30th July,2014
Daily Global Rice E-Newsletter by Riceplus Magazine Senate Subcommittee Examines South Korea FTA and Discusses Future Trade Agreements California grower Michael Rue (third from right) braves the bright lights at Senate trade hearing.WASHINGTON, DC -The Senate Finance Committee, Subcommittee on Trade held a hearing yesterday on the U.S.-Korea Free Trade Agreement (KORUS): Lessons Learned Two Years Later. Chairwoman Debbie Stabenow (D-MI) cautioned, "We hope that future agreements will not cause any commodity to be excluded." Senator Rob Portman (R-OH) echoed that sentiment saying, "Exclusion was a mistake and we hope that future agreements won't repeat that mistake."Vice Chairman of the USA Rice Federation International Trade Policy Committee and California producer Michael Rue testified before the subcommittee. In discussing the rice industry perspective of the Korea FTA, Rue said, "For the U.S. rice industry, this is the key lesson learned from KORUS - product exclusions have no place in U.S. trade policy. Not only do they deny access improvements for U.S agriculture, they poison the water for future trade agreements as other countries with politically sensitive commodities seek to gain similar exemptions."Rue also mentioned the ongoing Trans Pacific Partnership (TPP) negotiations and specifically, the talks over access to agriculture goods and autos with Japan. He noted, "Japan must show substantially more flexibility before we are able to accept what is on the table for U.S. rice. If Japan cannot move forward on market access on the sensitive commodities at this time, then the other TPP partners should move forward without Japan."Illustrating the broad reach of trade agreements and the impact they have on all segments of the economy, the other groups offering testimony were The Ford Motor Company, National Milk Producers Federation, and Qualcomm.
Contact: Lauren Echols, (703) 236-1440
ARkansas Rice Expo Friday in Stuttgart
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It has a serious side that shows the business end of rice production, a consumer side that includes living well, cooking demonstrations, the Rice Recipe Contest finals, gardening seminars and the fun side that offers youth and adults chances to show off farm and recreational skills for prizes. By Staff Reports Posted Jul. 29, 2014 @ 5:12 pm STUTTGART — The annual Arkansas Rice Expo has been expanded and improved for the enjoyment of everyone. The Expo will be held at the Grand Prairie Center in Stuttgart on Friday, with registration and exhibits open at 8 a.m. The program will conclude with a catered catfish lunch at 12:30 p.m.Shuttle buses will transport participants to the Rice Research & Extension Center for the traditional research field tours beginning at 8:30 a.m. Virtual field tours will be conducted in the Grand Prairie Center, along with several ag seminars and exhibits. Field tours will feature rice breeding updates, weed control technologies, irrigation and insect management, N-Star Program and agronomics. Ag breakout sessions will be conducted in the Grand Prairie Center from 9–11 a.m. to discuss the Arkansas Water Plan, increasing irrigation efficiency, Sprayer Clean Up 101, the Farm Bill decision making process, and market outlook. At 11:45 a.m. Dr. Mark Cochran, vice president for agriculture with the University of Arkansas, will give a Division of Ag Update followed by an agriculture expert panel insight discussion on the 2014 Farm Bill at 11:55 a.m.The Expo offers something for the entire family with numerous other activities as well. It has a serious side that shows the business end of rice production, a consumer side that includes living well, cooking demonstrations, the Rice Recipe Contest finals, gardening seminars and the fun side that offers youth and adults chances to show off farm and recreational skills for prizes. Extension plant pathologists will be available to diagnose plant samples. The Horticulture Seminars will be held in Salon A from 9 a.m. to noon. Janet Carson will speak on home vegetable production at 9:30 a.m.; Dan Chapman will discuss home fruit production at 10:30 a.m.; and Carson will discuss home herb gardens at 11:30 a.m. A new feature this year will be the Locally Grown Farmers Market Tent. Vendors will be set up selling fresh farm produce, baked products and other hand-crafted items. Food preservation demonstrations will be conducted every 30 minutes from 9–11:30 a.m. in the tent. There will also be a Rice Tabletop Centerpiece Contest with the completed entries displayed on the luncheon tables. This program is open to all eligible persons regardless of race, color, national origin, religion, gender, age, disability, marital or veteran status, or any other legally protected status, and is an Affirmative Action/Equal Opportunity Employer. For more information on rice production or the 2014 Arkansas Rice Expo, visit www.uaex.edu/rice-expo/ or contact the Arkansas County Extension Office at (870) 946-3231 or (870) 673-2346
California growers converting rice straw to cattle feed Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874
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Published:July 29, 2014 3:41PM Growers and University of California researchers have been working at converting rice straw left over from harvest into feed for livestock, which they say could be valuable to ranchers amid the drought.WILLOWS, Calif. — Some rice growers and University of California researchers say they have a solution for livestock producers confronted with feed shortages because of the drought.The growers have been converting straw left over from harvest into ―strawlage,‖ a moist feed that UC Cooperative Extension scientists say is on a par with a low-quality alfalfa.Growers have plenty of the straw laying around after harvest now that the industry has stopped burning because of air quality concerns. With the drought leaving ranchers desperate for inexpensive feed, growers believe they‘ve found a way to put the straw to good use.Roy Sandoval, a Colusa County, Calif., rice and alfalfa grower, says he‘s been making rice strawlage for about seven years. He says cows love it.―It‘s silage — that‘s what it is,‖ he said. ―It‘s sweet.‖Sandoval was one of about 50 growers who attended a UCCE-sponsored workshop here on July 29 to either learn or teach their neighbors about the practice.Extension advisors coined the term ―strawlage‖ as a cross between straw and silage, cautioning that the feed is of lesser quality than true silage. And while they‘ve been experimenting with making it since 1999, there are still many unknowns, farm advisor Glenn Nader said.But Nader hopes to learn more this fall as more growers seek to make a little extra money while helping to feed nearby cows. ―There‘s going to be a significant problem with feed coming into this winter and rice strawlage may be an answer,‖ said Peter Robinson, a UC-Davis animal science specialist who‘s been helping with the research.To be certain, turning the straw into feed can be labor-intensive and tricky. Because dried-out straw loses its nutritional value, the straw has to be baled immediately while it‘s still moist, and growers cover the stacks with huge tarps to retain the moisture until it‘s delivered and fed to cattle. Mold can be controlled by applying proprionic acid or a urea-and-nitrate solution.The quality of feed can vary, too, depending on rice variety, nitrogen management and other factors, researchers said. Having turned black and a little slimy, the strawlage isn‘t aesthetically pleasing. But most cows apparently don‘t care.―The cattle do eat this really well,‖ rancher Herb Holzaphel said during the workshop. ―It didn‘t feed as good as silage, but it fed better than normal straw.‖Rancher Henry Smith said he‘s tried lots of different feeds in his cattle operation, including almond hulls. He said growers are still learning how to prepare
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strawlage, but it‘s worth the effort.―I think we‘re just getting started at knowing what we should do and not do,‖ he said. ―I say keep going … It really makes good feed if you luck out and do it right.‖ Online University of California Rice Project: ucanr.edu/sites/UCRiceProject/ TIM HEARDEN/CAPITAL PRESS
University of California Cooperative Extension farm advisor Glenn Nader (right) discusses the features of a hay baler during a workshop July 29 in Willows, Calif. The workshop focused on turning rice straw into a feed for livestock.
