USA Rice Carves Out a Niche in Korea with New Products
SEOUL, KOREA -- In
the latest of a slew of new food and snack products that use U.S.-grown rice is
a new convenience package of "Army Stew," a Korean-style spicy soup
containing kimchi, sausage, ham, rice cakes, and ramen noodles. The rice
cakes are produced using rice flour originating from U.S. rice. Many
snacks and food items containing rice flour have emerged on the market here
within the last year.
Two years ago, when Korea first implemented tariffication, whereby the purchase of rice for table use was no longer guaranteed by Korea's World Trade Organization (WTO) commitments, USA Rice began discussions and held technical meetings with the rice flour users and rice flour processors here to gain more interest in U.S. rice as a processed food ingredient.
The overall strategy consisted of: 1) reminding rice product manufacturers and foodservice that U.S. rice is high in quality, reliable, and appealing to their customers through menu presentation seminars; 2) encouraging and supporting the launch of new U.S rice menus; and 3) building an appreciation for U.S. rice among Korean food media and consumers via traditional consumer promotions.
USA Rice kicked off the food ingredient promotion with a rice cake project that encouraged rice flour processors to test U.S. medium grain rice for their operations and ultimately change the origin of their rice flour products to the U.S. from either domestic or Chinese rice.
Steadily, many food manufacturers have launched new U.S. rice-based food products and some changed rice flour sources to use U.S. rice.
"According to noodle product manufacturers, Korean customers prefer the chewy texture of noodles and rice flour made with U.S. rice," said Hugh Maginnis, vice president of international for USA Rice. "So our efforts are paying dividends and we are poised to potentially grow our presence here - something that remained unclear when the government announced plans to move to tarrification."
Two years ago, when Korea first implemented tariffication, whereby the purchase of rice for table use was no longer guaranteed by Korea's World Trade Organization (WTO) commitments, USA Rice began discussions and held technical meetings with the rice flour users and rice flour processors here to gain more interest in U.S. rice as a processed food ingredient.
The overall strategy consisted of: 1) reminding rice product manufacturers and foodservice that U.S. rice is high in quality, reliable, and appealing to their customers through menu presentation seminars; 2) encouraging and supporting the launch of new U.S rice menus; and 3) building an appreciation for U.S. rice among Korean food media and consumers via traditional consumer promotions.
USA Rice kicked off the food ingredient promotion with a rice cake project that encouraged rice flour processors to test U.S. medium grain rice for their operations and ultimately change the origin of their rice flour products to the U.S. from either domestic or Chinese rice.
Steadily, many food manufacturers have launched new U.S. rice-based food products and some changed rice flour sources to use U.S. rice.
"According to noodle product manufacturers, Korean customers prefer the chewy texture of noodles and rice flour made with U.S. rice," said Hugh Maginnis, vice president of international for USA Rice. "So our efforts are paying dividends and we are poised to potentially grow our presence here - something that remained unclear when the government announced plans to move to tarrification."
http://www.rappler.com/newsbreak/inside-track/167517-jun-evasco-bong-go-meeting-nfa-issue
BSP sees end of rice QRs helping
ease inflation
Posted on April 21, 2017
THE GOVERNMENT must find a way to
support local farmers to cushion the blow from the influx of cheap rice, the
Bangko Sentral ng Pilipinas (BSP) said as it backed the lifting of rice import
restrictions by July.
A worker climbs stacks of rice at
a warehouse of the National Food Authority in Manila in this May 12, 2016
photo. -- Reuters
“The Monetary Board noted that
the removal of quantitative restrictions on rice importation will have
beneficial effects on inflation. Enhancing economic efficiencies in the rice
supply chain would translate to rice affordability for consumers, including
farmers,” read the highlights of the BSP’s latest policy review which was
published yesterday.
The officials were referring to the quantitative restrictions (QR) on rice imports, a preferential trade deal secured by the Philippines since 1995 that seeks to guard local farmers from cheaper supply from abroad. The latest extension will lapse by end-June.
The Monetary Board kept interest rates unchanged during its March 23 meeting, with inflation seen to remain manageable over the coming year despite a faster climb in prices observed during the past few months.
The BSP’s decision came a week after a fresh 25-basis-point increase was announced by the Federal Reserve, a move widely expected by the markets.
Inflation has averaged 3.2% during the first three months of 2017, still within the central bank’s 2-4% target band even as price increases have been on an uptrend since November last year. Consumer prices rose by 3.4% in March, the fastest pace in over two years, according to the Philippine Statistics Authority.
BSP Deputy Governor Diwa C. Guinigundo said last month that rice, the country’s staple grain, accounts for nearly a 10th of the consumer basket used to track price movements.
Once the QR scheme is lifted, individuals and businesses can import rice but will pay a 35% tariff. This is against the current practice where the National Food Authority (NFA) limits the volume of rice imports every year and imposes higher tariffs on amounts that go beyond the minimum volume set by officials, done to prevent the influx of cheap rice and shield local farmers.
Rice imports have become a sensitive issue among state officials, resulting to a reported rift between Agriculture Secretary Emmanuel F. Piñol and Cabinet Secretary and NFA Council head Leoncio B. Evasco, Jr. over conflicting policies.
The BSP officials said the national government must ensure that it provides some relief to local farmers who could suffer from the influx of cheaper rice from abroad.
“[T]he negative impact on the country’s agriculture sector of the possible influx of cheaper rice imports should be compensated by a comprehensive government support package that will boost agricultural productivity and increase the competitiveness of the sector,” the report read.
