Grain Insights
RSS By: Kevin McNew, AgWeb
The FBN Team provides a
macro-focused daily view of the world’s grain markets. Kevin
McNew received a bachelor’s degree from Oklahoma State University and his
master’s and Ph.D. degrees in Economics from North Carolina State University.
He spent 10 years as a Professor of Economics with the University of Maryland
and Montana State University focusing on commodity markets and is widely
regarded for his ability to boil-down complex economic situations into
easy-to-understand concepts for applied life.
Winter Storms
Continue in Northern Midwest
Dec 28, 2018
China Allows Imports Of US Rice For The First Time Ever As An
Olive Branch In Trade War
China’s Ministry of Commerce has given the green light to import
US origin rice as a “goodwill gesture” to the Trump Administration amid the
ongoing Trade War between the two countries. This would be the first time ever
that China has approved imports of rice from the US. US rice exports are not
competitive to China, compared to nearby South Asian exports, but is seen as a
sign that trade tensions may be easing instead of escalating. US rice imports
will still be subject to a 25% retaliatory tariff enacted by Beijing back in
July, before imports were even allowed. So long as the grain meets Chinese
quality standards, exports of brown, polished, and crushed rice are approved
immediately.
Southern Brazil Sees Some Precipitation But Will Need More To
Relieve Soybeans
Despite some recent showers in the south-central portion of
Brazil, many of the top growing states are moisture deficient following several
weeks of hot and dry weather. Mato Grosso, the largest soy producing state in
Brazil, is reported to be 1.97 inches of rain below the average for this time
of the year. Parana, the second largest producer, is around 0.79 inches below
average and no significant rains are forecast for the region until the first
week of January. In total, 5 Brazilian states representing two-thirds of total
soy production have had below average rainfall this growing season. Bartolomeu
Braz, the head of the Brazilian grain producers association Aprosoja claims
that yields may be slashed by as much as 30%.
Winter Storms Continue In The Northern Midwest
The National Weather Service warns that severe winter weather will
continue in the Northern Plains and the northern portion of the Midwest today
and into the weekend. Several counties in South Dakota still are under a
blizzard warning this morning. Snow is expected to stop today but wind gusts
could reach as high as 45 mph in some areas. Further east, central and S
Minnesota are under a winter storm warning, with the forecast calling for
freezing rain and winds up to 40 mph that may blow snow around and make travel
hazardous.
The risk of trading futures, hedging, and speculating can be
substantial. FBN BR LLC (NFA ID: 0508695)
China
allows first-ever U.S. rice imports ahead of trade talks
· DECEMBER 28, 2018
BEIJING
(Reuters) - China has opened the door to imports of rice from the United States
for the first time ever in what analysts took to signal a warming of relations
between the world’s two biggest economies after a frosty year marked by
tensions and tit-for-tat tariffs.
U.S.
and Chinese flags are seen before Defense Secretary James Mattis welcomes
Chinese Minister of National Defense Gen. Wei Fenghe to the Pentagon in
Arlington, Virginia, U.S., November 9, 2018. REUTERS/Yuri Gripas/Files
The
green light from Chinese customs, indicated in a statement posted on the
customs authority’s website on Friday, comes in the run-up to talks between the
countries in January after U.S. President Donald Trump and Chinese President Xi
Jinping agreed to a moratorium on higher tariffs that would affect trade worth
hundred of billions of dollars.It was not immediately clear how much rice
China, which sources rice imports from within Asia, might seek to buy from the
United States. But the move, which comes after years of talks on the matter,
follows pledges from China’s commerce ministry of further U.S. trade openings
earlier this week.“I wouldn’t be surprised to see importers trying to move rice
into China from California but I don’t know if it will be in breathtaking
quantities right away,” said Stuart Hoetger, an analyst and physical rice
trader based in California.
As
of Dec. 27, imports of brown rice, polished rice and crushed rice from the
United States are now permitted, as long as cargoes meet China’s inspection
standards and are registered with the U.S. Department of Agriculture.The USDA
on Dec. 11 forecast U.S. rice production at 6.93 million tonnes while Chinese
rice imports were estimated at 5 million tonnes. Rice makes up only a small
portion of U.S. agricultural exports, which are dominated by shipments of
soybeans, grain, tree nuts and meat.
U.S.
rice futures RRc1 had little reaction to the announcement, declining by 7 cents
to $10.06 per cwt.
“The
permission for U.S. rice suggests an improving U.S. and China relationship,”
said Cherry Zhang, an agriculture analyst with consultancy JCI. Zhang said she
expected any imports would likely be ordered by state-owned companies.
Officials
at a government-affiliated think tank in Beijing said the price of U.S. rice
was not competitive, compared with imports from South Asia, and said the move
to formally permit imports from the United States should be interpreted as a
goodwill gesture.
China
opened its rice market when it joined the World Trade Organization in 2001, but
a lack of phytosanitary protocol between China and the United States
effectively banned imports, according to trade group USA Rice.
Nonetheless,
in July China formally imposed additional tariffs of 25 percent on U.S. rice,
even though imports were not permitted at the time.
ASIA
RICE-INDIA RATES SCALE 4-MONTH PEAK ON RISING PROCUREMENT COSTS
12/27/2018
* Vietnam rates unchanged at $385/tonne
* Indian demand softens due to higher prices
By Arpan Varghese
BENGALURU, Dec 27 (Reuters) - Rice export prices in India rose for
a second straight week to the highest in four months on higher procurement
costs for paddy, while Thai rates eased with no fresh demand in sight. Top
exporter India's 5 percent broken parboiled variety <RI-INBKN5-P1> was
quoted around $378-$384 per tonne this week, up from last week's $375-$382.