Cambodia Looks to Put Its Rice on the World’s Plate By LUKE HUNTJULY 29, 2014 KBAL GOH, Cambodia — For as long as Cambodian rice farmers can remember, their product has had an unsavory reputation. Tough, dirty and unmilled, it was impossible to cook evenly, and even farmers traded it as pig feed in exchange for cash or better-quality rice from Vietnam or Thailand.Even while Cambodia recovered from decades of war and other areas of agriculture flourished, rice production languished, a national embarrassment in a country where 80 percent of the population works in paddies. In 2009, Cambodia exported just 12,613 tons of milled rice, putting it at the bottom of the global heap.But as Thailand, one of the world‘s largest rice exporters, struggles with political instability, Cambodian exports have improved along with their quality; the rice can now be found in high-end grocery markets in the West. Last year, Cambodia was the world‘s fifth-largest exporter of rice and the second-biggest exporter of premium jasmine rice. Sales of milled rice abroad reached 378,856 tons.No one knows this transformation better than Bun Chan Tony. His six hectares, or about 15 acres, earn him $6,000 a year, substantially more than in the past.―When the rains come and there is a lot of water, we plant rice. When it‘s drier, we plant corn, but rice is a staple and people must have it,‖ said Mr. Tony, although he said he would prefer to grow more corn than rice, which he says requires more work.Modern milling systems adopted in the last few years have helped elevate Cambodian rice to the international market. And locally milled rice has also received an unexpected lift from Thailand, where rice hoarding and huge government subsidies threatened to produce an enormous shortfall of rice on global markets.Cambodia hopes to make the most of the opportunity, setting a target of one million tons of milled rice for export by the end of 2015. It already has the milling capacity, and customs fees on rice exports have been scrapped. In a bid to reach that ambitious target, the rice federation was formed in May. It merged three industry bodies into one and elected Sok Puthyvuth as president. Mr. Puthyvuth, the son of Cambodia‘s deputy prime minister, Sok An, said the move had eliminated some costly competition, defined the industry‘s goals more clearly and created a unified voice for lobbying.―The plan that we are preparing is to focus on the whole chain. It means that we are looking at how much farmers will get, how much millers will benefit, and how much exporters will get, based on market prices,‖ he said.Still, there are formidable obstacles to reaching the new target.For one, the country must tap new markets, like the United
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States, China and Africa. Just 1,780 tons have been exported to the United States so far this year.Mr. Puthyvuth also said that quality needed to improve further, as do relationships among growers, millers and exporters. Before the rice federation was formed, the sectors were divided into three industry bodies. The government has lamented that only 40 percent of Cambodia‘s nine million farmers can produce rice suitable for export. Too many farmers still use chemical pesticides with cheap, poor-quality seeds — practices the government is working to change through education.Continue reading the main storyContinue reading the main story―Trust within all sectors — from farmers to millers, and exporters — is not strong enough yet,‖ he said. ―We have to figure out ways to make them trust each other. This is the main obstacle we are facing. When they have quality rice, they receive a good price.‖ Low-end, long-grain white rice sells for $250 to $290 a ton; high-quality jasmine rice can go for as much as $410 a ton.The rice industry also faces opposition in crucial markets. Italy wants the European Union to impose an import tariff on Cambodian rice, arguing that Italian-produced rice cannot compete on price and that local jobs are being lost as a result. Mr. Puthyvuth added that although the Thai subsidy program created more demand for Cambodian rice, it also caused the price to fluctuate dangerously.―Thailand has dropped their prices substantially in order to export rice from their warehouses, and it affects our exports. Our members could not sell their milled rice,‖ he said.But the changing regional market is also creating opportunity for Cambodians. In Europe, rice imports are expected to be 99 percent pure, containing few rice grains of any variety other than what is on the label, but many Cambodian farmers are still reluctant to buy expensive seeds. Instead, they prefer to replant whatever has been growing in their paddies, saying it is easier to produce feed for Vietnamese livestock than to grow rice that can make a decent pudding.This has created a niche market for other producers focused on high-quality rice and geared toward socially and environmentally aware consumers in the West. One of those growers, Ibis Rice, is trying to improve the traditional perceptions of Cambodian crops. Although the company is not yet exporting, its methods illustrate how growers are working to improve quality.An Ibis spokeswoman, Vanessa Ferrer, said the company, certified by the Wildlife Conservation Society, was formed in 2009 as an environmentally friendly producer working with rice-growing villagers who shared a desire to protect local wetlands, a natural habitat for the ibis, a migratory bird.She said annual demand could be as high as 4,000 tons. But sales have been restricted to just 400 tons, with production curtailed by the conditions of the conservation society. The current harvest of 435 tons represents a 54 percent increase from the 2012-13 growing season, figures show. Annual sales have tripled to about $121,000 in the last four years.―I‘ve had to tell so many people ‗I‘m sorry but we can‘t,' ‖ Ms. Ferrer said. ―We cannot give them enough rice. We‘re not quite there yet. Maybe in four to five years.‖Mr. Tony said he
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was trying to improve the quality of his rice, avoiding chemicals and paying top dollar for high-end seeds, up to $3.50 a kilogram.
