Wednesday, June 14, 2017

14th June,2017 daily Rice e-newsletter (Global,Regional & Local Rice News)

Majha farmers revert to Pusa 1509 Basmati
AMRITSAR: Higher yield and early maturity of Pusa 1509 variety of Basmati has found favour with farmers in Majhaonce again despite the fact that rice exporters do not prefer it over other available varieties of the aromatic rice. Talking to ToI, former agriculture officer Parmjit Singh Sandhu said, "The crop is ready for harvest in about just 90 days as compared to Pusa Basmati 1121, which takes 140 days to ripen. Early maturity allows farmers to grow vegetables during rest of the time." He added that previous issues relating to marketing of Pusa 1509 had been resolved by the government, making it easier for farmers to switch to the long-grained basmati variety.
"Pusa 1509 has an average yield of around 24 quintals per acre as compared to Pusa 1121 which yields around 20 quintals per acres," said farmer Satnam Singh Ajnala, a farmer leader. He said the purchase rate for Pusa 1509 was Rs 1,500 per quintal as compared to Rs 2,200 of Pusa 1121 last year. "Though there is a loss of around Rs 8,000 per acre by growing this variety, it is easier for farmers to make up for the loss by growing vegetables over a month and half and make up to Rs 35,000 per acre," he said.

"This year, there has been a 50 per cent increase in sale of seed for Pusa 1509 variety over other strains of Basmati," said Gaurav Mahajan, a seed store owner. He said after early harvest of Pusa 1509, farmers could grow peas, potatoes or fodder and make good money.

When contacted, Chief Agriculture Officer (CAO), Amritsar, B S Chhinna said they were yet to conduct a survey to find out the most favoured Basmati variety this year. He said the paddy sowing would start from June 15 and Basmati would be transplanted a month later.

Rice prices seen rising until year-end on lower stockpiles
Rice prices are expected to continue rising until the end of the year, with Thailand's state rice stocks due to be disposed of and natural disasters occurring in many countries around the world. Commerce... Please credit and share this article with others using this link: View our policies at and © Post Publishing PCL. All rights reserved.
Thailand-origin offered lowest in Iraq’s 30,000 T rice tender
HAMBURG: The lowest price offer in the tender from Iraq's state grains buyer to purchase at least 30,000 tonnes of rice was $498.20 a tonne c&f free out for rice to be sourced from Thailand, European traders said on Monday. No decision about a purchase was believed to have been made in the tender, which closed on June 11 with offers remaining valid up to June 15. The lowest price was followed by another offer of Thailand rice at $503.20 a tonne c&f free out. Lowest offer for rice from the United States was $595 a tonne free out.
 Indian rice was offered lowest at $525 a tonne c&f liner out. Free out and liner out terms have differing conditions for the cost of port cargo handling. Argentine rice was offered lowest at $537 a tonne c&f free out and Uruguay origin was offered lowest at $539 a tonne c&f free out, they said. Brazilian rice was offered lowest at $552 a tonne c&f free out. Traders said six trading companies took part in the tender, lower than usual but still a reasonable number.
Iraq has been struggling to import grain for its food subsidy programme after introducing new payment and quality terms which left trading houses unwilling to participate in its international tenders. Iraq told suppliers earlier this year it would pay for its grain in instalments. Traders said they were informed by Iraq's Grain Board that low oil prices and other financial factors were forcing the country to delay payments. Iraq had made no purchase in a separate wheat tender, traders said on Monday.
Govt gets offers to buy 50,000t of rice
The lowest offer in the tender from Bangladesh’s state grains buyer to purchase 50,000 tonnes of parboiled rice was $445.11 a tonne CIF liner out, officials in Bangladesh and European traders said on Monday.
The offer was made by trading house Olam.The tender had closed on 11 June and the rice is to be shipped within 40 days of contract signing.
No purchase has yet been made and offers are still being considered, European traders added.
They said the other offers in the tender in dollars a tonne CIF liner out were: Agro Corp at $449.55, Singsong Food at $458.00, Desh Trading at $459.67, Amir Chand at $474.00 and Sukhbir Agro at $459.30.
Bangladesh has started a new programme to import rice to build reserves and cool local prices after sudden floods damaged local crops.
Domestic rice prices reached record highs in May and state reserves are at six-year lows in the wake of the flooding that wiped out around 700,000 tonnes of Bangladesh’s rice crops.
The state grains buyer said it would import 600,000 tonnes of rice after the flooding, initially issuing two tenders for a total of 100,000 tonnes of rice, its first such tenders since 2011.

