Tuesday, April 30, 2019

30th April,2019 Daily Global Regional Local Rice E-Newsletter


Basmati feels heat of Iran oil curbs

DECCAN CHRONICLE. | RITWIK MUKHERJEE
PublishedApr 29, 2019, 12:34 am IST
UpdatedApr 29, 2019, 12:34 am IST
For instance, analysts feel that the recent move by the US government can, skittle the exports of commodities, including Basmati rice.
Description: Given the scale of Basmati rice exports to Iran, a disruption in sales to this market can have a severe adverse impact on the Basmati rice industry.
 Given the scale of Basmati rice exports to Iran, a disruption in sales to this market can have a severe adverse impact on the Basmati rice industry.
Kolkata: India has been continuing to import crude oil from Iran despite imposition of trade sanctions on Iran. However, the Trump administration has recently withdrawn that waiver. As a result, there has been a great degree of uncertainties over India importing crude from Iran. It's not just import of crude from Iran that will be affected, but the move is likely to have wide ranging impacts.
For instance, analysts feel that the recent move by the US government can, skittle the exports of commodities, including Basmati rice. Given the scale of Basmati rice exports to Iran, a disruption in sales to this market can have a severe adverse impact on the Basmati rice industry.

The Modi government had been pushing for an extension of the waiver. However that has been to no avail. And the US government has recently announced that the waiver extended earlier will be withdrawn in the first week of May. In the eventuality of discontinuation of crude imports from Iran, payment recovery for exports of commodities like Basmati rice is bound to face high uncertainty. Interestingly, Indian crude oil imports from Iran were to the tune of Rs 70,000 crore in FY2018 against which total exports were around Rs 17,000 crore.
"Iran has remained a major export destination for Indian Basmati rice and the industry's concentration on Iran has only magnified in FY2019. Discontinuation of crude oil imports from Iran can lead to issues on recovery of outstanding dues for the Basmati rice shipments already made, hampering the financial position of such exporters. Moreover, this issue can impact the industry as a whole and even the players who do not export to Iran. Given the share of Basmati rice exports to Iran, any moderation in sales to this market can have a depressing impact on the Basmati rice prices globally," said Deepak Jotwani, Assistant Vice President, ICRA.
Jotwani said that this can severely impact the industry performance, especially considering that prices of the raw material, that is, Basmati paddy have firmed up in recent times, resulting in industry participants carrying high cost inventory. Additionally, the government's policy stance on trade with Iran, post withdrawal of the waiver, will have a strong bearing on the prospects of the Basmati rice industry in the current fiscal, he said.

https://www.deccanchronicle.com/business/economy/290419/basmati-feels-heat-of-iran-oil-curbs.html

 

Basmati feels heat of Iran oil curbs

THE ASIAN AGE. | RITWIK MUKHERJEE
Published : Apr 29, 2019, 2:35 am IST
Updated : Apr 29, 2019, 2:35 am IST
Iran has remained a major export destination for Indian Basmati rice and the industry's concentration on Iran has only magnified in FY2019.
Description: Given the scale of Basmati rice exports to Iran, a disruption in sales to this market can have a severe adverse impact on the Basmati rice industry.
 Given the scale of Basmati rice exports to Iran, a disruption in sales to this market can have a severe adverse impact on the Basmati rice industry.
Kolkata: India has been continuing to import crude oil from Iran despite imposition of trade sanctions on Iran. However, the Trump administration has recently withdrawn that waiver. As a result, there has been a great degree of uncertainties over India importing crude from Iran. It's not just import of crude from Iran that will be affected, but the move is likely to have wide ranging impacts.
For instance, analysts feel that the recent move by the US government can, skittle the exports of commodities, including Basmati rice. Given the scale of Basmati rice exports to Iran, a disruption in sales to this market can have a severe adverse impact on the Basmati rice industry.
The Modi government had been pushing for an extension of the waiver. However that has been to no avail. And the US government has recently announced that the waiver extended earlier will be withdrawn in the first week of May. In the eventuality of discontinuation of crude imports from Iran, payment recovery for exports of commodities like Basmati rice is bound to face high uncertainty. Interestingly, Indian crude oil imports from Iran were to the tune of Rs 70,000 crore in FY2018 against which total exports were around Rs 17,000 crore.
"Iran has remained a major export destination for Indian Basmati rice and the industry's concentration on Iran has only magnified in FY2019. Discontinuation of crude oil imports from Iran can lead to issues on recovery of outstanding dues for the Basmati rice shipments already made, hampering the financial position of such exporters. Moreover, this issue can impact the industry as a whole and even the players who do not export to Iran. Given the share of Basmati rice exports to Iran, any moderation in sales to this market can have a depressing impact on the Basmati rice prices globally," said Deepak Jotwani, Assistant Vice President, ICRA.
Jotwani said that this can severely impact the industry performance, especially considering that prices of the raw material, that is, Basmati paddy have firmed up in recent times, resulting in industry participants carrying high cost inventory. Additionally, the government's policy stance on trade with Iran, post withdrawal of the waiver, will have a strong bearing on the prospects of the Basmati rice industry in the current fiscal, he said.