But he also stressed that many of his problems stemmed from a government that had yet to deliver on creating greater access to markets and higher prices. And many farmers cannot read, live in remote areas and rely on middlemen, often strangers, who buy the rice for milling and export, dictating terms and prices.
―They won‘t tell us how much of our rice they sell, or how much they make,‖ he said.
Scientists decode African rice genome to tackle food crisis Last Updated: Wednesday, July 30, 2014, 12:45
Washington: Researchers have sequenced the complete genome of African rice in a bid to help solve global hunger challenges. The researchers led by the University of Arizona found the genetic information which will enhance scientists' and agriculturalists' understanding of the growing patterns of African rice, as well as enable the development of new rice varieties to eradicate food crisis. Lead researcher Rod A. Wing, director of the Arizona Genomics Institute said that rice is the most important food crop as it feeds half the world, making it the key to solving the "9 billion-people question", which refers to predictions that the world's population will increase to more than 9 billion people by 2050, with many people living in areas where access to food will be extremely scarce. Judith Carney, author of 'Black Rice' which describes the historical importance of African rice, brought to the United States during the period of transatlantic slavery, said that African rice is once more at the forefront of cultivation strategies that aim to confront climate change and food availability challenges.The paper, 'The genome sequence of African rice (Oryza glaberrima) and evidence for independent domestication' was published online in Nature Genetics. First Published: Wednesday, July 30, 2014, 12:44
Group chides Aquino for rice-import plan 29 Jul 2014 Written by Alladin S. Diega / Correspondent THE Rice Watch and Action Network (R1) expressed ―strong concern‖ over the President Aquino‘s announcement in his fifth State of the Nation Address (Sona) of more rice importation.―To import more rice in order to strengthen local stocks
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and protect consumers from unscrupulous traders is a dangerous model. Announcing this among the policy directions in his Sona is like saying the NFA [National Food Authority] will be relying on imports for its buffer stock,‖ R1 convener Aurora Regalado said in a text message.According to Regalado, ―instead of espousing trade liberalization, the President should be harnessing his power to influence palay price support to truly serve the local farmers who are his ―bosses. ‘‖On Monday President Aquino announced that the NFA Council has approved a standby volume of 500,000 metric tons (MT) of rice as part of the grains agency‘s preparation for the effects of calamities and help temper the rising prices of the staple.The volume is on top of the 500,000 MT of rice to be imported by the state grain agency next month, and the 800,000 MT imported from Vietnam in April, bringing country‘s rice imports to a four-year high of 1.3 million metric tons (MMT).Regalado said the standby volume is ready to be acquired at any time, through a repeat order or an open bidding.With the import tack, the administration may bring the rice imports closer to 1.8 MMT, reminiscent of the 2009 level, she added.Presidential Assistant for Food Security and Agricultural Modernization Francis Pangilinan, concurrently the NFA Council chairman, said the standby volume is necessary to ensure the stable supply of affordable rice.―The standby authority covers up to 500,000MT…but it may or may not be exercised. Assuming it is, it may be less than the ceiling,‖ Pangilinan said. He added: ―The decision to import is to address the current need to ensure steady supply and is not connected with our desire to attain self-sufficiency; that goal will continue.‖Pangilinan earlier directed the NFA increase daily rice stock to 10,000 MT from 6,000 MT to cushion the effects of increase in the price of rice.The NFA sells regular milled rice for P27 per kilo, while the well-milled rice costs P32 per kilo.In his Sona on Monday, Mr. Aquino said that flooding the markets with cheap NFA rice would also help force unscrupulous traders to release their stocks.The NFA rice is cheaper compared to commercial rice, which has shot up to an average of P45 per kilo last month. ―Rice could only be stored for a maximum of six months. Once the additional imports, and more government rice distributed to markets, these unscrupulous traders will be forced to release their stocks or face financial losses,‖ Mr. Aquino said.However, latest data from the Philippine Statistics Authority-Bureau of Agricultural Statistics shows that the retail prices of well-milled rice averaged P43.64 per kilo, or 0.25 percent higher than the previous week, and 18.94 percent higher than a year ago.Agriculture Secretary Proceso J. Alcala said his department continues to pursue the government‘s rice self-sufficiency bid, which will ensure food security for the country‘s growing population, which recently has reached the 100-million mark.―Our marching order from President Aquino is to be rice self-sufficient. We are striving to hit that goal,‖ Alcala said, adding that it is necessary for the country to hit that goal ―to avoid being held ransom by rice-exporting countries.‖―At 96-percent sufficiency, I can say that we are on the right track. Our goal now, along with becoming 100-percent sufficient in rice, is to make our palay farmers more globally competitive by lowering production costs,‖ Alcala added.
