USA
Rice Foodservice Cookbooks Emphasize Holiday Menu
MEXICO CITY, MEXICO --
Just in time for the holiday season here, USA Rice unveiled two new cookbooks
full of exciting rice recipes: a student chefs' magazine, "Futuros
Chefs Cocinando con Arroz" (Future Chefs Cooking with Rice, Volume 2),
and "Lo Mejor del Arroz por Los Mejores Chefs de México" (The Best
of Rice by The Best Chefs in Mexico), featuring gourmet holiday dishes created
by some of the most renowned professional chefs in Mexico.
Sixty guests attended the cookbook launch party on December 18, including several chefs included in the holiday magazine, chef instructors from various institutions where USA Rice conducts activities, publishers of the magazine, student chefs, and media. The guests participated in a roundtable discussion about their experiences cooking with U.S.-grown rice, the importance of rice in foodservice, and the impact of USA Rice activities on their industry. The professional chefs said USA Rice events such as the chefs' competitions, foodservice seminars and contests, trade shows, gourmet TV Shows, social media content, and particularly the arrozgourmet.com.mx website have significantly increased their use of U.S.-grown rice in their restaurants, hotels, and businesses. They are incorporating U.S. rice more frequently in their menus because of its versatility, ease of preparation, and superior quality. Chef instructors echoed the sentiment that USA Rice activities at their schools have positively impacted their students, and are effective in influencing the prospective chefs to use U.S. rice in their future jobs. "We target culinary students because they will be in key decision-making roles in the future," said Sarah Moran, USA Rice vice president international promotion. "Students said USA Rice tutorial activities awaken their creativity and help them think about preparing rice in more varied ways." The roundtable discussion also included feedback on how to continue promoting U.S. rice and reaching a larger audience in 2018. "USA Rice cookbooks sell out fast because consumers want to learn how to make gourmet main dishes and desserts for Christmas and New Year's that can be replicated at home for holiday meals," said Rocio Navarro, Editorial Mango magazine editor. In the first ten months of 2017, the U.S. exported more than 750,000 MT ($234 million) of rice to Mexico, 12 percent more than the same time period in 2016. USA Rice's varied promotional activities have helped play a part in this increase in exports that benefit the entire industry. |
|
12:00 AM,
January 04, 2018 / LAST MODIFIED: 12:17 AM, January 04, 2018
Rice imports hit two-decade high
Soaring imports fail to rein in
prices
Rice
imports scaled a two-decade high in the first half of the fiscal year as
private importers rushed to make profit from higher prices resulting from huge
crop losses amid three episodes of floods.
Imports of the staple stood at
22.59 lakh tonnes in July-December of fiscal 2017-18, the highest since 1998-99
when a record 30.67 lakh tonnes of rice were bought from external sources in
the full fiscal year, according to food ministry data.
The government imported 5.08 lakh
tonnes of rice in July-December.
Analysts said imports soared in the
face of speculation of a decline in yield of current aman and low stocks of
previous boro rice at private mills. A slash in import duty to 2 percent from
10 percent in August gave a boost to imports.
Analysts said higher imports will
increase supply, thus helping to stabilise the market and benefit consumers.
But the government should be watchful so that higher imports do not hurt
farmers by creating a glut in the market, they added.
“Imports will continue as prices
are higher in Bangladesh compared to India,” said Citta Majumder, managing
director of Majumder Group of Industries.
Food ministry data showed letters
of credits to import 32 lakh tonnes of rice were opened until December 23 last
year.
The buoyancy in imports continues
at a time when farmers have harvested most of the aman crop, which accounts for
38 percent of the country's annual rice production.
The soaring imports and the harvest
of aman crop have increased the availability of rice. However, prices of the
staple still remain high.
In Dhaka, retail prices of the
coarse and medium quality rice, consumed by the majority of the population,
were Tk 44 to Tk 56 a kg yesterday, according to data from the state-run
Trading Corporation of Bangladesh (TCB).
Yesterday's prices of coarse and
medium quality grain were 6 percent and 4 percent higher from a month ago, show
TCB data.
Majumder said there is high
speculation that aman output declined in 2017 from a year ago.
The government decision to buy rice
at Tk 39 per kg and millers' rush to buy aman paddy contributed to the higher
prices, he said.
Majumder said the number of buyers
is high this year. Many millers don't have any stock of previous boro paddy and
entered the market to buy aman paddy to keep their mills running.
A US Department of Agriculture
report in November forecasted a drop in aman production to 1.3 crore tonnes in
the fiscal year. The agency also said overall output will decline.
In December, the Food and
Agriculture Organization said total paddy production would fall in 2017 by 3
percent to 5.08 crore tonnes, a five-year low. It estimated paddy output at
5.21 crore tonnes in 2016.
“In Bangladesh, three episodes of
severe floods during 2017 affected large areas of the country, particularly
northern districts, causing losses to the two main boro and aman crops, which
together account for more than 90 percent of total annual output,” said the
FAO.
Rezaul Karim Talukder, poverty and
social protection policy adviser of the FAO Bangladesh, said the floods and a
disease infestation in aman crop might have caused a loss of 15-20 lakh tonnes
of rice.
He said imports are rising as there
is demand from the private and public sectors.
Talukder expected the prices of
rice to become stable for increased imports and the harvest of aman.
Quazi Shahabuddin, a former
director general of the Bangladesh Institute of Development Studies, said the
private sector is importing because of the price gaps between domestic and
international markets.
He stressed ensuring a bumper boro
harvest in the coming season to bring down prices of rice.
Imports of the staple stood at
22.59 lakh tonnes in July-December of fiscal 2017-18, the highest since 1998-99
when a record 30.67 lakh tonnes of rice were bought from external sources in
the full fiscal year, according to food ministry data.
The government imported 5.08 lakh
tonnes of rice in July-December.
Analysts said imports soared in the
face of speculation of a decline in yield of current aman and low stocks of
previous boro rice at private mills. A slash in import duty to 2 percent from
10 percent in August gave a boost to imports.
Analysts said higher imports will
increase supply, thus helping to stabilise the market and benefit consumers.
But the government should be watchful so that higher imports do not hurt
farmers by creating a glut in the market, they added.
“Imports will continue as prices
are higher in Bangladesh compared to India,” said Citta Majumder, managing
director of Majumder Group of Industries.
Food ministry data showed letters
of credits to import 32 lakh tonnes of rice were opened until December 23 last
year.
The buoyancy in imports continues
at a time when farmers have harvested most of the aman crop, which accounts for
38 percent of the country's annual rice production.
