S. Korea seeks to boost rice exports amid possible
oversupply
Published
: 2015-02-24 11:16
Updated : 2015-02-24 11:16
Updated : 2015-02-24 11:16
South Korea will work to increase its exports of rice, the
government said Tuesday, as a way of developing the local industry while also
protecting the sector that's now facing a possible oversupply. To
help assist local producers and exporters, the Ministry of Agriculture, Food
and Rural Affairs has published an exporters handbook that outlines the names
and other information of major buyers in key importing countries, including
Australia and Japan.The handbook also contains customs and other market
information, such as labeling regulations, of key markets, according to the
ministry.
The move comes as the country continues to face a possible
oversupply of rice as its own output gained 0.3 percent on-year to about 4.23
million tons last year while its per capita consumption of the staple crop
continues to drop.In 2014, the country's annual intake of rice per person
slipped 3.1 percent on-year to a record low of 65.1 kilograms. The figure marks
a 52 percent plunge from the record high of 136.4 kg posted in 1970.South Korea
has also liberalized its rice market with tarrification at the beginning of the
year, though imports under tarrification are currently subject to a tariff of
513 percent.The 513 percent tariff rate still requires verification by the
World Trade Organization while the country is required to import 408,700 tons
of rice each year under a special arrangement with the WTO known as the minimum
market access.All 408,700 tons of imports under MMA are only subject to a
tariff rate of 5 percent, keeping their prices significantly lower than those
of locally produced crops.
"Locally produced rice may appear to have little
competitiveness in terms of price, especially in the global market, but its
quality finds little competition anywhere in the world," said Kang
Hye-young, head of the ministry's export promotion division.In 2014, South
Korea exported 1,992 tons of rice, worth $4.72 million, to 45 countries
throughout the world. The amount marks a 13.6 percent on-year spike from 1,754
tons in 2013. The country also shipped about $59.5 million worth of rice
products, such as rice cake, last year, up 14 percent from a year earlier,
according to the ministry. (Yonhap)
More companies invited to export rice
to China
Myanmar
Eleven February 25, 2015 1:00 am
The
Myanmar Rice Federation (MRF) has invited more firms to export rice to China in
addition to the original nine companies.The MRF originally sent a list of more
than 100 companies to China for scrutiny checks but the Chinese replied that it
was difficult to scrutinise so many firms. The federation then chose nine
companies: MAPCO, FRP, Myanmar Rice Mill, Golden Land East Asia, Bayintnaung
Business Group, MRDC, Shan (north) SPRDC, Ayeyar Pathein, Rakhine Rice and
Paddy. The exporters will have to pay the costs to return rice that fails to
meet the designated marks, the federation said in an announcement. "China
has asked for additional rice exporters. Companies can register at the MRF.
The rice quality ordered by China is 25 mark,
35 mark and broken rice," said Dr Soe Tun, secretary general of the MRF. Myanmar
urged China to buy at least one million tonnes of rice in 2015, and three
Chinese companies have each agreed to buy 280,000 tonnes, according to the
federation.In order to export rice to China, Myanmar rice exporters need
certificates issued by the China Certification and Inspection Company (CCIC)
after inspections. The export industry had been hard-hit by China’s decision in
September to crack down on illegal rice shipments from Myanmar.The situation
improved when China allowed the export to resume this year.
Merchants
from Muse said that the decision has boosted exports through the border town. On
average, about 4,500 tonnes of rice and 1,500 tonnes of broken rice are
exported daily through Muse Trade Camp."Seizure of Myanmar rice by Chinese
authorities has decreased. Trade slumps when seizures occurred. More than
800,000 tonnes of rice and broken rice have been exported this fiscal
year," said Chantha Oo, vice chairperson of the Muse Paddy Wholesale
Centre.During the 2014-15 fiscal year, border trade between Myanmar and China
has increased, with the trade volume reaching a value of more than US$1
billion, according to the Commerce Ministry.