NFA mulls 500,000-MT add’l rice imports By Czeriza Valencia (The Philippine Star) | Updated July 30, 2014 - 12:00am
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MANILA, Philippines - The Aquino government intends to increase imports of cheap rice to continuously drive down prices, but would also continue programs to strengthen the production capability of farmers, Presidential Assistant for Food Security and Agricultural Modernization Francis Pangilinan said late Monday.Pangilinan confirmed President Aquino‘s pronouncement during his fifth state of the nation address of a standby authority for the National Food Administration for the importation of an additional 500,000 metric tons (MT) of rice for this year if needed.If exercised, the rice importation allowed by the standby authority would be made on top of the 800,000 MT imported early this year and the 500,000 MT programmed for open bidding next month. Pangilinan said the authority for additional importation – which was taken up during the last NFA council meeting held on July 22 – is valid for this year only.―The standby authority covers up to 500,000 MT but it may or may not be exercised. Assuming it is exercised, it may be less than the ceiling of 500,000 MT,‖ Pangilinan said.The additional rice importation may be carried out depending on supply conditions as affected by typhoons, the expected occurrence of a dry spell later this year, and the production level in the fourth quarter.Pangilinan assured, though, that the government is not abandoning its goal to attain self-sufficiency in rice and other food staples.―The decision to import is to address the current need to ensure steady supply and is not connected with our desire to attain self sufficiency. That goal will continue,‖ he said.President Aquino, in his State of the Nation address (SONA) Monday, acknowledged the prevalence of ―greedy rice hoarders‖ who stockpile supplies for release to the market when prices are high.―We will not let this pass. Perhaps they think they are being clever, but the govenrment‘s plan of action will prove the opposite. Our immediate solution: import more rice, supply it to the markets, reduce the prices and keep them at a reasonable level, and ultimately, drive those who took advantage of the Filipino people into financial ruin,‖ said Aquino.This move is expected to force rice hoaders to immediately release their stockpile.―To these hoarders, if a showdown is what you want, by all means, take on the government. Just remember: it only take six months before the stock you have hoarded in your warehouses begins to rot. When we flood the market with this imported rice, you will surely go bust,‖ said Aquino.The President said government employees suspected of collaborating with unscrupulous traders are now being investigated for the filing of appropriate charges. Aquino said that as the government cracks down on unscrupulous rice trading, programs for increasing the competitiveness of the agriculture sector would continue to be implemented.―While we are in the pursuit of those abusive few, we have also continued to implement projects to uplift Filipinos in the sector of agriculture. We are ensuring that rice farming remains a viable and attractive livelihood. After all, we know that our farmers are advancing in age, which is why it will help our pursuit of food security to encourage the youth to enter this kind of work,‖ the President said.The Department of Agriculture‘s Food Staple Sufficiency Program (FSSP) is the Aquino administration‘s banner food security program to attain sufficiency in rice and major staples like
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white corn, root crops and plantains.The FSSP entails satisfying the regular domestic consumption requirement as well as the buffer stocking requirement for food staples.The government is rushing to integrate farmers into the value chain as the free trade regime within Southeast Asia is implemented by 2015. Farmers are thus being groomed as entrepreneurs who can engage in food processing and marketing of their produce.
NFA set to hold bidding for 500,000-MT rice imports 30.07.2014
The Philippines‘ state grains agency has been authorized to import an additional 500,000 tonnes of rice for emergency needs, President Benigno Aquino said, as the government struggles to bring down record-high prices of the national staple.―The NFA has a standby authority to import 500,000 metric tonnes in preparation for possible calamities,‖ Aquino said in his annual State of the Nation Address on Monday. The announcement comes as the National Food Authority (NFA) prepares to hold an ―open bidding‖ next month for the importation of 500,000 tonnes of rice to boost thin stockpiles after a typhoon damaged crops early this month.The Philippines‘ increasing rice imports, expected to be the highest in four years, may exceed 2 million tonnes this year and could further underpin export prices in key producers including Vietnam, its traditional supplier. Next month‘s tender is open to rice exporters in other countries including Vietnam, Thailand and Cambodia.Last week, the Philippines‘ food security chief, Francis Pangilinan, said rice inventories held by the NFA, the private sector and households were good for 82 or 83 days of national consumption, below a requirement for a 90-day buffer stock.President Aquino said the government was determined to import sufficient amounts of rice to bring down retail prices of the grain which, according to the latest government report, hit new highs this month.For the Philippines, importing more rice is necessary to stop rice hoarding and force traders to unload more stocks into the domestic market, Aquino said. The US Department of Agriculture (USDA) has forecast that the Philippines may need to import as much as 2 million tonnes of rice this year and 1.8 million tonnes in 2015.With purchases this year possibly reaching around 2.2 million tonnes, the Philippines is on track to become the world‘s third biggest buyer of rice, according to USDA estimates, up from the No. 8 spot it held last year.Ahead of the NFA‘s Aug. 12 tender for 500,000 tonnes of rice, Vietnam has set the export price floor for its 25-percent broken grade at $410 a tonne, reflecting a surge in recent weeks due to rising demand and low stocks.The higher floor price could make rice from Vietnam, the world‘s second-largest rice exporter after India, less competitive on global markets.
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SunRice to acquire Queensland-based Blue Ribbon Rice Group’s rice assets July 30, 2014 Sophie Langley SunRice enters into agreement to acquire Blue Ribbon Rice Group‘s rice assets Australian rice company SunRice Group has announced it has entered into an agreement to acquire the rice milling assets of Blue Ribbon Rice Group (Blue Ribbon), which are located in Brandon in North Queensland‘s Burdekin region.Blue Ribbon, which commenced operations in 2008, owns a single rice milling and packaging plant that last year produced 2,000 tonnes of processed rice. Although this volume represents less than one per cent of Australia‘s rice sales, with its climate and secure access to water, SunRice said the Burdekin region was regarded as ―one of the most promising rice-growing areas outside of the Riverina‖. The assets acquired by SunRice include property, plant and equipment.
