14h July (Tuesday),2015 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

July  14,  2015 Vol  5 ,Issue VII

 

Italian 2015 Rice Acreage Estimated to Increase 3.2% y/y to 226,600 Hectres

Jul 13, 2015

Based on the survey of Italian rice farmers, Ente Nazionale Risi, the National Agency for Rice estimates Italian rice acreage to increase about 3.2% to around 226,600 hectares from around 219,532 tons in 2014.

About 50% or around 1,944 farmers have been surveyed. The agency has instructed all the farmers to furnish their rice planting details by July 10, 2015

According to latest data available as on July 10, round varieties are expected to be planted in about 57,700 hectares, up about 9.56% from around 52,667 hectares last year. Medium rice acreage is expected to increase about 21.81% y/y to around 8,600 hectares. Long A acreage is expected to increase about 21.14% y/y to around 126,600 hectares and Long B acreage is expected to decline about 39.06% y/y to around 226,600 hectares.

Falling Production Expected to Tighten U.S. Rice Supplies in MY 2015-16 , Says USDA

Jul 13, 2015

In its latest World Agricultural Demand and Supply Estimates (WASDE) report, USDA estimates U.S. 2015-16 all rice supplies at around 12.63 million tons, down about 4% from last month's estimates of around 13.13 million tons due to an expected decline in production. It expects U.S. long-grain rice supply at around 9.05 million tons. down about 6% from its last month's estimate of around 9.62 million tons. However, it estimates U.S. short and medium grain rice supply at around 3.47 million tons, slightly up from last month's estimates of 3.4 million tons.

USDA estimates U.S. all rice production (milled basis) at around 9.39 million tons, down from last month's estimate of 9.93 million tons due to an estimated decline in paddy rice acreage. Long-grain rice production is estimated at around 6.92 million tons, down from last month's estimate of 7.35 million tons; and short- and medium- grain production is estimated at around 2.47 million tons, down from last month's estimate of 2.59 million tons. It forecasts 2105-16 production to decline about 6% from an estimated 10.02 million tons last year.

U.S. 2015-16 paddy rice acreage to estimated at around 1.108 million hectares, down from last month's estimates of around 1.17 million hectares. It forecasts 2105-16 paddy rice acreage to decline about 6% from an estimated 1.18 million hectares last year. USDA estimates 2015-16 all rice use at around 10.89 million tons, down from last month's estimates of around 10.93 million tons due to an estimated decline in domestic & residual use since exports are estimated to be unchanged from last month. It estimates domestic & residual use of all rice at around 5.90 million tons from last month's estimates of around 5.94 million tons and the decline is expected in long-grain domestic use.It estimates 2015-16 ending stocks 1.74 million tons from last months's forecast of 2.2 million tons due to an estimated decline in both long-grain and short-grain rice stocks.USDA estimates an increase in the average farm price of all rice and long-grain rice.

Global Rice Quotes

July 13th, 2015

Long grain white rice - high quality

Thailand 100% B grade          395-405           ↑

Vietnam 5% broken    345-355           ↔

India 5% broken         385-395           ↑

Pakistan 5% broken    375-385           ↑

Myanmar 5% broken   415-425           ↔

Cambodia 5% broken             425-435           ↔

U.S. 4% broken           470-480           ↔

Uruguay 5% broken    535-545           ↔

Argentina 5% broken 530-540           ↔

Long grain white rice - low quality

Thailand 25% broken 360-370           ↑

Vietnam 25% broken 325-335           ↔

Pakistan 25% broken 335-345           ↑

Cambodia 25% broken           410-420           ↔

India 25% broken       350-360           ↔

U.S. 15% broken         445-455           ↔

Long grain parboiled rice

Thailand parboiled 100% stxd            395-405           ↑

Pakistan parboiled 5% broken stxd    415-425           ↔

India parboiled 5% broken stxd         370-380           ↓

U.S. parboiled 4% broken       555-565           ↔

Brazil parboiled 5% broken    545-555           ↔

Uruguay parboiled 5% broken            NQ      ↔

Long grain fragrant rice

Thailand Hommali 92%          865-875           ↔

Vietnam Jasmine         490-500           ↔

India basmati 2% broken        NQ      ↔

Pakistan basmati 2% broken   NQ      ↔

Cambodia Phka Mails             835-845           ↔

Brokens

Thailand A1 Super      315-325           ↔

Vietnam 100% broken            310-320           ↔

Pakistan 100% broken stxd    285-295           ↔

Cambodia A1 Super   350-360           ↔

India 100% broken stxd         295-305           ↔

Egypt medium grain brokens NQ      ↔

U.S. pet food 350-360           ↔

Brazil half grain          NQ      ↔

All prices USD per ton, FOB vessel, oryza.com

European Commission Plans to Import Vietnam Rice at Zero Percent Duty

Jul 13, 2015

The European Commission (EC) is planning to import rice from Vietnam at zero percent duty within the framework of the negotiations on 'free trade agreement', according to the website www.risoitaliano.eu.

The EC is reportedly planning to import round 76,000 tons of rice, including 30,000 tons of jasmine rice, 30,000 tons of Long B milled rice and 16,000 tons of husked rice from Vietnam under the agreement.

Currently EU imports rice at zero percent duty from Asian least developed countries (LDCs) such as Cambodia and Myanmar under the Everything But Arms (EBA) agreement. The latest decision is not reportedly well received by the European rice growing sector, which has been already urging the EC to curb increasing rice imports from the Asian LDCs in order to protect the local rice sector.

The Italian rice sector, particularly, has been seeking a safeguard clause against rice imports from Asian LDCs under the EBA agreement. However, with the latest development, there are concerns among the Italian rice sector as well as other EU rice growers on the EC's plans of adopting a safeguard clause against the EBA rice imports.

The European rice sector is now fearing whether the EU may also consider including Thailand rice under the agreement eventually. They say the EU market is already flooded with the Asian rice and is undermining the local rice varieties. The EU currently imports around 300,000 tons of rice from the EBA countries.

FAO Estimates Indonesia 2015 Rice Imports to Decline Due to Favorable Production Outlook

Jul 13, 2015

The UN's Food and Agriculture Organization (FAO) estimates Indonesia to import around 900,000 tons of rice in 2015, down about 10% from an estimated one million tons last year due to a favorable outlook for 2015 aggregate rice production and self-sufficiency policies. It estimates Indonesia's total cereal imports in 2015-16 at around 11.8 million tons, up about 2% from around 11.57 million tons last year.

