IRRI signs marketing
deal for 3 varieties of hybrid rice seed
THE
International Rice Research Institute (IRRI) said it signed a seven-year
limited exclusive distribution license for its hybrid rice seed with Philippine
company Tao Commodity Trader, Inc. (TCTI). In a statement, IRRI said that under
the agreement signed on July 30, TCTI will invest in the development,
production and distribution of seed, commit to certain sales targets, and
partner with microfinance firm Alalay Sa Kaunlaran, Inc. (ASKI), in providing
farmers with training, technology, and financial assistance. ASKI currently has
a client base of 18,000 Filipino farmers. “Today is a significant day for IRRI
as we enter into this new partnership with TCTI, an industry-respected and
established group, that can help bring some of our innovations to our main
clients — the countless farmers and consumers who depend on the rice sector for
their food, nutrition, and livelihoods,” Dr. Peter Brothers, chief of staff of
IRRI, was quoted saying. TCTI is a subsidiary of Tao Corp., the largest trader
of molasses in the Philippines. This arm specifically focuses on the rice seed
market, and is a member of the IRRI-led Hybrid Rice Development Consortium
(HRDC). HRDC takes on the development of hybrid seed suited to various
agro-climatic conditions. Member companies are allowed limited exclusive access
to the consortium’s germplasm. The agreement covers three seed variants,
Mestiso 71, Mestiso 77, and Mestiso 89. These varieties promise higher yields,
better quality, improved resistance to pests and diseases, resilience to
climate stresses, and higher seed production. The varieties promise yield gains
of up to 20%. “As IRRI strives to achieve food and nutrition security, we
always emphasize the importance of building stron
g
partnerships with different organizations to achieve our mission,” Mr. Brothers
said. “This historic partnership between Tao Corp. and IRRI could not have come
at a more opportune time, when our rice farmers are facing very tough times due
to challenges on several fronts — from climate change to unfavorable market
conditions. Through this joint undertaking with IRRI, we can extend much needed
help to our rice farmers,” Julio D. Sy, Jr. chief executive officer of TCTI,
said in a statement. — Vincent Mariel P. Galang
Thai drought raises rice export prices higher
Drought conditions in Thailand stoked concerns of a drop in supply
even as a strong baht kept export prices for the Thai variety higher than Asian
competitors this week, while floods wreaked havoc on crops in Bangladesh. While
prices for Thailand's 5% broken rice eased to $390-$395 a tonne free-on-board
Bangkok on Thursday from last week's $401-$402, they were still more expensive
than rates in other hubs.
Demand for Thai rice
remained flat, traders said. Meanwhile, a drought in more than a dozen
provinces has stoked worries over supply, with the Meteorological Department
reporting rainfall in the main rice-growing regions was the lowest in 10 years.
"The drought situation is raising market concern over supply," a
Bangkok-based trader said, adding: "but there is not yet a shortage in
actual supply so far." The Thai government asked farmers in drought-hit
areas to delay rice planting as pumping of water from reservoirs for irrigation
threatens household supplies.
Thailand's rice exporters lowered their target for annual exports
to 9 million tonnes from 9.5 million, after a sharp fall in the first half. In
Bangladesh, floods have submerged more than 50,000 hectares of paddy fields, as
per a preliminary assessment by the agriculture ministry. "We will get a
clear picture of the extent of the damage once the water recedes," a
senior official said. This could be a major blow to the country at a time when
farmers are unable to secure fair prices for produce, with no fresh overseas
deals in sight. In top exporter India, 5% broken parboiled variety rose to
$381-$384 per tonne from last week's $374-$377 as paddy prices jumped even
though demand from buyers in Asia and Africa was muted. Exports of white rice
have almost stopped, while shipments of the parboiled variety have dropped
sharply due to higher paddy prices, said an exporter based in Kakinada in the
southern state of Andhra Pradesh.