Mr. Guinigundo earlier said that import tariffs collected by government should be “funneled back” to the agriculture sector by way of irrigation and farm-to-market roads that would help boost productivity, among others.
The central bank expects inflation to continue rising and peak within the third quarter, with the full-year average likely to settle at 3.4%. Inflation is likely to trend higher for the months ahead, with the BSP citing possible increases in power rates and transportation fares, as well as the “transitory” impact of the tax reform program pending in Congress.
Upbeat domestic activity is also expected to be sustained over the near term, allowing the BSP to hold fire on interest rate adjustments as the local economy would not need a fresh stimulus.
The Philippine economy expanded by an upwardly-revised 6.9% in 2016. Growth is expected to hit the government’s 6.5-7.5% goal this year, with Socioeconomic Planning Secretary Ernesto M. Pernia saying that the economy likely expanded by “around 7%” during the first quarter.
“Latest indicators of domestic demand continue to broadly point to firm growth prospects over the policy horizon,” the BSP added, noting strong figures reported for factory output, car sales, and public spending.
Business optimism was also steady during the quarter, supporting overall growth prospects.
The BSP will hold its next policy meeting on May 11, which will again come a week after the Fed’s two-day review.
Economists expect as much as two rate hikes from the BSP this year, which comes at a time of a change in the central bank chief as Governor Amando M. Tetangco, Jr. completes his second and final term by July 2. President Rodrigo R. Duterte has yet to name Mr. Tetangco’s successor
The officials were referring to the quantitative restrictions (QR) on rice imports, a preferential trade deal secured by the Philippines since 1995 that seeks to guard local farmers from cheaper supply from abroad. The latest extension will lapse by end-June.
The Monetary Board kept interest rates unchanged during its March 23 meeting, with inflation seen to remain manageable over the coming year despite a faster climb in prices observed during the past few months.
The BSP’s decision came a week after a fresh 25-basis-point increase was announced by the Federal Reserve, a move widely expected by the markets.
Inflation has averaged 3.2% during the first three months of 2017, still within the central bank’s 2-4% target band even as price increases have been on an uptrend since November last year. Consumer prices rose by 3.4% in March, the fastest pace in over two years, according to the Philippine Statistics Authority.
BSP Deputy Governor Diwa C. Guinigundo said last month that rice, the country’s staple grain, accounts for nearly a 10th of the consumer basket used to track price movements.
Once the QR scheme is lifted, individuals and businesses can import rice but will pay a 35% tariff. This is against the current practice where the National Food Authority (NFA) limits the volume of rice imports every year and imposes higher tariffs on amounts that go beyond the minimum volume set by officials, done to prevent the influx of cheap rice and shield local farmers.
Rice imports have become a sensitive issue among state officials, resulting to a reported rift between Agriculture Secretary Emmanuel F. Piñol and Cabinet Secretary and NFA Council head Leoncio B. Evasco, Jr. over conflicting policies.
The BSP officials said the national government must ensure that it provides some relief to local farmers who could suffer from the influx of cheaper rice from abroad.
“[T]he negative impact on the country’s agriculture sector of the possible influx of cheaper rice imports should be compensated by a comprehensive government support package that will boost agricultural productivity and increase the competitiveness of the sector,” the report read.
Mr. Guinigundo earlier said that import tariffs collected by government should be “funneled back” to the agriculture sector by way of irrigation and farm-to-market roads that would help boost productivity, among others.
The central bank expects inflation to continue rising and peak within the third quarter, with the full-year average likely to settle at 3.4%. Inflation is likely to trend higher for the months ahead, with the BSP citing possible increases in power rates and transportation fares, as well as the “transitory” impact of the tax reform program pending in Congress.
Upbeat domestic activity is also expected to be sustained over the near term, allowing the BSP to hold fire on interest rate adjustments as the local economy would not need a fresh stimulus.
The Philippine economy expanded by an upwardly-revised 6.9% in 2016. Growth is expected to hit the government’s 6.5-7.5% goal this year, with Socioeconomic Planning Secretary Ernesto M. Pernia saying that the economy likely expanded by “around 7%” during the first quarter.
“Latest indicators of domestic demand continue to broadly point to firm growth prospects over the policy horizon,” the BSP added, noting strong figures reported for factory output, car sales, and public spending.
Business optimism was also steady during the quarter, supporting overall growth prospects.
The BSP will hold its next policy meeting on May 11, which will again come a week after the Fed’s two-day review.
Economists expect as much as two rate hikes from the BSP this year, which comes at a time of a change in the central bank chief as Governor Amando M. Tetangco, Jr. completes his second and final term by July 2. President Rodrigo R. Duterte has yet to name Mr. Tetangco’s successor
http://www.bworldonline.com/content.php?section=Economy&title=bsp-sees-end-of-rice-qrs-helping-ease-inflation&id=144042
Villanueva:
Unli-rice pa more?
Thursday,
April 20, 2017 By JP VILLANUEVA EKONOMISTA PRESIDENT Duterte
ordered the
suspension of rice importation in early April supposedly to protect the
country’s farmers
. This
announcement was made during his visit to farmers in Nueva Ecija where he
instructed Secretary
Manny Piñol to do the necessary. Rice is a
staple food for Filipinos around the world. It is so
integrated in
our culture, history and of course, diet that our country is even host to the
International Rice Research Institute (IRRI)
since 1959. Being host to IRRI brought so much
pride to our
country then because of leadership in rice science and research. The
Philippines
recorded net
imports of rice for the longest time. This practice was considered by Filipinos
as
embarrassing.