The FAO estimates Indonesia's 2015 aggregate paddy rice production at around 75.6 million tons (around 48.34 million tons of rice, basis milled), up about 7% from an estimated 70.61 million tons (around 45.2 million tons of rice, basis milled) in 2014.

Harvesting of the 2015 main season paddy crop (mid-October to mid-May) is complete. Rains have improved across the country since December 2014 despite a slow start of the 2014-15 rainy season (November - March). Favourable weather conditions, coupled with diverse initiatives launched by the government to support production, including the rehabilitation of irrigation channels, distribution of subsidized seeds and fertilizers, are expected to increase the yields of the 2015 main season, says the FAO. It also expects a slight expansion in area planted for the 2015 secondary season rice crop (June to mid-December), which is now at the planting stage.

The country's aggregate rice production is expected to be impacted by the onset of a weak to moderate El Nino event. Global meteorological and oceanic institutions are predicting the El Nin effect to continue throughout 2015 and first months of 2016.

The government has been aiming to achieve self-sufficiency in rice production this year and accordingly has been providing  support to the sector.

Average rice prices have been increasing since September 2014 and have reached record levels in March 2015. However, since April, prices reversed direction due to the government intervention as well as increased supplies from the 2015 main season rice crop. However, prices are supported by lower rice imports in January - May this year compared to the same period last year. Currently, prices stand at around 9.875 million Rupiah (around $751) per ton, down from around 10 million Rupiah (around $770) per ton in April 2015 and down about 12.5% from their year ago levels, according to the FAO price data.

USDA estimates Indonesia to produce around 36.3 million tons of rice, basis milled (around 57.17 million tons, basis paddy), and import around 1.25 million tons of rice in MY 2014-15 (October - September).

Oryza Afternoon Recap - Chicago Rough Rice Futures Trade Lower as Market Continues to Weigh USDA Report Results

Chicago rough rice futures for Sep delivery settled 15 cents per cwt (about $3 per ton) lower at $10.935 per cwt (about $241 per ton). The other grains finished with mixed results today; Soybeans closed about 0.7% higher at $10.2900 per bushel; wheat finished about 0.1% lower at $5.7550 per bushel, and corn finished the day about 1.7% higher at $4.5225 per bushel.

U.S. stocks rallied nearly 1% or more on Monday, following gains overseas, on news of a bailout agreement between Greece and its creditors. European Council President Donald Tusk said early on Monday that euro zone leaders reached an unanimous agreement with Greece after all-night talks in Brussels to move forward with a bailout loan for the cash-strapped nation, provided Athens implement tough reforms. To receive this third bailout, Greece's parliament must pass the new rules in areas such as privatization, labor laws and pension reforms by Wednesday.

 The 86 billion euro ($95.2 billion) in funds would come over three years. In the meantime, euro zone finance ministers were expected to discuss Monday how to keep Greece financed before the bailout deal is reached. Athens faces a 7 billion euro repayment deadline on July 20 to the European Central Bank. European stocks jumped on news of the conditional Greece deal, with the German DAX up about 1.5% and the STOXX Europe 600 up nearly 2%. In Asia, stocks surged with the Nikkei up 1.57% and the Shanghai Composite leaping 2.4% as it extended a recovery from a recent plunge.

 No economic data or earnings of note are expected Monday. The Dow Jones Industrial Average traded up 176 points, or 0.99%, at 17,936. The S&P 500 traded up 18 points, or 0.86%, at 2,094, with information technology leading nine sectors higher and utilities the only decliner. The Nasdaq traded up 64 points, or 1.28%, at 5,061. Gold is trading about 0.2% lower, crude oil is seen trading unchanged, and the U.S. dollar is seen trading at about 0.7% higher at about  1:15pm Chicago time.

Friday, there were 1,154 contracts traded, up from 575 contracts traded on Thursday. Open interest – the number of contracts outstanding – on Friday increased by 116 contracts to 9,395.

Conab Estimates Brazil 2014-15 Paddy Rice Production to Increase 3% y/y to 12.499 Million Tons

Jul 13, 2015

Brazil’s National Grains Supply Company (Conab) has forecasted the country's 2014-15 paddy rice production at around 12.499 million tons (around 8.50 million tons, basis milled), up about 3% from around 12.121 million tons (around 8.24 million tons, basis milled) in 2013-14, and slightly down from its June forecast of around 12.544 million tons.

Conab has estimated Brazil's 2014-15 paddy rice acreage at around 2.292 million hectares, down about 3.4% from around 2.373 million hectares in 2013-14. Paddy rice acreage in the key rice growing Centro-Sul (Center-South) region is projected at 1.548 million hectares in 2014-15, down about 1% from around 1.565 million hectares in 2013-14. Rice acreage in the North/Northeast regions is estimated at around 747,600 hectares, down 7.5% from around 808,400 hectares in 2013-14.

Average rice yield in Brazil in 2014-15 is projected at around 5.5 tons per hectare, up about 7.6% from around 5.11 tons per hectare recorded in the previous year.USDA estimates Brazil MY 2015-16 (April – March) paddy rice production at around 11.765 million tons (around 8 million tons, basis milled), down about 6% from an estimated 12.500 million tons (around 8.5 million tons, basis milled) in MY 2014-15. It estimates Brazil’s 2015-16 paddy rice acreage to decline slightly to around 2.3 million hectares.  USDA estimates Brazil to export around one million tons of rice and import around 550,000 tons of rice in 2015.

Philippines Rice Stocks Sufficient for 89 Days, Says BAS

Jul 13, 2015

The Philippines rice stocks have declined in June 2015 after increasing in April and May, according to the Bureau of Agricultural Statistics (BAS).

Total rice stocks in the Philippines as of June 1, 2015 reached around 3.02 million tons, down about 5% from around 3.17 million tons recorded in May 2015, and up about 31% from around 2.31 million tons recorded during the same period last year.

According to the BAS, household stocks (which account for about 38.5% of total rice stocks in the country) have reached around 1.16 million tons as of June 1, 2015, up about 7% from year-ago levels of around 1.08 million tons. Commercial warehouse rice stocks (which account for about 36.7% of total stocks) have reached around 1.11 million tons as of June 1, 2015, up about 35% from their year-ago levels of around 820,000 tons. The rice stocks with the National Food Authority (NFA) (which account for 24.8% of total stocks) stood at around 750,000 tons, up about 83% from around 410,000 tons recorded in June 2014.

Month-on-month, household rice stocks are down about 22%, commercial warehouse rice stocks are up about % and NFA rice stocks - in which about 91.5% are imported rice - are up about 22%, according to the BAS.

The BAS says that the Philippines' rice stocks as of June 1, 2015 are enough to last for 89 days (household stocks are enough for 34 days, commercial warehouses stocks are enough for 33 days and stocks with NFA are enough for 22 days).