The soaring imports and the harvest
of aman crop have increased the availability of rice. However, prices of the
staple still remain high.
In Dhaka, retail prices of the
coarse and medium quality rice, consumed by the majority of the population,
were Tk 44 to Tk 56 a kg yesterday, according to data from the state-run
Trading Corporation of Bangladesh (TCB).
Yesterday's prices of coarse and
medium quality grain were 6 percent and 4 percent higher from a month ago, show
TCB data.
Majumder said there is high
speculation that aman output declined in 2017 from a year ago.
The government decision to buy rice
at Tk 39 per kg and millers' rush to buy aman paddy contributed to the higher
prices, he said.
Majumder said the number of buyers
is high this year. Many millers don't have any stock of previous boro paddy and
entered the market to buy aman paddy to keep their mills running.
A US Department of Agriculture
report in November forecasted a drop in aman production to 1.3 crore tonnes in
the fiscal year. The agency also said overall output will decline.
In December, the Food and
Agriculture Organization said total paddy production would fall in 2017 by 3
percent to 5.08 crore tonnes, a five-year low. It estimated paddy output at
5.21 crore tonnes in 2016.
“In Bangladesh, three episodes of
severe floods during 2017 affected large areas of the country, particularly
northern districts, causing losses to the two main boro and aman crops, which
together account for more than 90 percent of total annual output,” said the
FAO.
Rezaul Karim Talukder, poverty and
social protection policy adviser of the FAO Bangladesh, said the floods and a
disease infestation in aman crop might have caused a loss of 15-20 lakh tonnes
of rice.
He said imports are rising as there
is demand from the private and public sectors.
Talukder expected the prices of
rice to become stable for increased imports and the harvest of aman.
Quazi Shahabuddin, a former
director general of the Bangladesh Institute of Development Studies, said the
private sector is importing because of the price gaps between domestic and
international markets.
He stressed ensuring a bumper boro
harvest in the coming season to bring down prices of rice.
http://www.thedailystar.net/business/economy/rice-imports-hit-two-decade-high-1514755.
Raid on rice
millers over paddy bungling
By Express News Service |
Published: 04th January 2018 02:02 AM |
Last Updated: 04th January 2018 07:21
AM |
Civil supply officials verify paddy bags at a godown in
Malkangiri | Express
MALKANGIRI:The civil supply officials on Wednesday raided
several godowns of 11 rice mills across the district and seized huge quantities
of paddy bags stocked illegally. It was found that the millers had stocked
crops in excess of targeted procurement.
Earlier, farmers had alleged before the district
administration that the millers engaged at the mandis used to cut down up to
1 kg of paddy per quintal for fair average quality (FAQ) testing while
buying the produce from them during the procurement. Acting on the allegations,
Collector K Sudarshan Chakravarthy had formed a squad to conduct raids on the
rice mills across the district. Recently, the team also conducted raids on 21
rice mills across the district.
Farmers’ leaders alleged that the paddy growers in the
district have incurred losses due to the nexus between unscrupulous officials
of the civil supplies department and millers. Most of the millers have stored
excess paddy procured illegally from the mandis. But the team could not unearth
it as the millers were informed about the raid by some civil supply officials,
they said.When contacted, District Civil Supply Officer Abhimanyu Mohanty said
the team is yet to submit the report of seizure.
The exact amount of excess paddy seized from the millers
will be known after the report is submitted. These 11 millers are not in a
position to maintain the stock register, while the LAMPS, which purchased paddy
and handed it over to millers, have not submitted acceptance note. An
additional procurement target of 2,58,000 quintals has been fixed after
achieving the initial target of 5,52,000 quintals of paddy. So far, 5,97,000
quintals have already been procured, he added.
Meanwhile, locals and some farmers’ organisations have
urged the Collector to reconstitute the squad alleging that some officials of
civil supply department are having nexus with the millers. They demanded
surprise raids on the rice mills.
India Express
Asia rice-markets slow into
year-end; Bangladesh awaits India shipments
THU, DEC 28, 2017 - 9:52 PM
[BENGALURU] Rice markets in major
Asian centres remained muted this week, with trades few and far between due to
the holiday season and the approaching year-end, while Bangladesh awaited
shipments from India as part of a previously announced deal.
Bangladesh, which has emerged as
a major importer this year after floods damaged its crops, has signed a deal,
announced earlier this month, to import 150,000 tonnes of rice from India at
US$440 a tonne, Badrul Hasan, head of Dhaka's state grains buyer, told Reuters
on Thursday.
Another deal with Thailand to
import 150,000 tonnes of parboiled rice at US$465 a tonne could be signed next
week, he added.
"We have already purchased
or finalised deals to fulfil our target," said Hasan, adding that the state
grains buyer aims to import 1.5 million tonnes in the year to June 2018.
The cost of rice imports has
increased in recent weeks due to weakening of the local currency against the
dollar, amid an appreciation in the Indian rupee, a Dhaka-based trader said.
In August, Bangladesh cut a duty
on imports of the grain for the second time in two months to boost stocks and
combat high domestic rates, prompting purchases by private dealers, with most
of the deals being struck with neighbouring India.
In top exporter India, the 5 per
cent broken parboiled rice prices were unchanged from last week's US$418-US$421
per tonne level.
"Due to Christmas and New
Year holidays, trading volume is down significantly. Traders are in vacation
mood," said an exporter based in Kakinada in the southern state of Andhra
Pradesh.
The Indian rupee was trading near
its highest level in three months, slashing exporters' returns from overseas
sales.
"The appreciating rupee is
keeping prices firm for overseas buyers. In the last few days, demand from
Bangladesh has been weak," said another exporter in Kakinada.
In Thailand, the benchmark 5
percent broken rice ticked up to US$398-US$400, free-on-board (FOB) Bangkok,
from US$390-US$398 last week, even as the market remained subdued, traders
said.
Trade was quiet as the end of the
year approaches and foreign buyers are not placing orders, a Bangkok-based
trader.
Meanwhile, the Thai Rice
Exporters Association forecast rice exports to exceed 11 million tonnes in
2017, a record high.
"Some of that is old rice in
state warehouses, as announced by the commerce ministry," the trader said.
The market for the staple grain
remained quiet in Vietnam as well, with traders quoting the benchmark 5 per
cent broken rice at US$390-395 a tonne, free-on-board (FOB) Saigon, the same as
last week.
Rice exports from Vietnam in
December were forecast higher than last month at 400,000 tonnes, a government
report said, with traders attributing the increase to shipment of previously
signed deals.