Meanwhile, below average
monsoon rains have raised concerns over output of summer-sown crops. In
Vietnam, 5% broken rice rates were unchanged at $350 per tonne. "Demand
for Vietnamese rice remains moderate with most of the new orders coming from
Philippines and Malaysia," a trader in Ho Chi Minh City said. Traders said
shipments from Vietnam in July could fall significantly. Preliminary data
showed 194,400 tonnes will be loaded at Ho Chi Minh City ports in July, versus
311,700 tonnes in June. "While prices of the regular 5% broken rice stayed
flat, prices of jasmine rice have climbed to $500-$505 per tonne from $490 last
week due to tight supplies," another trader said.
Save rice mills, Center urged
Millers
give memo to minister on falling paddy price
Ashok Grover, a
Jalalabad-based rice miller, said they had submitted a memorandum to Union
Minister for Food Processing and Industries Harsimrat Kaur Badal expressing
concern over the dipping procurement price of paddy.
Our
Correspondent Ferozepur, July 30 Members of the Basmati Rice Milling Industry
(MSME) have urged the Union Government to take immediate remedial steps to
safeguard their interests and save the rice mill industry from the verge of
closure. Ashok Grover, a Jalalabad-based rice miller, said they had submitted a
memorandum to Union Minister for Food Processing and Industries Harsimrat Kaur
Badal expressing concern over the dipping procurement price of paddy. While
talking to The Tribune, Grover said before crop year 2007-08, basmati rice
manufacturing industry was restricted in only two districts of the state.
“However,
with the introduction of Basmati 1121 almost one-fourth of paddy farmers
switched over to that variety of basmati instead of tradition non-basmati,” he
said, adding that subsequently a parallel basmati manufacturing industry
mushroomed after upgrading their existing units. All these units installed
state-of-the-art imported equipment and machinery after taking loans from
financial units/ banks, he said. Sources revealed that there had been a
sudden fall in the price of basmati due to which millers was suffering losses.
“Rice millers who had liabilities towards banks and other lenders as well as
other unsecured creditors have not been able fulfil them due to which banks/ lenders
have initiated recovery measures against a majority of the mills which has
created panic in the industry,” said Grover.
Rice exporters want Centre to obtain duty cuts at RCEP
Indian exporters also face non-tariff barriers from countries such
as Indonesia and Malaysia
India’s non-basmati rice exporters want the government to bargain
hard in the ongoing RCEP negotiations, seeking duty cuts from ASEAN nations,
the second largest market for the cereal. Though India is the largest exporter
of rice, it does not have any say in the South East Asian region, where four of
the top five markets are located.
Out of bounds
“We would like the government to press for duty cuts on rice
exports in the RCEP talks,” said BV Krishna Rao, President of the Rice Exporters
Association. In fact, India competes with major Asian rice producers such as
Thailand, Vietnam and Myanmar in markets such as Africa, but it is finding it
difficult to get a foothold in the South East Asian market. Africa is the
biggest market for rice, estimated at around 15 million tonnes annually, where
India has a share of over 50 per cent. South East Asia is the second largest
market, with an estimated size of around 8-10 mt annually. “Lack of market
access, non-tariff barriers and higher duty imposed by Asean members on Indian
rice has forced exporters to concentrate on the African market,” Rao said. The
ASEAN countries impose a duty of 50 per cent on the Indian rice. However the
duty imposed on rice produced by member countries is 35 per cent. “There is a
duty difference of 15 per cent on the Indian rice. If negotiated well at the
RCEP, it could open new markets for us,” Rao said.
Non-tariff barriers
Besides, the Indian exporters also face non-tariff barriers from
countries such as Indonesia and Malaysia, from whom we import bulk of the
edible oils. Indonesia, for example, specifies a short delivery period of five
days for tenders, which works in favour of neighbouring producers such as
Thailand and Vietnam, but not for Indian exporters. “It is difficult to
participate in such tenders considering the logistical issues,” Rao said.
