6th September,2019 Daily Global Regional Local Rice E-Newsletter

https://timesofindia.indiatimes.com/business/india-business/india-needs-new-markets-for-rice-exports-says-industry/articleshow/70993699.cms

USA Rice Outlook Conference Registration Open  

By Michael Klein

ARLINGTON, VA -- Registration for the USA Rice Outlook Conference, the largest rice-specific event in North America, opened this week.  USA Rice is adding a great deal to the conference this year to ensure the event's tagline, "If Rice is Your Business, This is Your Meeting," holds true.

"In addition to general sessions with powerful speakers, we will feature more than 15 hours of educational programming over the three days," said Betsy Ward, USA Rice president and CEO.  "From farm shop design to setting up an eCommerce presence and from estate planning to the latest technology, this conference is truly a not-to-be-missed event."

For the first time, USA Rice is offering member discounts for conference registration.  All U.S. rice farmers are eligible to register at the member rate, as are employees of companies that are members of one of the following:  USA Rice Enterprise Partners, USA Rice Millers' Association, USA Rice Merchants' Association, and/or The Rice Foundation.  

USA Rice is also capitalizing on this year's location - Little Rock, Arkansas - by offering a special "First Time Attendee" rate of just $99.

"While the Outlook Conference is appropriate for everyone in the rice industry, no matter where you live, the reality is, we're within driving distance of thousands of people in the rice industry who maybe haven't attended an Outlook before or aren't familiar with what USA Rice does for the industry.  This special rate should entice them to check us out.  They won't be sorry," Ward added.

The keynote speaker is Dr. Shimi Kang, a Harvard-trained physician, researcher, and neuroscientist who will talk about how stress and anxiety are a public health crisis and what individuals can do about it.

Natural Resources Conservation Service Chief Matthew Lohr has been invited to discuss a wide range of topics during a fireside chat on the first day of the conference.

The Annual Rice Awards, sponsored by Horizon Ag, Rice Farming Magazine, and USA Rice, will be presented in three categories - Farmer of the Year, The Rice Industry Award, and Lifetime Achievement Award - at the Awards Luncheon.

Another highlight of the luncheon is the introduction of the new Rice Leadership Class that will be inducted at that time.

The bedrock of the conference, and where it got its name, is in the presentation of state outlook and research reports from research institutions in all six rice-producing states.

The Exhibit Hall is expanded this year.  For the first time, USA Rice has moved the educational programming into the hall itself at specially built stages that will increase exposure for exhibitors, while providing attendees with the opportunity to easily move from one session to another.

Attendee, exhibitor, and sponsor registration are all open online and with the renewed push to bring in new attendees, the hotel block and Exhibit Hall are expected to fill up quickly.  

This year's Outlook Conference will take place from December 8-10 at the Statehouse Convention Center in Little Rock, Arkansas.  The conference hotel is the Little Rock Marriott.  Early bird registration discounts expire on November 6.

Visit www.usarice.com/outlook to register, read about additional programming, and sponsorship and exhibitor opportunities.

Scientists seeing reductions in methane emissions in row rice

Row rice may help farmers reduce the amount of nitrous oxides.

Forrest Laws | Sep 05, 2019

Planting rice in a furrow-irrigated system or row rice, as it’s also known, could result in lower methane gas emissions compared to those from fields planted in conventionally irrigated rice, research is showing.

Row rice may also help farmers reduce the amount of nitrous oxides or N₂O coming from their fields, but the research is less settled on that topic, according to scientists with the USDA-ARS Delta Water Management Research Unit.

“From May, June and July, we found the emission of methane in the row rice field was 60 percent lower than in the MIRI (multiple-inlet rice irrigation) or continuously flooded fields, which means the process of row rice cropping really works with methane gas emissions,” said Dr. Arlene Adviento-Borbe, research scientist with the Delta Water Management Research Unit.

Adviento-Borbe, who is located with the unit at Arkansas State University, was one of the speakers at the Mississippi County Rice Irrigation Field Day near Blytheville, Ark. The event was sponsored by several organizations, including USDA’s Natural Resource Conservation Service.

“We did see some nitrous oxide emissions coming from row rice fields,” she noted. “But, to us, if you look at the total emissions of nitrous oxide coming from the field it would not be as high as the methane gas emissions.

“We are also looking at the other sources of nitrogen in row rice fields, the exchangeable nitrogen in the soil, and how this will be affecting our N₂O emissions potential at the end of the season. We also continue to measure ammonia emissions in the field. As of now we did not see a huge amount of ammonia coming from the field.”

For more information about Adviento-Borbe’s research, visit https://www.youtube.com/watch?v=rG902Z95GKc&feature=youtu.be.

https://www.farmprogress.com/rice/scientists-seeing-reductions-methane-emissions-row-rice

Eight-month rice exports down

VNA FRIDAY, SEPTEMBER 6, 2019 - 14:43:00 PRINT

Illustrative image (Source: VNA)

Hanoi (VNA) – Vietnam exported about 4.54 million tonnes of rice for nearly 2 billion USD in the first eight months of this year, up 0.3 percent in volume but down 14.9 percent in value from a year earlier, according to the Agro Processing and Market Development Authority (Agrotrade).

In August alone, the country shipped abroad 591,000 tonnes of rice for 265 million USD, the agency said.

Strong growth were seen in Ivory Coast (64.5 percent), Australia (63.9 percent), Hong Kong (China) (43.5 percent), and Saudi Arabia (31.3 percent) during the January – August period.

The average export price in the eight months reached 433 USD per tonne, down 14.7 percent year on year.

The Philippines outstripped China to become Vietnam’s largest buyer during the reviewed period, accounting for 34.5 percent of the total rice exports or 1.46 million tonnes. Its rice imports from Vietnam increased 3.2 times in volume and 2.7 times in value from the same period last year.

Vietnam’s rice exports to China plunged 66 percent year-on-year to 350,000 tonnes, pushing the neighbouring country to the second position.

Local traders said China's demand for rice is still high, but Chinese importers have cut back on purchases from Vietnam because of new technical barriers imposed by the Chinese government. In addition to increases in import duty, China has strengthened quality control of goods and inspection of food safety.

At present, Vietnam has 21 enterprises which have received permission to export rice to China. From 2019, China also required licensed enterprises to register total capacity of their factories and they will not be allowed to export more than that. Their licences would be revoked if the volume of rice exported is higher than the registered capacity.

Agrotrade Director Nguyen Quoc Toan warned that Vietnam will face difficulties in exporting rice in the short term due to obstacles in major markets like China and the Philippines.

After approving policies to promote rice imports about six months ago, the Philippines has a high inventory of rice at present. The country's farmers asked the Government to support them in rice consumption because they face difficulties in sales. Therefore, Vietnam’s rice exports to this market are expected to fall in the near future.

Meanwhile, the country’s rice exports to the EU are expected to grow strongly in the future due to the positive impact from the EU-Vietnam Free Trade Agreement (EVFTA) when it comes into effect.

Under this agreement, Vietnam will have an export quota at 80,000 tonnes of rice per year with a tax rate of zero to the EU in the future, four times higher than the current exports of 20,000 tonnes per year with a tax between 65-211 EUR (71.9-233.3 USD) per tonne, or estimated at 50 percent of export value. –VNA 

https://en.vietnamplus.vn/eightmonth-rice-exports-down/160029.vnp

Eight-month rice exports down

VNA FRIDAY, SEPTEMBER 6, 2019 - 14:43:00 PRINT

Illustrative image (Source: VNA)

Hanoi (VNA) – Vietnam exported about 4.54 million tonnes of rice for nearly 2 billion USD in the first eight months of this year, up 0.3 percent in volume but down 14.9 percent in value from a year earlier, according to the Agro Processing and Market Development Authority (Agrotrade).

In August alone, the country shipped abroad 591,000 tonnes of rice for 265 million USD, the agency said.

Strong growth were seen in Ivory Coast (64.5 percent), Australia (63.9 percent), Hong Kong (China) (43.5 percent), and Saudi Arabia (31.3 percent) during the January – August period.

The average export price in the eight months reached 433 USD per tonne, down 14.7 percent year on year.

The Philippines outstripped China to become Vietnam’s largest buyer during the reviewed period, accounting for 34.5 percent of the total rice exports or 1.46 million tonnes. Its rice imports from Vietnam increased 3.2 times in volume and 2.7 times in value from the same period last year.

Vietnam’s rice exports to China plunged 66 percent year-on-year to 350,000 tonnes, pushing the neighbouring country to the second position.

Local traders said China's demand for rice is still high, but Chinese importers have cut back on purchases from Vietnam because of new technical barriers imposed by the Chinese government. In addition to increases in import duty, China has strengthened quality control of goods and inspection of food safety.

At present, Vietnam has 21 enterprises which have received permission to export rice to China. From 2019, China also required licensed enterprises to register total capacity of their factories and they will not be allowed to export more than that. Their licences would be revoked if the volume of rice exported is higher than the registered capacity.

Agrotrade Director Nguyen Quoc Toan warned that Vietnam will face difficulties in exporting rice in the short term due to obstacles in major markets like China and the Philippines.

After approving policies to promote rice imports about six months ago, the Philippines has a high inventory of rice at present. The country's farmers asked the Government to support them in rice consumption because they face difficulties in sales. Therefore, Vietnam’s rice exports to this market are expected to fall in the near future.

Meanwhile, the country’s rice exports to the EU are expected to grow strongly in the future due to the positive impact from the EU-Vietnam Free Trade Agreement (EVFTA) when it comes into effect.

Under this agreement, Vietnam will have an export quota at 80,000 tonnes of rice per year with a tax rate of zero to the EU in the future, four times higher than the current exports of 20,000 tonnes per year with a tax between 65-211 EUR (71.9-233.3 USD) per tonne, or estimated at 50 percent of export value. –VNA

NEDA wants faster release of farmer assistance as palay prices continue to drop

Published September 5, 2019 5:54pm

By JON VIKTOR D. CABUENAS, GMA News

The financial assistance to local farmers should be fast-tracked given the continuous decline in price prices, the National Economic and Development Authority (NEDA) said Thursday.

“There is a need to fast-track the rollout of the programs and projects under the Rice Competitive Enhancement Fund (RCEF) to support the farmers against dropping palay farmgate prices,” said NEDA officer-in-charge Rosemarie Edillon.

The Philippine Statistics Authority (PSA) earlier on Thursday reported inflation settled at 1.7% in August, the third consecutive month of deceleration.

August also marked the fourth consecutive month of declines in rice inflation at -5.2% versus -2.9% in July.

According to National Statistician Claire Dennis Mapa, the PSA’s survey showed that prices per kilogram of palay or unmilled rice have dropped to as low as P8.

“We are seeing in some areas … the low amount is already between P8 to P10, but in some areas there are still high prices,” he said in a separate statement.

The government implemented earlier this year the Rice Tariffication law, which removed quantitative restrictions on rice and imposed a 35% tariff on imports from Southeast Asia.

The law also earmarked P10 billion for the RCEF, of which P5 billion will be allotted to farm mechanization and P3 billion to seedlings. The fund intends to ensure that rice imports won’t drown out the agriculture sector and rob farmers of their livelihood.

“The Rice Liberalization Act continues to help increase rice supply in the country,” Edillon noted.

“This allows more Filipinos to access cheaper rice. This is especially helpful since a large number of families spends almost 30% of their total food expenditure on rice.” —VDS, GMA News

https://www.gmanetwork.com/news/money/economy/707066/neda-wants-faster-release-of-farmer-assistance-as-palay-prices-continue-to-drop/story/

What you can do to help Filipino rice farmers

Groups urge Filipinos to buy local rice and support Filipino farmers as they feel the severe effects of the rice tariffication law

Bianca Velasco

Published 11:06 AM, September 06, 2019

Updated 11:55 AM, September 06, 2019

HELP THE FARMERS. Filipino farmers face a negative impact since the passing of the Philippine Rice Tariffication Law.

MANILA, Philippines – Local rice farmers are suffering and are on the losing end since the implementation of Republic Act (RA) No. 11203 or the Philippine Rice Tariffication law.

Among those struggling is Gorgonio "Miguel" Ferrer, a rice farmer from Pangasinan. Due to the rice tariffication law, he has been struggling to make ends meet. He is seriously considering giving up farming as he only earns a profit of P183.96 per day.

Gorgonio's daughter Jette Banatao shares in a Facebook post their difficult experience and disappointment on the enactment of the rice tariffication law.

"Kaya bang bumuhay ng isang pamilya ang ganito? Mapapag-aral ang kanyang mga anak? Sinong anak ang gugustuhing magpatuloy na magsaka kapag ganito ang paiiralin ng mga namumuno?" asked Banatao.

(Can families survive on this? How can they send their children school? What child would want to continue farming if their situation is like this?)

With the rice tariffication law, farmers earn less as farmgate prices of palay can drop as low as P7 per kilo from P12 per kilo.

