Saturday, June 25, 2016

25th June 2016 daily global,regional and local rice e-newsletter by riceplus magazine



Monsoon may shrug off delay; cover whole country ahead of time

Vinson Kurian
The Hindu
Thiruvananthapuram, June 22:  
The monsoon covered Madhya Maharashtra, east Madhya Pradesh and Bihar, most parts of west Madhya Pradesh, east Uttar Pradesh, Uttarakhand and Himachal Pradesh on Wednesday.
It has already covered Jammu & Kashmir and parts of west Uttar Pradesh as rains pushed in from the Bay of Bengal.
Normal schedule
The monsoon continues to be delayed in Gujarat by more than a week; on Wednesday, it has entered its border with neighbouring west Madhya Pradesh.
But the thrust from the Bay has taken it to parts of west Uttar Pradesh, Uttarakhand, and Himachal Pradesh around the normal onset date.
It is this context that its coverage during the last week of June assumes significance. The normal schedule suggests that the national coverage is complete as rain pushes past Rajasthan by July 15.
Forecasts put out by global models indicate that this could happen even ahead, which would mean that the eight day drag from a delayed onset over Kerala will have been more than made up.
Likely ‘low’
Crucial to this scenario is the assumption that a helpful weather system would form in the Bay of Bengal over the next few days to blow in even more monsoon easterlies into North-West India.
A familiar storm tracker featured by the US Climate Prediction Centre maintains that such a system would drop anchor over the ‘Head Bay’ (around Kolkata), the sweet spot for monsoon systems.
The US agency suggested that the system (which is expected to grow into a low-pressure area) would form over the next four days. From here, it is forecast to travel in a west-northwest direction along the plains in Bihar and Uttar Pradesh before heading into Rajasthan.
This makes for a copy-book style propagation of the monsoon from the Bay of Bengal into the farming heartland over East and North-West India.
The India Met Department appears to concur with this outlook. A preliminary circulation has already formed in the Bay, located on Wednesday off north Tamil Nadu and south Andhra Pradesh.
The system is expected to drive the monsoon to a fresh peak during the week beginning on Wednesday. The rains will now be concentrated over East, Central and North-West India

http://www.thehindubusinessline.com/economy/agri-business/monsoon-may-shrug-off-delay-cover-whole-country-ahead-of-time/article8760710.ece

 

 


With an eye on export to Iran, the agriculture department advises farmers to sow high-quality ‘PB-6’ variety of Basmati rice. This year, a large number of farmers are sowing this variety as it has high demand in Gulf countries including Iran, which is now importing the commodity after lifting of sanctions by the United Nations. In the current financial year, 40 traders have secured export licences in the state
http://www.indiafoodbrief.com/337849-lifting-of-sanctions-against-iran-fuels-hope-for-bijnor-basmati-farmers-times-of-india


Thai rice exports to benefit from increased demand, struggling competitors
BANGKOK, 24 June 2016 (NNT) – The Ministry of Commerce has forecast rice exports to rise during the second half of this year, reaching its annual output target of 9.5 million tons.
Commerce Minister Apiradi Tantraporn said the expected increase is due to continuous demand in both domestic and foreign markets, such as the government-to-government deal with China for one million tons of rice, which commences in August. Other notable rice importers, such as the Philippines and Indonesia, will be seeking additional G2G rice procurement.Meanwhile, India, one of Thailand’s main competitors globally, is currently suffering from drought. The country has shifted to storing rice for domestic consumption, compromising its export capabilities.

Due to these factors, the Ministry of Commerce has concluded that Thailand will be able to achieve its annual output target of 9.5 million tons.In the first half of 2016, Thailand exported 4.71 million tons of rice worth 1.55 billion dollars or 73.90 billion baht. The amount marks an 11.42% increase in rice exports and a 7.81% increase in export value, compared to the same period last year.Thailand’s major export markets consist of Africa, Asia, the Americas and Europe

http://news.thaivisa.com/thailand/thai-rice-exports-to-benefit-from-increased-demand-struggling-competitors/146591/


Monsoon to end late, benefit farmers

NEW DELHI | By Sankalp Phartiyal and Mayank Bhardwaj

Labourers plant saplings in a paddy field on the outskirts of the eastern Indian city of Bhubaneswar in this July 19, 2014 file photo.
Reuters/Stringer
Monsoon rains are likely to end in India later than usual this year, with plentiful showers towards the latter stages of the season helping farmers recover from two straight droughts, the chief of the country's weather office told Reuters on Friday.onsoon rains are the lifeblood of India's agriculture-dependent economy and a week's delay in their onset this year has caused the planting of summer-sown crops such as cotton, rice, soybean and sugar cane to drop by nearly 24 percent.
The monsoon has remained 15 percent lower than average in June, but the deficit is expected to narrow in the days to come, Laxman Singh Rathore of the Indian Meteorological Department said in an interview.The weather office forecasts monsoon rains to be above average this year after the droughts ravaged crops and worsened rural distress.Finance Minister Arun Jaitely on Friday singled out good rains as one of the factors helping India when Britain's vote to leave the European Union is roiling world markets.
Monsoon rains typically arrive at the southern coast of Kerala state by June 1 and start retreating by September from the western state of Rajasthan. But a late start is no guarantee of a delayed end."There is a strong possibility that the terminal phase will be wetter and the withdrawal will be later than normal," Rathore said.Farmers will need to adjust their sowing period to reap a good crop, Rathore added.
An extended monsoon leaves the soil moist for the sowing of winter crops such as rapeseed, wheat and lentils.(Reporting by Sankalp Phartiyal and Mayank Bhardwaj; Editing by Malini Menon and Keith Weir)
http://in.reuters.com/article/india-monsoon-rains-retreat-idINKCN0ZA28N

Rice exports to get a boost in the second half of this year



THE NATION June 24, 2016 1:00 am

THE COMMERCE Ministry expects rice exports to increase in the latter half of this year and meet this year’s target of 9.50 million tonnes, amid the constant demand for the staple.Commerce Minister Apiradi Tantraporn said yesterday that local and overseas markets continued to have demand for rice with good signals from major importers like China, the Philippines and Indonesia.Government-to-government rice deals with the Chinese government are also continuing.

Under the new contract, about 1 million tonnes of rice will be shipped to the Chinese government in August.Major buyers including the Philippines and Indonesia are expected to want more government-to-government rice deals in the rest of the year.

Drought in India

Thailand's key rival India is suffering from drought and needs to stock more rice to ensure sufficient domestic supplies to meet consumption needs in the country.Under the marketing plan, promotional activities will be prepared consistently to drive up rice exports and rice products.Delegations will be dispatched to Singapore, China, Hong Kong, Mozambique and Kenya.For the first six months of this year, rice exports rose 11.4 per cent year on year to 4.71 million tonnes worth US$1.55 million or Bt73.90 billion.