Potential agreement set to expand regional rice seed-sharing in Southeast Asia

June 12, 2017 - by Holly Demaree
The new agreement would expand the current South Asia Regional Seed Policy Agreement.
Photo courtesy of IRRI.
 SIEM REAP, CAMBODIA — Agriculture ministers and representatives from nine countries are seeking to create a multi-country seed policy agreement that drastically speeds up the distribution of modern rice varieties in South and Southeast Asia.
The possible agreement was discussed during an International Rice Research Institute (IRRI) event. It brought together officials from Cambodia, India, Bangladesh, Nepal, Myanmar, Sri Lanka, Thailand, Laos, and Vietnam to discuss collaborative ways to improve the welfare of resource-poor farming families through innovative agricultural research.
One such approach is to ensure that farmers have easy access to improved technologies and advancements, particularly the seeds of newly developed climate-resilient rice varieties, the IRRI said. These modern varieties have helped vulnerable farmers by securing their food supply, and providing them with added income and the opportunity to invest in their own future.
The potential expansion of the regional seed-sharing agreement builds on the existing South Asia Regional Seed Policy Agreement, which was signed in 2014 by the governments of Bangladesh, Nepal, and India. Under the agreement brokered by IRRI, the new seed-sharing system allowed new and better seeds to reach the hands and fields of farmers more rapidly. In just three years, eight rice varieties already have been released and shared across the three countries.
The event provided a platform for the participants to share their experience with neighboring countries and to aid other nations in determining how the extension of such an agreement could positively impact the rice sector of their respective countries.
According to the IRRI, this is an opportune time for rice-growing countries to work toward a regional “seed diplomacy” that could benefit a higher number of farmers and consumers, leading to the development and strengthening of the rice sector.

UCCE funding priorities questioned

Important row and field crop entomology positions at University of California Cooperative Extension not an immediate priority
Todd Fitchette 2 | Jun 12, 2017
Reports that two long-time University of California entomologists will retire isn’t really news – retirements happen. Having worked with IPM Advisor Pete Goodell and Imperial County Farm Advisor Erik Natwick I’d like to personally wish them well in their retirements.
At issue seems once again to be the delay in hiring their replacements. A similar situation happened several years ago when vacancies occurred in viticulture positions within the San Joaquin Valley. Those went unfilled for a period of time before the positions were refilled.
According to an earlier plan approved by UC Agriculture and Natural Resources Vice President Glenda Humiston, the positions held by Goodell and Natwick will not be filled in the near term. That’s not to say they won’t ever be refilled – they’re simply not on the current approved list for hire.
Add to this the recent death of Dr. Larry Godfrey, who worked with Goodell on cotton issues and was helpful in rice research, and those vacancies leave a hole in row and field crops that could be critical for crops like cotton and rice.
Of the 138 positions said to be proposed for hire within Cooperative Extension, 26 made the cut. Humiston blames the UCANR budget, which she says has been flat for some time.
In Humiston’s defense, she must live within the budget she’s given. Nevertheless, in her 18 months as the head of UCANR, with direct reporting responsibilities to UC President Janet Napolitano, some could argue she has a good opportunity to positively impact funding priorities for agricultural research and Extension programs.
It makes no sense that critical positions like those recently held by Natwick, Goodell, and Godfrey, cannot simply be left funded with the goal of filling them through the appropriate search process.
For all the critics who complain about private funding in university research circles, as if funds from (you name the company) automatically make land grant researchers biased in their research, the hue and cry is silent when public universities leave critical research positions unfunded and unfilled.
This is one of several examples as to why efforts by universities outside the land grant system are so appreciated when they step up and commit considerable capital to applied agricultural research, and why some commodity groups continue to look beyond the University of California for research help.

Weed wiper’ to curb growth of wild rice

ALAPPUZHA, June 13, 2017 00:00 IST
Updated: June 13, 2017 04:01 IST
The weed wiper developed by Nimmy Jose.  

