March 21, 2016 Daily Global Regional,Local Rice E_Newsletter by Riceplus Magazine

Rice exports: Let the market innovate

By Ali Salman

Published: March 21, 2016

Success of market-led research presents viable alternative. PHOTO: APP

ISLAMABAD: 

In 1933, the Kala Shah Kaku based Rice Research Institute (RRI) introduced Basmati-370, which became the father of all Basmati varieties in Indo-Pak subcontinent.That institute, together with a Larkana-based rice research institute, is largely responsible for creation and distribution of new rice varieties in Pakistan over the last century. Historically, this has significantly contributed towards Pakistan’s export earnings.However, the RRI has not produced any new Basmati variety since 1997.

According to a member of the Rice Exporters Association of Pakistan (REAP), the lack of new variety of seeds is “the reason for the low yield per acre, which has pushed rice prices higher” and has curtailed the growth of Pakistan’s exports.

Agriculture convention: Shahbaz announces Rs100b agriculture package

India, on the contrary, has introduced five new seed varieties in the last 10 years, which has significantly contributed to the increase in yield.

Pakistan’s average yield of rice hovers around two to three tonnes per hectare (according to Pakistan Economic Survey 2015). Meanwhile, most of the rice growing countries produce, on average, ten tonnes of rice per hectare.

Private research

Can the private sector in Pakistan, with possible backing from government funded agriculture research base, undertake fresh research on new seed varieties?  The prospects are bright.

According to a major private sector player, it was a private sector initiative to introduce hybrid IRRI seed after public researchers failed to improve the IRRI variety brought in the  1960s. Lately, the share of IRRI variety has risen significantly to constitute almost two-third of total rice exports from Pakistan, which is a testimony to the potential that private sector research can bring.

The decline in global commodity rates did not impact the growers of hybrid IRRI varieties, because the increase in yield has lowered the cost of production to a large extent.

This particular venture highlights the need for the government to invest in the intellectual property regime so that innovation in the private sector may be rewarded. We have sufficient level of know-how available within our universities which can be commercialised provided a framework to reward innovation exists.

Big picture

Rice exports have been a subject of debate. Let’s look at the long-term picture of rice exports – say over the last 25 years. Pakistan has experienced a fluctuating, yet growing, trend in rice exports over this time period.

Rice exporters: REAP irked by attaché’s ‘non-cooperation’

In 1990, Pakistan exported around 1.3 million tonnes fetching approximately $500 million. In 2014, exports added up to 4.6 million tons gaining a little under $2 billion, with the obvious caveat of these dollars being reported in current value. However, the growth in terms of quantity is marked and undisputed.

If growth in rice exports is considered, then the argument of lack of new seed variety may not be tenable in the first place. The rice exports have continued to increase, both in quantity and value, despite absence of new seed varieties. In fact, if history is a guide, then the growth in the decade during the absence of new seed variety appears to be far more stellar.

One plausible reason for a decline in the exports of our rice is an increasing share of India in international basmati market that at one point was way behind Pakistan. Some agriculture experts claim that low energy costs are important factor for a low cost of production, as power rates are either zero or very low in Indian Punjab where the basmati is grown.

The rice farmers lobby has asked the government “to subsidise rice exports so that the stock could be disposed of.” This is the usual prescription with predictable outcomes. Once the government provides such incentives, it will result in furthering (mis)allocation of credit and investment towards rice.

The right diagnosis

Commodities business is always seasonal and rice is no exception. In the first decade of the century, rising global commodity prices pushed Pakistan’s exports along with them.

However, with the global commodity prices going downhill, Pakistan’s rice farmers began feeling the heat. However, we cannot reverse this trend by introducing artificial support measures.

There was a time when the agriculture sector absorbed significant investment at the back of rising global demand. That time has passed.

Perhaps the government should consider liberalising the rice market, including its research component, and trust the market to develop better qualities, exports and produce on its own.

The writer is founder and Executive Director of PRIME Institute, an independent economic policy think tank based in Islamabad. 

Published in The Express Tribune, March 21^st,  2016.

http://tribune.com.pk/story/1069527/rice-exports-let-the-market-innovate/

Consignments stuck in Kenyan seaport released

March 20, 2016

RECORDER REPORT

All Pakistani rice consignments, which were stuck at the Kenyan seaport in January, have been released with the efforts of Rice Exporters Association of Pakistan (REAP). Some 1,500 containers were held up at Kenyan seaport since January 18, 2016 as licences of two Kenyan Port Yards namely Auto Ports Container Freight Station (CFS) and Portside CFS were suddenly cancelled. Later, Rafique Suleman Chairman FPCCI Rice Export Committee and immediate past chairman REAP reached Kenya to resolve the matter and ensure timely release of held up rice consignments. "With the support of Pakistan High Commission Nairobi, the issue has been finally resolved and entire Pakistani rice consignments stuck at the Kenyan seaport have been released", Rafique told Business Recorder on Saturday.

 He said that officials of Kenya Port Authority (KPA) fully cooperated with Pakistani rice exporters and not only ensured timely release of over 1,500 rice containers, but also full waived storage charges amounting to Rs 200 million, imposed on all cargo that arrived from Pakistan during January 18, to February 15, 2016. Rafique also appreciated the role of Raza Bashir Tarar High Commission of Pakistan at Nairobi and Amir Mohyuddin Commercial Counsellor for their efforts in releasing held-up rice containers. "Now we are making efforts for reduction in duty imposed by the Kenya on rice import and recently we held a meeting with Professor Julius K Bitok High Commissioner of Republic of Kenya in Islamabad", he said.