Blue Ribbon acquisition part of strategy to develop domestic supply SunRice said the acquisition would complement its existing supply of rice from the Riverina region in New South Wales.SunRice said the acquisition formed part of its strategy to invest in and develop sources of domestic supply, in particular, the supply of specialty rice varieties. While the potential supply volumes from Blue Ribbon were not material to the overall volumes for SunRice, the acquisition will help over time to strengthen SunRice‘s ability to successfully target premium, niche export markets, according to the Company. SunRice said the acquisition will also enable the Company to further diversify and ―increase the resilience‖ of its earnings.
Benefits of Burdekin region SunRice said the Burdekin region offered attractive agronomics for rice growing, including favourable water supply and reliability. Local conditions are particularly suited to the growing of specialty rices, including fragrant varieties and specific long grain options, which SunRice said would ―increase the overall competitiveness of Australian rice‖.Additional research and development will be undertaken to maximise SunRice‘s growing options through its Rice Research Australia (RRAPL) subsidiary.
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SunRice said it was ―uniquely positioned‖ to add value and to develop the Burdekin region‘s rice industry and the potential of Burdekin-grown rice by contributing the Company‘s agronomic support, integrated supply chain, distribution network and international sales and marketing capability.In addition, SunRice said minimal capital investment was required for Blue Ribbon‘s current milling assets, which are well located in the heart of the region‘s rice growing area and within close proximity to Townsville Port.A further announcement will be made at the completion of the acquisition, which is expected during September 2014. The transaction is also subject to clearance by the Australian Competition and Consumer Commission (ACCC).
Ministry mulls rice sales to China, Malaysia
The Nation July 31, 2014 1:00 am
Demaged rice from the stockpiles that will be the raw material to produce ethanol by PTT, who interests to buy.The Commerce Ministry will negotiate with China and Malaysia over the purchase of rice from the upcoming harvest season, and is also seeking additional distribution channels at home - such as military camps, hospitals and prisons - to prevent a domestic oversupply.After opening the "Community Products Festival" in Muang Thong Thani yesterday, permanent secretary Chutima Bunyapraphasara said the ministry had drawn up many plans to release rice from the state stockpiles, as well as absorbing rice from the market during the upcoming harvest season.Under the plans for the next three to six months, it will negotiate with China for the purchase of more rice from Thailand. China's COFCO - a state-owned rice-import agency - previously agreed to purchase 1 million tonnes of Thai rice. The ministry will send a team from the Foreign Trade Department to try to persuade the agency to buy an additional 1 million tonnes from the 2014-15 new crop season, she said.Officials will also hold discussions with Malaysian importers about purchasing around 700,000 tonnes of Thai rice. If successful, these efforts to sell more rice abroad will ensure that the domestic price does not decrease dramatically during the main harvest season, which starts in late October, she added.Chutima said the ministry would also continue to negotiate with other countries such as Indonesia and the Philippines, as well as countries in Africa and the Middle East, over
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the purchase of Thai rice.The goal is to sell a total of 3 million to 4 million tonnes from the government's stockpiles to rice-importing nations within the next year. Meanwhile, in an additional move aimed at releasing stockpiled rice, the ministry will soon hold the first of a series of auctions for some 200,000-500,000 tonnes within the next two months. Any rice sold via this method will have already been inspected and passed laboratory testing, so that traders can have full confidence about the quality of the government's stocks, said the permanent secretary.The first auction is scheduled to take place early next month for a small lot of rice. Both local traders and exporters can join the bidding."The bidding will be transparent and opened widely for all to take part. Traders can offer their best prices to the government, with no kickback money," Chutima stressed.However, despite these various efforts to maintain prices, the government will temporarily release rice from its stockpiles during the harvest season to prevent falling market prices, she said.
Moreover, the ministry is seeking new distribution channels for the sale of stockpiled rice, and hospitals, military camps and prisons are targeted for the sale of a combined 1.8 million tonnes each year, she said.Additionally, to prevent an oversupply of rice in the upcoming harvest season, and a serious price drop, the government has provided a budget of Bt315 million to help rice millers and local traders to purchase produce from the market. Offsetting interest rate Under the project, the government will offset the normal interest rate of 3 per cent per annum in order to help traders buy rice. The project will cover the purchasing period from November to January, and stocking from November to July, she explained. It should help absorb about 2 million tonnes of paddy rice from the market.The Bank for Agriculture and Agricultural Cooperatives (BAAC) will also provide a soft loan worth Bt300,000 for each farmer, so that they can delay selling rice during the harvest season by stocking it in their barns instead. This should help minimise any potential oversupply and price drop during the harvest season, Chutima said.The BAAC project will cost about Bt1.12 billion to absorb 1.5 million tonnes of paddy from the market. Rice output this year is expected to be lower than previously projected because of drought, while there is higher demand in the world market, she said. Rice prices should be more stable in the next harvest season, as there will be no subsidy project to interfere with the market mechanism, she added.Rangsant Sriworasart, permanent secretary of the Finance Ministry, said PTT would consider buying damaged rice from the stockpiles for the production of ethanol. The inspection teams under the National Council for Peace and Order found about 100,000 tonnes out of 18 million tonnes of rice in the government's stocks were deteriorated in quality or otherwise damaged because of poor storage conditions.
