Wednesday, May 24, 2017

24th May,2017 daily global,regional,local & National Rice E-Newsletter by riceplus magazine





Rice basmati slides on fall in demand

23 MAY 2017  Last Updated at 2:14 PM

Basmati rice (Lal Quila) Rs 10,700, Shri Lal Mahal Rs 11,300, Super Basmati Rice Rs 9,800, Basmati common new Rs 7,100-7,200, Rice Pusa (1121) Rs 5,900-6,500, Permal raw Rs 2,250-2,275, Permal wand Rs 2,300-2,350, Sela Rs 2,700-2,800 and Rice IR-8 Rs 1,875-2,000, Bajra Rs 1,360-1,370, Jowar yellow Rs 1,600-1,650, white Rs 3,300-3,500, Maize Rs 1,425-1,435, Barley Rs 1,565-1,585

New Delhi, May 23 Rice basmati prices fell by up to Rs 300 per quintal at the wholesale grains market today owing to slackened demand against adequate stocks position.
Maize also eased on reduced offtake by consuming industries.
Traders attributed the fall in rice basmati prices to easing demand against ample stocks position.
In the national capital, rice basmati common and Pusa- 1121 variety slipped to Rs 7,100-7,200 and Rs 5,900-6,500 from previous levels of Rs 7,400-7,500 and Rs 6,000-6,800 per quintal, respectively.
Maize also shed Rs 10 at Rs 1,425-1,435 per quintal.
Following are today's quotations (in Rs per quintal):
Wheat MP (desi) Rs 2,100-2,345, Wheat dara (for mills) Rs 1,735-1,740, Chakki atta (delivery) Rs 1,740-1,745, Atta Rajdhani (10 kg) Rs 240, Shakti Bhog (10 kg) Rs 240, Roller flour mill Rs 950-960 (50 kg), Maida Rs 960-970 (50 kg) and Sooji Rs 1,030-1,040 (50 kg).
Basmati rice (Lal Quila) Rs 10,700, Shri Lal Mahal Rs 11,300, Super Basmati Rice Rs 9,800, Basmati common new Rs 7,100-7,200, Rice Pusa (1121) Rs 5,900-6,500, Permal raw Rs 2,250-2,275, Permal wand Rs 2,300-2,350, Sela Rs 2,700-2,800 and Rice IR-8 Rs 1,875-2,000, Bajra Rs 1,360-1,370, Jowar yellow Rs 1,600-1,650, white Rs 3,300-3,500, Maize Rs 1,425-1,435, Barley Rs 1,565-1,585.


Iraq mulls importing Pakistani rice

KARACHI: The Iraqi government has agreed to change its rice specification in order to enable Pakistan rice imports which have been suspeded for the past five years.
The decision was taken during a meeting in Iraq on Monday when a Pakistani delegation – led by Director General Trade Development Authority of Pakistan (TDAP) Rafeo Bashir Shah and accompanied by Chairman Rice Exporters Association of Pakistan (REAP) Mahmood Moulvi – met with Under Secretary Ministry of Trade, Republic of Iraq Walid Habib Al-Moswee.Chairman REAP informed the Iraqi officials that Pakistani long grain rice has not been exported to Iraq for last 4-5 years due to specifications of rice varieties.Upon this, Mr Walid assured the Pakistani delegation that rice specifications would be changed accordingly to accommodate Pakistani rice for imports to Iraq