No imports
despite rice price rise
Satria Sambijantoro and Linda Yulisman, The Jakarta Post, Jakarta
| Headlines | Tue, February 24 2015, 6:26 AM
with rice prices already rising by more
than 30 percent so far this year, the government plans to boost the local rice
supply without imports, as officials vowed to crack down on the so-called “rice
mafia” allegedly playing a role in the abnormal price movement.The recent spike
in the price of rice, the main staple food of Indonesia’s 250 million citizens,
was caused by a supply shortage, Vice President Jusuf Kalla said Monday after a
meeting with top economic ministers discussing the issue.The Vice President
noted that the government’s “rice for the poor” (Raskin) program had
distributed only 140,000 tons of its initial target of 500,000 tons because of
“technical problems”.“Imports will only happen when necessary, but now is not
the time,” said Kalla.
“This is just a distribution problem,”
he said.Even without imports, the domestic rice supply would be sufficient to
meet demand in the coming months as the country would usher in the harvest
season from March through April, Coordinating Economic Minister Sofyan Djalil
explained to reporters after his meeting with Kalla.Trade Minister Rachmat
Gobel said that the government’s effort to rely less on imports through food
sovereignty had faced challenges from certain parties.
“There are still parties that try to
‘play’, looking to push for [more] imports. We have to pay careful attention to
such actions,” he said Monday during the discussion at the Trade Ministry,
which was held prior to his meeting with the Vice President.he government would
be steadfast its decision not to import rice and would instead prioritize
strengthening domestic supply, Rachmat said.He added that the Trade Ministry
would step up the fight against the so-called “mafia” in the rice trade that had
eroded the competitive edge of domestic business players.
The government has stated that it will
soon cooperate with independent auditing firm PT Sucofindo to audit at least
14,000 warehouses across the country amid suspicions of illegal stockpiling and
reselling. It
will start taking legal action against perpetrators. Warehouse owners found
guilty of illegal stockpiling could face up to five years’ imprisonment and
fines of Rp 50 billion (US$3.85 million), on top of having their licenses
revoked.
Officials from the Trade Ministry have
discovered some warehouses mix the low-quality Raskin rice with other brands at
their disposal. In addition, some rice from the State Logistics Agency (Bulog)
rice had reportedly been found in markets that were not within the agency’s
distribution remit.President Joko “Jokowi” Widodo has built his economic
development plan on the concept of food sovereignty, as he seeks to make
Indonesia less dependent on imports, with the country expected to have no rice
imports from 2017.Jokowi has vowed to improve the country’s farming
infrastructure to boost productivity, including an ambitious plan to build 49
new dams within five years to improve irrigation for local farmers.
At the moment, the country still imports
rice annually to sustain the rice stockpile at Bulog, which is tasked with
distributing rice and other food commodities throughout Indonesia to manage
prices. The agency imported at least 425,000 tons of rice from Thailand and
Vietnam last year.The government has always endeavored to keep the price of
rice stable. Rice is a key contributor to inflation and price fluctuations
could lead to public protests and political instability.
Bank Indonesia Governor Agus
Martowardojo said Monday that he was optimistic that the rising rice price
would not lead to a sharp increase in inflation. Indonesia would likely post
month-to-month deflation for the second consecutive month in February, he
noted.In January, the monthly Consumer Price Index (CPI) stood at a negative
0.24 percent, taking year-on-year inflation during the month to 6.96 percent, a
drastic fall compared to 8.36 percent in December.