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Centre's paddy procurement policy won't affect Tamil Nadu, Jayalalithaa says Karthick S,TNN | Jul 30, 2014, 06.35 PM IST
CHENNAI: Accusing DMK chief M Karunanidhi of creating "needless tension" among farmers in the delta areas over a recent Union government order on paddy procurement, chief minister J Jayalalithaa said on Wednesday that the Centre's decision would not affect Tamil Nadu. In its June 12 circular, the ministry of consumer affairs, food and public distribution barred state governments from providing incentives, in addition to the MSP, for procuring paddy from farmers. Jayalalithaa assured the state assembly that "the circular will not affect Tamil Nadu, since the state has procured only 23.81 lakh metric tonne of paddy, including 16.10 lakh metric tonne of rice against the entitled allotment of 35.58 lakh metric tonne of rice and 52.32 lakh metric tonne of paddy under various schemes." The government would give an incentive of Rs 70 in addition to the MSP of Rs 1,400 for normal paddy and Rs 50 in addition to MSP of Rs 1,350 for special quality paddy this fiscal, Jayalalithaa said. According to Decentralised Procurement Scheme brought to the state since 2012, Tamil Nadu Civil Supplies Corporation (TNCSC) is the nodal agency for Food Corporation of India in procuring paddy and other crops. TNCSC in turn uses its rice mills or private ones to get rice out of paddy and distribute them through fair price shops according to the state's entitlement of rice from the Centre. Giving details about the latest circular from the Union consumer affairs, food and public distribution ministry, she said there would be no negative impact on Tamil Nadu because of this. "That's why I did not comment on it so far and my government did not express any opposition to the Centre," she said. Centre's paddy procurement policy won't affect Tamil Nadu, Jayalalithaa says
Coming down heavily on Karunanidhi for coming out with a statement in this regard, she said the DMK leader was not keen to know the facts since his only aim was to find faults with the AIADMK government. She accused Karunanidhi of remaining silent when the previous UPA government came out with various anti-people initiatives such as Methane project, laying of GAIL pipelines in farmlands, genetically modified crops and foreign direct investment in retail trade. Recalling her stand that "projects are only for people and people are not for the sake of projects," the chief minister said her government had stopped all anti-public activities and would continue to safeguard the interests of Tamil Nadu.
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Basmati exports may lose steam on Iran’s duty hike VISHWANATH KULKARNI
Demand from other markets likely to provide solace for the aromatic rice shippers BANGALORE, JULY 30:
Basmati shipments are likely to see a slowdown in the near-term as Iran, the largest buyer of the Indian aromatic rice, has hiked the import duty to around 40 per cent from 22 per cent. Iran accounted for over a third of India‘s basmati exports in value and about 40 per cent in quantity last year. ―There will definitely be an impact on our exports. We expect our shipments to come down by around 30-40 per cent to Iran this year,‖ said MP Jindal, President of All-India Rice Exporters Association. Iran has imposed a steep duty hike after a span of two years, Jindal, who is Chairman of Best Foods International, said.The latest move by Iran is aimed at discouraging imports at this time of the year, when its domestic rice crop comes into the market. ―We were expecting this duty hike. It may be a temporary measure and they may revert to the earlier levels by September-October,‖ an industry source said. Growth in acreage Farmers in the key basmati-growing of Punjab, Haryana, Uttar Pradesh and Madhya Pradesh are seen planting more of the fragrant variety this year in anticipation of better returns as prices had shot up by 30 per cent last year. Also, with more farmers seen adopting the newer variety – 1509 –- which yields more and consumes less water besides being pest resistant compared with 1121, basmati acreage and output is poised for a significant increase this year. Basmati was planted on some 19 lakh hectares last year.Vijay Setia, Director at Chaman Lal Setia Exports, said the delayed rains this year was seen driving acreages of 1509 variety in Punjab and Haryana. Planting of 1509 will go on till mid-August and it is too early to assess the acreage. Other markets
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On the duty hike by Iran, Setia said the impact would not be significant as Indian exporters are not dependent solely on that market. ―Every other market is growing for us. With the US resolving the tricyclazole pesticide residue recently, exports are likely to sustain momentum,‖ Setia said.Besides Iran, Saudi Arabia and Iraq were the other large buyers of Indian basmati last year. Also, countries such as US, Afghanistan and African nations such as Ghana, Nigeria, and Ivory Coast have been buying more of Indian basmati to cater to their growing demand.Jai Oberoi, Associate Director at LT Foods Ltd, said the Iranian duty hike will certainly affect the exports, without quantifying the impact. (This article was published on July 30, 2014)
Factbox - India's food stockpiling and WTO stand-off Tue Jul 29, 2014 8:26pm IST
REUTERS - India threatened to block a worldwide reform of custom rules last week, saying it wants an agreement on food subsidies and stockholding to run parallel to the trade facilitation pact.With grain silos spilling over, exports on the rise and an avowed market champion for prime minister, New Delhi's threat to trash the trade deal in the name of food security and farm subsidies appears puzzling.But government officials say Prime Minister Narendra Modi is prepared to brazen out global outrage to seize a historic opportunity to build a rural power base as farmers' best ally and banishing memories of humiliating national food shortages. Following are key facts on India's food stockpiling and its stand at WTO.GRAIN STOCKPILES & SUBSIDIES * India rice reserves stood at 21.2 million tonnes as of July 1 and wheat stockpiles were at 39.8 million tonnes -- more than double the government‘s buffer requirements for both commodities.* India, the world‘s second biggest rice and wheat consumer, has been annually spending 900 billion to 1 trillion rupees ($16.63 billion) on procurement of grains from farmers every year.* But this cost will rise to 1.15 trillion rupees in the financial year to March, 2015 as the world‘s second most populous nation is rolling out the Food Security Act. The act promises subsidised grains to some 810 million people, compared with about 318 million covered under the programme earlier.* In the past 10 years, the government has more than doubled the price it pays
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farmers for rice and wheat. The country paid about 14,000 rupees for one tonne of wheat this year and about 13,600 rupees for a tonne of rice. GRAIN PRODUCTION AND EXPORTS * India, the world‘s second biggest grain producer, has seen its rice output climb to 106.3 million tonnes last year from 83 million tonnes in 2004, according to the U.S. Department of Agriculture data. Wheat production rose to 93.5 million tonnes this year from 72 million tonnes in 2005. * India emerged as the world‘s biggest rice exporter in 2013, selling more than 10 million tonnes and edging out Thailand. In the year to June 2013, the country‘s wheat exports jumped to 8.7 million tonnes, a five-fold gain from a year earlier. * Still, India has faced stiff competition from Thailand in the global rice market in recent months while bumper wheat production in the Black Sea region has pushed the South Asian nation out of business. INDIA'S POSITION * India wants an agreement on food subsidy and stockholding to run parallel to the trade facilitation pact. It wants setting up of a dedicated special session of the committee on agriculture to find a permanent solution on public stockholding for food security by December 31, 2014. * New Delhi is seeking to update the base of calculating food subsidies from 1986-88 prices to the current level, taking into account inflation and currency movements. AGREEMENT IN BALI ON FOOD STOCKPILING * In December 2013, the WTO members in Bali agreed on an interim solution to shield food stockpiling programmes in developing countries such as India, so that they would not be legally challenged even if the limits on trade distortion were breached. * They agreed on an interim solution until a permanent one is reached in four years. * Under the previous WTO pact, developing countries are allowed to buy grains from farmers at support prices to build stocks, subsidising up to 10 percent of the value of output.