White rice topped the list, amounting to more than half of exports, followed by jasmine rice, steamed rice, sticky rice, Pathum Thani rice and brown rice.Most of Thailand's rice exports go to Africa, Asia, the Americas and Europe.

http://www.nationmultimedia.com/business/Rice-exports-to-get-a-boost-in-the-second-half-of--30288942.html










Wheat remains weak on adequate stocks

PTI | Jun 24, 2016, 03.20 PM IST
New Delhi, Jun 24 () Wheat prices fell further by Rs 10 per quintal at the wholesale grains market today due to adequate stocks position on improved supplies from producing belts against reduced offtake by flour mills.However, other grains including rice basmati continued to move in a narrow range in scattered deals and settled around previous levels.Traders said reduced offtake by flour mills against ample stocks position on increased supplies from producing regions kept pressure on wheat.
In the national capital, wheat dara (for mills) shed another 10 to Rs 1,800-1,805 per quintal. Atta chakki delivery followed suit and traded lower by a similar margin to Rs 1,805-1,810 per 90 kg.
Following are today's quotations (in Rs per quintal):
Wheat MP (desi) Rs 2,285-2,835, Wheat dara (for mills) Rs 1,800-1,805, Chakki atta (delivery) Rs 1,805-1,810, Atta Rajdhani (10 kg) Rs 275, Shakti Bhog (10 kg) Rs 275, Roller flour mill Rs 970-980 (50 kg), Maida Rs 1,020-1,030 (50 kg) and Sooji Rs 1,070-1,080 (50 kg).
Basmati rice (Lal Quila) Rs 10,700, Shri Lal Mahal Rs 11,300, Super Basmati Rice Rs 9,700, Basmati common new Rs 5,800-6,000, Rice Pusa (1121) Rs 4,700-5,650, Permal raw Rs 2,000-2,050, Permal wand Rs 2,175-2,250, Sela Rs 3,000-3,050 and Rice IR-8 Rs 1,870-1,880, Bajra Rs 1,660-1,670, Jowar yellow Rs 1,900-2,000, white Rs 3,500-3,600, Maize Rs 1,625-1,635, Barley Rs 1,680-1,685. SUN KPS PRB MR
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Rice is Guyana’s major export to Brazil under preferential trade accord


Minister of Foreign Affairs, Carl Greenidge (centre) flanked by technical officers at the Foreign Relations Sectoral Committee meeting that examined the status of the Guyana-Brazil Partial Scope Agreement.Rice has been making up the bulk of Guyana’s exports to Brazil under a preferential trade agreement mainly, the Foreign Relations Sectoral committee was told Thursday.Briefing the committee under the chairmanship of opposition People’s Progressive Party Civic’s (PPP), Gail Teixeira, the Foreign Affairs Minister of Guyana, Carl Greenidge said since the Rupununi-based Santa Fe mega-farm, owned by Sir Kyffin Simpson and family of Barbados, began exporting rice to Brazil, that grain has been Guyana’s major export to the neighbouring South American country.
“The main factor contributing to that jump…in this case the increase in Guyana’s exports to Brazil seem to be accounted for by the exports by Simpson’s Santa Fe Farm as well as Guyana Rice Development Board and Pak and Sons exports of rice to Brazil,” reenidge said.Figures presented to the sectoral committee show that Guyana sold GYD$1.8 billion worth of rice to Brazil in 2015 and GYD$264 million up to June, 2016.Trade Officer at the Ministry of Foreign Affairs, Sherwyn Naughton said that so far all of Guyana’s exports to Brazil for this year have been been rice, and of the GYD$1.881 billion worth of exports to Brazil in 2015, GYD$1.842 was for  rice. Naughton said other exports to Brazil included wheat, pasta, alcohol, bauxite, textiles and wooden furniture. “They are in very small quantities so rice has been the major export to the Brazilian market making up ninety percent or more of the exports,” he said.
Guyana is allowed to sell, among other products, 10,000 tons of rice and sugar to Brazil under the Partial Scope Agreement that allows for either duty free or 50 percent or less duty-free access for some categories of products manufactured in either country.
The Parliamentary Committee on Foreign Relations in session on Thursday under the chairmanship of the PPPC’s Gail Teixeira (backing camera in blue dress).The Foreign Affairs Minister said trade has improved between Guyana and Brazil since Bon Fim was approved as a port of entry and the Takatu Bridge was built in 2009.Figures presented to the sectoral committee show that Guyana purchased more than GYD$5.1 billion in goods from Brazil in 2011 with about GYD$2.32 billion to date in 2016. There  was a decline in 2014 and 2015 possibly due to a depreciation of the Brazilian currency.
“It is very much in favour of Brazilian,” said Greenidge. While the private sector has not requested an addition to the list of the 830 tariff lines, he acknowledged the suggestion by Teixeira to conduct periodic outreaches to chambers of commerce in the Rupununi and elsewhere to ascertain if there are other products that they would like to have added. An administrative commission that monitors implementation of the Partial Scope Agreement is supposed to meet annually but there has been no meeting since 2010.
Under the Partial Scope Agreement, Guyana is entitled to sell red peppers, bottled rum, copra fruits and vegetables, calcined bauxite, PVC pipes, corrugated cardboard, and alu-zinc sheets. Brazil is entitled to sell machinery parts, building materials, agro-based products, pastas noodles jams, jellies, rum and spirits, and pharmaceuticals. In some instances, there is a quota system to ensure that there is no market distortion and domestic producers are not displaced. In apparent response to the fact that Brazil has a larger number of product lines compared to Guyana 127 tariff lines. “Guyana has a relatively limited range of products that it can export, almost a feature of our under-development but also a feature of the limited capacity of our exporters,” he remarked.
http://demerarawaves.com/2016/06/23/rice-is-guyanas-major-export-to-brazil-under-preferential-trade-accord/

   

Students learn rice production

While visiting, the students learned about a variety of subjects studied at the two facilities including utilizing rice germplasm diversity from Dr. Anna McClung; use of wild species in breeding from Dr. Georgia Eizenga; rice breeding from Dr. Karen Moldenhauer, UA RREC; marker assisted selection by Melissa Jia and Aaron Jack...

Dawn Teer/Stuttgart Daily LeaderAaron Jackson, geneticist (left), explains a process to Olivia Leaven and Summer Buckley during their tour learning about rice production systems and research issues.
By Dawn Teer
Stuttgart Daily Leader
Posted Jun. 23, 2016 at 12:21 PM

