fifth in the last decade."South Korean eating habits are changing, we are seeing a move away from traditional rice consumption," said David Charlwood at rice industry publication Live Rice Index in Singapore.(Reporting by Meeyoung Cho; Additional reporting by Ju-min Park, Christine Kim, Chris Lee in Seoul, Naveen Thukral in Singapore and Niu Shuping in Beijing; Editing by Joseph Radford)

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