3rd August ,2019 Daily Global Regional Local Rice E-Newsletter

2nd August,2019 Daily Global Regional Local Rice E-Newsletter

Increasing aridity threatens food security in Pakistan

Farmlands are affected by the increasing aridity in Pakistan. Copyright: Irfan Muhammad, CC BY-SA 3.0

Speed read

·       Sixty per cent of Pakistan’s landmass hit by rising aridity

·       Declining precipitation over the last century is main cause

·       Pakistan among 10 countries most affected globally by climate change

By: Saleem Shaikh[ISLAMABAD] Aridity has gripped over 60 per cent of Pakistan, say researchers who made a long-term (1901–2016) study of precipitation (rain, snow, sleet, dew and hail) and potential evapotranspiration (evaporation from soil and by plant transpiration) over the country’s 80 million hectares of landmass.

Pakistan is among the top ten countries “most affected by extreme weather events”, according to the Global Climate Risk Index, released by Germanwatch, a public policy group.

“Our study findings show that declining precipitation has remained a key cause of aridity in most of the country”

Shamsuddin Shahid, Universiti Teknologi Malaysia

Researchers from China, Malaysia and Pakistan, who published their work in Hydrology and Earth System Sciences this month (19 July), say aridity increased mostly in the southern parts of the country, where rains have shown a declining pattern over the past century.

The study shows that a major shift in aridity and rainfall occurred between 1971 and 1980 and that average annual evapotranspiration rates in most parts of the country are much higher than precipitation rates, resulting in rising aridity.
 
“Warming temperatures and consequent evapotranspiration have been long believed to be key causative forces of aridity. But our study findings show that declining precipitation has remained a key cause of aridity in most of the country,’’ says Shamsuddin Shahid, an author of the study and associate professor at the hydrology department, Universiti Teknologi Malaysia.
 
Shahid tells SciDev.Net that a large area in the northeast of Pakistan became wetter during the study period 1901–2016. Most of the country’s southern half is witnessing rising aridity trends while the upper half of the country, especially the northeast, is becoming less arid.

Consequently, agriculture in the central and southern part of the country, where rice, sugarcane, wheat and cotton are grown, is threatened by high evapotranspiration rates while farming in the upper half of the country, which mostly grows maize, potato, onion and other vegetables, is in a better situation, Shahid says.

Aridity is fast emerging as the gravest risk to Pakistan’s agriculture, which is the mainstay of the economy, says Amjad Tahir Virk, who led the first phase of the five-year UNDP-funded Desertification in Pakistan project that ended in 2013.

“Surging aridity in Pakistan’s south, which contributes 70 per cent of the total agriculture productivity and farm-related jobs, means [a] hike in overall food insecurity, rural poverty and significant loss of farm-based jobs,” Virk, who specialises in science-based aridity management, tells SciDev.Net.

Declining precipitation patterns in the country’s southern parts means more frequent droughts even in irrigated areas, says Virk. On the other hand, growing precipitation trends in the northern regions means these areas will suffer more riverine and flash floods in the coming years, he adds.

https://www.scidev.net/asia-pacific/climate-change/news/increasing-aridity-threatens-food-security-in-pakistan.html

Rice exporters want Centre to obtain duty cuts at RCEP

Vishwanath Kulkarni  Bengaluru | Updated on August 01, 2019  Published onAugust 01, 2019

Indian exporters also face non-tariff barriers from countries such as Indonesia and Malaysia

India’s non-basmati rice exporters want the government to bargain hard in the ongoing RCEP negotiations, seeking duty cuts from ASEAN nations, the second largest market for the cereal. Though India is the largest exporter of rice, it does not have any say in the South East Asian region, where four of the top five markets are located.

Out of bounds

“We would like the government to press for duty cuts on rice exports in the RCEP talks,” said BV Krishna Rao, President of the Rice Exporters Association. In fact, India competes with major Asian rice producers such as Thailand, Vietnam and Myanmar in markets such as Africa, but it is finding it difficult to get a foothold in the South East Asian market.

Africa is the biggest market for rice, estimated at around 15 million tonnes annually, where India has a share of over 50 per cent. South East Asia is the second largest market, with an estimated size of around 8-10 mt annually. “Lack of market access, non-tariff barriers and higher duty imposed by Asean members on Indian rice has forced exporters to concentrate on the African market,” Rao said.

The ASEAN countries impose a duty of 50 per cent on the Indian rice. However the duty imposed on rice produced by member countries is 35 per cent. “There is a duty difference of 15 per cent on the Indian rice. If negotiated well at the RCEP, it could open new markets for us,” Rao said.

Non-tariff barriers

Besides, the Indian exporters also face non-tariff barriers from countries such as Indonesia and Malaysia, from whom we import bulk of the edible oils. Indonesia, for example, specifies a short delivery period of five days for tenders, which works in favour of neighbouring producers such as Thailand and Vietnam, but not for Indian exporters.

“It is difficult to participate in such tenders considering the logistical issues,” Rao said. Similarly, Malaysia prefers to import from Pakistan due to religious connections, he said.

While India exports rice to over 170 countries, it is finding it difficult to crack the markets in China, Indonesia, Malaysia and the Philippines. India is the largest exporter of rice and accounts for a fourth of the global shipments. In 2018-19, non-basmati rice exports fell to 7.5 million tonnes from 8.8 million tonnes the previous year.

https://www.thehindubusinessline.com/economy/agri-business/rice-exporters-want-centre-to-obtain-duty-cuts-at-rcep/article28780006.ece

Drought, Dams Drive Mekong River to Its Lowest Level in 100 Years

By Ron Brackett

14 hours ago

weather.com

A boat sits in a briny canal on April 29, 2017 in Vietnam's Ben Tre province. The Mekong River Delta is among the most vulnerable regions in South Vietnam.

(Linh Pham/Getty Images)

At a Glance

·       The Mekong River flows through six countries in Southeast Asia.

·       The area has been suffering from a severe drought.

·       Hydroelectric dams upriver have also restricted water flow.

Southeast Asia's Mekong River has dropped to its lowest level in more than 100 years, and experts warn monsoon rains that have arrived two months late may not be enough to undo the damage.

Food supplies for tens of millions of people are endangered. Fishermen who expect to haul in large fish this time of year are seeing only tiny ones. Farther downstream, scientists aren't even seeing small fish or fish larvae. Rice farmers have been unable to plant their crops in the parched ground. Others who did plant have watched the slender green shoots die as saltwater backs up into the delta.

Severe drought is part of the problem. Monsoon season typically starts in May, but rainfall for the past two months has been more than 40 percent below normal, Reuters reported.

Hydroelectric dams upriver in China and Laos are making the situation worse, Asian government officials and scientists say.

(MORE: Vampire Tree Stump Remains Alive by Drawing Sustenance from Neighboring Trees)

The Mekong River begins in China, where it is called the Lancang, and it flows through Myanmar, Thailand, Laos, Cambodia and Vietnam before reaching the South China Sea.

China operates 11 dams along the Mekong, From July 5 to 19, it cut by half the amount of water it would normally release from the Jinghong Dam in Yunnan province, the Nikkei Asian Review reported. Chinese water officials said it was for grid maintenance. China has also promised to release more water from the dam.

A fisherman pulls his net from the Mekong River in Kandal province in southeast Cambodia, on January 5, 2018. Severe drought has prevented many fish from spawning this year.

(Tang Chhin Sothy/AFP/Getty Images)

The new Xayaburi Dam in Laos is also being blamed for lower water levels in the Mekong. From July 15 to 29, test runs were conducted at the dam. Critics of the dam say the river's water receded significantly after the tests began, according to the Bangkok Post. Anuparp Wonglakorn, deputy managing director of the company that operates the dam, maintained the tests had no effect on water flow. He blamed the lack of rain.

Both countries and others in the region plan more dams along the Mekong and its tributaries.

“The accelerating pace of change, coupled with cumulative impacts of transboundary stressors and the impending impacts of climate change, point to a fear that the river, which is the lifeblood of most of Southeast Asia, will gradually lose function until it no longer supports the huge diversity of wildlife and millions of people that depend on it,” says Zeb Hogan, a fish biologist at the University of Nevada, Reno, told National Geographic.

Hogan explained that the Mekong experiences a "flood pulse" when the monsoon rains come. Without that pulse, larvae and tiny fish aren't swept into lakes and floodplains where they can mature.

“Without the flood pulse, fish may delay or skip spawning,” said Hogan, who also leads a USAID project called Wonders of the Mekong. “For rare and endangered species, this situation threatens their survival, and for commercially important fish species, future harvests could be significantly reduced.”

The fish that are being found are much smaller than in years past. In northeastern Thailand, fishermen have started using smaller mesh nets and finer lines.

“I wish the seasonal pattern would return so fish can lay eggs as they used to,” Chai Haikamsri told Reuters. “I wish the dams would not disrupt this any more.”

Rice saplings grow in a rice field in the My Xuyen district in southern Vietnam on July 13, 2017. Saltwater is encroaching on the Mekong River Delta, making it unsuitable for growing crops.