The objective of the rice tariffication law was to ensure food security, make the country’s agricultural sector viable and globally competitive by using tariffs, and stabilize food prices and inflation.

However, Jaime Tadeo from Paragos-Pilipinas described the law as the “engine killer of the economy” since local markets of municipalities and other industries are dependent on the rice industry to earn money. Through the rice tariffication law, rice importation is allowed and uninhibited. The influx of cheap imported rice is threatening local produce.

The government's economic team estimated that the rice tariffication law would make the prices dip to as low as P27 per kilo, this is not the case.

Farmer Trinidad Domingo from Pambansang Koalisyon ng Kababaihan sa Kanayunan (PKKK) pointed out that the passing of the law was a sad moment for Filipino farmers because they were losing money despite their hard work. According to Domingo, it takes 50 kilos of rice to earn 400 pesos within a 4-month harvesting season.

Support farmers

Various organizations and netizens have slammed the rice tariffication law, pointing out how Filipino farmers were severely affected by its implementation.

Bantay Bigas said that the law had a negative impact on Filipino farmers, highlighting the need to address the issue as soon as possible.

“We have been warning against this prior to the enactment of the law, and now we are now facing the destruction of the rice farmers, the primary productive force of our national rice industry,” they said in a statement.

Other farming advocacy groups have taken to social media to show their disapproval of the rice tariffication law using the hashtags #JunkRiceLiberalization and #DefendPHAgri.

Join the Twitter Rally, Sept. 2, 8pm. Support farmers in demanding #JunkRiceLiberalization #DefendPHAgri pic.twitter.com/eAlP23RNgr

— StopKillingFarmers (@kmp_phl) September 2, 2019

How to help

As an ordinary citizen, what can we do to help Filipino rice farmers?

Here are 6 ways to contribute the cause:

1. Urge local government units to buy from local farmers

Especially with the wide reach of local government units, former National Food Authority (NFA) chief Renan Dalisay suggested that one way people can help Filipino farmers is to lobby to their local government units to buy local rice.

This will help ensure a stable income for Filipino farmers, and receive a constant demand for their products with reasonable prices. Dalisay noted that people can lobby to their local government units to buy from Filipino farmers for P20 per kilo and sell these in their local markets for P40 per kilo.

2. Buy locally produced rice instead of imported rice

To help support rice farmers, people can also opt to buy rice locally instead of getting imported brands.

Dalisay added that more sales of rice will create more demand. It will also motivate farmers to produce more goods.

Ibon Foundation highlighted that the dependency on imported rice can cause harm to Philippine society. Local rice should always be the priority.

"What if the global market players jack up prices or restrict supply? Where do we source our rice if the local rice industry is already dead? We should directly support our rice farmers and strengthen the local rice industry instead of relying on imports for our staple," they said.

3. Set up a market for local farmers

Filipino farmers go through a rigorous process when selling their local goods. By setting up a market for these farmers to directly sell their goods to consumers, this will cut the bureaucracy involved, thus becoming easier for farmers to earn income.

Session Groceries also suggested to make events around the country in order to create a market for local farmers to sell their goods. This could be online or on ground. Session Groceries, for example, bridges consumers to Filipino farmers in order to sell their local goods.

https://www.rappler.com/move-ph/239348-what-people-can-do-help-rice-farmers-philippines

Department of Agriculture 7: Palay prices remain stable

September 5, 2019

THE Department of Agriculture (DA) 7 has assured consumers that the buying price of palay in Central Visayas is still stable amid the rice imports from neighboring countries under the Rice Tariffication Law.

DA 7 Director Salvador Diputado said they monitor the buying price of palay weekly as ordered by DA Secretary William Dar. Farmers directly affected by the influx of imported rice will be offered a cash loan of P15,000 that is payable in eight years without interest.

“But here in our region, we don’t have affected farmers because the buying price of our palay did not decrease. It is stable,” he told SunStar Cebu.

In other regions, buying price of palay went as low as P7, prompting the government to offer loans to affected farmers. This financial assistance from the DA was given to farmers in Region 1 (Ilocos Region), 2 (Cagayan Valley) and 3 (Central Luzon), said the DA official.

In Central Visayas, only Bohol and Negros Oriental have significant yields on rice and corn. Prices of ready-to-mill dry rice in Bohol range from P18 to P23 per kilo while in Negros Oriental fresh palay buying prices range from P15 to P20 a kilo and prices for dry and ready-to-mill rice hover between P19 and P22 a kilo.

“Our rates in Negros and Bohol are still high compared to the other regions,” he said.

On Feb. 14, 2019, President Rodrigo Duterte signed the Rice Tariffication Law, which removed the quantitative restriction on rice imports and levied a 35 percent tariff on rice imports from members of the Association of Southeast Asian Nations (Asean) and 40 percent from non-Asean countries if imports are below 350,000 metric tons (MT) and 180 percent if imports are above 350,000 MT.

To support the local farming industry, Diputado urged local government units to buy rice requirements from local farmers.

“Instead of buying commercial rice from other countries for their activities where they might distribute rice to people, we urged them to buy from their local farmers to support them,” he said.

The low supply of rice last year was the main cause inflation shot up in 2018. (JOB)

https://www.sunstar.com.ph/article/1821819

Rice prices in Luzon down to P8/kg–PSA

By Cai Ordinario

 -

September 6, 2019

NFA Grains Operations Officer II Coralyn Punongbayan of Nueva Ecija checks the quality of palay bought from farmers.

The average farm-gate price of unhusked rice plummeted to a range of P8 per kilogram to P10 kg, particularly in Luzon, the Philippine Statistics Authority (PSA) said on Thursday.

National Statistician and Civil Registrar Dennis S. Mapa told reporters in a news briefing that the PSA’s price monitoring showed that the farm-gate prices of wet palay declined in the third and fourth week of August.

In other provinces, such as those in the Visayas, Mapa said the average farm-gate prices of wet palay reached P14 per kg to P18 per kg during the reference period. The price of unhusked rice is usually higher during the lean months of July to September, when harvest declines significantly.

“Luzon in particular, we are seeing [in] Region 3, we are getting low
numbers. I’ll just give you the rate, from P8 per kg to P14 per kg. This is for wet palay,” Mapa said. “So [prices] depend on the region, but the lower-end were actually [observed] in Luzon.”

Central Luzon, or Region 3, is the country’s rice granary and includes Nueva Ecija, the Philippines’s top rice-producing province.

As of press time, the price monitoring report, which the PSA said will be available on Thursday, has not been released by the agency. The PSA made the pronouncement after farmers’ groups complained that they are losing money as prices fell below the production cost pegged at P12 per kg.

Rep. Estrellita B. Suansing of the First District of Nueva Ecija disclosed during a recent hearing on the implementation of the rice trade liberalization law held at the House of Representatives that the farm-gate price of rice in her province has dropped to as low as P7 per kg.

Republic Act 11203, or the rice trade liberalization law, mandated the set up of the Rice Competitiveness Enhancement Fund (RCEF) to bankroll initiatives that will improve the productivity of farmers.

Finance Assistant Secretary Antonio Joselito G. Lambino II said during the BusinessMirror’s Coffee Club forum on Thursday that the government has already collected P9.2 billion from tariffs paid by rice traders.

“It is very likely that [collections] will breach P10 billion which will go to programs that will help improve the productivity of farmers,” said Lambino.

RA 11203 made it easier for traders to purchase rice from abroad as they only need to secure sanitary and phytosanitary import clearance and pay the corresponding tariffs for the imports.

As for the claim of the Federation of Free Farmers Inc. that rice imports were undervalued, the Department of Finance official said the group used international prices and not the reference prices that the Bureau of Customs had determined in consultation with the Department of Agriculture. Lambino said the government’s reference prices were based on historical data.

“Also, [the group] based their estimate on the volume of imports starting in January but [RA 11203] went into effect in March. Shipments in January and February should not have been included in the computation,” Lambino said in a mix of English and Filipino

https://businessmirror.com.ph/2019/09/06/rice-prices-in-luzon-down-to-p8-kg-psa/

Consumer group hits rice tariffication law, fears market failure

By: Gabriel Pabico Lalu - Reporter / @GabrielLaluINQ

INQUIRER.net / 07:13 AM September 06, 2019

MANILA, Philippines – A consumer group has claimed that the Rice Liberalization Law has brought more problems than solutions that may eventually lead to a market failure.

According to Samahan at Ugnayan ng mga Konsyumer para sa Ikauunlad ng Bayan (SUKI), the law did not significantly reduce rice prices and worse, the country is flooded with substandard grains.

“Six months after the Rice Liberalization Law was signed, we note that rice prices have barely lowered, while affordable rice is of poor quality. Official reports say the price of rice has gone down by Php2 due to rice importation. This is most welcome,” SUKI said in a statement.

“But in many retail outlets, we have observed that prices still linger at Php42-PhP50/kilo which is still expensive for many low-income consumers. Some of our members experienced buying rice at Php32-Php35 per kilo but discovered that either these are of very low quality or go stale easily,” it added.

Aside from this, the group claims that the law has made the situation worse for local rice farmers, who have been disadvantaged by the low prices of imported rice — even if their products are of a higher quality.

“We also dread the fact that what should be our source of cheap, better-quality rice, which is our local produce, is threatened due to government’s rice import liberalization policy,” SUKI lamented.

“According to the Philippine Statistics Authority (PSA), farm gate palay prices have fallen by as much as 20% from P22 per kilo in mid-August 2018 to P17 per kilo by mid-August this year as traders opt to buy imported rice.  Farmers from Isabela, Tarlac, Nueva Ecija, Laguna, Sorsogon and Bukidnon claimed that farm gate palay prices have fallen to as low as Php7 per kilo.” The group added.

All of these, SUKI explained, can result to a market failure.

President Rodrigo Duterte last February signed into the bill into law, which opens the country to unimpeded importation of rice, to stabilize increasing rice prices in 2018 and the early part of the year.

It was also seen as an answer to the impending rice shortage after some of the National Food Authority (NFA) rice were found to be infested with weevils or bukbok.

Critics of the administration, however, have warned that the law, authored by Senator Cynthia Villar, will only reduce the farm gate prices of palay.

And just this Tuesday, PSA reported that rice output slid because of the steady fall in prices as traders prefer the much cheaper imported rice.

 “High retail prices despite bodegas brimming with imported rice, and local farmers hit by plunging farmgate prices, are all tell-tale signs of a market failure caused in great part by the Rice Liberalization Law,” SUKI said.

“Left unchecked and uncorrected, this market failure might very well lead to another rice shortage. Once the deluge of cheap imports kill the local rice industry, we will be at the mercy of traders sourcing rice from a very narrow global market,” they added.

The bigger problem though, according to SUKI, is total inadequacy of rice supply.

“With the NFA practically abolished, what is there to stop these traders from abusing their market power? Worse, what if the global market players jack up prices or restrict supply? Where do we source our rice if the local rice industry is already dead?” the group asked.

“The rice liberalization law is posing a serious threat on Filipinos’ right to food. Our greatest fear is that one day, there will no longer be enough rice to lay on the table,” SUKI claimed. /gsg

https://newsinfo.inquirer.net/1161534/consumer-group-hits-rice-tariffication-law-fears-market-failure

Việt Nam faces difficulties in rice exports

Update: September, 06/2019 - 09:19

Việt Nam will face difficulties in exporting rice in the short term. — VNA/VNS Vũ Sinh