The technology has been transferred to Raidco Kerala Limited

A ‘weed wiper’ developed by Nimmy Jose, an agricultural scientist at Rice Research Station, Monkombu, is set to give a new direction to the efforts for countering the growth of wild rice (‘vari nellu’ in local parlance) in paddy fields of Kerala. The device makes use of a technology for selective drying of weedy rice panicles by direct contact application of a safe, green label herbicide.
The process takes advantage of the earliness in flowering and tallness of weedy rice compared to cultivated rice, Ms.Nimmy told The Hindu . Application has been filed for getting Indian patent for the device. The technology has been transferred to Raidco Kerala Limited, a Government of Kerala enterprise.
“Weedy rice is a product of natural hybridization between cultivated rice and wild rice. Morphological and biochemical similarity of weedy rice to cultivated rice makes hand weeding and herbicidal control ineffective.
The huge infestation of weedy rice in rice fields and subsequent huge reduction in yield (50-70 per cent) have forced many farmers to abandon the rice farming and leave the field fallow in the past,” she said.
Transplanting, deep tillage, cutting of earheads of weedy rice at flowering, and use of higher seed rate were the traditional practices followed for managing weedy rice. Shift in the crop establishment method from transplanting to direct sowing of pre-germinated seeds, dependence on pesticides, reduced tillage practices, acute shortage and high cost of labour are among reasons behind the shift in weed flora. Early flowering in weedy rice (20-25 days) compared to cultivated rice and ‘shattering’ of weedy rice grains have contributed to the soil seed bank, adding to the severity of infestation.
“The product has been recommended by Krishi bhavans. It has been tested successfully in Kuttanad and other areas. Several padasekharams have already started using the machine,” Ms.Nimmy, Assistant Professor at the Rice Research Station, said.
The research conducted by her under the guidance of C.T. Abraham, former Professor and Head, All India Coordinated Research Project on Weed Control, Kerala Agricultural University, could also standardise an integrated strategy for the management of weedy rice in fields with a history of persistence of the menace.
It included modified ‘stale seed bed technique’ by ploughing for exhausting the soil seed bank (of weedy rice), and modifying the time, method and dose of pre-plant herbicide application to prevent the germination of weedy rice by pre-sowing surface application of herbicide.
Perdue, Ag Priorities, and Seersucker Come Together at Delta Council Meeting
By Josh Hankins
 CLEVELAND, MS - Seersucker suits came together for one of their largest gatherings of the year at Delta Council's 82nd Annual Meeting here last week.  Traditionally the Seersucker was worn to combat the southern heat and humidity, pleasantly both were unaccounted for on this June day in the Delta, but donning of the formal cotton attire at this event is more about taking pride in what the surrounding soil produces...and snagging the coveted "best dressed" awards that were presented during the meeting.

Delta Council is the regions' foremost economic development group representing 18 Delta and part-Delta counties in Northwest Mississippi.  Delta Council was organized in 1935, provides a medium through which the agricultural, business, and professional leadership in the area could work together, and remains one of the state's most influential organizations.   
 The featured guest for this year's meeting was U.S. Secretary of Agriculture Sonny Perdue.  He discussed his southern roots, and emphasized his commitment to rural America, which were welcomed words for these communities' dependent on their agriculture for survival.Perdue referenced collaborating, eliminating, innovating, and celebrating as his four action words for rebuilding struggling rural communities in the country.
 "Just over 46 million Americans live in what we would consider rural communities. That's about 14 percent of the U.S. population, but believe it or not about 78 percent of our land area. This gives us a lot of elbow room for growth, and economic growth is what we surely need in rural America," Perdue said.
 "Ladies and gentlemen, we must stop being a government that puts up obstacles and tells people what they can't do. We have to be an encouraging government, an inspiring government, and not one that's a barrier to job creation and economic prosperity."
All departments of the federal government including USDA will collaborate, the Secretary said."The better collaboration we have, the better prosperity we will enjoy in the future."
 USA Rice President & CEO Betsy Ward, who attended the event and met with Secretary Perdue was encouraged by his remarks."The Secretary and I have been seeing a lot of each other lately - in Washington two weeks ago to talk rice, last week in Washington to talk about the value of USDA ag export programs, and again here in Mississippi where he reassured me that he fully understands rice's dependence on trade and that he would do everything he could to help open new markets and protect and promote U.S. rice interests in existing markets," Ward offered.
 USA Rice Council Vice Chair, Kirk Satterfield of Benoit, MS, was recognized as Outstanding Rice Producer of the Year during the festivities, that concluded with the large crowd moseying from the Belogna Performing Arts Center to the manicured lawns of the Quadrangle for the tradition of a fried catfish luncheon, or what I call in The South the "brown platter."

