Thursday, February 22, 2018

22nd February,2018 daily global regional local rice e-newsletter





                                                         February 21, 2018

           

            U.S. products on full display at international trade show
Study Shows U.S. Outspent and Falling Behind on Ag Export Promotion 
By Sarah Moran

WASHINGTON, DC -- A study by Informa Economics, IEG on the competitiveness of U.S. export development programs in relation to other countries shows the European Union and others spent close to $1 billion on agricultural export promotion in 2016, outspending the United States 4 to 1.  Competitor spending increased 70 percent since 2011, while U.S. export promotion declined by about 12 percent over the same period. 

Though outspent in real dollars, the study found U.S programs may be more effective in promoting exports in some ways.  U.S. programs focus on long-term export goals, allow smaller industries to conduct marketing efforts that could not otherwise occur, include more sectors by seeking out a wider range of commodity involvement, and encourage greater industry participation and collaboration between the government and private sector.

Few cooperators demonstrate this more robustly than the U.S. rice industry that contributes $7 for every $1 received from the Market Access Program (MAP) and Foreign Market Development (FMD) export promotion programs.

The effectiveness of the MAP and FMD export promotion programs, coupled with increasing foreign competition, and the effective reduction in program spending over the last several years has led USA Rice and other cooperators to request that funding for the programs be doubled. 

"This was one of our key messages last week during our annual fly-in when more than 100 USA Rice members visited with every Member of the House and Senate agricultural committees," said USA Rice President & CEO Betsy Ward.  "We touted the successes of the MAP and FMD programs for not only our industry but for all of agriculture and their role in aiding a U.S. agricultural trade surplus of $21.3 billion in FY2017.  The fact that U.S. promotion efforts produce more with less is laudable but, in the end, not sustainable as we face fierce competition in the global marketplace."




Edo govt in rice scandal ON FEBRUARY 22, 20186:40 AMIN NEWSCOMMENTS …As govt insists rice was judiciously disbursed By Gabriel Enogholase BENIN—EDO State chapter of Peoples Democratic Party, PDP, yesterday, insisted that the Governor Godwin Obaseki-led administration must account for the missing 4, 781 bags of rice of the 6,822 approved for the Internally Displaced Persons Camp at Uhogwa in Ovia North East Local Government Area of the state by the Federal Government. Godwin Obaseki It will be recalled that the Comptroller of Customs, Col Hammed Ali (retd), in compliance with the directive of President Muhammadu Buhari that all perishable goods seized by the Customs should be donated to the IDP camps, allocated  the consignments from various Customs warehouses across the country to the IDP camp in Benin City. Other items donated to the IDP camps in the country were vegetable oils and used shoes. However, Edo State chairman of the PDP, Chief Dan Orbih while receiving defectors from All Progressives Grand Alliance, APGA and Freedom Foundation Movement, FFM,  into the party, described the rice scandal as unbelievable, insisting that the governor must account for the missing bags of rice. However, in its reaction, the  state government said that  all the bags of rice and other items like shoes, apart from the ones that were damaged in storage before they were allocated, were distributed to the Internally Displaced Persons camp  and other orphanage homes within the state. Special Adviser to Governor Godwin Obaseki on Media and Communication Strategy, Mr Crusoe Osagie, said: “The allegation is laughable and completely false and is a design of detractors to smear the image of a performing government. “They have tried and failed on all other fronts, now they have stooped lower to a commodity as cheap as rice.” 

NFA warns government rice stock gone by April

21.02.2018
 
This file photo shows a worker piling up sacks of rice at a warehouse of the National Food Authority. According to reports, the depletion of the NFA’s stockpile has prompted some retailers to increase the price of commercial rice.

The National Food Authority (NFA) will ask the NFA Council (NFAC) to reconsider its earlier decision to set the arrival of rice imports in June, as it warned that the government’s stockpile could be wiped out by April.

NFA Administrator Jason L.Y. Aquino also urged lawmakers to convince President Duterte to reschedule the arrival of rice imports before April during the hearing on the food agency’s rice stock conducted by the House of Representatives’s Committee on Agriculture and Food.

“To address this NFA crisis, I would recommend to this body to make an appeal to the President. After all, it is the President who approved the importation of 250,000 metric tons [MT] of rice,” Aquino said at the hearing on February 20. “Immediate importation is the only immediate solution [to address this problem].”