Laos to produce over 5 mln tons of rice annually by 2025
VIENTIANE, April 29 (Xinhua) -- The Lao Ministry of Agriculture and Forestry plans to produce at least five million tons of paddy rice every year, as the country's latest five-year agricultural strategy by 2025 states. The report, a five-year development plan until 2025, states that the Lao ministry's expectation is for the Gross Domestic Product of the agriculture and forestry sector to grow at an average rate of 3.4 percent. This would mean the sector would contribute 19 percent to the national economy, local daily Vientiane Times reported on Monday. By 2025, using good agricultural planning and in cooperation with industry partners, the Lao ministry says all Lao citizens will have a daily minimum intake of 2,600 kilocalories. Each year, the Lao ministry plans for a national yield of at least five million tons of paddy rice, of which 30 percent is non-glutinous. Commercial production of paddy rice for both domestic consumption and export should reach at least 1.5 million tons. Maize production, for use in animal feed, will be more than 1.4 million tons while coffee will reach 280,000 tons, sugarcane 2.4 million tons, cassava 1.6 million tons and various beans 52,000 tons. Production of meat and eggs is to rise to 414,000 tons while fish and aquatic animal production will rise to 297,000 tons a year. Export of meat products is expected to rise to 15,000 tons as production and processing operations are modernized. Economists have urged the government to implement policies that will assist the agriculture sector and rice growers in particular. Productive agriculture is key to the eradication of poverty and improved livelihoods, the daily report said.


Surplus rice seed available for 2019-20 sowing season

By APP
Published: April 29, 2019
SHARES
Description: Rice. PHOTO: REUTERS
Rice. PHOTO: REUTERS
ISLAMABAD: For the 2019-20 Kharif sowing season, the total amount of available paddy seed is 50,192 metric tons (mt), including 2,757 metric tons of imported seeds, which is 121.28 per cent of the requirement of 41,385 metric tons.
According to official data, the total availability of paddy seed had been 74,485 metric tons, 135 per cent of the total demand, for the 2018-19 sowing season.
The data also revealed that Punjab has 41,975 metric tons of paddy seed available which is 174.83 per cent of its demand, Sindh has 5,290 metric tons, 39.74 per cent of the provincial demand, while Balochistan has 170 metric tons of seed available which is just 5.62 per cent of its demand.
For the sowing of the maize crop in 2019-20, public and private sector seed agencies procured about 32,599 metric tons of seed, including 7,799 metric tons of imported seed, which is around 112.83 per cent of the total requirement of 28,892 metric tons.
The maize seed availability during the year 2018-19 had been 32,599 metric tons which was 98 perc ent of the total demand for that year.
The provincial breakdown for the availability of maize seed indicated that it is 24,567 metric tons in Punjab, 144.77 per cent of its demand, whereas, in Khyber Pakhtunkhwa, it is 234 metric tons which is just 1.99 per cent of its provincial demand.
The data also tells us that, for the sowing of the 2019-20 Kharif crop of the ‘mung’ bean, the total seed availability is 1,401 metric tons which is only 32 per cent of the total requirement.
In Punjab, public and private sector seed agencies have procured 1,261metric tons of the seed, just 32.35 per cent of its requirement, while Khyber Pakhtunkhwa has 140 metric tons which is 62.25 per cent of its required amount. APP


e-Commerce Session Added to USA Rice Outlook Conference  

ARLINGTON, VA - Last year Americans spent more than $500 billion on e-Commerce. Three percent of that, or $16.5 billion was spent on food and beverage purchases, and experts expect that number in 2019 to approach $20 billion, outpacing the general growth of e-Commerce.  In response, USA Rice has added an exciting session to the 2019 Outlook Conference, "Transact: eCommerce Strategies & Tactics to Drive Sales."