 Secretary Perdue Inspects Lunch Preparations
"Brown Platter" Prep Receives USDA Inspection...of sorts

Marketing rice doesn’t end with a PLC payment

Marketing rice is tough, especially in the current environment.

It doesn’t take a PhD to know that rice supplies are well burdensome for the amount of demand we have.
For most producers, if not all, the current cash rice prices represented at the mill or barge-loading facility are below the cost of production. Not a great place to be in, and fortunately we have programs in place like the Price Loss Coverage program (PLC) to help supplement producers’ income to help pay bills and renew operating lines so they may continue their operations.
First, a reminder that the PLC is a federal subsidy program designed to reimburse producers for loss of income when market prices fall below a certain reference price. PLC is very akin to the old counter-cyclical program in the former farm bill.
Payments are triggered when the Marketing-Year-Average price (MYA) falls below the Reference Price (RP) for a certain commodity. RPs are permanent throughout the life of the farm bill. MYA will fluctuate in price in response to the supply and demand of that commodity market.
Payment amounts are calculated by taking the farm’s total production (which is calculated by 85% of the base acres enrolled in the program, enrolled acres multiplied by 90% of the farm’s updated yield history and multiplying the difference in the reference price to the MYA).
Total payments are capped at $125,000 per entity (or $250,000 per couple). Payments, if triggered, are made regardless of whether the actual PLC crop is planted in that production year. Actual payments are made about one year after the official marketing year season.

As an example, let’s look at a 3,000-acre rice and soybean farm in the Mississippi River Delta. The farm in 2017 is going to plant 1,000 acres of rice (expected to produce an average yield of 175 bu/a) and 2,000 acres of soybeans (expected to produce an average yield of 60 bu/a).
The farm entity structure is a General Partnership, consisting of a husband and wife.
It has 1,000 acres of rice base and 2,000 acres of soybean base. The farm has enrolled both rice and soybean in the PLC program. The farm has a PLC established yield of 150 bushels per acre (bu/a) for rice and 42 bu/a PLC established yield for soybeans. Let’s assume a MYA for rice at $9.50 per hundredweight and $9.50 per bushel for soybean (very close to where prices are at the time of this writing).
The RPs for rice and soybeans are $14.00 per cwt and $8.40 per bu respectively. Under these conditions, the PLC payment for rice is $242,250 and $0 for soybeans. There would be no payout for soybeans because the MYA is above the RP.
For rice, the calculations are as follows: 150 bu/a X 850 acres (85% X 1,000 acres) = 127,500 PLC bushels; then multiply 127,500 by the difference of the $14.00 cwt RP - $9.50 cwt MYA = $4.5 cwt. Take $4.5 cwt and divide by 2.2 (to convert from $ per hundredweight to $ per bushels). After deducting a 6.8% sequestration rate ($0.15 per bushel), that leaves you with a $1.90 per bushel PLC payment rate.
The total gross payout of $242,250 is very much needed because most producers would agree the cash selling price of rice in this scenario is most likely below the cost of production.


Here is where important decision-making comes into play. There are several considerations.
(1) This farm is very close to the payment cap. Downside price protection for both crops must take the highest priority because there is no longer a price support mechanism if prices keep going lower. You need to be fully aware of how to utilize cash contracts, futures, and options or a combination of all three to their full potential.