(Roberto Schmidt/AFP/Getty Images)

The low river is also affecting rice farmers. In Laos, farmers have been able to plant rice on only about half of the acreage usually used because the land is too dry, Radio Free Asia reported. This year’s rice production will be more than 17,500 tons less than last year's, an official said.

The Mekong's flow has been so reduced in Vietnam that saltwater from the South China Sea is washing up to 25 miles inland on the delta, Circle of Blue reported. Half of Vietnam's rice is grown on the Mekong Delta. Some estimates say half of the delta's arable land – about 3,750 square miles – have been damaged by the salt.

Sediment that could help rebuild the delta land is trapped by the dams upriver.

Marc Goichot of the WWF Greater Mekong Programme told the Nikkei Asian Review, "Cambodia has one of the most productive inland fisheries in the world, and it provides affordable protein for all. Reduction of sediment will cause the delta to sink and shrink, reducing the resilience of 18 million Vietnamese to tropical storms, floods, as well as causing increased salt intrusion and reduced access to freshwater."

Experts warn that all of this could mean the end of the Mekong River ecosystem.

“With the completion of more mainstream dams and the cumulative effects of climate change, that tipping point” for when the river can no adjust to the changes “may be coming closer," Brian Eyler, the Southeast Asia program director at the Stimson Center in Washington D.C., told National Geographic.

The Weather Company’s primary journalistic mission is to report on breaking weather news, the environment and the importance of science to our lives. This story does not necessarily represent the position of our parent company, IBM.

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https://weather.com/science/environment/news/2019-08-01-drought-dam-drive-mekong-river-to-lowest-level-in-100-years

China's CRISPR revolution

1.     Jon Cohen

 See all authors and affiliations

Science  02 Aug 2019:
Vol. 365, Issue 6452, pp. 420-421
DOI: 10.1126/science.365.6452.420

Editing of plant, animal, and human genomes has never been easier, as this country's scientists are rapidly demonstrating.

FOR MANY PEOPLE, CRISPR plus China equals the biophysicist He Jiankui, who infamously used the genome editor last year to alter the DNA of two human embryos that would become twin girls. Before his announcement, He was little-known within the country's CRISPR community, which has grown rapidly and is now challenging—and by some measures surpassing—the United States in its use of the powerful tool (see graphics, below).

A better representative of CRISPR in China is plant biologist Li Jiayang of the Institute of Genetics and Developmental Biology in Beijing. Li left the country in 1985 for his graduate education, as have many of China's best and brightest young scientists over the past few decades, and then returned home in 1995 to focus on manipulating plant DNA. Li, who recently ended a stint as head of the Chinese Academy of Agricultural Sciences, says he struggled for years to make pinpoint genome edits. CRISPR gave him a simple, fast way to do just that, turbocharging his efforts to modify rice. “Now, suddenly, the dreams come true,” says Li, whose lab is humming at 9 p.m. on a Wednesday with two dozen members of his team running experiments.

A technician in Gao Caixia's lab selects immature wheat embryos for CRISPR editing.

PHOTO: STEFEN CHOW

The lights are burning late at CRISPR labs around the world. In 2012, the year researchers transformed a bacterial immune system into the fast and versatile tool for genome engineering, scientific publications mentioning CRISPR totaled 127. Since then there have been more than 14,000. Although the United States has had the most CRISPR publications—and continues to have the most cited papers—China is now a close second and is pouring money into CRISPR's uses.

With support from the Pulitzer Center, Science visited scientists in five Chinese cities who are harnessing CRISPR in a wide range of disciplines. China's biggest push is in agriculture (see p. 422) but researchers there are also applying the editor on a large scale in animals (see p. 426), with pig organs for human transplants the most provocative goal. And China is aggressively exploring genome editing in medicine, having launched far more clinical trials using CRISPR, mainly for cancer, than any country (Science, 6 October 2017, p. 20).

·        Open in new tab

CREDITS: (GRAPHICS) N. DESAI/SCIENCE; (DATA) GEOFFREY SIWO/UNIVERSITY OF NOTRE DAME; J. MARTIN-LAFFON ET AL., NATURE BIOTECHNOLOGY, VOL. 37, JUNE 2019, 601–621; A. RICROCH ET AL., EMERGING TOPICS IN LIFE SCIENCES (2017) 1 169–182

Although He's work lies far outside the mainstream, his actions haunt China (see p. 436). So does another, largely untold aspect of his rise and fall: the role that others, in China and abroad, played in the runup to his experiment. He shared his plans widely, and although several confidants tried to dissuade him, some were more encouraging (see p. 430).

Geneticist Wei Wensheng of Peking University in Beijing says the Chinese scientific culture has to look hard at how it creates researchers like He by overemphasizing firsts. “What I don't understand is why do you want to be named the first of something horrible or bad. What's the point?” Wei asks.

Yang Hui of the Institute of Neuroscience in Shanghai, one of the most successful young CRISPR researchers in the country, hopes China can move past He and up its game. Yes, Chinese researchers publish many CRISPR studies, he says, but “very few” do respected work that breaks new ground. “Our generation should publish more innovative papers,” Yang says.

But Yang stresses that he has seen the quality increase “very fast” over the past 2 years or so. As China plants its flag at this scientific frontier, overseas sojourns like Li's and his own may soon be the exception. “Now, many good students will choose to stay here because of the good opportunities,” Yang says. “And we have many good students working hard.”

https://science.sciencemag.org/content/365/6452/420

Farmers press for anti-dumping duties on undervalued rice imports

August 1, 2019 | 10:09 pm

REUTERS

A FARMERS’ organization said persistent undervaluation of rice imports is depriving the agriculture sector of tariffs to fund upgrades to their farming technology, and urged the government to counter the undervaluation by resorting to anti-dumping duties.

In a statement, Federation of Free Farmers National Manager Raul Q. Montemayor noted that data from the Bureau of Customs indicate that the average landed cost of rice imports inclusive of insurance and freight was at $227 per metric ton (MT), well below the $391 per MT to $422 per MT estimated cost from the various producing countries, suggesting undervalued shipments which cost the government about P5 billion in foregone revenue.

He said undervalued gain imports represent unfair competition that is also exerting pressure on the prices of domestically-grown rice.

Anti-dumping duties are imposed on imports which a government determines to be priced below fair market value. In the Philippines, these measures are authorized by Republic Act 8752, or the Anti-Dumping Act of 1999, which allows the Secretary of Agriculture to initiate an anti-dumping investigation, the Bureau of Customs (BoC) to require importers to post cash bonds equivalent to the estimated dumping margin, and the Tariff Commission to conduct investigations into anti-dumping complaints.

“The BoC has argued that they cannot question the declared value of imported rice if valid documents are submitted by the importer, even if there appears to be a clear case of undervaluation,” Mr. Montemayor said.

“With anti-dumping, an importer will be subject to higher anti-dumping duties the larger the undervaluation, no matter what documents are submitted. RA 8752 also provides that the license of an importer who is caught dumping can be cancelled, and its officers can be barred from holding positions in any business enterprise in the country,” he noted.

The BoC recently said that it is on track to fund from tariffs the Rice Competitiveness Enhancement Fund (RCEF), which by law must be allocated P10 billion a year.

The Rice Tariffication Act allows rice to be imported more freely by private entities, in exchange for a tariff of 35% on grain from Southeast Asia. The tariffs will finance RCEF to help farmers raise their productivity and gain more access to inputs and credit.

The BoC has collected about P6.5 billion in tariffs as of mid-July. — Vincent Mariel P. Galang

https://www.bworldonline.com/farmers-press-for-anti-dumping-duties-on-undervalued-rice-imports/

‘Rice planters to get free machines in 2020’

By  Jasper Y. Arcalas

August 2, 2019

A farmer walks on a rice field in Tarlac in this file photo.

Rice planters would have to wait until the first quarter of next year for their free farm machines from the government as the budget impasse stalled the release of funds.

Philippine Center for Postharvest Development and Mechanization (PhilMech) Applied Communication Division Chief Rodolfo P. Estigoy said the agency just received P2.1 billion from the Department of Budget and Management (DBM) through a special allotment release order last July 22.

The amount is part of the agency’s share of P5 billion from the P10-billion Rice Competitiveness Enhancement Fund (RCEF) mandated by Republic Act (RA) 11203.

RCEF was created to help farmers cope with the adverse effects of the rice trade liberalization law.

Estigoy said PhilMech, an attached agency of the Department of Agriculture (DA), will start the survey of some 1,200 rice-producing municipalities which would receive free farm equipment from the government.

The survey aims to determine the required and suitable farm machines of each municipality to help planters improve their productivity and increase their income, he added.

“The P100 million will be used for extension services while the P2 billion will be used to purchase agricultural machines,” Estigoy told reporters in a news briefing on Thursday.

“PhilMech will adopt a needs-based approach wherein the agency will determine the most pressing needs [in terms of machinery] in the municipalities and provide these needs,” he added.