Paddy farmers to get Rs 500 cr
solution for stubble burning hazard
The National Capital could breathe easier next winter, as paddy
farmers in Punjab and Haryana might receive help from Niti Aayog and National
Green Tribunal to tackle paddy stubbles on their fields for readying them for
planting potato or wheat.
"The PMO is looking into this problem and they have now fixed
a Rs 500 crore budget (earlier pegged at Rs 700 cr) for Punjab and Haryana to
tackle this problem and improve air quality in Delhi," said Lakshmi
Raghupathy, a former deputy director of the ministry of environment and forest,
and now an environment services expert. "This subsidy should go to farmers
on purchase of machinery like harvesters and zero tillers. And a part of it
would be used to subsidize industries who would use these refuse as fuel as
subsidy on its transport cost," said Raghupathy. Raghupathy, who was
recently engaged with the National Green Tribunal as an adviser on the
committee investigating the cause of stubble burning, said: "The NGT
recommends penalizing farmers. But disgruntled debt-stressed farmers refuse to
pay them." She said that the Niti Aayog has been tasked with finding the
correct use of the central subsidy to the two states. "NTPC have said that
they will use 10 per cent of stubble based pellets in their fuel mix for power
plants." NTPC has already floated tenders for receiving such Refuse
Derived Fuel (RDF) for their power plants from Punjab and Haryana. The tenders
are likely to be opened on January 10. Haryana government had extended a plan
to the Niti Aayog to use these crop stubbles for board making, as a supplement
to wood, for furniture. A number of cement plants have also started to
use crop stubbles as fuel supplement. In Punjab, about 27 cement plants had
conducted pilots of using crop stubble in their fuel mix and all plants have
subsequently started to use them, the state government informed the NGT panel.
Meanwhile, industries, too, have sought to pitch in with their bit in the
effort to stop the menace of stubble burning n Delhi's struggle for clean
breathable air. On behalf of the industries, CII's Sustainability Centre is
also looking at ways to subsidize farmers for use of crop stubble as a bio-fuel
or for other alternative means to reduce stubble burning in the open. "In
south India farmers plough the stubbles and burn them inside mud silos. This is
not practical in north India where farmers have many acres of land than when
compared to in south India," said Raghupathy. According to her, the Niti
Aayog is likely to finalise the policy to tackle the issue of crop stubble
burning shortly. In the next few months the Aayog would also frame a policy for
implementation on the ground, way ahead of the next paddy harvesting season in
north India's rice belt.
Rice basmati, wheat edge up on
increased offtake
New Delhi, Jan 3 () Prices of rice basmati and wheat
firmed up by upto Rs 100 per quintal at the wholesale grains market today due
to increased offtake. Traders said pick up in demand from retailers mainly led
to rise in rice basmati prices. Increased offtake by flour mills amid pause in
arrivals from producing belts helped wheat prices to trade a tad higher, they
said. In the national capital, rice basmati common and Pusa- 1121 variety went
up by Rs 100 each to Rs 7,600-7,700 and Rs 6,300-6,400 per quintal
respectively. Wheat dara (for mills) also edged up by Rs 10 to Rs 1,780-1,795
per quintal. Atta chakki delivery followed suit and traded higher by a similar
margin to Rs 1,790-1,795 per 90 kg. Following are today's quotations (in Rs per
quintal): Wheat MP (desi) Rs 2,080-2,280, Wheat dara (for mills) Rs
1,780-1,795, Chakki atta (delivery) Rs 1,790-1,795, Atta Rajdhani (10 kg) Rs
260-300, Shakti Bhog (10 kg) Rs 255-290, Roller flour mill Rs 960-970 (50 kg),
Maida Rs 990-1,000 (50 kg)and Sooji Rs 1,050-1,060 (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 7,600-7,700, Rice Pusa (1121) Rs 6,300-6,400, Permal raw
Rs 2,300-2350, Permal wand Rs 2,350-2,400, Sela Rs 2,700-2,900 and Rice IR-8 Rs
1,925-1,975, Bajra Rs 1,225-1,230, Jowar yellow Rs 1,375-1,425, white Rs
2,750-2,850, Maize Rs 1,340- 1,345, Barley Rs 1,480-1,490. KPS ADI BAL
Rice: Thailand, India to lose $8m
daily
…as Nigeria bans imports Thailand and India, the biggest exporters of rice to
Nigeria, may lose over $8 million per day, following the country’s plan to stop
importation of rice this year, New Telegraph has learnt. President Muhammadu
Buhari hadm in his New Year message, last Monday, said that Nigeria will stop
rice importation this year.
A report obtained by our correspondent put the exports
to Nigeria by the pair at $8 million per day. Besides, statistics from the
Federal Ministry of Agriculture and Rural Development (FMARD) revealed that
government was already pruning rice importation quota to importers in order to
pave the way for massive local production. The report stated that this was
already causing panic in the two countries’ economies. Minister of Agriculture
and Rural Development, Chief Audu Ogbeh, was quoted as saying in the report
that the plan to stop rice importation was also sending jitters into the
international market, especially major countries benefitting from Nigeria’s
rice importation. Ogbeh said Nigeria’s annual food import bill of around $20
billion could not be sustained under the current economic atmosphere, adding
that backward integration programme was the solution to attaining
industrialisation.
He said that
Nigeria was the largest rice producer in Africa and also the continent’s
biggest importer of the grain. The report revealed that Africa’s richest man,
Aliko Dangote’s announcement last year that he was making a $1 billion
investment in Nigeria’s rice production seemed to vindicate government’s
approach. It stated that Dangote Group planned to produce one million tons of
parboiled milled rice over the next five years, equivalent to 16 per cent of
domestic demand. Other big players in the production chain include Lagos-based
conglomerate, TGI, which opened a rice mill in August with a capacity of
120,000 tons and Olam Nigeria, part of Singapore-based Olam International,
which plans to boost its existing rice output.
Also, it stated that Dangote’s rice initiative planned
to provide inputs such as seeds and fertiliser, as well as training for nearly
50,000 medium and smallholder farmers, who will then provide their land and
labour. The report added that some of the government initiatives were in place
to promote small-scale agriculture. They include the CBN’s $300 million Anchor
Borrowers’ Programme, introduced in 2015 to provide cheap loans and input
subsidies for hundreds of thousands of smallholder farmers.
In addition, the
World Bank is also supporting government’s agricultural transformation strategy
with a $200 million loan to support small-to mid-scale rice production.
Government’s grow-your-own push seems to be working, according to the report.
