Friday, November 13, 2015

13th November 2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

Cambodia 2015 Wet-Season Paddy Yields to Decline Slightly Due to Drought, But Won't Affect Exports, Say Agriculture Officials

Nov 12, 2015

Cambodia 2015 paddy yields from the on-going wet-season rice crop are expected to be slightly below last year due to drought but the decline is not likely to impact exports, Khmer Times quoted a report from the Ministry of Agriculture.
The harvest of the wet-season rice crop will end this month and rice will be harvested from about 2.55 million hectares of land, about 99.53% of the targeted 2.56 million hectares, according to the report. The average yield is expected to be at around 3 tons per hectare.
The Deputy Director of the General Department of Agriculture told local sources that this year's target production is almost met despite prevailing drought conditions. “Cambodia has an extra 4 million tons of rice in stock after domestic consumption. As a result the loss of about 2,455 hectares [of rice to drought] this year is not a problem. This will not affect exports,” the official said.
Some farmers noted that they are continuing to grow rice for the dry season despite lower yields and lower prices. One of the farmers told reporters that the price received by farmers has gone down by about $50 per ton this year from around $300 per ton last year.
The Ministry is also encouraging farmers to plant rice during the dry season to compensate for any losses from the wet-season crop. “We have reserve rice seeds for farmers,” said the Deputy Director of the General Department of Agriculture. “In locations that are not favorable for growing rice and do not have enough water in the dry season, we will provide seeds for other crops because we don’t want to see farmers go hungry due to natural disaster,” he added.
The Agriculture Ministry has been reportedly encouraging farmers to maintain quality in line with the export standards. 
USDA estimates Cambodia to produce about 4.7 million tons of rice in MY 2014-15 (January - December 2015), down from an estimated 4.725 million tons in MY 2013-14. It estimates Cambodia export 1.1 million tons of rice (including official and unofficial exports to Vietnam and Thailand through borders) in 2015, up from an estimated 1 million tons in 2014.

Government of Bangladesh Announces 2015 Aman Procurement Prices for Rice

Nov 12, 2015

The government of Bangladesh is planning to procure 200,000 tons of 2015 Aman (July - December) rice from millers between December 15, 2015 and March 15, 2016, according to local sources.
The Food Minister was quoted as saying at a press briefing that the government has fixed the procurement price for Aman rice at Tk 31 per kilogram (around $388.5 per ton). He noted that the production cost of Aman paddy is around Tk 18.5 per kilogram (around $232 per ton) and that of milled rice is around Tk 28.5 per kilogram (around $357 per ton).
He noted that the production costs increased by about 2.67% over last year, mainly due to  increase in prices of Aman seeds, wages of the labourers and milling charges.
The government procured 320,000 tons of 2014 Aman rice from millers at around Tk 32 per kilogram (around $401), according to data from the Food Ministry.
The Bangladesh government is also considering lowering prices for rice and flour under open market sale (OMS).
The Food and Agriculture Organization (FAO) estimates paddy rice output from the 2015 Aman rice crop at about 19.6 million tons, down about 1% from last year due to a decline of about 2% in acreage reflecting low domestic prices at sowing time. According to the Department of Agricultural Extension, 2015 Aman paddy was sown in around 5.26 million hectares.
USDA estimates Bangladesh’s MY 2015-16 (July 2015 – June 2016) milled rice production at around 34.6 million tons, slightly up from an estimated 34.5 million tons in MY 2014-15. It estimates Bangladesh to import around 1.2 million tons of rice in MY 2014-15 and about 600,000 tons in MY 2015-16.