HÀ NỘI — Việt Nam will face difficulties in exporting rice in the short term due to obstacles in most major markets, such as China and the Philippines, according to the Ministry of Agriculture and Rural Development (MARD).
Local traders said China's demand for rice was still high, but Chinese importers have cut back on purchases from Việt Nam because of new technical barriers imposed by the Chinese government. Accordingly, besides increases in import duty to China, the country has strengthened quality control of goods and inspection of food safety. Therefore, Việt Nam's rice exports to this country have plummeted.
At present, Việt Nam has 21 enterprises which have received permission to export rice to China. From 2019, China also required licensed enterprises to register total capacity of their factories and they will not be allowed to export more than that. Their licences would be revoked if the volume of rice exported are higher than the registered capacity, according to the ministry.
It said after approving policies to promote rice imports about six months ago, the Philippines has a high inventory of rice at present. The country's farmers asked the Government to support them in rice consumption because they face difficulties in sales. Therefore, Việt Nam’s rice exports to this market are expected to fall in the near future.
Meanwhile, Việt Nam’s rice exports to the EU are expected to grow strongly in the future due to the positive impact from the EU-Việt Nam Free Trade Agreement (EVFTA) when it comes into effect.
Under this agreement, Việt Nam will have an export quota at 80,000 tonnes of rice per year with a tax rate of zero to the EU in the future, four times higher than the current exports of 20,000 tonnes per year with a tax between 65-211 euros (US$71.9-233.3) per tonne, or estimated at 50 per cent of export value.
However, only some types of fragrant rice will enjoy a zero tax rate, including Jasmine 85, ST5, ST20, Nàng Hoa 9, VD 20, RVT, OM4900, OM5451 and Tài Nguyên Chợ Đào, said Nguyễn Quốc Toàn, director of MARD’s Agricultural Product Processing and Market Development Department.
To take advantage of the deal, Toàn recommends that local rice export enterprises need to improve their product quality, implement rules of traceability and promote branding.
The Ministry of Industry and Trade needs to step up trade promotion activities, especially for China to maintain stable exports to this market, Toàn said. In addition, associations must actively support businesses in building production chains and brands for Vietnamese rice.
Phạm Thái Bình, director of Trung An High-tech Agriculture JSC, said the requirements of quarantine and traceability in the Chinese market is normal. Similar requirements have also been placed by other countries around the world.
Việt Nam needs long-term solutions for rice exports, of which farmers and businesses need to cooperate closely in producing rice according to the quality standards in export markets, Bình said.
The nation has mechanisms and policies to encourage cooperation in agricultural production but the problem is that the businesses need capital for developing the rice supply chain with farmers. At present, Vietnamese businesses do not have the financial ability to purchase all rice from farmers during the harvest period.
According to Deputy Minister of Industry and Trade Trần Quốc Khánh, local businesses must ensure quality of exported goods to maintain their prestige and brand.
In the long term, the Ministry of Industry and Trade will propose MARD review the rice growing area and supply sources to balance market demands and improve export value of rice and profits for farmers.
The two ministries will also build an investment strategy for processing and improving management ability for quality of rice and other farming products to ensure a stable output, Khánh said.
According to MARD, Việt Nam exported 4.54 million tonnes of rice in the first eight months of this year, earning $2 billion. The exports were up by 0.3 per cent in volume but down by 14.9 per cent in value year on year.
In the first seven months of the year, the Philippines ranked first in Việt Nam's rice export markets with 34.5 per cent of total exports, reaching 1.46 million tonnes, worth $589.4 million, an increase of 3.2 times in volume and 2.7 times in value year on year. Markets with strong growth in rice export value included Ivory Coast (up 64.5 per cent) and Australia (up 63.9 per cent).
The rice exports to China in the first seven months decreased by 66 per cent to 318,100 tonnes year on year. The average export price to this market in the seven months reached $433 per tonne, down 14.7 per cent over the same period in 2018. — VNS

http://vietnamnews.vn/economy/535021/viet-nam-faces-difficulties-in-rice-exports.html#2bsPKAsStS1vcxGG.99

Rice liberalization law makes PH a net importer

September 5, 2019

THE Anakpawis party-list said the implementation of Republic Act 11203 or the Rice Liberalization Law added more misery to the 2.3 million rice farmers in the country.

The partylist said palay prices have drastically declined from a range of P17 to P19 per kilo last year to P14 per kilo.

In some provinces, rice farmers complained that palay prices plunged to a range of P7 to P10 per kilo.

As the government and the main proponent of RA 11203 continue to deny the law's effect, rice farmers’ livelihood is on the brink of bankruptcy, the Anakpawis claimed in a statement.

The government is now extending loans to farmers affected by rice liberalization but Anakpawis describes the move as anti-consumer and anti-Filipino. The group added that the law depends highly on imports to supply rice in the market instead of investing to develop the local rice industry.

“The complaint of Filipino rice farmers is undeniable; the low palay price is fast becoming a national disaster for 2.3M local rice farmers. The continuing depressed farm gate prices of palay should be blamed to the enactment of the Rice Liberalization Law. In order to pacify the looming social volcano, the government scrambles the use of the Survival and Recovery Assistance Program for Rice Farmers (SURE Aid) or the zero-interest P15, 000 loan payable for eight years which is basically not enough. They need subsidy and not loan which is burden to them,” said Ariel “Ka Ayik” Casilao, former Anakpawis Party-list representative.

The government announced that around three million metric tons of imported rice will enter the country for the whole 2019. This is about 35 percent of the estimated 8.4 million metric tons locally produced in 2018.

With no solution in sight except for DA’s measly loan, RA 11203 is reducing an agricultural-based country like the Philippines as rice import republic, the partylist claimed.

“In less than a year, imported rice has snatched a significant share of the market that should have been the source of livelihood and subsistence of Filipino rice farmers. This has surpassed the issue of agriculture and economy, but tantamount to betrayal of Filipinos, in the name of subservience to imperialist-dictated liberalization,” Casilao said

Farmers and poor consumers under Bantay Bigas, Amihan and the Kilusang Magbubukid ng Pilipinas (KMP) have protested consistently the law since its deliberation in the 17th congress. Farmers’ fears now come into life as palay prices plummeted significantly, it is way cheaper than a kilo of hog feed, Anakpawis stated.

In Pampanga, a kilo of hog feed (Darak) is P12, while a kilo of palay is only P6 according to KMP-affiliate farmer’s group Alyansa ng Magbubukid sa Gitnang Luzon.

The former lawmaker backed Filipino farmers calling to scrap RA 11203 and enact a nationalist and democratic rice program.

Anakpawis filed in the 17th congress the Rice Industry Development Act bill or HB 477. It was refiled in the 18th congress led by Gabriela Women’s Party Representative Arlene Brosas and other lawmakers under the Makabayan bloc.

HB 477 is pushing for the P25-billion Rice Production Socialized Credit Program to emancipate poor rice farmers from usurious and arbitrary loans and to allow them to focus in increasing productivity.

It proposed P185 billion for the three-year rice development program, including development of infrastructure and post-harvest facilities, support to farm inputs and research and development. It also proposing another P310 billion allotted for the NFA’s local procurement program.

Casilao appealed to the rice farmers who are now speaking in the open against the RLL, to support RIDA as it is a democratic rice program. The proposed bill sincerely upholds the welfare of poor rice farmers, national food security, self-sufficiency and self-reliance, Casilao said. He also calls on the Filipino rice farmers and organizations across the country to hold the government responsible, especially the proponents of the law at the Lower House and Senate. (Reynaldo G. Navales)

https://www.sunstar.com.ph/article/1821804/Pampanga/Local-News/Rice-liberalization-law-makes-PH-a-net-importer

DA moves to control surge in imported rice

By: Karl R. Ocampo - @inquirerdotnet

Philippine Daily Inquirer / 05:26 AM September 06, 2019

Agriculture Secretary William Dar may not be able to stop the influx of imported rice in the market to subdue the further decline in palay prices, but he is looking to use food safety measures to at least “delay” their arrival as the main harvest season nears.

In a text message to the  Inquirer on Wednesday evening following a meeting in Malacañang, Dar said he was looking to strengthen requirements for food safety to “delay the arrival of much more (imported rice) during harvest.”

The country’s rice farmers are currently suffering from palay rates that have sunk below their average production cost because of tight competition from more affordable imported rice. Government interventions, at times delayed, have yet to push buying prices.

The nearing harvest season in October is when the country produces 60 percent of its palay output.

Dar said his plan could be done by imposing stricter requirements when giving out sanitary and phytosanitary permits (SPS) to private importers. He said this could also be a way to ensure that “we can import good stocks.”

Following the passage of the rice tariffication law that has in effect deregulated rice trade, private firms are allowed to import rice stocks without limit so long as they secure SPS permits from the Bureau of Plant Industry (BPI).

How the newly installed agriculture chief would be imposing stricter measures is still being discussed, but the Federation of Free Farmers (FFF) is open to the idea.

In a separate interview with FFF national manager Raul Montemayor, he said the agency could mandate the performance of additional tests on rice shipments.

This could temper the entry of imported rice in the market, in effect addressing the supply glut.

BPI assistant director Glen Panganiban said the agency could issue SPS permits in one week on average, provided that private firms could secure all the necessary requirements.

As of July, BPI has about 480 active rice importers, 77 of which have only been registered this year. Since the new rice trade law was passed, Panganiban’s team processed 15 permits on a weekly basis.

In terms of SPS permits, the bureau has given out 1,158 permits during the first three months of the law’s implementation. An SPS permit expires in 60 days.

https://business.inquirer.net/278335/da-moves-to-control-surge-in-imported-rice#ixzz5yjiARATG

Cambodia exports nearly 133,000 tonnes of rice to China

VNA THURSDAY, SEPTEMBER 5, 2019 - 15:54:00 

A man stacks sacks of rice at a warehouse in Phnom Penh (Source: https://www.phnompenhpost.com)

Hanoi (VNA) - Cambodia exported almost 133,000 tonnes of rice to China in the first eight months of 2019, a year-on-year rise of 54 percent, official data showed.

China remained the biggest buyer of Cambodian rice in the January-August period, accounting for 39 percent of the country's total rice export, according to the Cambodian Secretariat of One Window Service for Rice Export Formality.

Meanwhile, Cambodia shipped more than 120,000 tonnes of rice to the European market, down 47 percent. The European Union (EU)'s market share for Cambodian rice had declined to 35 percent from 52 percent.

Cambodia’s rice exports to the European market have decreased after the EU earlier this year imposed duties for three years on rice imports from Cambodia in a bid to curb a surge in rice imports from the country and to protect European producers.

Cambodia exported over 342,000 tonnes of rice to 51 countries and territories in the first eight months of 2019, up only 0.1 percent over the same period last year.-VNA

https://en.vietnamplus.vn/cambodia-exports-nearly-133000-tonnes-of-rice-to-china/159977.vnp

Methane-Producing Microorganism Makes a Meal of Iron

By Staff Reporter

Sep 05, 2019 07:15 AM EDT

A new understanding of how a microorganism uses iron to more efficiently conserve energy when producing methane and carbon dioxide will allow researchers to make important predictions of future climate change and maybe even manipulate the production of these greenhouse gasses.
(Photo : CC0 license)

A new understanding of how an important methane-producing microorganism creates methane and carbon dioxide could eventually allow researchers to manipulate how much of these important greenhouse gases escape into the atmosphere. A new study by Penn State researchers proposes an updated biochemical pathway that explains how the microorganism uses an iron to more efficiently capture energy when producing methane. The study appears online in the journal of Science Advances.

"The microorganism Methanosarcina acetivorans is a methanogen that plays an important part in the carbon cycle, by which dead plant material is recycled back into carbon dioxide that then generates new plant material by photosynthesis," said James Ferry, Stanley Person Professor of Biochemistry and Molecular Biology at Penn State, who led the research team. "Methanogens produce about 1 billion metric tons of methane annually, which plays a critical role in climate change. Understanding the process by which this microorganism produces methane is important for predicting future climate change and for potentially manipulating how much of this greenhouse gas the organism releases."

Methanosarcina acetivorans, which are found in environments like the ocean floor and rice paddies where it helps to decompose dead plant material, convert acetic acid into methane and carbon dioxide. Prior to this study, however, researchers were not certain how the microorganism had enough energy to survive in the oxygen-free--anaerobic--environments where it lives. The researchers determined that an oxidized form of iron called "iron three," essentially rust, allows the microorganism to work more efficiently, using more acetic acid, creating more methane, and creating more ATP--a chemical that provides energy for biological reactions essential for growth.

"Most organisms like humans use a process called respiration to create ATP, but this requires oxygen," said Ferry. "When no oxygen is present, many organisms instead use a less efficient process called fermentation to create ATP, like the processes used by yeast in the production of wine and beer. But the presence of iron allows M. acetivorans to use respiration even in the absence of oxygen."

The findings allowed the researchers to update the biological pathway by which M. acetivorans converts acetic acid to methane, which now includes respiration. Pathways like this one involve many intermediate steps, during which energy is often lost in the form of heat. The researchers also determined that in the presence of iron, energy loss in this microorganism is reduced due to a recently discovered process called electron bifurcation.

"Electron bifurcation takes one of those steps that have the potential for tremendous heat loss and harvests that energy in the form of ATP rather than heat," said Ferry. "This makes the process more efficient."

This updated pathway could allow researchers to predict the amount of methane that the microorganism will release into the atmosphere.

"Rice paddies--a major source of the methane in the atmosphere--contain decaying rice plants submerged in water that are ultimately processed by M. acetivorans. If we measure the amount of iron three present in the paddies, we can predict how much methane will be released by the microorganisms, which can improve our climate change models."

In the absence of iron, the microorganism produces roughly equal amounts of methane and carbon dioxide from acetic acid. But with increasing amounts of iron, it produces more carbon dioxide relative to methane, so providing the organism with additional iron could alter the relative amounts of these greenhouse gasses that are produced.

"Methane is 30 times more potent as a greenhouse gas than carbon dioxide, which makes it more problematic in terms of our warming planet," said Ferry. "Now that we better understand this biochemical pathway, we see that we can use an iron to alter the ratios of the gasses being produced. In the future, we might even be able to go further and inhibit the production of methane by this microorganism.