However, in his response to the country’s bid to end rice importation this
year, the Managing Director of Kano State Agricultural and Rural Development
Authority, Mahmoud Daneji, said that government may have a laudable programme
on the table on rice self-sufficiency, but many of the smallholder farmers, who
produce over 90 per cent of Nigeria’s food face an uphill battle to maintain
that supply. “You may have a very laudable programme, but in as much as there
is no input from the potential beneficiaries, it will definitely fail,” he
revealed. Daneji listed the problems farmers face to include lack of access to
quality seeds, fertiliser, effective agricultural extension systems and access
to credit for those who need it.
He explained
that despite the raft of initiatives aimed at boosting output, farmers still
typically worked with their bare hands in fields lacking irrigation, live in
areas with poor roads that limit their access to markets and are facing a
growing threat of climate change without advice on how to adapt. “In a survey
last year, farmers cited the lack of fertiliser as their biggest problem by
far, despite a long-running government input programme.
Nearly three-quarter of respondents said they were
unaware of any government interventions aimed at helping them,” he said. Also,
the Kano State chair of the All Farmers Association of Nigeria, Abdulrashid
Magaji, said the bulk of government programmes rarely reached their intended
target. “They go instead to political favourites and close associates of
politicians,” he alleged.
Firms, groups seek
government OK to import rice
January 3, 2018
In Photo: In this file photo, a worker arranges sacks
of rice at a National Food Authority warehouse. The government allows the private
sector to import rice under the minimum access volume scheme to boost local
supply.
The National Food Authority (NFA)
said 297 companies and farmers’ organizations have applied for permits to
import more than 2 million metric tons (MMT) of rice under the minimum access
volume (MAV) scheme.
The NFA, the private firms and
farmers’ organizations would purchase some 2.2 MMT of imported rice, nearly
triple the 850,200 metric tons (MT) of the country’s MAV for 2017. Imports
within MAV are usually slapped a lower tariff.
“The NFA was able to generate
P14.8 million from the nonrefundable application fee of P50,000 from each MAV
applicant, while P2.4 billion was remitted to the national treasury as advance
payment of customs duties made by 156 applicants as of December 15,” the NFA
said in a recent statement.
Under Memorandum Circular
AO-2017-08-002, which detailed the guidelines for the MAV 2017 importation,
rice traders will be allowed to source from countries with a specific quota and
from omnibus origin, or other rice-producing countries.
Of the total applicants, 266
private firms and farmers’ organizations want to import 2.028 MMT of rice from
Thailand, Vietnam, Pakistan and India. The remaining 31 rice traders will buy
171,971 MT from other rice-producing countries.
However, rice traders and
farmers’ groups can only import 293,100 MT of rice from Thailand and Vietnam.
They can also import 50,000 MT of rice from China, India and Pakistan; 15,000
MT from Australia; and 4,000 MT from El Salvador.
Under the importation guidelines,
if the total applied volume under the MAV exceeds the quota, then the NFA will
distribute the import allocation on a pro rata basis among the qualified
applicants.
Well-milled rice imported under
the 2017 MAV program will be slapped a 35-percent tariff, according to the
importation guidelines. The quality should also not lower be than 25-percent
brokens and/or any special rice variety.
The importation guidelines also
indicated that after all importers have filed their letter of intent, the NFA
MAV prequalification team will conduct the validation and authentication of all
the requirements submitted by the applicants.
The NFA Council, the highest
policy-making body of the NFA, has divided the arrival of rice
imports under the 2017 MAV into two phases: from December 20, 2017, until
February 28; and June 1 until August 31.
The NFA said the council did this
to ensure that the arrival of rice imports will not coincide with the harvest
season.
imports under the 2017 MAV into two phases: from December 20, 2017, until February 28; and June 1 until August 31.
https://businessmirror.com.ph/firms-groups-seek-government-ok-to-import-rice/ Rice basmati, wheat edge up on increased offtake
PTI | Jan 3, 2018, 14:22 IST
New Delhi, Jan 3 () Prices of rice basmati and wheat firmed up
by upto Rs 100 per quintal at the wholesale grains market today due to
increased offtake.
Traders said pick up in demand from retailers mainly led to rise
in rice basmati prices.
Increased offtake by flour mills amid pause in arrivals from
producing belts helped wheat prices to trade a tad higher, they said.
In the national capital, rice basmati common and Pusa- 1121
variety went up by Rs 100 each to Rs 7,600-7,700 and Rs 6,300-6,400 per quintal
respectively.
Wheat dara (for mills) also edged up by Rs 10 to Rs 1,780-1,795
per quintal. Atta chakki delivery followed suit and traded higher by a similar
margin to Rs 1,790-1,795 per 90 kg.
Following are today's quotations (in Rs per quintal):
Wheat MP (desi) Rs 2,080-2,280, Wheat dara (for mills) Rs
1,780-1,795, Chakki atta (delivery) Rs 1,790-1,795, Atta Rajdhani (10 kg) Rs
260-300, Shakti Bhog (10 kg) Rs 255-290, Roller flour mill Rs 960-970 (50 kg),
Maida Rs 990-1,000 (50 kg)and Sooji Rs 1,050-1,060 (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 7,600-7,700, Rice
Pusa (1121) Rs 6,300-6,400, Permal raw Rs 2,300-2350, Permal wand Rs
2,350-2,400, Sela Rs 2,700-2,900 and Rice IR-8 Rs 1,925-1,975, Bajra Rs
1,225-1,230, Jowar yellow Rs 1,375-1,425, white Rs 2,750-2,850, Maize Rs 1,340-
1,345, Barley Rs 1,480-1,490. KPS ADI BAL
Rice imports hit two-decade high
Soaring imports fail to rein in prices
12:00
AM, January 04, 2018 / LAST MODIFIED: 11:04 AM, January 04, 2018
Rice imports
scaled a two-decade high in the first half of the fiscal year as private
importers rushed to make profit from higher prices resulting from huge crop
losses amid three episodes of floods.
Imports of the staple stood at 22.59 lakh tonnes in July-December
of fiscal 2017-18, the highest since 1998-99 when a record 30.67 lakh tonnes of
rice were bought from external sources in the full fiscal year, according to
food ministry data.
The government imported 5.08 lakh tonnes of rice in July-December.
Analysts said imports soared in the face of speculation of a
decline in yield of current aman and low stocks of previous boro rice at
private mills. A slash in import duty to 2 percent from 10 percent in August
gave a boost to imports.
Analysts said higher imports will increase supply, thus helping to
stabilise the market and benefit consumers. But the government should be
watchful so that higher imports do not hurt farmers by creating a glut in the
market, they added.
