Tuesday, February 14, 2017

14th February,2017 daily global,regional and local rice e-newsletter by riceplus magazine

 

 

Thai rice worries Vietnamese exporters
Thailand’s plan to sell all its rice reserves of about eight million tonnes this year has sparked concerns that this move will undermine Viet Nam’s rice exports.

Customers buy rice at the Big C supermarket, Long Bien district, Ha Noi. Vietnamese rice businesses are now focusing on the domestic market instead of exports. 

Nguyen Van Don, director of Tien Giang-based Viet Hung Co Ltd, said rice exports were positive last month, with many contracts signed.
But starting early last week, trading tended to slow, he said, adding that his company has not had any new export contracts. He attributed this to the higher prices of Vietnamese rice compared to last month, and to Thailand’s plan to sell all of its rice stockpiles.
Dang Thi Lien, director of Long An Foodstuff Co Ltd, said the price of Vietnamese five per cent and 15 per cent broken rice was US$5-10 a tonne higher than the same kinds of Thai rice.
To compete with Thai rice, Vietnamese traders should lower their export price, but domestic rice prices are on the rise, even higher than export prices, making it hard for traders to compete abroad, she said.
Huynh The Nang, chairman of Viet Nam Food Association, said “It will be hard to compete with Thailand in exporting white rice due to our less competitive prices.”
Vietnamese firms previously exported a lot of white rice to Africa, but now firms are only exporting fragrant rice to the market, he said.
“Thailand’s determination to sell all of the rice in stockpiles in the first half of the year will continue to adversely affect Viet Nam’s rice exports. Viet Nam’s export rice prices are predicted to drop further this year. Only when Thailand’s rice stockpiles are sold out can the rice export market recover,” he said.
Domestic market
Viet Nam produces about 44-45 million tonnes of paddy a year, equivalent to 22-22.5 million tonnes of rice. Domestic consumption accounts for about 15-16 million tonnes a year, and the rest is for export.
Despite being one of the world’s largest rice exporters, Viet Nam’s high-grade rice segment is dominated by foreign brands.
Nang, who is also general director of the Viet Nam Southern Food Corporation (Vinafood 2), said many domestic rice enterprises have implemented strategies to promote their rice brands as well as boost consumption of their products in the home market.
Enterprises have established their own farm and production facilities and are focusing on improving the quality of their rice to international standards as well as building brands for their products.
Last December, Tien Giang Food Company introduced to the market four to five new rice brands, which are produced following hygiene and food safety standards and are able to enter the US market.
In the case of Song Hau Food Company, a member of Vinafood 2, thanks to actively promoting its rice brands and expanding its distribution system, the company last year doubled its domestic sales revenue from 2015, he said.
Other companies, such as Dong Thap Food Company and HCM City Food Joint Stock Company, have actively improved their distribution systems, he said.
Consumption volume of Vietnamese rice in the domestic market is expected to increase significantly in the coming time, especially as more and more rice is produced following hygiene and food safety standards.
In addition, programmes to enable consumers to trace the origin of rice will be sped up this year, he said.
Pham Minh Thien, director of Dong Thap-based Co May Private Enterprise, said: “We have a market of more than 90 million people. This is a very good foundation for us to deal with the supply and demand dynamic of the rice market.

http://english.vietnamnet.vn/fms/business/172502/thai-rice-worries-vietnamese-exporters.html



Thailand’s sale of rice stockpile worries Vietnamese exporters


February 14, 2017 01:00 
By VIET NAM NEWS ASIA NEWS NETWORK
HO CHI MINH CITY

THAILAND’S plan to sell all its rice reserves of about 8 million tonnes this year has sparked concerns that this will undermine Vietnam’s rice exports.