"Whether you have a major eCommerce presence now that you are looking to expand or improve, or are a small operation thinking about making your rice products available to consumers outside your immediate area, this is going to be a great session with practical advice you'll be able to put to use immediately," said Betsy Ward, president & CEO of USA Rice.

The Outlook session will be led by Andy Halko, CEO of Transaction, an eCommerce agency specializing in helping organizations build powerful online stores that attract not just visitors - but shoppers.

"Developing innovative strategies and tactics to obliterate mediocrity, complexity, and ambiguity gets me really excited," Halko said.  "People who attend my session at the Outlook Conference will walk away with a greater understanding of eCommerce strategy and concrete steps to gain traction in the market."
 
"The Outlook programming team is always looking to add new, exciting, and useful content to the conference, so going a little further downstream, past the farm and even the mill, seemed like a great idea," said Ward.  "Halko is a dynamic presenter and his knowledge, understanding, and experience make this session a 'do not miss!'"

The USA Rice Outlook Conference is the largest rice specific event in North America. The 2019 Conference will take place from December 8-10 at the Statehouse Convention Center in Little Rock, Arkansas.  Updates are posted to the Outlook Conference website.
USA RICE DAILY


Trade at Top of Agenda for Arkansas Rice Leadership   

LITTLE ROCK, AR -- Leadership of Arkansas' rice industry engaged in a wide-ranging discussion with the Trump Administration's Chief Agriculture Negotiator here last week.  Ambassador Gregg Doud spoke before Arkansas Farm Bureau's Farm Policy Summit and then met with leadership from the state's rice producers, millers, and Arkansas Rice Federation for a round-table back and forth about the trade issues affecting the rice industry in the mid-South.

"Ambassador Doud knows our industry's issues, whether it's the critical importance of maintaining markets in Mexico and Central America, gaining access in China, or pressing for consistent sales to Iraq," said USA Rice COO Bob Cummings.  "He's a strong supporter of U.S. rice within the U.S. Trade Representative's Office and a tireless advocate for free and fair trade."

The Arkansas industry noted the declining share of U.S. rice in global rice trade and the increase in exports from countries like India and China where growth is very likely the result of domestic production subsidies.  Earlier this year the United States won a case in the World Trade Organization (WTO) against China's subsidies for wheat and rice production.  China has accepted this decision and the focus is now on China bringing its support programs into compliance with its WTO obligations.

USA RICE DAILY

Gov’t to release NFA rice in targeted areas

April 29, 2019 3:51pm 
By JON VIKTOR D. CABUENAS, GMA News
The National Food Authority (NFA) is set to release subsidized rice to targeted areas across the country, once supplies will have to be disbursed to the public.
According to National Economic and Development Authority (NEDA) Assistant Secretary Mercedita Sombilla, the government is now looking at releasing buffer stocks to the public in select areas.
"We will try to select areas where it is really most beneficial to give the NFA rice at a relatively low price," she told reporters on the sidelines of a press conference in Manila City.
Starting March 5, the NFA was only mandated to ensure that the Philippines has enough buffer stocks—30 days' worth of the country's total consumption during the lean season, and 15 days otherwise.
Under the new law, the buffer stocks will be released in areas which would be affected by disasters and calamities.
However, the commodity can only be stored by the NFA for certain periods of time until such time that they will need to be replenished.
Sombilla said that with this, the supplies will then be released to the market as commercial rice, which will most likely be priced at P27 per kilogram.
"It's going to be targeted, and that is one of the things or strategies that's going to be developed by NFA dito sa incoming reorganization nila," she said.
"Different factors 'yan—calamity, vulnerability sa calamity; deficiency ng rice; population proportion of poor households in that area. It's going to be several factors that we have to study to determine the target areas," explained Sombilla. — BM, GMA News

