Tuesday, June 11, 2019

11th June,2019 Daily Global Regional Local Rice E-Newsletter

Heavy late-season rainfall leaves local rice farmers struggling
Heavy rainfall delays planting, creates uncertainty for local farmers
By NATALIE HANSON | nhanson@chicoer.com | Chico Enterprise-Record
PUBLISHED: June 9, 2019 at 4:19 am | UPDATED: June 10, 2019 at 2:50 pm
Heavy late-season rainfall leaves local rice farmers struggling
Heavy rainfall delays planting, creates uncertainty for local farmers
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A full rice field has been planted on a clear day in Chico. (Chico Rice -- Contributed)
By Natalie Hanson | nhanson@chicoer.com | Chico Enterprise-Record
June 9, 2019 at 4:19 am
Record-breaking rain this past May has already delayed many rice farmers in Butte County this year, and has left some uncertain about the year’s harvest yields.
As of the end of May, rainfall for this year is at 130 percent of average for the period since October as reported by the Department of Water Resources, according to Kelly Peterson, a water resources scientist for the county. In the month of May alone, over 4 inches was received, which has caused a variety of problems for local rice farms.
Rice is the main crop damaged by these types of storms in May, according to Ted Trimble, general manager at the Western Canal Water District. Rice depends on warm weather starting in April into May, he said, in order to give growers time to properly prepare fields for planting.
This year, the planting season was repeatedly interrupted by colder temperatures and exceptionally heavy rainfall. Records going back to 1921 indicate that the highest previous amount of rain for the month of May in Butte County was 3.7 inches, Trimble said. This year, that record was broken with over 4.2 inches received.
Wet year, high losses
The reason for so much delay? Rice fields need enough time after significantly wet storms to dry out for planting, Trimble said, and the types of storms received this May came in waves close enough together, with record amounts of water, to necessitate delayed plantings.
Luis Espino, rice farming systems adviser for the county, said that an average year sees about 1 inch of rainfall, so over 4 inches in May is extremely wet for ideal planting conditions.
Rice growers in the Chico area hit peak season for planting in the first and second weeks of May, he said, and some growers had to wait to rework their fields, while others cut corners by flooding and reseeding their fields.
What’s the result? Projected losses of harvested rice crops for the year are already at 10 percent based on these delays, Trimble confirmed.
These losses are similar to those seen in 2017, when heavy rains late into spring also disrupted farming.
That’s why growers are wary of rain past early May, he said, because it delays the planting and subsequent harvest of crops. If rice is planted later in May or into June, it is harvested in late October and early November. A cold, wet November can mean the loss of a significant number of acres, with more rain and less daylight for proper maturation.
So growers are always nervous about “June rice,” Trimble said, because it increases the risk of lost yields later in the year. The average yield each year is 9,000 pounds per acre, meaning that a 10 percent loss is, on average, 1,000 pounds lost per acre of rice. Put into perspective, there are about 100,000 acres of rice grown in Butte County, of about half a million acres of rice fields in the whole Sacramento Valley.
Cooler temps delay growth
Another factor, Espino said, is that heavy rainfall brought continued cooler temperatures. The National Weather Service confirmed that this year’s temperatures were cooler than average throughout May. Because rice is a crop that prefers higher temperatures, the cool weather set back a lot of crops.
“I was talking to some growers, who were saying everything (already planted) still looked delayed for about a week,” Espino said.
With temperatures rising, he said, plants might start recovering, but it doesn’t fix the time needed for repair and restoration.
Local growers stay positive
Despite the rain, some local farmers are optimistic about the season. Tom Knowles of Chico Rice said that his farm began preparing their fields in mid-April after delays due to heavy March rain, and got their planting finished on May 15 just as the storms that week arrived.
“We personally got lucky,” he said, adding that many of his neighbors weren’t as lucky and had to stop their planting before it was finished to let the rain pass.
Of the continued storms, “It’s still been frustrating,” he said.
“Every time it rains we can’t access the fields … and they get too much water.”
However, he said that because his farm grows organic rice, they are able to let excess water drain from the fields as they do not use herbicides. In contrast, conventional growers are heavily impacted due to needing to let water sit to make sure herbicides keep working.
In spite of these setbacks, Knowles feels positive about the upcoming harvest.
“Rice farmers are very resilient (here),” he said. “I feel very fortunate to be farming in California … our Mediterranean climate, land and soil are a blessing.

Vietnamese scientists discover weed inhibitors in rice husk

By Nguyen Xuan   June 11, 2019 | 03:29 pm GMT+7
Vietnamese scientists have discovered four bio active compounds to inhibit cockspur grass (pictured) and other invasive plants. Photo by Shutterstock/m.aditia2910.

A team of Vietnamese scientists have isolated four bioactive compounds in rice husk capable of inhibiting invasive plants.

The four are Momilactone A, B, E (MA, MB, ME) and 7-ketostigmasterol (7KS), according to a study published in the Plants journal on June 7 by scientists from Nguyen Tat Thanh University in Ho Chi Minh City and Hiroshima University in Hiroshima, Japan.
MA and MB are capable of weed suppression in addition to inhibition of diabetes, obesity and gout, which the team had previously published. ME and 7KS also exhibited inhibitory capabilities though not as strong as that of MA and MB.
Tran Dang Xuan, head of the Plant Physiology and Biochemistry Laboratory at Hiroshima University and a member of the research team, said the four substances in rice husk were isolated and extracted through column chromatography, and later the structures of the compounds were determined using spectral techniques.
After determining the ratio of the four compounds in husk, the team continued to test their inhibitory abilities on cockspur grass and late goldenrod, two of many harmful and invasive plants that seriously affect rice production and harm the environment.
The team will focus on using MA, MB, ME and 7KS to inhibit weeds and invasive plants and develop safer, environment-friendly new herbicides.

Vietnam’s agricultural products facing barriers to enter Chinese market

VNA MONDAY, JUNE 10, 2019 - 16:50:00 
Description: https://cdnimgen.vietnamplus.vn/t660/Uploaded/wbxx/2019_06_10/vietnamese_bananas.jpgBananas are packaged for export (Photo: VNA)

Hanoi (VNS/VNA) - Many of Vietnam’s agricultural products, especially rice, vegetables and cassava, have faced barriers preventing their export to China, according to the Ministry of Agriculture and Rural Development (MARD).