UPDATE
1-Thailand to offer 1 mln T rice in March tender
Tue Feb
24, 2015 11:41am GMT
(Adds finance ministry rice stocks estimate,
subsidy scheme loss)
BANGKOK Feb 24 (Reuters) - Top rice exporter
Thailand will open a tender to sell around 1 million tonnes of rice in March, a
commerce ministry official said on Tuesday, the second large offering this year
as the government tries to sell off massive stockpiles.Thailand has over 17
million tonnes of rice built up under a controversial subsidy scheme under the
government of former Prime Minister Yingluck Shinawatra, which paid farmers
well above market rates for their grain.The tender on March 6 will be the
military government's sixth rice tender since it toppled the remnants of
Yingluck's government in a May coup, ending months of protests in Bangkok.
Thailand sold 496,243 tonnes of rice in the last tender,
which was half the amount offered.The government has said it expects to sell
off the rice stockpiles in two years, but the country's Rice Exporters
Association said sales from stocks would likely be no more than 3 million
tonnes this year.From the five previous tenders, the military government has
sold 1,177,983 tonnes of rice for around 17.21 billion baht ($528 million).Thailand's
finance ministry said on Tuesday that rice stockpiles stood at 17.5 million
tonnes, and estimated losses incurred by the rice subsidy scheme totalled
$16.46 billion.Yingluck was found guilty of negligence for her role in the
scheme by Thailand's National Legislative Assembly, and banned from politics
for five years.
Thailand exported around 10.8 million tonnes of rice in 2014,
a record high, according to the commerce ministry, overtaking India as the
world's top rice exporter.The common grade Thai 5 percent broken white rice was
offered at $412 per tonne free-on-board on Tuesday, traders said. (Reporting By
Kaweewit Kaewjinda; Editing by Simon Webb and David Evans)
Local
Farmers to Add 2.9m Metric Tonnes to Nigeria’s Rice Stock
24 Feb 2015
Minister of Agriculture,
Dr. Akinwumi Adesina
About 2.9 million metric tonnes of high quality milled rice from indigenous producers is expected to be available from the 2014 season, according to the Federal Ministry of Agriculture and Rural Development (FMARD).The Minister of Agriculture, Dr. Akinwumi Adesina, made this announcement while inspecting a 420-hectare rice farm and mill belonging to Olam Nigeria Limited in Rukubi, near Doma, Nasarawa State.
He said: “This would bring
Nigeria closer to being self-sufficient in rice production and a potential
exporter of milled rice.”According to him, 1.9 million metric tonnes of the
commodity was produced in the 2013 dry and wet seasons, contributing N320
billion to the GDP and creating 670,000 jobs in the process.He said the federal
government’s ‘rice revolution’ was gaining added momentum with a projected 2.9
million metric tonnes of rice in 2014.
He added that with the importation at about 1.9 to 2.0 million metric tonnes per annum, Nigeria is now already at the exit door from importation.“We are going to be the Thailand of Africa in terms of rice production and export,” Adesina said.“Nigeria has also seen other prime players investing in the rice value chain.
He added that with the importation at about 1.9 to 2.0 million metric tonnes per annum, Nigeria is now already at the exit door from importation.“We are going to be the Thailand of Africa in terms of rice production and export,” Adesina said.“Nigeria has also seen other prime players investing in the rice value chain.
“Multinational conglomerate
Stallion Group, has established fully-integrated agricultural operations
including world-class rice mills at strategic locations, to promote milling and
paddy cultivation in the captive areas. The group has fully backward integrated
its rice value chain.“Stallion now operates a fully integrated state-of-the-art
rice mill in the country with an aggregate capacity of 360,000 metric tonnes
per annum and is producing premium varieties of rice from local paddy being
marketed under the names “Royal Stallion Shinkafa” and “Super Champion’’ which
are now very popular in the country.
The minister added that the
federal government is putting in place the enabling environment for production
of rice on small, medium and large-scale, through its Growth Enhancement
Support Scheme (GES) for the rice value chain, under the Agriculture
Transformation Agenda (ATA), launched in 2011.He further disclosed that these
new varieties have revolutionised rice production in Nigeria, as the ministry –
through seed companies – has consistently multiplied and distributed seeds to
farmers for cultivation since 2011 when the implementation GES commenced.In
addition to seed and extension support to farmers, the minister listed the
development and strengthening of other elements of the rice value chain,
including subsidised inputs, mechanisation services through Agricultural
Equipment Hiring Service (AEHE) for which financing support is accessible
through the Bank of Agriculture (BOA) and the Bank of Industry (BoI).