(2) Just because one of this farm’s commodities is receiving payments doesn’t mean we walk away from our marketing plans. The physical commodity still has to be marketed. Decisions to sell should be premised on the concept that we believe market prices have stopped going up or fear that market prices may fall further.
Apply the same tools and indicators in bull markets as in bear markets.
In addition, on a bushel-per-bushel basis, the PLC payment is only protecting a portion of total production. In this scenario, total production is 175,000 bushels (1,000 acres X 175 bu/a), but PLC is only protecting 127,500 bushels. There is still work to do.
(3) Remember that payments are made an entire year after the actual crop was produced. Projected future payment amounts need to be addressed on this farm’s balance sheet. Characterize this payment as a receivable from 2016 crop year on the balance sheet.
(4) Consider strategies that are akin to covering short hedges. After all, this is essentially a put option for the farm funded by the federal government. As with any hedge or forward contract, the decision to cover hedges or buy back cash contracts should be market-based.
If you are going to make a decision make it with the awareness that you know what to risk if you are wrong and participate in maximum reward if right.
As an example, let’s take a look at the July rice futures contract. On April 26 through April 28 the market consolidated by closing around $9.440 cwt three times. On May 1, the market closed up and well off the $9.440 cwt level.
If you were to take on a long position, a move below $9.440 cwt would be your risk matrix. A very comfortable risk level. The reward level is applicable as a wide range move preceded the consolidation. A second such set up occurred May 4 thru May 9. The market closed three times around $9.850 cwt then bounced well off that on May 10. Taking a long position there gave a very comfortable risk level as you knew what to risk if market turned against you.

(5) As with 4, this is not a recommendation for “gun slinging” speculation into rice futures. In this scenario, if $9.440 cwt turns out to be the absolute low, any gain in a hedge account profit wise will only be offset by a loss in a future PLC payment. Vice versa, any loss in a hedge account will be offset by a gain in a future PLC payment (provided no payment limitations).
 Chase Bell is a marketing consultant and broker with Brock Associates. Email or call him at or 414-540-2608

NFA Council revamps rice importation program

 ( | 
The question of whether or not to import rice has led to one undersecretary being fired. File photo

MANILA, Philippines — The National Food Authority’s top policymaking body has implemented comprehensive reforms in this year’s rice importation program, including placing caps on imports to ensure fair trade. Cabinet Secretary Leoncio Evasco, who also sits as NFA Council chair, said the changes were meant to promote transparency and improve the efficiency of the importation program.“We must protect our institutions by changing systems that are no longer working for the best interest of our poor consuming public,” Evasco said in a press briefing in Malacañang on Tuesday.
 “We have to increase transparency in government procurement since this will promote public understanding and acceptance of government actions, which, in turn, will enhance the efficiency of this whole importation program,” he added.The reforms came after President Rodrigo Duterte allowed the NFA to import rice from the private sector to augment its buffer stock for the lean months.
 The decision was a policy shift from government to government (G2G) rice importation, which Evasco previously described as “prone to corruption.”NFA administrator Jason Aquino had been pushing for G2G importation earlier this year. Halmen Valdez, and undersecretary in Evasco's office, was fired in April for pushing for allowing the private sector to import rice.

Evasco had appointed Valdez to perform complete staff work on his behalf in coordination with 12 other agencies, the supervisory power of which were transferred to the Office of the Cabinet Secretary pursuant to Executive Order 1.
“This means I was the extension of the Cabinet Secretary’s eyes and ears in ensuring that each of the heads of the agencies under his wing is performing his job to the best of his ability,” Valdez said after she was fired.

Delivery in tranches

For the private sector-led importation or the Minimum Access Volume (MAV) program, the NFA council agreed that the delivery shall arrive in tranches.Under the new policy, at least 30 percent of the volume import quotas should arrive between August and September, while the remaining rice imports should arrive between December 17 and February 2018.
 Evasco said that as of June 7, household and commercial stocks are in comfortable status, with household stocks at 44 days and with commercial stocks at 28 days. “With the opening of this year’s MAV, the commercial stocks will further be augmented. And in order to avoid oversupply and in anticipation of the harvest season, the council has decided to let private sector importation arrive in tranches,” he said.
 NFA is now required to immediately sign and release import permits within one day upon the endorsement of its Grains Marketing Operations Division.“Please note that here, the NFA administrator’s duty is purely ministerial or mandatory,” Evasco said.The release of certificates of eligibility for rice importation has been reduced to two days from 15 days.
 The NFA Council also adopted a schedule of activities for the rice imports.Under the Government to Private (G2P) importation scheme, the NFA Council shall divide the 250,000 metric tons import authority into several tranches of arrival and will be putting a cap on each lot, “to ensure competition and fair trade.”
 Evasco said the council is looking at dividing the importation to eight to ten lots with minimum of 25,000 metric tons and maximum of 50,000 metric tons per lot.“This year’s government to private importation seeks to do away with the old G2G that lacks transparency and competition,” the he said. Evasco urged potential participating countries and international companies to support the reforms implemented by the NFA Council.