The MARD’s Agricultural Product Processing and Market Development Department said cassava is the latest export from Vietnam to China to face strict controls on labelling, packaging and information as well as a tightening of import procedures at border gates.

The department said cassava exports to China are expected to be reduced in the second quarter of this year due to lower demand.

Cassava is one of the agricultural products to have seen billions of USD of exports in recent years. But in the first five months of this year, the sector earned revenue of about 414 million USD from shipping 1.08 million tonnes, down 11 percent in value and 17.6 percent in volume year on year, vietnamnet.vn reported.

China continues to be the largest export market for Vietnamese cassava, but the first four months of this year saw exports of the product to the Chinese market fall by 16.4 percent in volume and 3.5 percent in value compared to the same period of 2018.

Previously, the most populous market in the world also strengthened barriers to Vietnamese rice exports.

From the beginning of 2018, China increased import duties on sticky rice from 5 percent to 50 percent and added stricter controls on other rice imports.

Only 20 out of 150 rice export enterprises in Vietnam have received permission to bring their products to China.

Le Thanh Hoa, Deputy Director of the Agricultural Product Processing and Market Development Department, said the new fees and standards have made it hard to sell rice in the traditional export market.

Vietnam exported a total of 2.83 million tonnes of rice in the first five months of this year, earning 1.21 billion USD. These numbers were down 4 percent in volume and 20.7 percent in value year on year.

China dropped to Vietnam's seventh largest rice export market in the first two months of this year, according to the General Department of Customs

Although there are many trade barriers, Hoa still expects Vietnam's high quality rice exports to China to increase after China has announced that 22 Vietnamese enterprises will be permitted to export to this market.

The Ministry of Industry and Trade will also negotiate rice export quotas to the Republic of Korea.

Vietnam expects to increase rice exports to the Indonesian market in the third and fourth quarters. It has also opened talks with the Philippines on contracts to import the product, according to the department.

China has promoted traceable origins and quality management and has asked fruit exporters to register codes showing where  the fruits were planted. The changes have created disadvantages for Vietnamese fruit exporters, especially for those that sell fresh local fruits. For instance, exports of pineapples from Lao Cai and bananas from Lai Chau have slumped severely.

The vegetable and fruit sector promoted exports to highly demanding countries in the first four months of this year including Australia (up 39.9 percent), the Netherlands (up 29.22 percent), the Republic of Korea (up 25.53 percent) and France (up 24.81 percent).

Recently, Vietnamese mangoes have begun to be exported to the US. Mangoes are Vietnam's sixth fruit licensed for export to the US market after dragon fruit, rambutan, longan, lychee and star apple.

The export value of Vietnamese fruits and vegetables in the first five months of 2019 reached 1.83 billion USD, a year-on-year increase of 10.3 percent.

Experts in the sector said the efforts to find alternative markets will help Vietnam's agricultural sector reduce its dependence on the Chinese market and grow despite China's new trade barriers.-VNS/VNA

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USA Rice Daily
Description: Summer is coming: First heat advisory of the year issued for Butte County

CHICO -- A major heat advisory has been issued for Butte County from Monday morning and through Wednesday according to the National Weather Service. Temperatures could reach as high as 105 degrees Fahrenheit on Tuesday. The weather service warns that many health related issues could increase as a result of prolonged heat in the forecast. Heat-related illnesses such as heat...
Description: Wildfire contained near Sutter Buttes

Lack of milling facility forces paddy-surplus Tripura to spend crores on rice imports
While procurement has become popular among farmers, insufficient collection is forcing the government to shell out hundreds of crores every year for rice imports while they have got all the rice right at home.
Written by Debraj Deb | Agartala |
Published: June 10, 2019 5:31:57 pm
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Tripura, Tripura paddy, Tripura Rice, Tripura rice procurement, Tripura rice farmers, Tripura rice MSP, Tripura news, Indian Express
Tripura government is buying paddy at Rs. 1750 per quintal in 20 locations spread across 18 rural development blocks. (Express photo: Debraj Deb)
Tripura’s BJP-led state government is procuring 10,000 MT paddy from farmers at Minimum Support Price (MSP) starting Monday, even as the Centre’s Food Corporation of India (FCI), which procured paddy for the first time here in 2018, has declined to do so this year.

Unlike 2018, when paddy was procured from 10 locations, the government is buying paddy at Rs. 1750 per quintal in 20 locations spread across 18 rural development blocks.

However, this procurement accounts for merely 1.25 percent of paddy produced in Tripura and the state government still spends over Rs. 600 crores for FCI imports every year. So, why is the government spending hundreds of crore when it has got all the stocks it needs right at home?

Tripura, Tripura paddy, Tripura Rice, Tripura rice procurement, Tripura rice farmers, Tripura rice MSP, Tripura news, Indian Express
Farmers in the field say the project has already started to gain traction in rural hamlets as trouble-torn paddy cultivators have finally got respite from predatory rates imposed by middlemen. (Express photo: Debraj Deb)
“We procured 10 thousand MT paddy from the state with support from Food Corporation of India (FCI) last year. We tried to convince them to repeat it but they have declined so far. So, we have decided to procure 10,000 MT paddy at Rs. 1,750 per quintal on our own with a cumulative subsidy of Rs. 2.25 crores”, Tripura Food and Civil Supplies Minister Manoj Kanti Deb told reporters.

Meanwhile, farmers in the field say the project has already started to gain traction in rural hamlets as trouble-torn paddy cultivators have finally got respite from predatory rates imposed by middlemen.

Tripura, Tripura paddy, Tripura Rice, Tripura rice procurement, Tripura rice farmers, Tripura rice MSP, Tripura news, Indian Express
Indrajit Singh
Nilmohan Das, Indrajit Das and Himangshu Das, three small farmers from Mirza village in Gomati district, 70 km from here, told indianexpress.com that they grew around 20 quintal paddy each in 2018, out of which they sold 8 quintal paddy per head to the government after fulfilling his staple food requirements and got Rs. 1,750 per quintal or Rs. 17.50 per Kg which is nearly double the prevalent market rates.

“This is way higher than the prevalent market rates. The scheme is really good for farmers. But they should buy more paddy from us and the price should be increased”, they said.

