Saturday, June 20, 2015

18th June (Thursday),2015 Daily Global Rice E-Newsletter by Riceplus Magazine

Asian palm oil, rice yet to price in severe El Nino: Russell
 Thu Jun 18, 2015 6:02am EDT
LAUNCESTON, AUSTRALIA, JUNE 18 BY CLYDE RUSSELL
Description: Workers stand near palm oil fruits inside a palm oil factory in Sepang, outside Kuala Lumpur, February 18, 2014. REUTERS/Samsul Said
Workers stand near palm oil fruits inside a palm oil factory in Sepang, outside Kuala Lumpur, February 18, 2014.
REUTERS/SAMSUL SAID
- The warnings of a strong El Nino weather phenomenon have been ramped up in recent weeks, but some Asian agricultural prices have yet to fully price in the looming drought.The meteorological agencies of the United States, Japan and Australia have all upped their forecasts for the strength and duration of the El Nino effect, which is caused by rising sea-surface temperatures in the Pacific Ocean.El Nino brings drier conditions to Southeast Asia, India and Australia, and a severe event can hurt output of agricultural commodities, such as palm oil, rice, rubber, wheat and cotton.In contrast, El Nino, the Spanish word for small boy, brings wetter weather to the Americas and sometimes to North Asia.

There is an 85 percent likelihood that the El Nino weather pattern that's currently developing will likely last into 2016, the Climate Prediction Center, an agency of the U.S. National Weather Service, said on June 11.Previously the agency had said there was an 80 percent chance that El Nino would last through 2015.The Japan Meteorological Agency said on June 10 that the El Nino was strengthening and was likely to reach intensity levels seen in 2009, which caused widespread damage to crops in Asia and Australia and caused food prices to surge.Australia's Bureau of Meteorology said on June 9 that Pacific ocean temperatures are continuing to warm, and that El Nino conditions are already at "moderate" levels and expected to persist through 2015.

So far, the reaction in several Asian commodity markets to the consensus of forecasters that the El Nino risks are rising has been muted.It's true that prices of many commodities are at, or near, cyclical lows and past experience has shown that they only tend to move higher once it's virtually certain that output will be cut by a weather event.The experience of 2012 and 2014, when an El Nino was forecast but didn't materialize in any significant way, has also likely made traders and investors somewhat more cautious.But it's worth bearing in mind that palm oil prices leapt 57 percent in 2009, partly due to the El Nino that year.Malaysian palm oil futures have been remarkably stable so far this year, up about 1 percent from the 2,266 ringgit per tonne at the end of last year. The contract is, however, down around 5 percent in U.S. dollar terms this year.The tropical oil has been losing ground against rival soy oil, with Chicago futures gaining 2.1 percent from the start of the year to Wednesday's close.

EL NINO TO NARROW PALM, SOY OIL GAP
Converting both contracts into U.S. dollars per tonne showed soyoil prices were $117 a tonne above palm on Wednesday, up from $66 at the end of last year.In the last major El Nino event in 2009, the gap between the two contracts narrowed sharply once the full impact of the weather event hit production by the end of 2010.At the start of 2009, soy oil commanded a $257 premium over palm oil, but this narrowed to $41 by the end of 2010.Although the gap between the two is currently not as wide as it was at the start of 2009, history does suggest there is scope for it to narrow over the medium term if this El Nino is as bad as forecasters predict.

The palm oil futures curve <0#1FCPO:> shows it has moved into a mild contango from being flat three months ago, with the 12-month contract trading 6.6 percent above the three-month on Thursday.Rice is another major Asian commodity that could be affected by a strong El Nino, with output likely to drop.However, the rice market is still trying to digest the massive overhang of stocks built up in Thailand during the government buying program of Yingluck Shinawatra, the prime minister removed last year by the military partly as a result of the scheme's vast cost and lack of success.

Thai benchmark 5-percent broken white rice dropped to $365-$368 a tonne on Wednesday, the lowest since January 2008.With ample rice stocks and low prices it may be tempting for governments in importing countries such as the Philippines and Indonesia to boost reserves in case a severe El Nino does materialize.But similar to palm oil, rice prices are likely to rise only once it becomes clearer that output is going to decline because of El Nino.

(Clyde Russell is a Reuters columnist. The views expressed are his own)
(Editing by Himani Sarkar)

http://www.reuters.com/article/2015/06/18/us-column-russell-agriculture-asia-idUSKBN0OY12M20150618?utm_source=USA+Rice+Daily%2C+June+19%2C+2015&utm_campaign=Friday%2C+December+13%2C+2013&utm_medium=email
http://in.reuters.com/article/2015/06/19/nagpur-foodgrain-idINL3N0Z537Q20150619



Thursday, 18 June 2015 21:46
Posted by Parvez Jabri

Description: imageISLAMABAD: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Thursday called for formation of Rice Development Board (RDB), aimed at development of the sector and boost its exports for the benefit of the country.According to an FPCCI statement, Abdul Rahim Janoo, its Sr. Vice President, had written a letter to Engr. Khurram Dastgir Khan, Federal Commerce Minister and Sikander Hayat Khan Bosan, Federal Minister for Food Security & Research in this regard.He urged them to constitute a Rice Development Board (RDB) for providing a single platform to effectively and forcefully deal with the issues - related to development and promotion of all varieties of rice grown in the country, especially the unique Basmati rice as well as regular paddy - of all the stakeholders on Board.

The SVP of FPCCI was of the view that Rice exports on an average was stuck-up at around $ 2 billion per annum mainly due to the lack of knowledge about latest research & development in the field of new rice varieties that yield more at lower cost and are acceptable to the global market.He disclosed, "Our competitors have come up with such products due to market oriented or demand driven research in consultation with all the stakeholders (rice growers, millers, exporters, traders etc.) on one platform, whereas, on the contrary, our research has been exclusive and in isolation, either in public or private sectors".The FPCCI's Sr. Vice President added that formation of the proposed "Rice Development Board" based on public-private partnership concept would transcend across all barriers both designed and unintended and would have two chapters, namely, Basmati Chapter and Paddy Chapter (for regular non Basmati rice paddy).

"It would have the Federal and Provincial bodies and institutions seamlessly on the Board besides private sector as well as technical experts both from public and private sectors", he elaborated.He further said that the proposed Board would be headed by a Federal Secretary as Governor of the Board with Deputy Governors, one each for Basmati and Paddy Chapters, from the rice exporting body to better define market demand criteria.Abdul Rahim Janoo, SVP, FPCCI therefore, asked both the Commerce Minister and Food Minister to extend their cooperation for formation of such a venture.