The central state of Chhattisgarh, a leading rice producer,
recently raised minimum paddy buying price to 2,500 rupees per 100 kg from
1,750 rupees earlier.
Demand is negligible due to higher prices and as most traders are
on vacation, said an exporter based at Kakinada in the southern state of Andhra
Pradesh.
Meanwhile, neighbouring Bangladesh, which became a major rice
importer in 2017 after floods depleted domestic stocks, has dropped a plan to
buy 700,000 tonnes of the staple in the year to June 2019, a food ministry
official said.
"We had kept a budget for imports of 700,000 tonnes as a
precaution, but fortunately, we won't need to go for international markets as
production improved this year."
The country's production for 2018/19 is expected to recover to
34.7 million tonnes, up 6.3 percent year-on-year, according to estimates from
the U.S. Department of Agriculture attaché in Bangladesh.
In Thailand, benchmark 5-percent broken rice <RI-THBKN5-P1>
prices eased to $380-$390 per tonne, free on board Bangkok, from $390-$391 last
week, due to the lack of fresh demand in the market, which is expected to
remain quiet until after the new year period, traders said.
While the December-January period is usually the rice harvest
season, this year, there has been a delay in harvesting in some parts of the
country, a trader in Bangkok said.
"Supply will gradually increase in early February and that
could push down the price further if there is no fresh demand."
In Vietnam, rates for 5 percent broken rice <RI-VNBKN5-P1>
were unchanged at $385 a tonne.
"Trade is very slow amid the holiday season and I think it
won't pick up until March, when output of the winter-spring crop is
available," said a trader based in Ho Chi Minh City.
"Though domestic inventory is nearly empty, I don't think
price can go up in the short term due to weak demand. It may even go down in
the coming months due to China's move to limit shipments from Vietnam."
Vietnam's rice shipments to China in the first 11 months of this
year fell 40 percent from a year earlier to 1.3 million tonnes, state media
reported, citing Nguyen Ngoc Nam, chairman of Vietnam Food Association.
China has put a cap on the number of Vietnamese companies eligible
to export rice to China at 21, and Vietnam is asking China to add more firms to
the list, reported the Nong Nghiep Vietnam newspaper. (Reporting by Panu
Wongcha-um in Bangkok, Khanh Vu in Hanoi, Ruma Paul in Dhaka and Rajendra
Jadhav in Mumbai; Editing by Louise Heavens)
Moga millers
‘procuring’ cheap rice from other states
Dec
29, 2018, 1:59 AM; last updated: Dec 29, 2018, 1:59 AM (IST)
Kulwinder
Sandhu
Tribune
News Service
Moga,
December 28
Even
as the Punjab Government has imposed a ban on the procurement of rice by
millers from other states, some millers in Moga district are still taking raw
rice of poor quality from Uttar Pradesh and other states to mix it with locally
produced rice, the milling of which is underway these days.
Investigations by The Tribune revealed that
this “business” is carried out through rice brokers in Punjab and UP, who also
purchase government rice meant for the Public Distribution System (PDS) from
black market and sell it to rice millers in Moga and its adjoining districts.
Arvind
Kumar, a rice broker of Rampur, Akbarpur district, UP, confirmed that he had
sent a few consignments of “khanda” rice (broken rice) to a few mills at
Ajitwal, Nihalsinghwala and Moga at the rate of Rs 2,000 to Rs 2,100 per
quintal (including freight charges).
When told that “someone needs at least 10
trucks of rice in grey market”, he gave contact details of another rice broker
Babli, also of Akbarpur, saying he would bargain on the rate. Arvind said Babli
had also sent many consignments of raw rice to rice millers in Moga and its adjoining
districts.
Truck driver Soma of Rana Goods Carrier, who
brought a consignment of rice at a mill in Ajitwal on Wednesday night, said he
brought the truck through Haryana from the Shambu inter-state barrier. “Two
policemen chased me on a motorcycle around 11 pm on Wednesday, but I managed to
give them the slip,” he said.
The state government authorities do not allow
trucks loaded with raw rice to enter Punjab through the Shambu inter-state
barrier. Therefore, most of the trucks pass through the Khanauri inter-state
border in Sangrur district where rice brokers pay a fixed amount of “bribe” to
policemen on duty, the truck driver revealed. “Normally, we just show the slip
of consignment to the cops on duty at Khanauri inter-state barrier and they allow
us to pass through during the night time,” Soma said.
Baljinder Singh, a local rice broker in Moga,
said he supplied rice to traders/millers who had GST number and this was not an
unfair trade practice. “If there is a problem, the government should stop the
inter-state trade. Otherwise, I don’t think there is any unfair trade practice
involved in this,” he said.
Rice millers are allegedly mixing low-priced
rice with FCI stocks and selling the better rice in the open market at higher
prices. The entire procurement of paddy in Punjab is sent to private millers
for cleaning, shelling and polishing of grains. Millers return the finished
product back to the FCI for the central pool.
Moga District Rice Millers Association
president Vinod Bansal said he had held a meeting of the rice millers recently
and had apprised them not to indulge in the unfair trade practice. “If rice
millers are indulging in such unfair trade practices, the government should
take action as per law,” he said.