"In addition to the practical applications, this is a major addition to understanding the biology of the largely unseen but hugely important anaerobic world."

https://www.natureworldnews.com/articles/42028/20190905/methane-producing-microorganism-makes-a-meal-of-iron.htm

Iraq receives offers for rice in tender

05 SEPTEMBER, 2019

Iraq is seeking at least 30,000 tonnes of rice

By Maha El Dahan, Reuters News

DUBAI- An Iraqi state tender for rice attracted a lowest offer of $432 a tonne for 30,000 tonnes of Pakistani rice, traders said on Thursday.

The offer was presented by Saif International.

Iraq is seeking at least 30,000 tonnes of rice and offers must remain valid up to Sept. 15.

The country's last reported rice purchase was 60,000 tonnes sourced from the United States on July 17.

Traders gave the following breakdown of offers in dollars per tonne on a cost, insurance and freight (CIF) basis:

* VA Trading: 30,000 tonnes of Argentinian rice at $541.20

* VA Trading: 30,000 tonnes of Argentinian or Uruguayan rice at $551.45

* ADM: 30,000 tonnes of Paraguayan rice at $546.15

* ADM: 30,000 tonnes of U.S. rice at $640.20

* Olam International: 40,000 tonnes of Thai rice at $471.80

* Olam International: 30,000 tonnes of Pakistani rice at $457.60

* Saif International: 30,000 tonnes of Pakistani rice at $432.00

* Saif International: 30,000 tonnes of Uruguayan rice at $572.00

* Hanalico: 50,000 tonnes of Uruguayan rice at $562.00

* Tiryaki: 30,000 tonnes of Brazilian rice at $554.90

* Amer Shan: 40,000 tonnes of Indian rice at $555.00

* Amer Shan: 30,000 tonnes of Uruguayan or Argentinian rice at $620.00

* Amer Shan: 30,000 tonnes of Paraguayan rice at $605.00

* Glencore: 30,000 tonnes of Argentinian rice at $555.00

* Glencore: 30,000 tonnes of Brazilian rice at $573.00

* Hakan: 30,000 - 60,000 tonnes of Thai rice at $472.13

* Canadian Agriculture: 90,000 tonnes of Uruguayan rice at $588.00

* Canadian Agriculture: 90,000 tonnes of Paraguayan rice at $554.00

(Reporting by Maha El Dahan; Writing by Michael Hogan in Hamburg and Nadine Awadalla in Cairo; Editing by Edmund Blair) ((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54; Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.net))

https://www.zawya.com/mena/en/markets/story/Iraq_receives_offers_for_rice_in_tender-TR20190905nL5N25W3ZBX1/

Rice continues to see solid to strong export demand

Yield reports from the Gulf Coast areas and continued solid-to-strong export demand have driven the rice market up. Mississippi, Missouri and Arkansas are preparing for harvest, but yields are expected to be below average. Long-grain paddy to Mexico, Venezuela and Central America is in high demand, with over 125,000 tons exported last week. Higher prices are expected to come to the rice market.

on

 September 5, 2019

By Jack Scoville 

Wheat

Wheat markets were lower and extended losses after September First Notice Day. Delivery notices were high and the market was caught off guard. Wheat remains a very weak market. The weekly charts show that Minneapolis Spring Wheat futures are at multi-year lows and the Chicago Hard Red Winter futures could be in the same position this week. Chicago Soft Red Winter futures are weak but are not close to making multi-year lows. The weekly export sales reports have shown improved demand and there are ideas that feed demand for wheat has been strong. US Wheat demand has been hurt by the strength of the US Dollar as well as some quality concerns as some areas saw a lot of rain during the planting and growing season and might not have good protein.

Russia and now Europe have been able to dominate sales into many world buyers lately. US prices have been working lower to try to compete for business, but are still a little high on a CIF or delivered basis as opposed to FOB. These factors are not likely to change in the short term. The Winter Wheat harvest is mostly over, but the Spring Wheat harvest is still progressing slowly. USDA will issue new production updates for Spring crops and also supply and demand estimates. The reports might not show many major changes on the supply side or the demand side.

Weekly Chicago Soft Red Winter Wheat Futures ©Jack Scoville Weekly Chicago Hard Red Winter Wheat Futures ©Jack Scoville Weekly Minneapolis Hard Red Spring Wheat Futures ©Jack Scoville 

Corn

Corn and Oats closed slightly lower, with Oats especially showing wide ranges and very limited volume as September went into delivery at the end of the week. Much of the conversation last week featured a discussion on exactly how big the crop could be and what the current below normal temperatures could mean to crop maturity. There was also a lot of position squaring before the start of September deliveries and before the end of the month and the quarter.

Plus, it was a long weekend last weekend due to Labor Day on Monday. The weather this week for the Midwest features mostly dry conditions and near to below normal temperatures. The crop needs time to develop after being planted late this year and futures should retain a weather premium as an early or even near-normal first freeze date could cause additional losses. USDA will issue its next round of production reports next week and the yield for Corn will be a primary focus of the trade.

USDA is expected to drop yields a bit as it makes its first survey-based estimate. Some think that USDA could drop yields back to its June estimate of 166 bushels per acre. Futures prices for Corn currently reflect very little if any weather premium and bad demand prospects. Export demand ideas have been hurt due to the slow export pace so far and domestic demand was hurt when President Trump approved waivers on ethanol consumption for 31 small refineries. The administration is now scrambling to try to replace the lost demand but probably has very few if any viable alternatives. Hopes for stronger prices will, therefore, rely mostly on reduced supply and supply based news will be watched by the market very closely.

Weekly Corn Futures ©Jack Scoville  Weekly Oats Futures ©Jack Scoville

Soybeans and Soybean Meal

Soybeans were a little higher and Soybean Meal closed lower last week. The weekly charts in both markets show the potential for prices to work lower over time. There are a lot of questions about the production potential for the crop this year in the US. Mostly, the market conversation centers around pod counts seen on the Pro /Farmer crop tour. The counts were very low and this was especially true for states east of the Mississippi River. The weather has been better lately and more flowering to create more pods has been reported. However, the market still expects less production when USDA releases its next update on September 12.

The current Midwest weather remains cool and temperatures have hindered development and yield potential. The crop is very late and will need an extended growing season to reach full potential. Demand is a great unknown as the trade wars continue. Washington says that they and the Chinese are talking and that progress is being made. Everyone wants to see a deal, but a potential deal always seems farther away despite official US optimism. Ideas for Soybeans demand were hurt when the president signed a waiver on biofuels for 31 small refineries a couple of weeks ago. The administration is working to improve biofuels demand to cover the lost demand it authorized but might not have that many good alternatives.

Weekly Chicago Soybeans Futures ©Jack Scoville Weekly Chicago Soybean Meal Futures ©Jack Scoville

Rice

Rice shot higher last week in reaction to yield reports from Gulf Coast areas and continued solid to strong export demand. Field yield reports from Texas and Louisiana are less than last year in all cases and average to below average. Final preparations for harvest are now taking place in Mississippi, Missouri, and Arkansas. Ideas are that field yields will be less in these states as well. Milling quality is said to be good to very good at this point in the harvest. Smut has been reported in Texas away from Houston, but the smut has not affected the milling quality so far. The major part of the crop is yet to be harvested, but indications are that USD is too high in its yield and harvested area estimate in its reports so far this year.

Traders will look for reduced production estimates in the updates next week. Meanwhile, demand has been good on the export front at over 125,000 tons for the week. Much of the demand was for long-grain paddy to Mexico and Venezuela as well as Central America. There was also a sale of 30,000 tons of milled Rice to Iraq that was known to the market a couple of weeks ago. The daily charts show up trends with a chance for November to move above 12.00 per hundredweight. The weekly charts show that futures held at a good support area and turned sharply higher. It looks like higher prices are coming to the Rice market. 

Weekly Chicago Rice Futures ©Jack Scoville

Palm Oil and Vegetable Oils

World vegetable oils markets were mixed as Palm Oil continued to move higher but Soybean Oil and Canola moved lower. Palm Oil was higher last week on ideas of stronger demand. A strong US Dollar supported Palm Oil buyers. Production ideas remain high for Palm Oil with both Malaysia and Indonesia talking about big production. The export pace from Malaysia has improved as more palm oil was exported in July than in June, but ideas are that the production is strong enough so that the improved demand will not do that much to create a tight stocks scenario. Exports for much of August have held firm. The weather has featured some rains but also dry periods and is being called good for Palm Oil production.

Soybean Oil was lower as the US government approved biofuels demand waivers for another 31 small refineries. The US government has hurt demand ideas in a big way and biofuels processors are responding but cutting production schedules and in some cases closing some plants. The US is facing increased competition for sales now from South America, and mostly from Argentina. Argentina has traditionally been the major source for Soybean Oil in the world market as it prefers to use other oils at home for its cooking needs.

\Canola was slightly lower last week as the harvest became more active. Parts of the Prairies remain too dry although rains have increased lately. The provincial reports have noted the uneven conditions as the growing conditions have been rated less than 50% good to excellent. StatsCan estimated production at 18.5 million tons and this was lower than expected. Demand has been strong recently as domestic crushers try to take advantage of very positive crush margins. 

Weekly Malaysian Palm Oil Futures ©Jack ScovilleWeekly Chicago Soybean Oil Futures ©Jack ScovilleWeekly Canola Futures ©Jack Scoville

Cotton

Cotton was higher and rallied after making new lows for the move on the weekly charts. It was a positive week but overall trends remain down. It has been a relentless move lower since April and the entire down move now extends to the early summer of 2018. Futures rallied on Friday as hurricane Dorian was forecast to move to the US Coast as a Category 4 hurricane. The system was initially headed to Florida but forecast tracts started to move the landfall potential further north along the coast into the Southeast. There was also a chance that the system would curve north over the ocean and move into the Carolinas.

There is potential for Cotton losses in the Southeast no matter where the system lands. Bolls are starting to open now and the fiber could be colored or could the bolls could drop if there is enough wind. The system will create new questions about production potential. Conditions in the Texas Panhandle have improved with some recent showers and ideas are that production potential had been stabilized. Demand remains a real problem for the market as export sales overall have been poor. The world market remains quiet with very limited Chinese buying interest anywhere. Ideas are that USDA will be forced to lower export demand estimates in the September updates next week.

Weekly US Cotton Futures ©Jack Scoville

Frozen Concentrated Orange Juice and Citrus

FCOJ was higher last week but closed about in the middle of the weekly range after some selling hit the market on Friday. Chart patterns have turned mixed in response to the hurricane threat that appeared last week. Hurricane Dorian was originally expected to hit central and southern Florida but later forecasts indicated that the system could curve north and just give a glancing blow to the state. It is still over the Bahamas now and is expected to start to curve north later today. Citrus interests are more relaxed now as the forecasts have changed significantly from last week.

The weather in Florida had been tranquil as the state has seen frequent showers and storms that have aided in development in the fruit. Inventories in Florida are still 17% above a year ago. Fruit for the next crop is developing and are as big as baseballs. Crop conditions are called good. Mostly good conditions are reported in Brazil.

Weekly FCOJ Futures ©Jack Scoville

Coffee

Both New York and London closed higher for the week after some choppy trading. The weekly chart formations show the potential for both markets to carve out lows at this time. Generally, the buy-side of the market has been quiet but there has been some demand. Offers from the origin are not that hard to find. The market is starting to feel smaller crops from Brazil and Vietnam for the current harvest. It will expect bigger crops next year. Some think that Brazil could producer over 70 million bags next year.

Demand has been increasing over the last few years on the consumer level, but production potential is growing faster. Producers in Brazil have the best chances to make money at current prices as they have more mechanized farming. Vietnam has more mechanization, too. The rest of the Coffee origin world will struggle due to more difficult growing terrain and higher costs of production. However, the weaker production this year should help to hold prices from going much lower.

Weekly New York Arabica Coffee Futures ©Jack Scoville Weekly London Robusta Coffee Futures ©Jack Scoville

Sugar

Futures closed lower for the week in both markets as ideas of big supplies and just average demand continue to circulate. World supplies still appear ample for the demand potential. Reports from India indicate that the country still has a large surplus of White Sugar that probably must be exported. India is reporting below-normal monsoon rains, but rains have been much better lately. The last couple of weeks have featured above-average rains. There are concerns that the Indian monsoon will not be strong this year and that Sugarcane production could be hurt.

Processing of Sugarcane in Brazil is slower and the pace of the crush is behind last year. Mills are refining mostly for ethanol right now as has been the case all season. The fundamentals still suggest big supplies, and the weather in Brazil is good enough and India has improved to support some of the big production ideas. The weather has been much more uneven in production areas from Russia into Western Europe. Those areas had a very hot and dry start to the growing season. Better weather was seen in early August then it turned hot and dry again. These areas need more rain and some cooler weather to provide better conditions for the final development of the Sugarbeets crops. 