Kenyan High Commissioner has assured to raise the higher duty issue on East African platform, he added. He said that following the massive decline in the prices of all commodities in the international market, the rice exports are also likely to reduce in term of quantity in FY16, therefore it needs to explore new markets to maintain the current exports level.

http://www.brecorder.com/agriculture-a-allied/183/27434/

 

Prasad joining PH hybrid rice plan

posted March 20, 2016 at 11:15 pm by Othel V. Campos

Hyderabad-based Prasad Seeds is tapping Philippine rice seed technology and joining the proposed hybrid rice production program of the government.Prasad consultant for export marketing William Dar said the company would take part in the program, committing at least 10 percent of the hectarage sought for hybrid rice farming for a very competitive price. “I understand that the government will be targeting almost half a million to be devoted to hybrid rice production. Prasad is just starting seed production in the Philippines, but we are willing enough to provide support to the program,” he said.The company plans to produce at least 1,000 metric tons of seeds to cover as much as 50,000 hectares, or 10 percent of the half-a-million hectare rice farm that will be devoted to hybrid farming.Prasad plans to use hybrids developed by the International Rice Research Institute.Dar stressed the seeds would not be imported nor genetically modified.He added the initial production would be devoted to Philippine requirements and go for seed exports as soon as the company had an excess capacity.

“We wil revisit our business plan. We plan to export in due time once we have the confidence” Dar said.Prasad is in talks with other countries discussing plans on the seed processing side of the business.It has reached an agreement with Syngenta Philippines for seed production for local marketing.Sygenta provides Prasad the parent line necessary to produce commercial hybrid seeds for planting.Prasad has been producing seeds in India in the last 30 years, starting with hybrid corn.Seed production will start in October 2016 until January 2017 at the Prasad farm in Pangasinan province.Provincial board member Ranjit Ramos-Shahani promised to create a provincial ordinance granting Prasad Seeds a five-year exemption from real estate taxes.Earlier, Prasad Seeds sought pioneer incentives from the Board of Investments  for its corn seed-processing facility.Prasad Seeds is a global company headquartered in Hyderabad, India.

http://thestandard.com.ph/business/202178/prasad-joining-ph-hybrid-rice-plan.html

Scientists Developing Climate-Adapted GMO Rice

March 21, 2016

BONNER R. COHEN

Bonner R. Cohen is a senior fellow with the National Center for Public Policy Research, a position... (read full bio)

Genetically engineering a new strain of hyper-efficient, drought-resistant rice, known as C4, is part of a multi-national research effort the Massachusetts Institute of Technology has called one of the “10 Breakthrough Technologies of 2015.”A team of scientists from eight countries at the International Rice Research Institute in Los Banos, Philippines is genetically modifying certain strains of rice to reduce the amount of water required to grow the rice. Rice is a staple food crop in many countries around the world. Rice crop failures have led to malnutrition, disease, and death for millions of people over the past 10,000 years.

Rice plants grow through a chemical process known as C3 photosynthesis, which wastes a great deal of water and reduces plant’s food-making efficiency. It also makes C3 plants vulnerable to the extremely warm weather often experienced in many rice-growing regions of the world.Natural C4 plants have a different cell structure in their leaves, enabling a more efficient photosynthesis process. Because they lose less water through transpiration, C4 plants are more likely to produce successful yields during droughts. Rice is a water-intensive crop, so reducing the amount of water lost through transpiration is important in regions that experience frequent or periodic irregular drought.By genetically engineering rice strains using the C4 process, scientists hope to develop a durable and drought-resistant rice plant that could be used in many areas around the world.

‘Like Putting a Turbocharger in a Car’

In an article published in Newsweek on the C4 rice project, Paul Quick, one of the leading scientists at the International Rice Research Institute, said, “It’s like putting a turbocharger in a car. These plants focus carbon dioxide so that instead of having 400 parts per million, you’ve got 1,000 or 1,500 parts per million.”

“C4 plants grow in hotter, drier areas,” Julian Hibberd, a professor of molecular physiology at Cambridge University, told Newsweek. “They have a better tolerance for periods of low water supply.”

‘Vindication of Genetic Engineering’

Analysts say if scientists achieve the C4 rice breakthrough they are seeking, it will be further proof of the success and significant potential of crops that utilize genetically modified organisms (GMO).

“C4 rice would represent an important breakthrough in sustainable agriculture,” said Gregory Conko, author of numerous articles and books on GMO crops and the biotechnology and executive director of the Competitive Enterprise Institute. “Most of the new varieties being developed—whether with conventional or GMO methods—combat losses due to pests, plant diseases, and weeds, which helps farmers get the best yields from their crops.

“But an improvement like C4 photosynthesis would significantly raise the yield potential for every plant,” Conko said. “That [would, in turn,] mean getting more food from every acre and reducing the need to bring undeveloped land into farming.”

Despite the potential promise of C4 rice, Mischa Popoff, a former U.S. Department of Agriculture organic food inspector and the author of Is it Organic?, warns of the threat to GMO crop development posed by lobbyists working for the organic food industry.

Organic-farming groups have attacked GMO crops for decades, claiming GMOs will inevitably spread beyond the fields they are planted in and interbreed with nearby organic crops, thereby destroying their “organic” nature.

“It’s impossible to destroy the organic integrity of an organic crop through any kind of GMO intermingling or interbreeding,” said Popoff. “While organic farmers are not allowed to make use of GMO seed in their fields, there is no impact whatsoever if an organic crop contacts with or cross-pollinates with a GMO crop. The government still allows it to be labeled ‘organic.’

“Unfortunately, the tax-subsidized, anti-GMO global organic industrial complex dominates the domain of public relations, perpetuating the myth GMOs pose an existential threat to organic crops,” said Popoff. “If GMOs did threaten organic crops, we would already have seen a plethora of legal cases setting precedent to that effect. There have been no such cases. None.

“If anti-GMO organic activists are successful, C4 rice will wind up on the back shelf, alongside a growing stockpile of other drought-resistant GMO crops, such as wheat and barley, scientists were forced to abandon out of fear of a ginned-up public backlash,” Popoff said. 