Amulya Charan Debnath, Bikash Das and Nripendra Kumar Bhowmik of Rajibnagar village in Sabroom of South Tripura today sold their paddy to government for the first time. “We are very happy at the price government is giving us. They should purchase more paddy from us”, they said.

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Superintendent of Agriculture Ajay Debbarma who supervised the Paddy Procurement Centre set up at Rajibnagar said farmers have given highly positive response to the procurement drive. “We have received 40 MT paddy till 3 PM today. We have a target of 100 MT paddy procurement every day till June 16”, the official said.

Why procurement is less
While procurement has become popular among farmers, insufficient collection is forcing the government to shell out hundreds of crores every year for rice imports while they have got all the rice right at home.

Tripura, Tripura paddy, Tripura Rice, Tripura rice procurement, Tripura rice farmers, Tripura rice MSP, Tripura news, Indian Express
While procurement has become popular among farmers, insufficient collection is forcing the government to shell out hundreds of crores every year for rice imports while they have got all the rice right at home. (Express photo: Debraj Deb)
As per Agriculture Department reports, Tripura needs 3 lakh metric tons of rice per year as per Public Distribution System (PDS) requirement. It produces 12 lakh metric ton paddy annually including Boro, Aman and Aush crops.

Citing Agriculture reports, Assistant Director for Food and Public Distribution Sushanta Banerjee said 10-12 lakh metric ton paddy is produced annually in Tripura. This reduces to around 8 lakh metric ton rice since nearly one-third of paddy bulk is lost during husking process. However, the bulk can’t be purchased due to lack of milling facility and the government still has to spend over Rs. 600 crores per year behind paddy imports via FCI.

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Tripura earlier set a ten-year target for food self sufficiency in 2002-03. The target was not achieved at the time of evaluation in 2012-13 and barely 25 thousand MT meat, 12.5 crore eggs and 1.05 MT milk was produced annually at the time. Later, erstwhile Left Front government set a new target for self sufficiency in food production by 2020.

The incumbent BJP-led government stressed on importance of achieving self-sufficiency in food production but despite repeated attempts, has failed to cut down on its import dependency so far.

Asked why his department is not saving on the paddy imports, Food minister Manoj Kanti Deb said there are only two rice mills in Tripura, which can’t process all paddy produced here and the government can’t accept unhusked rice.

High milling charge
Former Horticulture Director Baharul Islam Majumder, who is credited with introduction of the popular SRI or System of Rice Intensification in 2002, said public procurement is not working out so far since milling charge is very high in Tripura. “Hefty milling charge causes the rate to go so high that it exceeds FCI-approved rates. Milling infrastructure needs to be developed here in order to reduce the price of rice”, he said.

One more hindrance in the way of public procurement of paddy is that the government can’t accept paddy stocks which have more than 17 percent moisture in them, over 6 percent mixture of low quality grains, over 5 percent germinated, discoloured grains and over 2 percent foreign matters and there are not enough proper husking and cleaning facilities here.

The Food Minister, who comes from a farming family of Dhalai district himself, said he sold paddy grown in his fields at Rs. 10-12 per Kilo in 2018. But the government procurement provides a Minimum Support Price (MSP) of Rs. 17.50 per Kilo to farmers, generating nearly double income for them. The problem is that the system has a sale ceiling of 2 quintal for each farmer this year.

With all preparations on the ground, farmers in Tripura only hope that government will come to them in the fields and buy their crops at MSP at much larger quantities, putting an end to price deprivation and poverty for them

China to import US$500m of Myanmar rice this year: minister
Description: Aung Htay Hlaing/The Myanmar Times
The value of rice Kunming will import from Myanmar this year is expected to reach US$500 million this year through a barter arrangement, deputy commerce minister U Aung Htoo claimed.
A memorandum of understanding was signed between the two countries for bartering goods recently. “According to report sent from Kunming roughly that they would buy rice worth about US$500 million this year from us under this agreement,” the official said on June 10.

Myanmar will also import machineries, equipment and steels from China with the same value.  The ministry’s permanent secretary U Aung Soe denied that Myanmar businesses do not like Chinese machineries and equipment because of their quality. Barter trading is no longer a modern approach in commerce but it is necessary to sell the surplus rice produced, he continued. Under a sister-city programme, China will purchase 100,000 tonnes of good-quality rice from Myanmar. But, as there are only 11 mills inspected and certified by China, rice from only those mills can be exported.  In order to be able to export the full volume efficiently, another 99 rice mills are undergoing inspections, U Aung Htoo said. According to a negotiation reached between the two countries, additional rice mills have been inspected by Myanmar Inspection and Testing Services (MITS) as a third party. However, the results are not yet available, said U Toe Aung Myint from MITS. Decision on the issue will be made at the next meeting on June 14. “The price of the rice depends on its quality. Sometimes the price can be higher than the estimate,” said U Aung Soe. – Translated

Vietnam’s Mekong Delta opts for smart rice farming
HO CHI MINH CITY, June 11 (Xinhua) -- Vietnam's Mekong Delta, including 12 southern provinces and Can Tho city, are increasingly switching to smart rice farming to improve yields, cut costs and protect the environment, local media reported on Tuesday. They use fewer seeds, pesticides and fertilizers compared to traditional farming methods without losing out on yield or quality, while utilizing advanced technologies like smart rice seeding and transplanting machines and other smart devices, daily newspaper Vietnam News reported. In Dong Thap and Tra Vinh provinces, farmers have used smart rice farming to good effect. Their use of urea has declined by around 40 percent and the cost of labor for fertilizing their fields has fallen by 75 percent. Fertilizer deep placement has helped reduce greenhouse gases by 40 percent when used with alternate wetting and drying irrigation. Smart farming reduces the amount of water required for irrigation by 30 percent and the labor cost and seed requirement by 50 percent. It also reduces saltwater intrusion into rice fields as farmers can actively regulate freshwater through smart devices that monitor the quality of water. The profit from this model is 20 percent higher than from traditional methods, according to farmers. The delta, Vietnam's rice granary, has nearly 1.7 million hectares of rice fields, with 300,000-400,000 hectares affected by saltwater intrusion through rivers in the dry season. Vietnam exported nearly 2.8 million tons of rice worth roughly 1.2 billion U.S. dollars in the first five months of this year, posting respective year-on-year decreases of 5.3 percent and 20 percent, according to its General Statistics Office.