STUTTGART —
Recently, three students, Demetris Anderson, Summer Buckley and Olivia Leaven, came to Stuttgart to spend a week at the Dale Bumpers National Rice Research Center (DBNRRC) and the University of Arkansas Rice Research Center (UARRC) as part of an outreach project funded by the National Science Foundation and awarded to Dr. Venkatesan Sundaresan at the University of California at Davis. Sundaresan partnered with the Univeristy of Arkansas at Pine Bluff (UAPB), and Dr. Bihu Huang, for an outreach event. These undergraduate students from UAPB visited the DBNRRC and the UARRC the week of June 6-10.
The purpose of their visit here was to learn about rice production systems and research issues. They were chosen by having a GPA of 3.0 or higher, their interest in plant or biological sciences and plans to go to graduate school after graduation. After a week here, they will go to UC Davis for a two-week in-lab genomics training known as the Plant Discovery Genome program.
While visiting, the students learned about a variety of subjects studied at the two facilities including utilizing rice germplasm diversity from Dr. Anna McClung; use of wild species in breeding from Dr. Georgia Eizenga; rice breeding from Dr. Karen Moldenhauer, UA RREC; marker assisted selection by Melissa Jia and Aaron Jackson; bioinformatic analysis from Dr. Jeremy Edwards; grain inspection service and assuring quality from Sandra Metheny; diseases of rice from Dr. Yulin Jia and Dr. Yeshi Wamishe; physiological stress and photosynthesis from Dr. Jai Rohila; weed management from Dr. David Gealy; irrigation management from Dr. Chris Henry; the role of extension and prominent production issues from Dr. Jarrod Hardke; mineral uptake and milling quality from Dr. Shannon Pinson; nutritional, sensory and cooking quality from Dr. Ming-Hsuan Chen; quality lab, budget sheets, tracking inputs and income from Brad Watkins; and foundation seed production from Dr. Glenn Bathke.
On the final day the students and a few members of the DBNRRC staff held a roundtable discussion to better help the students understand what they do there. Dr. Anna McClung explained a little about the purpose of the roundtable and gave them an opportunity to ask questions about how they got to where they are and what they do at DBNRRC. Jace Everett, biological science technician, spoke next because he was working on research that was time sensitive. Everett told the students he had a chemistry background, started at UAPB and then received his master’s from the University of Arkansas at Little Rock (UALR). He currently works under Dr. Ming-Hsuan Chen. He explained what his project group works on. He told them he is currently working with starch, starch fractions and different compounds found in rice bran. At this point Everett had to leave to go back to his research project.
Matt Schuckmann then spoke to them about his history and he went on to speak about projects he has worked on. He discussed different fields he has worked in doing research. He discussed AIDS research and what they learned as a result. He also discussed the seriousness of Hepatitis C, which afflcits more people than HIV. With his research he worked in cloning, mutating, expressing and purifying active enzymes that led to a job with Monsanto. He discussed working in industry and how he began working at DBNRRC. Rachel Vargas spoke next on how to seek internships and jobs with the government. Jonathon Moser spoke next regarding finding your passion, getting job experience and volunteer experience. Moser also spoke to them about making contacts.
“Never underplay things that you do because they could play a critical role in getting what you want down the line,” Moser said. He then stressed the importance of education, not just a Bachelor’s degree, but also a Master’s and Doctorate. He went on to say that sometimes it just comes down to luck — being in the right place at the right time. Dr. Anna McClung closed out the roundtable session with recommendations on how to make job searching easier. She then asked them what they thought about their tour of the Rice Research Center.
Buckley discussed how very much she enjoyed it, how helpful the scientists and technicians were and she went on to say how impressed she was about what she learned about rice. Anderson agreed with Buckley and said there were a few highlights to the week for him. The trip to see Sandra Metheny with GIPSA was one. When asked what he liked about it, he said, “Almost everything.” His field of study is regulatory science and it was right up his alley. They were able to watch the process of grading rice.
On Friday Dr. Jarrod Hardke took them out to see the rice plots. Leaven said she learned so much about the rice world. She liked the fact that the two facilities collaborated together on research. "Every aspect of rice, literally from farm to fork is right here.” she said. Anderson and Buckley agreed the whole week was amazing. Anderson went on to say he didn’t really want to go to California, he wanted to stay here. McClung then told them the facility they would be touring in California is top notch. She also shared some of what she has been working on in her research. McClung asked if they felt they needed to improve on the way they did things. The students shared they thought it worked great, they enjoyed the scientists sharing their backgrounds and being so willing to answer questions. Buckley said she enjoyed how they had life references that they shared. McClung told them, “No matter what your path is don’t get discouraged. When I look at where I started out and where I ended up, it is not a straight line.”
Buckley had this to say about her experience, “I enjoyed it so much! This was out of my realm of study but it opened so many new doors in the world of science. I learned so much about rice in such a short amount of time and I really do thank Dr. McClung for putting it together. I had a lot of favorite parts of the tour but I enjoyed the hands on labs and talking with the doctors about their specialties of study. Going to the field was fun, too, even though I had a hole in my boots! Overall it was a great experience and hopefully next summer I'll be working with Dr. Jia because his area of study sparked my interest the most.” She attends UAPB and is majoring in biology and pre-medicine
http://www.stuttgartdailyleader.com/news/20160623/students-learn-rice-production



PH achieves ‘historic best’ in farm output

By: Ronnel W. Domingo

Philippine Daily Inquirer

12:26 AM June 24th, 2016

When the Aquino administration assumed office in 2010, government officials said the agriculture sector registered low productivity after years of  over-importation of rice, farmers continued to get low returns for their labors, and farm infrastructure was in poor condition and not built to face the challenges of climate change.
Six years later, the Department of Agriculture claims to have achieved the country’s “historic best” in farm production, particularly for staple grains rice and corn.
Data from the DA show that palay output exceeded 18 million tons yearly from 2012 to 2015, even during the worst of what was considered as one of the three strongest occurrences on record of the El Niño phenomenon.
Agriculture Secretary Proceso J. Alcala declares that, although the country failed to achieve self-sufficiency in rice, the  Philippines is now producing 97 percent of the country’s requirement.  He says this is significantly better than the 81 percent self-sufficiency rate in 2010.
Agriculture officials also say farm incomes rose across commodities in the last six years. Palay farmers now earn twice as much—P31,375 per hectare from P15,830 in 2010. Corn farmers now earn about thrice, P16,712 per hectare from the previous average of P5,760.
As for infrastructure, the DA says this has improved through sustained concreting of farm-to-market roads (2,922 kilometers) and irrigation canal linings to make them “climate resilient.”
In terms of resource conservation, the Bureau of Fisheries and Aquatic Resources (BFAR) closed fishing grounds during spawning seasons to allow different species to reproduce undisturbed.
BFAR also ramped up its campaign against illegal fishing, helped tremendously by an amended fisheries code that imposed stiffer penalties for violations.
But the DA acknowledges that agriculture continues to face major challenges. Foremost among these is the relatively high cost of production, especially of palay.
The situation becomes more problematic as import curbs—a quota system—will expire in mid-2017. This is expected to result in the flooding of cheaper rice from neighboring countries.
The International Rice Research Institute has warned about this possibility and said the Philippines had to prepare farmers for competition.
“One of the reasons why the country’s rice is not as competitive as the commodity in Vietnam, Thailand and other rice-producing countries is the high cost of production,” says Bruce Tolentino, IRRI’s deputy director general for communication and partnerships.
“This can be attributed largely to high labor costs,” Tolentino adds. “Once we’re able to manage rice production and make it less expensive and comparable to, say, Vietnam, we will then be able to manage production costs.”
Farmers in Thailand and Vietnam produce palay at a cost of about P6.50 per kilo, while Filipino farmers spend an average of P11 per kilo.
While the DA says Filipino farmers can achieve competitive prices and costs, only demonstration farms seem able to do it.
Another issue that has to be addressed is the confusing food policy of the government. Cabinet officials have argued publicly in the past few years on whether it was better to pursue self-sufficiency in production or to allow a healthy flow of imports.
The early years of the Aquino administration saw the DA limit the importation of milled rice as it pushed for self-sufficiency, following the President’s initial strong stance against excessive importation done by the National Food Authority during the Arroyo administration.
But by mid-term, key members of the economic team including then Economic Planning Secretary Arsenio Balisacan dismissed the policy of attaining rice self-sufficiency,  pushing instead for a renewed inflow of imported rice to ensure enough supply and to let market forces determine prices.
This even led to the creation of the Office of the Presidential Assistant on Food Security and Agricultural Mondernization, which brought back the NFA — and the Philippines — among the world’s largest importers of rice.