Telangana Civil Supplies procures a record 34 LMT paddy in Khariff
Hyderabad: Telangana Civil Supplies Department has created a
record by procuring paddy more than the expected targets. It purchased double
the quantity what it purchased last year. In the last Kharif season, the Civil
Supplies Department purchased 18.24 lakh tons of paddy from 4.17 lakh farmers
at 2,716 Paddy Procurement Centers (PPCs).
In this Kharif season, till now the Civil Supplies Department procured a record 34.26 lakh tons of paddy from 6.71 lakh farmers through 3,280 PPCs with Minimum Support Price (MSP) of Rs 1,770 per quintal for Grade-A and Rs 1,750 per quintal to common rice. Two to three lakh tons of paddy more was expected in a few more days.
Reasons for the high yield of paddy was due to good weather
conditions, ample water supply due to timely rainfall and water distribution
from irrigation projects. The government’s initiation of continuous power
supply also helped in good yield. In Kharif season last year, some eight lakh
hectare was used to cultivate paddy, whereas this year paddy was raised in 10
lakh hectare. There was also less damage to paddy from pests and diseases. Due
to increase in MSP rates and rice millers’ reluctance to participate in MSP operations
for their local business, the entire paddy produced by the farmers was being
sold in PPCs, including paddy of preferred value.
Particularly, high yield paddy was recorded at Nizamabad, Kamareddy, Jagtial, Nalgonda, Karimnagar, Bhupalapally districts. After formation of Telangana State procurement of paddy in Kharif season was as follows: In 2014-15, the department purchased 11.03 LMT from 1,639 centers; in 2015-16, procurement was 15.13 LMT from 1,721 centers; in 2016-17, it was 16.47 LMT from 2,178 centers; In 2017-18, paddy purchase was 18.24 LMT from 2,716 centers.
For the paddy purchased in this Khariff season, Rs 6055 crore online payments have been made directly into 6,71,286 farmers’ accounts for 34.26 Lakh tons of paddy. As soon as track sheet was generated the balance payment will be completed.
Particularly, high yield paddy was recorded at Nizamabad, Kamareddy, Jagtial, Nalgonda, Karimnagar, Bhupalapally districts. After formation of Telangana State procurement of paddy in Kharif season was as follows: In 2014-15, the department purchased 11.03 LMT from 1,639 centers; in 2015-16, procurement was 15.13 LMT from 1,721 centers; in 2016-17, it was 16.47 LMT from 2,178 centers; In 2017-18, paddy purchase was 18.24 LMT from 2,716 centers.
For the paddy purchased in this Khariff season, Rs 6055 crore online payments have been made directly into 6,71,286 farmers’ accounts for 34.26 Lakh tons of paddy. As soon as track sheet was generated the balance payment will be completed.
Civil Supplies Commissioner Akun
Sabharwal has congratulated his officers and staff for the feat. He said, “We
procured paddy in record level this year in Telangana State beyond the target
without any hurdles and problems. We moved forward coordinating with all the
sections from District Collectors, Joint Collectors, Civil Supplies
Corporation, Department Authorities to ground level without any errors and
mistakes. In Kharif, we targeted to procure 25 LMT, but we procured 34 LMT and
it may reach up to 36 LMT. Wet paddy caused due to Pethai cyclone will also be
purchased. In Telangana history, highest yield was recorded and we succeeded in
purchase it without any difficulties”, he added.
Baghel meets
Chhattisgarh Assembly Speaker, several other delegations
Raipur
28 Dec 2018
Chhattisgarh chief minister Bhupesh
Baghel received courtesy call by Gaurishankar Agarwal, the Speaker of the
Legislative Assembly here on Thursday. They congratulated each other on
embarking the new journey.
Representatives from Chhattisgarh Rice Millers Association also paid a courtesy visit to the state guest house and congratulated the chief minister. The delegation included the vice-president of Chhattisgarh Rice Millers Association, Yogesh Agarwal and the Rice Millers from different districts of the state. Baghel also met the Governor of BrahMkumari Ishvari University Raipur Center, Kamla Sister and Savita Sister and the delegation of the Chhattisgarh Cine Association. The delegation included many film artists, including the President of Cine Association, Yogesh Agarwal.
former MP Sohan Poetai also met the new chief minister in the presence of all Gond Tribal Society. He congratulated Baghel and conveyed his best wishes. Habibur Rahman, resident of Tikarapara Santoshi Nagar, who met the chief minister, will get the benefit of the old age pension scheme of the state government. Habibur Rahman used to work as a stamp vendor in the past and was also a councilor from Satoshi town ward of Raipur city in the 80's. During their meeting, his old acquaintance Dr Rakesh Gupta explained that the current financial condition of Rahman is not good and the chief minister assured him the benefits of old age pension.
Representatives from Chhattisgarh Rice Millers Association also paid a courtesy visit to the state guest house and congratulated the chief minister. The delegation included the vice-president of Chhattisgarh Rice Millers Association, Yogesh Agarwal and the Rice Millers from different districts of the state. Baghel also met the Governor of BrahMkumari Ishvari University Raipur Center, Kamla Sister and Savita Sister and the delegation of the Chhattisgarh Cine Association. The delegation included many film artists, including the President of Cine Association, Yogesh Agarwal.
former MP Sohan Poetai also met the new chief minister in the presence of all Gond Tribal Society. He congratulated Baghel and conveyed his best wishes. Habibur Rahman, resident of Tikarapara Santoshi Nagar, who met the chief minister, will get the benefit of the old age pension scheme of the state government. Habibur Rahman used to work as a stamp vendor in the past and was also a councilor from Satoshi town ward of Raipur city in the 80's. During their meeting, his old acquaintance Dr Rakesh Gupta explained that the current financial condition of Rahman is not good and the chief minister assured him the benefits of old age pension.