Citing a recent evaluation by PhilMech, Estigoy said the agency found that the most immediate need of rice farmers are equipment for land preparation, like hand tractors and dryers.

He said the agency expects to finish the survey and evaluation of the target beneficiaries within the month. PhilMech is targeting to kick off the bidding and procurement of farm equipment by September.

The agency is expected to start delivering the free farm equipment in February 2020.

Beneficiaries of the free machines include farmers’ groups in the 1,200 municipalities in 57 major rice-producing provinces that are in the DA’s database, Estigoy said.

Nueva Ecija, which accounts for 10.18 percent of national output, Isabela, Pangasinan, Cagayan and Iloilo are among the country’s top rice producers, according to PhilMech.

The agency will group rice producers into six clusters to facilitate the implementation of free equipment program. These clusters are Luzon A, Luzon B, Luzon C, Visayas, Mindanao A, and Mindanao B.

Estigoy said PhilMech expects to get the remaining P2.9 billion from the national government before the end of the year as the rice trade liberalization law mandates that the agency should get P5 billion annually in the next six years.

Money for the RCEF is being frontloaded by the government to cushion the impact of a more open Philippine rice market on planters. Starting next year, money from the RCEF will be funded by tariffs collected from rice imports.

The DBM said on its web site that it has released a total of P5 billion last July 18 to RCEF implementing agencies.

The Philippine Rice Research Institute (PhilRice) received P2.095 billion while the Technical Education and Skills Development Authority (Tesda) was given P700 million.

The DBM also released P100 million to the Agricultural Training Institute (ATI), another attached agency of DA.

Under RA 11203, PhilMech must receive P5 billion for the distribution of free equipment to farmers, while PhilRice woud be given P3 billion for the distribution of inbred rice seeds. Tesda and ATI will get P1 billion each for credit assistance and 
farmers’ training.

Jasper Y. Arcalas

Jasper Emmanuel Y. Arcalas is a graduate of the UST Journalism School (Batch 2016). He currently covers agribusiness for the BusinessMirror. He joined the news outfit in August 2016.

https://businessmirror.com.ph/2019/08/02/rice-planters-to-get-free-machines-in-2020/

Senators seek review of Rice Tariffication Act

Published August 2, 2019, 11:34 AM

By Mario Casayuran

Pro-administration Senator Cynthia A. Villar and opposition senator Francis N. Pangilinan yesterday asked the Senate to review the negative impact of the Rice Tariffication Act that became a law five months ago.

Senator Cynthia Villar and Senator Francis Pangilinan (MANILA BULLETIN)

Pangilinan revealed that about 200,000 farmers have stopped working on food production and 4,000 rice mills have stopped operating.

‘’Did farmers get help from the P10 billion rice fund? Did rice prices go down?’’ he asked.

In Senate Resolution 36 that he filed, Pangilinan asked the Senate Committee on Agriculture and Food chaired by Senator Cynthia A. Villar to conduct an inquiry on the impact of the law (Republic Act 11203) on rice farmers and the local rice industry.

Villar herself filed a resolution seeking an inquiry into the implementation of the law lifting the quantitative restriction on rice importation and creating the P10 billion Rice Competitiveness Enhancement Fund (RCEF).

Villar emphasized that she has made it a point to prioritize the exercise of her committee’s oversight function on the implementation of the law enacted on February 14, 2019.

“This is the protection measure we have in place for our local farmers in a tariffied regime we find ourselves in following the expiration of the agreement with the World Trade Organization. We believe in this law and for our farmers and we want it to succeed,’’ she said.

Pangilinan, for his part, said ’’farmers tell us that their earnings dropped further with the implementation of the law.

‘Rice tariffication is killing us’ said one farmer from Nueva Ecija who approached us.’’

The resolution noted that the government’s economic team pushed for the passage of the law due to high rice prices, with inflation reaching a nine-year high of 6.7 percent in September to October 2018.

The impact of the law on our farmers is swift and brutal but the implementation of the provisions aimed at easing this severe effect is slow if non-existent. Where is the help from the P10-billion RCEF?” he asked.

RCEF, which is funded by tariffs generated by rice imports, is set up to make the domestic rice industry more competitive through farm mechanization, access to better seeds, and more financing and extension services, among others.

The resolution notes that the steep drop in farm-gate prices of palay (unhusked) four months after the implementation of the law will result in an estimated loss of P114 billion for Filipino farmers for the entire year.

Farm-gate price of palay end-June fell by 16.4 percent to P17.77 per kilo, compared to last year’s P21.39 per kilogram, according to the Philippine Statistics Authority (PSA). Farmers’ groups claim that in some areas, the drop has been to as low as P12 per kilo.

“Aside from the mentioned data, we hope concerned government officials will listen to the farmers so that they understand the dire straits farmers face. Special focus should be on the small-holder palay producers taking the brunt of the impact of the law,” Pangilinan said.

“We should act fast or we might wake up one day without farmers in our land,” he added.

At the other end of the market chain, rice consumers also noted that retail rice prices have not gone down as promised by the law. On the second week of July, the PSA monitored the average retail price of regular- and well-milled rice ranging from P38.40 to P42.88 per kilo.

A week before the law took effect on March 5, rice prices in stores ranged from P40.65 to P44.58 per kilo.
Pangilinan said Filipino rice farmers are discouraged from toiling in the farms because their produce is purchased at lower prices.

“Even consumers did not seem to benefit from this law because now we don’t have NFA rice, which then costs only P27 to P30 per kilo in NFA outlets,” he said.

‘’Who benefited from this policy? It looks like we’ve suffered a double whammy,” he pointed out.

Pangilinan served as the Presidential Assistant on Agricultural Modernization to then President Benigno Simeon Aquino III, when food prices were kept low even in the face of El Niño, a climate pattern that normally brings drought.

In his concurrent capacity as chairman of the National Food Authority (NFA) Council, he led the rejection of bids for government-to-government rice importation that were priced too high, and saved the government as much as P8 billion when the council eventually imported at lower prices.

Pangilinan said he believes that agriculture is the key to Philippine progress. He authored the recently signed Sagip Saka Act of 2019 which links farmers directly to buyers like government offices, to eliminate middlemen and effectively raise farmers’ incomes via entrepreneurial programs.

For the 18th Congress, Pangilinan has filed 13 agriculture- and environment-related bills.

They are: Senate Bills 31 on Coco Levy Trust Fund, 32 on creation of the Department of Fisheries and Aquatic Resources, 33 on Postharvest Facilities, 34 on Organic Agriculture, 35 on Expanded Crop Insurance, 36 on Rainwater Management, 40 on Single-use Plastic Regulation, 256 on Agricultural Land Conversion Ban, 257 on Urban Agriculture, 263 on Solid Waste Importation Ban, 423 on Food Waste Reduction, 638 on Electric and Hybrid Vehicles Incentives, and 639 on National Mangrove Forest Protection and Preservation.

https://news.mb.com.ph/2019/08/02/senators-seek-review-of-rice-tariffication-act/

Nagpur Foodgrain Prices Open- August 1, 2019

AUGUST 1, 2019 / 1:36 PM

* * * * * *

Nagpur Foodgrain Prices – APMC/Open Market-August 1, 2019 Nagpur, Aug 1 (Reuters) – Gram and tuar prices zoomed up in Nagpur Agriculture Produce and Marketing Committee (APMC) on increased buying support from local millers amid tight supply from producing regions because of rains. Good recovery on NCDEX in gram and fresh hike in Madhya Pradesh pulses and reported demand from South-based millers also jacked up prices. About 800 bags of gram and 150 bags of tuar reported for auction, according to sources.

GRAM

* Gram varieties ruled steady in open market here on subdued demand from local

traders.

TUAR

* Tuar gavarani recovered in open market here on renewed demand from local traders.

* Moong Chamki firmed up again in open market here on good demand from

local traders amid weak arrival from producing belts.

* In Akola, Tuar New – 5,600-6,000, Tuar dal (clean) – 8,300-8,500, Udid Mogar (clean)

– 7,200-7,800, Moong Mogar (clean) 8,200-9,200, Gram – 4,400-4,500, Gram Super best

– 6,200-6,400 * Wheat, rice and other foodgrain items moved in a narrow range in

scattered deals and settled at last levels in thin trading activity.

Nagpur foodgrains APMC auction/open-market prices in rupees for 100 kg

FOODGRAINS Available prices Previous close

Gram Auction 4,000-4,300 4,000-4,200

Gram Pink Auction n.a. 2,100-2,600

Tuar Auction 5,150-5,775 5,000-5,205

Moong Auction n.a. 3,950-4,200

Udid Auction n.a. 4,300-4,500

Masoor Auction n.a. 2,200-2,500

Wheat Lokwan Auction 2,000-2,120 1,950-2,090

Wheat Sharbati Auction n.a. 2,900-3,000

Gram Super Best Bold 6,400-6,600 6,400-6,600

Gram Super Best n.a. n.a.