Soil microbe blocks arsenic uptake in rice

A microbe that mobilizes an ‘iron shield’ to block the uptake of toxic arsenic in rice has been found giving hope that a low-cost solution — a probiotic for rice plants — may be in sight.

http://www.thehindu.com/todays-paper/tp-features/tp-sci-tech-and-agri/soil-microbe-blocks-arsenic-uptake-in-rice/article7327253.ece


             

Paddy farmers bitter over paltry increase in MSP

Updated: June 18, 2015 05:45 IST G. VENKATARAMANA RAO

Description: http://www.thehindu.com/multimedia/dynamic/02442/17vjgvr_Rs-50-i_VJ_2442621e.jpgThe Centre’s decision to raise the minimum support price for paddy by Rs 50 to Rs 1410 has left farmers here disappointed.The Cabinet Committee for Economic Affairs (CCEA) on Wednesday announced an MSP of Rs 1,410 per quintal of ordinary paddy and Rs 1,450 per quintal of fine paddy.The Consortium of Indian Farmers Associations (CIFA) leader, Mr. P.Chengal Reddy said a mere Rs 50 increase in MSP was not acceptable to farmers in Andhra Pradeshl. The BJP had in its election manifesto said it would fix MSP at cost of production plus 50 per cent.By breaking its promise, the Union Government has lost the confidence of farmers here, he said.Mopidevi paddy farmer Tummala Vishal Rao said ordinary variety paddy normally fetched Rs 1,060 a bag (75 kg), or Rs 1,413.33 a quintal. He got a yield of 27 bags per acre and earned Rs 28,620 an acre, but his expenditure itself would be Rs 23,000.Owner-farmer, Mr Vishal Rao said he would barely manage to recover his investment but then, but 70 per cent of paddy growers are tenant farmers, who have to pay a lease cost of 20 bags and would not break even unless their yields were 40-45 bags an acre.YSR Congress Farmers’ Wing Convenor, Mr. M.V.S. Nagireddy pointed out that the UPA 1 government had hiked the MSP for paddy by 83 per cent (from Rs 550 to Rs 1,000) and UPA 2 had increased it by 31 per cent (from Rs 1,000 to Rs 1,310). The NDA government, in contrast, increased MSP by a mere 7.5 per cent in two years. The NDA was a harsh critic of the UPA, but its own performance was worse, Mr. Reddy said.



Nagpur Foodgrain Prices Open- Jun 18


Nagpur, June 18 Gram and tuar prices recovered in Nagpur Agriculture Produce and
Marketing Committee (APMC) here on good demand from local millers amid weak arrival from
producing regions because of heavy pre-monsoon rains in parts of Vidarbha. Fresh rise in Madhya
Pradesh pulses and enquiries from South-based millers also jacked up prices, according to
sources.

               *            *              *              *

    FOODGRAINS & PULSES
    GRAM
   * Gram varieties ruled steady in open market on subdued demand from local traders amid
     ample stock in ready position.

     TUAR
   * Tuar gavarani showed weak tendency in open market here in absence of buyers amid
     high moisture content arrival.     

   * Moong varieties reported down in open market on lack of demand from local traders
     amid release of stock from stockists.
                                                                                             
   * In Akola, Tuar - 7,300-7,700, Tuar dal - 10,100-10,500, Udid at 9,100-9,600,
     Udid Mogar (clean) - 10,700-11,100, Moong - 9,000-9,200, Moong Mogar
    (clean) 10,700-11,100, Gram - 4,200-4,500, Gram Super best bold - 6,100-6,300
     for 100 kg.

   * Wheat, rice and other commodities remained steady in open market in poor trading
     activity, according to sources.
      
 Nagpur foodgrains APMC auction/open-market prices in rupees for 100 kg

     FOODGRAINS                 Available prices     Previous close  
     Gram Auction                   3,600-4,510         3,570-4,400
     Gram Pink Auction            n.a.           2,100-2,600
     Tuar Auction                6,350-7,100         6,300-7,100
     Moong Auction                n.a.                6,000-6,300
     Udid Auction                n.a.           4,300-4,500
     Masoor Auction                n.a.              2,600-2,800
     Gram Super Best Bold            5,800-6,000        5,800-6,000
     Gram Super Best            n.a.               
     Gram Medium Best            5,500-5,600        5,500-5,600
     Gram Dal Medium            n.a.            n.a.
     Gram Mill Quality            5,100-5,300        5,100-5,300
     Desi gram Raw                4,400-4,450         4,400-4,450
     Gram Filter new            5,600-5,800        5,600-5,800
     Gram Kabuli                5,500-7,000        5,500-5,700
     Gram Pink                6,400-6,600        6,400-6,600
     Tuar Fataka Best             10,500-10,800        10,500-10,800
     Tuar Fataka Medium             9,900-10,300        9,900-10,300
     Tuar Dal Best Phod            9,500-9,700        9,500-9,700
     Tuar Dal Medium phod            8,800-9,300        8,800-9,300
     Tuar Gavarani New             7,250-7,350        7,300-7,400
     Tuar Karnataka             7,900-8,000        7,900-8,000
     Tuar Black                 11,000-11,300           11,000-11,300
     Masoor dal best            8,000-8,200        8,000-8,200
     Masoor dal medium            7,500-7,900        7,500-7,900
     Masoor                    n.a.            n.a.
     Moong Mogar bold               10,400-10,700       10,500-10,800
     Moong Mogar Medium best        9,700-10,200        9,800-10,300
     Moong dal Chilka            9,100-9,500        9,200-9,600
     Moong Mill quality            n.a.            n.a.
     Moong Chamki best            9,600-9,900        9,600-9,900
     Udid Mogar Super best (100 INR/KG)    11,500-11,750       11,500-11,750
     Udid Mogar Medium (100 INR/KG)    10,600-10,800        10,600-10,800
     Udid Dal Black (100 INR/KG)        8,900-9,200        8,900-9,200
     Batri dal (100 INR/KG)        4,200-4,400        4,200-4,400
     Lakhodi dal (100 INR/kg)           3,200-3,350         3,200-3,350
     Watana Dal (100 INR/KG)        3,300-3,400        3,300-3,400
     Watana White (100 INR/KG)        3,000-3,100         3,000-3,100
     Watana Green Best (100 INR/KG)    3,600-4,500        3,600-4,500
     Wheat 308 (100 INR/KG)        1,400-1,600        1,400-1,600
     Wheat Mill quality(100 INR/KG)    1,550-1,650        1,550-1,650
     Wheat Filter (100 INR/KG)        1,400-1,600           1,400-1,600
     Wheat Lokwan best (100 INR/KG)    2,200-2,400        2,200-2,400
     Wheat Lokwan medium (100 INR/KG)    1,900-2,100        1,900-2,100
     Lokwan Hath Binar (100 INR/KG)    n.a.            n.a.
     MP Sharbati Best (100 INR/KG)    3,100-3,600        3,100-3,600
     MP Sharbati Medium (100 INR/KG)    2,700-2,900        2,700-2,900
     Wheat 147 (100 INR/KG)        1,400-1,500        1,400-1,500
     Wheat Best (100 INR/KG)        1,900-2,100        1,900-2,100    
     Rice BPT New(100 INR/KG)        2,600-3,000        2,600-3,000
     Rice BPT (100 INR/KG)               3,200-3,400        3,200-3,400
     Rice Parmal (100 INR/KG)        1,500-1,750        1,500-1,750
     Rice Swarna new (100 INR/KG)      2,150-2,450        2,150-2,450
     Rice Swarna old (100 INR/KG)      2,600-2,800        2,600-2,800
     Rice HMT new(100 INR/KG)        3,100-3,600        3,100-3,600
     Rice HMT (100 INR/KG)               3,600-4,000        3,600-3,900
     Rice HMT Shriram New(100 INR/KG)    4,000-4,500        4,000-4,500
     Rice HMT Shriram old (100 INR/KG)    4,500-5,200        4,500-5,200    
     Rice Basmati best (100 INR/KG)    8,200-10,200        8,200-10,200
     Rice Basmati Medium (100 INR/KG)    6,000-7,200        6,000-7,200
     Rice Chinnor new (100 INR/KG)    4,700-4,900        4,700-4,900
     Rice Chinnor (100 INR/KG)        5,200-5,600        5,200-5,600
     Jowar Gavarani (100 INR/KG)        2,200-2,450        2,200-2,450
     Jowar CH-5 (100 INR/KG)        2,500-2,600        2,500-2,600