Nguyen Van Don, director of Viet Hung Co, said rice exports were positive last month, with many contracts signed. But starting early last week, trading tended to slow, he said, adding that his company has not had any new export contracts. He attributed this to the higher prices of Vietnamese rice compared with last month, and to Thailand’s plan to sell all of its rice stockpiles. 
Dang Thi Lien, director of Long An Foodstuff Co, said the price of Vietnamese 5 per cent and 15 per cent broken rice was US$5-$10 a tonne higher than the same kinds of Thai rice.To compete with Thai rice, Vietnamese traders should lower their export price, but domestic rice prices are on the rise, even higher than export prices, making it hard for traders to compete abroad, she said.Huynh The Nang, chairman of the Vietnam Food Association, said: “It will be hard to compete with Thailand in exporting white rice [because of] our less competitive prices.”
Vietnamese firms previously exported a lot of white rice to Africa, but now are only exporting fragrant rice to that market, he said.“Thailand’s determination to sell all of the rice in stockpiles in the first half of the year will continue to affect Vietnam’s rice exports adversely. Vietnam’s export |rice prices are predicted to drop further this year. Only when Thailand’s rice stockpiles are sold out can the rice export market recover,” he said.Vietnam produces about 44 million to 45 million tonnes of paddy a year, equivalent to 22 million to 22.5 million tonnes of rice. 
Domestic consumption accounts for about 15 million to 16 million tonnes a year, and the rest is for export.Despite being one of the world’s largest rice exporters, Vietnam’s high-grade rice segment is dominated by foreign brands.Nang, who is also general director of the Vietnam Southern Food Corporation (Vinafood 2), said many domestic rice enterprises had implemented strategies to promote their rice brands as well as boost consumption of their products in the home market.
Enterprises have established their own farm and production facilities and are focusing on improving the quality of their rice to international standards as well as building brands for their products.Last December, Tien Giang Food Company introduced to the market four to five new rice brands, which are produced following hygiene and food-safety standards and are able to enter the US market.
In the case of Song Hau |Food Company, a member of Vinafood 2, thanks to actively promoting its rice brands and expanding its distribution system, the company last year doubled its domestic |sales revenue from 2015, |Nang said.Other companies, such as Dong Thap Food Company and HCM City Food Joint Stock Company, have actively improved their distribution systems, he said.
Consumption volume of Vietnamese rice in the domestic market is expected to increase significantly, especially as more and more rice is produced following hygiene and food-safety standards
http://www.nationmultimedia.com/news/aec/asean_plus/30306268
Submitted by Eleven on Mon, 02/13/2017 - 17:09
Writer: Nilar
Myanmar exports rice to over 50 countries and more than 70 per cent of exported rice goes to China, according to the Ministry of Commerce. Traders export rice to China via both border routes and shipping lanes but use the former more.

Between April 2016 and January 2017, the country exported 1.15 million tonnes of rice and broken rice and earned more than US$ 370 million. But that amount is less than that of the same period last year by about 150,000 tonnes. In 2015-16, the country exported 1.5 million tonnes of rice.

The ministry is hopeful that it will meet last year’s record since it has received offers for government-to-government rice-trade deals.

Assistant permanent secretary Khin Maung Lwin at the ministry said: “Foreign countries have offered to buy rice under a government-to-government deal. Sri Lanka now wants to import Myanmar's rice.”

Five companies have won contracts for the export of 50,000 tonnes of rice to Sri Lanka by June, according to the Myanmar Rice Federation. Chinese authorities have confiscated the rice imported from Myanmar at the border as smuggled goods due to restrictions on imports, and the Muse border trade halted temporarily due to armed conflicts between government forces and armed rebels in November reducing total export
http://www.elevenmyanmar.com/local/7855