“Imports will continue as prices are higher in Bangladesh compared
to India,” said Citta Majumder, managing director of Majumder Group of
Industries.
Food ministry data showed letters of credits to import 32 lakh
tonnes of rice were opened until December 23 last year.
The buoyancy in imports continues at a time when farmers have
harvested most of the aman crop, which accounts for 38 percent of the country's
annual rice production.
The soaring imports and the harvest of aman crop have increased
the availability of rice. However, prices of the staple still remain high.
In Dhaka, retail prices of the coarse and medium quality rice,
consumed by the majority of the population, were Tk 44 to Tk 56 a kg yesterday,
according to data from the state-run Trading Corporation of Bangladesh (TCB).
Yesterday's prices of coarse and medium quality grain were 6
percent and 4 percent higher from a month ago, show TCB data.
Majumder said there is high speculation that aman output declined
in 2017 from a year ago.
The government decision to buy rice at Tk 39 per kg and millers'
rush to buy aman paddy contributed to the higher prices, he
said.
Majumder said the number of buyers is high this year. Many millers
don't have any stock of previous boro paddy and entered the market to buy aman
paddy to keep their mills running.
A US Department of Agriculture report in November forecasted a
drop in aman production to 1.3 crore tonnes in the fiscal year. The agency also
said overall output will decline.
In December, the Food and Agriculture Organization said total
paddy production would fall in 2017 by 3 percent to 5.08 crore tonnes, a
five-year low. It estimated paddy output at 5.21 crore tonnes in 2016.
“In Bangladesh, three episodes of severe floods during 2017
affected large areas of the country, particularly northern districts, causing
losses to the two main boro and aman crops, which together account for more
than 90 percent of total annual output,” said the FAO.
Rezaul Karim Talukder, poverty and social protection policy
adviser of the FAO Bangladesh, said the floods and a disease infestation in
aman crop might have caused a loss of 15-20 lakh tonnes of rice.
He said imports are rising as there is demand from the private and
public sectors.
Talukder expected the prices of rice to become stable for
increased imports and the harvest of aman.
Quazi Shahabuddin, a former director general of the Bangladesh
Institute of Development Studies, said the private sector is importing because
of the price gaps between domestic and international markets.
He stressed ensuring a bumper boro harvest in the coming season to
bring down prices of rice.
http://www.thedailystar.net/business/economy/bangladesh-rice-imports-hit-two-decade-high-in-2017-18-fiscal-year-1514755
Firms, groups seek government OK to import rice
January 3, 2018
In Photo: In this file photo, a worker arranges sacks
of rice at a National Food Authority warehouse. The government allows the
private sector to import rice under the minimum access volume scheme to boost
local supply.
The National Food Authority (NFA)
said 297 companies and farmers’ organizations have applied for permits to
import more than 2 million metric tons (MMT) of rice under the minimum access
volume (MAV) scheme.
The NFA, the private firms and
farmers’ organizations would purchase some 2.2 MMT of imported rice, nearly
triple the 850,200 metric tons (MT) of the country’s MAV for 2017. Imports
within MAV are usually slapped a lower tariff.
“The NFA was able to generate
P14.8 million from the nonrefundable application fee of P50,000 from each MAV
applicant, while P2.4 billion was remitted to the national treasury as advance
payment of customs duties made by 156 applicants as of December 15,” the NFA
said in a recent statement.
Under Memorandum Circular
AO-2017-08-002, which detailed the guidelines for the MAV 2017 importation,
rice traders will be allowed to source from countries with a specific quota and
from omnibus origin, or other rice-producing countries.
Of the total applicants, 266
private firms and farmers’ organizations want to import 2.028 MMT of rice from
Thailand, Vietnam, Pakistan and India. The remaining 31 rice traders will buy
171,971 MT from other rice-producing countries.
However, rice traders and
farmers’ groups can only import 293,100 MT of rice from Thailand and Vietnam.
They can also import 50,000 MT of rice from China, India and Pakistan; 15,000
MT from Australia; and 4,000 MT from El Salvador.
Under the importation guidelines,
if the total applied volume under the MAV exceeds the quota, then the NFA will
distribute the import allocation on a pro rata basis among the qualified
applicants.
Well-milled rice imported under
the 2017 MAV program will be slapped a 35-percent tariff, according to the
importation guidelines. The quality should also not lower be than 25-percent
brokens and/or any special rice variety.
The importation guidelines also
indicated that after all importers have filed their letter of intent, the NFA
MAV prequalification team will conduct the validation and authentication of all
the requirements submitted by the applicants.
The NFA Council, the highest
policy-making body of the NFA, has divided the arrival of rice
imports under the 2017 MAV into two phases: from December 20, 2017, until
February 28; and June 1 until August 31.
The NFA said the council did this
to ensure that the arrival of rice imports will not coincide with the harvest
season.
imports under the 2017 MAV into two phases: from December 20, 2017, until February 28; and June 1 until August 31.
Rice: Thailand, India to lose $8m daily
…as Nigeria bans imports
Thailand and India, the
biggest exporters of rice to Nigeria, may lose over $8 million per day,
following the country’s plan to stop importation of rice this year, New
Telegraph has learnt.
President Muhammadu Buhari hadm in his New Year message, last Monday, said that
Nigeria will stop rice importation this year.
A report obtained by our correspondent put the exports to Nigeria by the pair
at $8 million per day.
Besides, statistics from the Federal Ministry of Agriculture and Rural
Development (FMARD) revealed that government was already pruning rice
importation quota to importers in order to pave the way for massive local
production.
The report stated that this was already causing panic in the two countries’
economies.
Minister of Agriculture and Rural Development, Chief Audu Ogbeh, was quoted as
saying in the report that the plan to stop rice importation was also sending
jitters into the international market, especially major countries benefitting
from Nigeria’s rice importation.
Ogbeh said Nigeria’s annual food import bill of around $20 billion could not be
sustained under the current economic atmosphere, adding that backward
integration programme was the solution to attaining industrialisation.
He said that Nigeria was the largest rice producer in Africa and also the
continent’s biggest importer of the grain.
The report revealed that Africa’s richest man, Aliko Dangote’s announcement
last year that he was making a $1 billion investment in Nigeria’s rice
production seemed to vindicate government’s approach.
It stated that Dangote Group planned to produce one million tons of parboiled
milled rice over the next five years, equivalent to 16 per cent of domestic
demand.
Other big players in the production chain include Lagos-based conglomerate,
TGI, which opened a rice mill in August with a capacity of 120,000 tons and
Olam Nigeria, part of Singapore-based Olam International, which plans to boost
its existing rice output.