WEATHER (NAGPUR) 
Maximum temp. 36.6 degree Celsius (92.5 degree Fahrenheit), minimum temp.
23.3 degree Celsius (73.9 degree Fahrenheit)
Humidity: Highest - n.a., lowest - n.a.
Rainfall : 17.0 mm
FORECAST: Partly cloudy sky. Rains or thunder-showers likely towards evening or night. Maximum and minimum temperature would be around and 35 and 24 degree Celsius respectively.

Note: n.a.--not available

(For oils, transport costs are excluded from plant delivery prices, but included in market prices.)

 

PH to buy higher priced rice from Vietnam

June 18, 2015 9:58 pm

by JAMES KONSTANTIN GALVEZ REPORTER


THE Philippines has agreed to pay Vietnam close to $1 million more as the National Food Authority (NFA) scrambles to fill up its buffer rice stock requirement two weeks ahead of the lean season.During a special meeting on June 17, the interagency NFA Council has accepted Vietnam’s revised offer of $416.85 per metric ton (MT) for 100,000 metric tons of rice, the state­run grains agency said in a statement.The offer was above the $408.14 per MT ceiling set by the Philippine government.Earlier, he NFA Committee on Government­to­Government Procurement (CGGP) rejected initial offers from Cambodia, Thailand, and Vietnam, which were way above the reference price for 100,000 MT of well­milled, long grain white rice—25 percent broken.

Thailand offered $418 per MT, Vietnam offered $417, and Cambodia offered $464.During the second round, Thailand backed out of the bidding, saying that the Philippine government’s reference price was too low compared with the average price prevailing in the world market.Cambodia offered 50,000 MT at $455.50 per MT, while Vietnam offered 100,000 MT at $416.85 per MT – both offers were beyond the ceiling set by the NFA Council.The situation compelled the CGGP to call on the NFA Council for a decision.

The NFA Council is chaired by Secretary Francis N. Pangilinan of the Office of the Presidential Assistant for Food Security and Agricultural Modernization, with the Bangko Sentral ng Pilipinas, Development Bank of the Philippines, Land Bank of the Philippines, Department of Finance, Department of Trade and Industry, National Economic Development Authority, NFA and a farmer’s representative as members.The council awarded the contract to Vietnam, citing that “under the terms of reference of the G2G importation, in the event that revised offers are submitted, these shall be evaluated on the basis of the lowest price.”The 100,000 MT of rice is part of the 250,000 MT that the NFA Council approved to buy under the recommendation of the Food Security Committee to head off the lean season when the supply of rice is traditionally low and prices are high.

The shipment is expected to arrive in the country on August 15.NFA Administrator Renan Dalisay said the weighted average price for the 250,000 MT was $412.81 per MT while the average price for the rejected bids was $455 for Cambodia, $419 (Thailand), and $418 (Vietnam).“Taking this bid and comparing it to the average weighted price of $412.81 will show that we got a good price relative to the initial bid offers,” Dalisay said in a text message.The NFA chief said they are under pressure to make the rice imports available by July 1, the start of the lean season.

http://www.manilatimes.net/ph-to-buy-higher-priced-rice-from-vietnam/193045/

 

840,000 tons of rice sold in the 3rd/2015 rice auction


Thursday, 18 June 2015By  NNT

BANGKOK, 17 June 2015 - The Ministry of Commerce reported that 840,000 tons of rice out of the 1.06 million tons worth 7.8 billion baht in the government stockpile, were sold in the 3rd auction.Miss Banjongjit Angsusingh, Deputy Director-General of the Department Foreign Trade, said 40 out of the 43 qualified business operators made offers this time. She said 107 out of 153 silos of rice had been sold, netting 7.8 billion baht in a 840,000-ton rice deal.The Deputy Director-General said her department would forward the auction result to the National Rice Policy Committee before officially announcing it to the public and the bid winner in due course.

http://www.pattayamail.com/business/840-000-tons-of-rice-sold-in-the-3rd-2015-rice-auction-48139#sthash.5SMocWDU.dpuf


EU seeks aromatic rice import deal with Myanmar

EU seeks aromatic rice impo

Xinhua News Agency on Jun 17, 2015 @ 8:20 PM
EU seeks aromatic rice import deal with Myanmar.EU seeks aromatic rice import deal with Myanmar

YANGON, June 18 (Xinhua) -- The European Union is seeking to import Myanmar's aromatic rice as demand in Europe is on rise, an official report said Thursday.Myanmar has two types of aromatic rice - Lone Thwal Hmwe and Paw San. Paw San was judged the world's best rice at the World Rice Conference in 2011.Officials of the Myanmar Rice Federation (MRF) said Myanmar can grow both short and long grain aromatic rice to meet EU demand through the country's contract farming system, pointing out that exporting to Europe would enable Myanmar growers to diversify their markets.

However, the officials added that local farmers will need to grow a greater volume of aromatic rice to supply the EU market as local consumption already accounts for most of the crop.Paw San rice is priced at around 900 U.S. dollars per ton in its export.According to the MRF, Myanmar targets to export some 200,000 tons of rice to the EU this year against 100,000 tons last year.About 70 percent of Myanmar's rice export go to China with the rest going to EU, Japan and African markets.EU figures show that export of Myanmar milled rice to Europe increased 120 percent between September 2014 and April 2015, while broken rice export rose 81 percent during the same period.Myanmar official statistics show that the country's rice export reached nearly 2 million tons in the fiscal year 2014-15 which ended in March, up 40 percent from the previous year.