Bonner R. Cohen, Ph.D. (bcohen@nationalcenter.org) is a senior fellow at the National Center of Public Policy Research

http://news.heartland.org/newspaper-article/2016/03/21/scientists-developing-climate-adapted-gmo-rice

Unisame lauds approval of STPF and thanks PM

The Union of Small and Medium Enterprises  (Unisame ) thanked prime minister (PM) Mian Nawaz Sharif and federal commerce minister Engineer Khurram Dastagir for the final approval of the  much awaited Strategic Trade Policy Framework (STPF) and urged the PM to order its fast  implentationPresident Unisame Zulfikar Thaver especially thanked the Ministry of Commerce for giving cognisance to the impediments in exports and making plan for facilitating exporters.

Thaver urged the PM to consider low premium export credit guarantee insurance and finance for exports to third world countries and promoting exports to non traditional markets of non traditional and traditional goods by financing exports under collateral management schemes.He said banking, insurance , global marketing technology and logistics are the key to export promotion and unless there is modernization in these spheres there cannot be high impact.The union expressed thanks for the research and development policy and the 0 rating for exports and for taking into account the issues of basmati rice exports.The union assured the PM of best efforts  of the SME sector  for value addition which is the theme of the STPF

UNISAME STRESSES NEED FOR EXPORT CREDIT GUARANTEE INSURANCE & SME EXPORT HOUSE IN STPF

The Union of Small and Medium Enterprises  (Unisame ) whilst thanking the prime minister (PM) Mian Nawaz Sharif and federal commerce minister Engineer Khurram Dastagir for the approval of the  much awaited Strategic Trade Policy Framework (STPF) urged the PM to order its fast  implementation and to include SME marketing support and export credit guarantee insurance to make effective strategy to enhance exports.

President UNISAME ZulfikarThaver pointed out that without low premium export credit guarantee insurance and  secondly finance for exports to third world countries and thirdly promoting exports to non traditional markets of non traditional and traditional goods by financing exports under collateral management schemes, the exports would not get a boost.

   He complained that the establishment of the SME Export House has been shelved although the trade Development Authority of Pakistan (TDAP) had prepared its feasibility and the steering committee was formed and it was to be set up but abandoned. Even the SME Gallery for the internet exhibition of SME wares has been delayed for no valid reason.

He also invited the kind attention of the PM to the requirement of balancing, replacement and modernization of industrial units to meet global challenges and urged the PM to facilitate these in the STPF for better results. 

He said banking, insurance , global marketing technology and logistics are the key to export promotion and unless there is modernization in these spheres there cannot be high impact.

The union expressed thanks for the research and development policy and the 0 rating for exports and for taking into account the issues of basmati rice exports.

The union assured the PM of best efforts  of the SME sector for value addition which is the theme of the STPF.

Rural poor may get rice at Tk 10 a kg

A scheme has been proposed for lean periods

Sohel Parvez

The Directorate General of Food has proposed to sell rice to the rural ultra-poor at Tk 10 each kilogram to help reduce poverty -- a move that will require the state to spend Tk 835 crore in subsidy a month.The food office wants to sell 30 kilograms of rice per month to each ultra-poor household during the lean periods of March-April and September-October, as per the proposal.Some one crore ultra-poor in rural areas will be benefitted from the scheme.The government had introduced a similar project in February 2011 to distribute rice at lower than the market price to the ultra-poor at the grassroots level. Called the “fair price card” scheme, it is currently dormant.

The directorate has now sought to revive it with a view to disposing of its huge stockpile of grain to create space in its warehouses for new arrivals, said Foiz Ahmed, its director general.“Besides, the ultra-poor at the union level do not get any food support from the government like those at the upazila level get in the form of open market sales.”About three lakh tonnes of rice will be needed each month for the scheme, according to the proposal sent to the food ministry early this month.

The proposal is now awaiting approval from the government.Ahmed is hopeful that the approval will come by the end of March and the food office will be able to implement the scheme right away.At present, the directorate has about 14.35 lakh tonnes of grains, including 10.72 lakh tonnes of rice.It plans to purchase two lakh tonnes of wheat in April and 10 lakh tonnes of boro rice in May.The government has already cut the prices of rice and wheat for open market sales, for the second time in four months, to reduce the large stocks in time for the procurement season.The price of rice was slashed 25 percent to Tk 15 per kilogram and wheat flour 10 percent to Tk 17.So far, the directorate could sell about 1,400 tonnes of rice out of the allocated 3.25 lakh tonnes for the current fiscal year.The food office expects that two lakh tonnes of rice could be distributed through OMS during the March-April period of this year.

The remaining one lakh tonnes of rice could be transferred for distribution among the poor at the grassroots level.Yesterday, the retail prices of coarse rice stood between Tk 32 and Tk 34 each kilogram in Dhaka, down 8.33 percent from a year earlier, according to the Trading Corporation of Bangladesh.Meanwhile, rice millers are fearing that the initiative will lead to a decline in rice and paddy prices and affect farmers at a time when the paddy prices, particularly the coarse variety, are on the downturn.“It is going to affect the prices of rice, especially the coarse rice,” said Md Abdur Rashid, president of the Auto Major and Husking Mills Owners Association, adding that the coarse rice prices remain lower due to its ample supply.

The average price of coarse paddy is now Tk 500 each maund, down from more than Tk 600 in December, when harvesting of aman crop was going on, Rashid added.But Ahmed of the food directorate said the farmers will not be affected by the scheme.

http://www.thedailystar.net/business/rural-poor-may-get-rice-tk-10-kg-1196623

Food safety could present key to U.S. rice's return to Switzerland

In his report, Schmidt said, "Switzerland used to be an important market for U.S. long grain rice with a market share of greater than 50 percent before the Liberty Link incident in 2006, when imports fell substantially. In 2015, U.S. rice exports shrank to 2,000 MT or only 5 percent of all rice imports. At this time, U.S. rice sales appear to be limited due to the higher price of U.S. rice compared to other origins."

http://www.stuttgartdailyleader.com/article/20160318/NEWS/160319711

LT Foods share surge over 16% intraday on rice exports business deal with HUL

LT Foods share price surged after Hindustan Unilever (HUL) signed an agreement with the company for sale of its rice exports business for a consideration of Rs 25 crore as it looks to exit non-core businesses.