PHL rice stocks down 13.5%–report

Workers unloaded bags of rice imported from Vietnam at North Harbour in Manila.A total of 250,000 bags to be delivered at the NFA office in Taguig City as Philippines is buying an additional 200,000 tons of rice from Vietnam to stabilize local retail prices that have surged more than 20 percent from last year.Photo by ROY DOMINGO
The country’s rice inventory at the start of 2017 declined by 13.5 percent to 2.77 million metric tons (MMT), from 3.2 MMT recorded a year ago, according to a report from the Philippine Statistics Authority (PSA).
The rice inventory as of January 1, however, was enough for the country’s rice requirement for 81 days, the PSA said in its monthly report, titled “Rice and Corn Stock Inventory”.
“Stocks in the households would be adequate for 37 days, those in commercial warehouses for 28 days, and those in NFA depositories for 16 days,” the PSA said in the report.
The January 1 rice-stock inventory was also 17.19 percent lower than the December’s inventory of 3.34 MMT.“This month’s rice stocks in all sectors declined compared with their levels the previous year. Stocks in the households decreased by 4.75 percent, in commercial warehouses by 1.79 percent, and in NFA depositories by 39.2 percent,” the report read.
Of the January’s total rice-stock inventory, 45.91 percent were with households, 34.29 percent were in commercial warehouses, while 19.8 percent were in NFA depositories, the PSA said.The rice stock in NFA depositories reached 547,460 MT, of which nearly 80 percent, or 435,340 MT, was imported.Meanwhile, rice stocks in households and commercial warehouses reached 1.269 MMT and 948,050 MT, respectively.
“Compared with their levels the previous month, stocks in all sectors dropped. Stocks in the households decreased by 24.34 percent, in commercial warehouses by 13.55 percent, and in NFA depositories by 2.96 percent,” the report read.
The government periodically monitors the country’s rice stocks to determine whether there is a need to import the staple.
In the same report, the PSA said the country’s corn inventory as of January 1 reached 382,130 MT, slightly lower than the 386,960 MT recorded in 2016.
However, the figure was 3.28 percent higher than the 369,980 MT corn-inventory level recorded in December last year.“Compared with the previous year, corn stocks in the households increased by 68.64 percent,” the report read.“Stocks in commercial warehouses and NFA depositories decreased by 26.96 percent and 9.03 percent, respectively,” it added.
The PSA said more than half the total corn-stock inventory as of January 1 were in commercial warehouses, 45.81 percent were with the households and 0.34 percent in NFA depositories.
Corn stocks in commercial warehouses reached 205,780 MT, while those in households and NFA warehouses reached 175,060 MT and 1,290 MT, respectively.
“Month-on-month, corn stocks in the households and in NFA depositories grew by 16.3 percent and 24.78 percent, respectively. However, stocks in commercial warehouses dropped by 5.79 percent,” it added
http://www.businessmirror.com.ph/phl-rice-stocks-down-13-5-report/

New Ad Series Encourages Foodservice Audience to 'Rediscover Rice'  

Second in three-part series

ARLINGTON, VA -- This January, USA Rice launched its new foodservice marketing campaign to reach chefs and foodservice professionals as they read up on trends and search for new menu ideas.  Both print and digital ads will appear regularly throughout the year in two leading foodservice publications, Restaurant Business and Flavor & the Menu.

"We selected these two magazines because they are a source of menu inspiration and foodservice trends for readers looking to be innovative in the culinary space," said John Hasbrook, USA Rice Foodservice Subcommittee Chairman.  "Together these publications reach nearly 120,000 foodservice operators and 88 percent of their readers are the operational decision-makers."

The theme of the USA Rice ad series is 'Rediscover Rice' which aims to inspire foodservice operators to see the many menu applications of rice, from breakfast to entrees and everything in between.  The ads highlight the versatility of rice with appetizing food photography, on-trend rice recipes, and encourage viewers to visit 
thinkrice.com for recipes and information about U.S.-grown rice. "The foodservice operator research we conducted last year showed us that while rice is a popular ingredient on menus, it's not top of mind with operators when it comes to recipe innovation, so we're looking to change that," said Hasbrook.  "The new ads are fresh and eye-catching and we're hoping the clever emphasis of the word 'rice' in the word 'rediscover' will leave a lasting impression on viewers and inspire them to explore the many menu possibilities rice has to offer."