Thai Deputy Prime Minister Reiterates Fairness in Rice Pledging Case

Nov 12, 2015

Thailand's Deputy Prime Minister has today reiterated that the rice pledging case against the former Premier Yingluck Shinawatra is receiving fair treatment from the government and is being dealt in compliance with the law, according to local sources.
The former Premier had yesterday appealed to the Prime Minister Prayut Chan-o-cha in an open letter on her Facebook page not to issue an administrative order seeking compensation for losses incurred in the rice pledging case introduced by her government. She noted in the letter that a civil lawsuit in the Court would give her an opportunity to defend herself whereas an administrative order would bypass courts. She emphasized that issuing an administrative order would mean rushing through the legal processes and not letting her prove her innocence.
Responding to the letter, the Deputy PM noted that the government has decided not to file the case against Ms.Yingluck in the Civil Court as it would have a statute of limitation. He stated that issuing an administrative order to seize assets of the former PM as compensation for the losses incurred in the rice pledging scheme is most appropriate as it would protect the interests of the general public.
He noted that there are no political motives behind the decision. He added that if Ms.Yingluck feels the use of an administrative order is not fair, she could appeal to the Administrative Court to revoke it.
Meanwhile, the government will begin reviewing the evidences related to the case from January 15, 2016 and would continue till November 18, 2016.
The former Prime Minister is facing charges of dereliction of duty in preventing multi-billion dollar graft in running the controversial rice pledging scheme introduced by her government in October 2011. The scheme is estimated to have caused losses to the extent of about 500 billion baht (around $14 billion) to the government. If proved guilty in the present case, she may have to face imprisonment for 10 years.

Vietnam's Large-Scale Field Model Proves Effective in Rice Production, Says MARD

Nov 12, 2015

The large-scale field model introduced by the government of Vietnam under the Decision No 62/2013 in 2013 to encourage large-scale fields is beginning to show effective results, especially in rice production, says the Ministry of Agriculture and Rural Development (MARD), according to local sources.
The model was aimed at encouraging co-operation and linkages in production and consumption of various farm products, including rice.
The MARD noted that the area under large-scale fields has increased significantly since the implementation of the model. Speaking at a review meeting, the Deputy Minister of Agriculture and Rural Development noted that the sea under the large-scale fields has crossed 550,000 hectares. He noted that model has been very effective especially in rice production. However, it is spreading to other crops as well, he said.
"The large-scale field became a site for collaboration and connection between enterprises and organisations representing farmers, for technology transfer and for providing public services, especially agricultural training," the junior Minister was quoted.
The Deputy Head of the Department of Co-operative Economy and Rural Development noted that some companies have signed production and consumption contracts with farmers under the large-scale field model and have created a steady source for production inputs as well as a steady source of income for them. This model is encouraging farmers to join hands and thereby increase yields and reduce costs, he said.
However, some experts noted that the model suffers with some drawbacks such as lack of funds for developing large-scale fields, lengthy procedures for assistance as well as poor production infrastructure. Some experts noted that the model is more useful for rice and not for other crops. They suggested the government should consider some changes in the model.
Currently, large-scale fields reportedly account for only 4% of the country's total cultivable area of around 10.8 million hectares. Rice area accounts for around 7.8 million hectares, according to the USDA.

Thailand, Pakistan Rice Sellers Alter Some of Their Quotes Today; Other Asia Rice Export Quotes Remain Unchanged

Nov 12, 2015

Thailand rice sellers have increased their quotes for 100% B, 5% broken, A1 Super and parboiled rice varieties by $5 per ton each to around $365 - $375 per ton, $355 - $365 per ton, $325 - $335 per ton and $355 - $365 per ton respectively today. They increased their quotes for glutinous rice by about $35 per ton to around $710 - $720 per ton. Pakistan rice sellers lowered their quotes for 5% broken rice variety by about $5 per ton to around $315 - $325 per ton. India rice sellers are out due to a public holiday. Other rice quotes remain unchanged today.
5% Broken Rice
Thailand 5% rice is indicated at around $355 - $365 per ton about $15 per ton discount on Vietnam 5% rice shown at around $370 - $380 per ton. India 5% rice is indicated at around $345 - $355 per ton, about $30 per ton premium on Pakistan 5% rice shown at around $315 - $325 per ton.
25% Broken Rice
Thailand 25% rice is indicated at around $345 - $355 per ton, about $10 per ton discount on Vietnam 25% rice shown at around $355- $365 per ton. India 25% rice is indicated at around $325 - $335 per ton, about $35 per ton premium on Pakistan 25% rice shown at around $290 - $300 per ton.
Parboiled Rice            
Thailand parboiled rice is indicated at around $355 - $365 per ton. India parboiled rice is indicated at around $340 - $350 per ton, about $65 per ton discount to Pakistan parboiled rice last shown at around $405 - $415 per ton.     