Government must ensure ample supply of affordable rice

After months of uncertainty surrounding the country’s rice supply-and-demand situation, the government finally announced last week its decision to buy rice from foreign private suppliers. The National Food Authority Council (NFAC), the interagency body vested with the power to decide on the timing and volume of rice importation, has also given its nod to the private sector’s initiative to buy 805,000 metric tons (MT) of rice via the minimum access volume (MAV) scheme. The announcement came after revelations that the NFA’s buffer stock had fallen to eight days’ worth of national consumption, nearly half of the 15 days buffer mandated by the Legislative-Executive Development Advisory Council (Ledac).
Days after the NFAC made its announcement, however, it has yet to determine the final volume of rice the government would buy via the so-called government-to-private (G2P) scheme. Cabinet Secretary Leoncio B. Evasco Jr. said the rationale behind this is to ensure that the purchases would be covered by Republic Act 9184, or the Government Procurement Reform Act. As we go to press, the NFAC has yet to decide on the final volume of rice imports and when it would conduct the bidding.
It is now becoming more apparent that the National Food Authority (NFA) would not be able to build up a stockpile equivalent to 30 days of national rice consumption before the start of the lean season in July. It could take anywhere from one to two months for the rice imports to arrive in the country and this would depend on how fast the government would conduct the bidding and award the right to supply rice, as well as the origin of the imports.
The decision not to import rice undoubtedly benefited the farmers during the dry season harvest as traders in some areas were buying paddy rice for as much as P22 per kilogram. There is nothing wrong in favoring local producers because it is the obligation of the State to safeguard the livelihood of its citizens. But some members of President Duterte’s Cabinet seems to have conveniently forgotten or refused to recognize the nature of the Philippine rice industry.
Given its mandate, the NFA continues to act as the “big, bad wolf” to private traders because its intervention prevents price spikes, which could hurt producers or consumers. Until and unless this function is scrapped via the amendment of pertinent laws, this should not be swept under the rug or disregarded and should have been used to the government’s advantage.
For one, the Duterte administration should have embarked on massive palay-buying and raised the NFA’s support price to boost the food agency’s stockpile. This is cheaper than importing rice and would benefit more farmers. Also, importations should be timed to ensure that the price of unmilled rice during the dry season and main harvest in the fourth quarter would not go down. The announcement of the government’s decision to import rice last week would no longer affect rice farmers but it could have an impact on prices during the main harvest, particularly if the arrival of the imports via G2P and the MAV scheme are ill-timed.
It takes about three months to grow rice so the government would have ample time to estimate the possible shortfall in the country’s rice requirement. Importation should be the government’s last resort, but if it is certain that local production would not be enough to support its citizens’ needs, then it should do what’s necessary to ensure the availability of affordable rice.

            Trump Budget Declares War on Agriculture
By Michael Klein

WASHINGTON, DC -- President Trump released his detailed, $4.1 trillion federal budget today, and while every area of the federal government except defense and infrastructure saw cuts, the cuts to agriculture and rural areas are disproportionately severe by anyone's standards.

The total mandatory spending cuts proposed far exceed those signaled earlier this year in the President's Skinny Budget:  $240.7 billion over 10 years, or a 27.5 percent budget cut.  Of that, crop insurance is targeted for $28.562 billion in cuts over 10 years, or a 36 percent reduction and more than 10 percent of the total cuts.  This includes a $40,000 payment limit on premium discounts, a $500,000 AGI means test, and the elimination of premium discounts on the Harvest Price Option (HPO).

With respect to the Commodity Title, the Administration proposes cuts of $653 million over 10 years through the imposition of a $500,000 AGI means test, down from the current $900,000.

The Conservation Title is cut by $5.755 billion over 10 years, or 9.6 percent through the "streamlining" of programs. 

The Nutrition Title is slated for cuts to the tune of $193.287 billion over 10 years, or 28.7 percent.  This includes reforms to SNAP ($190.932 billion) and retailer user fees ($2.355 billion).

Some other notable cuts include $11.571 billion over 10 years through the elimination of "small" programs, and user fees being imposed by FSIS, APHIS, GIPSA, and AMS, as well as the elimination of interest payments to electric/telecom utilities, and the elimination of the Rural Economic Development Program.

The budget also proposes eliminating the Foreign Market Development Program (FMD) and the Market Access Program (MAP), both of which are important to the rice industry that exports about 50 percent of the crop annually.  At a February, 2017 House Agriculture Committee hearing on international market development in the next Farm Bill, Dr. Gary Williams of Texas A&M said that according to a study done by Texas A&M, Oregon State University, Cornell University, and Informa Economics, eliminating the FMD and MAP programs would result in the value of U.S. agricultural exports dropping by an annual average of $14.7 billion.  Since eliminating the programs reduces government spending by about $250 million annually it is difficult to see the return on this cut - especially since the President needs as much economic growth as he can get.  The full budget only balances with 3 percent annual economic growth, despite current economic indicators pointing to a maximum of 2 percent growth into the next decade.