The minister, who was visibly
impressed with the wide hectarage under cultivation, the growing stockpile of
mill-ready paddy rice, mechanised planting and harvesting operations and land
preparation for new planting, all going on simultaneously with the installation
of the 600 metric tonnes capacity mill, stated that all the factors favourable
for growing and processing large quantities of rice, are not only already in
place in the country but effectively working also.Adesina disclosed that, prior
to the launch of the ATA in 2011, only one integrated rice mill was in place
but with the federal government scheme, 12 others mills have been added, with
the 60,000 tonne Olam farm mill expected to commence milling in June, bringing
the number of new rice mills to 13 within three years.
Other than these, he said, the small mills,
which, according to him are now 4,350 in number and growing at an annual rate
of 40 per cent, are the major rice milling drivers.The minister equally
disclosed that paddy bulking and aggregation centres, a bridge between rice
farmers and millers, are going to be set up to effectively address the problems
of stock supply security identified by investors in a commissioned study as a
concern, along with poor infrastructure and access to credit.The paddy bulking
and aggregation centres will stock, assess and grade paddy sourced from growers
with a view to creating easy access to millers that may have neither farms nor
paddy supply from farmers.
These facilities, Adesina said,
will further bolster Nigeria’s rice production capacity along with 15 rice and
other staple crop processing zone (SCPZ) to be set up at various locations in
the country, with a projected contribution of adding $9.0 billion to the GDP.Earlier,
while briefing the minister and his entourage, as well as journalists who
visited the Olam farm for progress assessment, the country head of the farm,
Mukul Mathur and the Rukubi farm manager, RegiGeorge, stated that Olam farm is
a subsidiary of Kewalrams Group, which has been in Nigeria for 150 years and in
different sectors of agriculture for 25 years.The company’s foray into rice
farming began four years ago, with the $72 million Rukubi rice farm and mill
being its biggest commitment yet.The company disclosed that currently, the farm
has a target of putting 4,600 hectares under cultivation with 3,000 hectares
already cultivated in both the dry and wet seasons.
Fed Govt:
Nigeria to exit rice importation soon
WITH the Federal Ministry of Agriculture and Rural
Development’s “rice revolution” gaining added momentum with a projected 2.9
million metric tons of rice from last year’s farming season, “Nigeria is
already at the exit door from its importation”.The Minister of Agriculture and
Rural Development, Dr. Akinwumi Adesina, said this while inspecting a
420-hectare rice farm and mill belonging to Olam Nigeria in Rukubi, near
Doma, Nasarawa State.
He said 2.9 million metric tons of
high quality milled rice was expected to be produced beginning from 2014
farming season.The minister added that with importation at about 1.9 to 2.0
million metric tons per annum, rice importation would soon stop. “We are going to be Thailand of Africa in
terms of rice production and export,” Dr. Adesina said.The minister
stated that no fewer than 670,000 jobs were created in 2013 through rice
production.
He said 1.9 million metric tonnes of rice was produced in
the 2013 dry and wet seasons, contributing N320 billion to the GDP and creating
670,000 jobs in the process.The minister said the Federal Government was
putting in place the enabling environment for production of rice on small,
medium and large-scale through its Growth Enhancement Support scheme (GES) for
the rice value chain under the Agriculture Transformation Agenda (ATA) launched
in 2011.In addition to seed and extension support to farmers, the minister said
the government has provided subsidised inputs and mechanization services
through Agricultural Equipment Hiring Service (AEHE) for which financing
support is accessible through the Bank of Agriculture (BOA) and Bank of
Industry (BOI).