Paddy purchase in record scale in Telangana
THE HANS INDIA
| Dec 28,2018 , 05:37 PM IST
Paddy purchase in record scale in
Telangana
Hyderabad: Telangana Civil Supplies Department
created record by procuring paddy more than the expected targets.
The department purchased double the quantity what it has purchased last year. In last Kharif season Civil Supplies Department purchased 18.24 Lakh tons of paddy from 4.17 lakh farmers at 2716 Paddy Procurement Centers (PPCs).
In this Kharif season till now at record level 34.26 lakh tons of paddy is purchased from 6.71 lakh farmers through 3280 PPCs with Minimum Support Price (MSP) valued for Rs. 1770 per quintal for Grade-A and Rs. 1750 per quintal to Common Rice. Two to three lakh tons of paddy more is expected in few more days.
Reasons for the high yield is due to good weather conditions, ample water supply due to timely rainfall and water distribution from irrigation projects. With government initiation for continuous power supply also helped in good yield.
Last year in Kharif season 8 lakh hectares of acreage was used to cultivate paddy, whereas this it has grown to 10 lakh hectares. There was alsa less damage to paddy from pests and deceases. And also due to increase in MSP rates and Rice millers reluctance to participate in MSP operations for their local business, entire paddy produced by farmers is being sold in PPCs, including paddy of preferred value.
In particularly high yield was recorded at Nizamabad, Kamareddy, Jagitial, Nalgonda, Karimnagar, Bhupalpally districts.
After the formation of Telangana State, the purchase of paddy in Kharif season increased from 11.03 LMTs from 1639 centres in 2014-15 to 18.24 LMTs from 2716 Centres in 2017-18.
Rs. 5213 Crores into farmers accounts through online
For the paddy purchased in this Khariff season Rs. 6055 crores online payments have been made directly into 671,286 farmers accounts for 34.26 Lakh tons of paddy. As soon as track sheet is generated the balance payment will be completed.
"We procured paddy in record level this year in Telangana State beyond the target without any hurdles and problems. We moved forward coordinating with all the sections from District Collectors, Joint Collectors, Civil Supplies Corporation, Department Authorities to ground level without any errors and mistakes. In Kharif we targeted to procure 25 LMTs, but more than the target we procured 34 LMTs. It may reach upto 36 LMTs. Wet paddy caused due to Pethai cyclone will also be purchased. In Telangana history highest yield is recorded and we succeeded in purchase it without any difficulties," Commissioner Akun Sabharwal said while congratulating all the authorities and staff. https://www.thehansindia.com/posts/index/Telangana/2018-12-28/Paddy-purchase-in-record-scale-in-Telangana/465971
The department purchased double the quantity what it has purchased last year. In last Kharif season Civil Supplies Department purchased 18.24 Lakh tons of paddy from 4.17 lakh farmers at 2716 Paddy Procurement Centers (PPCs).
In this Kharif season till now at record level 34.26 lakh tons of paddy is purchased from 6.71 lakh farmers through 3280 PPCs with Minimum Support Price (MSP) valued for Rs. 1770 per quintal for Grade-A and Rs. 1750 per quintal to Common Rice. Two to three lakh tons of paddy more is expected in few more days.
Reasons for the high yield is due to good weather conditions, ample water supply due to timely rainfall and water distribution from irrigation projects. With government initiation for continuous power supply also helped in good yield.
Last year in Kharif season 8 lakh hectares of acreage was used to cultivate paddy, whereas this it has grown to 10 lakh hectares. There was alsa less damage to paddy from pests and deceases. And also due to increase in MSP rates and Rice millers reluctance to participate in MSP operations for their local business, entire paddy produced by farmers is being sold in PPCs, including paddy of preferred value.
In particularly high yield was recorded at Nizamabad, Kamareddy, Jagitial, Nalgonda, Karimnagar, Bhupalpally districts.
After the formation of Telangana State, the purchase of paddy in Kharif season increased from 11.03 LMTs from 1639 centres in 2014-15 to 18.24 LMTs from 2716 Centres in 2017-18.
Rs. 5213 Crores into farmers accounts through online
For the paddy purchased in this Khariff season Rs. 6055 crores online payments have been made directly into 671,286 farmers accounts for 34.26 Lakh tons of paddy. As soon as track sheet is generated the balance payment will be completed.
"We procured paddy in record level this year in Telangana State beyond the target without any hurdles and problems. We moved forward coordinating with all the sections from District Collectors, Joint Collectors, Civil Supplies Corporation, Department Authorities to ground level without any errors and mistakes. In Kharif we targeted to procure 25 LMTs, but more than the target we procured 34 LMTs. It may reach upto 36 LMTs. Wet paddy caused due to Pethai cyclone will also be purchased. In Telangana history highest yield is recorded and we succeeded in purchase it without any difficulties," Commissioner Akun Sabharwal said while congratulating all the authorities and staff. https://www.thehansindia.com/posts/index/Telangana/2018-12-28/Paddy-purchase-in-record-scale-in-Telangana/465971
Record-setting paddy
yield for Telangana in 2018
The crops
are being procured at the Minimum Support Price (MSP) of Rs 1,770 per quintal
for Grade-A and Rs 1,750 per quintal to Common Rice.
Published: 29th December 2018 06:20
AM | Last Updated: 29th December 2018 06:20 AM |
HYDERABAD: An
year of thumping numbers? 2018 reportedly has recorded the highest yield of
paddy crop for the kharif season ever since the formation of Telangana State.