The President's budget also proposes extending budget sequestration for the period of FY2025-2027 ($911 million).  Note that cuts to agriculture accounted for 30 percent of total sequestration cuts in FY2016 so these cuts would fall disproportionately upon agriculture.

The President's budget makes no attempt to hide its low view, or misunderstanding, of agriculture programs, saying, "[t]he 2018 President's Budget targets commodity assistance, crop insurance subsidies, and conservation assistance to producers that have an Adjusted Gross Income (AGI) of $500,000 or less.  It is hard to justify to hardworking taxpayers why the Federal government should provide assistance to wealthy farmers with incomes over a half a million dollars.  Doing so undermines the credibility and purpose of farm programs.  The Budget also eliminates funding for a number of programs for which there is no Federal purpose, those programs include the Market Access Program [and] the Foreign Market Development Cooperator Program...In a time of belt tightening, the Government should not be subsidizing the advertising and promotion of commodities...Lastly, the Budget targets conservation funding to the most sensitive agricultural land, by maintaining acreage in the Conservation Reserve Program at the current statutory cap of 24 million acres, eliminating distortionary signing and practice incentive payments, and focusing near-term enrollment on higher-value continuous acreage."

The budget has not been well received by lawmakers on Capitol Hill, many of whom characterized the proposal as "dead on arrival."

"President Trump's budget proposal finally addresses our growing national debt while still prioritizing our armed forces, which currently face a readiness crisis after years of neglect," said Representative Rick Crawford from Arkansas' First District, the largest rice producing district in the country.  "However, the severe cuts to USDA programs don't fully consider the current state of rural economies and the significant savings already generated by the last Farm Bill.  As the House of Representatives builds upon the Administration's budget blueprint, I will work with my colleagues on the House Agriculture Committee to advocate for producers and other programs vitally important to rural economies and a safe, reliable food source in the United States." 
The Chairmen of the House and Senate Agriculture Committees, Representative Mike Conaway and Senator Pat Roberts released a joint statement saying, "As we debate the budget and the next Farm Bill, we will fight to ensure farmers have a strong safety net so this key segment of our economy can weather current hard times and continue to provide all Americans with safe, affordable food."

"The proposal is disappointing considering the level of support President Trump received from the parts of the country his budget is hurting most," said USA Rice President & CEO Betsy Ward.  "If these cuts were ever enacted, they would devastate rural America and our farmers.  But the President does like to negotiate, so I guess this is his opening offer.  He won't be surprised we're rejecting it.
USA Rice Daily, Tuesday, May 23, 2017