Aquino’s special assistant, lawyer Rachel Miguel, told the BusinessMirror that the NFA would file a request for reconsideration to the NFAC within the week.

“The memorandum is being drafted and, within this week, it will be submitted to the Council. [The ideal time for the arrival of imports] definitely would be before April.”

He revealed that the current stockpile of the NFA, which stands at around 1.1 million 50-kilogram bags, equivalent to 56,100 MT, would be depleted as early as end-March. The volume would last for only 1.7 days.

Aquino said the NFA has further slashed its rice distribution to conserve its dwindling stockpile. “In about 31 to 32 days, the NFA’s rice stock would be gone. By April to May, the NFA will not have rice anymore, as the NFAC allowed imports to arrive in June.”

Party-list Rep. Jose T. Panganiban Jr. of Anac-IP, committee chairman, questioned the NFAC members present during the hearing regarding the timing of the arrival of rice imports. “Why should the imports arrive by June, and not March or April? What kind of policy does the NFA Council have?” Panganiban appealed to the NFAC to reschedule the arrival of rice imports. He said he would write a letter to Cabinet Secretary Leoncio B. Evasco Jr., who chairs the NFAC, to formalize his appeal.

“The price of commercial rice would certainly increase further after [the NFA] admitted that, by April, there will be no more NFA rice. That’s the concern, that’s really the issue here,” he said.

Agriculture Secretary Emmanuel F. Piñol, who also attended the hearing, said he does not oppose the idea of allowing rice imports to arrive during the harvest season.

“Even if farmers are already harvesting rice, the Department of Agriculture [DA] will not oppose the importation of the NFA because of the situation right now. It will not affect the farm-gate prices of palay,” Piñol said.

Piñol also said the importation of rice should be undertaken only by the NFA to stabilize prices and ensure the country’s food security. “It is always my position, our intention, that importing rice to provide Filipinos with rice at affordable price and to stabilize price in the market should be controlled by government.” Last week the NFAC approved the importation of 250,000 MT of rice to beef up the food agency’s depleted stockpile, after President Duterte gave his go signal.

Aquino, however, assured that there is no rice shortage in the country, as the total national rice-stock inventory stood at around 2.242 million MT, which would last for 71 days.

The panel chaired by Panganiban also approved a motion to summon in its next hearing 13 rice traders allegedly involved in manipulating rice prices in Metro Manila.

During the committee hearing on the status of the country’s rice supply, Rep. Manuel Luis T. Lopez of the First District of Manila raised the motion to invite 13 rice traders located along Dagupan Street in Tondo, Manila.   The lawmaker asked the NFA and the DA, as well as the Philippine National Police  to inspect the warehouses of the 13 rice traders.
http://www.blackseagrain.net/novosti/nfa-warns-government-rice-stock-gone-by-april



Digitising CBN’s anchor borrowers’ policy


 

Starting with Kebbi State in 2015, the Central Bank of Nigeria’s Anchor Borrowers’ Programme (ABP) has been replicated across the 36 states with enlistment of rice farmer group in the scheme’s second phase using technology devise for its administration. ABDULWAHAB ISA reports

Rice is Nigeria’s leading number one food in all homes. Its importation using scarce forex has gulped fortunes in excess of $2 billion. This was prior to the launch of the ABP on November 17, 2015 – a Central Bank of Nigeria (CBN) agric lending scheme specifically tailored to address rice sufficiency.

A game changer in rice production, the programme was designed primarily to conserve scarce foreign exchange, which rice importation was inflicting on forex reserves.

To narrow the gap between heavy tonnes of imported rice and negligible tonnes produced locally, the CBN launched ABP in Kebbi state in 2015. The scheme was launched by President Muhammadu Buhari. For farmers to access the loan, the apex bank encouraged them to form cooperatives.

The bank has expended about N55 billion as loan grant to farmers on single digit rate.

Deadline on rice importation

The Federal Government restated its commitment to end rice importation by 2018 ending. In his new year message to Nigerians last January, President Muhammadu Buhari said Nigeria would end rice importation in 2018 to encourage local production.

“I am highly gratified that agriculture has picked up, contributing to the government’s effort to restructure the economy. Rice imports will stop this year. Local rice, fresher and more nutritious rice will be on our dishes from now on,” he said.

“By the same token, I am today appealing to enterprising Nigerians with ideas and unemployed graduates and other able-bodied and literate men and women with ideas, not to just sit and wait for employment from the government or the organised private sector.