Dr. Adesina said 15 rice and other staple crop
processing zones would be set up at various locations in Nigeria, with a
projected contribution of $9.0 billion to the GDP.The minister, who was visibly
impressed with the wide hectarages under cultivation, the growing
stockpile of mill-ready paddy rice, mechanised planting and harvesting
operations and land preparation for new planting and the installation of the
600 metric ton capacity mill, stated that all the factors favourable for
growing and processing large quantities of rice were already in place and
effectively working.
Dr. Adesina explained that, prior to the launch
of the ATA in 2011, only one integrated rice mill was in place, but that in
addition to 12 others, the 60, 000 ton Olam Farm mill expected to
begin milling in June brings the number of mills to 13 within three years.He
said the small mills have increased to 4,350 and growing at a yearly rate of 40
per cent.The minister said paddy bulking and aggregation centres, a bridge
between rice farmers and millers, were going to be set up to effectively
address the problems of stock supply security identified by investors in a
commissioned study as a concern along with poor infrastructure and access to
credit.The paddy bulking and aggregation centres will stock, assess and
grade paddy sourced from growers with a view to creating easy access to millers
that might have neither farms nor paddy supply from farmers.
These facilities, Adesina said,
would bolster Nigeria’s rice production capacity along with 15 rice and other
staple crop processing zone (SCPZ) to be set up at locations in the
country, with a projected contribution of adding $9.0 billion to the GDP.Briefing
the minister and his entourage, as well as reporters who visited
the Olam Farm for progress assessment, the country head of the
farm, Mukul Mathur, and the Rukubi Farm Manager, Regi
George, stated that Olam Farm is a subsidiary
of Kewalrams Group, which has been in Nigeria for 150 years and in
different sectors of agriculture for 25 years.He said the company’s foray into
rice farming began four years ago, with the Rukubi rice farm and mill
being its biggest commitment with $72 million.
China Continues to Import Rice at
Record Pace
USAgNet
- 02/24/2015
Rice
imports by China are expected to set a new record in 2015, surpassing 2014
levels by 200,000 metric tons and marking the fourth consecutive year of record
imports. Rice imports surged in 2012 to more than 7 times the average of the
previous 5 years, and continued to grow each year thereafter.China remains the
world's largest rice producer and consumer, and has been largely
self-sufficient in rice for more than 30 years and until recently, was
typically a net rice exporter.In 2012, China surpassed Nigeria to become the
world's largest rice importer.
Vietnam and Burma are the largest suppliers of
rice to China, along with Pakistan and Thailand.The United States is currently
unable to ship rice to China due to ongoing disagreements over phytosanitary
issues.China's record imports are not due to a short crop or tight supplies,
but are the result of much lower prices for imported rice than for domestic
rice, and continued growth in use partly due to an increasing population.
Senator Moran Opens USA Rice
Government Affairs Conference with Trade Focus
Senator Jerry Moran (r)
receives a U.S. Rice Industry Champion award from USA Rice Producers' Group Chairman
John Owen
WASHINGTON,
DC- - Senate Agriculture Appropriations Subcommittee Chairman Jerry Moran
(R-KS) opened the USA Rice Government Affairs Conference here today speaking
frankly about trade with Iraq and Cuba, and sharing his view on how to approach
agriculture priorities."The President could veto any bill we send him, but
we have an appropriations process that can help us get the attention of the
cabinet level secretaries at say, the Environmental Protection Agency,"
the Senator said while discussing the controversial Waters of the U.S.
regulations.
Moran
also made clear he is a strong supporter of agriculture trade."Ninety-five
percent of ag consumers live outside the United States, and you export half
your crop," he told the crowd, explaining why he thinks trade needs to be
a top priority.Moran informed the group that after leaving the rice meeting, he
would be seeing Secretary of State John Kerry, and that he would ask the
Secretary about the ongoing difficulties the U.S. rice industry is having with
Iraqi tenders.