This article was produced by the Xinhua News Agency, the official press agency of the People's Republic of China. Xinhua describes itself as the "information organ of the central government." Given China’s size and importance, GlobalPost publishes Xinhua’s press feed as a resource for its readers and makes no claims as to journalistic accuracy


Tidbits: Kool-Aid gelatin dessert; jasmine and basmati rice


Hamilton Spectator

JIGGLE VS. JIGGLE
Mr. Tidbit has seen some strange things, but he doesn't recall ever seeing a product and a new virtually identical competing product coming from the same company.But that's the case with new Kool-Aid gelatin dessert. It's made by the Kraft Foods Group, which also makes Jell-O. The Kool-Aid box carries the iconic Kool-Aid pitcher, but otherwise there is almost no difference between the 3-ounce packages, and when Mr. Tidbit and two of his little friends tried the grape version of each, they found no apparent difference in Flavour. Both desserts even had the identical amethyst colour. (Mr. Tidbit would have called it "purple," but his little friends are much more graphics-oriented.)

There is one difference, though: Where Mr. Tidbit found them, the box of Jell-O sold for 67 cents; the Kool-Aid gelatin was 73 cents. That's 9 per cent more.

MORE NICE RICE
A few weeks ago, Mr. Tidbit discussed his somewhat delayed discovery of Uncle Ben's new basmati rice and jasmine rice, which cook in 10 minutes (and Uncle Ben's two-serving Ready Rice versions of basmati and jasmine rice, which microwave in 90 seconds and are so old that the packages don't even say "new"). He marvelled that the once-exotic rices had begun turning up as brand-name staples.Since then, he discovered that he had still failed to notice several other related brand-name products, not one of which apparently is new. There's Uncle Ben's Ready Rice brown basmati rice, and entries from two other rice purveyors:

Success Rice sells jasmine and basmati rice in 14-ounce boxes (eight boil-in-bag servings) at essentially the same per-ounce price as the Uncle Ben's 10-minute products.And there's Minute Rice jasmine rice in a two-pack of single-serving microwave tubs. Where he found it, it's a little cheaper than the Uncle Ben's microwave products. But all the microwave rices are much more expensive per serving than any of the rices that require you to get out a pan. Serving sizes are inconsistent, but the cost of a serving of one of the microwaved aromatic rices is roughly triple that of one of the you-boil-it versions.
Minute Rice apparently also sells boil-in-the bag jasmine and basmati rices, but Mr. Tidbit hasn't found them on the shelf anywhere. Yet.
Star Tribune (Minneapolis)


APEDA NEWS (INDIA)

Price on: 18-06-2015
Product
Benchmark Indicators Name
Price
Apricots
1
Turkish No. 2 whole pitted, CIF UK (USD/t)
5975
2
Turkish No. 4 whole pitted, CIF UK (USD/t
5375
3
Turkish size 8, CIF UK (USD/t)
4375
Raisins
1
Californian Thompson seedless raisins, CIF UK (USD/t)
2658
2
South African Thompson seedless raisins, CIF UK (USD/t)
2292
Sultanas
1
Australian 5 Crown, CIF UK (USD/t)
3044  
2
Iranian natural sultanas (Gouchan), CIF UK (USD/t)
1878
3
Turkish No 9 standard, FOB Izmir (USD/t)
2150
Source:agra-net
For more info
Market Watch
Commodity-wise, Market-wise Daily Price on 18-06-2015
Domestic Prices
Unit Price : Rs per Qty
Product
Market Center
Variety
Min Price
Max Price
Barley (Jau)
1
Dahod (Gujarat)
Other
1200
1300
2
Kota (Rajasthan)
Other
1101
1200
3
Satna (Madhya Pradesh)
Other
1111
1185
Maize
1
Dhing (Assam)
Other
1350
1500
2
Samrala (Punjab)
Other
1025
1150
3
Amreli (Gujarat)
Other
1555
2000
Mousambi
1
Aroor (Kerala)
Other
3500
3700
2
Vikasnagar (Uttrakhand)
Other
2000
2000
3
Mechua (West Bengal)
Other
2400
2900
Brinjal
1
Chala (Kerala)
Other
3200
3250
2
Bargarh (Orissa)
Other
1200
1400
3
Shillong (Meghalaya)
Other
1600
2000
Source:agra-net
For more info
Egg
Rs per 100 No
Price on 18-06-2015
Product
Market Center
Price
1
Pune
435
2
Nagapur
410
3
Namakkal
420
Source: e2necc.com
Other International Prices
Unit Price : US$ per package
Price on 17-06-2015
Product
Market Center
Origin
Variety
Low
High
Onions Dry
Package:50 lb sacks
1
Atlanta
Mexico
Yellow
23
24
2
Baltimore
California
Yellow
28
28
3
Dallas
Texas
Yellow
21
24
Cabbage
Package: 50 lb cartons
1
Atlanta
Florida
 Round Green Type
14
14
2
Detroit
Texas
 Round Green Type
13
13.50
3
Miami
Georgia
 Round Green Type
12
14
Apples
Package: cartons tray pack
1
Atlanta
Washington
Red Delicious
24
24
2
Detroit
Washington
Red Delicious
23.50
26
3
Miami
Washington
Red Delicious
28
28
Source:USDA

Pakistan to draft GI law

It aims at bring international distinction to indigenous Pakistani products

Description: 859587-PakChinariceexportpicturecopy-1427404845-317-640x480As the negotiators in Geneva, last month, approved a revised international registration system providing protection for names that identify the geographic origin of products such as coffee, tea, fruits, wine, pottery, glass and cloth, Pakistan also plans to enact a Geographical Indication Law (GI law) to bring international distinction to indigenous Pakistani products.Minister for Commerce Khurram Dastgir Khan said on Thursday that the GI law would be enacted for the registration of Pakistani products having unique attributes for recognition at the international level.

The GI is a concept of international trade which associates a certain product to a specific location thus identifying its originality and uniqueness. Such an indication to any product distinguishes it from the rest of same kind thus bringing premium to its price.Dastgir said directions had been issued to the ministry of commerce to initiate coordination with the concerned stakeholders of the intellectual property organisation Pakistan, ministry of national food security and research, concerned provincial departments and private sector. He said the GI law was needed and would enhance visibility of several Pakistani export items in the international market.The government has remained under pressure from the basmati growers and exporters since the start of this millennium to enact the GI law to oust India from the basmati market. However, the commerce ministry and ministry of agriculture failed to enact the law.