The government is planning to ramp up imports to ensure adequate stocks and avoid price hikes in the country. The National Food Authority (NFA) has decided to import 650,000 tons of rice (200,000 tons from Thailand and 450,000 tons from Vietnam) under government-to-government deals in 2015 to ensure adequate stocks in the lean season (June – September). It is further planning to import 805,200 tons of rice through private importers under the WTO minimum access volume (MAV) rule. It imported more than 1.8 million tons of rice (including 1.5 million tons of 2014 imports and 300,000 tons of 2013 residual imports) in 2014 to replenish rice stocks and control price hikes.

Oryza U.S. Rough Rice Recap - Prices Dip with Futures; Crop Condition Improves by 1%

Jul 13, 2015

The U.S. cash market was softer today falling in sympathy with the futures market as more sellers came to the market looking to their remaining old crop before the upcoming harvest.

In the meantime, the USDA estimates that as of July 12^th,  30% of the crop had headed which was 5% ahead of this time last year and 8% ahead of the previous 5-year average. As of now, the USDA estimates that 18% of the rice crop in Arkansas had headed compared to , 17% in California, 75% in Louisiana, 32% in Mississippi, 22% in Missouri, and 54% in Texas.

The USDA estimates that 71% percent of the crop in good to excellent condition, which was 1% better than week and 1% better this time last year. As of now, the USDA estimates that 69% of the crop in Arkansas is in good to excellent condition compared to, 85% in California, 71% in Louisiana, 78% in Mississippi, 59% in Missouri, and 53% in Texas.

Pakistan Targets to Produce 6.9 Million Tons of Milled Rice in 2015-16, Says SUPARCO-FAO Report

Jul 13, 2015

In the July Crop Monitoring System Bulletin, the National Space Agency of Pakistan (SUPARCO) and UN’s Food and Agriculture Organization (FAO) report that the Federal Committee on Agriculture (FCA) has fixed the 2015- 16 (July - June) milled rice production target at around 6.902 million tons (around 10.21 million tons, basis paddy) from around 2.836 million hectares. It is targeting an yield of around 2.434 tons per hectare in 2015-16.

The rice is majorly grown in Punjab, Sindh, KP and Balochistan provinces.While transplanting of the IRRI rice for the current kharif crop is ongoing, transplanting of basmati will be start in July and complete in August. Based on the deliberations of field teams, SUPARCO reports that the farmers are generally unwilling to sow this year's kharif crop due to marketing problems faced last year. Some farmers are reportedly holding stocks from last year. They expect the rice planting area to decline in some areas of southern and central Punjab and Sindh.

The FAO-SUPARCO expect higher water requirement due to a persisting heat wave in Karachi, Larkana, Dadu, Hyderabad, Turbat, Sibbi and Southern

Punjab.

USDA estimates Pakistan's MY 2014-15 (November - October) milled rice production to increase about 3% to around 6.9 million tons (around 10.35 million tons, basis paddy) from around 6.7 million tons last year.

Thai Rice Traders Urge Government to Speed Up Rotten Rice Sales

Jul 13, 2015

Thailand rice traders are urging the government to speed up sales of rotten rice stocks to take advantage of the high demand in the market amid concerns of falling production due to drought conditions, according to local sources.

Last week, the government decided to auction about 1.29 million tons of rotten rice to biogas producers.

However, traders noted that the government should open the auction to general bidders in order to get a better price. They noted that rotten rice can fetch about 4-5 baht per kilogram (around $118 - $147 per ton). But inviting only biogas producers for auction may pull the price to as low as 1-2 baht per kilogram (around $29 - $59 per ton), they said.

They assured that the traders would not mix rotten rice with rice meant for consumption as their reputation would also be at stake.

The President of the Thai Rice Millers Association (TRMA) noted that both domestic and export prices have improved over last three weeks. As of July 10, 2015, white paddy rice was quoted at 8,200 baht per ton (around $241) and jasmine paddy rice (Thai Hom Mali rice) was quoted at 13,000-15,000 baht per ton (around $382-$441). Export prices of Thai 5% rice are quoted at around $390 per ton from around $381 per ton last week, and those of Thai Hom Mali rice increased to around $1,046 per ton compared to $1,037 per ton last week. 

Meanwhile, the Honorary President of the Thai Rice Exporters Association (TREA) noted that they have lowered the export target to around 9.5 million tons from around 10 million tons due to a possible fall in production due to drought and increase in domestic demand, according to Reuters.

However, they are expecting a higher buying interest from African countries.

Thailand Forecasts 2015 Main Rice Crop Output to Decline 14% to 23.3 Million Tons Due to Drought

Jul 13, 2015

Thailand's Office of Agricultural Economics (OAE) estimates output from 2015 main rice crop, which contributes to around 70% of the country's total rice output, to decline about 14% to around 23.3 million tons from around 27.1 million tons last year due to persisting drought conditions, according to Bloomberg.

The OAE estimates the 2015 main rice area to decline to around 56.7 million rai (around 22.68 million hectares) from around 61.8 million rai (around 24.72 million hectares) last year.

The Director of the Center for Agriculture Information told reports that production is expected to decline across Thailand.

USDA Post Estimates MY 2015-16 Brazil Rice Exports to Remain Stable at 900,000 Tons

Jul 13, 2015

The USDA Post is estimating Brazil's MY 2015-16 (April 2015 - March 2016) rice exports at around 900,000 tons, unchanged from MY 2014-15 and USDA's official estimates. The Post says the pace of exports in 2015 until May has been generally low in line with the global trend.

Earlier, in April, the Post reported that with the U.S. relaxing trade restrictions with Cuba, Brazil is concerned that the U.S. may cut into its market share in Cuba because of the competitive pricing by the U.S. as well as its proximity and shipping costs. Cuba accounted for about 11% of Brazil's rice exports in 2014 and remained the third largest importer of the Brazilian rice after Venezuela and Senegal.

The Post estimates MY 2015-16 Brazil rice imports at around 700,000 tons, unchanged from MY 2014-15 and USDA's official estimates.

It estimates MY 2015-16 milled rice production at around 8.3 million tons, down about 2% from last year; and up about 4% from USDA's official estimates, assuming normal weather. The Post estimates Brazil's 2015-16 paddy rice acreage at last year's level of 2.45 million hectares.

The Post estimates 2015-16 Brazil's milled rice consumption at around 7.95 million tons, down from last year's 8 million tons and unchanged from USDA's official forecasts. It estimates 2014-15 Brazil's ending stocks to increase about 16% to around 1.082 million tons from an estimated 932,000 tons last year.    