Also, it stated that Dangote’s rice initiative planned to provide inputs such
as seeds and fertiliser, as well as training for nearly 50,000 medium and
smallholder farmers, who will then provide their land and labour.
The report added that some of the government initiatives were in place to
promote small-scale agriculture.
They include the CBN’s $300 million Anchor Borrowers’ Programme, introduced in
2015 to provide cheap loans and input subsidies for hundreds of thousands of
smallholder farmers.
In addition, the World Bank is also supporting government’s agricultural
transformation strategy with a $200 million loan to support small-to mid-scale
rice production. Government’s grow-your-own push seems to be working, according
to the report.
However, in his response to the country’s bid to end rice importation this
year, the Managing Director of Kano State Agricultural and Rural Development
Authority, Mahmoud Daneji, said that government may have a laudable programme
on the table on rice self-sufficiency, but many of the smallholder farmers, who
produce over 90 per cent of Nigeria’s food face an uphill battle to maintain
that supply.
“You may have a very laudable programme, but in as much as there is no input
from the potential beneficiaries, it will definitely fail,” he revealed.
Daneji listed the problems farmers face to include lack of access to quality
seeds, fertiliser, effective agricultural extension systems and access to
credit for those who need it.
He explained that despite the raft of initiatives aimed at boosting output,
farmers still typically worked with their bare hands in fields lacking
irrigation, live in areas with poor roads that limit their access to markets
and are facing a growing threat of climate change without advice on how to
adapt.
“In a survey last year, farmers cited the lack of fertiliser as their biggest
problem by far, despite a long-running government input programme. Nearly
three-quarter of respondents said they were unaware of any government
interventions aimed at helping them,” he said.
Also, the Kano State chair of the All Farmers Association of Nigeria,
Abdulrashid Magaji, said the bulk of government programmes rarely reached their
intended target.
“They go instead to political favourites and close associates of politicians,”
he alleged
President Muhammadu Buhari hadm in his New Year message, last Monday, said that Nigeria will stop rice importation this year.
A report obtained by our correspondent put the exports to Nigeria by the pair at $8 million per day.
Besides, statistics from the Federal Ministry of Agriculture and Rural Development (FMARD) revealed that government was already pruning rice importation quota to importers in order to pave the way for massive local production.
The report stated that this was already causing panic in the two countries’ economies.
Minister of Agriculture and Rural Development, Chief Audu Ogbeh, was quoted as saying in the report that the plan to stop rice importation was also sending jitters into the international market, especially major countries benefitting from Nigeria’s rice importation.
Ogbeh said Nigeria’s annual food import bill of around $20 billion could not be sustained under the current economic atmosphere, adding that backward integration programme was the solution to attaining industrialisation.
He said that Nigeria was the largest rice producer in Africa and also the continent’s biggest importer of the grain.
The report revealed that Africa’s richest man, Aliko Dangote’s announcement last year that he was making a $1 billion investment in Nigeria’s rice production seemed to vindicate government’s approach.
It stated that Dangote Group planned to produce one million tons of parboiled milled rice over the next five years, equivalent to 16 per cent of domestic demand.
Other big players in the production chain include Lagos-based conglomerate, TGI, which opened a rice mill in August with a capacity of 120,000 tons and Olam Nigeria, part of Singapore-based Olam International, which plans to boost its existing rice output.
Also, it stated that Dangote’s rice initiative planned to provide inputs such as seeds and fertiliser, as well as training for nearly 50,000 medium and smallholder farmers, who will then provide their land and labour.
The report added that some of the government initiatives were in place to promote small-scale agriculture.
They include the CBN’s $300 million Anchor Borrowers’ Programme, introduced in 2015 to provide cheap loans and input subsidies for hundreds of thousands of smallholder farmers.
In addition, the World Bank is also supporting government’s agricultural transformation strategy with a $200 million loan to support small-to mid-scale rice production. Government’s grow-your-own push seems to be working, according to the report.
However, in his response to the country’s bid to end rice importation this year, the Managing Director of Kano State Agricultural and Rural Development Authority, Mahmoud Daneji, said that government may have a laudable programme on the table on rice self-sufficiency, but many of the smallholder farmers, who produce over 90 per cent of Nigeria’s food face an uphill battle to maintain that supply.
“You may have a very laudable programme, but in as much as there is no input from the potential beneficiaries, it will definitely fail,” he revealed.
Daneji listed the problems farmers face to include lack of access to quality seeds, fertiliser, effective agricultural extension systems and access to credit for those who need it.
He explained that despite the raft of initiatives aimed at boosting output, farmers still typically worked with their bare hands in fields lacking irrigation, live in areas with poor roads that limit their access to markets and are facing a growing threat of climate change without advice on how to adapt.
“In a survey last year, farmers cited the lack of fertiliser as their biggest problem by far, despite a long-running government input programme. Nearly three-quarter of respondents said they were unaware of any government interventions aimed at helping them,” he said.
Also, the Kano State chair of the All Farmers Association of Nigeria, Abdulrashid Magaji, said the bulk of government programmes rarely reached their intended target.
“They go instead to political favourites and close associates of politicians,” he alleged
One reason Nigeria's dream of
ending rice importation in 2018 is not achievable
·
Published: 03.01.2018
·
Shakirudeen
Taiwo
Activities of rice smugglers in various border towns and
communities across the country show the dream is far from being achieved.
Rice
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President Muhammadu Buhari says
Nigeria would end the importation of rice from 2018, but this dream seems to be
a mirage due to porous borders across the country.
The president stated this in his
address to the nation on Monday, January 1, 2018, to mark the beginning of a
new year. According to him, a lot of people responded positively to his appeal
of returning back to the farm in 2015. Hence, the increase in local capacity
production of rice and other agricultural products.
“I am highly gratified that
agriculture has picked up, contributing to the government’s effort to
restructure the economy,” he said.
“Rice imports will stop this
year. Local rice, fresher and more nutritious rice will be on our dishes from
now on.”
However, activities of rice
smugglers in various border towns and communities across the country show the
dream is far from been achieved. These border towns are major smuggling routes parboiled
rice from Thailand gets into the country illegally.
According to statistics by
the Thailand Association of Rice Exportation,
the total export of rice to Nigeria reduced by -59% between 2016 and 2017
(56,790 MT in 2016 and 23,192 MT in 2017). This is -96.4% when compared with
the country’s import in 2015 (644,131 MT). Within the same period, the number
of rice export to the Benin Republic went up by 19.9% (8,736,630 MT in 2016 and
10,474,084 MT in 2017).