Rice import restriction extended

PHILIPPINE: The Philippines is keeping the quantitative restriction on rice purchases in place for three more years, limiting supplies from major sellers like Thailand and Vietnam, according to an executive order released on Monday. The maximum volume of rice that private traders can ship in annually will remain at 805,200 tons until 2020, with the tariff also kept at 35%, the order signed by President Rodrigo R. Duterte on April 27 showed.
The Philippines, one of the world’s top rice importers, is supposed to lift the import restriction by July 1 this year under an agreement with the World Trade Organization (WTO). It was not immediately clear if Manila needs to seek another waiver from the trade body from its obligation to open up the domestic rice market. In 2014, Manila won WTO approval for a waiver but, as part of the agreement, it pledged to increase the annual import volume from 350,000 tons and reduce the rice tariff from 40%. Agriculture Secretary Emmanuel F. Piñol, who believes the Philippines could be self-sufficient in rice production by 2020, had been pushing for a two-year extension of the restriction, saying local farmers are not ready to compete with cheap imports.
The Philippines imports more than 1 million tons of rice every year, with Thailand and Vietnam its key suppliers. Socio-economic Planning Secretary Ernesto M. Pernia had pushed for the lifting of the restriction, arguing that introducing competition in the domestic market would encourage local farmers to improve efficiency and bring down local prices. Both Messrs. Piñol and Pernia did not respond to Reuters’ requests for comments on the executive order. The Southeast Asian nation has kept the restriction in place since 1995 when it acceded to the WTO treaty. It has won three extensions since then.
 The missive was numbered Executive Order No. 23 and was released yesterday simultaneously with three other executive orders that extended zero tariff rates on information technology products (IT) and capital equipment imported by enterprises registered with the Board of Investments, while setting a new tariff schedule in the next three years for other imported products under the Customs Modernization and Tariff Act (CMTA). EO 23 now directs that agricultural products that are “entered or withdrawn from warehouses in the Philippines” to be still subject to the rates indicated in an earlier EO 190, which the new directive replaces. EO 23 was released after the National Economic and Development Authority (NEDA) “approved the extension of the reduced rates of duty on agricultural products in EO No. 190 for another three (3) years.”
Rice Farmers are Concerned
Rice farmers in Louisiana are worried. Last week congress officially notified the Trump administration of plans to renegotiate the North American Free Trade Agreement but this renegotiation has local rice farmers concerned.
“Rice as you know in Acadia parish and southwest Louisiana is a major driver of the economy.” says local Acadia rice farmer, Jackie Loewer. What once was good is now a concern for rice farmers. “When President Trump was elected, he spoke very negatively about NAFTA and NAFTA has been a very good trade agreement for rice.”
The NAFTA trade agreement is between the U.S., Canada and Mexico.“Mexico is our largest exporter, they buy more from us than any other country in the world. And Canada the other partner with NAFTA is our 4th largest customer. So these are significant trading partners that we want to maintain.” says Loewer. He adds when President Trump was elected he threaten to do away with NAFTA because of some of the other products that are being imported into the United States.
“We feel that our exports our products off the farm are as valuable as the products that come out of the factories.” Loewer adds. So for now, NAFTA isn’t completely done for yet, but is being renegotiated by the Trump administration.“Which we think after 23 years is probably not a bad thing. but we want to make sure and monitor it so that the good part pf NAFTA isn’t thrown away with the good part.” says Loewer.
Jackie Loewer says luckily the Secretary of Agriculture, Sonny Perdue is working to keep farmers off the chopping block. Congress has less than 90 days to give input on the trade deal
watch video by clicking next link

Rice import quota extended for 3 yrs

MAY 23, 2017   
PRESIDENT Rodrigo Duterte has signed an order extending the quota on imported rice for three more years, heeding the recommendation of the National Economic and Development Authority and the Agriculture department despite longstanding calls to remove quantitative restrictions (QR) on the staple.
Executive Order 23, signed by Duterte on April 27 but released by the Palace only on Monday, also extended the effectivity of tariffs on a number of agricultural products.
The Philippines had secured permission from the World Trade Organization (WTO) to impose quotas on rice imports, to protect Filipino farmers, only until June 30.
Under the new EO, the quota under the Minimum Access Volume scheme remains at 805,200 metric tons. The in-quota tariff was also kept at 35 percent. Outside the quota, the tariff is 40 percent.
Economists, including those from the state-run Philippine Institute for Development Studies, have long called for the removal of rice quotas to comply with WTO rules, and also to remove corruption at the National Food Authority, the state monopoly on grains importation.
But Agriculture Secretary Emmanuel Piñol in December called for at least a two-year extension, saying Filipino farmers were not prepared for an influx of cheap rice imports.
Usually, however, negotiations with affected rice-exporting countries take place before the rice quota is extended.
The Philippines had earlier granted greater market access – not limited to rice – to countries affected by the previous extension of the special treatment on rice. In exchange for the QR extension, Manila offered other rice-producing countries certain trade concessions, such as greater access to the Philippine market for other products.
Without the extension, tariff rates will revert to higher levels and the MAV for rice will revert to the original 350,000 MT.
Duterte also signed EO 20 modifying the nomenclature and rates of import duty on various products under Section 1611 of the Customs Modernization and Tariff Act.
“There is a need to ensure that the high economic growth currently being enjoyed by the country is sustainable and inclusive, and will benefit future generations of Filipinos,” Duterte said in the EO.
“It is the policy of government to create an enabling environment for the growth and international competitiveness of Philippine industries that will create and preserved employment opportunities and increase incomes,” he added.
The new EO states that a new multi-year tariff schedule will promote transparency and stability, facilitate trade and enhance consumer welfare