This year, the quantitative restriction (QR) which is essentially an import
quota
on rice will
already expire. The QR limits the volume of rice that can be imported by the
Philippines
annually. Any kind of restriction of trade like tariffs and quotas are
protectionist
measures.
In this case,
QR is intended to protect local rice farmers from cheaper imported rice. In a
recent
report of the
Philippine Institute of Development Studies (PIDS), it was found out that rice
that is
produced abroad are cheaper than those which are produced domestically. This
difference
is attributed
to the lower cost of palay production in other countries than here in the
Philippines.
One reason for this cost difference is
geography. The countries that are exporting rice have wide
flat plains
watered by large river systems which makes it more suitable for agriculture.
Countries
like India
which has the Ganges River, Thailand which has Chao Phraya, and Vietnam which
has Mekong
River. Meanwhile, the Philippines is an
archipelago, surrounded by oceans which cannot be used for
watering agricultural crops. As a result, the
cost particularly in irrigation goes up before enough
rice is
produced to address the domestic demand. Another reason that makes the cost of
rice
production
here is that there is a collusion within the supply chain, thus creating a rice
cartel
dictating
essentially higher prices. Inasmuch as we really would like to be self-sufficient
especially
in rice production, it is not something that
is desirable nor practical for the Philippines,
according to the Foundation for Economic
Freedom (FEF). FEF suggested is forging a rice
security pact
with our fellow Asean members to guarantee rice supply in case of a shortage.
This is an
alternative to the President’s call to disallow importation by both private
importers and the National Food Authority. However, the PIDS policy report provided
two options. The first one was to extend the QR for two more years. This is to
give enough time for our rice farmers to become more competitive. At this point
in time, there are subsidies that have increased in amount intended to support
farmers, particularly for the National Irrigation Administration (NIA). The
Department of Agriculture is also undertaking necessary programs for the
agricultural sector, including rice production. These are indications that
there is sufficient production support for rice and other agricultural
products. Why two years? It is because the effect of these policies and
programs are not immediate. We may have to wait for a few years before the full
effect of the policy changes are felt. We may experience severe shortage of
rice if we cut importation immediately without assurance that the rice supply
can address
the domestic
demand. Another option presented by the PIDS is imposition of tariffs.
Tariffs are taxes imposed on imported
products. The tariffs collected on the importation
of rice should be earmarked to become safety
nets for rice farmers, especially to mitigate
the adverse effects of the increase in imports
like much lower domestic price. Without the QR,
importation of
cheaper rice will increase thereby pushing the price of rice further down.
This will
benefit the consumers but will negatively affect the farmers, that’s why there
are
safety nets
installed. This is to basically compensate the farmers’ loss of income.
Bottomline
is, despite the seemingly high supply of rice,
we are still bound to import rice because the
domestic
supply cannot suffice the domestic demand. Disallowing importation altogether
may
result to
problems in supply within the country. In the end, we will still import rice
and
some people
who ordered the stop of importation to take their word back because they did
not
think about it
before giving impossible promises to the hopeful farmers.
http://www.sunstar.com.ph/baguio/opinion/2017/04/20/villanueva-unli-rice-pa-more-537509
China yet to
give okay to eight rice traders
China has yet to respond to a
request made by the Ministry of Agriculture to add another eight local rice
traders to the list of 26 that have passed quality control tests to export rice
to the Chinese mainland.Eight local rice traders are still waiting to be
evaluated by China’s General Administration of Quality Supervision, Inspection
and Quarantine [AQSIQ] despite two requests made directly to Beijing by the
Ministry,” said Hean Vanhan, director-general of the general directorate of
agriculture in the Ministry of Agriculture.Mr. Vanhan told Khmer Times that
AQSIQ was probably delaying the evaluation because the eight traders did not
have their own rice mills.
“From our perspective we want more traders to export rice to China so that our rice exports are boosted,” he added.Mr. Vanhan said the eight rice traders have been advised to sign contracts with the 26 other traders that have rice mills, so that they can qualify to export to China.AQSIQ is a ministerial-level department under the State Council of China that is in charge of national quality, entry-exit commodity inspection, entry-exit health quarantine, entry-exit animal and plant quarantine, import-export food safety, certification and accreditation, standardization, as well as administrative law enforcement.Last December, China asked Cambodia to evaluate its rice exporters to determine whether they adhered to the hygiene laws in China, because officials in the world’s second largest economy did not trust all of the 71 rice exporters registered with the Ministry of Commerce.
“All of the rice millers they
have checked are of high enough quality to meet their requirement. Therefore
only those rice millers are allowed to export rice to China,” Mr. Vanhan said.China
is one of Cambodia’s big markets for milled rice. In September, Chinese
Premier Li Keqiang in a meeting with Prime Minister Hun Sen at the sidelines of
the Asean Summit in Laos, pledged to double China’s annual purchase of 100,000
metric tons of Cambodian rice to 200,000 metric tons, starting this year. China
also pledged a loan of $300 million to Cambodia’s rice millers for building
warehouses with drying facilities. China also gave assurances that it will
grant greater access for Cambodia’s agricultural products to enter its markets.
Song Saran, president and CEO of
AMRU Rice (Cambodia), said on Facebook that he welcomed the ministry’s move to
push for larger rice exports to China.However he expressed concern that rice
traders who did not have their own mills wanted to piggy-back on those traders
who already passed AQSIQ quality tests.“The Ministry of Agriculture will have a
headache if this keeps happening,” he said.China is the biggest single-country
market for Cambodia’s milled rice, and imported about 67,000 metric tons in the
first quarter.
http://www.khmertimeskh.com/news/37632/china-yet-to-give-okay-to-eight-rice-traders/
Import more rice...