Thailand, Pakistan Rice Sellers Increase Some of Their Quotes Today; India Rice Quotes Mixed

Jul 13, 2015

Thailand rice sellers increased their quotes for 5% , 25% broken rice, and parboiled rice by about $5 per ton each to around $385-$395 per ton, $360-$370 per ton and $395-$405 per ton respectively today. India rice sellers increased their quotes for 5% broken rice by about $5 per ton to around $385-$395 per ton and lowered their quotes for parboiled rice by about $5 per ton to around $370-$380 per ton. Pakistan rice sellers increased their quotes for 5% broken rice and 25% broken rice by about $5 per ton each to around $375-$385 per ton and $335-$345 per ton respectively. Vietnam rice sellers kept their quotes mostly unchanged today.    

5% Broken Rice

Thailand 5% rice is indicated at around $385 - $395 per ton, up about a $5 per ton from Friday and  about a $40 per ton premium on Vietnam 5% rice  shown at around $345 - $355 per ton. India 5% rice is indicated at around $385 - $395 per ton, up about a $5 per ton from Friday  and about $10 per ton premium on Pakistan 5% rice shown at around $375 - $385 per ton, up about a $5 per ton from Friday.

25% Broken Rice

Thailand 25% rice is shown at around $360 - $370 per ton, up about a $5 per ton from Friday and about a $35 per ton premium on Vietnam 25% rice shown at around $325- $335 per ton. India 25% rice is indicated at around $350 - $360, about $15 per ton premium on Pakistan 25% rice shown at around $335 - $345per ton, up about a $5 per ton from Friday.

Parboiled Rice

Thailand parboiled rice is indicated at around $395 - $405 per ton, up about a $5 per ton from Friday. India parboiled rice is indicated at around $370- $380 per ton, down about a $5 per ton from Friday  and about a $45 per ton discount to Pakistan parboiled rice shown at around $415 - $425 per ton.                                                                                                                  

100% Broken Rice

Thailand broken rice, A1 Super, is indicated at around $315 - $325 per ton, on par with Vietnam 100% broken rice shown at around $315 - $325 per ton. India's 100% broken rice is shown at around $295 - $305 per ton, about a $10 per ton premium on  Pakistan broken sortexed rice shown at around $285 - $295 per ton.

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14h July (Tuesday),2015Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

13th July(Monday),2015 Daily Global Rice E-Newsletter by Riceplus Magazine

UNISAME REMINDS COMMERCE MINISTER TO ADDRESS BARTER, CURRENCY SWAP, BORDER, e-COMMERCE & TRANSACTION COST IN TRADE POLICY

The Union of Small and Medium Enterprises (UNISAME) urged federal commerce minister Engineer Khurram Dastagir to ensure the trade policy is well aligned and comprehensive to include and promote barter trade, currency swaps, border trade and measures to curb increasing transaction cost.President UNISAME Zulfikar Thaver invited the attention of the federal minister to the proposals submitted by UNISAME through the Small and Medium Enterprises Development Authority (SMEDA) and reminded him of the importance of the ministry's best consideration for the proposals from the majority sector.

Thaver pointed out that the ministry of commerce ( MINCOM) cannot afford to ignore the barter trade in view of the changing global practices and the crisis being faced by the commodities market. Many industries of rice, wheat, maize,spices, food processing and cotton ginning have closed down due to the global commodities crisis.  MINCOM also needs to facilitate third country trading whereby Pakistani entrepreneurs could secure orders of goods manufactured by other countries and sell them to their customers in another country. The entrepreneurs need the facility of switching the bill of lading and opening back to back letter of credit. There is no gateway facility for e-Commerce and the opening of merchant account and its maintenance is very high in Pakistan as only very few banks are offering this facility in Pakistan.

Secondly the MINCOM needs to work hard on the currency swap agreements with the neighbouring friendly countries to promote handsome trade.Thirdly the MINCOM needs to facilitate the border trade to puncture the benefits of smuggling.Fourthly the transaction cost has become unaffordable due to the advising, discounting and negotiation charges of banks and documentation charges of shipping companies. Even the courier charges are beyond comprehension.Fifthly the role of the Trading Corporation of Pakistan (TDAP) and the Trading Corporation of Pakistan (TCP) must be revisited and reinforced on modern lines. The TDAP needs to set up the SME export house with complete infrastructure to promote the export of wares of the sector.

UNISAME had earlier recommended to MINCOM to make doing business easy and implement the one window operation in letter and spirit. Needless to say the overseas Pakistanis and foreign investors are looking forward to incentives and tax exemptions for innovative and import substitution industries besides agro based industries.Now that the law and order situation has improved and the government is endeavouring to improve the energy supplies with alternate energy especially the solar programme, the investors are inclined to invest in Pakistan to set up industries and effort must be made to facilitate them.

Farmers threaten to launch protest drive

Kisan Ittehad wants TCP to procure cotton, rice.—Online/File

LAHORE: Pakistan Kisan Ittehad has threatened to “storm Lahore, hold a big protest rally and stage a sit-in in front of the Punjab Assembly,” if the government does not reign in cost of production or announce support price of cotton and rice.Talking to newsmen on Saturday, its President Khalid Khokhar demanded that the Trading Corporation of Pakistan (TCP) procure both the crops at officially declared price and it must purchase at least four to five million bales of cotton and around one million ton rice.

Khokhar insisted that the ever-increasing cost of production had destroyed economy of farmers, pushing millions more below the poverty line. “The farmers of cotton, rice and cane, on average, are losing around Rs75,000 per acre every year because of gap between cost of production and price of sale,” he claimed.He said: “The cotton production costs farmers around Rs3,235 per maund, whereas it fetches only Rs2,200 per 40 kilo. Similarly, the gap between investment and income in case of paddy is around Rs700 per maund. The cane is sold at Rs180 per maund against its cost of production of Rs202 per 40-kg. The cumulative loss of these crops turned out to be Rs74,800 if calculated at yield of 26 maunds for cotton, 35 maunds for rice and 750 maunds for cane. Even these yield figures are higher than national average, and only better farmers touch them. Even this higher figure does not reduce the quantum of loss.”

________________________________________

Kisan Ittehad wants TCP to procure cotton, rice

________________________________________

Because of these high losses, the farmers are left with no option but to either press the government for action or resort to protest, he said, adding: “The government can still retrieve the situation by abolishing general sales tax on inputs and straightaway bring the cost of production down by 17pc.”Secondly, Khokhar said, the government should design the subsidy package in a way that the entire farming community benefits from them, instead of a selected few. Thirdly, for immediate relief to farmers, it must induct TCP into procurement of cotton and rice so that market sentiment could be stabilised on the higher side. Unless, the government takes these steps to save farmers and farming in the country, the growers would be pressed hard for agitation.