Other reform measures

The council also implement the following changes:

·         The terms of payment that lasted for 365 days has been reduced to 15 days. Evasco said only big time players can afford to wait 365 days.
·         The members of the bids and awards committee will be selected and approved by the council. Representatives from the Development Bank of the Philippines and farmers groups will also be designated as observers in meetings.
·         The delivery period of the G2P importation shall arrive in tranches from July 31 until the last week of September.
·         Subic Freeport Zone was removed as port of entry for G2P but Evasco did not say why the council made the decision. Zamboanga City will serve as port of entry in lieu of Subic.
·         Only the total cost is required for the bidders to bid out. Evasco said other expenses like cost of freight, logistics and insurance will no longer be revealed “since these details are considered as trade secret.” He said revealing such information would “give unscrupulous traders and government officials an idea on which costs to pad or adjust.”
·         Provisions disqualifying suppliers with pending liabilities before this year were removed so that many bidders can participate. Evasco said the NFA should continue to demand collection and file the appropriate legal cases
 The council also ordered the NFA to come up with a terms of reference for all its regional bids and award committees on cargo handling for the domestic movement and transport of rice.“With these changes being in place, the council is confident that it is being faithful to its foremost duty, that amid the lean season, it is able to secure fair pricing and affordable yet quality rice for every Filipino household,” Evasco said

G2G TO G2P | NFA Council changes rules in rice importations

By Gerard dela Peña, News5 | InterAksyon
, 7:33 PM
Rice stocks at a National Food Authority warehouse. PHILSTAR file photograph
MANILA – The government has revised the rules governing rice importation, Malacañang Palace said Tuesday. The National Food Authority Council has decided to shift the approach from the government-to-government scheme in place for years, to a government-to-private, or G2P, system for importing rice.This means government is no longer limited to obtaining bids from governments of rice-producing countries, it can now entertain bids from private groups of other countries to fill in the country’s requirements.
The G2P is more transparent and is aligned with the Procurement Law, Palace officials said.“We must protect our institutions by changing systems that are no longer working for the best interest of our poor consuming public,” said Cabinet Secretary Leonardo Evasco Jr.The government had earlier signalled plans to shift from G2G to G2P. But Cabinet Secretary Evasco has now given details of how this will be done.
Part of the modifications in the rice imports program is the staggered entry of orders of rice by private importers: 30% of the volume of import quota must come in between August and September, while the balance enters the country between December and February the next year.
The Palace said the supply of rice is still sufficient, so that in order to avoid oversupply, the government decided to mandate the entry of import orders in tranches.
Under the G2P mode of buying rice, the 250,000 metric tons allowed for importation will be split from 8 to 10, and each delivery will have a cap in order to ensure fair pricing.The previous payment terms covering one year will be reduced to to just 15 days, because under the old setup, only the really big companies could afford to wait one year before being paid for their rice.
Meanwhile, the NFA council will also be selecting the members of the bids and awards committee.Subic has been removed as a port of entry for rice imports, but Zamboanga was added to the list.In the bidding, only the aggregate amount will be shown to bidders, and not the breakdown–such as details on the cost of freight and insurance, to prevent bidders from taking advantage.
Provisions on disqualifications of bidders were also suspended in order to allow more bidders to join.
“The council is confident that it is being faithful to its foremost duty that amid the lean season, it is able to secure fair pricing, an affordable yet quality rice for every Filipino household. We also hope to get the full coordination of our stakeholders including the NFA management, to assure that this year’s government importation programs will run as hassle-free as possible,” said Evasco