Similarly, Malaysia prefers to import from Pakistan due to religious
connections, he said. While India exports rice to over 170 countries, it is
finding it difficult to crack the markets in China, Indonesia, Malaysia and the
Philippines. India is the largest exporter of rice and accounts for a fourth of
the global shipments. In 2018-19, non-basmati rice exports fell to 7.5 million
tonnes from 8.8 million tonnes the previous year.
California company will be first US business to export rice to
China
First firm to land deal since 2018 trade agreement
SACRAMENTO, Calif. - In the midst of the escalating trade
war between the United States and China, one California rice company is
bridging the divide. In July 2019, Sun Valley Rice won a contract with a
Chinese importer, making it the first US rice producer to
sell rice to China. "China has been tough to get into because for many
years it was illegal to sell our rice there," said Betsy Ward, president
of USA Rice, a national trade association.
But, in 2018, the US and China came to an agreement,
making it legal to export American rice to China. As a result, more than two
dozen US companies were approved to export rice to China. But Sun Valley was
the first to land a deal. Sun Valley, a family-owned company based in
Sacramento, California, had been trying to break into the Chinese market for
close to 15 years. "We would travel regularly to China to research [the
market], attend trade shows and meet the industry players," said Ken
LaGrande, who founded Sun Valley Rice with his father Michael in 2000. "It
was a commitment we made as a family to persist. So when the opportunity opened
up, we were ready.
" "California's rice growing regions are the same
latitude as Korea and Japan. So we all grow the same kind of rice -- medium
grain and short grain -- that's popular in Chinese, Japanese and Korean
cuisine," said LaGrande. "But Chinese consumers, who eat rice every
day, will now have more choice with our rice," he said. "It is of the
highest quality, grown and packaged under strict labor protocols and
environmental and safety standards." Sun Valley annually sells 250 million
pounds of rice under half a dozen varieties. Beginning in the fall, the company
will export roughly 88,000 pounds of its Calrose rice to
Shenzhen Yintuo, a subsidiary of the Dragon Ocean Hing
Group, in China. The LaGrande family has been producing rice in the Sacramento
Valley, starting with LaGrande's great-grandfather in the 1920s. "He
recognized that the climate, soil and water supply in the region was the
correct balance to successfully grow rice," said LaGrande. Over the
decades, the family integrated other aspects of rice production into the business,
such as drying and milling. Eventually, it grew to become LaGrande Family Foods
Group.
"Now it's a couple of dozen different operations," he
said. Those include farming, sprouting rice and sake milling. In 2000, LaGrande
and his father Michael identified a growing market demand for high quality,
specialized sushi-grade rice, and launched Sun Valley Rice. "Sun Valley
Rice now is a fully integrated arm of the family business, 'from farm to fork'
if you will," said LaGrande. "We source rice from 200 farms, or about
10% of the rice crop gown in California. And we handle drying, milling,
packaging and marketing of the rice." LaGrande is mindful of the business
risks involved with entering new markets. "Anytime we export
to a foreign country, there are risks we think about," he said. "But
we also develop strategies to help is mitigate those risks." Sun Valley
exports its rice to the European Union, for example, where the ongoing trade negotiations with the
US has resulted in extra tariffs on rice, said LaGrande. And entering a new
market can surface additional layers of protocol and red tape. "We have to
deal with inspectors. What if our cargo gets tied up at customs as part of the
inspection process? We have to be prepared for it," he said.
The US rice industry has also experienced trade disruptions due to
measures designed to protect humans, animals and plants from diseases or
contamination. "These were not necessarily based on sound science, but
more political," said USA Rice's Ward."Although we are happy that
this sale was made, and we expect it to be successful, there is always a risk
that future sales could be disrupted. It is the name of the game in the rice trade."
Still, LaGrande is hopeful that Sun Valley Rice's entry into China opens the
gate for other American rice brands. "We have the first sale. But we
really hope there will be strong continuing demand for American rice in China,
and that allows, in turn, more opportunity for farmers back in
California," he said.