Pakistan possesses several such products which have distinctive attributes through which they can make a niche in the international market once they are certified as GI. Basmati rice, Chaunsa mango, Hunza apricot, Peshawari chappal, Sindhi ajrak are among the top Pakistani products which will get international recognition under the GI law.Experts are of the opinion that if Pakistan enacts the law then export of Pakistani products like basmati rice and fruits will pick up in near future which at present are under a lot of pressure from India. Absence of GI law has led to the failure of investment in the basmati rice processing, especially in Punjab, during the last decade, even though initially it was projected that the new investment along with GI certification will open new markets in Middle East, Far East, Europe and North America.

It is important to mention a diplomatic conference in Geneva on May 21, 2015, which adopted the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications. The Geneva Act allows the international registration of GIs, in addition to appellations of origin, and permits the accession to the Lisbon Agreement by certain intergovernmental organisations. The new GI agreement drafted by the World Intellectual Property Organisation will lead to new era of trade of GI products.

http://www.pakistantoday.com.pk/2015/06/18/business/pakistan-to-draft-gi-law/


Rice millers threaten agitation against 'corrupt practices' in FCI
HT Correspondent, Hindustan Times, Moga
Updated: Jun 18, 2015 21:36 IST

The Punjab Rice Millers Association (PRMA) has warned that if 'corrupt practices' did not stop in the Food Corporation of India (FCI) during the coming paddy season, then the rice millers would boycott the milling process and start a state-wide agitation.
The PRMA alleged that the authorities of the FCI were not showing any interest to check corruption in the procurement system though the Union government has taken it seriously.Addressing a state-level meeting here on Thursday, Tarsem Saini, state president of the PRMA, said that there was no doubt that the Union government had formed some best policies for purchasing and storing of foodgrains, however, at the ground level, the policies are not being implemented.

He said the FCI had issued a circular that while accepting the custom-milled rice, the authorities would record the weight of only 10% of the delivery for acceptance and storage of the stock in the warehouses. "But, the FCI is not willing to record the weight of the whole consignment of rice even as the computerised weighing machines are available with them at their warehouses," said Saini.During the meeting, the rice millers said that now Adesh Partap Singh Kairon, minister for food and civil supplies, has agreed to allocate and distribute paddy in a uniform way to the millers by constituting sub-committees at the local level so as to end corruption in the allotment of paddy quota to the millers.

"Under this concept, we are going to set up special committees at the district level across the state to check corrupt practices during the period of paddy allocation," he said.Rice millers raised their voice against the FCI and said that, in most cases, bribe is demanded from millers for acceptance of the stock and for quality assurance.PRMA leaders said, "FCI authorities also blackmail rice milers on the pretext of quality checking of the stored rice and by conducting tests in FCI laboratories. The union government has recently set up the Central Grain Analysis Laboratory (CGAL) at New Delhi and all the samples of disputed cases must be referred to it and the report of this laboratory should be considered final."

http://www.hindustantimes.com/bathinda/rice-millers-threaten-agitation-against-corrupt-practices-in-fci/article1-1360325.aspx

Vermont's GMO labeling law could cost grocers up to $10 million per day in fines

Description: Associated Press
·         WILSON RING, ASSOCIATED PRESS
·         JUN. 18, 2015, 10:46 PM
Erik De Castro / ReutersA scientist shows "Golden Rice" (R) and ordinary rice at the International Rice Research Institute in Los Banos, Laguna south of Manila, August 14, 2013.

Description: golden rice gmo beta-carotene vitamin aMONTPELIER, Vt. (AP) — Vermont's first-in-the-nation law requiring the labeling of foods made with genetically modified organisms could cost the nation's grocers up to $10 million a day in fines, according to a letter from an industry organization that is suing the block the law.The letter to Gov. Peter Shumlin from the head of the Grocery Manufacturers Association, dated Wednesday, said companies could be fined up to $1,000 a day per unlabeled item — a can of soup or a box of cereal, for instance — that mistakenly ends up on store shelves. The law is due to take effect next year.

"Even with the best of intentions, excellent supply chain logistics and herculean efforts, product will be in the wrong place at any given time, resulting in millions upon millions of dollars in potential fines," said GMA President Pamela G. Bailey.She estimated more than 100,000 items sold in the state would require Vermont-specific labels, a companies could quickly amass millions in fines if only 5 to 10 percent of products slip through.Shumlin had a clear response Thursday: "Just label your products. All of them nationwide."He said labeling foods with genetically modified organisms — which can include food made from seeds that were originally engineered in laboratories to have certain traits, like resistance to herbicides — is already required by 64 countries.

"The industry's real concern is that as goes Vermont so will go America," Shumlin said. "Plain and simple Vermont's law is about giving consumers the right to know what is in their food. For too long consumers in America have been denied that right."Bailey said members of the association have determined that changing labels to comply with Vermont's law will cost more than they earn selling their products in the state."A $10 million per day fine to comply with the labeling law of the second smallest state in the Union is hugely problematic for an industry that employs 14 million U.S. workers and represents the largest sector of manufacturing," she said.
Description: GMO foodREUTERS/Mark BlinchA protester holds a sign reading "Ban GMO" (Genetically Modified Organism) in the "March Against Monsanto" in Toronto, May 24, 2014.A proposal pending in Congress would block mandatory GMO labeling efforts such as Vermont's and others being considered by a number of states. The bill, introduced by Rep. Mike Pompeo, R-Kan., provides for voluntary certification from the U.S. Department of Agriculture.Much of the country's corn and soybeans are genetically modified, with much of that going to animal feed. GMO corn and soybeans can also be made into popular processed food ingredients like high-fructose corn syrup and soybean oil.The Vermont law calls for labeling processed GMO foods and for retailers to post signs on displays of unpackaged genetically engineered foods. It also sets a civil penalty of $1,000 per day per product.

Throughout the legislative and legal debate on GMO labeling, industry groups have argued there is no difference between foods made with GMOs and other foods.The Grocery Association argues in its federal lawsuit to block the law that the First Amendment gives them broad discretion about what to include on their labels and that there's no compelling state interest to offset that.The legal case is pending.Bailey acknowledged in her letter the association is trying to block the law in court, but until that happens it is working to comply."We would appreciate the opportunity to work cooperatively with the state to minimize the liability that almost certainly will arise despite the best efforts of the GMA member companies, as well as others in the industry," the letter said.