“Great nations are built by enterprising people who turn their hands to anything that circumstances dictate.” Giving update on rice importation after the commencement of ABP, Minister of Agriculture and Rural Development , Chief Audu Ogbeh, said there had been drastic drop in rice importation, adding that rice importation had dropped by 88.4 per cent last year.


Digitalising ABP

The CBN is not relenting in its effort to attain rice sufficiency mandate of the president. The bank has expanded Anchor Borrowers’ Programme scope beyond the state. CBN, last week, entered into strategic partnership with Rice Farmers Association of Nigeria (RIFAN) with a view to empowering over 12.2 million farmers under the fully digitalised second phase of the ABP.


Speaking at this year’s dry season farming, CBN Governor, Mr. Godwin Emefiele, said the biometric information of the farmers had been taken, their farm mapped out and biometric cards produced for each farmer.

He said the device would identity them while collecting the inputs from the service providers. Emefiele said the FCT farmers would be used to try the technological innovation introduced into the ABP, adding that the process would spread  across 24 states participating under RIFAN-ABP dry season.

The bank said it would partner with other commodity associations such as maize, cassava, millet, sorghum and other staple foods to provide employment, reduce food import, boost export and earn foreign exchange. The governor was represented by his Special Assistant on Agriculture and Development Finance, Tunde Akande.

“The ABP started in November 2015. Under two years, we decided to upscale it. We’ve decided to collaborate with RIFAN but we’ll also partner with maize, cassava, sorghum, etc, using commody associations. 
They have structures at all levels l he said. “We want to provide mentoring, extension services, etc to farmers through them. We can now provide tractorisation and all that. It’s about the loan being well utilised. “There is a guaranteed market for farmers under this programmme. We’ve deployed seamless technologies to them. We’ve taken their biometrics and we have their contacts. 
Days of taking loans and inputs without accounting for them are over. In no distant time, we will attain food sufficiency and even export to earn foreign exchange.” Akande said all loans given to farmers under ABP, were mandatorily insured by the Nigeria Agricultural Insurance Corporation (NAIC). He added that each farmer got N250,000 to cultivate one hectare of land for the dry season farming.

CBN’s rice revolution

CBN is spearheading the revolution in rice production value chain. The success recorded by ABP at the states where it was launched motivated the apex bank to enlist private stakeholders. The enlistment of Rice Farmers Association of Nigeria (RIFAN) marked the second phase of ABP.

In his assessment of the programme, President of RIFAN, Alhaji Aminu Goronyo, lauded President Muhammadu Buhari’s support and launch of the ABP in 2015, describing it as a huge success. Goronyo said about five million farmers would cultivate 200,000 hectares of land for rice production under a pilot scheme. “For two years, the ABP worked successfully as CBN/ state governments’ programme. 
Now, it has graduated from government- government collaboration to government-private sector collaboration,” he said. “We launched the pilot scheme in Gwagwalada, Abuja on Tuesday. Other states have launched. It is tagged the RIFANCBN model. 
“This collaboration is to put Nigeria on the right track in agribusiness. Before 2015, it was operating on an analogue model, thus making monitoring and compliance very challenging. So, all that was done in agriculture was not recordno in details. 
“But with this, we’ve 500,000 farmers under this season’s farming. From this figure, we’ve 200,000 farmers for the dry season. “With this new digitalised programme, I can, from my phone, reach all the farmers. It’s a global innovation. Farmers are now accessible, verifiable and the entire process reliable. Anyone coming to do business with us can access us and work with reliable data.” 
He added that RIFAN had national working committees and six zonal offices and heads at both local government and ward levels. He also disclosed that 32 states were currently onboard the ABP, adding that Benue, Nassarawa, Enugu and Cross River states could not join this year’s farming season as they could not tidy up their application and documentation processes before the deadline.Besides, he said that such states would be part of the next phase.
 Last line

The zeal and commitment demonstrated by the CBN to change rice production narrative through ABP is not only a channel to self-sufficiency but also a game changer in the nation’s agriculture sector.

Lahore Chamber, TDAP Hold 'Look Africa Trade Forum'

  

Pakistan needs to ensure strong presence in the huge African market to take full advantage of its infinite potential, since African destination not only has precious reserves of oil and gold but also various other s ectors with a lot to offer to Pakistan.