Gram Medium Best 6,000-6,200 6,000-6,200

Gram Dal Medium n.a. n.a

Gram Mill Quality 4,500-4,600 4,500-4,600

Desi gram Raw 4,450-4,550 4,450-4,550

Gram Kabuli 8,300-10,000 8,300-10,000

Tuar Fataka Best-New 8,600-8,800 8,600-8,800

Tuar Fataka Medium-New 8,200-8,400 8,200-8,400

Tuar Dal Best Phod-New 7,900-8,100 7,900-8,100

Tuar Dal Medium phod-New 7,200-7,600 7,200-7,600

Tuar Gavarani New 6,050-6,150 6,000-6,100

Tuar Karnataka 6,300-6,500 6,300-6,500

Masoor dal best 5,600-5,700 5,600-5,700

Masoor dal medium 5,200-5,400 5,200-5,400

Masoor n.a. n.a.

Moong Mogar bold (New) 8,800-9,500 8,800-9,500

Moong Mogar Medium 7,000-7,800 7,000-7,800

Moong dal Chilka New 6,800-7,900 6,800-7,900

Moong Mill quality n.a. n.a.

Moong Chamki best 8,400-8,800 8,300-8,800

Udid Mogar best (100 INR/KG) (New) 7,500-8,200 7,500-8,200

Udid Mogar Medium (100 INR/KG) 5,500-6,500 5,500-6,500

Udid Dal Black (100 INR/KG) 4,500-4,800 4,500-4,800

Mot (100 INR/KG) 5,200-6,500 5,200-6,500

Lakhodi dal (100 INR/kg) 4,900-5,000 4,900-5,000

Watana Dal (100 INR/KG) 5,600-5,800 5,600-5,800

Watana Green Best (100 INR/KG) 6,900-7,300 6,900-7,300

Wheat 308 (100 INR/KG) 2,100-2,200 2,100-2,200

Wheat Mill quality (100 INR/KG) 2,000-2,100 2,000-2,100

Wheat Filter (100 INR/KG) 2,500-2,600 2,500-2,600

Wheat Lokwan best (100 INR/KG) 2,400-2,600 2,400-2,600

Wheat Lokwan medium (100 INR/KG) 2,200-2,300 2,200-2,300

Lokwan Hath Binar (100 INR/KG) n.a. n.a.

MP Sharbati Best (100 INR/KG) 3,200-3,800 3,200-3,800

MP Sharbati Medium (100 INR/KG) 2,700-3,000 2,700-3,000

Rice Parmal (100 INR/KG) 2,200-2,300 2,200-2,300

Rice BPT best (100 INR/KG) 3,200-3,800 3,200-3,800

Rice BPT medium (100 INR/KG) 2,700-3,100 2,700-3,100

Rice Luchai (100 INR/KG) 2,900-3,000 2,900-3,000

Rice Swarna best (100 INR/KG) 2,600-2,750 2,600-2,750

Rice Swarna medium (100 INR/KG) 2,200-2,500 2,200-2,500

Rice HMT best (100 INR/KG) 3,800-4,400 3,800-4,400

Rice HMT medium (100 INR/KG) 3,400-3,600 3,400-3,600

Rice HMT new (100 INR/KG) 3,800-4,200 3,800-4,200

Rice Shriram best(100 INR/KG) 5,500-5,800 5,500-5,800

Rice Shriram med (100 INR/KG) 4,500-4,800 4,500-4,800

Rice Shriram new (100 INR/KG) 4,400-5,000 4,400-5,000

Rice Basmati best (100 INR/KG) 8,500-13,500 8,500-13,500

Rice Basmati Medium (100 INR/KG) 5,000-7,000 5,000-7,000

Rice Chinnor best 100 INR/KG) 6,500-7,200 6,500-7,200

Rice Chinnor medium (100 INR/KG) 6,200-6,400 6,200-6,400

Rice Chinnor new (100 INR/KG) 5,200-5,800 5,200-5,800

Jowar Gavarani (100 INR/KG) 2,350-2,550 2,350-2,550

Jowar CH-5 (100 INR/KG) 2,050-2,250 2,050-2,250 WEATHER (NAGPUR) Maximum temp. 25.0 degree Celsius, minimum temp. 22.7 degree Celsius Rainfall : 11.1 mm FORECAST: Generally cloudy sky with one or two spells of rains or thunder-showers. Maximum and minimum temperature likely to be around 28 degree Celsius and 23 degree Celsius respectively. Note: n.a.—not available (For oils, transport costs are excluded from plant delivery prices, but included in market prices)

https://in.reuters.com/article/nagpur-foodgrain/nagpur-foodgrain-prices-open-august-1-2019-idINL4N24X2QL

Then Came the Rains: Floods in Northern Sri Lanka Endanger Paddy Farmers’ Harvest

Thayalini IndrakularasaReporter

 GPJ ACCURATE

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In December 2018, heavy rains flooded parts of Vavuniya district, destroying thousands of acres of paddy crops. With the new planting season approaching, paddy farmers find themselves in a financial bind as they rush to purchase seeds and prepare the land in time.

NEDUNKERNY NORTH, SRI LANKA – The sun rises in Sri Lanka’s Vavuniya district, chasing away the morning chill and revealing flood-ravaged gravel roads.

Kanakasuntharam Kajarakan wakes and goes to his paddy field. He gazes at the scene before him, lifting his hand to his head.

“In my experience of being a farmer, this is the only time that even 20-day crops were destroyed,” Kajarakan says, referencing the paddy crop’s quick growth period.

Kajarakan sowed 45 acres of paddy at the start of the planting season in October 2018. Five of the acres belonged to him; he had leased the remaining 40 acres.

Then the heavy rains came. His young paddy plants did not survive.

So he planted again, taking a loan of 300,000 Sri Lankan rupees ($1,702) from a local bank to prepare the soil and buy seedlings for 25 acres of land. But just weeks later, in late December of 2018, heavy flooding struck Vavuniya again, partially destroying his crops.

Kanakasuntharam Kajarakan holds paddy from his field in Maruthodai. He took a loan from a local bank to prepare the soil and buy seedlings for the 25 acres of land. But a heavy flood in December 2018 partially destroyed the crops.

Thayalini Indrakularasa, GPJ Sri Lanka

Kajarakan now has more than 1 million rupees ($5,675 dollars) to repay on two bank loans, the first of which he took out in April 2018. He has not been able to make the monthly payments since January and does not know where he will find the money to plant his crops come the new planting season in October.

“I cannot sleep in the night,” he says, his voice trembling. “I am in a dilemma and wonder how we are going to be rescued from this. Our names are going to be ruined.”

According to the government’s Rice Research & Development Institute (RRDI), about 1.8 million farm families cultivate paddy, which is known as rice once it is harvested. Rice is the main food crop in Sri Lanka.

After gaining independence in 1948, Sri Lanka worked to attain self-sufficiency in rice production. For most of the 2000s, it did, according to the Agriculture and Environment Statistics Division. But in 2017, floods and droughts devastated paddy fields, forcing Sri Lanka to import 700,000 tons of rice.

In Vavuniya district, where Kajarakan farms, this latest round of extreme weather affected 1,233 farmers, who saw nearly 3,200 acres of paddy fields damaged by flooding spurred by the heavy monsoon rains.

The Sri Lankan Department of Agriculture and the International Rice Research Institute (IRRI) are working together to return Sri Lanka to rice self-sufficiency through efforts such as improved rice exchange and the development of hybrid rice.

But in the meantime, operating with a financial deficit has become a common plight for farmers.

“The farmers are struggling to stabilize themselves,” says Sethukavalar Therusethukavalar of the Vavuniya District Farmers Organization Authority. “And so they carry this year’s burden into next year’s sowing.”

I cannot sleep in the night. I am in a dilemma and wonder how we are going to be rescued from this. Our names are going to be ruined.Kanakasuntharam Kajarakan

In an effort to ease the burden, the government offers a special insurance for farmers affected by floods.

A farmer whose entire crop was destroyed will be compensated with a payment of 40,000 rupees ($227) per acre for up to five acres, says Mohamed Rafeek Mohamed Zamir, district assistant director of the government’s Agricultural and Agrarian Insurance Board.

“This free insurance, fertilizer and subsidy will be given to those affected by the destruction of their paddy fields,” he says. “No fee is levied for this. The state is giving this free of charge.”

According to Zamir, 429 farmers were selected to receive the insurance and paid in July 2019.

But the financial assistance does not quell farmers’ fears of droughts and floods.

Sivasuntharam Sivasekaram has been farming for 45 years. In 2007, Sri Lanka’s ongoing civil war forced him from his land in Nedunkerny North. When he returned in 2011, he found the area changed.

“In the past, we were able to make a good living and profit with agriculture. But now it is not so,” he says. “Now nobody is able to predict when it will rain and when it is going to be sunny.”

Sivasekaram sowed 70 acres of paddy in the 2017 farming season, but due to the drought, he harvested only 32 acres. In the 2018 season, he decided to cultivate 25 acres; but that year, he was met by the heavy rains.