Philippine agency orders private sector to import cheap rice

Source: Xinhua| 2017-05-23 19:42:40|Editor: xuxin
MANILA, May 23 (Xinhua) -- The Philippines' National Food Authority (NFA) Council has approved the importation of 805,000 tons of Minimum Access Volume rice this year, a government statement said on Tuesday.MAV refers to the volume of commodities that is allowed to be imported by a member country of the World Trade Organization. The 2017 Minimum Access Volume is the last of its kind before the lifting of the quantitative restriction on rice by June 30 this year.
Cabinet Secretary Leoncio Evasco said the council has also directed the NFA Management to amend the Minimum Access Volume guidelines to require participating traders to import 25 percent broken rice from the 25 to 35 percent quota.
"This will ensure adequacy of supply and stability of consumer prices at levels within the reach of low-income families," he said.

Thailand to open second rice auction in 2017

VNA Print
Illustrative image (Source: AFP/VNA)

Bangkok (VNA) – Thailand’s government has announced a plan to organise the second rice auction in 2017 with a total volume of up to 1.82 million tonnes. Interested buyers could examine the rice’s quality before bidding on May 24. The result of the auction is scheduled to be announced in the first week of June.
The auction is expected to attract many businesses as it is the final batch of rice put for sale this year, said Duangporn Rodphaya, Director General of the Ministry of Commerce’s Department of Foreign Trade.  To date, the Thai government has stocked 4.82 million tonnes of rice, much lower than the volume of 18.7 million tonnes between 2011-2014.
A total of 11.7 million tonnes of rice was sold by auction for 112 billion THB from May 2014 to mid April 2017. In the first five months of this year, Thailand exported 4.1 million tonnes of rice, up 9 percent, earning 1.74 billion USD, up 6 percent against last year.-VNA