And over 90% of these rice imports
are planned for shipment into Nigeria. This is because the population of Benin
Republic never increased as such to absorb this level of
rice importation.
Without smuggling activities in
Nigeria, it will be impossible to end the importation of rice. An occurrence of
little supply shortage would prompt illegal in flocks of these products.
Hereby, creating a market imbalance
that would push up the price of rice in the local market.
Bangladesh December inflation eases to 5.83 pct y/y
DHAKA, Jan 3 (Reuters) -
Bangladesh's annual inflation rate in December eased to 5.83 percent from 5.91
percent the previous month, the statistics bureau said on Wednesday, as prices
of non-food items rose at a slower pace.
Annual inflation in October climbed
to a 2-year high of 6.04 percent on the back of surging food prices.
Food prices in December were 7.13
percent higher than a year earlier, and higher than November's 7.09 percent.
In contrast, non-food inflation
moderated to 3.85 percent in December from 4.10 percent the previous month.
Food inflation has accelerated
mainly due to a surge in the price of rice, the staple for the population of
160 million. Higher prices of meat, pulses, milk and other items also
contributed.
The government has started bulk
rice imports for the first time since 2011 to combat record prices after floods
hit domestic output amid dwindling state reserves.
In August, Bangladesh cut a duty on
rice imports for the second time in two months. But domestic prices hardly
moved, posing a problem for the government, which faces a general election this
year.
The central bank left key interest
rates unchanged in July, saying it was trying to balance economic growth and
inflation risks.
Inflation eased to 5.44 percent in
the financial year that ended in June, as non-food prices rose at a slower pace
but food prices climbed to a two-year high. (Reporting by Ruma Paul)
Bulog to adopt new approach for better
absorption of farmers' rice
Jakarta | Thu, January 4, 2018 | 11:54 am
Farmers
carry bushels of harvested rice to a mill on Oct. 13, 2017 in Ngawi, East Java.
(Antara/Ari Bowo Sucipto)
The National Logistics Agency (Bulog) has said
on Wednesday that it will change its approach in purchasing rice to enable it
to absorb more unhusked rice from farmers, according to a kompas.com report.
Bulog purchased 2.1 million tons of unhusked
rice from farmers last year, or a mere 57 percent of its 2017 target of
3.7 million tons.
Bulog procurement director Andrianto Wahyu Adi
said on Wednesday at the Agriculture Ministry that the agency could not
optimally purchase rice from farmers as part of the government’s
mechanism to control the prices of unhusked rice from farmers, as it had
to wait for the farmers to sell their rice.
In terms of the agency's change in approach, he
said Bulog would no longer use the public service obligation (PSO) mechanism,
with prices determined by the government, to purchase unhusked rice
from farmers this year. Instead, the agency would buy the commodity at commercial
prices.
“If we use commercial prices, we can buy rice
according to market prices. We hope that the prices will [thus] be
more competitive,” Andrianto said.
He said Bulog planned to buy 2.7 million tons
of unhusked rice in 2018, after taking into account last year's absorption
rate, which fell well below target.
He said the agency was no longer tasked with
distributing subsidized rice to low-income households, following the
government's decision to distribute assistance through a cashless
mechanism. (bbn)
Following the free fall in global nickel
prices, more smelter companies in Indonesia have begun halting operations.
The number of smelters ceasing nickel
processing activities increased to 17 in the first days of July, compared to 13
smelters that halted operations in June, said Processing and Smelting Companies
Association (AP3I) deputy chairman Jonathan Handojo on Sunday.
“All of the smelters that halted operations
were granted operational permits from the Investment Coordinating Board
[BKPM],” Jonathan said as quoted by kontan.co.id,
adding that BKPM chairman Thomas Lembong planned to meet with AP3I
representatives to discuss the issue.
He blamed the situation on the government for
allowing an overflow of raw mineral exports.
The government recently granted Indonesian
company PT Ceria Nugraha Indotama (CNI) permission to export 2.3 million tons
of nickel ore after the company promised to develop a smelter in Kolaka,
Southeast Sulawesi.
As a result, the price of benchmark nickel for
three-month delivery on the London Metals Exchange (LME) fell by nearly 3
percent to US$9,130 per ton on July 6, compared to $9,410 on July 3. (dea).
Bags of rice and essential
commodities scattered after the accident near Aspari in Kurnool district on
Wednesday. | Photo Credit: U. SUBRAMANYAM
They were
returning home after working in Nalgonda district
Seven agricultural labourers were
killed and 22 others sustained grievous injuries when a tipper overturned after
its rear tyre burst, near the railway gate at Chinnahothur, near Aspari in
Kurnool district, on Wednesday.
Several migrant labourers
belonging to Kothapet village in Holagunda mandal in the district had gone to
Nalgonda in Telangana about two months ago to work in cotton fields there. On
completion of work, they purchased rice and essential commodities enough for
about six months and engaged a tipper to return to their native place,
according to Boya Hanumanthu, whose brother died in the accident.
Tragedy struck the agricultural
workers who were happy to have earned money to fend their families for a few
months, when the tipper overturned and essential commodities packed in several
gunny bags fell on them and got scattered on the road. Alur Circle Inspector
Ghouse and Aspari sub-inspector Sankaraiah rushed to the accident spot and
shifted the injured to hospital.
Shaikamma (45), Narasamma (46),
Govindamma (55), and Hanumanthamma (16) died instantly, while Sravanthi and
Veeramma succumbed to injuries on way to the Government hospital at Adoni,
according to the police. Ten severely injured persons were admitted to hospital
at Adoni. A dozen other critically wounded workers were rushed to Kurnool
General Hospital, but Boya Narayana (55) succumbed to injuries on the way.
Boya Durgamma (40), Boya Neelamma
(35), Balaraju (16), Lakshmi (16), Boya Sunkanna, Hanumanthu and Sravanthi (8),
are undergoing treatment in Kurnool. Chief Medical Officer S. Manjula of
casualty ward in Kurnool General Hospital said of the 12 injured persons
admitted in the casualty ward, the condition of four is critical.
http://www.thehindu.com/news/national/andhra-pradesh/7-farm-workers-killed-as-tipper-overturns/article22364690.ece ws
Commodity Prices
Soar Due to Bad Weather
TEMPO.CO, Jakarta - Data from the Trade Ministry show that commodity prices soared on January
2-3. The commodities are rice, wheat, soybean, meat, eggs, onion, instant
noodles and beans.Director General of Trade for the Trade Ministry Tjahya
Widayanti said that the price increase was caused by bad weather that has
occurred since the end of last year.