LAHORE, (UrduPoint / Pakistan Point News - 20th Feb, 2018 ):Pakistan needs to ensure strong presence in the huge African market to take full advantage of its infinite potential, since African destination not only has precious reserves of oil and gold but also various other sectors with a lot to offer to Pakistan.
Diplomats from Africa expressed these views at 'Look Africa Trade Forum', jointly organised by the Lahore Chamber of Commerce & Industry and Trade Development Authority Pakistan (TDAP) here at LCCI on Tuesday.
High Commissioner of Kenya Professor Julius Kibet Bitok, High Commissioner of Nigeria General (Retd) Ashimiyu Adebayo Olaniyi, Ambassador of Sudan Tageldin Elhadi Eltahir, Ambassador of Somali Khadija Mohammed Al-Makhzoumi and High Commissioner of Mauritius Rasid Ally Soobadar, and LCCI President Malik Tahir Javaid, TDAP Director General Mian Riaz Ahmad, and business leaders including Sohail Lashari, Zafar Mahmood, Amjad Ali Jawa, LCCI Executive Committee Members and Federal Commerce Ministry's Joint Secretary Maria Qazi also spoke on the occasion.
The diplomats said that Pakistan's trade with Africa was minor that should be enhanced, suggesting that establishment of new commercial sections in Africa could help in this regard. They mentioned that Pakistani pharmaceutical, textileagriculture, rice, wheat and cement had a lot of scope in the African market.
LCCI President Malik Tahir Javaid said that Pakistani products could easily make way to Africa which was world's second largest and second most populous continent. Trade analysis of last two years showed that overall trade of Pakistan with different African countries had been following a decreasing trend as both imports and exports were falling.
From 2015 to 2016, the value of overall trade decreased from US$3.23 billion to US$2.91 billion on account of 15.7 per cent fall in exports and 4.7 per cent fall in imports from AfricaPakistan needed to make concerted efforts to reverse this trend, he said, adding that it could be made possible with efforts done by private sector coupled with some assistance provided by the respective embassies of African group and relevant public organizations of Pakistan.
He added, "We have been emphasizing product and market diversification. Pakistani business community should be made aware of it that there are incalculable market opportunities available in Africa.
Look Africa Trade Forum can serve as a good source for networking." Malik Tahir Javaid was of the view that African countries could benefit greatly from Pakistan's experience and expertise in the fields of infrastructure development, agriculture, auto-parts, light engineering, pharmaceuticals, banking and information technology.
Pakistan's education sector, particularly professional institutes could provide excellent opportunities and avenues to African students to learn modern sciences and arts. He said the specific role of embassies could be ignored at all in this connection.
With the help of influence and unique importance of embassies, things could be turned towards a certain direction for ensuring mutual benefits, he maintained. Similarly, he said, when China-Pakistan Economic Corridor (CPEC) would get fully functional, it would also cut down transit time and transportation charges to send exports via sea route to Africa.
While, TDAP Director General Mian Riaz Ahmad said that government was working on a policy to address trade related issues including visafacilitation, of the exporters. He mentioned that TDAP was also focused on exploring non-traditional markets, asserting that Look Africa Trade Forum' would prove to be instrumental in expediting the mutual trade relations between Pakistan and African countries.
BL14_RICE_EXPOR+BL14_RICE_EXPORT.jp.jpg

Non-basmati shipments up 40% in April-December; may top 8 million tonnes for 2017-18