Weekly New York World Raw Sugar Futures ©Jack ScovilleWeekly London White Sugar Futures ©Jack Scoville 

Cocoa

Futures closed lower in both markets with the biggest losses seen in New York. London closed just slightly lower for the week. While the market acts weak, the next main crop harvest comes closer to reality in West Africa. The weather in West Africa is still a feature. Meanwhile, the weather in Ivory Coast has improved due to reports of frequent showers. Some showers in West Africa now help relieve stress on trees. Ideas are that the next crop will be good. The harvest will start in the Fall.

Growing and harvesting conditions in Asia are also reported to be good. The harvest is ongoing amid showers, but good progress in the harvest is expected at this time. More and more Asian Cocoa has been staying at home and processed in Indonesia for export in the region. Export demand in Asia has been growing and Indonesia has been eager to be the primary source of Cocoa.

Weekly New York Cocoa Futures ©Jack Scoville Weekly London Cocoa Futures ©Jack Scoville

—

DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation for writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.

RELATED TOPICS:AGRICULTURECOMMODITIESCROPSFEATUREDRICEWHEAT

Jack Scoville

Jack Scoville is a futures market analyst specializing in grains, softs, rice, oilseeds, and tropical products such as coffee and sugar. In addition to writing daily market commentaries in both English and Spanish, he offers brokerage services to an international clientele of agricultural producers, processors, exporters, and other professional traders. He is regularly quoted by major wire services including Dow Jones, AP, and Reuters. His comments are sourced by newspapers around the world and on various radio and television programs.

https://born2invest.com/articles/rice-continues-solid-strong-export-demand/

World food prices dip in August

REPORT

from Food and Agriculture Organization of the United Nations

Published on 05 Sep 2019 —View Original

Bakers prepared bread in Armenia.

© FAO/Karen Minasyan

Maize and wheat prices drive FAO Food Price Index down amid upward revisions to global cereal production prospects

5 September 2019, Rome - Global food prices declined in August, driven by sharp falls in the prices of staple cereals and sugar, according to a report issued today by the Food and Agriculture Organization of the United Nations.

The FAO Food Price Index, which tracks monthly changes in the international prices of commonly traded food commodities, averaged 169.8 points in August 2019, down 1.1 percent from July while still up 1.1 percent from its August 2018 level.

The FAO Cereal Price Index declined by 6.4 percent from the previous month. Maize values turned sharply lower due to expectations of a much larger than previously anticipated harvest in the United States of America, the world's largest maize producer and exporter. Wheat prices also remained under downward pressure, reflecting ample export availabilities, but those of rice edged up, due to seasonal effects as well as concerns over the impact of weather on crops in Thailand.

The FAO Sugar Price Index was down 4.0 percent from July, due largely to the weakening of the Brazilian real, as well as prospects of larger shipments by India and Mexico.

By contrast, the FAO Vegetable Oil Index rose by 5.9 percent in August, hitting an 11-month high amid a rebound in global import demand for palm oil as well as unfavorable weather conditions in Indonesia's major growing regions. Soy oil prices also rose, driven in part by lower than anticipated crush volumes in North America.

The August FAO Meat Price Index rose by 0.5 percent, now up 12.3 percent from its value at the beginning of the year. The increase reflected higher international price quotations for pigmeat, underpinned by strong import demand from China, where the African Swine Fewer has curtailed domestic production.

The FAO Dairy Price Index rose by 0.5 percent from its July level, reversing sharp falls registered in the previous two months, as price quotations rose for cheese, Skim Milk Powder and Whole Milk Powder.

New forecasts for global cereal production

FAO also released a new Cereal Supply and Demand Brief, raising its July forecast for global cereal output by 22 million tonnes to 2 708 million tonnes, 2.1 percent above the 2018 outturn.

The revisions mostly reflect improved expectations for U.S. maize production. Meanwhile, FAO lowered its estimate for global wheat output in 2019 due to reduced crop productivity in the European Union and the Russian Federation, but it is still expected to be 5.0 percent higher than in 2018. The forecast for worldwide rice production has been revised up from July to 517 million tonnes, at par with last year's record level, driven by increases in China and the United States.

World cereal utilization for the year ahead is expected to hit a new record of 2 715 million tonnes, buoyed by rice consumption hitting an all-time high of 519 million tonnes, translating into a 0.5 kilogram per capita increase from the previous year. Utilization forecasts for wheat, maize and barley were also raised.

The stronger harvest prospects point to world cereal stocks reaching 847 million tonnes by the close of seasons in 2020, which, however, would remain around 16 million tonnes below their opening levels. Maize inventories are expected to accumulate sharply in the United States, while China's wheat stocks are currently set to expand by 7.9 percent and reach an all-time high.

FAO left unchanged its forecast for world trade in cereals at nearly 415 million tonnes, as expected increases in wheat and rice trade offset reduced trade prospects for maize and sorghum.

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[ANALYSIS] Plummeting rice prices: How will our rice farmers cope?

Unquestionably, we need to support all farmers whose incomes and livelihoods are now hurting because of rice tariffication

JC Punongbayan

Published 4:30 PM, September 05, 2019

Updated 5:15 PM, September 05, 2019

It’s a very bad time to be a rice farmer.

A precipitous drop in rice prices is endangering the incomes and livelihoods of more than two million Filipino rice farmers nationwide.Many blame the Rice Tariffication Act, which President Rodrigo Duterte signed last Valentine’s Day.

The law replaced the old import quotas with tariffs, so that anyone can import rice as long as they pay the requisite tariffs or import taxes. (READ: Will rice tariffication live up to its promise?)

But more than 6 months after its implementation, some government economists were reportedly “surprised” by the magnitude of the recent price drops.

Has rice tariffication gone overboard? What can government do to help those whose boats were not buoyed up – but instead submerged – by the tide of cheap rice from abroad?

Free fall

Data confirm that rice prices are dropping like a rock.

As of mid-August the average farmgate price of palay nationwide was recorded at P17.62 per kilo.

Figure 1 shows that’s a whopping 21% drop from last year. Retail prices of regular-milled and well-milled rice, by contrast, have dropped by 10% and 7%, respectively.

There’s considerable variation in rice prices across the regions. Farmgate rice prices have reportedly plummeted to as low as P9 per kilo in Pampanga and P7 per kilo in Nueva Ecija and Bataan. Farmers fear rice prices will only drop further come next harvest season.

Figure 1.

There are many reasons behind the free fall of rice prices.

First, we’re coming from a period of unusually high rice prices. Around September last year farmgate prices were actually rising by as much as 19%. This was due largely to the near-depletion of subsidized rice, which propped up commercial rice demand and prices.

Second, the harvest season kicked in late last year, accounting for the drop of rice prices even before 2019.

Third, the Rice Tariffication Act, as expected, inundated the market with cheap rice from abroad. This is in keeping with the law’s primary goal of making rice more affordable for the vast majority of Filipinos.

Lower rice prices are especially good news for the poorest fifth of Filipino households, who consume as much as a fifth of their budgets on rice alone. (By contrast, the richest fifth of households spend only about 5% of their budgets on rice.)

Rice tariffication was also touted as a way to combat last year’s runaway inflation. Figure 2 shows that most regions are now experiencing rice deflation, with prices decreasing the most in Soccsksargen, Caraga, and Davao.

Even so, retail prices have yet to drop to P27 per kilo as initially foreseen by the economic managers.

Figure 2.

While lower rice prices benefit rice consumers, they hurt rice producers, mostly our local farmers.

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Economic managers justified rice tariffication by arguing rice-farming households are, in fact, “net purchasers” or “net consumers” of rice. Simply put, they consume more rice than they produce. Hence, lower rice prices should benefit them in the end.

But Figure 1 shows farmgate prices are dropping 2 to 3 times faster than retail rice prices. For anyone whose income is pegged to farmgate prices, this is a recipe for disaster.

Even without rice tariffication, farmers are already among our most economically vulnerable workers.

A friend who teaches in Nueva Ecija told me some rice-farming families have already stopped sending their kids to school on account of depressed rice prices.

Coping mechanisms

Government officials are now scrambling to ameliorate the impact of rice tariffication on our farmers. But will their proposals work?

1) Rice fund

In anticipation of the hurt it will cause local rice farmers, the Rice Tariffication Act provided for a P10-billion fund called the Rice Competitiveness Enhancement Fund (RCEF).

Financed from the tariff revenues, RCEF is to be earmarked for machinery, seeds, and interest-free loans that will help our farmers stand on their own feet once we’re flooded with cheap rice imports.

But in a recent Senate hearing, Senator Cynthia Villar expressed dismay at how RCEF has been handled thus far by the budget and agriculture departments.

Apart from budget issues, some experts also doubt if spending on machinery and seeds is best for improving the competitiveness of our farmers, vis-à-vis credit and insurance. Dr Ramon Clarete of the UP School of Economics suggests using conditional cash transfers.

Past agricultural funds were also corruption-prone (think of the P728-million fertilizer fund scam). Just how corruption-proof is RCEF?

2) Price support

Various forms of price support are also on the table, with varying levels of feasibility.

First, some say government can boost the incomes of embattled farmers by aggressively buying palay at subsidized prices.

After all, the National Food Authority (NFA), which previously monopolized rice importation, is still around. In fact, the NFA is mandated by the Rice Tariffication Act to “maintain sufficient rice buffer stock.

But some say that the RCEF – which aims to develop farmers’ competitiveness – is far superior compared to simply handing out money to farmers.

Some farmers are also clamoring for a price floor on rice, or a minimum price by which rice must be bought from them. They suggested that it be set at P10-P12 per kilo to match current production costs.

When such price floor kicks in, Econ 101 tells us government will have to contend with perennial rice surpluses as artificially high prices induce farmers to produce more than consumers will buy.

Farmers can always dispose of these surpluses by selling them in the black market at prices lower than the price floor.

Unless government can commit to always buy such surpluses, it will be very hard to enforce and sustain such a price floor.

3) Prohibitive tariffs

Finally, Senator Imee Marcos suggested that government raise tariffs against ASEAN or non-ASEAN countries.

She said, “If South Korea and Japan have imposed import tariffs of 500% to 800% to protect their local farmers, why can’t we?”

But such prohibitive tariffs will, by themselves, cause more distortions in the market and defeat the very purpose of rice tariffication: to make rice more affordable for millions of Filipinos.

Good intentions not enough

Unquestionably, we need to support all farmers whose incomes and livelihoods are now hurting because of rice tariffication.

Yet at the same time we shouldn’t demonize rice tariffication per se. Retail rice prices are also going down, albeit to a lesser degree than farmgate prices. This could go a long way to reduce overall hunger and poverty.

Politicians must also tread carefully when it comes to helping our farmers. Policies driven by good intentions, yet lacking in careful thought, can often do more harm than good. – Rappler.com

The author is a PhD candidate at the UP School of Economics. His views are independent of the views of his affiliations. Follow JC on Twitter (@jcpunongbayan) and Usapang Econ (usapangecon.com).

https://www.rappler.com/thought-leaders/239392-analysis-plummeting-rice-prices-how-will-our-rice-farmers-cope

Rupee slide drags Indian rice prices lower, strong baht buoys Thai rates

Harshith Aranya

SEPTEMBER 5, 2019 / 6:40 PM

Our Standards:The Thomson Reuters Trust Principles.

BENGALURU (Reuters) - A plunging rupee weighed on Indian rice export prices this week while a strong baht kept rates for the grain from flood-hit Thailand near a one-year high and more expensive than its Asian competitors.

Men load rice bags to a ship for export at a rice processing factory in Vietnam's southern Mekong delta, Vietnam July 6, 2017. REUTERS/Kham/File Photo

In top-exporter India, the benchmark 5% broken parboiled variety was quoted around $369-$374 per tonne this week, down from $374-$378 a week ago, due to a depreciation of the rupee despite healthy demand from African countries.

“The rupee has been helping to clinch deals in last few weeks,” said an exporter based at Kakinada in the southern state of Andhra Pradesh.

The rupee fell to 72.40 per dollar on Tuesday, its weakest this year, still suffering from data last week that showed the economy grew at its slowest pace in over six years in the last quarter.

Prices of second-biggest exporter Thailand’s benchmark 5% broken white variety narrowed slightly to $410-$422 a tonne from last week’s $410-$430, traders said.

At an average of $416 per tonne, Thai rice is trading near its highest since June 2018, when prices plunged due to a sudden build-up in supply.

A firmer Thai baht, Asia’s best-performing currency this year, has kept Thai prices higher than those of main competitor Vietnam since the beginning of the year. Also keeping prices elevated were fears of a supply shortage due to a months-long drought earlier, and now floods, in rice-growing areas.

Thailand said flash floods caused by tropical storm “Podul” damaged over 240,000 hectares of agriculture land.

“Drought and floods have made prices high and uncompetitive, significantly dimming export prospects,” a Bangkok-based trader said. “Output will certainly be lower this year.”

Meanwhile, Bangladesh, also reeling from floods, is providing free seed and fertilizer to affected farmers for the next crop season, Agriculture Minister Abdur Razzaque said.