In Memory:  Wayne N. Zaunbrecher      

Wayne Zaunbrecher
USA Rice is deeply saddened by the passing of longtime Louisiana rice leader Wayne N. Zaunbrecher, 76, who died on Wednesday, June 17, 2015.   Mr. Zaunbrecher was a rice and cattle producer who worked with his brother Floyd on the family farm.  He served as treasurer of the Louisiana Rice Promotion Board and was on the Louisiana Rice Council Board of Directors.  A native of Gueydan, Louisiana, Mr. Zaunbrecher was a loving husband, father, grandfather and great-grandfather.  Survivors include his wife of 54 years, Linda Guidry Zaunbrecher, who serves on the USA Rice Producers' Group Board, daughters Alison and Andrea, and their families. Visitation will be at Vincent Funeral Home, 311 Fourth Street, Gueydan, Louisiana, 70542.  Visiting hours are 1 p.m. to 10 p.m., with a rosary at 7 p.m., on Thursday, June 18, and on Friday, June 19, from 9 a.m. until funeral services at a 3 p.m.  Mass of Christian Burial at St. Peter the Apostle Roman Catholic Church, 603 Main Street, Gueydan, Louisiana, 70542.  Memorial donations can be made online or by check to the LSU Foundation atlsufoundation.org or to Vermilion Parish Farm Bureau for a scholarship fund.USA Rice extends heartfelt condolences to the family and friends of Wayne Zaunbrecher


Rural Town Halls to Spotlight Presidential Candidates      
 
RFD-TV's Patrtick Gottsch (l) and Orion Samuelson 
WASHINGTON, DC -- RFD-TV announced this week their intention to produce a series of live, one-hour televised town halls with presidential candidates to focus exclusively on issues important to the rural and agricultural communities."When we launched RFD-TV fifteen years ago we intended for it to serve the needs of rural America and to connect rural and urban audiences," said Patrick Gottsch, founder and president of RFD-TV and Rural Radio, at a press conference here.  "We're taking a major step towards reconnecting the rural and urban audiences with these town halls.

"As the divide between rural and urban grows wider each year, and fewer people have an understanding of where their food comes from, and what it takes to grow it, the sessions could help bridge an important gap."I grew up on a dairy farm in Wisconsin milking cows, and my children always had farms to visit. My grandchildren do not have farms to visit," said Orion Samuelson a famed rural broadcaster who will host and moderate the town halls.   "I'm looking forward to discussing the politics of agriculture with the people who want to be President of the United States."Gottsch and Samuelson said they see the town halls as an opportunity to educate candidates on rural issues as well as provide them an opportunity to share their vision with the engaged, voting rural audience."We're going to send the candidates a list of about 200 questions that may come up - we want a good dialogue - we're not trying to embarrass anyone," said Samuelson.  "We also hope to have a studio audience providing questions, and email questions from viewers at home too."

Gottsch said he doesn't want to ask any of the questions the urban media ask the candidates, but rather will focus on issues such as water use, immigration, animal rights, the use of pesticides and antibiotics in farming, and other vital rural issues."This seems like an excellent opportunity to spend quality time on very specific, nuts and bolts issues with men and women vying for the most important job in the world," said Michael Klein, vice president of communications for USA Rice.  "We're going to work with our friends at RFD-TV to try to get some rice specific questions in front of these candidates.""Rural Town Hall" will be recorded at locations around in Iowa and at RFD-TV studios in Nashville and will premiere in July on Mondays at 8pm eastern and Thursdays at 10pm eastern.  RFD-TV can be seen on DirecTV (channel 345), DISH Network (channel 231), and through some other rural cable providers.  Check with your system provider or log on to RFDTV.com for more details.

Contact:  Deborah Willenborg (703) 236-1444
Weekly Rice Sales, Exports Reported        
WASHINGTON, DC -- Net rice sales of 32,300 MT for 2014/2015 were down 11 percent from the previous week and 15 percent from the prior four-week average, according to today's Export Sales Highlights report.  Increases were reported for Mexico (10,400 MT), Costa Rica (9,700 MT, including 8,200 MT switched from unknown destinations), Japan (7,600 MT), Guatemala (6,900 MT, including 5,000 MT switched from unknown destinations), and El Salvador (5,000 MT, including 5,600 switched from unknown destinations and decreases of 600 MT).  Decreases were reported for unknown destinations (18,700 MT) and Taiwan (4,900 MT).  Net sales reductions of 100 MT for 2015/2016 were reported for Japan.  Exports of 53,600 MT were down 48 percent from the previous week and 31 percent from the prior 4-week average.  The primary destinations were Mexico (14,100 MT), Saudi Arabia (13,700 MT), Costa Rica (8,300 MT), Guatemala (6,600 MT), and El Salvador (5,300 MT).This summary is based on reports from exporters from the period June 5-11, 2015. 


CME Group/Closing Rough Rice Futures   
CME Group (Prelim):  Closing Rough Rice Futures for June 18
Month
Price
Net Change

July 2015
$9.815
+ $0.085
September 2015
$10.065
+ $0.090
November 2015
$10.335
+ $0.085
January 2016
$10.595
+ $0.080
March 2016
$10.800
+ $0.095
May 2016
$10.800
+ $0.095
July 2016
$10.800
+ $0.095

 

Good rice crop

Posted: Jun 17, 2015 2:55 PM PDTUpdated: Jun 17, 2015 2:55 PM PDT
 
Ben McKnight, LSU AgCenter research associate and doctoral student, talks about research with an aquatic weed herbicide, benzobicyclon, made by Gowan. (Photo by Bruce Schultz, LSU AgCenter)
Description: Ben McKnight, LSU AgCenter research associate and doctoral student, talks about research with an aquatic weed herbicide, benzobicyclon, made by Gowan. (Photo by Bruce Schultz, LSU AgCenter)
CROWLEY, La. – Unusually excessive rainfall and cloudy days have been a challenge for growing rice, but it's too early to become pessimistic about this year's crop, according to the director of the LSU AgCenter Rice Research Station.“We've still got the potential for a good crop,” said Steve Linscombe, also a rice breeder, talking at the Acadia Parish rice field day held Tuesday (June 16).Linscombe said the silver lining to the cloudy weather has been mild night temperatures that foster good rice development.

He said the long-term forecast calls for moderate night temperatures.He said blast disease is a concern with the wet weather, especially for Jupiter and CL151 varieties that will require fungicides.Linscombe also said he is optimistic that an agreement to sell rice to China is close to being finalized, and that could boost rice prices. “They want U.S. rice,” he said.Water and soil contamination issues in China have caused some consumers there to look to U.S. rice as a safer alternative to the domestically produced product, he said.LSU AgCenter economist Kurt Guidry said just talk of a big corn purchase by China has driven prices up by 30 cents to 50 cents a bushel.Guidry said the long-term forecast for rice is not encouraging, but a possible acreage reduction in Arkansas could help reduce rice stockpiles.Prices are low because of low demand and high supply, he said.Exports of long-grain rice are up by 9 percent from last year, Guidry said. “They just haven't been good enough to support a price increase.”