By: FE Online | March 18, 2016 4:01 PM

LT Foods share price surged after Hindustan Unilever (HUL) signed an agreement with the company for sale of its rice exports business for a consideration of Rs 25 crore as it looks to exit non-core businesses. (Photo: PTI)

LT Foods share price surged over 16 per cent on Friday after Hindustan Unilever (HUL) signed an agreement with the company for sale of its rice exports business for a consideration of Rs 25 crore as it looks to exit non-core businesses.At 12.06 pm, LT Foods share price was trading 7.92 per cent up at Rs 241.10. The scrip opened at Rs 235.10 and has touched a high and low of Rs 259.80 and Rs 235.10, respectively, in trade so far. Later, the share price settled the day 6.04 per cent up at Rs 236.90

“…it (HUL) has signed an agreement for the sale of its rice exports business carried out primarily under the brands ‘Gold Seal Indus Valley’ and ‘Rozana’, to LT Foods Middle East DMCC, a group company of LT Foods Limited (owner of ‘Daawat’),” the company said in a filing to the BSE.

HUL said the deal envisages transfer of the brands and inventory for a consideration of Rs 25 crore, subject to adjustments on closing.“HUL’s decision to divest is in line with its strategy to exit non-core businesses, while continuing to drive its growth agenda in the core packaged foods business,” it added.The transaction is subject to fulfillment of certain conditions and the parties will work together to complete this over the next few months. HUL will continue to manage the business until the completion of the transaction.HUL began exporting premium Basmati rice in 1985 under the brand ‘Gold Seal Indus Valley’ to various countries in the Middle East and Europe, which was subsequently extended to other brands and geographies.

HUL sells rice export business to LT Foods

LT Foods is backed by Rabo Equity.

BY Debjyoti Roy

Consumer goods major Hindustan Unilever Ltd (HUL) has decided to sell its rice export business to LT Foods Ltd, a processor and exporter of packaged rice under the flagship brand Daawat.The Guragon-based company, in a stock market disclosure, said it has entered into an agreement with the FMCG giant to acquire its two top rice brands. “The deal includes the acquisition of brands Gold Seal Indus Valley and Rozana which have been in business for some decades,” LT Foods, owner of Daawat, said in a statement.The deal involves transfer of the HUL’s brands and inventory for Rs 25 crore ($3.7 million) to LT Foods.

The company is hopeful that the acquisition will help it foray into the markets of Qatar, Oman and Bahrain, besides strengthening its presence in traditional export bases in the region such as Saudi Arabia, UAE and Kuwait.

“The Middle East accounts for almost 80 per cent of the total basmati consumption in the world. This region is a critical market and our limited presence with only 15 per cent of our revenue coming from the geography is now getting addressed by this acquisition,” said VK Arora, MD at LT Foods.HUL began exporting premium Basmati rice in 1985 under the brand Gold Seal Indus Valley to various countries in the Middle East and Europe, which was subsequently extended to other brands and geographies. Now it is supplying both the brands to 21 countries across the globe. According to audited financials for 2014-15, the rice business has contributed Rs 51 crore to the annual turnover of the HUL.Lazard acted as financial advisor to LT Foods for the deal.Rabo Equity-backed LT Foods has been looking to induct a strategic partner to enhance its expansion plans since 2013.The company, whose key brands are Daawat, Royal, Devaaya, Heritage, Rozana and Chef’s Secretz, manufactures and exports under three broad verticals: value-added products, organic food and international trading. The export business accounts for 46 per cent of the revenue in 2014-15 for the over five-decade-old company.The firm had registered a less than 2 per cent growth in terms of revenue for the year ended March 31, 2015. It had clocked revenues of Rs 1,855 crore in financial year 2014-15.For HUL, this is the second sale of one of its business verticals. Last year, it sold its bakery business to private equity firm Everstone Capital. Though the bakery unit sported good performance both in terms of top-line and bottom-line, the sale was imminent as the business was stuck in a low growth industry due to challenges posed by other breakfast options and low entry rate in the segment.It also sold one of its real estate properties in 2015. It disposed of a property in Bangalore, which was proposed to be developed as a special economic zone (SEZ), to Brigade Properties Pvt Ltd, a joint venture between Bangalore-based developer Brigade Group and Singapore's sovereign wealth fund GIC.

http://www.vccircle.com/news/food-agri/2016/03/18/hul-sells-rice-export-business-lt-foods

Acquiring HUL's rice business will firm position in mid-east'

The company, which sell basmati rice under Daawat brand, has entered into an agreement to acquire the HUL's branded rice business, including 'Gold Seal Indus Valley' and 'Rozana' brands that registered a turnover of Rs 51 crore in 2014-15. | 1 Comments LT Foods   said the acquisition of Hindustan Uniliver Ltd's (HUL) branded rice business will help the company to strengthen position in the middle-east market.

 The company, which sell basmati rice under Daawat brand, has entered into an agreement to acquire the HUL's branded rice business, including 'Gold Seal Indus Valley' and 'Rozana' brands that registered a turnover of Rs 51 crore in 2014-15. "The acquisition will strengthen our position in the middle-east market as it gives us an entry in the markets of Qatar, Oman and Bahrain and in addition to strengthening our existing presence in Saudi Arabia, UAE and Kuwait," LT Foods said in a regulatory filing. Apart from GCC markets, the brands also enjoys latent equity across India, North America, some of the European Union and Asian countries, it added. LT Foods said the total cost of the acquisition is about Rs 25 crore and the same would be funded by debt and internal accruals.

"The middle-east has the largest basmati rice consuming population. It accounts for almost 80 percent of the total basamti consumption in the world. This region being critical market and our limited presence with only 15 percent of our total revenue coming from the geography is now getting addressed by this acquisition," LT Foods MD VK Arora said. "This acquisition will help us penetrate and establish in countries like Oman, Qatar and Bahrain where we have no presence. It will broaden our basket of offerings of brands with a high recall value," he added. LT Foods can leverage the distribution networks of these two brands while gain from synergies of the supply chain management and back-end processing. "These synergies will give us an improved margin profile. We could target to triple the current annual turnover of these brands in 24-30 months timeframe," Arora said. LT Foods offers branded basmati rice, value-added staples and organic food under brands -- 'Royal' and 'Daawat'. The company posted a revenue of Rs 2,780 crore in 2014-15 fiscal.