SPECIAL REPORT: Nigeria’s Elephant Group in $5.5 million rice import mess


Elephant Group, one of Nigeria’s biggest commodity traders, is enmeshed in a fresh scandal following a near clandestine import last week of a vessel-load of rice using expired import papers.In what would amount to a double exploitation of the already weak Nigerian economy, the company used questionable documents to by-pass approval for $5.52 million in foreign exchange from the Central Bank to import a commodity clearly listed by the Federal Government as unqualified for forex approval.Under the current fiscal policy of the President Muhammadu Buhari government, aimed at conserving scarce foreign currencies and at relaxing pressure on the already weak Naira, rice is one of the 41 import items on the exclusion list of the Federal government and as such is excluded from forex approval.

Documents obtained by PREMIUM TIMES show that the name of the vessel that brought in the rice imported by Elephant Group is Auckland Spirit. The import which came in through Apapa Port was for 30,650 metric tonnes of rice.

The Rice Racketeering

Disturbed by the nation’s huge import bill, the President Goodluck Jonathan administration in 2014 came up with a new rice policy to fast-track national self-sufficiency in rice production.
The policy specified that owners of existing rice mills and new investors with verifiable backward integration in the rice value chain will be allowed to import rice at 10 per cent duty and 20 per cent levy (30 per cent); while merchants who have nothing to contribute to local production in the form of rice farms or mills will be charged 10 per cent duty and 60 per cent levy (70 per cent). Technically, it was a subsidy aimed at building local capacity in rice production.

In an investigation published in December 2015, PREMIUM TIMES had detailed the corruption that plagued the 2014 Rice Import Quota Allocations. This newspaper reported that 26 companies were involved in the N117 Billion rice subsidy. Not all of the 26 companies selected for the scheme made the list on merit. Elephant Group was among those not deemed qualified for the subsidy at the time. It, however, found a smart way to benefit from the programme by soliciting and obtaining a quota originally given for “donated foodstuff” to a religious organization, the Jama’tul Nasril Islam (JNI).Some industry players had at the time cried out that the bulk of the rice imported by Elephant using the quota was sold in the open market. The company denied any wrongdoing.

The 2014 rice import quota expired in December of the same year. A botched attempt to obtain new import quota was made in April 13, 2015 when a list of 22 beneficiary companies was released by the Federal Ministry of Agriculture after what was supposed to have been a laborious due process.However the joy of the new beneficiaries were short-lived when nine days later, on April 22, the same Agric Ministry reversed itself and cancelled and withdrew all allocations.
Permanent Secretary of the ministry, S. T Echono, had hinged the cancellation on a new information reaching the ministry to the effect that some Nigerian rice farmers were unable to sell their paddy to local rice millers due to a flooding of the market with imported rice, which he said was threatening the objectives of the quota policy.

PREMIUM TIMES had also reported that a few hours to the expiration of President Goodluck Jonathan’s tenure, papers for a huge rice import quota worth billions of Naira were rushed in for the president’s accent, ostensibly as parting gifts to cronies and businessmen close to the power corridor. That import quota was signed by the President on his last day in office. However, the new government of President Muhammadu Buhari failed to recognize the quota and thus Customs refused to honour it.Because the two quotas issued in 2015 were both cancelled, the Central Bank had since the advent of the Buhari administration not opened Form M for any company to import rice. But that did not stop the Elephant Group from testing the resolve of the new government.

Shipping documents obtained by PREMIUM TIMES show that in late November 2015, weeks before Christmas when rice is usually in high demand, the Elephant Group made its first attempt to discharge 33,000 MT of rice import using an expired import quota.

The company met a brick wall in the form of the new Comptroller General of Customs, Retired Colonel Hameed Ali, who turned down Elephant’s request to clear the import by paying 31.5 per cent duty instead of 71.5.Had the Customs boss compromised, the Elephant Group would have succeeded in getting a cash-strapped Federal Government to subsidize its private business by 40 percent.

Buzz in Apapa Port
Since the berth last week of the vessel Auckland Spirit, tongues have been wagging inside and outside the Apapa Port. With the throwing away of the two rice import quotas issued in 2015 by President Jonathan, the Buhari government has so far not announced any new quota.Indeed the government has placed a technical ban on rice import.Barely one month after the new government came in, the Central Bank of Nigeria (CBN) announced in June 2015 that it would no longer approve forex for rice imports. For importers, this meant an indirect ban on rice. Since import of rice from overseas has to be paid for in foreign currency, usually the US dollar, the pronouncement from the CBN was seen as a technical embargo.

Even though the CBN also mentioned that people can import rice if they have their own source of forex, the same apex bank ceased to approve Form M, which is mandatory before anyone can import any commodity into the country.Prospective importers that went further to declare they have their own forex and will not seek foreign exchange from the government or banks in Nigeria failed to get Form M approval from the CBN.After its failure to get the Customs to allow it discharge rice at 31.5 per cent duty, Elephant Group then chose to dust up an old Form M originally valid for forex. PREMIUM TIMES investigation reveals that this Form M was obtained by Elephant Group on May 22, 2015, seven days to the exit of the Jonathan government.

The validity of this Form M was for one year. It expired on May 16, 2016. Elephant claimed it got the Form M extended by six months but there was no proof of that in the accompanying documents. The process of the said extension remains hazy.A Customs source told this newspaper that it is puzzling how Elephant Group got its Form M extended.“I say it is puzzling because you have to look at the technical details. By the time the Form M expired, the CBN had discontinued with the old import regime, so how can something that was legally no longer in existence be extended and by who?” the Customs source queried.

In searching for why and how the old Form M got extended, PREMIUM TIMES discovered that some companies that also got, in the same manner as Elephant, Form M approval in the dying days of the Jonathan’s administration had theirs rejected for import. One of the companies is Viscous Global.A closer scrutiny of Elephant’s import documents reveals other anomalies that raise serious questions about due process. It was discovered that the Form M used for the import expired in May 2016.