Giving a perspective, the yield has doubled since the last year, hiking up from
18.24 lakh metric tonnes (LMT) last year to 34.26 LMT this year. Good weather
conditions, ample water due to timely rainfall and water distribution from
irrigation projects, all together are said to be responsible for the bountiful
harvest this season.
“In the
history of Telangana, this year records the highest yield. And the Civil
Supplies department has succeeded in purchasing it without any difficulties.
For this
year’s kharif season we targeted to procure 25 LMTs, but we procured 34 LMTs.
It may reach up to 36 LMTs as well. Wet paddy caused due to Phethai cyclone
will also be purchased,” said commissioner of Telangana Civil Supplies
department, Akun Sabharwal on Friday. Highest yields were recorded at
Nizamabad, Kamareddy, Jagtial, Nalgonda, Karimnagar and Bhupalpally districts.
High on
technology! At least, Rs 6,055 crore worth of online payments have been made
directly into bank accounts of 6,71,286 farmers in the State. As soon as a
track sheet is generated the balance payment will be completed, added the
commissioner. The crops are being procured at the Minimum Support Price (MSP)
of Rs 1,770 per quintal for Grade-A and Rs 1,750 per quintal to Common Rice.
There has been
an increase in both the acreage of cultivated land and number of Paddy
Procurement Centres from the previous year. Besides, there was also less damage
to paddy from pests and diseases. And also due to increase in MSP rates and
reluctance of the rice millers from participating in MSP operations for their
local business, entire paddy produced by farmers is being sold in PPCs this
year, including paddy of preferred value. The department expects to purchase at
least two to three LMTs of paddy in the coming days.
Govt.
marks up purchase price of rice for emergency reserves by 27.5%
The South Korean government said
Friday it has decided to mark up the purchase price of rice set aside for
emergency reserves to better help local farmers. The Ministry of Agriculture,
Food and Rural Affairs said it decided to set this year's price for a
40-kilogram sack of rice at 67,050 won ($59.76), up 27.5 percent from last
year's 52,570 won. The government purchased rice from farmers over the October-December
period by initially providing 30,000 won per sack in line with its standing
reserve policy. It plans to make up the difference within the end of this
month. The agricultural ministry added
it completed the purchase of 350,000 tons of rice earmarked for 2018. The raise
is expected to improve the earnings of local farmers, it added.
The emergency reserve system is designed to
store staple grains as a contingency against natural disasters or other food
supply crises. The government normally purchases around 17 to 18 percent of the
annual consumption amount, about two months worth, as backup.
Officials see declining 2019 rice shipments
The government is confident that Thailand will end the year
exporting 11 million tonnes of rice as targeted, but shipments are forecast to
drop to 10 million tonnes next year amid stiff competition and and a
domestic drought. Boonyarit Kalayanamit, the commerce permanent
secretary, said the National Rice Policy Committee chaired by Prime Minister
Prayut Chan-o-cha met on Thursday and endorsed the figures.
As of Dec 11, Thai rice
exports ranked second globally at 10.35 million tonnes, following India's 11.37
million. Vietnam was third with 6.06 million tonnes. "This year,
Thai rice shipments were driven by high demand from the Philippines and
Indonesia," Mr Boonyarit said. The Commerce Ministry is in the process of
delivering 100,000 tonnes of rice to China and 80,000 tonnes to the Philippines
under government-to-government deals, he said.
Slow cooker: China gives final approval to imports of rice from
US after inspection procedures put in place
- US producers can now sell into world’s
largest rice market after phytosanitary standards and procedures set out
in 2017 agreement are reached
PUBLISHED : Friday, 28 December, 2018, 7:53pm
UPDATED : Friday, 28 December, 2018, 11:16pm
American rice was cleared for import from Thursday, Chinese
customs officials announced.“According to the relevant Chinese laws and the
conditions set out in the agreed phytosanitary protocol, the US is permitted to
export rice to China,” the agency said.China agreed to open its rice market to
US producers after a deal was struck in 2017. It did not take effect straight
away as inspection procedures had to be put in place.
The customs announcement is the latest step for Beijing towards
opening its markets since Chinese President Xi Jinping and his American
counterpart Donald Trump met on December 1 and agreed to a 90-day period to
work towards a trade deal. Part of that agreement was that China would buy more
US agricultural produce.
China has since then bought more than 1.5 million tonnes of
soybeans and resumed buying liquefied gas.
The US keeps a long list of complaints against China on
intellectual property, forced technology transfers and industrial subsidies.
Trump said China used “unfair trade practices”, which led to a trade deficit
that he promised to cut.
Negotiations on opening China’s rice market to the US started
more than a decade ago. China’s demands for rice surged after it joined the
World Trade Organisation in 2001, but a lack of plant health protocols stalled
imports, trade group USA Rice said.
China imported about 5 million tonnes of rice in 2016, according
to data from the US Department of Agriculture.
Meanwhile, the US exports 3 million to 4 million tonnes of rice
per year, according to the UN Food and Agriculture organisation.
US rice products will face competition in China, where Vietnam
and Thailand are major rice exporters.
China allows first-ever
U.S. rice imports ahead of trade talks
DECEMBER 28, 2018
BEIJING (Reuters) - China has opened
the door to imports of rice from the United States for the first time ever in
what analysts took to signal a warming of relations between the world’s two
biggest economies after a frosty year marked by tensions and tit-for-tat
tariffs.
