Daily Exclusive ORYZA Rice E-Newsletter
February 19,2016 Vol 7,Issue II
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Daily Exclusive ORYZA Rice E-Newsletter Ghana Rice Farmers Complain of Lack of Buyers for Locally Produced Rice 18-Feb-16 Ghana rice farmers are expressing concern that there are no buyers for locally produced rice due to the influx of imported rice, according to Ghana News. They noted that due to this, their incomes are impacted significantly and most of them are forced to quit rice farming. They noted that they spent about 1,500 - 2,000 GHC per acre (around 9 - 13 cents per hectare), and since there are no buyers for their rice, they are forced to find other means of income to settle their bank loans and other debts. They told reporters that they mainly face challenges from bad road network, delayed and improper harvesting, threshing, drying and storage handling facilities. They noted that they face a lot of difficulty in transporting their output to the nearby markets. The price of locally produced paddy declined significantly due to an increase in imported rice. They noted that consumers are of the opinion that local rice is not processed properly, does not taste good and is full of stones and husk. “There is, therefore, the need to create awareness on consumption of the local rice to enable farmers to make financial gains take care of our families and reduce poverty,” said one of the farmers. The Programme Coordinator of Peasant Farmers Association of Ghana (PFAG) urged the government to set up good processing practices such as grading, labelling, milling and good packaging to help consumers to develop appetite for local rice. She also urged the government to improve market information on prices and other related things. However, the government officials say farmers should voice their concerns to the concerned Ministries. “We are not aware of this development therefore the farmers should come together and officially communicate the issue to the ministry, so that we would be able to deal with it,” the Deputy Minister of Food and Agriculture was quoted.
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Daily Exclusive ORYZA Rice E-Newsletter Ghana imports over a half of its annual rice consumption demand and the government is planning to increase rice production by about 20% per annum over the next four years to make Ghana self-sufficient in rice. USDA estimates Ghana rice production at about 300,000 tons (milled basis) in MY 2015-16 (October - September). The U.S. agency expects Ghana to import 600,000 tons of rice in 2016 to meet consumption needs of around 930,000 tons.
Vietnam Rice Sellers Increase Some of Their Quotes Today; Other Asia Rice Quotes Unchanged Feb 18, 2016
Vietnam rice sellers increased their quotes for 5% broken rice by about $5 per ton to around $350-$360 per ton today. Other Asia rice sellers kept their quotes unchanged today. 5% Broken Rice Thailand 5% rice is indicated at around $360 - $370 per ton, about $10 per ton premium on Vietnam 5% rice shown at around $350 - $360 per ton. India 5% rice is indicated at around $360 - $370 per ton, about $20 per ton premium on Pakistan 5% rice shown at around $340 - $350 per ton. 25% Broken Rice Thailand 25% rice is indicated at around $345 - $355 per ton, about $10 per ton premium on Vietnam 25% rice shown at around $335- $345 per ton. India 25% rice is indicated at around $325 - $335 per ton, about $15 per ton premium on Pakistan 25% rice shown at around $310 $320 per ton. Parboiled Rice Thailand parboiled rice is indicated at around $370 - $380 per ton. India parboiled rice is indicated at around $350 - $360 per ton, about $55 per ton discount to Pakistan parboiled rice last shown at around $405 - $415 per ton. 100% Broken Rice Thailand broken rice, A1 Super is indicated at around $325 - $335 per ton, about $5 per ton premium on Vietnam 100% broken rice shown at around $320 - $330 per ton. India's 100% broken rice is shown at around $260 - $270 per ton, about $30 per ton discount to Pakistan broken sortexed rice shown at around $290 - $300 per ton.