Nagpur Foodgrain Prices Open- May 23, 2017

Reuters | May 23, 2017, 02.20 PM IST
Nagpur Foodgrain Prices - APMC/Open Market-May 23 Nagpur, May 23 (Reuters) - Gram and tuar prices reported higher in Nagpur Agriculture Produce and Marketing Committee (APMC) auction on increased buying support from local millers amid thin supply from producing belts. Notable rise in Madhya Pradesh gram prices and enquiries from South-based millers also jacked up prices. About 1,200 bags of gram and 1,900 bags of tuar were available for auctions, according to sources. FOODGRAINS & PULSES GRAM * Desi gram raw recovered in open market on good seasonal demand from local traders. TUAR * Tuar varieties ruled steady in open market on subdued demand from local traders amid ample stock in ready position. * Udid varieties, Lakhodi dal and Batri dal moved down in open market on poor buying support from local traders amid increased arrival from producing belts. * In Akola, Tuar New - 4,000-4,100, Tuar dal (clean) - 6,000-6,200, Udid Mogar (clean) - 9,000-10,000, Moong Mogar (clean) 6,800-7,200, Gram - 5,800-6,100, Gram Super best * Wheat, rice and other commodities moved in a narrow range in scattered deals and settled at last levels in thin trading activity. Nagpur foodgrains APMC auction/open-market prices in rupees for 100 kg FOODGRAINS Available prices Previous close Gram Auction 5,100-5,450 5,050-5,450 Gram Pink Auction n.a. 2,100-2,600 Tuar Auction 3,500-3,960 3,500-3,910 Moong Auction n.a. 3,900-4,200 Udid Auction n.a. 4,300-4,500 Masoor Auction n.a. 2,600-2,800 Wheat Mill quality Auction 1,500-1,652 1,500-1,620 Gram Super Best Bold 8,200-8,500 8,200-8,500 Gram Super Best n.a. n.a. Gram Medium Best 7,600-7,900 7,600-7,900 Gram Dal Medium n.a. n.a Gram Mill Quality 5,600-5,700 5,600-5,700 Desi gram Raw 6,350-6,550 6,300-6,500 Gram Yellow 8,000-8,200 8,000-8,200 Gram Kabuli 12,300-13,400 12,300-13,400 Tuar Fataka Best-New 6,200-6,400 6,200-6,400 Tuar Fataka Medium-New 5,800-6,000 5,800-6,000 Tuar Dal Best Phod-New 5,700-6,000 5,700-6,000 Tuar Dal Medium phod-New 5,000-5,500 5,000-5,500 Tuar Gavarani New 4,100-4,200 4,100-4,200 Tuar Karnataka 4,200-4,300 4,200-4,300 Masoor dal best 5,500-5,700 5,500-5,700 Masoor dal medium 5,200-5,400 5,200-5,400 Masoor n.a. n.a. Moong Mogar bold (New) 7,000-7,500 7,000-7,500 Moong Mogar Medium 6,500-6,800 6,500-6,800 Moong dal Chilka 5,500-6,300 5,500-6,300 Moong Mill quality n.a. n.a. Moong Chamki best 7,000-8,000 7,000-8,000 Udid Mogar best (100 INR/KG) (New) 10,000-11,000 10,200-11,200 Udid Mogar Medium (100 INR/KG) 8,000-9,000 8,200-9,200 Udid Dal Black (100 INR/KG) 5,800-6,200 6,000-6,400 Batri dal (100 INR/KG) 5,500-5,600 5,500-5,700 Lakhodi dal (100 INR/kg) 3,300-3,500 3,400-3,700 Watana Dal (100 INR/KG) 2,900-3,000 2,900-3,000 Watana White (100 INR/KG) 3,400-3,600 3,400-3,600 Watana Green Best (100 INR/KG) 4,000-4,500 4,000-4,500 Wheat 308 (100 INR/KG) 1,950-2,050 1,950-2,050 Wheat Mill quality (100 INR/KG) 1,750-1,850 1,750-1,850 Wheat Filter (100 INR/KG) 2,150-2,350 2,150-2,350 Wheat Lokwan new (100 INR/KG) 1,850-2,050 1,850-2,050 Wheat Lokwan best (100 INR/KG) 2,200-2,350 2,200-2,350 Wheat Lokwan medium (100 INR/KG) 2,000-2,150 2,000-2,150 Lokwan Hath Binar (100 INR/KG) n.a. n.a. MP Sharbati Best (100 INR/KG) 3,300-3,600 3,300-3,600 MP Sharbati Medium (100 INR/KG) 2,600-2,800 2,600-2,800 Rice BPT new (100 INR/KG) 3,100-3,400 3,100-3,400 Rice BPT best (100 INR/KG) 3,500-4,000 3,500-4,000 Rice BPT medium (100 INR/KG) 3,000-3,200 3,000-3,200 Rice Luchai (100 INR/KG) 2,500-2,800 2,500-2,800 Rice Swarna new (100 INR/KG) 2,300-2,450 2,300-2,450 Rice Swarna best (100 INR/KG) 2,600-2,800 2,600-2,800 Rice Swarna medium (100 INR/KG) 2,400-2,500 2,400-2,500 Rice HMT New (100 INR/KG) 3,600-4,000 3,600-4,000 Rice HMT best (100 INR/KG) 4,500-4,800 4,500-4,800 Rice HMT medium (100 INR/KG) 4,000-4,200 4,000-4,200 Rice Shriram New(100 INR/KG) 4,650-4,850 4,650-4,850 Rice Shriram best 100 INR/KG) 6,800-7,000 6,800-7,000 Rice Shriram med (100 INR/KG) 6,300-6,500 6,300-6,500 Rice Basmati best (100 INR/KG) 11,000-15,000 11,000-15,000 Rice Basmati Medium (100 INR/KG) 6,500-8,000 6,500-8,000 Rice Chinnor New(100 INR/KG) 4,600-4,800 4,600-4,800 Rice Chinnor best 100 INR/KG) 5,800-6,300 5,800-6,300 Rice Chinnor medium (100 INR/KG) 5,400-5,600 5,100-5,300 Jowar Gavarani (100 INR/KG) 1,900-2,200 1,900-2,200 Jowar CH-5 (100 INR/KG) 1,800-1,900 1,800-1,900 WEATHER (NAGPUR) Maximum temp. 44.9 degree Celsius, minimum temp. 30.0 degree Celsius Rainfall : Nil FORECAST: Partly cloudy sky. Maximum and minimum temperature would be around and 44 and 30 degree Celsius respectively. Note: n.a.--not available (For oils, transport costs are excluded from plant delivery prices, but included in market prices).