By Dahli Aspillera
April 21, 2017
MAY 1982. “The US Justice
Department is investigating allegations that rice exporting firms bribed
officials of the South Korean government in order to sell large quantities of
rice at above market prices in 1981 and 1982... causing as much as $10 million in
overcharges for South Korea and excess profits for the exporters.”
This is history--1982. But if it’s lucrative, and it could still be going on. We read that charges were made in a lawsuit filed by California rice farmers who brought a court case against PIRMI and AGROPROM, multinational rice dealers.
These multinational rice exporters were accused in 1982 by California rice farmers of bribing the South Korean Office of Supply [the equivalent of our NFA?] “for the favor exporting rice to South Korea, and/or to subsidize future rice sales to South Korea. South Korea is the fourth largest export market for US agricultural goods,” the article tells us.
Named in the suit against the South Korean NFA, which arranges all government imports, was Kim Joo Ho, administrator and CEO of the country’s Office of Supply. South Korean government mandates that all imported food-grains be sold at subsidized prices, which is why staple food is cheap in South Korea.
In the US Congress, the Agriculture Committee has a Cotton, Rice and Sugar Subcommittee. To this subcommittee, Atty. Joseph Alioto, ex-mayor of San Francisco, explained the suspicions of his clients, the rice farmers:
“In October 1981, Korean Office of Supply disclosed that it had purchased 40,000 metric tons of brown rice at $449.90 per metric ton, a price which was $100 per metric ton over the prevailing market price.
“The curious explanation given for the over market price was that the shipment was against an old contract which the supplier had failed to complete during the original delivery period and which, moreover, had been reported to the US Department of Agriculture as having been cancelled... It is a singular event, indeed, when a buyer rewards a seller with millions of dollars for failing to perform on his original obligation.”
Alioto continued, “It appeared that the people of Korea had paid about $4 Million more than was necessary on a purchase of rice... they didn’t want or need.... [South Korean Office of Supply] recently made two more purchases of rice... which will cost the people of Korea at least an extra $6 Million.”
All those 1982 Korean rice importations, “which people didn’t want or need....” Were bribes again involved? How are the bribes received? How efficiently alert of the US Department of Justice get to know of a very secret deal between the South Korean agency for importing rice and the bribing rice dealers. What kind of a bribe is involved for the cost of one shipload of rice or corn? A brand new Mercedes Benz? A solid gold Rolex watch? Deposits in a specific bank account? The people don’t know, and can only guess.
No wonder rice execs avoid buying from subsistence rice farmers of Bulacan, Pampanga. Subsistence farmers would not even think to send as gratitude a bilao of bibingka or a buko pie to the CEO of the Office of Rice Importer.
***
Dahliaspillera@yahoo.com
This is history--1982. But if it’s lucrative, and it could still be going on. We read that charges were made in a lawsuit filed by California rice farmers who brought a court case against PIRMI and AGROPROM, multinational rice dealers.
These multinational rice exporters were accused in 1982 by California rice farmers of bribing the South Korean Office of Supply [the equivalent of our NFA?] “for the favor exporting rice to South Korea, and/or to subsidize future rice sales to South Korea. South Korea is the fourth largest export market for US agricultural goods,” the article tells us.
Named in the suit against the South Korean NFA, which arranges all government imports, was Kim Joo Ho, administrator and CEO of the country’s Office of Supply. South Korean government mandates that all imported food-grains be sold at subsidized prices, which is why staple food is cheap in South Korea.
In the US Congress, the Agriculture Committee has a Cotton, Rice and Sugar Subcommittee. To this subcommittee, Atty. Joseph Alioto, ex-mayor of San Francisco, explained the suspicions of his clients, the rice farmers:
“In October 1981, Korean Office of Supply disclosed that it had purchased 40,000 metric tons of brown rice at $449.90 per metric ton, a price which was $100 per metric ton over the prevailing market price.
“The curious explanation given for the over market price was that the shipment was against an old contract which the supplier had failed to complete during the original delivery period and which, moreover, had been reported to the US Department of Agriculture as having been cancelled... It is a singular event, indeed, when a buyer rewards a seller with millions of dollars for failing to perform on his original obligation.”
Alioto continued, “It appeared that the people of Korea had paid about $4 Million more than was necessary on a purchase of rice... they didn’t want or need.... [South Korean Office of Supply] recently made two more purchases of rice... which will cost the people of Korea at least an extra $6 Million.”
All those 1982 Korean rice importations, “which people didn’t want or need....” Were bribes again involved? How are the bribes received? How efficiently alert of the US Department of Justice get to know of a very secret deal between the South Korean agency for importing rice and the bribing rice dealers. What kind of a bribe is involved for the cost of one shipload of rice or corn? A brand new Mercedes Benz? A solid gold Rolex watch? Deposits in a specific bank account? The people don’t know, and can only guess.
No wonder rice execs avoid buying from subsistence rice farmers of Bulacan, Pampanga. Subsistence farmers would not even think to send as gratitude a bilao of bibingka or a buko pie to the CEO of the Office of Rice Importer.