Exports of medium-grain rice have dropped by a fourth to a third from last year, and the medium-grain prices have fallen, Guidry said.The low prices could mean that rice farmers enrolled in the Price Loss Coverage program in the current farm bill could receive as much as $93 to $103 per acre, he said.Rice farmers got the chance to hear from Adam Famoso, the new rice breeder at the Rice Research Station. He was a rice researcher for Dupont Pioneer in Iowa before joining the LSU AgCenter.“I think Adam is going to be a very valuable addition to our team,” Linscombe said.Linscombe said he has a medium-grain Clearfield line in development that could be accepted by Kellogg's.

He also has 18 lines of the Provisia rice that probably will result in one or two candidates that could become a variety.He also has a Clearfield long-grain line with the yield potential of CL151 and better resistance to blast and lodging with improved grain quality. The line, LA2134, could be a release for 2016, and a 20-acre seed increase is being grown now at the Rice Research Station.AgCenter weed scientist Eric Webster said this year's wet weather has caused problems with the use of the herbicide Prowl in rice that has been broadcast seeded. The seeding method doesn't result in uniform seed-to-soil contact and remains in the wet conditions and it develops a root system slowly.Webster said the rice weed program has 70 trials at the Rice Research Station and at the LSU AgCenter Northeast Research Station near St. Joseph.

Ben McKnight, Webster's research associate and a doctoral student, talked about the use of benzobicyclon for aquatic weeds. He said the Gowan product is probably the best material available for ducksalad.AgCenter soybean specialist Ron Levy said the rainy weather has caused problems for many farmers. But in northeast Louisiana, some fields have required irrigation, while some soybeans in northwest Louisiana along the Red River have been flooded.Elsewhere, rainy weather has prevented many farmers from planting soybeans. “In southwest Louisiana we probably have the worst conditions,” Levy said.More herbicide-resistant soybeans are becoming available, he said. “They are going to be the future of soybean production.”Guidry said soybean prices have fallen because of a large supply, but demand in China remains high.


http://www.ktbs.com/story/29346132/louisiana-still-has-potential-for-a-good-rice-crop?utm_source=USA+Rice+Daily%2C+June+18%2C+2015&utm_campaign=Friday%2C+December+13%2C+2013&utm_medium=email


SME EXPORT HOUSE MUCH NEEDED TO PROMOTE SMES

           
The Union of Small and Medium Enterprises ( UNISAME ) has urged S.M.Munir CEO of Trading Corporation of Pakistan ( TDAP )  to set up the promised SME Export House from export development funds on the premises to be vacated by the Rice Exporters Association of Pakistan ( REAP ) due to disbandment of the Quality Review Committee ( QRC ) by the end of the fiscal year before 30th June 2015 positively as reportePresident UNISAME Zulfikar Thaver said REAP had purchased properties in  Karachi and Lahore for its own offices from QRC funds which it is obliged to return as it is public funds and belongs to the state and cannot be in the ownership of REAP under any circumstances
REAP had wrongfully got the transfer in its name instead of TDAP and objections have been raised by the relavent authorities who are at a loss to understand as to who gave them the permission to purchase immovable property in the name of a trade body.In fact it is believed the auditors would also report the discrepency in the audit which is being conducted would also pinpoint the questionIt would therefore be appropriate if REAP returns its offices in Karachi and Lahore to TDAP gracefully and rent out premises for itself rather than continue to use property purchased with public funds unlawfully without lawful permissionThe premises would be best suited for an SME Export House with modern facilities for SMES and supported with Internet network for SME Gallery with expertise of SMEDA. It would be an ideal utilization of property rightfully  belonging to the state.Thaver reminded the TDAP to expedite the SME Export House for which preliminary work was done and a steering committee was formed with experts by TDAP.He said TDAP could join hands with the Small and Medium Enterprises Development Authority ( SMEDA ) who has also done preliminary work as the SME Export House is promised in the SME policy.


APEDA NEWS (INDIA)

Price on: 17-06-2015
Product
Benchmark Indicators Name
Price
Apricots
1
Turkish No. 2 whole pitted, CIF UK (USD/t)
5975
2
Turkish No. 4 whole pitted, CIF UK (USD/t
5375
3
Turkish size 8, CIF UK (USD/t)
4375
Raisins
1
Californian Thompson seedless raisins, CIF UK (USD/t)
2658
2
South African Thompson seedless raisins, CIF UK (USD/t)
2301
3
Indian Cochin, CIF NW Europe (USD/t)
3000
Sultanas
1
Australian 5 Crown, CIF UK (USD/t)
3010  
2
Iranian natural sultanas (Gouchan), CIF UK (USD/t)
1817
3
Turkish No 9 standard, FOB Izmir (USD/t)
2175
Source:agra-net
For more info
Market Watch
Commodity-wise, Market-wise Daily Price on 17-06-2015
Domestic Prices
Unit Price : Rs per Qty
Product
Market Center
Variety
Min Price
Max Price
Rice
1
Cachar (Assam)
Other
2000
2500
2
Bargarh (Orissa)
Other
2400
2500
3
Saharsa (Bihar)
Other
2100
3400
Wheat
1
Dhing (Assam)
Other
1550
1700
2
Amirgadh (Gujarat)
Other
1300
1625
3
Bonai (Orissa)
Other
1450
1600
Mango
1
Harippad (Kerala)
Other
2000
2500
2
Bonai (Orissa)
Other
1000
2000
3
Mechua (West Bengal)
Other
1600
2000
Cucumbar
1
Aroor (Kerala)
Other
2200
2400
2
Bolangir (Orissa)
Other
2800
3000
3
Kharupetia (Assam)
Other
1000
1200
Source:agra-net
For more info
Egg
Rs per 100 No
Price on 17-06-2015
Product
Market Center
Price
1
Ahmedabad
404
2
Mysore
434
3
Nagapur
410
Source: e2necc.com
Other International Prices
Unit Price : US$ per package
Price on 17-06-2015
Product
Market Center
Origin
Variety
Low
High
Onions Dry
Package:50 lb sacks
1
Atlanta
Mexico
Yellow
23
24
2
Baltimore
California
Yellow
28
28
3
Dallas
Texas
Yellow
21
24
Cabbage
Package: 50 lb cartons
1
Atlanta
Florida
 Round Green Type
14
14
2
Detroit
Texas
 Round Green Type
13
13.50
3
Miami
Georgia
 Round Green Type
12
14
Apples
Package: cartons tray pack
1
Atlanta
Washington
Red Delicious
24
24
2
Detroit
Washington
Red Delicious
23.50
26
3
Miami
Washington
Red Delicious
28
28
Source:USDA

Food prices increase ahead of Ramazan

KARACHI: The price of gram flour (baisin) has touched new peak of Rs120 from Rs90-93 per kg last month owing to its rising demand ahead of Ramazan.
Description: Among other commodities, prices of fruits, vegetables,  sugar, pulses and rice also witnessed an increase. &mdash;APP/FileAmong other commodities, prices of fruits, vegetables, sugar, pulses and rice also witnessed an increase.The price list issued by the Commissioner of Karachi, which is effective from June 16-30, 2015, carries the gram flour retail price of Rs58 per kg.Last month, gram pulse was available at Rs85 per kg which rose to Rs90 per kg in May and since then it maintains an upward trend.Now gram pulse rate hovers between Rs100 and Rs110 per kg in various areas but the commissioner is forcing the retailers to sell it at Rs58 per kg.