Mauritius tenders to buy 6,000 tonnes white rice -trade
HAMBURG: The state purchasing agency in Mauritius has issued an international tender to buy 6,000 tonnes of rice sourced from optional origins, European traders said on Tuesday. The long grain white rice is sought for delivery between Aug. 1 to Oct. 31 in shipping containers. The tender deadline is June 17.

Rice export prices in India, Thailand firmer
Rice export prices in India and Thailand strengthened this week as gains in local currencies prompted traders to raise prices of the staple, while Bangladesh will likely struggle to compete with top exporters despite a slide in domestic rates. India's 5 percent broken parboiled variety was quoted around $366-$369 per tonne this week, up from last week's $364-$367. "For the last few weeks demand is weak. Buyers are reluctant to make purchases at current price level," said an exporter based at Kakinada in the southern state of Andhra Pradesh. The Indian rupee hit the highest level in more than seven weeks on Wednesday, reducing exporters' margins from overseas sales. The late arrival of monsoon rains in India could also delay planting of summer-sown rice, dealers said. In the world's second largest exporter, Thailand, benchmark 5 percent broken rice prices narrowed to $393-$402 a tonne on Thursday, free on board Bangkok (FOB) from $385-$402 last week. "The baht is stronger and this is the only factor that is influencing the price right now," a Bangkok-based trader said. Demand for the Thai variety has, however, remained flat since the start of the year, with traders not expecting any major changes in the short and medium term. "In the past, demand used to pick up towards the end of the Muslim holy month of Ramadan but this year there has been no sign of that," another Bangkok-based trader said. Bangladesh, meanwhile, will find it difficult to export rice given the country's produce was expensive even after a fall in domestic prices, traders said. "Overall rice export markets are dull now. Moreover, we'll have to compete with India and Thailand. They can offer less than us even after the fall," a trader in Dhaka said. The South Asian country last week lifted its long-standing ban on rice exports, hoping to sell as much as 1.5 million tonnes to support farmers following a drastic drop in domestic prices. "Bangladesh's rice is very expensive compared to supplies from India or Thailand. At the market price no one will buy it," said a Mumbai-based dealer with a global trading firm. In Vietnam rates for 5 percent broken rice were quoted around $350-$360 a tonne on Thursday, compared with $350 last week, traders said. "Prices of the winter-spring harvest edged up due to low supplies, while prices of the ongoing summer-autumn harvest remained flat from last week," a trader based in Ho Chi Minh City said. Buyers from Philippines have purchased the winter-spring harvest rice strongly over the past few weeks to get the remaining supplies of winter produce, which is of higher quality than the summer-autumn harvest, the trader said. However, shipments from Vietnam are expected to be moderate for the rest of this month before the summer-autumn harvest peaks, according to traders.


China donates over 11,000 tonnes of rice to Kenyans affected by drought

Source: Xinhua| 2019-06-11 00:10:44|Editor: Mu Xuequan
NAIROBI, June 10 (Xinhua) -- China has donated 11,835 tonnes of rice to Kenya's drought victims, a Chinese envoy said on Monday.
Wu Peng, Chinese Ambassador to Kenya, told journalists in Nairobi that the first batch has already been distributed and is currently benefiting the drought-affected people.
"The shipment for the second batch of 1,500 tonnes will start by the end of this month," Wu said during the Handover Ceremony of the China-aided project of emergency humanitarian rice donation to Kenya.
Wu added that the Chinese embassy is working closely with the Kenyan government to ensure quick transportation and efficient distribution of the more batches to come.
He added that in 2017, the Chinese government announced a 22 million dollars worth of emergency humanitarian food aid to Kenya.
He noted that 21,366 tonnes of rice were shipped to Kenya within one year and has supported millions of drought-affected people.
"Now, I am very glad to see that the project is officially completed and handed over," the Chinese envoy said.
Wu said that China hopes and believes that all the emergency food assistance provided by the Chinese side will effectively alleviate the difficulties of Kenyan people and help the vulnerable rebuild their normal life.
He observed that China is one of Kenya's most important development partners and its assistance to Kenya will be closely aligned with the Big Four Agenda, especially the manufacturing industry.
He added that since Kenya gained independence in 1963, China has financed nearly 100 projects through grants, interest-free loans and concessional loans, supporting the development of vast areas such as infrastructure, health, education, and agriculture.
The Chinese diplomat said that the two governments are also working together on the China-Africa Trainers College of Vocational Education, which aims at training teachers with vocational skills, thus cultivating the "seeds" for skill enhancement, job creation and income improvement for the local people.
"We look forward to the day that the seeds grow into big trees that nourish Kenya's national development and China-Kenya relations," he added.
Eugene Wamalwa, cabinet secretary of the ministry of devolution and arid and semi-arid lands (ASALs) said that China has always stood with Kenya whenever it has faced challenges.
He noted that in 2016/2017 financial year, many Kenyans had been facing drought and China come to the aid of Kenya.
"The rice donation was timely; it came at the time when the country was faced with a prolonged drought which had put the lives of three million people on the verge of starvation."
"Distribution of the rice together with other quantities of relief food ensured that, no deaths were reported. The gesture of China is commended," he added.
He observed that Kenya faced drought in January due to the failure of the October to December rains in 2018.
"However we have been lucky in May as we have experienced some rain across the country that has brought some relief especially to the arid and semi arid counties," he added.
He observed that experts have indicated that the rains will come to an end at the beginning of July and so the country is expected to experience a biting drought not just in the arid areas but across the country.
"We want to thank China for the brotherly hand that has reached us in time to provide food to less fortunate Kenyans," he said.