***
Dahliaspillera@yahoo.com
http://www.malaya.com.ph/business-news/business/wind-farm-generates-power-jobs-tourists
Basmati sowing
likely to go up 25% in FY18 on high demand, normal monsoon
The industry expects Iran to purchase at least
1 million tonnes this financial year
IMD's monsoon 2017 forecast today: Agriculture less dependent on
rainfallBasmati exporters' scrips rise on high shipment, price outlookKeeping
fingers crossed, as IMD's 'normal' monsoon forecast is not finalIMD's monsoon
forecast: Too early for markets to run into rough weatherIMD's normal monsoon
forecast lifts business sentiment
Sowing area under basmati paddy is likely to increase by 25 per
cent in 2017 on the back of favourable climatic conditions and forecast of
normal rainfall this monsoon season.
The Indian Meteorological Department (IMD) on Tuesday forecasted
normal rainfall this monsoon at 96 per cent of long period average (LPA) with 5
per cent of plus and minus error.
Late beginning of rainfall coupled with dry spells in some parts
of major growing regions resulted into less acreage under basmati paddy last
year.
Rating agency Icra estimates the area under basmati paddy at 1.6
million hectares for the financial year 2016-17, around 20 per cent decline
from the level of 2.1 million hectares in the previous year.
“This year, the area under basmati paddy, however, is estimated to
rise at least to the level of 2015-16. There are two major factors which would
help farmers to bring in the additional area under basmati this year –
favourable monsoon and sharp increase in realisation from basmati rice this
year,” said Gurnam Arora, joint managing director, Kohinoor Foods, producer of
Kohinoor brand basmati rice. "We are confident that basmati rice
production and export would also proportionately go up."
Following a sharp decline in acreage, India’s basmati rice output
is estimated to have declined by over 18 per cent to 8 million tonnes for
2016-17 compared to 9.8 million tonnes in the previous year.
Basmati rice constitutes a small portion of the total rice
produced in India. The second advanced estimate of the Ministry of Agriculture
estimates India’s total rice output to hit the new record at 108.86 million
tonnes for the year 2016-17 compared to the final output of 104.41 million
tonnes for 2015-16.
While Kharif season contributes nearly 88 per cent of India’s
overall output, rabi season shares the rest.
Basmati rice has witnessed growing demand from the domestic market
for past few years. The international demand, though has remained weak for the
last two years, it is expected to witness some uptick from this year onwards on
Iran, the largest importer, coming back on procurement from India again.
Basmati rice exports to Iran have started since January–March quarter. The
industry expects Iran to purchase at least 1 million tonnes this financial
year.
“The Chinese government has identified 14 Indian firms to export
basmati rice to that country. Despite the taste being different for consumers,
there has been a growing appetite for Indian basmati rice in China. We expect
direct export to China to begin very shortly. Currently, India exports a small
quantity of basmati rice to China indirectly through Hong Kong,” said Rajan
Sundareshan, executive director of All India Rice Exporters’ Association
.
This year, prices of basmati rice have jumped by 50 per cent on
the shortage of supply resulting into a proportionate jump in farmers’ income.
So, farmers would be encouraged to bring in more area to fetch better
realisation this year.
The basmati rice industry has witnessed moderation over the last
few years on the back of subdued international demand, partly attributable to
the delay in resumption of imports by Iran. However, FY17 has seen some
stabilisation in demand.
“The industry performance in the current financial year has been
encouraging as the growth is supported by an increase in volumetric sales, even
while prices have remained under pressure. Going forward, FY18 is expected to
witness better revenue growth supported by an increase in average realisations,
as paddy prices firm up during the current procurement season,” said Deepak
Jotwani, assistant vice-president, Icra. "Moreover, resumption of imports
by Iran will also be crucial for driving industry growth in the next financial
year."
After declining considerably during the procurement season in
FY16, Basmati paddy prices have firmed up by 20-25 per cent across various
varieties, primarily due to relatively lower production, in the recent
procurement season (October–December 2016). This is likely to push up basmati
rice prices in the next financial year.
Overall, the export volume in FY17 is estimated to be around 4
million tonnes (almost similar to the volumes in FY16). However, muted average
realisations are expected to keep the value of these exports under Rs 21,000
crore, against Rs 22,718 crore in FY16
http://www.business-standard.com/article/markets/basmati-sowing-likely-to-go-up-25-in-fy18-on-high-demand-normal-monsoon-117042000261_1.html
Asia Rice-Prices up in Thailand on thin supply, India on firm rupee
By Patpicha Tanakasempipat,
Rajendra Jadhav and My Pham
BANGKOK/MUMBAI,HANOI, April 20
Rice prices in Thailand rose on thin supply and Indian rates climbed on
stronger rupee, while trade in Vietnam remained sluggish, traders said on Thursday.Thai
benchmark 5-percent broken rice RI-THBKN5-P1 rose this week to $360-$375 a
tonne, free-on-board (FOB) Bangkok, from $350-$365 a tonne last week."There
is less supply of new rice as we are expecting off-season crops to
arrive," a trader in Bangkok said.The hike in prices occurred as the Thai
government encouraged rice millers to buy the grain in a bid to prevent an
oversupply when new crops are harvested, another Bangkok-based trader said.Thailand
has exported over 3.48 million tonnes of rice so far this year until April 18,
up 6.4 percent from the year-ago period, the commerce ministry said on
Thursday.
The amount it received through
exports was more than 51 billion baht ($1.49 billion), the ministry added.The
ministry announced on Wednesday that Thailand has sold 1.62 million tonnes of
rice from state stockpiles for industrial use from a March auction at $231
million.It also plans to sell 1.03 million more tonnes of spoiled and
sub-standard rice in a state auction on April 28.Ever since the military took
over power in a 2014 coup, the government offloaded over 12 million tonnes of
rice, which were accumulated under a previous civilian government's rice
subsidy scheme.At present, this leaves behind about 5 million tonnes in state
stockpiles, with 1.72 million tonnes fit for human consumption.