“Farming cannot be managed if both drought and floods are going to occur,” he says.

Typically, he says he harvests 40 bags per acre, each bag containing 50 kilograms (110 pounds) of paddy. But in the 2018 season, he harvested only 26 bags of paddy per acre.

Like many farmers in Nedunkerny North, Sivasekaram has made it a habit to save some of the seed after each harvest to sow the following season. But this year, he did not grow enough to save for next season’s sowing.

“This time it is a loss,” he says. “Next time we might have to take loans.”

Thushiththa Vadivalagan, a lecturer at the Sri Lanka School of Agriculture in Vavuniya, advocates for local farmers to switch to traditional types of paddy seeds, which she says are better able to withstand droughts and floods. But she says the traditional paddy strains take a few months longer to bear harvest and produce a lesser yield than the newer strains provided by paddy research centers.

Paddy farmers themselves are not eager to switch crops.

“Even though they have faced destruction continuously, they are engaged in cultivation with a hope that one day they will improve,” she says.

But Kajarakan doesn’t feel like waiting.

He still goes to his paddy fields, but he also has a dairy cow to attend to – and he intends to get more. He will also begin work as an electrician.

“We have been involved in agriculture from generation to generation,” Kajarakan says. “Even if I face difficulties, I think it is good for our children not be engaged in this work, because they should not suffer like us.”

Josephine Anthony, GPJ translated this article from Tamil.

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Thayalini IndrakularasaReporter

https://globalpressjournal.com/asia/sri_lanka/came-rains-floods-northern-sri-lanka-endanger-paddy-farmers-harvest/

RPT-Asia Rice-Vietnam prices dip on fears Philippines could curb imports

Arpan Varghese

AUGUST 2, 2019 / 6:34 AM

(Repeats with no changes)

* Thai rates rise on drought, Bangladesh grapples with floods

* India prices unchanged on weak demand from Africa

By Arpan Varghese

BENGALURU, Aug 1 (Reuters) - Export prices for Vietnamese rice fell this week on fears major buyer Philippines could curb imports, while a drought in Thailand and widespread floods in Bangladesh hit supply in the Asian hubs.

In Vietnam, 5% broken rice rates RI-VNBKN5-P1 fell to $340-$350 a tonne on Thursday from $350 last week.

“We’ve heard the Philippines will likely ban imports during its harvest in September to support local farmers,” a trader in Ho Chi Minh City said.

Buyers in the Philippines, one of Vietnam’s top buyers, had bought a lot of rice recently to build inventories, another trader said.

Thailand’s 5-percent broken rice RI-THBKN5-P1 prices rose to $395-$405 a tonne, free-on-board Bangkok (FOB), from $390-$395 last week mainly due to a widespread drought while overseas demand remained flat, traders said.

“The drought is raising concern about a possible supply shortage,” a Bangkok-based trader said.

High prices for Thai rice and a strong baht could deter buyers, traders said.

“There are no major deals in sight,” another trader said.

“All we’ve had so far this year are small deals with regular customers and that’s not really affected prices as much as the currency exchange and supply situation.”

The world’s second-largest rice exporter has seen a 19.6 percent decline in exports between January and June versus the same period last year, according to the Thai Rice Exporters Association.

Adverse weather hit markets in Bangladesh as well, with flooding submerging more than 100,000 hectares of paddy, according to a preliminary assessment by the agriculture ministry.

This comes at a time when farmers are struggling to secure fair prices for produce, with no overseas deals in sight since the country lifted an export ban in May, traders said.

Agriculture minister Abdur Razzaque said the government would reduce fertilizer prices and provide modern equipment to growers to reduce costs.

Bangladesh’s central bank instructed authorities not to reclaim previous loans and provide fresh ones to help flood-affected farmers.

In India, prices of 5 percent broken parboiled rice RI-INBKN5-P1 were unchanged around $381-$384 per tonne.

“Demand from buyers in Africa is not improving. They have bought enough old stocks from China at lower prices,” said an exporter based at Kakinada in the southern state of Andhra Pradesh.

India’s exports could fall to a seven-year low, officials said.

Meanwhile, farmers planted paddy on 18.5 million hectares as on July 26, versus 19.8 million hectares during the same time last year, while forecasts for an improvement in monsoon rains assuaged drought fears and lifted expectations for a robust yield of summer crops such as rice.

Reporting by Anjishnu Mondal in Bengaluru; Khanh Vu in Hanoi, Panu Wongcha-um in Bangkok, Ruma Paul in Dhaka and Rajendra Jadhav in Mumbai; Editing by Alexandra Hudsonhttps://af.reuters.com/article/commoditiesNews/idAFL4N24X3TE

Justice for rice farmers

By: Ernesto M. Ordoñez - @inquirerdotnet

Philippine Daily Inquirer / 05:22 AM August 02, 2019

On July 8, at the SL Agritech-GoNegosyo launch of the Masaganang Ani 300 to reward farmers who will harvest 300 sacks (15 tons) of palay per hectare, a leader asked for justice for rice farmers.

While those who can attain the 15-ton production target should be rewarded, this cannot be immediately attained by more than 95 percent of our rice farmers. Because of our inadequate agriculture support services and our low hybrid rice usage, we are not yet producing the minimum 4-ton-per-hectare yield necessary to survive the rice tariffication law.

The Philippine government was given 22 years by the World Trade Organization (WTO) to prepare them for today’s 35-percent rice tariff. But our government did not give them the support measures other governments gave their farmers. It is unfair that our farmers will now be left to fend for themselves. Ironically, it is the traders, not the consumers, who are benefiting most from this law.

Consider the Philippine Statistics Authority report below taken on the first week of July.

PSA data showed that farm gate price has dropped by 17 percent. But the drop in retail price was only 4 percent. Assuming the 2.1 multiple of farm-gate to retail price in 2018, the retail price in 2019 should be P37.34, not P40.86. Instead of the consumer getting the P7.35 decrease in prices, it is the trader that gets all of it.

In other reports, the retail price decrease in many areas is only P1 (not P1.83), while the droph in the farm-gate price in all 11 areas where DA collected data averaged P14.10 (not P17.78). The DA data showed the following: Baguio City-P13.00, La Union-P14.50, Pampanga-P9.00, Cavite-P13.00, Oriental Mindoro-P14.50, Albay-P14.50, IloIlo-P17.50, Leyte-P12.00, Zamboanga del Norte-P16.50, Zamboanga Sibugay-P15.50, Butuan City-P15.00. If these are accurate, then the retail price was down by only 2 percent, while farm-gate price declined by 34 percent. This means the average farmer will get only P15,840 a hectare, which is way below a decent survival rate.

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But all is not lost. Safeguards can still be implemented.

Here is the official statement: “A WTO member may take a safeguard action to protect a specific domestic industry from an increased import of any product which is causing serious injury to the industry.” WTO allows us to take safeguard measures, which effectively means temporarily increasing the tariff. Tariffication is good, but we had to implement the very low 35 percent because of a previous  WTO commitment.

Unfortunately, this adjustment is usually done only after two  years from the start of the injury. We should try to shorten this period.

Another measure we should use is to provide much-needed subsidies to our farmers. WTO allows de minimis support up to 10 percent  of the commodity’s value of production for developing countries. This  amounts to P39 billion. We should use this option.

Every P1 palay price decrease means P17-billion loss for the farmers. Thus, the P3.73 per kilo decline reported  by the PSA (though possibly understated) means P63.2 billion lost by the farmers this year. This loss is much more than the P10 billion support provided by the Rice Competitive Enhancement Fund (RCEF).

Unfortunately, none of the RCEF has been allocated for inputs  such as fertilizers and hybrid rice seeds. The supplemental budget subsidy should thereforeenhance the RCEF by providing these inputs. If this is not done, the RCEF must be reconfigured for these inputs to replace some of the current measures, thusreprogamming part of the less urgent P5-B mechanization for later use.

We must embark on a public-private partnership with emphasis on farmer involvement. This was not sufficiently done.  This way, we can formulate the necessary measures for our farmers to improve their profitability, compete effectively with rice imports, and most importantly, get the justice they deserve during this time of their great crisis.

https://business.inquirer.net/275943/justice-for-rice-farmers

Government must slap antidumping duty on imported rice–group

By

 Jasper Y. Arcalas

 -

August 2, 2019

Sacks of rice are seen being delivered at a warehouse in Manila on Monday, July 8, 2019.

The Federation of Free Farmers (FFF) urged President Duterte to order the Department of Agriculture to conduct an antidumping investigation into rice imports to curb undervaluation by unscrupulous traders.

FFF National Manager Raul Q. Montemayor said imposing antidumping duties is the “best and fastest way” to discourage traders from shortchanging the government by misdeclaring the value of their rice shipments.

“The idea is to put pressure on importers to declare the right prices and pay the correct tariffs,” Montemayor told the BusinessMirror in an interview. “The President should issue the order [for an investigation] to fast-track the process.”