Govt gets offers to buy 50,000t of rice

Reuters . Dhaka | Update: 22:15, Jun 12, 2017
The lowest offer in the tender from Bangladesh’s state grains buyer to purchase 50,000 tonnes of parboiled rice was $445.11 a tonne CIF liner out, officials in Bangladesh and European traders said on Monday.The offer was made by trading house Olam.The tender had closed on 11 June and the rice is to be shipped within 40 days of contract signing.
No purchase has yet been made and offers are still being considered, European traders added.They said the other offers in the tender in dollars a tonne CIF liner out were: Agro Corp at $449.55, Singsong Food at $458.00, Desh Trading at $459.67, Amir Chand at $474.00 and Sukhbir Agro at $459.30.
Bangladesh has started a new programme to import rice to build reserves and cool local prices after sudden floods damaged local crops.Domestic rice prices reached record highs in May and state reserves are at six-year lows in the wake of the flooding that wiped out around 700,000 tonnes of Bangladesh’s rice crops.
The state grains buyer said it would import 600,000 tonnes of rice after the flooding, initially issuing two tenders for a total of 100,000 tonnes of rice, its first such tenders since 2011.

From rice farmers to cowboys Rice fields to turn to grazing ground

13 Jun 2017 at 11:18


Real cowboys are still a rare sight, and mostly in the Northeast of Thailand like the PC Ranch (above) in Nong Bua Lam Phu, but the Livestock Department has a plan to boost their number. Bangkok Post file photos by Seksan Rojjanametakul)
Around 6,000 rice farmers in three districts in Sa Kaeo have joined the government's Koban Burapha (Eastern Cowboys) cattle-raising initiative
Apinya Wipatayotin
The Livestock Department yesterday assured farmers that the government's Koban Burapha (Eastern Cowboys) cattle-raising scheme will greatly benefit around 6,000 rice farmers in three districts in Sa Kaeo who have registered to join the initiative.
Livestock department chief Apai Sutthisunk said the scheme will be launched immediately after the department completes its electronic bidding process to buy about 30,000 domestic cows from at least 10 companies that have expressed an interest in taking part in the project.Mr Apai said the electronic bidding process is expected to take place in August.
Mr Apai yesterday held a press conference to assure rice farmers in Khok Sung, Watthana Nakhon and Aranyaprathet districts of the cattle-raising scheme's benefits after the cabinet last week approved a budget of 971 million baht for the project that extends to 2022.
The six-year plan is designed to turn Sa Kaeo rice farmers into livestock ranchers. This would transform thousands of rais of rice fields into a massive livestock hub, rearing beef cattle, in particular, for export to Asean countries.

Calves are fed at the PC ranch.Mr Apai said once the department finishes the electronic bidding process, it will allocate the cows to registered rice farmers in three districts before a contract between the department and rice farmers is signed.
He said department officials found there are around 10 companies interested in joining the department's e-bidding procedure, with mid-range prices of 30,000 baht per cow.According to a departmental survey, there are around 690,000 breeding cows nationwide aged 18 months to three years old, as stipulated by the bidding criteria.
About 5-10%, or about 30,000-60,000 cows are forecast to be sold in markets, indicating that interested companies will be capable of finding cattle to support the department's bidding."The project will not fail like previous projects. First, all breeding cows to be sold to the department are domestic, so there will not be any problems with breeding," he said."Furthermore, we will have artificial breeding that will ensure high production. Secondly, we will run the scheme in the form of cooperatives, which will make the project more sustainable," Mr Apai said.
He said the government gave the green light to the department's scheme to transform rice plantations into grazing ground for livestock as the eastern province of Sa Kaeo is not suitable for rice cultivation due to water shortages.

He said the province is capable of raising livestock, especially for meat which is in high demand across Asean.According to the department, the number of cows that have been reared for the meat industry across the country has decreased to 4.8 from 8 million over the past decade.The project is believed to be able to subsidise the 200,000 cows that are needed every year, he said.
Mr Apai said under the scheme each registered farmer will be given five breeding cows under the condition that he or she returns the first five bred cows to the cooperative so that the cows can be passed on to other farmers who want to take part in the scheme.