The company has five manufacturing units in India, two packaging facilities in US and in addition deploys five more third-party facilities to manufacture food products. LT Foods stock price On March 21, 2016, LT Foods closed at Rs 232.40, down Rs 4.5, or 1.9 percent. The 52-week high of the share was Rs 314.40 and the 52-week low was Rs 96.00. The company's trailing 12-month (TTM) EPS was at Rs 14.40 per share as per the quarter ended December 2015. The stock's price-to-earnings (P/E) ratio was 16.14. The latest book value of the company is Rs 113.34 per share. At current value, the price-to-book value of the company is 2.05

 http://www.moneycontrol.com/news/business/acquiring-huls-rice-business-will-firm-positionmid-east_5944601.html?utm_source=ref_article

Buddhist Monks Cultivate Fabled Rice That They Hope Will Help in Drought-Prone Areas

Global Press Journal by Nirasha PiyawadaniSunday 20th March, 2016

GONAGALDENIYA, SRI LANKA The serene setting of the Waharaka Ariya Chinthashramaya, a Buddhist temple, seems an unlikely setting for an agricultural revolution, but that is exactly what the priests here are trying to bring about.Here, the priests are cultivating a rice plant that produces a grain of rice locally known as Swayanjatha El Haal. According to Buddhist texts, this variety is the first recorded rice variety.G. Ajith Pushpa Kumara, deputy director of Natural Resource Management at the Ministry of Agriculture, says that this plant doesnt interest them because it is not rice but another form of sorghum.

But Yapa disagrees, pointing out that Sri Lanka has a long history of considering many other types of seeds and grains as rice.Many of the rice varieties today belong to the Oryza species and were introduced during the Green Revolution, Yapa says.But before the Green Revolution, our people named many other seeds which could be eaten as rice, he says. One example is the seeds of one type of water lily plant which are even today known as rice, he points out.The monks at the Waharaka Temple arent swayed by the debate over the grain. They believe this rice plant is the Swayanjatha rice and they are determined to prove the value of the rice and make it popular among farmers, Sukhithadheera Thero says.

And while they quietly go about their work, at least one researcher is preparing for a possible shift a monumental one in how Sri Lankans and others eat.Rumesh Liyanage, a research assistant and PhD candidate at the University of Sri Jayewardenepura who was instrumental in bringing the rice to the attention of his supervising lecturers at the university, says more research is needed to better understand this plant. He says hes optimistic about what he and others will find.

We have a great hope that this rice can replace wheat, and that is something we want to research more, he says in a phone interview. If research can show Swayanjatha rice as a replacement for wheat, that will be a revolution in the food industry.Ajith Perakum Jayasinghe translated this article from Sinhala.Thero is an honorific commonly used at the end of a Buddhist monks name. GPJ includes this honorific because it is considered part of a monks formal name.

http://www.bignewsnetwork.com/news/242394407/buddhist-monks-cultivate-fabled-rice-that-they-hope-will-help-in-drought-prone-areas

Mar 21, 2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

European Commission Proposes New Rules for Fertilizer Manufacture, Trading in EU

Mar 18, 2016

The European Commission (EC) has proposed new rules for fertilizer manufacturing and trading across the EU, according to local sources. The new rules focus on a more sustainable farming and boosting the use of organic and waste-based fertilisers. The new proposal is part of the Circular Economy Package (CEP) adopted in December 2015, which aims to create a stronger and more circular economy where resources are used in a more sustainable way. The reuse of raw materials that are now disposed as waste is one of the key principles of the CEP.

The European Structural & Investment Funds (ESIF) has agreed to provide financial support of around 5.5 billion euros (around $6.2 billion) for waste management; and an EU funding programme for research and innovation called Horizon 2020 will provide a support of around 650 million euros (around $733 million) for the project.

The new regulation sets out common rules on converting bio-waste into raw materials that can be used to manufacture fertilising products. It defines safety, quality and labelling requirements that all fertilising products need to comply with to be traded freely across the EU. Producers will have to demonstrate that their products meet those requirements, as well as declare limits for organic contaminants, microbial contaminants and physical impurities before affixing the CE-mark that will allow them to trade freely across the EU. The new rules will apply to all types of fertilisers to guarantee the highest levels of soil protection. The Regulation introduces strict limits for cadmium in phosphate fertilisers. The limits will be tightened from 60 mg/kg to 40 mg/kg after 3 years, and to 20 mg/kg after 12 years, reducing the risks for health and environment.

The existing Fertilisers Regulation from 2003 ensures free movement on the single market mainly for conventional, non-organic fertilisers, typically extracted from mines or produced chemically. These processes are both energy consuming and CO2-intensive. Innovative fertilising products produced from organic materials are outside of the scope of the current Fertilisers Regulation. Their access to the single market is therefore depending on mutual recognition between Member States, and due to diverging national rules often difficult. The existing Fertilisers Regulation also fails to address environmental concerns arising from contamination by fertilisers of soil, inland waters, sea waters, and ultimately food.

Whereas, the proposed regulation is expected to significantly ease the access of organic and waste-based fertilisers in the EU, by bringing them on a level playing field with traditional, non-organic fertilisers. This is also expected to create new market opportunities for innovative companies while at the same time reducing waste, energy consumption and environmental damage.

The market opportunities for companies producing organic fertiliser products are likely to increase with the new regulation. Presently, only 5% of bio-wastes are recycled, but according to estimates they could replace up to 30 % of non-organic fertilisers. Currently, the EU imports around 5 million tons of phosphates annually, but with the new regulation, 30% of this can be replaced by the extraction from sewage sludge, biodegradable waste, meat and bone meal or manure.