Using figures released by the Bureau of Customs (BOC), the average landed cost of rice imports which arrived in the country after the rice trade liberalization law took effect was only $227 per metric ton (MT).

This is nowhere near the internationally published prices of rice, which range from $391 per MT to $422 per MT.

Montemayor said the low valuation of rice shipments could have caused the government lose P5 billion in revenues. What’s worse, he said, is that cheap imports contributed to the decline in the drastic decline in the price of unhusked rice.

Under Republic Act 8752, or the Anti-Dumping Act of 1999, the government could impose antidumping duties on imported commodities that are sold at a lower price than its original value in its country of origin.

The antidumping duty is equivalent to the difference between the export price and the normal value in the exporting country, Montemayor said. The antidumping duty applies on top of the regular implement tariffs on imports.

“In June for example, the monitored export price for rice with 5-percent brokens from Vietnam was $359 per MT. If a shipment arrives in the Philippines with a landed cost of $227 per MT, it is equivalent to an ex-Vietnam export price of only $159 per metric ton after removing costs for freight and insurance,” he said in a separate statement 
on Thursday.

“This is $200 cheaper than the monitored export price, and this difference can be the basis of the antidumping duty that will be charged against the importer in addition to regular tariffs,” Montemayor added.

Under RA 8752, the agriculture secretary could initiate an antidumping investigation based on a preliminary determination of dumping based on three factors: the price difference between the export price and the normal value of the commodity; presence and extent of threat to cause injury to a local sector; and causal relationship of the alleged dumped product and the threat to domestic sector.

Once initiated, importers would be required to post a cash bond equivalent to the estimated antidumping duty while a thorough evaluation of the complaint is being undertaken by the Tariff Commission.

Antidumping measures on imports could be applied for as long as five years from the date of initial implementation, Montemayor said.

Pursuing an antidumping measure on rice imports is more effective than imposing a safeguard duty since most shipments come from Asean member-states wherein the Philippines applies a low bound rate, he added.

Montemayor also said the safeguard duty would only be imposed when the cumulative imports exceed a trigger volume and would only be in effect until the end of the calendar year.

“The BOC has argued that they cannot question the declared value of imported rice if valid documents are submitted by the importer, even if there appears to be a clear case of undervaluation. With antidumping, an importer will be subject to higher antidumping duties the larger the undervaluation, no matter what documents are submitted,” he said.

“RA 8752 also provides that the license of an importer who is caught dumping can be canceled, and its officers can be barred from holding positions in any business enterprise in the country,” he added.

Image Credits: Nonie Reyes

https://businessmirror.com.ph/2019/08/02/government-must-slap-antidumping-duty-on-imported-rice-group/

RPT-Asia Rice-Vietnam prices dip on fears Philippines could curb imports

Arpan Varghese

AUGUST 2, 2019

(Repeats with no changes)

* Thai rates rise on drought, Bangladesh grapples with floods

* India prices unchanged on weak demand from Africa

By Arpan Varghese

BENGALURU, Aug 1 (Reuters) - Export prices for Vietnamese rice fell this week on fears major buyer Philippines could curb imports, while a drought in Thailand and widespread floods in Bangladesh hit supply in the Asian hubs.

In Vietnam, 5% broken rice rates RI-VNBKN5-P1 fell to $340-$350 a tonne on Thursday from $350 last week.

“We’ve heard the Philippines will likely ban imports during its harvest in September to support local farmers,” a trader in Ho Chi Minh City said.

Buyers in the Philippines, one of Vietnam’s top buyers, had bought a lot of rice recently to build inventories, another trader said.

Thailand’s 5-percent broken rice RI-THBKN5-P1 prices rose to $395-$405 a tonne, free-on-board Bangkok (FOB), from $390-$395 last week mainly due to a widespread drought while overseas demand remained flat, traders said.

“The drought is raising concern about a possible supply shortage,” a Bangkok-based trader said.

High prices for Thai rice and a strong baht could deter buyers, traders said.

“There are no major deals in sight,” another trader said.

“All we’ve had so far this year are small deals with regular customers and that’s not really affected prices as much as the currency exchange and supply situation.”

The world’s second-largest rice exporter has seen a 19.6 percent decline in exports between January and June versus the same period last year, according to the Thai Rice Exporters Association.

Adverse weather hit markets in Bangladesh as well, with flooding submerging more than 100,000 hectares of paddy, according to a preliminary assessment by the agriculture ministry.

This comes at a time when farmers are struggling to secure fair prices for produce, with no overseas deals in sight since the country lifted an export ban in May, traders said.

Agriculture minister Abdur Razzaque said the government would reduce fertilizer prices and provide modern equipment to growers to reduce costs.

Bangladesh’s central bank instructed authorities not to reclaim previous loans and provide fresh ones to help flood-affected farmers.

In India, prices of 5 percent broken parboiled rice RI-INBKN5-P1 were unchanged around $381-$384 per tonne.

“Demand from buyers in Africa is not improving. They have bought enough old stocks from China at lower prices,” said an exporter based at Kakinada in the southern state of Andhra Pradesh.

India’s exports could fall to a seven-year low, officials said.

Meanwhile, farmers planted paddy on 18.5 million hectares as on July 26, versus 19.8 million hectares during the same time last year, while forecasts for an improvement in monsoon rains assuaged drought fears and lifted expectations for a robust yield of summer crops such as rice.

Reporting by Anjishnu Mondal in Bengaluru; Khanh Vu in Hanoi, Panu Wongcha-um in Bangkok, Ruma Paul in Dhaka and Rajendra Jadhav in Mumbai; Editing by Alexandra Hudson

Implementation Of Safety Nets Under Rice Tariff Law Urged

By Featuresdesk (ICG) on August 1, 2019

Rice traders and manufacturers urged the government to implement safety measures under the Rice Tariffication Law to address a continued drop in prices of the country’s staple grain.

Philippine Chamber of Agricultural and Food Inc. (PCAFI) president Danilo Fausto, in a recent meeting with the media, said the government should protect local farmers who are being hit by the decline in rice prices due to liberalized importation, exportation, and trading of rice.

“In case of extreme and abrupt fluctuation of prices, the Department of Agriculture (DA) should recommend to the Department of Finance (DOF) the imposition of higher tariff,” Fausto said.

Under the implementing rules and regulations (IRR) of the Rice Tariffication Law, a special safeguard duty on rice will be imposed to protect the rice industry from sudden or extreme price fluctuations.

Similarly, the IRR also sets the guidelines on the allocation of the tariff revenues in excess of PHP10 billion. This will be tapped to provide direct financial assistance to rice farmers adversely affected by the new rice import regime.

According to the data from the Philippine Statistics Authority (PSA), farmgate prices of palay dropped 16.4 percent in June to PHP17.88 per kilo.

Prices of well-milled rice also declined to PHP42.92 per kilo from the peak price of PHP49.36 in September 2018.

Retail prices of regular milled rice decreased by PHP7.54 per kilo last month.

In the world market, rice is at USD 417.00 per metric ton (MT) for 5 percent broken rice and USD406 per MT for 25 percent broken.

However, upon entering the Philippines, Fausto said the price has been reported from USD270 per MT to USD350 per MT, therefore sparking allegations that imported rice is being undervalued as soon as it lands on Philippine shores.

To avoid this, it was suggested for the DA to set a reference price on all imported rice, regardless of whether whole rice or broken rice.

Meanwhile, Fausto also proposed for the flexible use of the Rice Competitiveness Enhancement Fund (RCEF), which is a component of Republic Act No. 11203, or the Rice Tariffication Law. particularly for fertilizers and irrigation.

RCEF is funded by tariffs generated by rice imports. The fund hopes to make the domestic rice industry more competitive through farm mechanization, access to better seed, and more financing and extension services, among other measures.

It is allocated as follows:

• 50 % goes to PhilMech to provide farmers with rice farm machineries and equipment;

• 30 % to PhilRice to be used for the development, propagation, and promotion of inbred rice seeds to rice farmers and the organization of rice farmers into seed growers’ associations engaged in seed production and trade;

• 10 % to be made available in the form of credit facility with minimal interest rates and with minimum collateral requirements to rice farmers and cooperatives to be managed by the Land Bank of the Philippines and the Development Bank of the Philippines; and

• 10 % to be set aside to fund the extension services by PhilMech, the Agricultural Training Institute (ATI), and the Technical Education and Skills Development Authority (TESDA) for teaching skills on rice crop production, modern rice farming techniques, seed production, farm mechanization, and knowledge/ technology transfer through farm schools nationwide.

Preliminary data show that the government has so far collected PHP5.9 billion in tariffs from some 1.43 million MT of rice stocks imported by private traders, following the enactment of a law in March.

Customs Commissioner Rey Leonardo Guerrero earlier revealed that the Bureau of Customs (BOC) collected the highest amount of rice import tariffs from the Subic Bay port at PHP1.37 billion.

The Port of Manila collected PHP978.51 million in tariffs, followed by the Manila International Container Port with PHP942.76 million, Guerrero said during a recent DOF Executive Committee meeting.