Sugar price now ranges between Rs62 and Rs64 per kg as compared to Rs60 per kg last month. The current official rate of sugar is Rs61 per kg.Kabuli channa white and black are priced at Rs100 and Rs120 per kg as compared to their control rate of Rs75 and Rs55 per kg, respectively. Last month these items were available below Rs100 per kg in retail.Syrups and juices, which are widely used in Ramazan, are being sold in black, and consumers are paying Rs10 more on various brands.Retailers said the companies have not increased prices but due to tight supply and high demand, wholesalers are demanding Rs1,760 for 12 bottles of Rooh-i-Afza (800ml) for the last three days as compared to Rs1,680. Jam-i-Shireen carton is available at Rs1,760 as compared to Rs1,700.

As a result, 800ml bottle of Rooh-i-Afza and Jam-i-Shireen is being sold at Rs160 as compared to Rs150 a few days back.Overcharging is also rampant on 1.5 litre bottles as wholesalers are selling six-bottle pack at Rs1,620 as compared to Rs1,520. Retailers are charging Rs280 for 1.5 litre bottle as compared to Rs270.Pulses: Moong has further become costlier and is being sold at Rs180 per kg. Its official rate is Rs132.The official rate of masoor is Rs109, but retailers are charging Rs140-150 per kg. Mash is selling for Rs180 per kg but its official rate is Rs132.Traders have expedited pulses imports in view of demand and supply gap in some items.According to figures of Pakistan Bureau of Statistics (PBS), import of overall pulses during July-April 2014-15 went up to 525,622 tonnes ($322 million) as compared to 390,742 tonnes ($240 million) in the same period of the last fiscal year.

The official rate of kernal basmati rice is Rs127 per kg but retailers are demanding over Rs140-150.The official rates of various varieties of rice vary and there is a difference of Rs20 to 40 in their prices.The price list has been issued with the consultation of Karachi Wholesalers Grocers Association, Jodia Bazaar Traders’ Association, Karachi Retail Grocers Group, Bureau of Supply and Prices, Consumers’ Associations and civil society, but a vast gap exists between official and market rates.Retailers are of the view that if Karachi administration assures supply of items at officially fixed rates, they would have no problem in demanding official price from consumers.
Published in Dawn, June 18th, 2015



MSP hike no worry; basmati output to rise 5-7%


Kohinoor The short rain prediction by the Indian Meteorological Department (IMD) is not going to affect Kohinoor adversely as farmers in Punjab UP and Haryana were competent enough to face a situation like that of short rains or drought, Satnam Arora, Managing Director, Kohinoor Foods told CNBC-TV18.  1 0Google +0 0 Midcap Radar 01:30 pm The Rs 50 rise in Minimum Support Price (MSP) for paddy is not a concern for Kohinoor Foods  . Speaking to CNBC-TV18, Satnam Arora, Managing Director, Kohinoor Foods, says the company’s major export product is basmati rice, with non-basmati products contributing only 7-8 percent to its revenues.

“This hike in MSP will make non-basmati rice expensive by USD 30, internationally,” he said He says the less rainfall prediction by the Indian Meteorological Department (IMD) is not going to affect the company adversely as farmers in Punjab, UP and Haryana are competent enough to face a situation like that of less rains or drought. The overall production of rice will be perfect and basmati production will be 5-7 percent more than last year, Arora said. The company’s prices will adjust internationally in the global market, despite the hike, as the prices were lucrative and competitive for its customers, he further added. Hailing the government's move to increase the MSP of paddy, Arora says: “Cost of farmers has gone up and we have to support our farmers.” Below is the edited transcript of Satnam Arora’s interview with Mangalam Maloo and Reema Tendulkar on CNBC-TV18. Mangalam: Do you see any impact in the proposed hike of about Rs 50 in paddy which comes up to about 3.5 percent?

A: This Rs 50 is good for the farmer but business wise the price of rice will go up. We do a little non-basmati rice so it will affect our pricing in the international market. We will be expensive by almost USD 30 and in case international price can afford it then we will definitely ship it. Whereas on Kohinoor it does not have a large impact because our non-basmati exports are very les compared to basmati. Reema: Can you give us the percentage, the contribution on non-basmati to your revenues? A: Non – basmati is almost 7-8 percent in comparison to our basmati business. Mangalam: We were also taking about rains, the MET department has indicated that there is an 88 percent probability of lesser rains but in the first 5-6 days of the monsoon it has said that there has been 13 percent above normal so what do you make of the rains and will there be an impact on the crops of basmati rice this year?

A: In my view it is not going to affect adversely to the basmati farming because mostly all the farmers in Punjab, UP, Haryana they have their other arrangements also so in case of any short rain basmati will not be affected because they are quite competent to face all this droughts. The rain so far looks normal in our area. In our view it will not affect adversely to our basmati farm. Reema: Generally not just basmati but the productions of rice this year how much will it be and you don’t expect any shortage or short fall because of the monsoon? A: In my view the overall production of rice will be perfect and even in basmati rice, it may grow by 5-7 percent but it will not be down in comparison to the last year. Reema: So last year basmati production you said was down but this year you are expecting it to be 5-7 percent? A: More than last year and the other thing is we expect much bigger business in basmati this year also because prices are very competitive and it is very attractive and lucrative to our customers and they will definitely buy larger quantities this year comparison to last year.

 Mangalam: Were we to see a hike or a rise in Basmati rice prices will go be able to pass it on to your customers going forward or perhaps you will take a hit on your margins then? A: Basmati rice price, it is every day game. Every day we buy and every day we sell and the customer is aware of it. So, the rice is sold only on the regular prices; so it is a regular business nobody will take the hit neither the customers nor Kohinoor Foods. Why should be take a hit in case our customer is ready to pay more price. Moreover in branding we always charge some better margins on it so that it is good for organisation. Reema: The MSP price hike that we are picking up from our sources at 3.7 percent would that be in line with what the market or industry was expecting?

A: The costs of the farmers have also gone up and what the government has done is very good. We have to support our farmers also. In international market the prices will also jump so it will adjust into the market pricing so adversely it is not going to affect our rice industry. Kohinoor Foods stock price On June 19, 2015, Kohinoor Foods closed at Rs 43.65, down Rs 0.15, or 0.34 percent. The 52-week high of the share was Rs 63.85 and the 52-week low was Rs 38.80. The latest book value of the company is Rs 117.06 per share. At current value, the price-to-book value of the company was 0.37.


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