100% Broken Rice
Thailand broken rice, A1 Super is indicated at around $325 - $335 per ton, about $5 per ton discount to Vietnam 100% broken rice shown at around $330 - $340 per ton. India's 100% broken rice is shown at around $285 - $295 per ton, about $5 per ton premium on Pakistan broken sortexed rice shown at around $280 - $290 per ton.

Thailand to Export Over 9.5 Million Tons of Rice in 2016, Says TREA

Nov 12, 2015

The Thai Rice Exporters Association (TREA) is hopeful that the country would export between 9.5 to 10 million tons of rice in 2016 due to several pending purchase orders under government-to-government (G2G) contracts with the Philippines and China, according to local sources.
The Commerce Minister told last week that extending drought conditions are prompting many governments to import more rice and the situation presents a good opportunity for Thai rice exports and prices. She noted that the government is likely to sell more rice to Iran, Singapore and Hong Kong next year.
The TREA Chief is expecting the government to speed up sales of stockpiled rice next year. The Rice Policy and Management Committee has decided to delay sales of high-quality rice from the state stocks during the on-going harvest time to protect prices from falling.
The panel has approved sales of 2 million tons of rotten rice for industrial use.

New Study Highlights Relationship between Genetic Evidences and Origins of Rice Cultivation

Nov 12, 2015

A team of scientists from University of Manchester have undertaken a study to better understand the origin of rice cultivation, according to Reuters.
The study aims to help the scientific community to come up with a better collaboration between genetic and archaeological studies of rice domestication, says the lead scientist Professor Terry Brown.
Earlier studies proved that rice was domesticated twice. Researchers mostly focussed on Japonica and Indica because of their longest history of cultivation. Most of the studies show that Japonica was domesticated some 10,000 years ago in lowland Asia and Indica emerges as a hybrid form a little afterwards.
The new study shows that a third variety Aus was also domesticated separately between India and Bangladesh. The team studied 446 samples of different wild rice varieties to find common characteristics with Aus. They found that similar genes were present in a number of wild type rice varieties found in South Asia.
Now, farmers in Asia can select these wild varieties with specific characters and begin to cultivate them, says the team.
'Our conclusions are in accord with archaeological evidence that suggests widespread origins of rice cultivation. We therefore anticipate that our results will stimulate a more productive collaboration between genetic and archaeological studies of rice domestication,' said Prof.Brown.



Global Rice Quotes

November 12th, 2015
Long grain white rice - high quality
Thailand 100% B grade          365-375           ↑
Vietnam 5% broken    370-380           ↔
India 5% broken         345-355           ↔
Pakistan 5% broken    315-325           ↓
Myanmar 5% broken   405-415           ↔
Cambodia 5% broken             415-425           ↔
U.S. 4% broken           490-510           ↔
Uruguay 5% broken    535-545           ↔
Argentina 5% broken 530-540           ↔
Long grain white rice - low quality
Thailand 25% broken 345-355           ↔
Vietnam 25% broken 355-365           ↔
Pakistan 25% broken 290-300           ↔
Cambodia 25% broken           400-410           ↔
India 25% broken       325-335           ↔
U.S. 15% broken         500-510           ↔
Long grain parboiled rice
Thailand parboiled 100% stxd            355-365           ↑
Pakistan parboiled 5% broken stxd    405-415           ↔
India parboiled 5% broken stxd         340-350           ↔
U.S. parboiled 4% broken       590-610           ↔
Brazil parboiled 5% broken    545-555           ↔
Uruguay parboiled 5% broken            NQ      ↔
Long grain fragrant rice
Thailand Hommali 92%          785-795           ↔
Vietnam Jasmine         470-480           ↔
India basmati 2% broken        NQ      ↔
Pakistan basmati 2% broken   NQ      ↔
Cambodia Phka Mails             830-840           ↔
Brokens
Thailand A1 Super      325-335           ↑
Vietnam 100% broken            330-340           ↔
Pakistan 100% broken stxd    280-290           ↔
Cambodia A1 Super   355-365           ↔
India 100% broken stxd         285-295           ↔
Egypt medium grain brokens NQ      ↔
U.S. pet food 330-340           ↔
Brazil half grain          NQ      ↔

All prices USD per ton, FOB vessel, oryza.com

Contents are shared with permission of ORYZA.com with thanks

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