The rice cargoes were stated in one document to have been loaded in April and May 2015, yet in another document the Manifest was filed with the Nigeria Customs Service, 13 months later, on June 10, 2016. At the time the Manifest was filed, Elephant Group was doing so using an expired Form M.In what is probably the clearest case of a fraudulent process, the Pre-Arrival Assessment Report (PAAR) number was given as20150509514/TOT and dated May 25, 2015. Although PAAR can be issued before the Manifest is filed by the importer, the same cannot be said of the Single Goods Declaration (SGD).

In the case of Elephant Group, the Manifest was filed on 10th June 2016 while the PAAR was dated a year earlier on May 25, 2015.The SGD used for the rice import by Elephant Group was dated May 25, 2016.In shipping procedures the SGD can only be filed after the Manifest is filed, esperts said. This is because the Manifest must be referenced while filing the SGD. The Manifest in this case was filed on June 10, 2016, about 16 days after the SGD.A Customs official with a deep knowledge of shipping procedure  explained that a Manifest must capture all the details of the ship, the cargoes it is carrying and the port of discharge among other things.It is after the Manifest is filed that the importer is given a rotation number by the Customs, he said. This rotation number must be quoted on the SGD and the same number is needed for duty assessment.
In the controversial import made by Elephant Group, the SGD appeared to have been filed before the Manifest to show that the transaction happened before the Form M expired or on a date not too far off.

Elephant Group reacts

Contacted by PREMIUM TIMES, Mr. Tunji Owoeye, Founder/Group Managing Director of Elephant Group insisted that the allegations against his company were “false and baseless and possibly the handiwork of those who do not mean well for the economy of our great country. We are a company that believes in this country.”Steering him back to specifics, PREMIUM TIMES asked to know how an expired Form M issued in the old regime could had been valid for $5.52 million forex, especially when CBN had ceased to issue or allow forex from whatever source for importation of certain items including rice. This newspaper also sought to know why all the documents used for clearing the rice cargo brought in by MV Auckland Spirit were filed in reverse order.

Mr. Owoeye was silent on the forex transaction but said that his Form M was valid for one year and could not be said to have expired. His answer contradicts the information on the documents supplied by his own company one of which was that the Manifest was filed on June 10, 2016 at which time the Form M obtained on May 22, 2015 had, after one year, expired on May 16, 2016.
Stating that he was not too familiar with shipping and Customs technicalities, the Elephant boss was unable to explain how his SGD came before his Manifest when the later was a requisite for the other to be decided. He only added that the documents were computer generated and that if there was any irregularities, the system would have rejected it.
“In any case, Manifest is an independent thing. Manifest is handled by government, not us,” Mr. Owoeye submitted.Speaking to PREMIUM TIMES on the transaction, a staff member of Elephant Group, Mr. Murphy Alabi added a twist to the controversy saying the rice import was paid for in Naira, not in US dollars. He said his company had an agreement with its trading partner in Thailand to accept Naira.Mr. Murphy however refused to name the trading partner.
Nna Godwin, a freight forwarder of over 23 years in experience told PREMIUM TIMES that he had never seen a clearing process that generates first the SGD before the Manifest.

“I have never seen that before. It is like working from the answer. Even when we were using the Risk Assessment Report (RAR) which is now replaced by PAAR, you still needed to have your Manifest before the assessment can be done. So what will the assessment be based upon when you don’t have your Manifest?” Godwin pondered.Reminded that before the current import brought in by MV Auckland Spirit, Elephant Group had been involved in two controversial rice imports, all aimed at beating the system, Mr. Owoeye explained that his company got involved with the religious organization JNI because the later had neither the experience nor capacity to directly utilize the quota given to it by President Jonathan.

He insisted that of the 100,000 MT approved, only 16,000 MT was imported before the expiration of the quota in 2014. He denied that the rice imported in the name of JNI was sold in the open market.Mr. Owoeye also denied any wrongdoing in November 2015 when Elephant Group, claiming quota status when none existed at the time, attempted to make the federal government to fund 40 per cent of its import.He did not explain why his company wrote a letter to a new Comptroller General of Customs asking to be allowed “on compassionate ground” to pay only 31.5 per cent duty when government had cancelled every form of rice subsidy and when Elephant Group was not involved in local rice production and had no investment in the rice value chain that needed government protection through subsidy.He owned up to aborted deal but said the transaction was disallowed by Customs not because it was fraudulent; rather because the new Customs Comptroller insisted that his mandate was to generate revenue for government and nothing else
http://www.premiumtimesng.com/business/business-news/205880-special-report-nigerias-elephant-group-5-5-million-rice-import-mess.html

25 companies sign MoU to particpate in ECOWAS rice programme



Twenty-five seed companies on Friday in Gwagwalada, FCT, signed a Memorandum of Understanding with the Seed Entrepreneurs Association of Nigeria (SEEDAN) to produce certified rice seeds for farmers in the country.The News Agency of Nigeria (NAN) reports that the MoU is under the recently launched ECOWAS Rice Seed Up-scaling Project, aimed at boosting local production of paddy rice.

It is being implemented by SEEDAN in collaboration with the West and Central African Council for Agricultural Research and Development (CORAF/WECARD) and other regional partners.
The project is targeting the production of 60,000 metric tonnes of paddy rice by December 2017 using 1,200 metric tonnes of certified seeds to be produced by the companies.The United States Agency for International Development (USAID) is funding the project with 800,000 dollars, 30 per cent of which is set aside as grant to the seed companies.

NAN reports that the MoU signing event also saw the distribution of breeder and foundation seeds to the companies by SEEDAN.Speaking at the event, the President of SEEDAN, Mr Richard Olafare, urged the companies to justify the confidence reposed in them by ensuring strict compliance with the terms of the contract.Olafare said that the country could not afford to disappoint USAID and other development partners, hence the need for them to produce and deliver the seeds on schedule.

He told NAN after the event that the project was strictly a private sector affair, designed to help seed companies from over-reliance on government for survival.“Over the years, our major market has been government, which has not been sustainable.“But what we are trying to do with this project is look at a more sustainable way to be in business, by creating the market for ourselves.“This involves coordinating the farmers at one end of production, linking them to the off-takers or rice millers, who have agreed to buy off whatever they produce under this project.
“We feel in this manner there is a better sustainable way of doing our business, because it is now strictly business.