No solution in sight for falling palay prices

Philippine Daily Inquirer / 05:15 AM June 10, 2019
Not even the Rice Competitiveness Enhancement Fund (RCEF) may save farmers from the falling prices of palay.
In an interview, Socioeconomic Planning Undersecretary Rosemary Edillon said the RCEF program—a subsidy of P10 billion yearly for the rice industry—would not help in raising palay rates, adding that it might take at least three years before palay prices would stabilize.
The government’s latest price monitoring report showed that the farmgate price of palay further slid to P18.20 a kilogram during the third week of May, continuing the downward trend that started in January.
This is 13.7 percent lower from year-ago level, although economic managers stressed that last year was an “abnormal” period for the rice industry given the huge spike in rice prices.
“The expectation is that prices will stabilize at some point,” Edillon said, referring to the staple. “Right now, it’s still finding its price which depends on supply and demand … It would take some time to find that steady state because players are trying to find that balance under the new rice regime.”
She said importers were just beginning to look not just into the Philippine market but the world market for rice. This explains why big companies like the SM Group, Aboitiz’s food arm Pilmico, Puregold Price Club and AgriNurture Inc. have yet to start importing rice even after securing the required permits.
Asked whether the RCEF program of the government would help in pushing prices up, the official gave a firm no.
“Not even the funds [could help] because when the funds are disbursed, they will still need to go to the farmers. It may take three to five years before the price will stabilize,” she said.
The RCEF is intended to cushion rice farmers from the blows of liberalization by subsidizing them with machinery and seeds and by providing credit and training to ensure that their produce will be competitive against imports.
The fund is mandated by the new rice law and should run for the next six years starting this year, but this year’s allocation has yet to be released and disbursed.
Once the subsidy is exhausted, import duties from rice would be funneled into the RCEF to ensure the continuity of the fund’s life, which was estimated to hit billion a year.
Edillon said the economic agency was scheduled to meet on Tuesday to discuss an in-depth study on rice which the National Economic and Development Authority had commissioned.
Consumers feel benefits of rice liberalization
Latest data from the Philippine Statistics Authority (PSA) showed that prices of Filipinos’ main staple continued to be on the downward trend following arrival of private sector imports.
Louise Maureen Simeon (The Philippine Star) - June 10, 2019 - 12:00am
MANILA, Philippines — Nearly three months since the opening of the rice market, local consumers continue to enjoy lower prices, but farmers remain to be at the losing end.
Latest data from the Philippine Statistics Authority (PSA) showed that prices of Filipinos’ main staple continued to be on the downward trend following arrival of private sector imports.
In its regular update on palay, rice and corn prices, PSA said the average wholesale price of well-milled rice is now at P39.44 per kilogram at the end of May.
This is five percent lower than the P41.30 per kilo level from the same period a year ago.
Its weekly average retail price also decreased by two percent to P43.10 per kilo.
Meanwhile, the wholesale price of regular-milled rice was P35.73 per kilo, nearly one percent below the previous week. Its average retail price was flat at P38.76 per kilo.
While consumers are benefitting from the opening up of the market, local farmers are suffering from declining palay farm gate prices.
The average farm gate price of palay continued to decrease to P18.20 per kilo from the previous week’s level of P18.24 per kilo.
The current price is a 14 percent drop from the P21.08 per kilo last year when the rice liberalization has yet to become a law.
In fact, buying price of palay has dropped to a low of P11 to P13 per kilo in some areas.
The Philippine Chamber of Agriculture and Food Inc. (PCAFI) earlier said the rice tariffication has so far stripped P95 billion in income for farmers as the influx of cheap rice from other countries is pulling down prices.
“At the prevailing price of palay at farm gate which declined by around P5 per kilogram, Filipino farmers are deprived with as much as P95 billion in income. It is based on the country’s local palay production of 19 million metric tons annually,” PCAFI said.
The lower farm gate price is caused by the increased local harvest and is exacerbated by imports flooding the commercial market.
Total rice inventory as of April stood at 2.63 million metric tons (MT), 21 percent higher than last year’s volume stock of 2.18 million MT.
This is also 18 percent up from the previous month’s volume stock of 2.22 million MT.
Under the Rice Tariffication Law, quantitative restrictions on rice importation are lifted and private traders are allowed to import the commodity from countries of their choice.
The Rice Tariffication Law replaced the government’s quantitative restrictions on importation of the staple with a 35 percent tariff.
The measure also created the Rice Competitiveness Enhancement Fund (RCEF) or a special rice buffer fund, with an initial P10-billion annual fund, to ensure rice production competitiveness. https://www.philstar.com/business/2019/06/10/1925033/consumers-feel-benefits-rice-liberalization

India Rice export prices rise on firm Rupee

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Rice export prices in India strengthened this week as gains in local currency prompted traders to raise prices of the staple.
India’s 5 percent broken parboiled variety was quoted around $366-$369 per tonne this week, up from last week’s $364-$367, Reuters reported.
The Indian rupee hit the highest level in more than seven weeks on Wednesday, reducing exporters’ margins from overseas sales.
Releasing the third advance estimates of production of major crops for 2018-19, the agriculture ministry said the country’s rice production is estimated at an all-time-high of 115.63 million tonnes during 2018-19, beating the previous record of 112.76 million tonnes achieved in 2017-18 crop year.
Source: Commodity Online
Govt to procure 2,50,000 mt paddy directly from farmers: Minister  

·     UNB NEWS

·     PUBLISH DATE - JUNE 11, 2019, 05:49 PM

·     145 VIEWS
·     UPDATE DATE - JUNE 11, 2019, 06:33 PM
Description: Govt to procure 2,50,000 mt paddy directly from farmers: Minister  
Dhaka, June 11 (UNB) – The government is going to procure some 2,50,000 metric tonnes of paddy directly from farmers so that they can enjoy the benefits of farming, said Food Minister Sadhan Chandra Majumder on Tuesday.
The minister came up with the disclosure while addressing a press conference at the secretariat. 
“The government previously decided to procure 12,00,000 tonnes of rice and 1,50,000 tonnes of paddy. But, now it has decided to buy 2,50,000 tonnes more as farmers are being deprived of the fair price of paddy due to its bountiful  production,” he said.
With the addition one, he said, the total paddy procurement of the government will now stand at 4,00,000 mts.
“The paddy will be bought at Tk 26 per kg. The government has so far managed to procure 30,000 mts of paddy from farmers. Paddy won’t be bought for the second time from the farmers enlisted by the Agriculture Department,” the minister said.   
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Agriculture Minister Dr Abdur Razzak who was also present at the press conference said, “The government will increase the procurement from 4,00,000 tonnes to  2/1 tonnes further, if necessary.”
“The Prime Minister is very concerned at the low price of paddy. Yesterday, the Prime Minister said profit has to be ensured for framers within the shortest possible time and for that we’ll buy more paddy from them,” Dr Razzak said.
The ongoing food grain procurement programme which started on April 25 will continue till August 31.
Earlier, farmers at different parts of the country staged protests in different ways demanding fair prices of their produce as they have been counting huge losses.
Students of different educational institutions of different parts of the country also had helped farmers harvest their paddy to minimize their losses.
Mill owners are reportedly buying maximum rice at lower prices in haor areas.
The production cost of per maund of rice, including the labourer cost, is said to be Tk 1,000 while its selling price is only Tk 550 to Tk 750 at the local market.
·      MUSHTAQ GHUMMAN