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Daily Exclusive ORYZA Rice E-Newsletter
Rice Exporters to U.S. Must Register with India’s Plant Quarantine Organization, Says APEDA Feb 18, 2016
The Agricultural and Processed Food Products Export Development Authority (APEDA) has made it mandatory for all Indian rice mills/processing units exporting basmati rice to the U.S. to register with India's plant quarantine organization, National Plant Protection Organization (NPPO), to ensure quality rice exports to the U.S., according to Business Standard. The APEDA has issued a warning that basmati rice exports to the U.S. would be allowed only from rice mills/processing units registered with NPPO effective April 1, 2016. The APEDA reportedly noted that the NPPO would audit the plants of registered exporters before issuing phyto-sanitary certificate for export of rice to the U.S. Some exporters noted that the directive is to reduce rejections of Indian basmati rice consignments by the U.S. phyto-sanitary authority. “This is perhaps an attempt to regulate the market as consignments shipped to the US develop some issues related to pests or any other things. Mandatory registration with NPPO will filter out opportunistic exporters, while genuine ones would continue. This will help control the rate of rejection of consignments also,” said one of the top basmati rice exporters in India. The U.S. has sought such registration after it had detected cabinet beetle in basmati rice of Indian origin in 2011-12. Trade sources told reporters that about 10-15% of basmati rice consignments from India get rejected every year. Though some exporters expressed concern that basmati exports to the U.S. would be impacted due to the directive, an APEDA official ruled out such concerns. “Around 95 per cent of exporters have already got registered with NPPO with basmati rice shipment happening in very organised manner. Therefore, it his highly unlikely there will be any impact in terms of basmati rice exports to the US with 10 per variation being common,” he was quoted. The U.S. accounts for about 5% of India's total basmati rice exports. India exports about 100,000 tons of basmati and 25,000 tons of non-basmati rice to the U.S. every year. The Executive Director of the All India Rice Exporters Association (AIREA) noted that the development would prompt basmati rice exports to China as well, as China had also in the past sought a standard operating system of basmati rice exporters in India.
Government of Angola Sets Up Body to Monitor Rice, Other Food Prices 4
Daily Exclusive ORYZA Rice E-Newsletter The government of Angola has set up the National Council of Pricing to monitor prices of rice and other food items such as sugar, milk, beef, fish and corn, which are subject to fixed prices, amid increasing costs and reports of shortages of some food items, Bloomberg quoted the government Gazette. It will in total monitor prices of 32 items, including transport fees, port & airport tariffs. The government will usually review the prices of these items annually. As of February 16, 2016, Angola has adequate food reserves, according to the Radio Nacional De Angola. Angola is currently facing declining foreign exchange reserves due to declining oil prices as crude oil accounts for about 90% of its export
Indian Court to Deal with Central State Madhya Pradesh’s Basmati GI Plea Feb 18, 2016
The Agricultural and Processed Food Products Export Development Authority (APEDA) applied with the GI Registry seeking exclusive (commercial) use of the basmati tag for rice grown within the boundaries of Indo-Gangetic plain (including the Punjab, Haryana, (western) Uttar Pradesh, Uttarakhand, Delhi and Jammu and Kashmir). India's central state Madhya Pradesh (MP) sought for its inclusion in the GI tag application. When the Agriculture and Commerce Ministries as well as the APEDA opposed the state's plea, it filed an application with the IPAB. On February 5, 2016, the IPAB ordered the Chennai-based GI registry to grant GI certificate to Indian basmati rice grown in Indo-Gangetic plains based on APEDA"s application, and sent back the MP's petition to the Chennai-Registry asking it to pass an order within six months after hearing to related parties. The Madhya Pradesh governemnt challenged the IPAB decision in the Madras High Court. The Counsel for MP requested for the proceedings to be carried out in the Court instead of the Assistant Registrar of GI (ARGI) office. The Court reportedly adjourned the case to April 5, 2016 and directed the concerned authorities to file their replies by them. In the meantime, the Court directed the APEDA not to take any "precipitating action" over basmati rice produce from MP until a decision is taken on a petition it received from the central Indian state, according to Business Standard. The GI Registry reportedly granted the GI certificate to Indian basmati rice grown in IndoGangetic Plains and APEDA has been recognized as the sole custodian for it. The certificate will bar other countries and companies from using the 'basmati' tag.