The first third-page ad was printed in the January/February issue of Flavor & the Menu magazine as well as the January issue of Restaurant Business magazine.  A digital ad will appear in the February edition of Restaurant Business' Recipedia e-newsletter which generates more than 27,000 foodservice operator impressions

Sri Lanka rice millers refuse to sell at controlled prices

Feb 13, 2017 20:34 PM GMT+0530 | 0 Comment(s)

- Sri Lanka's rice millers have refused to sell rice at rates dictated by the state price control authority and are asking for higher prices.
Sri Lanka's Consumer Affairs Authority, the agency that slaps price controls on anything from hoppers to a cup of tea, issued controlled prices of Rs80 for a kilogram of Samba rice, Rs72 for Nadu (a parboiled rice) and Rs70 for Kekulu (raw rice), exposing the flaws of Sri Lanka's economic policies to the world.
Sri Lanka's rice prices surged after the drought due to import taxes blocking foreign rice from entering the country.
The millers wanted a price of Rs90 for a kilo of Samba, Rs87 for Nadu and Rs80 for Red Raw.
Sri Lanka's Daily Mirror newspaper said the call for higher prices was issued following a meeting in Polonnaruwa with about 120 rice processors. They came from Polonnaruwa, Anuradhapura, Marandagahamula, Kekirawa, Kantale, Nikaweratiya, Anamaduwa and Tissamaharama. Rice millers wanted a meeting with President Sirisena.
Unlike small shopkeepers who are dragged to court by the Consumer Affairs Authority, large millers have political clout.Among the largest rice millers is Dudley Sirisena, brother of President Maithripala Sirisena.
Most millers who bought rice last year had acquired them at lower prices. Millers have also been given credit from state banks in the past to buy rice.
But millers also have to maintain warehouses to store rice for long periods. At state warehouses, rice deteriorate quickly and is sold as animal feed.Somewhat higher rice prices now could potentially allow millers to buy rice at the upcoming Maha season paddy (rough rice) at higher prices, giving higher incomes to farmers, many of whom grew lower volumes of rice.However, many farmers had crops destroyed or did not grow rice this season at all.
Meanwhile, in an unusual move, which is not expected of the current administration that has acquired a reputation for policy blunders including price controls, the finance ministry cut the import tax on rice to Rs5 a kilo from Rs15, allowing foreign rice to come in.
Finance Minister Ravi Karunanayake said anyone could import rice and government agencies would stay out of the market.
Analysts say a regular flow of foreign rice can stabilise prices regardless of whether local millers sell or not. (Colombo/Feb13/2017
http://www.economynext.com/Sri_Lanka_rice_millers_refuse_to_sell_at_controlled_prices-3-7319.html

Local millers paying premium price for aromatic rice


GINA, GUYANA, Monday, February 13, 2017
At least two rice millers in Region Five are offering premium price to farmers for the high- yielding aromatic rice variety.Extension Manager of the Guyana Rice Development Board (GRDB) Kuldip Ragnauth revealed that export markets for the rice variety have been secured by private millers.

Aromatic rice, during cultivation at the Guyana Rice Development Board (GRDB) Research Station, Burma, Region Five
Prices offered for the specialty rice are higher than the regular market price for the GRDB 10 commercial rice varieties. The Government Information Agency (GINA) was informed that rice millers in Regions Five and Six are paying $3000 and $2860 per bag for aromatic rice paddy. These millers pay $2750 and $2600 per bag for regular rice paddy.“Once there are millers that are open and available to purchase the aromatic rice, obviously the farmers will cultivate it. Some millers are offering an incentive in Region Five and also in Region Six; they are offering an incentive meaning an addition in the price for aromatic rice, so that’s a good start,” Ragnauth explained.
The Extension Manager also added that the aromatic rice variety continues to prove to be a higher yielding one, which attracts large- scale production in rice farming regions.Ragnauth further explained that, “We would have seen the yields with the aromatic variety being higher than the regular commercial variety,

Kuldip Ragnauth, Extension Manager, Guyana Rice Development Board (GRDB)
so if you can have the variety that yields higher, and also you’re getting a better price for it, obviously that would be a great incentive for farmers to go into it.”The aromatic variety was developed by the GRDB research station in Burma. Currently there are 3000 acres of the specialty rice under cultivation, most of which is being planted in Region Five. However, there is expected to be an expansion in the total acreage going under cultivation with this variety.
Farmers have complained of the extended cultivation period for this particular rice variety. The GRDB research station is testing and screening other aromatic variety lines which would have shorter maturation periods, bringing the production period up to par with the commercial rice variety.
In 2015, the Ministry of Agriculture launched a new line of the aromatic rice variety. The product has already been presented to the international market through surveys. Aromatic rice is becoming a cost-effective and beneficial economic source commodity hence the efforts for its large scale production.