The draft Regulation will now be sent to the European Parliament and Council for adoption. Once adopted, it will be directly applicable, without the need for transposition into national law, after a transitional period allowing companies and public authorities to prepare for the new rules.

Oryza Weekly: Rice Prices Increase on High Export Demand, Low Production Prospects

Mar 19, 2016

The Oryza White Rice Index (WRI), a weighted average of global white rice export quotes, ended the week at about $389 per ton, up about $4 per ton from a week ago, up about $6 per ton from a month ago and down about $27 per ton from a year ago.

In its March 2016 Rice Outlook report, the USDA forecasts 2015-16 global rice production (milled basis) at around 471.09 million tons, a decrease of about 2% from last year due to an expected decline in acreage and average yields, which are likely to be affected by adverse weather conditions in key growing areas.  The USDA forecasts 2015-16 global rice acreage at 157.7 million hectares, down slightly from last  year.  The USDA forecasts 2016 global rice trade to be around 41.7 million tons, down about 2% from in 2015 but up about 100,000 tons from last month’s forecast.

Thailand

Thailand 5% broken rice is today quoted at about $375 per ton, up about $10 per ton from a week and a month ago and down about $15 per ton from a year ago.

Exports during the first quarter of 2016 are likely to be sluggish due to low demand from traditional markets and increasing competition from India, Vietnam, and Pakistan, according to the Honorary President of the Thai Rice Exporters Association.

The government plans to sell about 641,000 tons of stockpiled rice on March 30 and 31.

A number of research institutes in Thailand are interested in investing in the country’s rice research activities to help the government increase the competitiveness of Thai rice and rice products in the global market.

Vietnam

Vietnam 5% broken rice is today quoted at about $380 per ton, up about $10 per ton from a week ago, up about $25 per ton from a month ago and up about $10 per ton from a year ago.

Vietnam’s rice exports more than doubled since last year with 856,219 tons exported during the first two months of 2016, an increase of about 56% y/y.

A rice expert is urging the Vietnamese government to focus on formulating new production and exports in order to cope with increasing competition from Thailand and Cambodia.

Vietnam rice exporters have shipped around 150,500 tons of rice from Saigon port.

The Agriculture Ministry says the government needs about 34 trillion dong (about $1.515 billion) to cope with damages from drought and salinity, and the Minister confirmed that about 10% of 1.5 million hectares of rice planted in winter-spring crop in Mekong delta has been hurt by drought.

China has agreed to release water from its Jinghong Hydropower Station reservoir into the lower Mekong River to help Vietnam deal with drought and salinity in a number of provinces.  The Vietnam Prime Minister has asked several government agencies to send diplomatic notes to countries in the Mekong upriver asking for their cooperation with combating Vietnam’s drought.

Cambodia & Myanmar

Cambodia 5% broken rice is today quoted at about $425 per ton, up about $10 per ton from a week ago, down about $5 per ton from a month and a year ago. Members of the Cambodian Rice Federation (CRF) are considering to develop a price-support mechanism for the country's rice exports

Myanmar 5% broken rice is today quoted at about $425 per ton, unchanged from a week ago, up about $5 per ton a month and a year ago. The UN’s FAO says that Myanmar’s average domestic rice prices increased about 37% in February due to tighter domestic supplies.

India

India 5% broken rice is today quoted at about $370 per ton, unchanged from a week ago, up about $5 per ton from a month ago, and down about $25 per ton from a year ago.

As of March 1, rice stocks in the central pool stood at around 29.234 million tons, up about 23% from during the same period last year.  The increase is attributed to higher than expected paddy procurement in KMS 2015-16 (October-September).

About 320 rice mills in India's western state West Bengal have closed down their operations due to mounting losses. Lack of demand for parboiled rice, falling prices and shrinking exports, especially to Bangladesh are said to be the main reasons for their deteriorating financial conditions.

Pakistan

Pakistan 5% broken rice is today quoted at about $340 per ton, unchanged from a week ago, down about $5 per ton from a month ago and down about $10 per ton from a year ago.

The Rice Exporters Association of Pakistan has urged the country’s Central Bank to extend the payback period for the export refinance loans to 360 days from the current 180 days in order to help exporters cope with the falling global rice prices.

Pakistan basmati rice export prices have increased for the third consecutive month in February 2016, after declining continuously for three months from September 2015.

Central & South America

Five percent broken rice from Uruguay and Argentina is today quoted at about $440 per ton, unchanged from a week and a  month ago and down about $140 per ton from a year ago. Iraq has purchased 30,000 tons of rice from Argentina at $468 per ton (c&f free out), the lowest quote received.

Rice stocks in Brazil stood at around 92,260 tons in February, down about 16% from in January and down about 32% from in February 2015.

The USDA Post forecasts Mexico’s MY 2015-16 (October-September) rice imports to be around 690,000 tons, down slightly from last year.  It also forecasts Mexico’s MY 2016-17 imports to increase to 750,000 tons.

U.S.

U.S. 4% broken rice is today quoted at about $445 per ton, unchanged from a week ago, down about $20 per ton from a  month ago and down about $40 per ton from a year ago.

Chicago rough rice futures for May delivery were slightly bullish this week, ranging from $10.210 per cwt (about $225 per ton) to $10.690 per cwt (about $236 per ton) and closing the week at $10.475 per cwt (about $231 per ton).

The U.S. cash market firmed slightly this week, despite news that the IGB purchased 30,000 tons from Argentina and that last week was the worst weekly export sales this marketing year.

Other Markets

The National Food Authority of the Philippines has deferred plans to import an additional 500,000 tons of rice due to adequate supplies.  However, the Philippines rice stocks declined in February after increasing for the previous three months.  Total rice stocks as of February 1 were around 2.94 million tons, up about 25% from the same period last year. Halal certification by the Islamic Da’wah Council of the Philippines has opened more export markets for the country’s rice in the Middle East.