·      JUN 11TH, 2019

·      ISLAMABAD
The Economic Survey 2018-19 reveals that exports registered a decline of 0.1 percent during July-April FY2019. The export target for FY2019 was set at $ 28 billion. As per PBS data, exports during July-April FY2019 reached US$ 19.17 billion as compared to US$ 19.19 in July-April FY2018. A slowdown in economic growth in the European Union, along with spillovers from US-China trade tensions, led to subdued performance in exports. Textile sector remained the most vulnerable sector in these global headwinds.

Monthly analysis shows that globally synchronized slowdown has started hitting our economy and after showing some resilience exports started to retreat. However, March 2018 showed a phenomenal growth with $ 2.2 billion exports in one month so it was expected that March 2019 might not be that much phenomenal. April 2019 has registered highest export figure in the current fiscal year. Exports remained above US$ 2 billion in four months of FY2019. However, overall exports have dampened due to global headwinds.

The government has taken number of initiatives including economic reform package (2019), supply of gas and electricity to zero rated industry at lower cost, continuation of prime minister''s export package of 2017, sales tax refunds and duty drawbacks, incentive package (2019) and formulation of Strategic Trade Policy Framework (2018-2023). Government has reduced cost of production of textile sector by abolishing regulatory duty on cotton imports. Moreover, second free trade agreement has been signed with China, providing tariff concessions to 313 items. Pakistan is expanding its marketing and trade promotion campaign to all the major markets.

While addressing the occasion of the launch of Economic Survey of Pakistan 2018-19, the Advisor on Commerce, Textile, Industries & Production and Investment Abdul Razak Dawood highlighted the following prominent achievements of the current government relating to trade: (i) deindustrialization has been stopped. Now the industries have got more production orders than in the previous year; (ii) Pakistan''s exports have increased in quantity terms and shown sustainability in value terms despite a downturn in the global market. In quantity terms, exports have increased by 7.14% in the last 10 months; (iii) due to the policy of the current government imports have contracted by around $ 4.5 billion in the last 11 months (July-May). The trade deficit has reduced to US$ 29 billion which was US$ 33 billion last year (July-May); and (iv) Pakistan has recently gained market access to China and Indonesia which will enhance exports of the country. Pak China FTA Phase-II has been signed and Indonesia has granted unilateral market access to Pakistan on 20 tariff lines.

The State Bank of Pakistan has maintained low rates for export refinancing schemes and fixed investment to allow export sector industries to make investments on competitive basis. In order to increase exports, the government continued the five export oriented sectors - including textile, leather, sports goods, surgical goods and carpets - as part of zero rated sales tax regime. Devaluation has increased the cost of imported raw materials. However, this has been largely offset by the export incentives provided including larger export rebates, withdrawal of import duties on inputs of raw materials and intermediate goods and, more recently, the issuance of promissory notes against refunds due along with subsidies on gas and electricity consumed. All these measures likely to pay dividends with a lag effect.

During July-March FY2019, the exports reached to $ 17.07 billion as compared to US$ 17.06 billion in the same period last year, which shows a meager growth of 0.1 percent as compared to 11.6 percent growth same period last year.

Food group constituting 19.6 percent of overall exports posted a decline of 2.4 percent as compared to same period last year. Within the food group, export of rice comprising of 44.4 percent of total food group declined by 0.5 percent causing a major setback in overall food exports. The quantum drop in rice was 5.0 percent but its value declined by 0.5 percent. This underwhelming picture is attributed to the competition faced by Pakistan from its competitors like Africa and China. Pakistani exporters are facing tough time against Chinese competitors as they are offloading their stock at lower prices.

However, to tackle this situation government is taking necessary steps including reclaiming traditional markets besides accessing new markets. Removal of restriction by Qatar on Pakistani rice export is a step in this direction that will reclaim Pakistan''s share in the global rice market. Moreover, China has agreed to give duty free access to 200,000 tons of rice from Pakistan in the current calendar year. The other important components of food group which registered a positive growth include oil seeds, nuts & kernels, spices and wheat. Sugar exports declined by 68.2 percent on account of the withdrawal of subsidies and completion of earlier announced quotas.

Exports of textile manufacturers, which accounts for 58.5 percent in total exports witnessed a trivial growth of 0.1 percent and remained at US$ 9.99 billion in July-March FY2019 as compared to US$ 9.98 billion during the same period last year. Within the group, knitwear and bed wear registered positive growth but it was offset by the decline in cotton yarn and cotton cloth. Low demand from EU and lower unit prices, particularly for knitwear, contributed to the lackluster performance of this group. Textile trade agreements have been signed at Texpo Pakistan 2019 which will support textile exports.

Export of the textile items like knitwear comprises 12.6 percent of total exports and 21.6 percent of textile exports increased in both quantity and value by 14.8 and 9.29 percent respectively. Readymade garments with 11.5 percent share in total exports and 19.6 percent share in textile exports registered a positive growth of 2 percent in value and 28.1 percent in quantity. Value-added exports increased due to growing demand and improvement in export competitiveness after exchange rate adjustment.

Cotton cloth having 9.3 percent share in total exports and 16 percent in textile exports declined by 2.1 percent in value but its quantum increase was 18.1 percent. Bed- wear with a share of 10.1 percent in exports and 17.21 percent in textile group, increased both in quantity and in value by 10.3 percent and 2.7 percent, respectively. Cotton yarn has 4.9 percent share in total exports and 8.35 percent in textile group, decreased in both quantity and value by 15.7 percent and 15.4 percent, respectively.