Floods in July washed away crops that would have yielded nearly 400,000 tonnes of rice, Bangladesh’s agriculture ministry estimates showed.

Prices of Vietnam’s 5% broken rice fell to $325-$330 per tonne on Thursday from $335-$340 last week on weak demand.

“Buyers from the Philippines haven’t placed any new deals this week ahead of a harvest there later this month,” a trader based in Ho Chi Minh City said.

Another trader in the city said demand from other markets was also muted, adding that Cambodia recently shut its door to Vietnam’s glutinous rice variety, pulling down its price by $100 from a recent peak of $710 a tonne.

Reporting by Khanh Vu in Hanoi, Patpicha Tanakasempipat in Bangkok, Ruma Paul in Dhaka and Rajendra Jadhav in Mumbai; editing by Arpan Varghese and David Evans

https://in.reuters.com/article/asia-rice/rupee-slide-drags-indian-rice-prices-lower-strong-baht-buoys-thai-rates-idINKCN1VQ1SZ

Amarava Rice Mill to increase capacity

by Our Reporter 

 September 6, 2019,Agriculture

Amarava Rice Mill based in Kano is poised to double its rice production capacity this month.

Amarava, the first end-to-end made-in-Nigeria rice mill,  was  inaugurated in the fall of 2017 by President Muhammadu Buhari.The mill is to boost its production capacity by over 100 percent, to the tune of 500 metric tonnes daily even as it is heavily investing in the expansion of its mills.

The  Chairman, Fullmark Group (parent company of Amarava Agro Processors Limited), Sriram Venkateswaran, in an interview,  said the drive to boost capacity was geared towards promoting government diversification effort,to  reduce independence on the importation of rice and improve food security.

“Currently, we produce 250 metric tonnes of rice per day, and with the coming expansion of our millers, we are set to double this capacity. This serves as positive reinforcement for our local rice farmers because they will increase hectares used for rice cultivation. Not only that, we are engaging more farmers who will be directly involved in the cultivation process thereby boosting the agricultural productivity of the Nigerian economy”, he noted.

He noted that the expansion of the millers beyond its current capacity is bound to generate more jobs both directly and indirectly across the country, assuring that Nigeria is on the journey to attain its true status of the ‘food basket of Africa’.

Venkateswaran urged the government at all levels, particularly the Central Bank of Nigeria (CBN) to continue in its support for the agricultural revolution underway, by committing more funding for agricultural investors and instituting enabling policies for local farming.

https://thenationonlineng.net/amarava-rice-mill-to-increase-capacity/

Border closure: The pains, the gains

by Jane Chijioke 

 September 6, 2019

As the closure of borders enters the second week, traders, shoppers and other stakeholders recount their ordeals. Stakeholders are, however, confident of good tidings when the exercise is over, JANE CHIJIOKE reports.Her forlorn looks say it all. With barely a week to school resumption in Lagos State, Mrs. Stella Chukwu, a mother of four, is unhappy. For over one week, she has been unable to stock her shop at the Iddo market with rice.

Mrs Chukwu, a trader in local and foreign rice, has been dealt a blow with the restriction of movement across the country’s borders with her neighbours – Benin Republic, Chad Republic, Cameroon, among others.

The restriction, code named “Exercise Swift Response”, a joint border patrol by the Nigerian Customs Service (NCS), Nigerian Immigration Service (NIS), and the Armed Forces, aimed at ensuring security of the country, has  affected trade between Nigeria and her neighbours.

Before the closure, Mrs Chukwu  got supplies of foreign rice with little or no capital. She paid back after selling the commodity. Her involvement in foreign rice sales is to augment the small quantity of local rice she sells.  But since the partial closure of the border, she barely has goods to sell. With her trade in doldrums, she has remained concerned about her children’s chances of returning to school due to lack of finance.

With the borders shut against trade, primary distributors of rice have resorted to the cash and-carry, jettisoning the previous arrangement of selling on credit.

“Before the closure of the border, Nigerian rice was sold at between N12, 000 and N13,500. I was able to buy 10 bags of Nigerian Rice; now that it has increased to N14,500, how many can I  buy because I don’t have the funds? Some of us here get this foreign rice on credit and pay after selling. That way, we are able to stock up our shops which also attract customers,” Mrs Chukwu explained.

Now, with barely five bags of local rice and four gallons of 25kg groundnut oil in her shop, she fears the unknown.

Indeed, the soaring prices of the local and foreign rice have been a devastating reality  for some sellers.  The ripple effect of the closure, this reporter observed, has been unbearable. They complained of hike cost of the goods, paucity of funds and no affordable credit facility to boost their trade.

Customs smile

The above captures the mood of most traders and shoppers across the several markets visited in Lagos earlier in the week. Many traders have continued to rue the pains the continued closure of the borders is taking on market activities.

For instance, last Monday, the Seme Customs Command of the NCS said its revenue in the last two weeks has increased by over N40 million, coming from seizures recorded in the ongoing exercise. The command said its officers seized 269 baskets of fresh tomatoes, fresh pepper and sacks of cucumber and 16 baskets of fresh okro, all perishable products with DPV of N367,471,  imported from the Benin Republic.

Also seized were 875×50 bags of foreign parboiled rice with Duty Paid Value (DPV) of N15,023,750; 12×25 litres of vegetable oil with DPV of N131,625.90; 6x50kg of refined sugar with DPV of N147,640.50; 535 bales of used clothes with DPV of N17,259,769; 20 parcels of cannabis Sativa with street value of N516,180; 16 sacks of used shoes, belt and ladies bag with DPV of N541,989; 57 pieces of textile wrappers with DPV of N367,778; 65 cartons of poultry products with DPV of N948,333.75; 137×25 litre jerry cans of Petrol with DPV of N287,700; 16 buckets of car paint with DPV of N144,530.40; 11 cartons of galvanised nails with DPV of N99,364.65; 2,566 pieces of currency (in coins) and other foreign currencies; seven cartons of condensed milk with DPV of N78,534.75; four cartons of spaghetti noodles with DPV of N15,678.97; two cartons of tin tomato with DPV of N14,589; and two sacks of coconuts with DPV of N38,714.

Others include four cartons of body cream, One bag of detergent soap with DPV of N58,913; 20 pieces of sandpaper with DPV of N12,778.50; four television sets; two pieces of television stands with DPV of N187,115.25; four cartons of fuel filter with DPV of N11,669; one carton of motor spare parts with DPV of N134,631; and one piece of gas burner with DPV of N2,137.

RIFAN gains?

For local rice growers, stakeholders were convinced that this period provides them the opportunity to increase their output and convince the world that they could meet, if not surpass, the local rice demands. And the association seem to be ready. Obviously in support of the initiative, the Rice Farmers Association of Nigeria (RIFAN) said that over one million metric tons of rice worth $400 million (N145 billion) was smuggled into  the country since the beginning of the year. The body views this as detrimental to local industry.

RIFAN National Chairman Mr. Mohammed Abubakar said when the partial closure of the borders was viewed either from the trade or security point, the action being coordinated by military and paramilitary forces was commendable.

He accused neighbouring countries and some multinational companies of conniving to sabotage food security and economic prospects of Nigeria with smuggling through Benin Republic.

“Only Nigerians eat parboiled in West Africa as others, including Beninois, eat white rice. And so, any parboiled rice imported into Benin Republic is only on transit to Nigeria,” he said.

Abubakar expressed the delight of members that mills that were producing below installed capacity have started revving up production.

“Rice paddy that have been lying idle in stores are being milled because distributors are increasing their demand. We are also assuring Nigerians that we, and other rice producers, have the capacity to fill the loophole that absence of smuggled rice would create.

“We have also committed ourselves in writing to government that we will not take advantage of the situation to increase prices. A bag of 50 kilogramme rice will sell for a minimum of N13,300 and maximum of N14,000,” he stated.

Biting harder

At a rice market in Lagos, there were scanty goods in most shops. At Iddo Rice Market, for example, some shops were locked while other shops had few goods.

Also, at Daleko market, Mushin, Lagos, some shops had few goods. However, the local rice had more prominence than the foreign rice.

According to Mr Yemi Olowo-Ido, at Iddo Market, the hike in the price of the rice and unavailability of the foreign rice, have put some traders out of business. He explained that traders could not access credit because of the high interest rate; as such, they could only buy few goods.

His words: “Traders don’t have goods to sell in their shops. That is why their shops are empty. They don’t have money to buy the Nigerian rice at N14, 500 per bag. How many can they buy to sell? Will you rent a shop of over N600, 000 and just have four to six bags of rice in it. They need loans, but the interest rate on collateral is quite high. They can’t afford it.Things are hard. To eat is difficult.

“Commercial banks used to give us overdraft, but not anymore. To get a loan now is a task; the interest rate is a barrier. We are pleading with these rice companies and distributors to understand our plight. Let there be a win-win agreement because for now, if you don’t have money at hand, you can’t sell Nigerian rice,” he said.

Corroborating him, a trader at Daleko Market, who preferred anonymity, said since the closure, some traders have been out of stock, because they can’t buy large quantities due to paucity of funds and no business agreement with rice dealers that favour them.

“We barely make a profit of between N200 and N400. For some of us, who sell foreign rice, most times we collect the goods and pay them back after sales. We do not enjoy local rice dealers.  That is how we have been surviving in the business. Some of us cannot buy from the rice companies because they won’t sell in little quantities nor on credit.  Those who have the money, especially the distributors, buy in large quantities from them and resell to us.  The distributors, in turn, don’t sell on credit to us so we can only buy few bags,” the trader said.

The Iyaloja of Daleko Rice Market,  Mrs Jumlar Solaja, explained that  as return on investment is important to business, rice millers would not engage in such informal trade of leasing out their goods on credit as they have invested  a lot in  processing  the rice, including buying of rice paddy.

She urged rice vendors to apply for loans in banks and also take advantage of the Rice Distributors loans, which has seven percent interest rate to boost their trade. As part of reasons for the hike in price of rice, she said they pay N500 as transport per bag.

She said there was the need for the Federal Government to subsidise the rice paddy for the millers, adding that more rice farmers were needed.

https://thenationonlineng.net/border-closure-the-pains-the-gains/

DA: Hoarding To Blame For Low ‘Palay’ Prices

By Featuresdesk (ICG) on September 5, 2019

It is not the implementation of the Rice Tariffication Law (RTL) but hoarding to blame for the drop in prices of palay (rice), the Department of Agriculture (DA) said on Wednesday.

Agriculture Secretary William Dar admitted that although the RTL (Republic Act 11203) had “birth pangs”, he believed that it will help farmers become more competitive over time and lower inflation rates.

Dar explained that prices have already been dropping because of traders and millers involved in hoarding even before President Rodrigo Duterte signed RTL on Feb. 14, 2019.

“So may nagsasamantala (There are some taking advantage),” Dar said in an economic briefing in Malacañang.

“That’s the major direction by which we are looking at. Of course, importation nandiyan na e (is already there), that’s part of the law,” he added.

Dar assured that his agency and the trade department will implement the full force of the law should traders and millers refuse to cooperate.

“Makiusap muna tayo (Let’s talk to them first). We know who they are, we have the list, so papasyalan namin, siguro puwede pa magkape muna then alamin natin kung bakt di sila naglalabas (perhaps we can have coffee and find out why they are not releasing) then we have to encourage them to really bring out more,” Dar said.

“We’ll see to it that we will apply the full force of the law and hoarding, if we feel there will be hoarding,” he added.

Under the RTL, importers only need to secure a sanitary and phytosanitary import clearance from the Bureau of Plant Industry as proof that the rice they will bring in is safe for consumption.

It imposes a tariff for imported rice, which is 35 percent per ton of rice coming from Association of Southeast Asian (Asean) countries and 50 percent up to as high as 180 percent from non-Asean countries.

The law also creates a PHP10-billion Rice Competitiveness Enhancement Fund (RCEF) to provide assistance to farmers and finances government’s farm modernization programs.

Measures in place

Dar said government has implemented measures to help affected farmers who are forced to sell their produce as low as PHP7 per kilo since last month.

To date, his agency has implemented the Expanded Survival and Recovery Assistance Program for Rice Farmers (SURE Aid) which is aimed at providing loan assistance for immediate relief to rice farmers affected by the impact of low palay prices.

Under the program, the affected rice farmers tilling one hectare of land and below may avail of PHP15,000 loan via SURE Aid, a zero-interest loan which is payable up to eight years.

Dar said his agency has also been stricter in limiting the importation of rice by ensuring that rice imports comply with the sanitary and phytosanitary measures.

“Titingnan natin (We will see) whether these imported stocks are complying to the sanitary and phytosanitary measures,” Dar said.