BENGALURU, FEBRUARY 20
Strong demand from neighbours Bangladesh and Sri Lanka, and steady off-take from traditional buyers in Africa has led to a surge in the country’s non-basmati rice exports, which are likely to rise to new highs this financial year.
Besides, the depleted stock levels in Thailand — a major exporter — has helped India gain and consolidate its share in the global market, trade sources said.
Shipments soar 40%
For the first nine months of the current fiscal, the non-basmati exports have registered a growth of 40 per cent in volumes at 63.38 lakh tonnes (lt) and 46 per cent increase in value terms at 16,803 crore over corresponding period last year.
Non-basmati rice shipments, after reaching a record 82.74 lt in 2014-15, had dropped in the subsequent year to around 64.64 lt. However, over the past couple of years, the Indian shipments have staged a rebound. Steady growth in domestic output of over 100 million tonnes annually, has resulted in a surplus aiding the shipment trend since 2011-12, when the exports curbs were removed.
Output, stocks
For the current 2017-18 year, the government is targeting a rice production of 108.5 mt , marginally lower than the fourth advance estimates of 110.15 mt during 2016-17. Rice stocks with the Food Corporation of India stood at 198.93 lt as on February 1 this year against 170.28 lt in the corresponding period last year.
Similarly, the unmilled paddy stocks in the Central pool stood at 210 lt as on February 1 this year (183.14 lt).
“The liquidation of old stocks by Thailand has led to the increased demand for Indian white rice. As a result, we expect the shipments to be over 8 million tonnes this year,” said BV Krishna Rao, President of the Rice Exporters Association. Further, the decline in Thai rice stocks has led to a firming trend in prices, resulting in better realisation for the Indian exporters.
Prices have moved up by around $100 per tonne as compared to a year ago, Rao said. The average prices realised by the Indian exporters stood at $411 per tonne for April-December this year, as against last year’s $378 per tonne.
Bangladesh buying
Bangladesh, which bought aggressively during April-October period, has slowed down a bit in the past three months with the arrival of domestic crop. Rao estimates that Bangladesh could have bought up to 2 million tonnes of rice, while close to a million tonnes would have been purchased by Sri Lanka, while demand has been steady from African nations.
“The average exports during January-March period over the past five years stood at around 1.84 million tonnes. Assuming this is achieved this year too, the total exports would be over 8 million tonnes. The shipments may touch the historic high or near to historic highs, if there are no more surprises from Bangladesh during this period,” said Amit Bharadwaj, CEO of Level A Commodities.
Basmati exports for April-December stood at 2.9 million tonnes valued at $2.9 billion or 18,758 crore.

https://www.thehindubusinessline.com/economy/agri-business/rice-exports-surge-on-strong-demand-dip-in-thai-stocks/article22808662.ece?utm_source=RSS_Feed&utm_medium=RSS&utm_campaign=RSS_Syndication

 

 

Matco Foods to invest IPO funds in rice glucose plant

 

February 14, 2018
Company recently generated war chest of Rs757m from the share offering PHOTO: FILE
KARACHI: Matco Foods Limited, one of the leading basmati rice exporters in Pakistan, has said the money it raised through an initial public offering (IPO) will be mostly used for expansion of its high-margin business to allow the company to generate more profit in coming years.
The company was formally listed at the Pakistan Stock Exchange (PSX) on Tuesday and its shares were available for trade among retail investors.
On the first trading day, 2.49 million shares of the company were traded and its stock price closed at Rs27.30, up 5% from Rs26. Company management expects the stock price to touch Rs50 in a year because it is now moving towards the high-margin business.
 “We are confident that our focus on high-margin products will give us better returns compared to our traditional rice exports,” Matco Foods Director Finance Faizan Ali Ghori told media at a press conference. He said the expansion is expected to be completed by March 2019.
Separately talking to The Express Tribune, Ghori said the company was already using Chinese technology for value-added rice products and it would again adopt Chinese technology for expanding operations of its rice glucose and rice protein plant.
The company recently raised Rs757 million with a total issue of 29,143,000 ordinary shares at the strike price of Rs26 per share.
The rice exporter wants to use net proceeds from the public offering for the expansion of the rice glucose and rice protein plant. The expansion will take current capacity of 10,000 tons of rice glucose to 30,000 tons while the rice protein capacity of 1,000 tons will rise to 3,000 tons.
Since rice glucose is not extracted from genetically modified (GM) food, it has huge demand in industrialised countries where health-conscious consumers prefer it over glucose that is extracted from GM food.
Currently, Matco exports 75% of its rice glucose production to international markets where it is priced at around $11,000 per ton against a price range of just $400-500 per ton in the domestic market.
 “We feel huge responsibility towards our shareholders who have trusted us in the IPO,” Matco Foods Chairman Jawed Ali Ghori said. “We will utilise this money in the best possible way because of our rich experience in the rice business.”
Matco has been engaged in the rice export business for over 50 years and ships different products to over 60 countries.
It has recently diversified its operations and is now producing rice glucose and rice protein that are mostly used in pharmaceutical, confectionery, juice and other such finished food products.
Published in The Express Tribune, February 14th, 2018.
Like Business on Facebookfollow @TribuneBiz on Twitter to stay informed and join in the conversation.