The situation is turning dire for the farming community, as shown by the figures above. For how long the government expects farmers to lose money on farming, he wondered.One should not forget that all three crops are so-called cash crops, which are supposed to sustain life for farmers and also enable them to invest in food crop. With cash crops turning into a loss-making effort, the food crops are bound to suffer and generate bigger social crisis in the country by threatening food security, he said.The farmers leader warned the PML-N that if growers continue losing money on every crop, it should get ready for different results of the local bodies elections, which it plans to hold this September.

The farmers have been taking to the streets regularly. It is time for the government to come up with a rescue package for farmers. Otherwise, the farmers are determined to take out even bigger protest rallies after Eid, he warned.Published in Dawn, July 12th, 2015http://www.dawn.com/news/1193966

NFA-XI appeals for calm on fake rice reports

 July 13, 2015  PIA 11-Joey Sem G. Dalumpines

DAVAO CITY, July 13 (PIA) Authorities in the grains sector appealed to the public that there is no cause for alarm on reports about fake rice.Dianne Silva, regional manager of the National Food Authority said there is no need to panic since nothing is still conclusive on the laboratory checks on rice complained to be fake.“So far only the rice complained about as fake showed a contaminant while other samples showed negative result,” she said.

Silva said a special investigation task force formed by the police to look into the problem failed to see questionable rice in the market.She said even the Chinese rice retailers denied selling fake rice in the market citing that fake rice is more expensive to produce than the natural rice.Silva said eight laboratory tests were performed by the Food Development Center of the NFA national office on two batches of suspected fake rice samples from the complainant.

“Since samples were cooked, there was no difference b letween the suspected fake rice and the NFA rice based on microscopic analysis.  In terms of appearance, the fake rice is more chalky white while the NFA rice is creamy white.  Both samples were positive for starch based on iodine test,” she said.Silva said based on the test for contaminants, the NFA rice had none while the complained rice contained dibutel thalate, a chemical used for binding plastic packaging.She said investigators are looking into the food handling which might have contaminated the rice complained as being fake.Pablo Gonzales Jr., president of the Grains Retailers Confederation in Davao Region urged rice retailers to report questionable rice to authorities.

He questioned the motive of spreading the rumor about the fake amid the abundance in the supply of rice in the region given its low price.I urge retailers to sell only your own stocks to the market,” Gonzales said.  (PIA 11-Joey Sem G. Dalumpines)

: http://news.pia.gov.ph/article/view/2381436754140/nfa-xi-appeals-for-calm-on-fake-rice-reports#sthash.g0Jr2jB6.dpuf

Japan, U.S. resume working-level TPP talks

July 09, 2015

Jiji PressTOKYO (Jiji Press) — Japanese and U.S. government officials resumed their talks related to Trans-Pacific Partnership multilateral free trade negotiations in Tokyo on Thursday, seeking breakthroughs on differences over “sensitive” rice and auto parts trade.Tokyo and Washington will hold the working-level talks through Friday, ahead of the upcoming ministerial meeting of the 12 TPP-negotiating countries.The 12 countries, including Japan and the United States, aim to reach a broad agreement at the four-day ministerial meeting in Hawaii from July 28.

A focal point of the resumed Japan-U.S. talks is whether the two major economies can find common ground on the issues of Japan’s import quota for U.S. rice and U.S. tariff abolition for Japanese auto parts, sources familiar with the situation said.Hiroshi Oe, Japan’s acting chief TPP negotiator, is taking charge of negotiations on agricultural trade and Takeo Mori, economic diplomacy ambassador, on auto parts trade.

The U.S. team is headed by Acting Deputy U.S. Trade Representative Wendy Cutler.Oe told reporters Thursday morning that he wants to help the TPP ministers strike a deal by successfully concluding the working-level talks with the United States.Japan has proposed to set up a special quota for importing U.S. rice for direct human consumption instead of keeping tariffs on the staple food for Japanese people, but the two sides have yet to agree on the quota’s size.Tokyo aims to limit U.S. rice imports to 50,000 tons a year, but Washington demands a larger amount, the sources said.In the auto parts field, the two countries have been at odds over the scope and speed of tariff elimination by the United States.

Pool photo/The Yomiuri Shimbun

Hiroshi Oe, Japan’s acting chief TPP negotiator, right, shakes hands with U.S. Acting Deputy Trade Representative Wendy Cutler at the Foreign Affairs Ministry in Tokyo on Thursday morning.

http://the-japan-news.com/news/article/0002276820

 

Rice traders call for rotten rice auction

PETCHANET PRATRUANGKRAI

THE NATION July 13, 2015 1:00 am

RICE traders have urged the government to rush to hold an auction for 1.29 million tonnes of rotten rice from its stockpiles while demand in the market is high during the drought."Instead of opening bidding for biogas or ethanol production, rotten rice could be produced as feedmeal. The government should urgently release its rice in the meantime to clear out stocks," a rice trading source said last week.The government should allow general bidders, not just bidders for biogas or ethanol production, as many industries also want rotten rice.

If the government opens bidding to general traders, it should get a better price than by selling to just biogas or ethanol producers.Rotten rice or Grade C rice should be trading at Bt4-Bt5 a kilogram. If the government only sold the rice for biogas production, the price could be bargained down to only Bt1-Bt2 a kilo.The government should not be overly concerned that rice traders will mix rotten rice with rice for consumption, since they are also worried about their rice's quality and would not risk destroying their brand and company image, the source added.Manut Kijprasert, president of the Thai Rice Mill Association, said the drought has driven up demand for rice, so it is a good time for the government to accelerate the release of rice.The price has kept on going up during the past month since the drought hit, he said.According to the association, as of Friday, white paddy rice was quoted at Bt8,200 a tonne and jasmine rice (Thai Hom Mali rice) at Bt13,000-Bt15,000 a tonne.

The export price of 5-per-cent white rice has climbed to $390 a tonne from $381 a tonne in one week, and of Thai Hom Mali rice from $1,037 a tonne to $1,046 a tonne

http://www.nationmultimedia.com/business/Rice-traders-call-for-rotten-rice-auction-30264304.html

Drought and China’s rice deal send paddy price up by 1,000 baht/tonne

BY EDITORON 2015-07-13THAILAND

Drought and China’s rice deal send paddy price up by 1,000 baht/tonne

BANGKOK: — Drought and rice export commitment with China have driven the price of paddy by about 1,000 baht per tonne, said Mr Manas Kitprasert, president of Thai Rice Millers Association, on Monday.