DA chief reports high rice yield in 3 top rice-producing regions despite El Niño

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Description: https://www.panaynews.net/wp-content/uploads/2019/04/El-Ni%C3%B1o-696x464.jpg
"Three of the country's major rice producing regions, Central Luzon, Cagayan Valley and Ilocos, have reported huge increases in their projected rice yields for 2019 Dry Season, in spite of the adverse effects of El Niño," Agriculture secretary Manny Piñol said in a Facebook post. RAPPLER
MANILA – The El Niño phenomenon did not significantly affect rice production in three rice-producing regions in the country, according to Agriculture secretary Manny Piñol.
“Three of the country’s major rice producing regions, Central Luzon, Cagayan Valley and Ilocos, have reported huge increases in their projected rice yields for 2019 Dry Season, in spite of the adverse effects of El Niño,” Piñol said in a Facebook post.
He said that Department of Agriculture’s (DA) regional directors reported a 22 percent increase on harvested rice in Central Luzon; 14.4 percent increase in Ilocos; and 2.16 percent increase in Cagayan Valley, compared to the recorded rice yield from last year.
“The three Regional Directors reported that rice production in their areas was not affected by El Niño because the planted areas for the season are all irrigated,” Piñol added.
He also attributed the high yield to the increase in the use of good quality seeds in the last three years.
Piñol added that wet season planting in the said regions will start in early May to avoid agricultural loss due to the onslaught of tropical cyclones that usually hit Northern Luzon provinces towards the end of the year.
In recent months, some provinces, including Albay and Cebu declared a state of calamity due to the agricultural damages caused by the El Niño phenomenon.
As of early April, the DA pegged the cost of agricultural losses brought about by the El Niño phenomenon to P5.05 billion.
PAGASA, meanwhile, reported that rainfall across the country is expected to normalize by July. (GMA News)

Faster importation of rice seen under tariffication law

The removal of the National Food Authority from the importation process is expected to cut the time needed to process import permits
Anna Gabriela A. Mogato
Published 3:20 PM, April 29, 2019
Updated 3:20 PM, April 29, 2019
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SWIFTER IMPORTATION. The government is expecting more rice to enter the Philippines after the passage of the rice tariffication law. File photo by Jire Carreon/Rappler
MANILA, Philippines – The government is expecting imported rice to enter the country more quickly under Republic Act (RA) No. 11203 or the rice tariffication law, which streamlines the importation process.
Trade Secretary Ramon Lopez, in a press briefing on Monday, April 29, pointed to the exclusion of the National Food Authority (NFA) from the importation process, as the agency's role has been limited to buffer stocking.
"[Before] 'di mo masabi kung one week or two weeks kung makakuha ng import permit sa NFA, kung papayagan ka mag-import," he said.
(Before, you couldn't say if in one week or two weeks you'd be able to get an import permit from the NFA, or if you would even be allowed to import at all.)
Lopez also noted that the only permit needed is the sanitary and phytosanitary import clearance from the Bureau of Plant Industry.
"The rest is really the usual importation procedure and the shipment, kaya kung tutuusin, 3 weeks, 4 weeks nandiyan na ang bigas," he said.
(The rest is really the usual importation procedure and the shipment so really, in 3 weeks or 4 weeks, the rice would already arrive here.)
Socioeconomic Planning Assistant Secretary Mercedita Sombilla also said that it previously took 2 to 3 months to import under the government-to-private sector scheme.
"So [the new scheme is] very, much faster than what was experienced when NFA was giving the licenses to import," she added.
Under the draft process on milled rice importation, the application for an importation permit will only take 28 days, if registration with the Philippine International Trading Corporation is not included.
Agriculture Undersecretary for Operations Ariel Cayanan also said that with the passage of RA No. 11032 or the Ease of Doing Business Act, "the whole process from accreditation to importation" would be streamlined.
Trade Undersecretary for Consumer Protection Group Ruth Castelo added that RA No. 9485 or the Anti-Red Tape Act of 2007 states that simple transactions should be processed within a maximum of 3 days.
The rice tariffication law was signed last February, while its implementing rules and regulations was approved in March. (READ: What's inside the IRR of the rice tariffication law?– Rappler.com

We mean business


Better trading with Rice Tariffication Law

DAVAO. Neda-Davao Director Maria Lourdes Lim said the regulation of rice trading will address the problems such as rice production shortages in the region. (File Photo)
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April 26, 2019
NATIONAL Economic and Development Authority (Neda)-Davao expects regularization of rice trading, competitive rice production, and other developments of the sector in the region with the passage of the Rice Tariffication Law.