U.S. and Chinese flags are seen
before Defense Secretary James Mattis welcomes Chinese Minister of National
Defense Gen. Wei Fenghe to the Pentagon in Arlington, Virginia, U.S., November
9, 2018. REUTERS/Yuri Gripas/Files
The green light from Chinese
customs, indicated in a statement posted on the customs authority’s website on
Friday, comes in the run-up to talks between the countries in January after
U.S. President Donald Trump and Chinese President Xi Jinping agreed to a
moratorium on higher tariffs that would affect trade worth hundred of billions
of dollars.
It was not immediately clear how
much rice China, which sources rice imports from within Asia, might seek to buy
from the United States. But the move, which comes after years of talks on the
matter, follows pledges from China’s commerce ministry of further U.S. trade
openings earlier this week.
“I wouldn’t be surprised to see
importers trying to move rice into China from California but I don’t know if it
will be in breathtaking quantities right away,” said Stuart Hoetger, an analyst
and physical rice trader based in California.
As of Dec. 27, imports of brown
rice, polished rice and crushed rice from the United States are now permitted,
as long as cargoes meet China’s inspection standards and are registered with
the U.S. Department of Agriculture.
The USDA on Dec. 11 forecast U.S.
rice production at 6.93 million tonnes while Chinese rice imports were
estimated at 5 million tonnes. Rice makes up only a small portion of U.S.
agricultural exports, which are dominated by shipments of soybeans, grain, tree
nuts and meat.
U.S. rice futures RRc1 had little
reaction to the announcement, declining by 7 cents to $10.06 per cwt.“The
permission for U.S. rice suggests an improving U.S. and China relationship,”
said Cherry Zhang, an agriculture analyst with consultancy JCI. Zhang said she
expected any imports would likely be ordered by state-owned companies.
Officials at a government-affiliated
think tank in Beijing said the price of U.S. rice was not competitive, compared
with imports from South Asia, and said the move to formally permit imports from
the United States should be interpreted as a goodwill gesture.
China opened its rice market when it
joined the World Trade Organization in 2001, but a lack of phytosanitary
protocol between China and the United States effectively banned imports,
according to trade group USA Rice.
Nonetheless, in July China formally
imposed additional tariffs of 25 percent on U.S. rice, even though imports were
not permitted at the time.
Govt. marks up purchase price of rice for
emergency reserves by 27.5%
· Published : Dec 28, 2018 - 09:25
·
Updated
: Dec 28, 2018 - 09:25
The South Korean government said Friday it has
decided to mark up the purchase price of rice set aside for emergency reserves
to better help local farmers.
The Ministry of Agriculture, Food and Rural Affairs said it decided to set this year's price for a 40-kilogram sack of rice at 67,050 won ($59.76), up 27.5 percent from last year's 52,570 won.
The Ministry of Agriculture, Food and Rural Affairs said it decided to set this year's price for a 40-kilogram sack of rice at 67,050 won ($59.76), up 27.5 percent from last year's 52,570 won.
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(Yonhap)
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The government purchased rice from farmers over the October-December period by initially providing 30,000 won per sack in line with its standing reserve policy. It plans to make up the difference within the end of this month.
The agricultural ministry added it completed the purchase of 350,000 tons of rice earmarked for 2018.The raise is expected to improve the earnings of local farmers, it added.
The emergency reserve system is designed to store staple grains as a contingency against natural disasters or other food supply crises. The government normally purchases around 17 to 18 percent of the annual consumption amount, about two months worth, as backup. (Yonhap)
Rice
exporters anticipate difficulties with China’s new policy
VietNamNet
Bridge - Chinese import management agencies are planning to tighten control
over rice imports early next year.
China
has tightened control over rice imports
Nguyen
Van Don, director of Viet Hung Company in Tien Giang province, which has been
exporting rice to China for years, is worried about the new policy about
rice imports from ASEAN member countries.
From January 1, 2019, rice exports to China will not only have to bear high tax which as applied on July 1, 2018, but also satisfy a series of strict requirements. Product samples must be tested by national inspection units.
If Vietnamese exporters cannot present legal documents, Chinese agencies will refuse to grant certificates to export rice to China.Vietnamese enterprises are capable of satisfying all the requirements but they have to fulfill all the procedures within a short time, Don said.
So, rice exporters may have a tough year in 2019 if exports to China get stuck.
Since July 1, 2018, China has taxed 40-50 percent on all rice products imported from Southeast Asia, including Vietnam. Broken rice is taxed 5 percent.
Ta Quang Kien from the Ministry of Agriculture and Rural Development (MARD) has confirmed that the Chinese agencies have tightened control over rice imports.
From January 1, 2019, rice exports to China will not only have to bear high tax which as applied on July 1, 2018, but also satisfy a series of strict requirements. Product samples must be tested by national inspection units.
If Vietnamese exporters cannot present legal documents, Chinese agencies will refuse to grant certificates to export rice to China.Vietnamese enterprises are capable of satisfying all the requirements but they have to fulfill all the procedures within a short time, Don said.
So, rice exporters may have a tough year in 2019 if exports to China get stuck.
Since July 1, 2018, China has taxed 40-50 percent on all rice products imported from Southeast Asia, including Vietnam. Broken rice is taxed 5 percent.
Ta Quang Kien from the Ministry of Agriculture and Rural Development (MARD) has confirmed that the Chinese agencies have tightened control over rice imports.
|
The biggest concern
for Vietnam is the small scale of agricultural production. It is difficult to
restructure production, which is an obstacle to efforts to reduce costs and
increase traceability.
|
However,
MARD has successfully negotiated with Chinese agencies and obtained an
agreement on delaying the application of the new regulation until mid-2019.