He explained that drought has damaged many rice farmland and was expected to substantially cut main-crop paddy production. The cutback in production plus the commitment to deliver one million tonnes of milled rice to China under government-to-government deals have driven up the price of paddy to an average of 1,000 baht per tonne. Latest paddy prices in the rice market are as follows: 8,200-8,700 baht per tonne for white rice with 15 percent humidity compared to about 7,000 baht/tonne about three weeks ago; 12,500 baht per tonne of 5% white rice compared to 11,000-11,500 baht/tonne; 13,000-15,000 baht per tonne of Hom Mali; 13,000 baht/tonne of Hom Pathum rice.Export (FOB) prices are as follows: US$1,046 per tonne of Hom Mali rice; 5% white rice, US$390 per tonne; 100% parboiled rice, US$399.

Source: http://englishnews.thaipbs.or.th/drought-and-chinas-rice-deal-send-paddy-price-up-by-1000-bahttonne

India's rice exports may drop by 20% in 2016: FAO

By PTI | 13 Jul, 2015, 07.58PM IST

By PTI | 13 Jul, 2015, 07.58PM IST

India, the world's biggest rice producer after China, is estimated to export about 10 million tonnes of rice this year, same at last year's level, as per the industry data.NEW DELHI: India's rice exports may decline by 20 per cent in 2016 due to tight supplies and growing domestic demand, according to the UN body FAO. India, the world's biggest rice producer after China, is estimated to export about 10 million tonnes of rice this year, same at last year's level, as per the industry data.

 "All exporters are expected to step up their rice deliveries in 2016, except India, where a tightening of supplies and growing domestic requirements are foreseen to result in a 20 per cent contraction in rice shipment," Food and Agriculture Organisation (FAO) said in its latest report on world crop prospects. Lower exports in India are expected to be offset by increased exports from Thailand and Vietnam. India is expected to harvest 103.5 million tonnes of rice in 2015, it said. Global rice output is estimated to be lower at 499.3 million tonnes this year, while world trade in rice in 2016 is pegged at 42.1 million tonnes, it added. FAO also said that global rice prices have been on decline for last ten months and much of the fall has been witnessed in aromatic rice.

Rice prices have softened in India, Vietnam, Thailand as well as in the America. For instance, the export price of Thai rice fell to $385 per tonne in June from $419 per tonne in the year-ago period, it added. According to the FAO, world crop prospects look positive this year despite continuing apprehensions over El Nino. But those global price trends and favourable prospects for world cereal production mask localised hotspots of food insecurity, the report also cautioned. "Some 34 countries worldwide, including 28 in Africa -- many hosting large numbers of refugees -- are in need of external assistance for food," it said.

http://economictimes.indiatimes.com/news/economy/agriculture/indias-rice-exports-may-drop-by-20-in-2016-fao/articleshow/48057718.cms

18% growth in rice trading volume

Tehran, July 11, IRNA - During the week ending up to 9th July, while Iran Mercantile Exchange was the host for trading of 267 KT of various commodities worth more than 148 million USD in spot market, the rice group experienced 18% growth in volume of trading.According to the report from IME international affairs and PR, during this week in agricultural trading floor, 5,780 MT of sugar, 100 MT of maize as well as 1,130 MT of rice were traded.

Moreover, in Domestic and Export metals and minerals trading floor of IME, 55 KT of products worth more than 46 million USD were traded. In this trading floor, 48 KT of steel sections, 4,530 MT of copper, 100 MT of Molybdenum Concentrate, 1,520 MT of Aluminums as well as 200 MT of coke were traded by customers.Also, in Domestic and Export oil and petrochemical trading floor of IME, 206 KT of different commodities with the total value of 96 million USD were sold. Also, 74 KT of bitumen, 28 KT of polymer products, 78 KT of VB, 8 KT of lube-cut, 15 KT of chemical products, 740 MT of insulation, 2,560 MT of sulfur and 40 MT of argon were traded in this trading floor.

http://www.zawya.com/story/Iran_18_growth_in_rice_trading_volume-ZAWYA20150712073504/

Rain damages 30k kilos rice in FCI godowns (AIREA - All India Rice Exporters Association)

Posted, 2015-07-13
(Source: AIREA - All India Rice Exporters Association) BARASAT: A huge quantity of rice stored in FCI (Food Corporation of India) godowns in North 24-Parganas Bongaon was damaged after water entered the godowns following heavy rainfall on...

http://article.wn.com/view/2015/07/13/Rain_damages_30k_kilos_rice_in_FCI_godowns_AIREA_All_India_R/

Monsoon depression brings rain to East, N-W India

VINSON KURIAN

1

THIRUVANANTHAPURAM, JULY 10:  

Thursday’s low-pressure area over Gangetic West Bengal flared up to become a rare land-based depression and was located above north Chhattisgarh and adjoining Jharkhand on Friday evening.It helped drive the monsoon to a peak over east India and parts of northwest India. It also breathed fresh life into the offshore trough along Kerala and Karnataka, bringing rain there as well.

Interactive rain

India Met Department said that the depression might weaken by Saturday, but the US Climate Prediction Centre stated that it would continue to produce rain over east and adjoining northwest for a few days more.There is also the possibility of interaction of the system with an incoming western disturbance, which was parked over north Pakistan and adjoining Jammu and Kashmir on Friday.Already south-westerly flows from the Arabian Sea and easterlies from the Bay of Bengal are running into each other over the eastern flanks of northwest India, along the hills and plains.Very heavy rain has been reported from Jammu & Kasmhir, Himachal Pradesh, east Madhya Pradesh, Gangetic West Bengal, Jharkhand, Chhattisgarh and coastal Karnataka overnight on Friday morning.

Even more forecast

The Met has forecast very to heavy rainfall for the next four days across north-east India, east India and adjoining north-west India and along the west coast.This would come about under the overall influence of west Pacific typhoon Chan-hom bracing to home in over east China as also twin-typhoon Nangka, which is still raging in the open west Pacific Ocean.The European Centre for Medium-Range Weather Forecasts depicts how Nangka would take over from Chan-hom and pull monsoon flows across the Arabian Sea, the Bay of Bengal and South China Sea.

http://www.thehindubusinessline.com/industry-and-economy/agri-biz/monsoon-depression-brings-rain-to-east-nw-india/article7408171.ece

Rain damages 30k kilos rice in FCI godowns

AIREA - All India Rice Exporters Association

13/07/2015 | News release

BARASAT: A huge quantity of rice stored in FCI (Food Corporation of India) godowns in North 24-Parganas Bongaon was damaged after water entered the godowns following heavy rainfall on Thursday night. The district officials came to know about it only after an inspection on Saturday.According to sources, nearly 300 quintals (30,000 kgs) rice worth rupees several lakhs were completely damaged. "The damaged rice, kept in 600 sacks, could not be distributed among the ration dealers. The sacks, which are still intact, will be sent back to the dealers. We have discussed the matter with the state food minister," a senior district official said, adding that the godowns are being emptied on an emergency basis.State food minister Jyotipriya Mallick, though, said that "the damaged rice can be used as cattle food". He also asked his officials to immediately clear the water from the godowns.