Neda-Davao Director Maria Lourdes Lim said in a news conference on Thursday, April 25, that the regulation will address the problems such as rice production shortage in the region. 

Lim discussed their outlook in 2019 to surpass the 8.6 percent Gross Regional Domestic Product (GRDP) growth in 2018, which includes improvement of rice productivity through the Rice Competitiveness Enhancement Fund (RCEF) of the rice tariffication law.

“In terms of RCEF appropriations to the region, we have to get our fair share in terms of this financial support to rice farmers and rice farmer associations and cooperatives,” Lim said.

“The modernization of this sub-sector shall be underway with the provision of farm machineries and tractors. Post and pre-harvest equipment for rice farming will also be provided. This will be spearheaded by Department of Agriculture 11,” she added.

Republic Act 11203 or the Rice Tariffication Law is “the policy of the State to ensure food security and to make the country’s agricultural sector viable, effective and globally competitive. The State adopts the use of tariffs in lieu of non-tariff import restrictions to protect local producers of agricultural products.”

A data presented by the Philippine Statistics Authority-Davao on Thursday, April 25, showed that the agriculture, hunting, forestry and fishing sector contributed 0.3 percent in the region’s economic growth in 2018. Its sub-sectors, the agriculture and forestry, shared 3.5 percent.


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Piñol reiterates attainment of rice self-sufficiency

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By Tara Yap
ILOILO CITY— Agriculture Secretary Manny Piñol reiterated the assurance that the country will meet its target for rice self-sufficiency.
Description: MB File- Department of Agriculture Secretary Manny Piñol (Mark Balmores|Manila Bulletin)
Department of Agriculture Secretary Manny Piñol (MARK BALMORES / MANILA BULLETIN FILE PHOTO)
“We will be able to achieve rice sufficiency,” said Piñol at Department of Agriculture’s second quarter management committee (ManCom) meeting in Nueva Valencia town, Guimaras province Thursday.
Statistics show that rice production dropped to 19.05 million metric tons last year. In comparison, it was 19.28 million metric tons in 2017.
“Our adoption rate of hybrid at inbred seeds is only 60 percent, but we are already hitting 19 million metric tons,” noted Piñol.
According to the agriculture chief, the use of hybrid seeds could generate an additional two million metric tons and reach the target of 21 million metric tons.
To reverse the decline, Piñol wants to fully implement the Rice Competitiveness Enhancement Fund (RCEF), which is planned to be a P10-billion annual program. Piñol wants to utilize P3 billion for procurement of good seeds to be given free to farmers.
Piñol also wanted to build an additional 6,200 units of solar-powered irrigation system that aims to irrigate 500,000 hectares.

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N. Korea calls for greater rice production amid chronic food shortages

All Headlines 14:47 April 29, 2019
    
SEOUL, April 29 (Yonhap) -- North Korea's official newspaper urged its people on Monday to produce more rice as part of self-reliance efforts to cope with the crippling global sanctions against its regime.
Pyongyang has been intensifying calls for self-reliance, apparently to strengthen national unity amid stalled denuclearization negotiations with the United States and a bleak outlook on sanctions being lifted or eased anytime soon.
"The sound of gunfire for relentless victory against hostile forces' machination to crush (us) to death with sanctions starts from the farming frontline," the Rodong Sinmun, the organ of the North's ruling party, said in a commentary.
"Farming is a breakthrough of victory that will clear the road to our grand march to self-reliance," the paper added. "In order to raise the nation-first banner higher and shore up our socialist house stronger, (we) definitely need more rice. ... Rice is more precious than gold."
The emphasis on rice production can be seen as intended to encourage its people to work hard ahead of the full farming season so as to tackle the country's chronic food shortages, which are aggravated by United States-led sanctions.
North Korea's food situation appears to be worsening amid prolonged sanctions. Pyongyang had hoped that February's summit between leader Kim Jong-un and U.S. President Donald Trump would lead to a breakthrough enabling sanctions relief, but the meeting ended without agreement.
According to a recent report by the United Nations Food and Agriculture Organization, about 10.9 million people in North Korea are deemed "food insecure," accounting for 43 percent of the North's total population. In particular, one out five children in the North faces "chronic malnutrition."
The World Food Program earlier reported that it provided 1,000 tons of food materials to North Korea from February to March this year, adding that around 450,000 people, mostly pregnant women and kids, benefited from the help.
kokobj@yna.co.kr
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Laos to produce over 5 mln tons of rice annually by 2025