The government said it may clear
the stocks by 2017.In India, 5-percent broken parboiled rice RI-INBKN5-P1 rose
by $2 to $384-$389 a tonne this week, as paddy prices and rupee gained
strength."Local paddy prices are firm. Rupee is also strengthening. This
is making Indian rice expensive for overseas buyers," said an exporter
based at Kakinada in the southern state of Andhra Pradesh.So far, the rupee has
risen 5.2 percent this year, and is trading near its highest level in 20
months. A strong rupee trims returns of exporters."African buyers are
shifting to Vietnam and Thailand due to higher prices in India. We are losing
market share," said another exporter based at Kakinada.India, the world's
biggest rice exporter, mainly exports non-basmati rice to African countries and
premier basmati rice to the Middle East.
In Vietnam, the market maintained
a quiet momentum amid low competitive prices, which fall between prices of new
and old Thai grain.Prices of the 5-percent broken rice RI-VNBKN5-P1 remained
stable at $350-$355 a tonne, FOB Saigon."Customers who focus more on
prices will choose old Thai rice as it is cheaper, while buyers who look for
quality will choose new Thai rice as it is just a bit higher than Vietnamese
rice but of better quality," said a Ho Chi Minh-based trader.Traders
expect Vietnam's rice export to be lower this month compared with the same
period a year earlier.Thailand and Vietnam are the world's second- and
third-biggest rice exporters. (Reporting by Patpicha Tanakasempipat in BANGKOK,
Rajendra Jadhav in MUMBAI, and My Pham in HANOI; Editing by Sherry
Jacob-Phillips)
http://in.reuters.com/article/asia-rice-idINL3N1HS3MD
Focus buying rice aggressively nfa
told
The time has
come for the government to buy palay aggressively as farm gate prices have
receded to P17 a kilo, which is within the National Food Authority’s support
price, according to the Samahang Industriya ng Agrikultura (Sinag).
The umbrella
group of farmers and agri-business operators said this should be the priority
of the NFA instead of the proposed inspection of warehouses to check on
possible hoarding activities.
Sinag was
reacting to the statement of Agriculture Secretary Emmanuel Piñol, who said he
would submit to President Duterte a proposal to create an interagency task
group that would investigate on traders who might be taking steps to create an
artificial shortage of rice. “Fresh palay is now fetching P17 a kilo,” Sinag
chair Rosendo So said. “NFA has to procure to ensure that farmers get a good
price, even at the peak of the harvest season.”So said the threat to raid rice
warehouses might have a negative effect as legitimate rice traders and millers
were now having second thoughts on buying palay as they might be “charged” of
hoarding rice.
“Traders are
being scared off with raids on legitimate traders and millers,” So said. “This
will result in the further drop in prices to the disadvantage of farmers.”
The Sinag
chair said the proposal needed more explanation, especially on its parameters.“Who
will conduct the raids? What is the system for taking inventory? What defines
storing as opposed to hoarding?”“We’re afraid this would end up in selective
inspection to favor a certain group of rice traders,” So added. —RONNEL
W. DOMINGO
https://business.inquirer.net/227997/focus-buying-rice-aggressively-nfa-told
Rice prices may rise if imports
halted: economist
ABS-CBN News
Watch also in iWantv or TFC.tv http://news.abs-cbn.com/video/business/04/20/17/rice-prices-may-rise-if-imports-halted-economist
The Department of Agriculture's plan to stop rice importation in
to favor local farmers could push up prices of the staple grain, an economist
said Thursday."If we locally procure everything, we will be competing with
local traders for the available stocks... When stocks go down, prices go
up," Ramon Clarete of the UP School of Economics told ANC's "Market
Edge with Cathy Yang."
President Rodrigo Duterte recently directed the National Food
Authority to buy rice from local
farmersbefore importing.
Over 92% of VN’s
rice export in Q1 under firms’ deals
The report also said Vietnam
exported 1.1 million tonnes of rice, down 23 percent in volume and 18 percent
in value compared to the same period last year.China remained the largest rice
importer in the reviewed time with 448,000 tonnes, making up 41 percent of the
total rice exports, followed by the Philippines and Africa with 20 percent and
13 percent, respectively.
Average price of rice export in
Q1 reached US$432 per tonne, up US$27.7 per tonne against last year. Rice price
in March climbed to some US$445 per tonne, increasing US$42.8 due to a surge in
domestic rice price.
According to Huynh The Nang,
Chairman of VFA, many key rice importers of Vietnam, particularly in Southeast
Asia, have switched their rice import mechanisms from inter-governmental deals
to trade deals of private companies or liberalise rice trade.
He added that Vietnam’s rice
exporters should prepare to better adapt to market demand in the future.
Ghana can halt
rice importation – Percival Ampomah
CitiFMonline
The importation of rice can be drastically
reduced if the necessary measures are taken to boost rice production in Ghana,
the Manager of Worawora Ricemill, a subsidiary of Groupe Nduom, Percival Ofori
Ampomah has said.
Speaking on the Citi Breakfast Show, Mr.
Ampomah suggested what he termed a comprehensive approach to boosting local
rice production in Ghana.He was optimistic rice production in Ghana can be
up-scaled if government and other key investors decide to channel more
resources to that sector.