The Port of Cagayan de Oro collected PHP754.13 million in tariffs from rice imports, while the Port of Davao collected PHP703.93 million, the data showed.

Since PHP27 billion is expected to be raised from tariff duties, PCAFI suggested that the excess of the PHP10 billion should be provided as support for the more essential inputs to rice farming, such as fertilizers and irrigation, as well as support to other farmers pushing for diversification into other agricultural goods.

“This makes the excess of PHP10 billion very flexible, therefore it was also suggested that there should be specification as to how the excess of the RCEF must be utilized,” it said. (PNA)

http://pageone.ph/implementation-of-safety-nets-under-rice-tariff-law-urged/

Controlling this gene boosts plant tolerance to water, salt stress

ISAAA | August 1, 2019

Arsenic in soil is a worldwide problem.

Plant Science reports that OsNCED5 gene regulated tolerance to water and salt stress, as well as leaf aging in rice plants. The enzyme 9-cis-epoxycarotenoid dioxygenase (NCED) has been known to affect the production of abscisic acid (ABA) but the molecular mechanisms of NCED in plant development and abiotic stress tolerance are still unknown in rice. Thus, researchers from Hunan Normal University in China explored the rice NCED, OsNCED5.

OsNCED5 was expressed in all tissues tested, and was induced by exposure to salt stress, water stress, and darkness. When the genewas switched off, the mutants exhibited lower ABA concentrations and reduced tolerance to salt and water stress, as well as delay in leaf senescence. On the other hand, plants with overexpressed OsNCED5 exhibited higher levels of ABA, improved tolerance to stresses, and rapid leaf senescence.

Related article:  High-yield, protein-enriched rice could help combat nutrient deficiency in developing world

Based on the findings, OsNCED5 may be used to control development and stress resistance through regulation of ABA production in plants.

https://geneticliteracyproject.org/2019/08/01/controlling-this-gene-could-boost-plant-tolerance-to-water-salt-stress/

‘Shakthi’ Samba: Resuscitating small and medium paddy millers

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 Friday, 2 August 2019 00:00

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By Sathya Karunarathne 

Sri Lanka has seen a rise in prices of rice since the latter part of 2013, with small and medium scale rice mills closing down and the Government having to import around two million metric tons of rice (2013-2018) to stabilise prices and maintain supply. The skyrocketing rice prices were traced back to large scale millers holding an oligopoly of trade, the said rice millers continuing to push down the purchase price of paddy from the price taking farmers and creating artificial shortages to drive up the prices. 

Hikes in rice prices can also be traced back to 2016/2017 drought where 17 districts were affected. Millers were also strategically purchasing paddy soon after harvesting with a high presence of moisture, impacting the quality and price of the paddy purchased. The majority of farmers being small scale operators with financial burdens well beyond their capacity and limited bargaining power were left with no choice but to allow large scale millers to add premium claiming the need for electric dryers and longevity of storage. In short, large scale rice millers were purchasing paddy at low rates, milling the thus purchased paddy, warehousing it in large quantities, and releasing it to the market at much higher prices. 

Upon identifying the need to address the existing controlling oligopolies in paddy markets, the Ministry of Economic Reforms and Public Distribution under the guidance of Minister Harsha de Silva took the initiative to introduce ‘Shakthi’ rice to the market on 30 March. The birth of Shakthi rice, however, cannot be narrowed down to a mere resisting mechanism against the controlling oligopolies. It is a result of a series of efforts taken by the Government to resuscitate the small and medium scale mill owners, thereby protecting the small scale farmer and the consumer burdened by exorbitant rice prices. 

The Government announced on 13 February that it will disburse an interest-free working capital loan of Rs. 1 billion to small and medium scale mill owners to purchase paddy, mill it and resell to cooperative networks island-wide. This new scheme is implemented with the participation of the All Island Rice Producers Cooperative Societies where Small and Medium Scale (SME) rice millers have been organised into cooperatives spread out across eight key districts. 

The Government will provide these cooperatives with funds and the said cooperatives will release money under an agreement to the millers who are their members. The millers will then utilise the funds to purchase paddy from the farmers, mill it and resell it to the cooperatives and finally, the cooperatives will sell it to the consumers. Shakti rice was introduced to the market under this cooperative network enabling the cooperatives to enter into the national rice supply chain. 

In the fragmented rice supply chain the country was experiencing in the last few years the cooperative sector was on the rice distribution end. With this initiative the government has been successful in revolutionising the rice supply chain by allowing the cooperatives to step into the process of supplying, taking away from the control of the oligopolies.

The set guaranteed price by the Government to purchase paddy from the farmer is between Rs. 38 (White Nadu) to Rs. 41 (White Samba). However, if the miller was purchasing the paddy at this said guaranteed price the selling price should ideally be 2.1 times from the purchase price which is Rs. 80 to Rs. 85 in maximum price. Despite this Government regulation at play, the consumer had to bear the burden of rice being sold at the exorbitant price of Rs. 114 to Rs. 120 until May of 2019 due to the oligopolies that were determining the price. 

With the introduction of Shakthi rice to the market at a price ceiling of Rs. 80 per kg (White Nadu) and Rs. 85 per kg (White Samba) the leading rice millers were forced to reduce their prices to Rs. 90 to Rs. 95 per kg, further facilitating the reopening of closed mills belonging to SME rice millers and recreating competition that was lost in the oligopolistic structure. 

Minister Harsha de Silva stated that the introduction of Shakthi rice or the loan of Rs. 1 billion rupees is not an interventionist attempt but an attempt to rejuvenate the small and medium mill owners so that it will help both the farmer and the consumer. He goes on to say that this is an attempt to put in place a set of policies where the Government can rectify market failure without creating a Government failure. 

Thus introduced Shakthi rice under the new scheme is beneficial to the farmer in a plethora of ways the farmer has failed to experience before. The generally accepted line of thought is that big, medium or small scale, all rice millers exploit the price taking farmer. In looking at this phenomenon from a point of view of an oligopoly, except a handful of millers, the rest are in a strong competition. Given this strong competition, the SME millers would not exploit the price taking paddy farmer as they need to coexist and cooperate in battling the pressure exerted by the large scale millers. 

Having observed this above mentioned exploitative cycle exiting in the paddy value chain the government identified the need to level the playing field between the SME rice millers and the large scale rice millers. It is in identifying this need that the Government intervened in strengthening the SME millers. While ensuring the rejuvenation of the SME millers the Government also had to ensure that the farmer is not exploited by the thus strengthened SME rice millers or even further exploited by the large scale rice millers. 

Under the introduced new scheme, the Government has given for the first time an opportunity for the SME millers to rally under a cooperative system ensuring that the previously price taking farmer is now presented with their lost bargaining power. In the previous oligopolistic market, the farmer had no bargaining power as the majority of farmers are small scale operators. They did not have the privilege to enjoy economies of scale due to their scale of operation and the level of employment of productive factors. 

The price taking farmer was left with little to no chance of making a profit due to the extremely high cost of production. Simultaneously at the point of production, the farmer was at unbearable amounts of debt due to financial commitments made on credit basis on harvesting machinery, fertiliser, seeds and other necessities from informal credit agents, most commonly. This leaves the farmer with little room to delay the selling process, leaving the farmer with no choice but to succumb to low prices of purchase offered by large scale millers, often having to sell paddy without drying. 

With the revival of the SME millers, the farmer is now presented with the opportunity to bargain as the SME millers are strengthened under a large cooperative group and being able to offer the farmer a price that can compete against the prices of purchase presented by large scale millers. This further improves healthy competition that was almost non-existent in the previous oligopoly. ‘Shakthi’ as a monitored brand ensures a guaranteed price of Rs. 38 to Rs. 41 per kg further leaving less room for the farmer to be exploited. 

The introduced cooperative system is embraced by the strained SME millers as it presents the millers with a system of operation that protects them which has never been in place before. This concept of a co-operative system was built on the cabinet decision taken on 31 July 2018, to provide credit facilities to SME millers through the MCF (Miller’s Cooperative Federation) and not to take legal action against SME millers who have failed to settle previous loans. 

Building on this and developing the cooperative sector towards rice-producing, the government has been able to revolutionise the paddy value chain while protecting the SME millers. For the first time, small millers are given the opportunity to rally under a district-based cooperative society for crucial loans, giving them the opportunity to not sort to unofficial credit lenders. In other words, the co-operative society system in place is a mechanism to source loans for the millers registered under the said cooperative societies, who otherwise struggle for loans due to the informal nature of the cooperative sector. 

The eight district societies are autonomous in their function but are subordinate in hierarchy to the District Secretariat through which the millers receive and repay their loan requirements. 

The platform thus provided for the SME miller to rally under eight district co-operative societies bound by a collective identity and an end goal results in the said SME miller being presented with stronger bargaining power. These eight cooperatives are monitored by the Assistant District Co-operative Commissioner or the Assistant Divisional Co-operative Commissioner as relevant. These two bodies also assess the working capital loan requests made by the SME millers through co-operative societies. 