On Sunday, five fire engines were pressed into service to drain the water out of the godowns . Locals have blamed the callousness of the administration for the loss."Officials are aware of the situation. This is a regular phenomenon in Bongaon in monsoon. Besides, areas surrounded by rivers like Ichamati, Raimangal and Vidyadhari are also flooded. There is no drainage system in the areas that house the godowns . Officials know about this but still stock rice in these godowns," said Sukumar Mondal, a resident of Bongaon. Locals also apprehended that the damage can trigger a crisis of rice in the ration shops. In 1970, four godowns were set up by the state food department in the Bongaon station area for storing rice. Thursday's rain damaged rice in two of the godowns.

The food minister also visited the godowns on Saturday. But, he was in a damage-control mode on Sunday. "The damaged rice will be sent back to traders from whom it was purchased. The traders can sell it as cattle food," Mallick said.The minister also blamed the Left Front government for poor condition of the FCI godowns. "These were built during the Left regime without any planning. During the construction of the godowns, no drainage system was developed," he alleged.

Source : http://bit.ly/1CzqhvH

http://www.noodls.com/view/998A0DE1F9F8E789008AA6EF3813881BBC4D9A59?5314xxx1436778777#sthash.kUftPBIT.dpuf

Iraq launches a tender to provide it with 30 thousand tons of rice

The Iraqi Ministry of Trade announced on Sunday launching a tender for processing 30,000 tons of rice to cover the requirements of the ration card from American - Uruguay - Argentine and Indian origins according to the specifications approved by the General Company for Grain Trade.

The ministry said in a statement that offers will continue till 21 of this month on condition that the presentations to be accompanied by an initial insurances BIDBOND by a guaranteed bank or a certified check for the General Company for Grain Trade in the Ministry as well as other documents.The statement called those wishing to participate in the tender to review contracts department in the ministry to buy the requirements and specifications in exchange of paying of five hundred thousand dinars for each tender to be non-refundable to submit bids not later than twelve o'clock at noon of Wednesday on the 15th of current month.

https://www.zawya.com/story/Iraq_launches_a_tender_to_provide_it_with_30_thousand_tons_of_rice-ZAWYA20150713043336/

Venezuela will stop buying Guyana rice amid escalating border dispute

Venezuela has decided to stop buying much of Guyana's rice crop amid an escalating border dispute between the two neighboring countries, the Guyanese finance minister said. The administration of president Nicolas Maduro has in the past four years purchased about 40% of Guyana's rice production, about 200,000 tons, paying for it with oil that amounts to about half of Guyana's daily supply needs.

Finance Minister Winston Jordan said Venezuelan officials informed him during a visit to Caracas that they will be acquiring rice from other suppliers, including Suriname, by the end of the year.“It will be a significant blow to us,” said Peter DeGroot, president of the Rice Millers Association.The exchange of rice for oil was done under the Petrocaribe program, a Venezuelan initiative that provides fuel at generous financial terms to Caribbean and Central American countries. Guyana remains a member of Petrocaribe and will continue to buy oil from Venezuela, Jordan said.Jordan said Venezuela did not disclose the reason for its decision, but the long-running border dispute has been heating up following the recent disclosure of a major oil discovery off Guyana in waters that Venezuela also claims. President Maduro last week announced he was recalling his ambassador in Guyana for consultations and would review relations between the countries.

Venezuela has long refused to recognize a boundary drawn in 1899 and it claims about two-thirds of Guyana's territory as its own. Venezuela published a new map in May that expanded its maritime territory to essentially leave Guyana landlocked.Guyana Prime Minister Moses Nagamootoo said the timing of the rice announcement made it at least appear that it is connected to the border fight.“It will have to be considered whether Venezuela's position of the non-renewal of the Petrocaribe barter agreement is indeed an act of economic sanction against Guyana,” he said in a statement.

President David Granger told Parliament that Guyana does not have the military capacity to challenge Venezuela and his government would seek an international judicial settlement over the border issue.“Guyana has never used aggression against any state,” said Granger, a retired army general. “In as much as we are a peace loving state we will not allow our territorial integrity to be violated and threatened.”

Images|: Finance minister Jordan said Venezuelan officials informed him that they will be acquiring rice from other suppliers, including Suriname, by the end of the year.

Guyana Prime Minister Moses Nagamootoo said the timing of the rice announcement made it at least appear that it is connected to the border fight.

President Granger said Guyana does not have the military capacity to challenge Venezuela and his government would seek an international judicial settlement

http://en.mercopress.com/2015/07/13/venezuela-will-stop-buying-guyana-rice-amid-escalating-border-dispute?utm_source=feed&utm_medium=rss&utm_content=economy&utm_campaign=rss

Cost to grow rice falls 30% spurred  by free trade pact

PrintPrint  EmailEmail  BookmarkBookmark  SaveSave to my profile  Comments3 Comments - last on Jul 13 at 1:56 PM

Santo Domingo.- The cost to grow rice has fallen by 30% on half of local production in the last three years, as the result of a process that will ensure the sector's competitiveness when the tariff of CAFTA free trade pact is lifted. Agriculture Bank (Bagricola) administrator Carlos Segura said that when producer was using 20 pounds of seed per 630 per square meter on average, now uses only six pounds, by eliminating tillage, soil leveling and by planting in bulk, “considerably reducing production costs.”He stressed the improved equipment used to prepare soil throughout the production process, saving 27 pesos per sack of rice.