“Pag nakakita kami ng (When we see) foreign object doon sa bigas, i-hold namin (in rice, we will put it on hold). That’s legal. Kung makakita kami isang bubkok doon sa bigas, i-hold namin until the bukbok is out (If we see bukbok –rice weevils — in rice, we will put it on hold until the bukbok is out). That’s how strict we will be implementing the sanitary and phytosanitary measures,” Dar said.

Dar said he has also directed administrators to ensure that warehouses of the National Food Authority (NFA) will be leased to provincial governments instead of the private sector.

“Provincial governments, about 25 have already committed to do business – palay buying, milling and selling rice. If they don’t have the capacity now, they can invest their money through NFA,” Dar said.

Moreover, Dar said his agency is working with the Department of Social Welfare and Development (DSWD) in crafting an agreement which will convert the PHP600 monthly rice subsidy into rice distribution.

This way, he said, DSWD will buy the rice from the NFA and provincial governments. (PNA)

http://pageone.ph/da-hoarding-to-blame-for-low-palay-prices/

PH August inflation nears 3-year low as rice tariffication caps food prices  

By: Daxim L. Lucas - Reporter / @daxinq

Inquirer Business / 11:02 AM September 05, 2019

MANILA, Philippines — Prices of basic goods and services rose at their slowest pace in almost three years in August as the effects of the Duterte administration’s anti-inflation measures — especially the controversial rice tariffication law — began to take root across the economy.

According to the Philippine Statistics Authority, the country’s headline inflation rate decelerated further to 1.7 percent last month, marking the lowest consumer price index level since the 1.8 percent recorded in October 2016.

“The slowdown of inflation in August 2019 was mainly due to the slower annual increase in the index of the heavily-weighted food and non-alcoholic beverages at 0.6 percent,” the PSA said in a statement, adding that the economy also saw slower annual rates last month for housing, water, electricity, gas and other fuels (1.8 percent); health (3.1 percent); recreation and culture (1.8 percent); and restaurant and miscellaneous goods and services (3.2 percent).

The transport index, which dropped by 0.2 percent, also contributed to the downtrend of inflation this month,” the agency said.

The lower August inflation raised expectations that the central bank would continue cutting interest rates over the next few months in a bid to help fuel economic growth after the first semester’s lackluster performance.

“With inflation careening below the Bangko Sentral ng Pilipinas’ own target, we expect the [central bank] governor to deliver on his pledge and cut policy rates by an additional 25 basis points at the Sept. 26 [Monetary Board] meeting,” ING Bank senior economist Nicholas Mapa said in an emailed note to the press.

Meanwhile, BSP Governor Benjamin Diokno said in a statement that “the latest inflation outturn is consistent with the Bangko Sentral ng Pilipinas’ prevailing assessment that it will continue to decelerate in the third quarter of 2019 and picky up slightly in the fourth quarter.”

He warned, however, that deepening trade tensions between China and the US have raised economic uncertainties and risk pushing local prices up once more.  /muf

https://business.inquirer.net/278280/ph-august-inflation-nears-3-year-low-as-rice-tariffication-caps-food-prices#ixzz5yjpXDQR6

PH August inflation nears 3-year low as rice tariffication caps food prices  

By: Daxim L. Lucas - Reporter / @daxinq

Inquirer Business / 11:02 AM September 05, 2019

MANILA, Philippines — Prices of basic goods and services rose at their slowest pace in almost three years in August as the effects of the Duterte administration’s anti-inflation measures — especially the controversial rice tariffication law — began to take root across the economy.

According to the Philippine Statistics Authority, the country’s headline inflation rate decelerated further to 1.7 percent last month, marking the lowest consumer price index level since the 1.8 percent recorded in October 2016.

“The slowdown of inflation in August 2019 was mainly due to the slower annual increase in the index of the heavily-weighted food and non-alcoholic beverages at 0.6 percent,” the PSA said in a statement, adding that the economy also saw slower annual rates last month for housing, water, electricity, gas and other fuels (1.8 percent); health (3.1 percent); recreation and culture (1.8 percent); and restaurant and miscellaneous goods and services (3.2 percent).

The transport index, which dropped by 0.2 percent, also contributed to the downtrend of inflation this month,” the agency said.

The lower August inflation raised expectations that the central bank would continue cutting interest rates over the next few months in a bid to help fuel economic growth after the first semester’s lackluster performance.

“With inflation careening below the Bangko Sentral ng Pilipinas’ own target, we expect the [central bank] governor to deliver on his pledge and cut policy rates by an additional 25 basis points at the Sept. 26 [Monetary Board] meeting,” ING Bank senior economist Nicholas Mapa said in an emailed note to the press.

Meanwhile, BSP Governor Benjamin Diokno said in a statement that “the latest inflation outturn is consistent with the Bangko Sentral ng Pilipinas’ prevailing assessment that it will continue to decelerate in the third quarter of 2019 and picky up slightly in the fourth quarter.”

He warned, however, that deepening trade tensions between China and the US have raised economic uncertainties and risk pushing local prices up once more.  /muf

https://business.inquirer.net/278280/ph-august-inflation-nears-3-year-low-as-rice-tariffication-caps-food-prices#ixzz5yjpXDQR6

DA eyes stringent nontariff options to limit rice imports

By Jasper Y. Arcalas

September 4, 2019

This file photo shows different varieties of rice being sold at a local market in Manila.

The Department of Agriculture (DA) on Monday said it is mulling over the use of more nontariff measures (NTMs), such as stringent sanitary and phytosanitary (SPS) requirements, to regulate the entry of imported rice.

This is, the DA said, will help farmers cope with the drop in farm-gate prices of unhusked rice due to the influx of cheap imports following the effectivity of a law which eased import restrictions.

Agriculture Undersecretary Ariel T. Cayanan said the DA is now looking into the NTMs and other measures that it can implement to deter the entry of more rice imports.

Bringing down the maximum residue limit (MRL) for pesticide content of imported rice to nearly zero and requiring shipments to undergo pest risk analysis are among the NTMs being considered by the DA.

“The DA is now also studying the implementation of NTMs. Generally these are sanitary and phytosanitary measures, including preborder protection starting from the country of origin,” Cayanan said during a House Committee on Agriculture and Food hearing on the implementation of the rice trade liberalization law.

“We have to strengthen and make our measures for market access more stringent before they could export here. What’s wrong with an MRL approaching to zero, pest risk analysis and [requiring] traceability? If we strengthen our regulations and they are unable to access our market, then they won’t be really able to export [rice],” he added.

Cayanan said the DA may tighten accreditation rules and the issuance of SPS import clearance (IC) to interested rice importers by requiring pertinent food safety certifications.

“In the case of country of origin [of shipments], we can intensify how we scrutinize eligible rice exporters to our country because we do not want pests to come in,” he said.

Cayanan said the Philippines will not violate any international agreements if the government pushes through with the implementation of stringent requirements.

He said the government will do this to ensure that food imports are safe for human consumption and that the local rice industry is
protected from pests.

“Other countries are implementing such NTMs, like [zero MRL] in Japan and South Korea,” he said. “We are just making our requirements more stringent [due to food safety reasons and concerns].”

Import protocol

In a separate statement issued by the Philippine Chamber of Agriculture and Food Inc. (Pcafi) on Monday, Agriculture Secretary William D. Dar said he has instructed the Bureau of Plant Industry (BPI) to implement relevant SPS measures and requirements prior to the issuance of ICs to rice importers.

“We have asked the BPI to implement protocol in import regulations regarding pesticide residue, presence of storage pests before the issuance of SPS [certificate] for imported rice,” Dar said during a forum organized by Pcafi last Saturday.

Dar said the DA is now studying the possibility of implementing trade remedies, such as special and general safeguards, to calibrate the entry of rice imports.

Cayanan said the DA’s policy research service is also studying the possibility of slapping special safeguard duties and antidumping duties on rice imports.

“If the imports are excessive, [the DA] will limit these. The DA will stop rice from its origin [especially] if it’s affected by bukbok,” he said.

Farmers groups such as Federation of Free Farmers Inc. (FFF) have been urging the DA to impose trade remedy measures to prevent local planters and traders from incurring more losses due to the influx of rice imports.

FFF appealed to Dar to slap antidumping duties on imported rice as rice farmers have lost at least P40 billion due to the 23-percent decline in palay prices.

The group said the entry of at least 1.8 million metric tons (MMT) of rice after the effectivity of Republic Act 11203 has resulted in a supply glut and pulled down farm-gate prices. This forced traders to lower their quotations for local unhusked rice from farmers.

“Many local traders could not unload their stocks from the previous season due to the large volume of imported rice in the market,” FFF National Manager Raul Q. Montemayor said in a statement in August.

“Unless they find a way to free up their inventories, they will either stop buying palay, or they will buy at much lower prices in order to cover for anticipated trading losses. Either way, farmers will end up carrying the bag,” Montemayor added.

He said trade remedies, such as safeguard measures and antidumping duties, will prevent rice planters and even traders from incurring more losses.

“By raising tariffs, imports will become more expensive, thereby providing room for local traders to dispose of their stocks and buy again from farmers at higher prices,” he explained.

https://businessmirror.com.ph/2019/09/04/da-eyes-stringent-nontariff-options-to-limit-rice-imports/

Cambodia’s rice export to China up 54 pct in 1st 8 months

By  Xinhua Net

September 6, 2019

Phnom Penh – Cambodia had exported 132,947 tons of milled rice to China during the first eight months of 2019, a rise of 54 percent over the same period last year, an official report said on Thursday.

China is still the top buyer of Cambodian rice during the January-August period this year, according to the report of the Secretariat of One Window Service for Rice Export.

The export to China accounted for 39 percent of the country’s total rice export, it said.

In full: http://www.xinhuanet.com/english/2019-09/05/c_138366981.htm

© 2019, The Cambodia Daily. All rights reserved No part of this article may be reproduced in print, electronically, broadcast, rewritten or redistributed without written permission

https://www.cambodiadaily.com/business/cambodias-rice-export-to-china-up-54-pct-in-1st-8-months-152902/

From rice to e-commerce - China helping Africa boost self-development

 Sponsored Content  06th Sep 2019 11:05:24 GMT +0300

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Malagasy farmer Georges Ranaivomanana can finally afford enough bricks to build his own house this year thanks to the growing of hybrid rice introduced by Chinese experts.

"After using hybrid rice we no longer know about famine," the 55-year-old said, adding that the local Malagasy seeds yield 2 tons per hectare, while hybrid rice produces a harvest of 8 to 10 tons per hectare.

"If all Malagasies use hybrid rice, Madagascar will be able to export rice," he said.

In May, the China National Hybrid Rice Research and Development Center set up a research center in Madagascar, partnering with the country's agriculture ministry and local companies. The Chinese experts have successfully bred a number of hybrid rice types that suit the local climate with the highest yield of 10.8 tons per hectare.

Ranaivomanana is just one of hundreds of thousands of beneficiaries from the booming cooperation between China and Africa.

It has been a year since Chinese President Xi Jinping proposed eight major initiatives at the 2018 Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) to elevate cooperation between the world's largest developing country and the largest developing continent.

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The eight initiatives cover various fields such as industrial promotion, infrastructure connectivity, trade facilitation, green development, capacity building, healthcare, people-to-people exchanges, and peace and security.

"The eight initiatives promote the integration of China's Belt and Road construction with African development strategies with dozens of tangible programs that really bring benefits to the African people," said Xu Jinghu, the special representative of the Chinese government on African affairs.

WALKING THE TALK

At the FOCAC summit last year, Xi announced a raft of measures to promote China-Africa cooperation. Among them are import of more non-resource products from Africa, increased corporate investment, more direct flights, an environmental cooperation center, an African studies institute, and security programs fighting pirates and terrorists.

Xi has said that a China-Africa economic and trade expo would be held in China, and a number of economic and trade cooperation zones in Africa would be built or upgraded.

The past year witnessed China's commitment to fulfilling those promises.

The first China-Africa Economic and Trade Expo held late June in central China's Changsha City, with an air route with east Africa's big city of Nairobi opened two weeks ahead of the expo.

A total of 84 deals worth 20.8 billion U.S. dollars were reached in trade, agriculture, tourism and other fields during the three-day event, which attracted more than 10,000 guests and traders, including those from 53 African countries.

Nigeria's Jigawa State government signed a bilateral agreement with China's Hunan Province on the sidelines of the expo to boost the state's capacity in rice production.

Gambo Ibrahim Aliyu, permanent secretary of the state's Ministry of Agriculture and Natural Resources, expressed optimism that the partnership would give Jigawa's highly-valued crops more access to the Chinese market, while increasing import of Chinese agricultural technology to the state.

China has been Africa's biggest trading partner for 10 consecutive years, with an accumulated investment of over 110 billion dollars. In 2018, trade volume between China and Africa amounted to 204.2 billion dollars, up 20 percent year on year.

In Ethiopia, people now expect a better business environment and new opportunities with the Chinese-built Dire Dawa Industrial Park almost being complete.