The government of Indonesia has launched a paddy rice purchase program to stabilize paddy prices at the farmers’ level. Rice farmers in Indonesia’s main rice growing area Bali hope to benefit from the province’s crop insurance program, launched in October, to protect farmers from crop failures caused by disasters such as drought, flooding, or pest attacks.

The government of Bangladesh procured only 194,000 tons of 2015-16 Aman (July-December) rice against the targeted 200,000 tons.

The government of Brunei is working to develop high-yielding rice varieties that can produce about 12 tons per hectare to achieve self-sufficiency in rice production.

Farmers in Malaysia's main rice growing area of Kedah and Perlis are delaying planting for the 2016 crop due to absence of rains and severe water shortages.

USDA Post forecasts Saudi Arabia's MY 2015-16 (January - December 2016) rice imports at around 1.48 million tons, up about 4% from an estimated 1.42 million tons in MY 2014-15, and up about 2% from USDA's official estimates of around 1.45 million tons due to population growth and increased number of foreign visitors to Makkah for performing Hajj and Umrah rituals.  

Rice imports by the European Union have increased sharply since the beginning of the crop year 2015-16 (September-August).  During the period September 1-March 8 the EU imported about 656,430 tons of rice, an increase of about 19% from the same period last year.During the period September 1-March 8 the EU exported about 119,116 tons of rice, down about 18% from the same period last year. The European Commission has postponed the voting on the new authorization for glyphosate for another fifteen years after some member states, including Italy, expressed concern over the use of this herbicide on human health. European paddy quotes mostly declined or remained stable during the week March 1-8. The European Commission (EC) has proposed new rules for fertilizer manufacturing and trading across the EU, according to local sources. The new rules focus on a more sustainable farming and boosting the use of organic and waste-based fertilisers. The Ente Nazionale Risi, the National Agency for Rice in Italy, expects overall Italian rice growing area to increase in 2016.  Acreage for japonica paddy varieties have increased about 3% y/y, while indica paddy acreage declined about 6% y/y.

The USDA Post forecasts Egypt’s MY 2015-16 (October-September) rice exports at around 250,000 tons, unchanged from the previous year, but down from the USDA’s official estimates of around 400,000 tons. The government of Egypt has launched a crackdown on firms it believes are hoarding rice in expectation of getting better prices.  The rice hoarding has led to severe rice shortages and surging prices.

The government of Mali forecasts MY 2016-17 (May-April) paddy rice output to be around 2.712 million tons, an increase of about 11% from in 2015-16.  The country plans to invest around 51 billion CFA francs (about $86.23 million) during the year in order to boost paddy rice production, including purchasing fertilizer and improving irrigation facilities.

The government of Nigeria has assured that it will stabilize the price of rice from April in order to make it more affordable to everyone in the country, according to the Agriculture Ministry.

Scientists Develop Nutrient-Enriched Genetically Modified Rice

Mar 18, 2016

Scientists from Colombia, the Philippines, Indonesia, the United States, Australia and Japan have developed a new genetically modified variety of rice with high contents of iron and zinc, according to Latin American Herald Tribune citing Agro-Bio, a Bogota-based association for the promotion of biotechnology.

The project is overseen by the International Rice Research Institute (IRRI). Researchers combined rice and soy-ferritin genes to produce rice content with high content of micro-nutrients. They implanted the modified genes in the most commonly grown rice in Asia.

It may take about four years for the new variety to receive regulatory approvals, according to the Agro-Bio. "The new rice is a step forward in efforts to fight the lack of micronutrients or hidden hunger," the association said.

“Foods derived from transgenic crops and scientific innovations in agriculture contribute to food security and they can improve the diet of populations who now suffer nutrient deficiencies,” said the Director of Agro-Bio.

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures End the Day Lower but the Week with the First Gain in Four Weeks

Mar 19, 2016

Chicago rough rice futures for May delivery settled 9.5 cents were cwt (about $2 per ton) lower at $10.450 per cwt (about $230 per ton). The other grains finished the day with mixed results; Soybeans closed slightly lower at $8.9750 per bushel; wheat finished about 0.1% higher at $4.6300 per bushel, and corn finished the day about 0.4% lower at $3.6700 per bushel.

U.S. stocks traded higher Friday, extending the rally that followed the Federal Reserve's accommodative policy decision earlier in the week. U.S. crude oil futures for April delivery settled down 76 cents, or 1.89%, at $39.44 a barrel. Oil briefly topped $41 a barrel in morning trade. The U.S. oil rig count showed a rise of one rig according to Baker Hughes. The Federal Reserve on Wednesday lowered its projections for the number of hikes in 2016 to two from four. The drop was larger than most expected but many market participants still expect just one hike this year. The Fed news followed the Bank of Japan's decision to keep rates unchanged earlier in the week and the European Central Bank's package of stimulus measures, including a rate cut, last week. In afternoon trade, the Dow Jones industrial average rose 87 points, or 0.49%, to 17,569. The S&P 500 gained 5 points, or 0.24%, to 2,045, with health care leading three sectors higher and telecommunications the greatest laggard. The Nasdaq composite added 10 points, or 0.22%, to 4,785. Gold is seen trading about 0.8% lower, crude oil is seen trading about 1.5% lower, and the U.S. dollar is seen trading about 0.3% higher at about  2:00pm Chicago time.

Thursday, there were 709 contracts traded, up from 557 contracts traded on Wednesday. Open interest – the number of contracts outstanding – on Thursday increased by 110 contracts to 12,494. 

Cambodia Exporters Consider Price-Support Mechanism for Rice Exports

Mar 18, 2016

Members of the Cambodian Rice Federation (CRF) are considering to develop a price-support mechanism for the country's rice exports, according to the Cambodia Daily.

In a meeting with the Ministry of Commerce on March 17, they discussed policies for strengthening the country's ailing sector and unveiled a plan to develop a price-support mechanism for rice exports. The CRF President told reporters that government officials will soon discuss a policy agenda. “An inter-ministerial meeting chaired by Deputy Prime Minister [Keat Chhon] will consider a $20 million to $30 million special budget [for the rice sector]. The meeting will help support the industry facing the illegal imports of rice from Vietnam,” he said.