By: Delicia Haynes
http://gina.gov.gy/local-millers-paying-premium-price-for-aromatic-rice/

VietNamNet Bridge - The government has approved a plan to develop a national rice brand by 2020, aiming to improve marketing capability and competitiveness.


Vietnam is a big rice exporter, but the world only knows Its white rice products with different broken grain proportions.

Vietnam’s rice exports do not bear a Vietnam brand, but they are put in bags with import countries’ labels. In the domestic market, Vietnam’s rice is less favored than imports from Thailand, Cambodia, Taiwan and Japan.

Vietnam exports rice to 80 countries and territories, but it has to compete fiercely with Thailand, India and Pakistan in the markets, and with Myanmar and Cambodia in the future.

A report of the General Statistics Office (GSO) shows that Vietnam’s key export market is China, but the market is always unstable and unpredictable.

While Vietnam mostly exports rice to China across the border gate, Thailand, Myanmar and Cambodia have signed G2G (government to government) export contracts with the country.

Meanwhile, Asian markets (the Philippines, Indonesia and Malaysia) have had big changes recently as the governments have set up a program to develop rice production in the countries to restrict imports.
In African markets, the biggest rice importers, Vietnam has to compete fiercely with India and Pakistan to sell 25 percent broken rice, and with China to sell 5 percent broken rice.
In African markets, the biggest rice importers, Vietnam has to compete fiercely with India and Pakistan to sell 25 percent broken rice, and with China to sell 5 percent broken rice.

In April 2014, Vietnam’s 15 percent broken rice was $436.5 per ton, which was far below the price levels offered by three other contractors from France, Hong Kong and Thailand.

And these are reasons why the national program on developing Vietnam’s rice brand by 2020 has been launched. Vietnam wants to build up a national rice brand in order to help Vietnam’s rice sell at higher prices and cement Vietnam’s firm position in the world’s rice market.

Analysts pointed out that the program on developing rice brand has just been approved, the coordination mechanism remains unclear. Also, Vietnam still doesn’t have high-quality rice varieties in large scale and sustainable production environment.
There is no close cooperation among businesses, farmers and researchers, and farmers and exporters lack information about key markets. In addition, Vietnam lacks attractive brandnames to advertise in domestic and foreign markets.

Dan Viet quoted some experts as reporting that Vietnam’s rice has low and unstable quality because many rice varieties are used in production, while there is no material growing area large enough. In Mekong Delta alone, there are 100 rice varieties in use.“It is impossible to control rice brand with too many varieties,” an expert said, adding that Thai national brand is applied only to two varieties KDML 105 and RD 15
http://english.vietnamnet.vn/fms/business/172334/vietnam-vows-to-develop-national-rice-brand.html

Arab coalition declares Yemen's Hodeidah a military zone

 

DOHA (Reuters) - A Saudi-led coalition has declared Yemen’s Hodeidah city a military zone, urging civilians in the Houthi-held Red Sea port to stay in their homes, days after the United Nations warned that air strikes could trap civilians and hamper aid efforts.
The military coalition of mainly Gulf Arab states said in a statement late on Sunday civilians in Hodeidah should "remain in their homes and avoid clashes" and that the city would be declared a military zone from 10 a.m. (0700 GMT) on Monday until further notice.
Earlier this week, Yemeni government forces backed by Gulf Arab troops recaptured the Red Sea city of al-Mokha in a push that paved the way for an advance on Hodeidah, Yemen's main port city.
The United Nations said on Friday the Saudi-led coalition had intensified air strikes on Hodeidah, possibly trapping civilians and hampering a humanitarian operation to deliver vital food and fuel supplies.
(Reporting by Ali Abdelatti; Writing by Tom Finn; Editing by Paul Tait)