Though he indicated that an active role by these
two players could reduce rice importation, Mr. Ampomah was quick to add that,
these efforts should be complemented with a rigorous sensitization on locally
produced rice, and a constant irrigation of farm lands across the country.Mr.
Ampomah admitted that, though successive governments have always been
committing some sort of efforts into reducing the importation of rice, the
dream of drastically reducing rice importation can be achieved if the above
mentioned suggestions are considered.
“The good news is that, there are irrigated
lands that are lying there, that are not being used so the potential is
considerably great and production can be up-scaled to the extent where we can
get that 70 percent mark.
I will say that, if government or anybody wants
to support that effort [Reducing rice importation], it is possible and we can
do that. We can actually do this in five years or even less than that. Once we
develop these irrigated farms, we will be able to produce enough to replace the
importation. We can get a very good percentage produced locally. But more
investors need to come on the field in terms of agriculture. Also on the
market, more people need to sensitize Ghanaians about eating local rice and the
nutritional content ..It is a comprehensive approach.”
Rice import costs Ghana US$500m annually
In 2016, the Director of Finance and
Administration at the John Agyekum Kufuor Foundation, Victor Kufuor, revealed
that Ghana was spending 500 million
dollars every year through the importation of rice.Mr. Kufuor said this posed
serious challenges to local rice production, making it noncompetitive in the
local markets.He said the taste for foreign goods by Ghanaians have grown in
recent times, affecting the country’s balance of trade.“We are importing over
500 million dollars worth of foreign rice. Why should we do that? Even some of
the countries we are mentioning we probably are even better than them,” he
said. The statistics comes at a time when the Trade Ministry is campaigning for
Ghanaians to embrace and promote 'Made in Ghana Goods'.”
By: Marian Ansah/citifmonline.com/Ghana
Nagpur
Foodgrain Prices Open- April 18, 2017
Nagpur Foodgrain Prices – APMC/Open Market-April 18
Nagpur, April 18 (Reuters) – Major rice varieties reported higher in open market on increased
festival season demand from local traders amid weak supply from producing regions like Madhya
Pradesh and Chhattisgar. Notable rise in demand from South-based traders also jacked up prices.
No auction reported in tuar and gram in Nagpur APMC as brokers failed to give payments i time,
according to sources.
FOODGRAINS & PULSES
GRAM
* Gram varieties ruled steady in open market here but demand was poor.
TUAR
* Tuar varieties quoted static in open market here on subdued demand from local
traders amid ample stock in ready position.
* Watana varieties reported higher in open market on good festival season demand from
local traders.
* In Akola, Tuar New – 4,350-4,450, Tuar dal (clean) – 6,800-6,900, Udid Mogar (clean)
– 9,500-11,200, Moong Mogar (clean) 7,100-7,400, Gram – 6,100-6,300, Gram Super best
bold – 8,200-8,600 for 100 kg.
* Wheat, rice and other commodities moved in a narrow range in scattered deals and
settled at last levels in weak trading activity.
Nagpur foodgrains APMC auction/open-market prices in rupees for 100 kg
FOODGRAINS Available prices Previous close
Gram Auction n.a. 5,650-6,000
Gram Pink Auction n.a. 2,100-2,600
Tuar Auction n.a. 3,500-4,000
Moong Auction n.a. 4,000-4,400
Udid Auction n.a. 4,300-4,500
Masoor Auction n.a. 2,600-2,800
Wheat Mill quality Auction n.a. 1,500-1,620
Gram Super Best Bold 8,700-9,000 8,700-9,000
Gram Super Best n.a. n.a.
Gram Medium Best 7,800-8,000 7,800-8,000
Gram Dal Medium n.a. n.a
Gram Mill Quality 5,800-6,000 5,800-6,000
Desi gram Raw 6,200-6,400 6,200-6,400
Gram Yellow 8,200-8,400 8,200-8,400
Gram Kabuli 12,400-13,500 12,400-13,500
Tuar Fataka Best-New 7,000-7,200 7,000-7,200
Tuar Fataka Medium-New 6,600-6,800 6,600-6,800
Tuar Dal Best Phod-New 6,000-6,300 6,000-6,300
Tuar Dal Medium phod-New 5,600-5,900 5,600-5,900
Tuar Gavarani New 3,900-4,200 3,900-4,200
Tuar Karnataka 4,200-4,400 4,200-4,400
Masoor dal best 5,800-6,000 5,800-6,000
Masoor dal medium 5,600-5,700 5,600-5,700
Masoor n.a. n.a.
Moong Mogar bold (New) 7,200-7,500 7,200-7,500
Moong Mogar Medium 6,800-7,000 6,800-7,000
Moong dal Chilka 6,000-7,000 6,000-7,000
Moong Mill quality n.a. n.a.
Moong Chamki best 6,800-7,400 6,800-7,400
Udid Mogar best (100 INR/KG) (New) 9,900-11,500 9,900-11,500
Udid Mogar Medium (100 INR/KG) 8,000-9,000 8,000-9,000
Udid Dal Black (100 INR/KG) 6,100-6,600 6,100-6,600
Batri dal (100 INR/KG) 5,600-6,200 5,600-6,200
Lakhodi dal (100 INR/kg) 3,600-3,800 3,600-3,800
Watana Dal (100 INR/KG) 3,200-3,350 3,000-3,100
Watana White (100 INR/KG) 3,300-3,500 3,200-3,400
Watana Green Best (100 INR/KG) 3,900-4,400 3,800-4,300
Wheat 308 (100 INR/KG) 2,000-2,100 2,000-2,100
Wheat Mill quality (100 INR/KG) 1,700-1,800 1,700-1,800
Wheat Filter (100 INR/KG) 2,100-2,300 2,100-2,300
Wheat Lokwan new (100 INR/KG) 1,900-2,100 1,900-2,100
Wheat Lokwan best (100 INR/KG) 2,100-2,200 2,100-2,200
Wheat Lokwan medium (100 INR/KG) 2,000-2,100 2,000-2,100
Lokwan Hath Binar (100 INR/KG) n.a. n.a.