Source: Xinhua| 2019-04-29 14:28:55|Editor: mingmei
VIENTIANE, April 29 (Xinhua) -- The Lao Ministry of Agriculture and Forestry plans to produce at least five million tons of paddy rice every year, as the country's latest five-year agricultural strategy by 2025 states.
The report, a five-year development plan until 2025, states that the Lao ministry's expectation is for the Gross Domestic Product of the agriculture and forestry sector to grow at an average rate of 3.4 percent. This would mean the sector would contribute 19 percent to the national economy, local daily Vientiane Times reported on Monday.
By 2025, using good agricultural planning and in cooperation with industry partners, the Lao ministry says all Lao citizens will have a daily minimum intake of 2,600 kilocalories.
Each year, the Lao ministry plans for a national yield of at least five million tons of paddy rice, of which 30 percent is non-glutinous.
Commercial production of paddy rice for both domestic consumption and export should reach at least 1.5 million tons.
Maize production, for use in animal feed, will be more than 1.4 million tons while coffee will reach 280,000 tons, sugarcane 2.4 million tons, cassava 1.6 million tons and various beans 52,000 tons.
Production of meat and eggs is to rise to 414,000 tons while fish and aquatic animal production will rise to 297,000 tons a year. Export of meat products is expected to rise to 15,000 tons as production and processing operations are modernized.
Economists have urged the government to implement policies that will assist the agriculture sector and rice growers in particular. Productive agriculture is key to the eradication of poverty and improved livelihoods, the daily report said.

Surplus rice seed available for 2019-20 sowing season

By APP
Published: April 29, 2019
SHARES
Description: Rice. PHOTO: REUTERS
Rice. PHOTO: REUTERS
ISLAMABAD: For the 2019-20 Kharif sowing season, the total amount of available paddy seed is 50,192 metric tons (mt), including 2,757 metric tons of imported seeds, which is 121.28 per cent of the requirement of 41,385 metric tons.
According to official data, the total availability of paddy seed had been 74,485 metric tons, 135 per cent of the total demand, for the 2018-19 sowing season.
The data also revealed that Punjab has 41,975 metric tons of paddy seed available which is 174.83 per cent of its demand, Sindh has 5,290 metric tons, 39.74 per cent of the provincial demand, while Balochistan has 170 metric tons of seed available which is just 5.62 per cent of its demand.
For the sowing of the maize crop in 2019-20, public and private sector seed agencies procured about 32,599 metric tons of seed, including 7,799 metric tons of imported seed, which is around 112.83 per cent of the total requirement of 28,892 metric tons.
The maize seed availability during the year 2018-19 had been 32,599 metric tons which was 98 perc ent of the total demand for that year.
The provincial breakdown for the availability of maize seed indicated that it is 24,567 metric tons in Punjab, 144.77 per cent of its demand, whereas, in Khyber Pakhtunkhwa, it is 234 metric tons which is just 1.99 per cent of its provincial demand.
The data also tells us that, for the sowing of the 2019-20 Kharif crop of the ‘mung’ bean, the total seed availability is 1,401 metric tons which is only 32 per cent of the total requirement.
In Punjab, public and private sector seed agencies have procured 1,261metric tons of the seed, just 32.35 per cent of its requirement, while Khyber Pakhtunkhwa has 140 metric tons which is 62.25 per cent of its required amount. APP