The CRF Secretary-General added that the Federation had suggested a long-term strategy to support rice millers and exporters, which included plans to create a consortium of millers and exporters to manage Cambodia’s rice export price. “The biggest members from the CRF will be chosen to be ‘consortium partners’ to manage and set one export price,” he said.

The official noted that: "the proposed consortium would control the export price of rice by regulating supply, benefiting the country’s entire rice supply chain. If exporters get a good price, rice millers and farmers will benefit too as it will allow them to sell at higher prices."

However, the Secretary of State at the Commerce Ministry noted that it was too early to discuss the viability of the planned consortium. “A report of the meeting this morning is being prepared to send to the prime minister. First, we have to solve the immediate problems including preventing the inflow of rice from Vietnam and credit support to millers,” he said.

An independent economist expressed doubts with the working of the consortium and the price-support mechanism.

Separately, the Deputy Prime Minister and Minister for the Office of Council of Ministers told the newly-appointed Ambassador of the European Union (EU) that Cambodia needs more investment from the EU to maintain growth in the economy. “The EU should encourage more firms and other industries to come and buy rubber and rice from Cambodia. We can produce rice and rubber, but we need more markets for those products,” he was reported to have told the EU official.

Over 300 Rice Mills in Indian State West Bengal Shut Down on Mounting Losses

Mar 18, 2016

About 320 rice mills in India's western state West Bengal have closed down their operations due to mounting losses, according to Business Standard.

There are about 1,200 rice mills in the state. The state mainly produces parboiled rice. According to the President of the Bengal Rice Mills Association, about 200-250 rice mills in the state owe about Rs.250-300 crore (around $38-$45 million) to the banks. Lack of demand for parboiled rice, falling prices and shrinking exports, especially to Bangladesh are said to be the main reasons for their deteriorating financial conditions. Most of the rice mills are operating at only one-fourth of their capacity, according to the official.

Also higher rice distribution to families below poverty line under the public distribution system has also reduced local demand for parboiled rice, say millers. The number of beneficiaries receiving food grains at Rs.2 per kilogram (around $30 per ton) increased from nearly 32 million to over 80 million in West Bengal in the last five years, according to the government data.

West Bengal produces around 15 million tons of rice annually, and of this, the government procures about 4.5 million tons through the levy mechanism (under which the government procures paddy from farmers and gives it to registered millers for milling). Millers have expressed concern that the Rs.20 per quintal (around $3 per ton) paid by the government for milling is far below the cost of milling of around Rs.80 per quintal (around $12 per ton). They also complain they incur around Rs.2,100 per quintal (around $315 per ton) for producing one quintal of milled rice, but the market price is only Rs.1,700 per quintal (around $255 per ton). Thus, they have been incurring a loss of around Rs.400 per quintal (around $60 per ton).

West Bengal accounts for about 14% of India's total rice production

Asia Rice Quotes Unchanged Today

Mar 18, 2016

Asia rice sellers kept their quotes unchanged today.                      

5% Broken Rice

Thailand 5% rice is indicated at around $370 - $380 per ton, about $5 per ton discount to Vietnam 5% rice shown at around $375 - $385 per ton. India 5% rice is indicated at around $365 - $375 per ton, about $30 per ton premium on Pakistan 5% rice shown at around $335 - $345 per ton.

25% Broken Rice

Thailand 25% rice is indicated at around $355 - $365 per ton, on par with Vietnam 25% rice shown at around $355- $365 per ton. India 25% rice is indicated at around $335- $345 per ton, about $30 per ton premium on Pakistan 25% rice shown at around $305 - $315 per ton.

Parboiled Rice           

Thailand parboiled rice is indicated at around $375 - $385 per ton. India parboiled rice is indicated at around $350 - $360 per ton, about $55 per ton discount to Pakistan parboiled rice last shown at around $405 - $415 per ton.

100% Broken Rice

Thailand broken rice, A1 Super is indicated at around $335 - $345 per ton, about $10 per ton discount to Vietnam 100% broken rice shown at around $345 - $355 per ton. India's 100% broken rice is shown at around $265 - $275 per ton, about $20 per ton discount to Pakistan broken sortexed rice shown at around $285 - $295 per ton.

USDA Post Forecasts Saudi Arabia MY 2015-16 Rice Imports to Increase 4% y/y to 1.48 Million Tons Due to Higher Demand

Mar 18, 2016

USDA Post forecasts Saudi Arabia's MY 2015-16 (January - December 2016) rice imports at around 1.48 million tons, up about 4% from an estimated 1.42 million tons in MY 2014-15, and up about 2% from USDA's official estimates of around 1.45 million tons due to population growth and increased number of foreign visitors to Makkah for performing Hajj and Umrah rituals.  

In MY 2014-15, Saudi Arabia imported about 1.42 million tons of rice, up by about 4% from a year

earlier. Saudi Arabia mainly imports rice from India, Pakistan, Thailand and the U.S. In MY 2014-15, India remained the dominant rice supplier to the Saudi market accounting for about 80% market share. The main factors that have kept the Indian dominance in the Saudi rice market are its capabilities to supply various varieties and grades of rice that are affordable to consumers of all income levels, says the Post.

The Post forecasts imports in MY 2016-17 to further grow to around 1.53 million tons.Saudi Arabia does not produce any rice locally and depends fully on imports to meet its rice consumption demand. The Post  forecasts Saudi Arabia's MY 2015-16 rice consumption demand at around 1.45 million tons, up about 4% from an estimated 1.39 million tons in MY 2014-15, and slightly down from USDA's official estimates of around 1.46 million tons due to an increase in tourists.

The Post reports that rice prices at Saudi retail outlets vary depending on different rice varieties, brand names and quality. In February 2016, retail prices of several Indian rice varieties declined by more than 20%, compared to the same period in the year before.

News have been shared with permission of  ORYZA.COM