Towels'' having a share of 3.4 percent in total exports and 5.88 percent share in textile group decreased both in quantity and in value by 11.0 percent and 1.8 percent, respectively.

Raw cotton having a share of 0.1 percent in total exports and 0.16 percent in textile group, decreased in both quantity and value by 71.2 percent and 71.8 percent, respectively may be due to declining international cotton prices from 2.15 $/kg in June 2018 to 1.92 $/kg in April 2019.

Petroleum group having a negligible share of 2 percent in total exports registered a negative growth of 0.2 percent on account of 7.6 percent decline in petroleum exports. Other manufacturers accounting 14.6 percent of total exports registered a negative growth of 1.5 percent during the period July-March FY2019

Grain market review: Rice


06.10.2019
World prices for rice have changed little overall in recent months, although they remain down compared to the first few months of 2018. Demand has remained subdued, with a forecast 2019-20 crop that is down slightly from last year’s record.
The U.S. Department of Agriculture’s (USDA) Grain: World Markets and Trade for May report said that “export quotes from the Western Hemisphere flipped over the past month, with U.S. quotes decreasing to $510 per tonne and Uruguayan quotes increasing to $528 per tonne.”
“U.S. sales and exports are expected to rise in the coming months amid plentiful supplies and more competitive prices,” the USDA’s Foreign Agricultural Service (FAS) said. “Western Hemisphere quotes continue to remain well above those from Asian suppliers.”
The FAS reported Thai prices down slightly at $399 per tonne, although a strong baht meant they were higher than for other Asian exporters.
“In contrast, Vietnamese and Indian quotes rose to $371 and $375 per tonne, respectively,” the FAS said. “Pakistani quotes were the lowest at $362 per tonne, reflecting ample supplies.”
The FAS forecast world rice production down slightly at 498.493 million tonnes in 2019-20, compared with 499.889 million the year before.
“The largest projected reductions are for the two largest producing countries, China and India, with both area and yield forecast down,” the FAS said. “The United States is also projected to have smaller planted area and production.”
The biggest increases were for Thailand and Laos, with significant production growth also forecast for Bangladesh, Indonesia, Burma and Vietnam.
In its Rice Advocate for May 16, the U.S. Rice Producers Association described the trade as having “trudged forward making neither significant gains nor posting notable losses.”
“Looking at the export trends and cycles, it would appear that the purchasing of overseas buyers is becoming more cyclical or hand-to-mouth,” U.S. Rice said. “USDA seems to have sensed a soft underbelly to the market at this time as it has lowered its world market price estimate by 9 cents for both classes of rice.”
There had been no major changes in U.S. domestic prices in the preceding several weeks.
The FAO’s Rice Price Update for May put its All Rice Price Index at 222.2 points in April, almost unchanged from March.
“The most notable development in April concerned the Aromatic Index,” the FAO said. “It rose by 2.7% to an eight-month high of 217.2 points, buoyed by firming basmati quotations in the context of inflationary pressure in Pakistan and preparatory purchases ahead of Ramadan.”
In contrast, “the Japonica Index subsided by 1%, following the retreat of Japan and the Republic of Korea from the market and a turn of weather that raised planting expectations in California,” the FAO noted.
April quotations of Indica rice tended to increase across much of Asia, except in India and Myanmar, where prices dipped on poor buying interest and pressure from offseason harvests, the FAO said.
“In Thailand, concerns over water supplies for irrigation lent support to export prices, whereas gains in Pakistan came in the wake of increases to fuel costs and sales to East Africa and China,” the FAO said.
The Index showed that despite slight firmness in recent months, world rice prices from January to April 2019 were 2.2% below their level in the same period a year earlier.
The International Grains Council’s (IGC) April 25 Grain Market Report also noted subdued demand in stable markets, with the IGC’s rice price index unchanged from a month earlier.
“In Thailand, support from concerns that drought may curtail off-season production offset pressure from weak buying interest, with 5% quotes broadly steady at $388 per tonne fob Bangkok, with trade said to be quiet due to the Songkran festival,” the IGC said.
“Seasonal support from the end of winter/spring crop harvesting and demand from regional buyers, notably the Philippines, underpinned values in Vietnam, where 5% quotes gained $7/tonne to $367 fob Ho Chi Min,” the IGC said.

Pakistan Must Not Allow Cultivation Of Genetically Modified Maize By Farmers – OpEd