“We are linking ourselves with farmers who actually want to see farming as business.
“So, with this arrangement, if we can get support for our farmers through the commercial banks or Bank of Agriculture, then we are in business,’’ Olafare

said.http://www.financialwatchngr.com/2016/06/25/25-companies-sign-mou-particpate-ecowas-rice-programme/



PhilRice reaps scientific awards in national confab

Posted by Web Team Posted on Jun - 24 - 2016
Three teams of PhilRice experts won awards in the 46th Crop Science Society of the Philippines (CSSP) Scientific Conference held in General Santos City, June 13-18.The study titled Potential of Algae as Aquaculture Feed Ingredient won the Best Paper award for downstream category. It was authored by researchers from the Rice Chemistry and Food Science Division (RCFSD) of PhilRice, the Bureau of Fisheries and Aquatic Resources – National Freshwater Fisheries Technology Center (BFAR-NFFTC), and the Institute of Biological Sciences – University of the Philippines Los Baños (IBS-UPLB).
“Algae is abundant in bodies of water such as in ponds and rice paddies. But it is often neglected and underutilized,” said Evelyn Bandonill, main author.The study has shown feasibility of mixing algae in aquaculture feeds and recommended further research on the “economic viability of manufacturing algal-incorporated animal feed” that can potentially increase farmers’ income.Meanwhile, the Best Poster for downstream category was awarded to the study Suitability of Adlai in Complementing Rice as Staple Food. With the aim to help achieve rice self-sufficiency through alternative staple, RCFSD researchers Henry Mamucod, Amelia Morales, Rosaly Manaois, and Marissa Romero explored the potential of adlai, an indigenous food crop, as a complementing staple food to rice.
The study showed that ginampay, a variety of adlai, can be a good source of carbohydrates substituting rice at 50:50 ratio while providing the consumer the same eating satisfaction and higher amount of protein and fats.
On the other hand, researchers from the FutureRice Program won the Best Poster in the technology extension, dissemination, and education category. The researchers explored the challenges and opportunities of building a rice agri-tourism farm in line with the recently signed Farm Tourism Development Act of 2016. The team is composed of Jan Lois Zippora Libed, Roger Barroga, Marian Rikka Anora, and Nehemiah Caballong.
The team has integrated recreational facilities, hands-on experience, and educational facilities in the 5-ha FutureRice farm. It was also the site where “AlDub Rice” was created as a form of rice paddy art. The farm was formally opened April this year and has stirred public interest on rice innovations.
PhilRice delegation joined over 200 crop science researchers, academicians, development professionals, and students from public and private institutions in the CSSP with this year’s theme, Empowering Crop Scientists for ASEAN Leadership.
http://www.philrice.gov.ph/philrice-reaps-scientific-awards-national-confab/#sthash.j0VNnRLO.dpuf







Foodgrain production expected to be 270 million ton this year: ICAR

Director General, ICAR, T Mohapatra, made the announcement while speaking to reporters on the sidelines of 23rd ICAR Regional Committee Meeting in Hyderabad.

By: PTI | Hyderabad | Published:June 25, 2016 11:16 am
The Indian Council of Agricultural Research (ICAR) on Friday said a production of 270 million tons of foodgrains was expected during the kharif and rabi seasons this year, thanks to the forecast of a normal monsoon.Director General, ICAR, T Mohapatra, made the announcement while speaking to reporters on the sidelines of 23rd ICAR Regional Committee Meeting in Hyderabad.“270 million tons production is forecast this year due to normal monsoon,” he said.He said that several rice varieties which can withstand heavy downpour have been developed by researchers, and submergence-tolerant rice varieties like `Swarna sub 1′ should be cultivated to withstand heavy rains/flash flood situations.
Similar “calamity-tolerant” varieties were being developed by Centre for Rice Research Institute, Bhubaneshwar, he said.ICAR was also getting ready to commercialise rice varieties ‘Bina Dhan 8’ and ‘Bina Dhan 10′, he said.Mohapatra said even though there was normal monsoon this year, cotton cultivation in rain-fed areas should be discouraged.
Regarding GM technologies, he said ICAR was increasing investment in research to resolve bio safety analysis issues.Pulses promotion was also being taken up in a big way and there was special focus on high yielding varieties. Rs 500 crore has been allocated for pulses’ promotion, he added
http://indianexpress.com/article/india/india-news-india/foodgrain-production-expected-to-be-270-million-ton-this-year-icar-2874817/


Nineteenth Annual U.S.-Japan Rice Technical Meeting Held 

SACRAMENTO, CA -- Representatives of the U.S. and Japanese rice industries met here Wednesday and Thursday for the 19th annual U.S.-Japan rice technical meeting.  "These annual meetings are an important part of strengthening the rice trade between our two countries by providing an opportunity to discuss and resolve technical issues," said Alex Balafoutis of PGP International, Inc. and the U.S. chairman of the Japan Technical Group. 

The two sides reviewed rice production, trade, and utilization in both countries; key upcoming supply and demand developments in both markets, and discussed quality characteristics of U.S. rice exported to Japan.

Following a day-long session on Wednesday, the Japanese delegation toured a rice farm on Thursday with U.S. delegation member and farmer Michael Rue, who provided information on rice production, drying, and storage, followed by a mill tour of Farmers' Rice Cooperative.

"USA Rice also participates in technical meetings with Korea and Taiwan, however having 19 years of technical meetings with Japan has resulted in more transparency of trade between our two countries by working together to rectify technical issues," concluded Balafoutis. 

Japan imports about 325,000 metric tons of U.S. rice each year with a value of more than $275 million dollars, making it one of the largest markets for the United States. Both sides agreed that the 20th U.S.-Japan Rice Technical meeting will be held in Japan next year.

APEDA AgriExchange Newsletter - Volume 1502

International Benchmark Price
Price on: 23-06-2016
Product
Benchmark Indicators Name
Price
Garlic
1
Chinese first grade granules, CFR NW Europe (USD/t)
3500
2
Chinese Grade A dehydrated flakes, CFR NW Europe (USD/t)
4500
3
Chinese powdered, CFR NW Europe (USD/t)
3000
Ginger
1
Chinese sliced, CIF NW Europe (USD/t)
2150
2
Chinese whole, CIF NW Europe (USD/t)
2300
3
Indian Cochin, CIF NW Europe (USD/t)
2850
Guar Gum Powder
1
Indian 100 mesh 3500 cps, FOB Kandla (USD/t)
3675
2
Indian 200 mesh 3500 cps basis, FOB Kandla (USD/t)
1075
3
Indian 200 mesh 5000 cps, FOB Kandla (USD/t)
2195
Source: oryza, agra-net
Market Watch
Commodity-wise, Market-wise Daily Price on 22-06-2016
Domestic Prices
Unit Price : Rs per Qty
Product
Market Center
Variety
Min Price
Max Price
Maize
1
Haveri (Karnataka)
Local
1520
1650
2
Vadali (Gujarat)
Other
1500
1600
3
Dhing (Assam)
Other
1100
1400
Paddy(Dhan)
1
Kasargod (Kerala)
Other
1500
1600
2
Sindevahi (Maharashtra)
Other
1800
1900
3
Sainthia (West Bengal)
Common
1250
1270
Mousambi
1
Manjeri (Kerala)
Other
3800
4000
2
Roorkee (Uttrakhand)
Other
1000
2000
3
Taura (Haryana)
Other
2500
2500
Brinjal
1
Palayam (Kerala)
Other
1100
1300
2
Deogarh (Orissa)
Other
1500
2500
3
Sirhind (Punjab)
Other
1000
2100
Floriculture
Unit Price : US$ per package
Price on 21-06-2016
Product
Market Center
Origin
Variety
Low
High
Rose Flower
Package: bunched 10s
1
Boston
Ethiopia
Assorted Colors
12.50
12.50
Orchid Flower
Package: bunched 10s
1
Boston
Thailand
Dendrobium    
18
18
Lilies Flower
Package: per bunch
1
Boston
California
Asiatic  Type
13.50
13.50
Sunflower
Package: per stem
1
Boston
Mexico
Large Head
2.00
2.00
Source:USDA

Rice Prices

as on : 24-06-2016 08:10:23 PM
Arrivals in tonnes;prices in Rs/quintal in domestic market.