The biggest concern for Vietnam, according to Kien, is the small scale of agricultural production. It is difficult to restructure production, which is an obstacle to efforts to reduce costs and increase traceability.
According to the General Department of Customs (GDC), in 2017, Vietnam exported $8.7 billion worth of farm produce to China, including $1 billion worth of rice. In the first 10 months of 2018, Vietnam exported 1.24 million tons to the market, worth $640 million.
Analysts noted that rice exports to China have decreased recently, but Vietnam’s rice is still in the No 1 position, amounting to 50 percent of China’s total rice imports.
There have also been big changes in the rice products exported to the market. While white and sticky rice exports have decreased, fragrant and parboiling rice is on the rise.
In related news, Vietnam's rice brand logo was launched on the occasion of the Vietnam Rice Festival organised in Long An province. A national rice brand is part of a strategic program which aims to enhance the value of Vietnam’s rice in the world market.
The biggest concern for Vietnam, according to Kien, is the small scale of agricultural production. It is difficult to restructure production, which is an obstacle to efforts to reduce costs and increase traceability.
According to the General Department of Customs (GDC), in 2017, Vietnam exported $8.7 billion worth of farm produce to China, including $1 billion worth of rice. In the first 10 months of 2018, Vietnam exported 1.24 million tons to the market, worth $640 million.
Analysts noted that rice exports to China have decreased recently, but Vietnam’s rice is still in the No 1 position, amounting to 50 percent of China’s total rice imports.
There have also been big changes in the rice products exported to the market. While white and sticky rice exports have decreased, fragrant and parboiling rice is on the rise.
In related news, Vietnam's rice brand logo was launched on the occasion of the Vietnam Rice Festival organised in Long An province. A national rice brand is part of a strategic program which aims to enhance the value of Vietnam’s rice in the world market.
Rice exports tipped to fall as rivalry bites
Economy December 28, 2018 01:00
By THE NATION
EXPECTATIONS for the
country’s rice exports next year have been scaled back in the face of intense
competition from fellow producers.
The Thai
Rice Exporters Association estimates exports will come in at 10 million tonnes
in 2019, shrinking from the forecast 11 million tonnes for this year,
The
association disclosed the forecast after a meeting of the Rice Policy and
Management Committee that was chaired by Prime Minister Prayut Chan-o-cha
yesterday.
Association
president Charoen Laothammatas said those at the meeting acknowledged that the
global and Thai rice environments in 2018 and 2019 were different. Thailand, as
of early December, had posted exports that had so far this year amounted to
10.2 million tonnes.
Shipments
of the grain in December are expected to reach 900,000 tonnes, ensuring that
the target of 11 million tonnes for the year will be reached.
The
lowered estimate of 10 million tonnes for next reflects the high competition
among producers, particularly from India, where its government subsidises 5 per
cent of export prices. The Indian rice price has also become attractive as a
result of the Indian rupee's 10-15 per cent depreciation. Adding to the
pressures, major rice-importing countries such as the Philippines, Indonesia
and China plan to import less next year.
Charoen
said that China bought 700,000 tonnes of rice from Thailand, under a government
to government agreement for a purchase of 1 million tonnes. Thailand began
exports to the Philippines under a contract for the supply of 75,000 tonnes.
Commerce
Ministry permanent secretary Boonyarit Kalayanamit said global rice production
would drop by 3.93 million tonnes to 491.14 million tonnes in the 2018-19
production year, due mainly to drought and floods in China. Less-than-estimated
rainfall in India and the Philippines' damaged rice production from a typhoon
would also contribute to the reduced global volume. In contrast, global rice
consumption is forecast to rise by 6.74 million tonnes to 489.56 million tonnes
due to a likely rise in consumption in a number of big countries, such as
China, India and Nigeria.
For the
year to December 11, India was the standout exporter with 11.37 million tonnes,
followed by Thailand with 10.35 million tonnes and Vietnam, 6.06 million
tonnes. Deputy Prime Minister Chatchai Sarikulya said that the Rice Policy and
Management Committee agreed on a Bt1.74-billion insurance project for wet
season rice growing, covering 30 million rai, in the 2019 production year.
The
project will provide insurance against seven types of natural disasters,
ranging from flood, drought, storm and cold weather to hail, fire, forest
elephants, pests and disease. The project will apply for all regions, excluding
the South, from the start of the production season to June 30 next year. In the
South, it will apply from the start of the production season to December 15.
Of the
total insurance premium of Bt85 per rai, farmers will pay Btt34 per rai and the
government will subsidise them with Bt51 per rai. The Bank |for Agriculture and
Agricultural Cooperatives (BAAC) will subsidise Bt34 per rai for its farmer
borrowers who grow wet season rice in the 2019 production year.
The
committee also approved a time extension to six rice sale projects that had
been running from 2008-14, in line with a government policy. The remaining
pledged rice - about 1.9 million tonnes – will be sold from this month to
September next year.
Rice export declines within eight months
A rice dealer in Bayintnaung wholesale market (Photo-Zeya
Nyein)
PUBLISHED 28 DECEMBER 2018
ZEYA NYEIN
Myanmar only exported over 1.5 million tons of rice and broken
rice within eight months from April 1 till December 14, according to Myanmar
Rice Federation (MRF).
Myanmar earned about US$288 million from more than 800,000 tons of
rice and broken rice export through border trade routes and over US$240 million
from over 700,000 tons of rice and broken rice export via maritime trade, it
said.