Rice prices seen rising until year-end on lower stockpiles

Rice prices are expected to continue rising until the end of the year, with Thailand's state rice stocks due to be disposed of and natural disasters occurring in many countries around the world.
Commerce permanent secretary Wiboonlasana Ruamraksa reported to the National Rice Policy Committee chaired by Prime Minister Prayut Chan-o-cha that global rice demand is expected to surge throughout the year on anticipated lower production in light of natural disasters and a sharp drop in Thailand's state rice stockpiles.
The government now controls around 2.9 million tonnes, 2.7 million of which is poor-quality and decaying grain only good for industrial use and animal feed.The figure has dropped sharply from as many as 18.87 million tonnes before 2014.State rice stocks fit for human consumption have now shrunk to only 160,000 tonnes now after the government managed to sell off 1.66 million tonnes out of a total of 1.82 million tonnes put up for a second auction last month.
From the May 2014 coup till June 7, a total of 13.9 million tonnes of rice was sold via auctions, fetching 130 billion baht.The government aims to dispose of existing state rice stocks by September or October this year."There will be no more quality rice in Thailand until the main crop in November, so many countries are now in a rush to purchase rice from Thailand," said Duangporn Rodphaya, director-general of the Foreign Trade Department.
Rice prices have increased over the last two months. As of June 2, free-on-board Thai hom mali rice prices were quoted at US$715 a tonne, up from US$632 a tonne last month, while Vietnamese fragrant rice was also up to $495 a tonne from the same period from $475.
According to a report by the US Department of Agriculture, the world's rice trade is expected to stay at 41.3 million tonnes t this year and 42.3 million tonnes in 2018, up from 40.6 million tonnes in 2016

Export Summary-U.S. sells corn; Saudi Arabia buys wheat

Jun 13, 2017, 01.00 AM IST
June 12 (Reuters) - Snapshot of the global export markets for grains, oilseeds and edible oils as reported by government and private sources as of the end of business on Monday:
CORN SALE: Private exporters reported the sale of 130,000 tonnes of corn for delivery to unknown destinations in the 2016/17 marketing year.
WHEAT SALE: Saudi Arabia's main state wheat buying agency the Saudi Grains Organization bought 805,000 tonnes of hard wheat in an international tender. The purchase comprises 13 consignments to be shipped to the ports of Jeddah, Dammam and Jazan. Arrival dates range from August 1 to October 20.
WHEAT TENDER: Egypt's General Authority for Supply Commodities (GASC) set a tender on Monday to buy an unspecified amount of wheat from global suppliers for shipment from July 15-25. Tenders should reach GASC by noon local time (1000 GMT) on Tuesday. Results expected after 3:30 p.m. local time on Tuesday.
CORN, FEED WHEAT, BARLEY TENDER: A group of Israeli private buyers has issued international tenders to purchase up to 85,000 tonnes of corn, 30,000 tonnes of feed wheat and 20,000 tonnes of feed barley all of optional origins. Tenders close on June 13.
BARLEY TENDER: Jordan's state grain buyer issued an international tender to purchase 100,000 tonnes of animal feed barley to be sourced from optional origins. Tender deadline is June 15.
RICE TENDER UPDATE: The lowest price offer in the tender from Iraq's state grains buyer to purchase at least 30,000 tonnes of rice was $498.20 a tonne c&f free out for rice to be sourced from Thailand. No decision about a purchase was believed to have been made in the tender, which closed on June 11. Offers must remain valid up to June 15.
WHEAT TENDER UPDATE: Iraq's state grains board is believed to have canceled an international tender to buy at least 50,000 tonnes of wheat and no purchase has been made.
PENDING TENDERS: The lowest offer in the tender from Bangladesh's state grains buyer to purchase 50,000 tonnes of parboiled rice was $445.11 a tonne CIF liner out. Offer was made by trading house Olam.
WHEAT TENDER: Jordan's state grains buyer again issued an international tender to purchase 100,000 tonnes of hard milling wheat which can be sourced from optional origins, European traders said. The tender closes on June 13, they said.
WHEAT TENDER: The Taiwan Flour Millers' Association issued an international tender to purchase 92,400 tonnes of grade 1 milling wheat to be sourced from the United States, European traders said. The tender deadline is June 13.
SOYOIL TENDER: Iran's state purchasing agency GTC issued an international tender to purchase up to 30,000 tonnes of soyoil, European traders said. Tender deadline for the crude, degummed soyoil is July 10.
(Reporting by Mark Weinraub)
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