https://tribune.com.pk/story/1634128/2-matco-foods-invest-ipo-funds-rice-glucose-plant/

 

Structural changes in Asian rice trade: Lessons for Bangladesh

Rice production in Bangladesh suffers from instability and is highly sensitive to external shocks created by both natural and manmade factors. Photo: Star/file
The recession of 2007-2008 that sent rice prices spiralling came as a shock to all rice producing and consuming countries which prompted many to review their policies related to rice production towards achieving food self-sufficiency within the shortest possible time.
The world has witnessed how swiftly many countries have changed their approach for rice production from self-reliance to self-sufficiency.
The former policy was adopted when the world economy embraced globalisation and open market systems in the 1990s.
Reversal to the policy of self-sufficiency started giving dividend within three years. Rice production increased in many countries considerably. It happened thanks to increased allocation of resources by the government because of a drastic fall in international supports.
These changes in production have brought structural changes in international rice trade systems. The status of the top rice exporting country changed from Thailand to India through Vietnam within a decade (2007-2017). Cambodia and Myanmar showed their strong presence as rice exporting countries.
In the global rice trade, Thailand dominated until the first decade of the 21st century. The other main rice exporting countries were Pakistan, USA, China and India.
Bangladesh has been able to stop depending on rice import until 2015 and instead it exported 50 000 tonnes of rice to Sri Lanka in 2014.
However, rice production in Bangladesh is not stable due to recurrence of natural disasters, intensity of which is on the rise.
It was clearly evident in 2017. Vietnam was predicted by many international organisations to emerge as the number one rice exporting country in the world by 2016.
Although it did not entirely happen, the country briefly occupied the top position mainly due to disastrous rice policy undertaken by political government of Thailand.
Thailand has been suffering from this policy setback, although it started recovering gradually. Indian rice export increased rapidly due to the pragmatic programmes in the eastern part of the country under the name of the second green revolution.
Only 8 percent of rice (approximately 35-37 million tonnes) produced globally is traded in international markets. Global annual production in terms of milled rice totals around 450 to 452 million tonnes.
The share of rice export from South Asian (SA) countries has been increasing compared with their South East Asian (SEA) counterparts.
Mainland countries of SEA (Thailand, Vietnam, Cambodia, Laos and Myanmar) are rice exporting countries and they export around 16-18 million tonnes of rice annually.
On the other hand, island nations of SEA (Indonesia, Philippines, Singapore, Brunei and Malaysia) import rice, amounting to 5-6 million tonnes annually.
Due to massive policy changes, China is emerging as a major rice importing country of the world. The country imported 5 million tonnes of rice in 2016; the figure is likely to rise by 2020.
If this trend continues, China's rice import figure may reach around 16 to 20 million tonnes by 2030.
In near future, rice production may decrease in Thailand and Vietnam. Main reason behind it is that rice farmers are poorer than farmers growing other staple like wheat and maize.
In order to achieve the status of a wealthy nation, the first task is to pull out rice farmers from poverty. The main concern of these two countries is how to make rice farmers wealthier. Reduction of rice production is one of the ways toward achieving it.
Africa is consuming more rice than its production. Estimates show that Africa's rice consumption will increase 42 percent by 2030.
Nigeria is now the second largest importer of rice after China. Rice production in India increased from 89 million tonnes to 105 million tonnes during the period from 2009–2010 to 2014-15.
Out of 16 million tonnes of additional rice produced, more than 10 million tonnes came from seven eastern states of India which border on Bangladesh. Their contribution to national rice production increased from 51.24 percent to 53.24 percent during the same period.
Rice export has been increasing in Myanmar—another bordering country of Bangladesh—steadily.
It gives us hope that Bangladesh would be able to import rice from its two neighbouring countries when it needs most.
However, the most worrying aspect in global rice economy is the entry of China in the tiny rice market with its large demand of rice.
China will probably try to meet its production shortfall by importing from Vietnam, Cambodia and Myanmar. However, China prefers importing low-quality rice only for production of alcohol, noodles, animal feed and for other industrial uses.
Currently, 47 percent of rice in China comes from Vietnam. It has political implication as Vietnam is one of the strong rivals of China with regard to territorial disputes in South China Sea and has established close friendly relations with India.
Five island nations of Asean also imports around 5-6 million tonnes of rice annually. Rice imports are rising in Indonesia and the Philippines as these two islands are most disaster-prone.
Some countries in the Near East like Iran, Iraq and Saudi Arabia are also rice importing countries. Any production disturbance in Iraq and Iran may affect rice trade.
Bangladesh's efforts to increase rice production and productivity are well known which are reflected in the record of its success.
However, rice production in Bangladesh suffers from instability and is highly sensitive to external shocks created by both natural and manmade factors.
In case any major crisis hits rice production, the country may face several problems for importing rice as China and other countries may get priority over Bangladesh.
Indian rice is more likely to go to Iraq, Iran, Afghanistan and African countries rather than Bangladesh. Rice of Myanmar, Cambodia and Vietnam may go to China, if China faces any rice crisis internally.
In this context, Bangladesh has to relook at its rice policies and strategies in order to produce sufficient rice taking into account the likelihoods of shocks arising from climate change and also from import difficulties.