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($1 = 60.1150 Indian Rupees) (Reporting by Mayank Bhardwaj, Manoj Kumar and Krishna N Das; compiled by Naveen Thukral; Editing by Tomasz Janowski)
Commerce ministry to hold new round of rice auction BANGKOK, 30 July 2014 (NNT) - The Ministry of Commerce is preparing to distribute rice with the auction method in August this year. It has confirmed the rice has good quality and meets standards. ermanent Secretary for Commerce Chutima Boonyapraphatson said the ministry would continue with its plan to distribute 200,000-500,000 tons of rice in government warehouses from August to September 2014. The rice distribution would be delayed during the period when the produce was abundant in order to prevent effects on rice prices in the market, said Ms Chutima. Ms Chutima stated further that she expected that the Department of Foreign Trade would be able to arrange an action for the rice from the beginning of August to September this year. She also confirmed the rice had passed quality inspection and forecast that Thailand would be able to export ten million tons of rice this year.
Food prices skyrocket SPECIAL CORRESPONDENT
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hough prices of some varieties of rice are seen easing there has been year-on-year, 100 % increase in prices of coconut oil, tomato. Though prices of some varieties of rice are seen easing, the price of major food items, including pulses, cooking oil, coconut, fruits and vegetables, have seen significant appreciation over a period of one year.The State average price of red matta variety has fallen 3.26 per cent from Rs. 37.07 a kg in July last year to Rs. 35.86 a kg this month, say figures available from the State Department of Economics and Statistics.However, the price of more popular Palakkadan Jaya rice has increased by 15.45 per cent, rising from Rs. 30.75 a kg to Rs. 35.50 a kg in July this year. The price rise for other varieties of rice has ranged between 1.81 per cent and 8.84 per cent, the department figures say.
Price fluctuation for pulses has ranged between 11.79 per cent fall for small Bengal gram and 36.81 per cent rise for black gram split without husk. The State average price of the latter has gone up from Rs. 64.14 a kg in July 2013 to Rs. 87.75 a kg this month. The price of green gram rose 18.26 per cent and green gram dhal price rose 26.23 per cent during the period.Price of sugar has gone up 2.27 per cent; milk price has gone up 11.37 per cent and egg prices (hen) has appreciated 10.58 per cent.The swing in the prices of oils and oil seeds has been more dramatic with loose coconut oil price going up 117.35 per cent during the one year period.
The price of the Kera brand has gone up 113.21 per cent from Rs. 82.71 a kg to Rs. 176.35 a kg during the period.The price of root crops like elephant foot yam appreciated 33.39 per cent; tapioca prices fell 2.26 per cent and potato price has gone up 34.29 per cent.Among vegetables, brinjal, pumpkin, tomato, beans and green
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chilli have shown significant rise in prices. Tomato price has gone up 93.54 per cent from Rs. 29.86 a kg in July last year to Rs. 57.79 a kg this month. Green chilli price (per 100 gram) has gone up from Rs. 4.32 to Rs. 6.93. The price of beans has gone up from Rs. 33.64 a kg to Rs. 65.14 a kg.
A drought of a different kind HARISH DAMODARAN VINSON KURIAN The impact of rains failing this time will be felt more by farmers than consumers The south-west monsoon‘s behaviour this year has confounded everybody. Towards early April, meteorological agencies worldwide were almost unanimous in concluding that 2014 would be an El Nino year. Worse, it wasn‘t just El Nino — an abnormal warming of the east-central Pacific Ocean waters, leading to increasing evaporation and cloud-formation activity around South America and away from Asia — but a peer event on the Indian Ocean that, too, gave the jitters.A ‗negative‘ Indian Ocean Dipole (IOD) — wherein the eastern waters of the ocean adjacent to Indonesia and Australia become unusually warm relative to the western tropical part — is prejudicial to the monsoon, as it hampers convective activity in the Bay of Bengal. The negative IOD, like El Nino, was also anticipated to be a strong event. In combination, they were feared to deliver a double whammy to the Indian monsoon in 2014.