Bank Indonesia has reported
commodity prices increase, including chili peppers, green bird’s eye chili, red
bird’s eye chili, cooking oil and premium sugar.
“Plants are prone to rain
showers. It’s the law of supply-demand; it happens [due to rising demand],”
Tjahya Widayanti said today.
According to Tjahya, the
government has issued Agriculture Minister’s Regulation No. 27/2017
on benchmark staple food prices for farmers and consumers that
applies since May 16, 2017.
The staple foods are rice, corn,
soybean, sugar, cooking oil, red onion, frozen meat, chicken and eggs
https://en.tempo.co/read/news/2018/01/04/056914548/
Commodity-Prices-Soar-Due-to-Bad-Weather NFA to standardize terms of contracted services
By Jed
Macapagal
January 04, 2018
The
National Food Authority (NFA) said it will fully implement standard terms of
reference (TOR) for its contracted services such as security, trucking, hauling
and warehouse handling, among others, starting this month.
“The standardization of TORs for service contracts will realize a true,
transparent and competitive bidding in NFA services. It is one of my priority
reform measures since I assumed stewardship of the agency,” NFA administrator
Jason Aquino said in a statement.
NFA said a standard TOR for security services was recently finalized and will
be implemented starting this month in all its offices nationwide.
According to Aquino, contracts, memoranda of agreement and memoranda of
understanding entered into by NFA’s central and field offices varied in form
and content even if they were compliant with pertinent provisions of the law.
For instance, he said, every contract is covered by TOR, but TORs for similar
contracts varied in the various offices of the agency.
Last year, Aquino required all NFA central office department and regional
managers to submit to the agency’s Legal Affairs Department all copies of
contracts entered into in 2016 and earlier, and hold the signing and execution
of new contracts and agreements in order to standardize all contracts across 15
regional and 89 provincial offices nationwide.
He also created a team to look into existing contracts and draft a uniform or
standardized format and TOR for specific agreements such as services, supplies,
and linkages with other government agencies, the private sector and local
government units.
“As a matter of policy, I will allow partiality or bias only if it is in favor
of the government,” Aquino said.
In line with the reforms, concerned NFA personnel were also required to attend
seminars on the Government Procurement Law to ensure that all procurement
procedures are complied.
Earlier, NFA also mentioned it will continue to build up its food security
buffer stocks from domestic palay procurement and rice importation, if necessary,
under a regime where quantitative restriction (QR) on rice has been lifted.
The agency made the statement following speculations that with the lifting of
rice QR in favor of higher tariffs on rice imports, NFA may have to be
reorganized to limit its functions to proprietary activities such as buffer
stocking and local procurement.
“If the past few years are any indication, we have seen a trend where palay
farmgate prices have been on the uptrend, higher than NFA’s support price of
P17 per kilogram. This is the reason we have not been able to meet procurement
targets, resorting to importation to fill in the buffer stock requirement for
food security,” Aquino said recently.
NFA believes it will take a while before the domestic rice market would be able
to adjust to the non-QR regime, but noted the government should continue to
provide safety nets for farmers who may be most affected by the free entry of
imported rice into the country.
NFA also said while performing buffer stock functions, it shall continue to
issue import licenses and provide necessary guidelines to ensure food safety
and quality standards.
QR allows the country to limit the volume of rice imports entering the
Philippines with a tariff of 35 percent. Importing outside the volume restrictions
will entail a higher import tariff.
The economic managers of the Duterte administration earlier decided to allow
the expiration of the QR without applying for another extension before the
World Trade Organization (WTO).
The WTO granted the Philippines an extension of its QR on rice importation
until June 30, 2017 to give local farmers more time to prepare for free trade.
It first allowed the Philippines to impose a 10-year QR on rice imports in
1995. It was extended in 2004 until 2012, and was renewed again in 2014.
“The standardization of TORs for service contracts will realize a true, transparent and competitive bidding in NFA services. It is one of my priority reform measures since I assumed stewardship of the agency,” NFA administrator Jason Aquino said in a statement.
NFA said a standard TOR for security services was recently finalized and will be implemented starting this month in all its offices nationwide.
According to Aquino, contracts, memoranda of agreement and memoranda of understanding entered into by NFA’s central and field offices varied in form and content even if they were compliant with pertinent provisions of the law.
For instance, he said, every contract is covered by TOR, but TORs for similar contracts varied in the various offices of the agency.
Last year, Aquino required all NFA central office department and regional managers to submit to the agency’s Legal Affairs Department all copies of contracts entered into in 2016 and earlier, and hold the signing and execution of new contracts and agreements in order to standardize all contracts across 15 regional and 89 provincial offices nationwide.
He also created a team to look into existing contracts and draft a uniform or standardized format and TOR for specific agreements such as services, supplies, and linkages with other government agencies, the private sector and local government units.
“As a matter of policy, I will allow partiality or bias only if it is in favor of the government,” Aquino said.
In line with the reforms, concerned NFA personnel were also required to attend seminars on the Government Procurement Law to ensure that all procurement procedures are complied.
Earlier, NFA also mentioned it will continue to build up its food security buffer stocks from domestic palay procurement and rice importation, if necessary, under a regime where quantitative restriction (QR) on rice has been lifted.
The agency made the statement following speculations that with the lifting of rice QR in favor of higher tariffs on rice imports, NFA may have to be reorganized to limit its functions to proprietary activities such as buffer stocking and local procurement.
“If the past few years are any indication, we have seen a trend where palay farmgate prices have been on the uptrend, higher than NFA’s support price of P17 per kilogram. This is the reason we have not been able to meet procurement targets, resorting to importation to fill in the buffer stock requirement for food security,” Aquino said recently.
NFA believes it will take a while before the domestic rice market would be able to adjust to the non-QR regime, but noted the government should continue to provide safety nets for farmers who may be most affected by the free entry of imported rice into the country.
NFA also said while performing buffer stock functions, it shall continue to issue import licenses and provide necessary guidelines to ensure food safety and quality standards.
QR allows the country to limit the volume of rice imports entering the Philippines with a tariff of 35 percent. Importing outside the volume restrictions will entail a higher import tariff.
The economic managers of the Duterte administration earlier decided to allow the expiration of the QR without applying for another extension before the World Trade Organization (WTO).
The WTO granted the Philippines an extension of its QR on rice importation until June 30, 2017 to give local farmers more time to prepare for free trade.
It first allowed the Philippines to impose a 10-year QR on rice imports in 1995. It was extended in 2004 until 2012, and was renewed again in 2014.
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