http://www.thedailystar.net/business/structural-changes-asian-rice-trade-lessons-bangladesh-1538269

World Trade Center Arkansas Attends Agriculture Conferences; NAFTA Emphasized

Feb. 21, 2018
Photo Submitted
Melvin Torres, center, stands with Arkansas Secretary of Agriculture Wes Ward, left, and Arkansas Rice Federation Executive Director, Lauren Waldrip Ward at the annual Arkansas Rice meeting on Feb. 19.
Arkansas leaders convened multiple times in the past seven days in Jonesboro to stress the importance of Arkansas agriculture and the impact of NAFTA on Arkansas growers. The 2018 Arkansas State University Agribusiness conference took place on Feb. 14 and the Arkansas Rice Federation's annual meeting took place on Feb. 19, 2018.Melvin Torres, director of Western Hemisphere Trade, represented the World Trade Center Arkansas at these events.
Arkansas Gov. Asa Hutchinson was the keynote speak at the Arkansas Rice meeting.
"Arkansas exports over 40 percent of our rice to Mexico and Canada," he said. "The president understands the importance of these markets and I will continue to reinforce the significance of these markets and all international markets to our state's agriculture industry."The United States should not pull out of NAFTA," Hutchinson said. "I have growing confidence that this administration understands we can't pull out of NAFTA."The Arkansas Rice meeting also highlighted voluntary smoke management guidelines for crop burning as a part of complete crop management strategy.
Last week's Agribusiness Conference convened industry leaders, officials and executives to discuss the biggest issues and impacts to agriculture. Arkansas Secretary of Agriculture Wes Ward was the keynote speaker at this event. Ward also was present at the Arkansas Rice meeting. The importance of NAFTA to the state of Arkansas was stressed at both meetings.
"NAFTA's impact on the state of Arkansas is significant," said Torres. "More than 100,000 jobs in Arkansas depend on trade with Canada and Mexico, and Arkansas shares a positive trade balance with both countries. Exports to Mexico are growing 3.6 times faster than state exports to any other country and have grown by 700 percent."
In June 2017, Torres testified before the United States Trade Representative in Washington, D.C. on behalf of Arkansas companies on the benefits of NAFTA and their needs within the modernization negotiations. Governor Asa Hutchinson also spoke on the benefits of NAFTA at the World Trade Center Arkansas on Jan. 16 at an event called Arkansas and NAFTA.
The mission of the World Trade Center Arkansas is to grow trade and increase Arkansas exports by connecting Arkansas businesses to the world through international trade services. For more information and valuable updates, please follow the Center on Facebook and Twitter, or subscribe to the World Trade Center Arkansas newsletter.

Structural changes in Asian rice trade: Lessons for Bangladesh

Structural changes in Asian rice trade: Lessons for Bangladesh
Rice production in Bangladesh suffers from instability and is highly sensitive to external shocks created by both natural and manmade factors. Photo: Star/file