Arrivals
Price

Current
%
change
Season
cumulative
Modal
Prev.
Modal
Prev.Yr
%change
Rice
Bazpur(Utr)
200.00
-9.09
44907.21
1850
2636
-2.63
Azamgarh(UP)
118.00
-7.45
5306.00
2210
2190
11.62
Indus(Bankura Sadar)(WB)
50.00
42.86
185.00
2150
2100
-
Khatra(WB)
38.00
2.7
989.00
2150
2200
-4.44
Cachar(ASM)
30.00
50
2280.00
2500
2500
-7.41
Bishnupur(Bankura)(WB)
20.00
-
20.00
2150
-
-
Kolaghat(WB)
18.00
NC
739.00
2300
2300
4.55
Tamluk (Medinipur E)(WB)
18.00
NC
758.00
2300
2300
9.52
Robertsganj(UP)
17.50
NC
437.50
1870
1865
0.54
Chengannur(Ker)
7.00
-6.67
621.50
2300
2300
-8.00
Silapathar(ASM)
5.00
-3.85
630.40
3000
3000
NC
Karanjia(Ori)
5.00
-9.09
293.80
2600
2600
4.00
Mirzapur(UP)
5.00
11.11
1358.60
1980
1975
NC
Nimapara(Ori)
4.50
NC
231.50
1900
1900
NC
Karimpur(WB)
3.00
NC
85.00
3150
3150
NC
Sardhana(UP)
1.00
NC
89.30
2340
2340
9
http://www.thehindubusinessline.com/economy/agri-business/article8768593.ece

06/24/2016 Farm Bureau Market Report

Soybeans

High
Low
Cash Bids
1151
1064
New Crop
1131
1057


Riceland Foods


Cash Bids
Stuttgart: - - -
Pendleton: - - -
New Crop
Stuttgart: - - -
Pendleton: - - -


Futures:

SOYBEANS


High
Low
Last
Change





Jul '16
1132.00
1099.25
1099.50
-25.00
Aug '16
1131.00
1097.50
1098.00
-25.50
Sep '16
1116.75
1082.00
1082.25
-26.75
Nov '16
1109.50
1072.50
1073.50
-28.00
Jan '17
1106.50
1070.25
1071.50
-27.50
Mar '17
1071.25
1042.50
1042.75
-24.50
May '17
1065.00
1035.50
1035.50
-22.75
Jul '17
1063.50
1033.50
1034.00
-22.25
Aug '17


1036.50
-4.50



Soybean Comment

Soybeans like other commodities moved lower today as they were influenced by outside forces. Yesterday's vote by Britain to leave the EU surprised the market and left financial markets in ruin. Sharp increases in the dollar and threats of collapse in global market led to bearish moves in most commodities. Soybeans are likely to move back to trade on fundamental as we approach next week's USDA acreage report. Most expect soybeans see larger acreage in this report which could see further losses.



Wheat

High
Low
Cash Bids
465
397
New Crop
459
434


Futures:

WHEAT


High
Low
Last
Change





Jul '16
454.75
441.75
450.50
-3.75
Sep '16
466.25
453.25
461.50
-4.25
Dec '16
486.25
473.25
481.25
-5.00
Mar '17
505.50
493.25
499.25
-5.50
May '17
513.00
505.00
509.50
-5.75
Jul '17
522.00
513.25
516.50
-7.00
Sep '17
529.50
524.25
525.00
-7.25
Dec '17
544.75
536.50
542.25
-4.00
Mar '18
553.00
553.00
553.00
-6.00



Wheat Comment

Wheat prices were one of the few markets to close with positive gains today. Wheat remains near contract lows and today's gains were surprising given the sharp increases in the dollar. Wheat may need additional bearish fundamentals before wheat will move below contract lows.



Grain Sorghum

High
Low
Cash Bids
352
277
New Crop
360
283






Corn

High
Low
Cash Bids
408
357
New Crop
403
373


Futures:

CORN


High
Low
Last
Change





Jul '16
390.00
373.50
382.00
-5.25
Sep '16
395.00
378.00
386.75
-5.75
Dec '16
400.50
382.50
391.75
-6.00
Mar '17
407.00
390.00
399.25
-6.00
May '17
410.50
394.25
403.50
-5.75
Jul '17
414.00
397.00
406.75
-5.25
Sep '17
398.00
387.00
390.75
-6.00
Dec '17
400.25
390.00
394.00
-4.25
Mar '18
401.75
399.50
400.00
-5.25

Corn Comment

Corn prices closed lower again today. While weather forecasts continue to improve, today's' losses were the result major losses in major financial markets following Britain's vote to leave the EU yesterday. As we head into next week's acreage report, corn prices could get a boost if the USDA forecasts lower acreage, but with the improvements in weather the market will need to continue to see robust demand to keep losses in check.



Cotton
Futures:

COTTON


High
Low
Last
Change





Jul '16
64.94
63.7
64.5
-0.38
Oct '16
65.43
64.06
64.83
-0.79
Dec '16
65.43
63.83
64.42
-1



Cotton Comment

Cotton futures were mostly lower today. December failed at resistance at Friday’s high of 66.64 cents earlier this week. Uprtending support is near 63.31 cents. Better exports this week gave the market a boost Thursday, thanks to some weakness in the dollar. Weekly export sales of 178,100 running bales boosted 15-16 commitments to 9.137 million bales.



Rice

High
Low
Long Grain Cash Bids
- - -
- - -
Long Grain New Crop
- - -
- - -


Futures:

ROUGH RICE


High
Low
Last
Change





Jul '16
1099.0
1065.0
1077.5
-3.5
Sep '16
1123.0
1087.0
1101.0
-3.0
Nov '16
1148.5
1118.5
1122.0
-10.0
Jan '17
1156.0
1156.0
1156.0
0.0
Mar '17
1180.0
1160.0
1165.0
-10.0
May '17


1194.5
-18.0
Jul '17


1208.5
-18.0

Rice Comment

Rice futures were mostly lower at mid-day. Crop conditions remain generally favorable, with 68% of the crop rated good to excellent. July is testing support at $10.75. A close below that level could signal a move toward support a dollar below that level. The market needs to see better export movement to generate buying interest. Net sales for this week totaled 50,100 tons for the 15-16 marketing year cancellations resulted in -100 tons for 2016-2017 delivery.