Abdulkerim Yasin, a businessman in Ethiopia's eastern city of Dire Dawa, is hopeful that the commissioning of the industrial park would revive the business environment in the city and its surroundings.

"Presently, I'm much focused on the import sector," Yasin told Xinhua. "Once the industrial park starts operations, I am planning to commit both in the import and export sector(s) by forging partnerships (with) some of the factories that are set to start their production inside the park."

Drawing on China's development experience, Ethiopia will have about 15 industrial parks within years, mostly built by Chinese companies and with Chinese technologies.

According to figures from the Ethiopia Investment Commission, Ethiopia has earned 142 million dollars in exports from Chinese-built industrial parks during the 2018-2019 Ethiopian fiscal year, up 50 percent year-on-year.

COMMON PROSPERITY

In a week, 18-year-old high school graduate Mike Manzi from Rwanda will start his new life at the Alibaba Business College in Hangzhou, East China's Zhejiang Province.

Manzi is one of 30 Rwanda students enrolled in the "International Business Cross-border E-Commerce" class. They will spend four years in Hangzhou, where the e-commerce giant Alibaba is based, studying subjects including the Internet, international trade and cross-border e-commerce.

The project is a key part of the agreement signed last year between the Rwandan government and Alibaba to build the Electronic World Trade Platform that aims to promote small and medium-sized enterprises to participate in cross-border electronic trade.

"It will help me grow in terms of business, ideas and innovations, and I will bring them (back) to Rwandans." said Manzi. "Digital business is a main form of business in the world, which will help Rwandans develop economy and skills."

Chinese experience has offered references and opportunities for Africa's development and prosperity, observers have said.

In Namibia, Basil Karedzera, a clearing and forwarding agent in the city of Walvis Bay who handles vehicles bound for landlocked countries like Botswana and Zambia, said a new Chinese-built port terminal, with a carrying capacity of some 750,000 containers, is going to make business transactions smoother.

"The container terminal with the larger carrying capacity will now ensure that our goods will not immediately be sent to privately owned storage facilities which often charged us an arm and a leg for storage fees," he said.

The new port terminal, constructed by China Harbor Engineering Company, which also features a dedicated cruise liner berth and a marina breakwater, is expected to encourage bigger international tourist liners to bring in tourists in the port city, a move greatly appreciated by the service sector.

Putting infrastructure at the core, the China-proposed Belt and Road Initiative is a new driver of economic development from which Africa stands to benefit, said Richard Todwong, deputy secretary general of Uganda's National Resistance Movement.

Like in many African countries, China has constructed key transport and energy infrastructure projects in Uganda aimed at unlocking the country's economic potential.

"China argues that development should be for everybody. When China is building dams, roads, it is powering the Ugandan economy," Todwong said.

At the FOCAC summit a year ago, Xi said China and Africa have long formed a community with a shared future and will now turn it into a pacesetter for building such a community for humanity.

For Nathan Ankrah, a 24-year-old Ghanaian student who recently participated in a Chinese language competition for foreign college students, China is a big part of his plans.

"The trade between China and Africa is booming and it is a win-win situation," said Ankrah. "I am looking for my 'Chinese opportunity.'"

https://www.standardmedia.co.ke/article/2001340967/from-rice-to-e-commerce-china-helping-africa-boost-self-development

Farmers urged to enlist, join groups for RCEF support

SEP - 5 - 2019

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The Department of Agriculture (DA) urges individual farmers to enlist in the Registry System for Basic Sectors in Agriculture (RSBSA) and join organizations to access agriculture-related programs and services including the Rice Competitiveness Enhancement Fund (RCEF).

Under the Rice Tariffication Law (RA 11203), eligible RCEF beneficiaries include farmers, farmworkers, and their dependents who are listed in the RSBSA –an electronic database containing basic information of farmers and fisherfolks, and members of DA-accredited farmer organizations (FOs) such as multipurpose cooperatives, irrigators’ associations, and people’s organizations. Farmers who are already enlisted in the DA-updated RSBSA will be prioritized this 2019 dry season. Meanwhile, those who have just registered will be included in the seed distribution in the succeeding planting season.

“The program does not only aim to reduce the cost of production and increase farmers’ yields, but it also intends to strengthen FOs through agro-enterprise and collective activities. We are partnering with local government units so they can guide the farmers on RSBSA registration and membership to existing or formation of new FOs,” DA said.

The municipal government of Sta. Ignacia, Tarlac and the Municipal Agriculture and Fishery Council helped farmers in their area complete the requirements in time for the RCEF-seed support to be given by October this year.

“We met with the farmer-leaders of the different organizations and cooperatives in Sta. Ignacia so we can identify strategies on obtaining the documents needed for the FO accreditation and thoroughly update the municipal’s RSBSA master list. We hope that every eligible farmer in our locality will receive support so we can simultaneously progress,” James Ocampo, Sta. Ignacia MAFC chairperson said. 

To register in the RSBSA, individuals must be 18 years old at the time of registration, a Filipino citizen, and must be a farmer, farm laborer/worker. They must also fill up the RSBSA form which can be acquired through their city or municipal agriculture office or online through the DA website.

Aside from the form, registrants must also present one original and photocopy of any valid identification cards such as SSS/GSIS UMID card, postal ID, TIN card, passport, PRC ID, OWWA/iDOLE card, voter’s ID or certification from the election officer with dry seal, PNP firearms license, senior citizen ID, or valid school ID for students.

For registrants without valid ID, a duly signed barangay certification containing his/her permanent residence may be secured. They must also present proof of farming activity such as evidence of land ownership (land title/ certificate of land ownership/ deed of donation/ lease of agreement), municipal/city/ barangay business permit, or geo-tagged photos of their farm, if possible.

Ocampo affirmed that these requirements are means to ensure that the right people will benefit from the program.

“Getting enlisted in the RSBSA and accredited by the DA would mean that the recipients of the program are legitimate farmers. We can avoid [political] entities from interfering in RCEF, and we can be sure that there is equal distribution of the resources,” he said.

He also added that the accreditation provides easy access for the farmers and their groups to become partners of the department in its agriculture-related initiatives. This, according to Ocampo, brings confidence to the farmers that they will not be left out.

Created through RA 11203, RCEF is a new government program, which aims to help farmers through the P10B-fund covering seed, machine, credit, and extension support to improve the competitiveness of the Filipino rice farmers.

For more information about the processes, please call or text the Farmers’ Contact Center at 0920-946-2474.

https://www.philrice.gov.ph/farmers-urged-to-enlist-join-groups-for-rcef-support/

China's hybrid rice sows hope for Africa

By 

Xinhua

September 06, 2019

Luo Haoping, the manager of Chinese run Hubei-Gaza Friendship Farm, and a local worker check rice in the paddy field on the suburbs of Xaixai, capital city of the southern province of Gaza, Mozambique, April 17, 2010. / Xinhua

China is betting on its successful hybrid rice varieties to curb the perennial food shortage in Africa. 

"We're no longer suffering from hunger," 55-year-old Georges Ranaivomanana, a Madagascan farmer who took the lead in planting Chinese hybrid-rice in his town of Mahitsy told Xinhua. Georges told Xinhua that he hoped that all his compatriots would use the seeds to raise their living standards and that his country might even be able to export rice someday.

China has been helping African countries develop productive and resilient rice farming for years with its hybrid rice. For farmers on the continent like Ranaivomanana, they are "very grateful" to the Chinese as the hybrid rice is the key to better food security and higher incomes.

With a humid tropical climate, abundant sunshine and rich water resources, Madagascar has a long tradition of rice cultivation and consumption.

However, due to insufficient financial resources and outdated agricultural techniques, the low yield of local rice has long troubled the island country. The government has to import hundreds of thousands of tons of rice a year, but it's still not enough to lift its people out of the threat of famine.

In 2010, a team of Chinese experts came to Madagascar. With their assistance, a hybrid crop variety planted produced a harvest of 10.8 tons per hectare this year, far exceeding the yield of local rice.

In May, the China National Hybrid Rice Research and Development Center opened a research center in Madagascar to select hybrid rice varieties based on the island nation's diverse ecological environment, in a bid to find more productive crops for a continent long troubled by insufficient grain output.

In the northwestern Nigerian state of Kebbi, Chinese expert Wang Xuemin stood in a rice paddy, surrounded by green rice plants. "This year, we are using a new spraying technology," he said, adding that it "can significantly reduce labor and other costs." "The land, climate and rice farming methods in Nigeria are very different from those in China. We had a lot of problems at the beginning," said the 51-year-old who has been in Nigeria for 16 years.

In 2006, after Wang and his colleagues had sown the seeds, their field management techniques and large-scale farming equipment could not adapt to the operating environment, and hundreds of hectares of rice fields were almost completely encroached by weeds. "We came to realize that blindly copying the Chinese model is not feasible. It is necessary to constantly innovate our techniques to fit the local situation in Africa," he said.

After more than ten years of research and innovation, the Nigerian farm now becomes a major training and mechanized production center in the country, training more than 1,000 farmers and agricultural machinery management staff.

Located in the Xai-Xai district of the southern Mozambican province of Gaza, the Wanbao Mozambique rice farm, invested by the China-Africa Development Fund, is China's largest project of its kind in Africa. With vast arable land, a favorable climate, abundant water resources and support from China, this project plans to cover 20,000 hectares.

In Kenya and Angola, hybrid rice seeds have been or are to be sowed, helping farmers achieve higher production and higher incomes. Farmers in other countries such as Sierra Leone, Zambia and Zimbabwe are also eagerly awaiting the arrival of the seeds that would bring hope and prosperity.

In June, Yuan Longping, a globally renowned Chinese scientist who is known as the "father of hybrid rice," sent a video message to a China-Africa seminar on rice development as part of the first China-Africa Economic and Trade Expo held in Changsha, capital of central China's Hunan Province.

"It's my great pleasure to help other developing countries develop hybrid rice to solve, to overcome their food shortage problems," he said. "I am confident that through our joint efforts the purpose will be realized in the near future."

Xinhua

India needs new markets for rice exports, says industry

Shaukat Mohammed | TNN | Sep 5, 2019, 16:14 IST

With China emerging as an export giant and countries like Pakistan, Thailand and Vietnam hampering the market for Indian rice in Asia & Africa, countries like Egypt, China, Mexico, Malaysia, Indonesia and the Philippines could be potential new markets for Indian rice exports, according to a market update by Cogoport, an online logistics marketplace.

VIJAYWADA: With China emerging as an export giant and countries like Pakistan, Thailand and Vietnam hampering the market for Indian rice in Asia & Africa, countries like Egypt, China, Mexico, Malaysia, Indonesia and the Philippines could be potential new markets for Indian rice exports, according to a market update by Cogoport, an online logistics marketplace.

Before other countries extend their market share, there is merit in establishing trade relationships, the update, released on Thursday, said.

According to the update, global rice production is expected to see a decline, as smaller crops are expected in the United States, North Korea, and Thailand. India is expected to see a drop in non-basmati rice exports from India in 2019 while Basmati rice exports from India is expected to grow but at a slower rate in 2019.

Nikhil Singh, CEO of Rajputana rice, which ships 100 containers of rice monthly to west Africa and also a Cogoport customer, said, “Rice exports can be challenging. Exporters face liquidity issues as payment can take months to come and competition from high quality and cheaper Pakistani and Thai rice is increasing.”

Vishal Agrawal, CEO of Saya Overseas who ships rice to African and Gulf countries adds: “We used to ship 60-70 containers monthly. Now because of the challenges, we’re moving about 40 to 50. The economy is slowing down and there is tough competition from other countries. Pakistan, Thailand and Vietnam are offering better rates. There are losses because of defaulters in this industry. Competition among rice exporters is also increasing. Every other manufacturer is now becoming an exporter and while manufacturing exporters get the benefit of subvention scheme, mill exporters do not.”
In light of the challenging times for the rice industry ahead, Kunal Rathod, co-founder and head of growth, Cogoport said, "Indian exporters face stiffer competition now as China turns into a low-cost rice exporter while higher tariffs on non-basmati rice threatens India’s chances to export to Bangladesh. Indian rice exporters need to look for potential new markets such as Mexico which is relying less on supplies from the US."

"Countries like Egypt where availability of affordable Asian rice can fill tight domestic supply gaps could also be potential new markets whereas countries like China, Malaysia, Indonesia and the Philippines continue to be major rice importers and can be targeted, " he added.
Rakesh Kumar Singh, vice president of the Rice Exporters Association - an industry veteran with 45 years of experience in the rice trade - too had some advice for exporters in the industry. “We remain a strong player in rice exports to west Africa. We should now be targeting new markets like China, Malaysia and the Philippines. To avoid payment challenges, exporters should take an advance of 10-20% and the balance on fax or through the bank. If you have some money upfront, the buyer will not default," he said.
Cogoport launched its digital freight marketplace in 2017, transforming the way customers book their cargo shipments, a company release said. Cogoport claims to have 27,000 registered users.