The MRF expected to export up to two million tons of rice and
broken rice in mini budget period, said Ye Min Aung, General Secretary of the
MRF during a ceremony to sign MoU between the Union of Myanmar Federation of
Chambers of Commerce and Industry (UMFCCI) and International Finance
Corporation (IFC).
Myanmar is exporting rice and broken rice with ships and China via
Muse 105 mile border trade center.
Myanmar expanded its rice export to new markets in 2017-18 FY and
about 3.6 million tons of rice was exported. It broke the record for over 50
years.
European Union (EU) is planning to withdraw generalized scheme of
preferences (GSP) for three years for rice export from Myanmar, according to
the MRF.
The EU is planning to collect €175 per ton of long grain rice in
2019, €150 per ton of long grain rice in 2020 and €125 per ton of long grain
rice in 2021 as import tax.Myanmar is exporting rice to EU member countries and
African countries via maritime trade routes and China to Muse 105 mile border
trade route.
A New Year's Surprise from China?
By Bob
Cummings
BEIJING, CHINA -- USA Rice's office in China reports that China
Customs announced today on its official website that the China market is opened
for the import of U.S. milled rice effective from December 27, 2018, in
accordance with the Sanitary and Phytosanitary Protocol signed between the
United States and China from July of 2017
"This is a tremendous milestone that has taken more
than a decade to reach and is a result of the insistence from USA Rice in
including rice as a step in resolving the trade dispute between China and the
U.S.," said USA Rice Chair Charley Mathews, Jr., a California rice
farmer. "As with all our dealings with China, the devil is in the details,
and we have many questions, including when the first sales will be made, but
this is definitely good news for our producers and millers as we enter the New
Year."
Recently China made large purchases of U.S. soybeans that received
widespread media coverage, however, imports of U.S. rice were illegal in China
and several administrative steps, such as today's action by China Customs, were
necessary before actual sales could take place.
China will now need to post the list of approved U.S. export mills
and facilities of milled rice developed in consultation between the U.S. rice
industry, USDA's Animal and Plant Health Inspection Service (APHIS) and China's
Agricultural Inspection Service. In 2017, USA Rice worked with U.S. and
Chinese government officials to facilitate Chinese inspections of some 10 U.S.
mills and facilities interested in exporting rice to China to demonstrate their
compliance with the complex U.S.-China phytosanitary protocol.
"What is still not 100 percent clear is whether China has
published the complete list of all the U.S. facilities approved to ship to
China," said Bobby Hanks, Chair of USA Rice's International Trade Policy
Committee and a Louisiana miller. "We will be looking in the days
ahead to USDA and the U.S. Trade Representative for clarification to make sure
that all approved U.S. facilities are eligible. We of course are looking
for the first confirmed rice sale to China. This important day for the
U.S. rice industry is the result of the trade policy leadership of the Trump
administration and the commitment of Secretary Perdue to open new markets for
U.S. agriculture," concluded Hanks.
USA Rice Daily
PM to Visit Varanasi on Saturday;
to Dedicate Rice Research Institute to Nation
Lucknow: Prime Minister Narendra Modi would be visiting Uttar
Pradesh on Saturday. During his visit to his constituency of Varanasi,
he would dedicate the 6th International Rice Research Institute South Asia
Regional Centre (ISARC) campus to the nation and also attend One District, One Product
Regional Summit at Deendayal Hastakala Sankul in Varanasi. (Also read: PM to Flag
Off Train 18 on December 29)
The Prime Minister will dedicate to the nation the International
Rice Research Institute (IRRI), South Asia Regional Center (ISARC) on the
campus of National Seed Research &Training Center (NSRTC) in Varanasi.
He’ll also unveil a postage stamp on Maharaja Suheldeo and address
a public rally in Ghazipur.
However, senior minister in the Yogi Adityanath government
and SBSP president Om Prakash Rajbhar, an MLA from Zahoorabad assembly
constituency in Ghazipur, has announced that he will not attend the programme.
“I will not attend the December 29 programme of Prime Minister
Narendra Modi in Ghazipur,” Rajbhar had told reporters. He is reportedly upset
over the commemorative postal stamp on backward caste leader Maharaja Suheldev
Rajbhar not carrying his full name.
All’s not well between the BJP and another ally, Apna Dal (S). The
party is represented at the Centre by Anupriya Patel, an MP from Mirzapur.
Patel said she stood by the remarks of her husband and party president Ashish
Patel, who had voiced frustration with the saffron party over its “treatment”
of smaller NDA allies.
So this visit of PM Modi would see some local leaders shunning the
event. The PM has regularly been visiting his constituency. Only last month,
he was there to inaugurate the first multi-modal waterways terminal on the
Ganga river. The terminal aims to develop the stretch of the river between
Varanasi and Haldia for navigation of large vessels weighing up to 1,500 to
2,000 tonnes. He also received India’s first container vessel that sailed from
Kolkata on inland waterways on October 30, carrying cargo.
Then, he inaugurated two major national highways. The two roads
have a combined length of 34 km and have been laid at a cost of Rs 1,571.95 crore.
Yet before that, the PM had inaugurated various development
projects, cumulatively worth more than Rs 500 crore, at the Banaras Hindu
University in Varanasi. Among the projects were Integrated Power Development
Scheme (IPDS) for Puraani Kashi and an Atal Incubation Centre at the BHU.
The projects for which the foundation stone was laid include the
Regional Ophthalmology Centre at the BHU. The event was held at the
amphitheatre of Banaras Hindu University (BHU).