Read more at http://www.thestar.com.my/news/world/2017/02/13/arab-coalition-declares-yemens-hodeidah-a-military-zone/#QOlpy2B3Zd2pbPIU.99
http://www.thestar.com.my/news/world/2017/02/13/arab-coalition-declares-yemens-hodeidah-a-military-zone/

Currency crisis in Iran hits India's basmati rice exports

Traders caution exporters to stay away till currency uncertainty recedes for bilateral trade

Dilip Kumar Jha  |  Mumbai 
53210

Basmati rice stocks gain; Kohinoor Foods, LT Foods up over 5%Basmati exporters' scrips rise on high shipment, price outlookBasmati rice stocks rally; LT Foods, KRBL hit 52-week highRice scrips gain as China opens marketRupee recovers sharply after Donald Trump win
Uncertainty over use of currency for bilateral trade has impacted India’s basmati rice exports to Iran following hesitation over the use of the dollar after fresh sanctions levied by the United States on the Islamic country.

US president Donald Trump levied sanctions on 13 Iranian individuals and 12 entities for their support to that country's administration in connection with the test of a non-nuclear ballistic missile last month. According to trade sources, the Iranian government is reluctant to use the dollar for bilateral trade with friendly countries, including India. Since India has already cleared its oil dues in dollars, Iran lacks rupee-denominated currencies in its foreign currency reserves, casting a cloud uncertainty over India’s basmati rice exports to that country.


Trade sources believe that Iran is looking to replace the dollar with the euro. However, nothing has been finalised yet, and till a decision is taken, India’s basmati exports to Iran may not resume. Shipment for old contracts, however, will continue.

“India had a bilateral understanding with Iran for settlement of oil purchases in rupees. In fact, India cleared all dues arising from crude oil purchases in dollars. Hence, rupee reserves (in Iran) have been exhausted. Interestingly, Iran is reluctant to use the dollar for bilateral trade in response to US sanctions on it. The Iranian administration has also not taken any final decision on the use of any alternative currency. Hence, there is uncertainty over India’s basmati rice exports to that country. Until, the dilemma over the use of currency recedes, India’s basmati rice exports to Iran are unlikely to resume,” said Gurnam Arora, Joint Managing Director, Kohinoor Foods Ltd, producer and exporter of Kohinoor brand basmati rice.Meanwhile, a group of over six to eight importers in Iran has set $850 a tonne as the maximum import price of Indian basmati, which exporters based here find unviable due to a sharp increase in the prices over the past four months. They seek a minimum $925–950 a tonne.
A senior Apeda (Agricultural and Processed Food Products Export Development Authority) official said the Iranian government hasn't set any price for Indian basmati.“The currency issue can be dealt with bilaterally (between buyers and sellers) through use of alternative denominations like euro, yen and rupee. So, our request to exporters is not to sell basmati rice at a loss. They should wait till a clear price signal is received from the market,” a senior industry official said.

Meanwhile, the price of the benchmark basmati rice in the wholesale market near New Delhi jumped by 50 per cent to trade at Rs 72 a kg currently from Rs 48 a kg on October 1, 2016. Indian exporters, therefore, seek a similar increase in realisation from basmati exports to Iran. In the last two tenders, the average realisation works out to $650-700 a tonne.

“Iran’s move to put a cap is a result of a cartel of importers there. However, Iran has also reduced duty on basmati rice to 26 per cent from 40 per cent to ensure that its countrymen get rice at lower cost. Pakistan will derive some advantage from this as their logistic cost is lower due to proximity with Iran,” said Rajiv Tevtiya, Managing Director, RML AgTech, a Mumbai-based agri-technology and advisory firm.

Meanwhile, data compiled by Apeda showed India’s basmati rice exports at 2.9 million tonnes between April–December 2016, 0.1 million tonnes lower than the same period the previous year. Exports, however, are likely to pick up and touch last financial year’s level of 4 million tonnes by March 2017, said an Apeda official.

Of about one million tonnes of annual imports, Iran has purchased nearly 0.5 million tonnes from India between April–December 2016.http://www.business-standard.com/article/markets/currency-crisis-in-iran-hits-india-s-basmati-rice-exports-117021100298_1.html

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