Cattle
Futures:

Live Cattle:

LIVE CATTLE


High
Low
Last
Change





Jun '16
116.450
114.100
114.700
-2.050
Aug '16
113.275
110.850
110.875
-2.975
Oct '16
112.775
110.750
110.875
-2.750
Dec '16
113.450
111.550
111.950
-2.450
Feb '17
113.000
111.250
111.875
-2.050
Apr '17
112.400
110.450
111.400
-1.750
Jun '17
106.125
104.850
105.950
-1.050
Aug '17
104.250
102.500
103.850
-1.125

Feeders:

FEEDER CATTLE


High
Low
Last
Change





Aug '16
141.025
137.875
139.450
-2.925
Sep '16
139.750
136.675
138.275
-2.550
Oct '16
138.250
135.025
136.800
-2.350
Nov '16
135.550
132.275
134.200
-2.175
Jan '17
130.850
128.700
129.775
-2.000
Mar '17
128.650
125.225
127.200
-1.775
Apr '17
127.600
127.125
127.575
-0.925
May '17


126.325
-0.925



Cattle Comment

Cattle prices closed sharply lower today. Weakness in global financials caused by Britain's exit from the EU led to cattle prices giving back gains over the last 2-days. Cattle prices have tried to establish lows after setting new contract lows last week. So far the market is holding those lows, but will need new support new week to prevent further losses.



Hogs
Futures:

LEAN HOGS


High
Low
Last
Change





Jul '16
84.475
83.675
84.050
-0.225
Aug '16
85.425
84.200
84.975
-0.475
Oct '16
72.100
71.000
71.950
-0.250
Dec '16
64.250
63.525
64.150
-0.750
Feb '17
66.800
66.025
66.625
-0.650
Apr '17
69.650
68.650
69.650
-0.200
May '17


75.200
-0.100
Jun '17
77.075
76.100
77.075
-0.425
Jul '17
76.925
76.875
76.925
-0.475



Friday, June 24, 2016

23rd june 2016 daily global reional local rice e-newsletter by riceplus magazine



Rising hope for economy

Higher farm, oil prices spur upbeat forecast
Description: C:\Users\WINDOW\Downloads\Rising hope for economy _ Bangkok Post_ business_files\1835417_620x413.jpg
The sun rises behind buildings in Bangkok's Sam Yan area. Thailand's economy is starting to show some positive signs thanks to higher farm and oil prices but concerns remain over drought and late rainfall. THANARAK KHUNTON
- +
The business sector is feeling upbeat about economic prospects and predicts the economy is likely to gain recovery pace in the second half of the year, based on improving automotive and motorcycle sales as well as higher farm prices.
Isara Vongkusolkit, chairman of the Thai Chamber of Commerce (TCC), said farmers' purchasing power had improved following a rise in key farm prices and oil prices in recent months.
The price of paddy with 15% moisture, for instance, rose 3.87% in May to 8,074 baht a tonne from 7,773 baht in March, with third-grade rubber sheet up 36% in May to 54.12 baht per kilogramme from 39.78 baht, and fresh palm nuts up 16.4% to 5.24 baht per kg from 4.50 baht.
The price of raw sugar increased 15.9% to 17.79 US cents per pound from 15.35 cents.
However, the price of tapioca remained low largely due to a flood of output from neighbouring countries.
Mr Isara said a recent online survey of the chamber's members in the provinces found farmers' income had improved, reflected by higher motorcycle and car sales in May, while global crude oil prices were unlikely to see any further drop and stay stable at US$50-60 per barrel.
"We strongly believe that the economy will recover in the second half," he said.
"Every increase of 1,000 baht per tonne in the rice price is estimated to help generate about 30 billion baht, while every 10-baht increase in the rubber price will raise about 40 billion baht more for the country's economic system.
"We estimate about 100 billion baht will be generated once higher prices of other farm products are included. This will be another key factor to boost the economic recovery in the second half."
The government's investment in infrastructure products and accelerated budget disbursement were other key drivers, Mr Isara said.
The TCC forecasts the economy will grow by 3.3% in the second half from about 3.2% in the first half, boosting economic growth to 3.2-3.5% for the whole year.
Nonetheless, Mr Isara said the business sector remained concerned about delayed credit line extensions by financial institutions, China's fragile economy and the impact of drought and late rainfall that might affect productivity in the farm sector.
The sector is also worried about the impact of the termination of the Generalised System of Preferences in European countries, plus the issue of illegal, unreported and unregulated fishing.
Mr Isara believes exports will also improve in the second half in line with higher oil and farm prices.
Exports are predicted to increase 2.6% in the second half, leading shipments for the whole year to bounce back to growth of 0.8% after falling continuously over the last three years.
Wallop Vitanakorn, vice-chairman of the Federation of Thai Industries, said exports were projected to contract by 2% in the first half after shrinking 1.24% in the first four months of the year to $69.4 billion.
"I think the situation remains very cloudy, as all major importers such as the United States, European Union, Japan and China remain in economic trouble," he said.












Monsoon advances to Kashmir, likely to cover entire country much before July 15 schedule

By Jayashree Bhosale, ET Bureau | Jun 22, 2016, 04.37 AM IST
Description: Monsoon advances to Kashmir, likely to cover entire country much before July 15 scheduleMonsoon advances to Kashmir, likely to cover entire country much before July 15 schedule
PUNE: Monsoon has galloped to Kashmir, covering a vast stretch of the country in just three days, and is poised to extend to the rest of India well before the normal mid-July date.

However, rainfall so far has been relatively weak. Weather scientists said the effect of El Nino, which disrupted last year's monsoon, has lingered for a few weeks even though the adverse phenomenon is now reversing, setting the stage for much heavier rainfall in the weeks ahead.

"Monsoon is likely to cover the entire country much before its normal date of July 15. Currently, it is lacking in rainfall in parts like interior Maharashtra, Telangana, etc.," said Sunitha Devi, director (weather forecast) at the India Meteorological Department in Pune. Rainfall is deficient in the Gangetic West Bengal as well.

On Tuesday, monsoon covered all of Maharashtra, most parts of west and east Madhya Pradesh, east Uttar Pradesh, Uttarakhand, Himachal Pradesh and the entire Jammu and Kashmir. While Uttarakhand and Himachal were getting widespread to fairly widespread rainfall, there was not much rain in Jammu and Kashmir. Delhi has been getting good pre-monsoon showers, which are likely to decrease.

"It is a 'weak advance' of the monsoon. Rainfall is sporadic," said an IMD scientist, who did not want to be named.

Though sowing operations have started with one or two rains, including the nursery sowing of paddy, the key kharif foodgrain crop, July rains will play the crucial role in the prospect of the crops. Paddy transplanting, which will happen in July, needs standing water in the fields.

El Nino, which had adversely impacted previous two consecutive monsoon seasons of India, has become neutral. However, meteorologists said it has become neutral only in terms of the sea surface temperatures. The atmospheric features will still take some time to fall back to their normal flows.

"Currently, there is no organised flow pattern as the lower and upper level flow features are not coupled," said Sunitha Devi. As the IMD had forecast, June rainfall is expected to be below normal. In a normal monsoon year, at least one low pressure system or a depression is formed, which gives good rainfall. However, this year, not a single low pressure or depression has formed and the next circulation in the making is also a feeble one.

"As the effects of the strong El Nino reduce, we expect the normal pattern of monsoon, in which rains happen every seven to 10 days, to establish," said B Mukhopadhyay, head of the weather office in Pune.