He said Bagricola finances, promotes and develops rice production with loans to the subsector. “In recent years this institution formalized RD$976.8 million in loans to rice farmers, or 58.5% compared with those targeting other agricultural items, and the funding allowed to cover a surface of more than 72,000 hectares of the grain.”

http://www.dominicantoday.com/dr/economy/2015/7/13/55713/Cost-to-grow-rice-falls-30-spurred-by-free-trade-pact

APEDA India News

International Benchmark Price

Price on: 10-07-2015

Product Benchmark Indicators Name Price Apricots 1 Turkish No. 2 whole pitted, CIF UK (USD/t) 5975 2 Turkish No. 4 whole pitted, CIF UK (USD/t) 5375 3 Turkish size 8, CIF UK (USD/t) 4375 Sultanas 1 Australian 5 Crown, CIF UK (USD/t) 2966 2 South African Orange River, CIF UK (USD/t) 2600 3 Turkish No 9 standard, FOB Izmir (USD/t) 2250 White Sugar 1 CZCE White Sugar Futures (USD/t) 825  2 Kenya Mumias white sugar, EXW (USD/t) 690 3 Pakistani refined sugar, EXW Akbari Mandi (USD/t) 624 Source:agra-net For more info

Market Watch Commodity-wise, Market-wise Daily Price on 11-07-2015 Domestic Prices Unit Price : Rs per Qty Product Market Center Variety Min Price Max Price Jowar(Sorgham) 1 Amreli (Gujarat) Other 1125 2300 2 Theni (Tamil Nadu) Other 2650 3300 3 Kalyan (Maharashtra) Other 1600 1800 Maize 1 Dehgam (Gujarat) Other 1150 1250 2 Dhing (Assam) Other 1350 1450 3 Theni (Tamil Nadu) Other 1380 1480 Mango 1 Bonai (Orissa) Other 2000 3000 2 Zira (Punjab) Other 2300 2700 3 Manjeri (Kerala) Other 3300 3500 Brinjal 1 Surat (Gujarat) Other 1000 3000 2 Gumla (Jharkhand) Other 2000 2200 3 Manjeri (Kerala) Other 1100 1400 Source:agra-net For more info

Egg Rs per 100 No Price on 11-07-2015 Product Market Center Price 1 Pune 330 2 Chittoor 343 3 Nagapur 285 Source: e2necc.com

Other International Prices Unit Price : US$ per package Price on 10-07-2015 Product Market Center Origin Variety Low High Onions Dry Package: 50 lb sacks 1 Atlanta Mexico Yellow 23 24 2 Baltimore California Yellow 26 26 3 Detroit Texas Yellow 21 22 Cauliflower Package: cartons film wrapped 1 Atlanta California White 19 19.75 2 Baltimore Mexico White 15 15 3 Detroit Michigan White 13 15 Grapes Package:  18 lb containers bagged 1 Atlanta Mexico Red Globe 23.50 24.75 2 Baltimore Mexico  Red Globe 22 24 3 Miami Mexico Red Globe 26 27 Source:USDA

U.S. Rice Advertising in Ghana Takes Off

 ACCRA, GHANA--

Amidst an influx of cheap food imports from Asia and other origins, the USA Rice-led Global Based Initiative (GBI) here began a rollout of large format billboards and radio spot advertising in three major cities to raise awareness and create demand for participating U.S. food products: rice, poultry, and peanuts.

 The billboard and radio campaign, planned over a six-month period in Accra, Kumasi, and Takoradi, complements other ongoing activities among artisanal foodservice providers within the major economic hub known as the "Golden Triangle".The family bond is extremely important to Ghanaian consumers, and the GBI's generic billboard messages play on this and create a linkage between family and the strong attributes of U.S. food products: healthy, nutritious, and delicious.

 The radio component of the campaign follows the creative concepts of the billboards, further leveraging industry messaging.  The ads are in English and Twi, (the most dominant local language spoken by 78% of the population).Billboard and radio are the strongest channels for awareness creation and demand stimulation in Ghana because road transport accounts for more than ninety percent of commuting within cities, and FM radio is pervasive in Ghana.

 Contact:  Eszter Somogyi 011-49-40-4503-8667

USA Rice Federation

Crop Progress:   2015 Crop 30 Percent Headed

WASHINGTON, DC -- Thirty percent of the nation's 2015 rice acreage is headed, according to today's U.S. Department of Agriculture's Crop Progress Report.

Rice Headed, Selected States  Week Ending State  July 12, 2014   July 5, 2015   July 12, 2015 2010-2014 average Percent Arkansas 13 14   18 15   California 8 16   17 2 Louisiana 70    66 75 63 Mississippi 24 25 32  31 Missouri 11 12 22  5  Texas 46 43 54  52 Six States 23   25 30 22

CME Group/Closing Rough Rice Futures

CME Group (Preliminary):  Closing Rough Rice Futures for July 13 Month Price Net Change July 2015 $10.705 - $0.150 September 2015 $10.935 - $0.150 November 2015 $11.210 - $0.145 January 2016 $11.475 - $0.145 March 2016 $11.635 - $0.145 May 2016 $11.815 - $0.135 July 2016 $11.815 - $0.135

USA Rice Federation

Rice annual exports to fall short of target

13 Jul 2015 at 12:31 WRITER: REUTERS

The Thai rice export association lowered its annual target from 10 million to 9.5 million tonnes on Monday, due to a slowdown in the global economy and fears that drought in Thailand could slash output for the year.Chukiat Opaswong, honorary president of the Thai Rice Exporters Association, said Thailand would face a tougher export market due to a global slowdown in trade and fluctuating exchange rates.He added that concerns over the drought on Thailand's rice production have boosted export prices and could drive buyers to Thailand's competitors.

The wet or monsoon season is under way, but Thailand is contending with drought conditions in six out of 67 provinces, according to the National Disaster Warning Centre, and water rationing is taking place in almost a third of the country.Farmers in Thailand, the world's second-biggest exporter of the grain after India, are growing increasingly desperate and in some provinces are fighting over precious water.Mr Chukiat said Thailand exported 4.3 million tonnes of rice as of June 20.

"In the first half of the year we thought we could export 4.5 million tonnes but by June 20 we were at 4.3 million tonnes," Mr Chukiat told Reuters."We are still waiting for the full first half figures but our target for the year was 10 million tonnes and if you take several factors into consideration we expect it to be lower," he said.As a result of the drought, the Thai government has lowered its forecast for this year's main rice crop by more than 2 million tonnes, according to a report this month by the Office of Agricultural Economics.That has driven up demand on domestic markets, enabling the government to sell 1.15 million tonnes at its latest tender, a bigger volume than in other recent offerings.Buying has picked up from African countries who fear prices will go up soon because of drought and lower output, said one Bangkok-based trader."The African market remains an important market for Thailand especially rice and parboiled rice," said Mr Chukiat. 

http://www.bangkokpost.com/news/general/620972/rice-annal-exports-to-fall-short-of-target

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13th  July(Monday),2015 Daily Global Rice E-Newsletterby Riceplus Magazine