Subash Dasgupta

The recession of 2007-2008 that sent rice prices spiralling came as a shock to all rice producing and consuming countries which prompted many to review their policies related to rice production towards achieving food self-sufficiency within the shortest possible time. The world has witnessed how swiftly many countries have changed their approach for rice production from self-reliance to self-sufficiency. The former policy was adopted when the world economy embraced globalisation and open market systems in the 1990s. Reversal to the policy of self-sufficiency started giving dividend within three years. Rice production increased in many countries considerably. It happened thanks to increased allocation of resources by the government because of a drastic fall in international supports. These changes in production have brought structural changes in international rice trade systems. The status of the top rice exporting country changed from Thailand to India through Vietnam within a decade (2007-2017). Cambodia and Myanmar showed their strong presence as rice exporting countries.
 In the global rice trade, Thailand dominated until the first decade of the 21st century. The other main rice exporting countries were Pakistan, USA, China and India. Bangladesh has been able to stop depending on rice import until 2015 and instead it exported 50 000 tonnes of rice to Sri Lanka in 2014. However, rice production in Bangladesh is not stable due to recurrence of natural disasters, intensity of which is on the rise. It was clearly evident in 2017. Vietnam was predicted by many international organisations to emerge as the number one rice exporting country in the world by 2016. Although it did not entirely happen, the country briefly occupied the top position mainly due to disastrous rice policy undertaken by political government of Thailand. Thailand has been suffering from this policy setback, although it started recovering gradually. Indian rice export increased rapidly due to the pragmatic programmes in the eastern part of the country under the name of the second green revolution. Only 8 percent of rice (approximately 35-37 million tonnes) produced globally is traded in international markets.
Global annual production in terms of milled rice totals around 450 to 452 million tonnes. The share of rice export from South Asian (SA) countries has been increasing compared with their South East Asian (SEA) counterparts. Mainland countries of SEA (Thailand, Vietnam, Cambodia, Laos and Myanmar) are rice exporting countries and they export around 16-18 million tonnes of rice annually. On the other hand, island nations of SEA (Indonesia, Philippines, Singapore, Brunei and Malaysia) import rice, amounting to 5-6 million tonnes annually. Due to massive policy changes, China is emerging as a major rice importing country of the world. The country imported 5 million tonnes of rice in 2016; the figure is likely to rise by 2020.
 If this trend continues, China's rice import figure may reach around 16 to 20 million tonnes by 2030. In near future, rice production may decrease in Thailand and Vietnam. Main reason behind it is that rice farmers are poorer than farmers growing other staple like wheat and maize. In order to achieve the status of a wealthy nation, the first task is to pull out rice farmers from poverty. The main concern of these two countries is how to make rice farmers wealthier. Reduction of rice production is one of the ways toward achieving it. Africa is consuming more rice than its production. Estimates show that Africa's rice consumption will increase 42 percent by 2030. Nigeria is now the second largest importer of rice after China. Rice production in India increased from 89 million tonnes to 105 million tonnes during the period from 2009–2010 to 2014-15.
Out of 16 million tonnes of additional rice produced, more than 10 million tonnes came from seven eastern states of India which border on Bangladesh. Their contribution to national rice production increased from 51.24 percent to 53.24 percent during the same period. Rice export has been increasing in Myanmar—another bordering country of Bangladesh—steadily. It gives us hope that Bangladesh would be able to import rice from its two neighbouring countries when it needs most. However, the most worrying aspect in global rice economy is the entry of China in the tiny rice market with its large demand of rice. China will probably try to meet its production shortfall by importing from Vietnam, Cambodia and Myanmar.
However, China prefers importing low-quality rice only for production of alcohol, noodles, animal feed and for other industrial uses. Currently, 47 percent of rice in China comes from Vietnam. It has political implication as Vietnam is one of the strong rivals of China with regard to territorial disputes in South China Sea and has established close friendly relations with India. Five island nations of Asean also imports around 5-6 million tonnes of rice annually. Rice imports are rising in Indonesia and the Philippines as these two islands are most disaster-prone. Some countries in the Near East like Iran, Iraq and Saudi Arabia are also rice importing countries. Any production disturbance in Iraq and Iran may affect rice trade. Bangladesh's efforts to increase rice production and productivity are well known which are reflected in the record of its success.
However, rice production in Bangladesh suffers from instability and is highly sensitive to external shocks created by both natural and manmade factors. In case any major crisis hits rice production, the country may face several problems for importing rice as China and other countries may get priority over Bangladesh. Indian rice is more likely to go to Iraq, Iran, Afghanistan and African countries rather than Bangladesh. Rice of Myanmar, Cambodia and Vietnam may go to China, if China faces any rice crisis internally. In this context, Bangladesh has to relook at its rice policies and strategies in order to produce sufficient rice taking into account the likelihoods of shocks arising from climate change and also from import difficulties. The writer is the former senior technical officer of the Food and Agriculture Organisation of the United Nations