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Daily Exclusive ORYZA Rice E-Newsletter EC May Propose to Temporarily Allow Use of Tricyclazole Fungicide in EU Feb 18, 2016
The European Commission (EC) will soon present a proposal authorizing the temporary inclusion of tricyclazole fungicide among those authorized in agriculture , used to contain the rice blast disease, according to local sources. The European Standing Committee on Plants, Animals, Food and Feed (PAFF), which examined the draft regulation submitted by the EU opposing the authorization of the use of the tricyclazole fungicide, in October 2015 could not block its use in the EU due to a lack of qualified majority. The European Food Safety Authority (EFSA) also noted that the present tests conducted on the tricyclazole fungicide are not sufficient to block its use in the EU. However, it said it cannot comment on the extent of the maximum residue limits (MRLs) of tricyclazole in imported rice, as it does not have enough data to determine all the effects on humans and the environment, as required by Reg. 1107 / 2009. The fungicide is used around the world and to forbid its use in Europe is said to result in the blocking of imports of Asian rice
Government of Myanmar Urged to Prepare Rice Reserves This Year to Make Up for Likely Production Shortfalls Feb 18, 2016
The officials of the Myanmar Rice Federation (MRF) are urging the government to prepare rice reserves in anticipation of drought conditions in the country, according to Irrawaddy News. The Vice-Chairman of the MRF noted that due to likely extended dry conditions and water shortages, they are expecting rice shortages and increase in prices. Since the country's annual paddy harvest runs from around June-July until September-October, the government should consider storing rice between April and May, he said. Weather specialists are reportedly forecasting dry weather conditions during the first six months of this year. They are predicting temperatures above 40 degrees Celsius in major rice-growing regions, including Magwe, Pegu and Irrawaddy divisions. One of the former weather forecasters in the country warned that the country needs to prepare for some of the highest temperatures yet this summer.
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Daily Exclusive ORYZA Rice E-Newsletter Local sources noted that the government may start procuring rice for reserves. They noted that the Ministry of Commerce had prepared over 40 warehouses for the storage of rice in Rangoon, Mandalay and Irrawaddy divisions, as well as Arakan State.
Ghana Rice Farmers Complain of Lack of Buyers for Locally Produced Rice Feb 18, 2016
Ghana rice farmers are expressing concern that there are no buyers for locally produced rice due to the influx of imported rice, according to Ghana News. They noted that due to this, their incomes are impacted significantly and most of them are forced to quit rice farming. They noted that they spent about 1,500 - 2,000 GHC per acre (around 9 - 13 cents per hectare), and since there are no buyers for their rice, they are forced to find other means of income to settle their bank loans and other debts. They told reporters that they mainly face challenges from bad road network, delayed and improper harvesting, threshing, drying and storage handling facilities. They noted that they face a lot of difficulty in transporting their output to the nearby markets. The price of locally produced paddy declined significantly due to an increase in imported rice. They noted that consumers are of the opinion that local rice is not processed properly, does not taste good and is full of stones and husk. “There is, therefore, the need to create awareness on consumption of the local rice to enable farmers to make financial gains take care of our families and reduce poverty,” said one of the farmers. The Programme Coordinator of Peasant Farmers Association of Ghana (PFAG) urged the government to set up good processing practices such as grading, labelling, milling and good packaging to help consumers to develop appetite for local rice. She also urged the government to improve market information on prices and other related things. However, the government officials say farmers should voice their concerns to the concerned Ministries. “We are not aware of this development therefore the farmers should come together and officially communicate the issue to the ministry, so that we would be able to deal with it,” the Deputy Minister of Food and Agriculture was quoted.
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Daily Exclusive ORYZA Rice E-Newsletter Ghana imports over a half of its annual rice consumption demand and the government is planning to increase rice production by about 20% per annum over the next four years to make Ghana self-sufficient in rice. USDA estimates Ghana rice production at about 300,000 tons (milled basis) in MY 2015-16 (October - September). The U.S. agency expects Ghana to import 600,000 tons of rice in 2016 to meet consumption needs of around 930,000 tons.
Oryza U.S. Rough Rice Recap - Prices Oscillate with Futures; Farmers Waiting on Iraq Feb 19, 2016
The U.S. cash market was slightly weaker today with offers from resellers oscillating with the futures market as farmers remain on the sidelines. Analysts note that many farmers are waiting to see the results of the latest Iraqi tender before pricing the rest of their crop hoping that they buy a large chunk from the U.S. leading to higher prices.
Oryza U.S. Rough Rice Recap - Prices Oscillate with Futures; Farmers Waiting on Iraq Feb 19, 2016
The U.S. cash market was slightly weaker today with offers from resellers oscillating with the futures market as farmers remain on the sidelines. Analysts note that many farmers are waiting to see the results of the latest Iraqi tender before pricing the rest of their crop hoping that they buy a large chunk from the U.S. leading to higher prices.