General
Session attendees also heard an update on Cuba from USA Rice's Marvin Lehrer
who said he believes the Island presents great opportunities for rice."They
already know and love rice, so it's not like we need to do an education
campaign," he said. "And our
logistical advantages are obvious. Once
all the legal hurdles are cleared, the market could return quickly."
USA Rice CEO Betsy Ward and USDA's Phil Karsting
The
trade theme continued with the final speaker of the morning, USDA Foreign
Agricultural Service Administrator Phil Karsting."We are great partners
with great programs in Turkey, Saudi Arabia, Japan, Ghana, and elsewhere,"
he said. "I'm proud of our partnership,
and you should be too."Karsting told the group his agency "hears loud
and clear on Iraq" and will keep working to find solutions.
He
also spoke about Cuba, saying that while great progress has been made, there
remains much to be done on the diplomatic front."Agriculture is an early
item used to build bridges, and for good reason," he said. "When farmers talk to farmers, good
things happen."
Contact: Michael Klein (703) 236-1458
Field day set to aid growers
Feb. 24, 2015, 3:30 p.m.
Research in
the spotlight.
THE rice industry’s
premier research showcase, the Rice Field Day, is on again, with Leeton shire
growers encouraged to attend. Held on March 5, the field day shows the
latest in rice research and technological advancements.Rice R&D
Committee chairman Ian Mason urged growers to attend. “This
is a very important date for rice growers every year and this year we have a
fantastic range of speakers,” he said.The event will be held at Old Coree,
Jerilderie from 9.15am on March
Rice
Leadership Development Class Graduates
WASHINGTON,
DC -- The Rice Leadership Development Program's Class of 2013-2015 graduated
from the prestigious program during a special ceremony at the USA Rice
Federation's 2015 Government Affairs Conference this week. Rice Foundation
Chairman Todd Burich and USA Rice Chairman Dow Brantley presided over the
ceremony, congratulating the graduates and thanking program sponsors, John
Deere, RiceTec, Inc, and American Commodity Company.The class is made up of
five rice producers: John Compton, Jennings, LA; Seth Fiack, Glenn, CA; Mark
Isbell, North Little Rock, NC; Steven Schuler, Woodland, CA; and Joel Stevens,
Monticello, AR; and two industry representatives: Robb Dedman with Pro Ag
Consulting, Rison, AR; and Wes Long with RiceTec, Benton, AR.
The
class was immediately put to work representing the rice industry during the
conference, participating in multiple meetings with Members of Congress, staff
from key Congressional Committees, and agency representatives. A highlight of today's Washington session was
the tour of the USDA's satellite weather center.The group also met with Deputy
Chief of the Cuban Interest Section Juan Lamiguerio and his staff to discuss
the potential for rice trade between the two countries.
Contact:
Chuck Wilson (870) 673-7541
CME Group/Closing Rough Rice
Futures
|
USA Rice Federation
Rice
prices climb upwards
The Mekong Delta has entered peak harvest time of winter spring rice crop
after Tet holidays
After continuously falling,
winter spring rice prices have begun to inch up in the Mekong Delta provinces
in recent days.Fresh normal rice price ranged from VND4,200-4,300 a kilogram in
Dong Thap, Vinh Long, Can Tho and An Giang on February 23. High quality rice
was paid VND4,400-4,500 a kilogram while fragrant variety fetched VND5,000 a
kilogram.The prices increased an average of VND200-400 a kilogram over early
February. The Mekong Delta provinces have entered peak harvest time of winter
spring crop after Tet holidays.Huynh Phu Loc, trader from Lai Vung district of
Dong Thap province, said that they had begun purchasing rice after three days
of Tet and export businesses have also run their business operation again. Rice
price is expected to further edge up in the next days.
http://www.saigon-gpdaily.com.vn/Business/2015/2/112788/
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