MP Sharbati Best (100 INR/KG) 3,400-4,000 3,400-4,000
MP Sharbati Medium (100 INR/KG) 2,600-2,800 2,600-2,800
Rice BPT new (100 INR/KG) 3,000-3,400 3,000-3,400
Rice BPT best (100 INR/KG) 3,500-4,000 3,200-3,700
Rice BPT medium (100 INR/KG) 3,000-3,200 2,700-3,000
Rice Luchai (100 INR/KG) 2,500-2,800 2,400-2,700
Rice Swarna new (100 INR/KG) 2,300-2,500 2,300-2,500
Rice Swarna best (100 INR/KG) 2,600-2,800 2,600-2,800
Rice Swarna medium (100 INR/KG) 2,400-2,500 2,400-2,500
Rice HMT New (100 INR/KG) 3,600-4,000 3,600-4,000
Rice HMT best (100 INR/KG) 4,000-4,500 4,000-4,500
Rice HMT medium (100 INR/KG) 3,800-3,900 3,700-3,900
Rice Shriram New(100 INR/KG) 4,600-4,800 4,600-4,800
Rice Shriram best 100 INR/KG) 6,500-7,000 6,500-6,800
Rice Shriram med (100 INR/KG) 6,000-6,400 6,000-6,300
Rice Basmati best (100 INR/KG) 10,000-14,000 9,500-13,500
Rice Basmati Medium (100 INR/KG) 5,500-7,000 5,200-6,700
Rice Chinnor New(100 INR/KG) 4,600-4,800 4,600-4,800
Rice Chinnor best 100 INR/KG) 5,800-6,200 5,600-6,000
Rice Chinnor medium (100 INR/KG) 5,500-5,700 5,400-5,600
Jowar Gavarani (100 INR/KG) 1,900-2,200 1,900-2,200
Jowar CH-5 (100 INR/KG) 1,800-1,900 1,800-1,900
WEATHER (NAGPUR)
Maximum temp. 44.0 degree Celsius, minimum temp. 26.5 degree Celsius
Rainfall : Nil
FORECAST: Mainly clear sky. Maximum and minimum temperature would be around and 44 and 26 degree
Celsius respectively.
Note: n.a.--not available
(For oils, transport costs are excluded from plant delivery prices, butincluded in market prices)
1.62m tonnes approved for rice auction
20 Apr 2017 at 08:00 3,144
NEWSPAPER SECTION: BUSINESS | WRITER: PHUSADEE
ARUNMAS
Mrs Duangporn inspects pledged rice being
stored at a warehouse in Nakhon Pathom province. State-held rice stocks have
recently fallen to 5.04 million tonnes.
TAWATCHAI
KEMGUMNERD
The national rice policy committee chaired by
Prime Minister Prayut Chan-o-cha yesterday approved the sale of the first lot
of inedible state rice stocks put up for general auction, totalling 1.62
million tonnes worth 7.92 billion baht.The approved amount is much lower than
the combined 2.07 million tonnes of inedible state rice stocks proposed by 15
qualified bidders and announced by the Commerce Ministry's Foreign Trade
Department on March 23.
The ministry called the first auction for 3.66
million tonnes of inedible grains on March 7, with interested bidders invited
to hear the terms of reference on March 10 and then submit their bid prices on
March 23.
The state rice stocks to be sold for industrial
use cover 17 types of poor-quality grains including hom mali fragrant rice,
white rice, glutinous rice and broken rice stored across 278 state warehouses
in 39 provinces.
Duangporn Rodphaya, director-general of the
Foreign Trade Department, said the national rice policy committee's decision is
based on maximum proposed prices, quality of the grains, the state's financial
costs in storing rice stocks and the possible impact on local rice and other
cereal prices.
Mrs Duangporn said the department has already
sent a letter informing the winning bidders to sign purchase contracts with the
state-run Public Warehouse Organisation and the Marketing Organisation for
Farmers in the next 15 days.
She said the committee also approved on April
12 a proposal to call the first auction of 1.03 million tonnes of decaying rice
for industrial use only, which has been stored for over five years.The
department is scheduled to allow interested bidders to observe the quality of
that rice on April 19-25 and listen to the terms of reference on April 20.
Since the May 2014 coup, a combined 11.7
million tonnes of rice have been sold in 25 auctions, fetching 104 billion
baht.State-held rice stocks have fallen to 5.04 million tonnes from the 18.7
million tonnes accumulated during 2011-14.Between Jan 1 and April 12 this year,
Thailand exported 3.4 million tonnes, up 9.31% from the same period last year,
worth US$1.43 billion (49.2 billion baht), up 6% in value.The government aims
to export over 9.5 million tonnes this year.Charoen Laothammatas, president of
Thai Rice Exporters Association, said he fully supports the government's
ongoing efforts to dispose of the country's rice stocks.
http://www.bangkokpost.com/business/news/1234958/1-62m-tonnes-approved-for-rice-auction