All the major stakeholders of agriculture sector including farmers, food processors, national seed companies and agribusiness exerts, etc. vehemently oppose cultivation of genetically modified (GM) maize in Pakistan. The unprecedented near-consensus against GM is amazing. However, the proponents of GM seeds are still trying desperately to get the government approval by openly criticizing Ministry of National Food Security and Research for the delay in granting the permission of cultivation of GM maize in Pakistan.
It is on record that the first consultative meeting on commercial cultivation of GM maize was held on February 20, 2019 with the representatives of Seed Association of Pakistan (SAP), Pakistan Kissan Ithad (PKI) and Rafhan Maize Products. The meeting was chaired by Sahibzada Muhammad Mehboob Sultan, Federal Minister, National Food Security and Research, while Dr. Muhammad Hashim Popalzai, Secretary of Ministry, moderated the deliberations.
At the meeting, SAP representative sternly opposed commercialization of GM maize in Pakistan. He said that GM was the most controversial technology in the world and most of the developed countries have not allowed its cultivation. He also said that maize was a highly cross-pollinated crop and cultivation of GM maize would contaminate the indigenous verities, as a result of an irreversible process. He warned, “After a few years, local maize varieties would be completely contaminated due to cross pollination.”
Dr. Khalid Aziz, representative from Rafhan Maize Products, informed that his company has the honour of introducing and sustainably supporting Spring Maize segment in the country. Increasing demand from Rafhan and poultry has been the major driving force behind maize success in Pakistan. He made it clear that not only Rafhan, but other companies have survived solely on the use of non-GM maize.
Afzaal Haider Rizvi, is a Doctor by profession, but actively involved in agriculture since 1995. His farm is located in District Okara and he mainly cultivates Potato, Maize, Rice, Wheat and Fodder. When he was asked to comment on pros and cons of cultivation of GM maize, he said, “United States is the biggest proponent of GM seeds in the world, but even there most of the states have banned its use. In many European countries use of GM seeds is also banned and France is strictly against GM crops. Therefore, local authorities must also apply constraint and avoid using GM seeds, especially because farm using GM seeds and indigenous verities can’t be segregated. This increases the probability of contamination and damage of crop using local varieties.”
As regards the use of GM seed in other parts of the world, he was of the view, “GM technology is the domain of high tech companies of developed world. They are also in the process of developing genetically modified verities. At the developmental stage the respective governments are hesitant in allowing use of such seeds, but encourage ‘reputed’ companies to use their goodwill in selling such seeds in developing countries. Sadly, the third world countries are at a disadvantage as they hardly have the technical knowhow, intellectual honesty, capability and willingness to conduct trials or necessary checks. Therefore, Pakistani authorities should not be carried away and focus on cultivation of indigenous verities.”
As regards using GM maize seeds, he insisted, “In Pakistan GM seeds have been introduced in different crops mainly for developing resistance against chewing insects and herbicide chemical, Glyphosate, but there are other ways to control chewing insects and weeds.” He was of the categorical view that using GM seed was unnecessary. He insisted, “Yield of maize is good by all standards in Pakistan, but it can be further increased through better crop management and balanced used of fertilizers.” He warned that since segregation of farms using GM and local varieties is not possible, local farmers should not become victim of greed.
In another meeting at Department of Agriculture, Government of Sindh, the former World Bank project Head Shahajahn Hashmani shared that now all the progressive countries in the world were working hard towards preserving their own indigenous varieties. Pakistan also needs to identify and stop the import of GM based seeds from other countries that includes genetically modified coarse rice varieties from China.
He said, “These rice varieties will not only replace our own varieties like IRRI-6 that enjoys over 110 mounds per acre yield potential, but will also make our coarse rice exports uncompetitive when we export it to the GM conscious countries and that awareness is increasing with the passage of time.”
His biggest apprehension was, “The major threat is that human beings have modified the genetic structure of food items beings consumed directly or indirectly. However, without having comprehensive research about impact of GM product on human beings and their upcoming generations, it would be suicidal to blindly grow the genetically modified verities in Pakistan.”
I would like to conclude on a quote from a column of Ms. Zubeida Mustafa. She has written, “It is horrifying to think of what the impact would be if maize, which is a thriving crop at present, is handed over to producers of GM maize. Has GM maize been thoroughly tested in our soil and climatic conditions? Without extensive research we cannot assess its impact on human health. This should be reason enough for the government to resist pressures tactics from the biotech multinationals which are out to destroy our economy. Let us learn from our own sordid experience of GM cotton. Let sanity prevail. Besides, we cannot allow our peasantry to be destroyed. It is the backbone of our agriculture.”
Country needs Rs 450 billion to meet SDG targets by 2030

SDG 6 aims to provide safe drinking water to 95 percent of the population and access to safe sanitation to 72 percent of the population

Fawad Yousafzai

June 11, 2019

ISLAMABAD   -   Pakistan needs Rs 450 billion to meet SDG targets by 2030 as the country is far behind on its SDG 6 commitment and currently the access for safe drinking water is 36 percent and for sanitation is zero percent.
Pakistan is a signatory to the Sustainable Development Goals (SDGs) and SDG 6 i.e. clean water and sanitation aims to provide safe drinking water to 95 percent of the population and access to safe sanitation to 72 percent of the population by the year 2030, said Pakistan Economic Survey 2018-19.
Currently the national base line for safe drinking water is 36 percent and for sanitation is zero percent, said the report.
Talking about the inclusion and disparities the economic survey pointed out that there is significant difference between access to piped water in urban areas with coverage of 48 percent and of rural areas with 13 percent only. Furthermore, only 10 percent of the poorest have access to piped water supply compared to 39 percent of the rich and 35 percent of the richest groups. Under sanitation, less than half of the rural population in Pakistan use improved sanitation. Only 20 percent of the poorest have access to improved sanitation compared to 82 percent of the richest. Similarly, 40 percent of the poorest have no toilets compared to only 1 percent of the richest.
Regarding Sustainable Development Targets for Pakistan, Economic Survey 2018-19 said that by using the SDG costing tools developed by SWA, Pakistan calculated annual investment needs for Water, Sanitation and Hygiene (WASH) Sector. After calculations on current coverage of safely managed water i.e. 36 percent and safely managed for sanitation i.e. zero. Based on SDG costing tool, it is estimated that Pakistan needs Rs450 billion annually to meet SDG targets by 2030. Presently, Pakistan is spending PKRs 80 billion annually through public sector while overall financial layout of the sector is PKRs 130 billion. However, it is under-reported as many of the departments, providing water and sanitation services as integral component of their interventions do not report their spendings like school education, health, housing, works and communication, irrigation, etc.
The current allocation for 2018-19 is Rs. 150 billion and Pakistan shall be able to make a growth of 2.1 percent annually. The country shall be able to cover 95 percent of safe water and 72 percent of safe sanitation (62 percent by investment and 10 percent with private sector).
Regarding smog in Punjab, the economic survey revealed that 65 percent of the sources were detected within Pakistan. Secondly, sectoral contribution of pollutants (NOx, SOx, PM 2.5, CO and NMVOCs) based on the data of last 10 years (2008-17) was determined using the Intergovernmental Panel on Climate Change (IPCC) methodologies. The outcomes demonstrate the transport sector as biggest contributor (43 percent) in total air pollutants emission in Punjab while the rice residue burning adds just 20 percent. Besides, Industry and Power sectors hold 25 percent and 12 percent, respectively. Overall, the energy sector occupies 80 percent of the total air pollutants emissions in Punjab. The emissions of NOx, being main pollutant responsible for smog formation, are highest from transport sector (58 percent). Industry and Power collectively holds 34 percent share in NOx emissions while rice residue burning is just at 9 percent.
On the Ten Billion Tree Tsunami Program the report said that Phase-I will be implemented with an overall cost of Rs. 110.0826 billion. The federal government would make an allocation of Rs. 69.067 billion on cost sharing basis for five years (2019-2024) to revive the forestry and an allocation of Rs.7.30 billion for wildlife resources of Pakistan.

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