Government of China Plans to Clear Old Rice Stocks from Reserves Feb 18, 2016
The government of China is planning to clear the old rice and corn stocks and has asked local grains administrations to recommend potential buyers of the stocks, Bloomberg quoted reliable sources. Sources told reporters that ethanol, feed and starch producers are some potential buyers. 8
Daily Exclusive ORYZA Rice E-Newsletter Central government agencies are understood to be finalizing volumes and prices for sales. The previous attempt by the government to sell rice stocks from reserves did not attract higher number of bidders due to high prices and quality concerns.
Thailand 2015-16 Secondary Rice Crop Acreage Declines by Half Due to Drought, Says Minister Feb 18, 2016
Thailand's 2015-16 secondary rice crop (January - June) acreage declined by about half to around 800,000 hectares due to extending drought conditions, Bloomberg quotes Minister for Agriculture and Cooperatives. Water levels in the country's dams stood at around 3.2 billion cubic meters as of February 15, 2016 compared to around 6.8 cubic meters on November 1, 2015. Authorities have been discouraging rice farmers to avoid planting for the secondary rice crop due to insufficient water supplies. Accordingly, the country's rice output from the secondary crop is expected to drop significantly. The Minister told reporters that plans for the country’s 2015-16 main rice crop (May December) will be complete by around April. In a recent report, the USDA Post forecast Thailand's MY 2015-16 (January - December 2016) paddy rice production at around 24 million tons, down from last year's 29.4 million tons. It forecast Thai off-season paddy production to decline about 57% y/y to around 3.1 million tons.
Thai Rice Pledging Scheme Lacked Proper Accounting and Auditing Systems, Said Witnesses Feb 18, 2016
Witnesses who were present at the Court on February 17, 2016, to testify against the former Prime Minister told judges that the scheme lacked appropriate accounting system leading to loopholes in disbursements of the state budget, according to local sources. The Chairwoman of the Auditing Committee under the Federation of Accounting Professions said that the accounting of the scheme failed to adopt the double entry system, which clearly shows all the expenses and debts. The scheme also lacked periodical accounting procedures and so auditors could not get a clear picture of its financial status at any given time, she said. The auditor also noted that accounts were prepared by some state agencies concerned with the 9
Daily Exclusive ORYZA Rice E-Newsletter scheme such as the Bank for Agriculture and Agricultural Cooperatives (BAAC) or Public Warehouse Organisation (PWO). She also noted that some of the rice stockpiles pledged under the scheme were lost and the depreciation cost of the stockpiled rice reached about 34 billion baht (around $956 million). A National Anti-Corruption Commission (NACC) member, who previously chaired a subcommittee auditing the rice-pledging scheme under the Yingluck administration, noted that the previous government misspent money drawn from rice sales. This had shouldered a lot of burden on Finance Ministry, she said. Meanwhile, the former Premier told reporters that she would continue her legal fight in the rice pledging case. She stated that though problems were at the execution level, she was being targeted. "I have the duty and responsibility to fight on. All eyes are on me. I assure you I've never thought of fleeing," she was quoted. The former Prime Minister is facing charges of dereliction of duty in preventing multi-billion dollar graft in running the controversial rice pledging scheme introduced by her government in October 2011. The scheme is estimated to have caused losses to the extent of about 500 billion baht (around $14 billion) to the government. If proved guilty in the present case, she may have to face imprisonment for ten years.
Salt Water Intrusion to Affect Vietnam's Rice Output and Exports, Say Experts Feb 18, 2016
Experts have warned that increasing salt water intrusion in Vietnam is likely to impact the nation's rice production and exports significantly, Bloomberg quoted local sources. Speaking at a meeting in Hanoi, the former Director of The Institute of Agricultural Science for Southern Vietnam noted that the increased salt water intrusion is partly due to dams upstream built by China and Laos. He warned that the situation is affecting Vietnam's Mekong Delta and will be worsening. He noted that due to a decline in water levels in rivers, about 339,200 hectares of paddy are likely to be affected. He added that rice plants can survive in water with up to 2 grams of salt per litre, but this year, salinity has reached up to 10 grams per litre. More than 200,000 tons of rice worth at least 1 trillion Vietnamese dong (around $44.64 million) has already been damaged, he said.The Deputy Director of the National Centre for Hydro-Meteorological Forecasting noted that: "saltwater has intruded 90 kilometres inland in some places due to low river levels, reaching places it had not for the last 90 years."Agriculture Ministry officials noted that this year's saltwater intrusion will 10
Daily Exclusive ORYZA Rice E-Newsletter affect around a fifth of crops across the Mekong Delta. But, experts noted that though salt water intrusion may not affect food security, it is likely to impact the country's exports.
Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Fall Back below $11.00/cwt as Outside Markets Fail to Provide Support Feb 19, 2016
Chicago rough rice futures for Mar delivery settled 18 cents per cwt (about $4 per ton) lower at $10.860 per cwt (about $239 per ton). The other grains finished the day lower; Soybeans closed about 0.3% lower at $8.8275 per bushel; wheat finished about 1.3% lower at $4.6850 per bushel, and corn finished the day about 0.5% lower at $3.6975 per bushel. U.S. stocks traded mostly lower Thursday, stabilizing after their largest three-day gain since August, as investors eyed oil prices and corporate news. U.S. crude oil futures came off session highs and struggled to hold gains after weekly crude inventories rose by 2.1 million barrels. WTI traded flat around $30.65 a barrel as of 1:55 p.m. ET. As of intraday trade Thursday, the major U.S. averages were on track for weekly gains of about 3% or more. European stocks came off highs, while in Asia the Nikkei 225 and Hang Seng surged more than 2%. The Shanghai composite was a touch lower but held gains of 3.6% for the week so far. In economic news Thursday, weekly jobless claims came in at 262,000. The Philly Fed index came in at minus 2.8 for February. The index has held in negative territory since September. In afternoon trade, the Dow Jones industrial average declined 33 points, or 0.2%, to 16,420. The S&P 500 traded down 6 points, or 0.36%, to 1,919, with financials leading eight sectors lower and utilities and telecommunications advancing. The Nasdaq composite traded down 35 points, or 0.8%, to 4,498. Gold is seen trading about 1.7% higher, crude oil is seen trading about 0.1% higher, and the U.S. dollar is seen trading about 0.2% higher at about 1:30pm Chicago time. Wednesday, there were 1,107 contracts traded, down from 2,658 contracts traded on Tuesday. Open interest – the number of contracts outstanding – on Wednesday decreased by 18 contracts to 13,133
Global Rice Quotes February 19th, 2016 Long grain white rice - high quality Thailand 100% B grade 365-375 Vietnam 5% broken 345-355 India 5% broken 360-370 Pakistan 5% broken 340-350 Myanmar 5% broken 415-425 Cambodia 5% broken 425-435 U.S. 4% broken 460-470 Uruguay 5% broken 440-450 Argentina 5% broken 430-440
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Daily Exclusive ORYZA Rice E-Newsletter Long grain white rice - low quality Thailand 25% broken 345-355 ↔ Vietnam 25% broken 335-345 ↔ Pakistan 25% broken 305-315 ↓ Cambodia 25% broken 405-415 India 25% broken 325-335 ↔ U.S. 15% broken (sacked) 440-450
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Long grain parboiled rice Thailand parboiled 100% stxd 365-375 Pakistan parboiled 5% broken stxd NQ ↔ India parboiled 5% broken stxd 350-360 U.S. parboiled 4% broken 480-490 ↔ Brazil parboiled 5% broken 520-530 ↔ Uruguay parboiled 5% broken NQ ↔ Long grain fragrant rice Thailand Hommali 92% 680-690 ↔ Vietnam Jasmine 410-420 ↓ India basmati 2% broken NQ ↔ Pakistan basmati 2% broken NQ ↔ Cambodia Phka Mails 750-760 ↔ Brokens Thailand A1 Super 325-335 ↔ Vietnam 100% broken 320-330 Pakistan 100% broken stxd 285-295 Cambodia A1 Super 345-355 ↔ India 100% broken stxd 260-270 Egypt medium grain brokens NQ ↔ U.S. pet food 280-290 ↔ Brazil half grain NQ ↔
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All prices USD per ton, FOB vessel, oryza.com Exclusive News have been shared with written permission of ORYZA.com with thanks
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