No El Nino this
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These forecasts seemed to bear out in June, with the country receiving 43 per cent below-normal rainfall. It is another matter that this had little to do with either El Nino or a negative IOD. Most global models predicted El Nino‘s onset only in the second half (August-September) of the monsoon. Similarly, while the IOD index was negative since mid-June, it needed to remain so into August to qualify as an ‗event‘.Simply put, the massive June rainfall deficit was not due to the known ‗sea-based‘ suspects.Instead, ‗local‘ factors — mainly unseasonal summer showers upsetting the normal heating pattern over the Indian landmass — were to blame.
These showers basically capped the heating and prevented the formation of a ‗heat low‘ at its usual northwestern Indian perch. The monsoon is ultimately about moisture-laden winds blowing in from a high-pressure area (the Arabian Sea) to one of low pressure (over land) created by intense heating. A good monsoon requires the ‗heat low‘ to stay pinned down to Rajasthan through May.The untimely showers this time dislocated the ‗heat low‘ to the east, thereby not allowing the atmospheric temperature and pressure gradients from developing to their optimal levels. This may have played a part in delaying the monsoon onset and also the 43 per cent rainfall deficit in June, according to Akhilesh Gupta, a former lead operational forecaster with the Department of Science and Technology. July revival The current month has, however, recorded a much lower shortfall of 11 per cent till July 28. The monsoon has been good, especially over the last two weeks. One cannot, though, rule out the rains failing again in August and September, courtesy El Nino and the negative IOD rearing their ugly heads. But interestingly, most global forecasters have lately been marking down the intensity of both events. El Nino is now seen to be of weak-tomoderate strength and may not strike before late-September. Likewise, the current consensus appears to favour a ‗weak‘ negative IOD.All in all, then, we may still end up with a monsoon not as bad as was feared!But the fact that there were hardly any rains till mid-July is bound to leave its impact on this year‘skharif. The Agriculture Ministry‘s latest progressive sowing data reveals a 39-43 per cent fall in pulses and coarse grain acreages over last year, with 27-30 per cent less for cotton and oilseeds.In most crops, the normal sowing window is before mid-July. Around 70 per cent of soyabean planting in Madhya Pradesh last year, for instance, was completed in June itself. This year, 70 per cent of sowing — even assuming a substantial pick-up due to rains in the past week — would be after July 15. Delayed sowing could, in turn, hurt yields — more so for crops such as cotton, where peak boll formation happens after October and there is possibility of added moisture stress from El Nino manifesting by then.But even in a worst-case scenario — of rains failing in AugustSeptember (as they did in 2009) and El Nino/negative IOD materialising concurrently — the resultant drought may not wreak real havoc. The effects, if any, will be more on farmers than consumers. Farmers’ burden The reason for this is international prices. September corn futures at the Chicago Board of Trade are currently ruling 25 per cent lower relative to last year, while down 11 and 18 per cent respectively for soyabean and
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wheat. Skimmed milk powder prices at the auctions of New Zealand‘s Fonterra Cooperative Group — a benchmark for the global trade — have also dropped 28 per cent since December.These declines are part of a wider trend. The accompanying table shows global prices of agri-commodities peaking in 2011-12. The droughts in 2004 and 2009 — and also the no-so-good monsoon of 2012 — coincided with this rising trend in world prices.A drought this time, by contrast, would be amid an overall weak global scenario for agricommodities prices. There would be that much less pressure, then, on domestic prices — barring for onions, potatoes, tomatoes and other perishable vegetables where there is very little global trading as well. This time‘s drought could be more similar to the one in 2002: wholesale food prices rose a mere 2.5 per cent that year and by 1.3 per cent in 2003.But while consumers may be relatively insulated, the same cannot be said about farmers. Their production costs, even if they manage to plant, will increase sharply this year.To understand this, consider paddy. This is a crop requiring continuous standing water at a minimum 1.5 inches above the ground for the first 60-65 days after transplanting. In Punjab, for example, farmers transplant during the peak June summer. Given erratic electricity supplies, they give 7-8 irrigations through diesel pump-sets in June. With the monsoon‘s arrival and the accompanying drop in temperatures, the irrigation requirement drops to half or less in July. But Punjab this time has suffered 58 per cent rainfall deficiency, forcing farmers to go in for 4-5 extra irrigations. Irrigating every acre takes about five hours and each hour entails consuming three litres of diesel. At ₹58/litre, the cost of five extra irrigations works out to ₹4,350 an acre; it would be more if labour hiring charges are added. This cannot be compensated through higher minimum support price (MSP), already at ₹1,400/quintal on an average yield of 25 quintals/acre.The last 10 years or so were beneficial for farmers, with rising global prices that were also conducive for raising MSPs. Today, they are caught in a bearish global commodity cycle, even as fuel and fertiliser subsidies are being withdrawn. A drought only adds to their woes. (This article was published on July 29, 2014)
Ghana seeks Punjab help to boost rice production PTI Chandigarh, July 30, 2014 First Published: 18:20 IST(30/7/2014) | Last Updated: 18:22 IST(30/7/2014)
Ghana on Wednesday sought Punjab'sexpertise to boost its rice production and improve its food grain quality.Energy and petroleum deputy minister of Ghana Benjamin Dagadu called on Punjab food and supplies minister Adesh Partap Singh Kairon and sought the state's help to increase its rice production, a state government release said on Wednesday.The visiting dignitary also sought Punjab's expertise related to better infrastructure and latest techniques in the field of food technology, and also the setting up of online postprocurement operations, the release said.Kairon assured the visiting delegation of all possible help in order to enable Ghana to produce quality food grains especially rice, and promised to share expertise in better milling and preservation operations.Informing that Ghana produces quality cocoa crop in abundance, Dagadu further requested Punjab to share its expertise in post procurement operations of cocoa.
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