Financial assistance to mill owners is provided under the supervision of the District Co-operative society to whom the approved loans are passed down from the Treasury who allocates the loan of Rs.1 billion via the Ministry of Agriculture to District Secretaries who in turn liaise with the Assistant District Co-operative Commissioners. This co-operative mechanism offers SME millers with a competitive price and the ability to work with a common brand name. 

In most instances, small scale millers would offer additional payments in buying paddy in order to attract local supply and the middle scale miller feels the pressure to compete with large scale millers in order to secure paddy supply to them in a given area often when the large scale miller operates with a large collection network. However, the middle scale miller cannot compete with large scale millers in selling rice due to their lack of machinery and other necessary factors needed for high-quality production resulting in SME millers not experiencing economies of scale. 

The Government in introducing the cooperative mechanism has introduced a system through which the SME miller can be strengthened financially providing them with the necessary collateral to attract formal loans. 

The SME rice miller can be identified as the consumer safeguard mechanism in play as the small miller presents price hikes and protects the consumer by stabilising prices and by lowering the prices from the exorbitant rates that existed in the oligopolistic system. The consumer is also benefited by the improvement in the quality of production by the SME millers as they are strengthened to compete with the quality of the large scale millers. 

[The writer is an Analyst at the Economic Reforms Analytics Unit (ERAU) of the Ministry of Economic Reforms and Public Distribution. She has a BSc in International Relations (University of London) and a BA in English Literature (University of Sri Jayewardenepura).] 

http://www.ft.lk/news/Shakthi-Samba-Resuscitating-small-and-medium-paddy-millers/56-683133

Customs intercepts truck for smuggling bags of rice worth N11.9m

... As FOU Zone A seizes N458m fake drug, foreign rice in Ogun, Lagos

2nd August 2019in Business

Steve Agbota

The Anti-smuggling patrol team of the Niger/Kogi Command of Nigeria Customs Service, said it intercepted Dangote truck around Minna-Lambata-Suleja axis transporting 700 bags of 50kg rice worth N11.900 million smuggled into the country. 

A statement issued by the Command’s Public Relations Officer, Bo Lomba said the Dangote truck with registration number XA297NAK was arrested on Monday morning barely few months after a similar seizure of the firm’s truck with registration number DAL769XA DSR-1B-019 was impounded for conveying bags of 50kg Rice worth N8.840 million concealed inside 50 bags of sugar worth N697,000 along Mokwa axis of the Command.

According to the statement, it is worrisome that some Nigerians remain unrepentant even as they continue to lose their goods, even as the Federal Government continues to make  visible efforts to transform the nation’s agricultural sector, particularly with respect  to rice production.

This was as Customs Area Controller, Comptroller Abba-Kasim Yusuf,  revealed that his officers and men are totally committed having evolved new  strategies and proactive measures to unravel the tactics of smugglers within the command.

He hinted that the Command had since keyed into   the  Federal Government’s policies and the Next Level Agenda to encourage home-grown rice, which will go a long way in creating employment for the nation’s teaming youth.

To this end, the CAC appealed to the general public to always embrace legitimate means of livelihood and to avoid smuggling in all its ramifications.

He disclosed that his  eagle eyed officers around the Niger/Kogi Command are currently equipped to uncover and suppress the smuggling to the barest minimum in the interest of Nigeria’s economic prosperity and national development.

Meanwhile, the Federal Operations Unit (FOU), Zone A of the Nigeria Customs Service, have paraded 1200 pieces of compressed Indian hemp worth N12million intercepted from suspected smugglers.

The unit also said it intercepted 1,239 cartons of fake viagra, sexual enhancements drugs worth N409million and smuggled foreign parboiled rice worth N36.4million along the border.

FOU, Zone A is an anti-smuggling unit of the Service in the South-West part of the country is saddled with the responsibility of serving as the last layer for smuggled or under-declared cargoes at the seaports or land borders.

However, taking journalists round the seizures yesterday, the Customs Area Controller of the unit, Compt. Mohammed Aliyu said the cargoes were intercepted on the highway.

Speaking further, he said 2751 bags of rice worth N36.4million and 147 pieces of used tyres worth N1.02million were also intercepted by the unit.He said,  “the duty paid value of interceptions were N458million and we will not relent our effort until smuggling is suppressed to the bearest minimum in the south west.

“You can see, I told you the last time we came for the conference that smuggling will be suppressed because my officers are on their trail, anywhere they hide we shall get to them.”

https://www.sunnewsonline.com/customs-intercepts-truck-for-smuggling-bags-of-rice-worth-n11-9m/

Customs intercepts truck loaded with 700 bags of smuggled rice

August 1, 2019Atanda Adebayo

The Nigeria Customs Service (NCS), Niger/ Kogi/ Kwara Command, on Thursday, said it intercepted a truck belonging to the Dangote Group loaded with 700 bags of smuggled rice.

The command in a statement made available to PREMIUM TIMES said its patrol team around Minna-Lambata-Suleja axis seized the truck, with registration number, XA 297 NAK, transporting the bags of rice worth N11,900,000.

Benjamin Lomba, the command’s Public Relations Officer, said in the statement that they had, a few months ago, made a similar seizure of a Dangote truck with Reg. No. DAL 769 XA DSR-1B-019 conveying 520 bags of 50kg Rice worth N8,840,000 concealed with 50 bags of sugar worth N697,000, intercepted along Mokwa axis of the command.

Mr Lomba, while insisting that the command would continue to wage war against smuggling of prohibited items, appealed to Nigerians on behalf of the Customs Area Controller (CAC), Yusuf Abba-Kassim, to always embrace legitimate means of livelihood and to avoid smuggling in all its ramifications.

“Despite the campaign against rice smuggling into the country, the Anti-smuggling Command Patrol Team around Minna-Lambata-Suleja axis of the Command, yet seized another Dangote truck with registration number XA 297 -NAK transporting 700 bags of rice worth N11,900,000.

“It is worrisome that some Nigerians remain unrepentant even as they continue to lose their goods, not even the Federal Government’s visible efforts in transforming the Agricultural sector; especially in the area of rice production has touched their conscience to avoid smuggling of rice

“The Customs Area Controller revealed that his officers and men are totally committed and with the renewed strategy and proactive measures put in place in discovering new tactics of smugglers is yielding positive results.

“In his word, the Command is set to key into Federal Government policies and the Next Level Agenda to encourage Home-Grown Rice, which will go a long way in creating employment opportunity to our teeming youth.”

The CAC appealed to the general public to always embrace legitimate means of livelihood and to avoid smuggling in all its ramifications.

“The eagle eye is all around Niger/Kogi Command to uncover and suppress the smuggling to the barest minimum in the interest of the economic prosperity and national development.”

https://www.premiumtimesng.com/news/more-news/344251-customs-intercepts-truck-loaded-with-700-bags-of-smuggled-rice.html

Customs intercepts 700 bags of foreign rice

Thursday, August 1, 2019 1:02 pm

The Nigerian Customs Service (NCS) said it intercepted a truck with registration number XA2297NAK carrying 700 bags of foreign rice on the Minna-Lambata-Suleja highway.

Mr Benjamin Lamba, the Public Relations Officers for the service in Niger Area Command, who disclosed in a statement on Thursday, said that the rice was worth N11.9 million.

Lamba warned smugglers and their accomplices to steer clear the command as its vigilant personnel would not allow arms, rice and cars to be smuggled through its area of supervision.

“It is worrisome that some Nigerians remain unrepentant even as they continue to lose their goods through smuggling business,’’ he said.

He said the command had adopted measures to detect tactics of smugglers but appealed to stakeholders to volunteer information that would help in apprehending those involved in illegal trades.

https://www.pmnewsnigeria.com/2019/08/01/customs-intercepts-truck-with-700-bags-of-foreign-rice/

Drought, Dams Drive Mekong River to Its Lowest Level in 100 Years

By Ron Brackett

A boat sits in a briny canal on April 29, 2017 in Vietnam's Ben Tre province. The Mekong River Delta is among the most vulnerable regions in South Vietnam.

(Linh Pham/Getty Images)

At a Glance

·       The Mekong River flows through six countries in Southeast Asia.

·       The area has been suffering from a severe drought.

·       Hydroelectric dams upriver have also restricted water flow.

Southeast Asia's Mekong River has dropped to its lowest level in more than 100 years, and experts warn monsoon rains that have arrived two months late may not be enough to undo the damage.

Food supplies for tens of millions of people are endangered. Fishermen who expect to haul in large fish this time of year are seeing only tiny ones. Farther downstream, scientists aren't even seeing small fish or fish larvae. Rice farmers have been unable to plant their crops in the parched ground. Others who did plant have watched the slender green shoots die as saltwater backs up into the delta.

Severe drought is part of the problem. Monsoon season typically starts in May, but rainfall for the past two months has been more than 40 percent below normal, Reuters reported.

Hydroelectric dams upriver in China and Laos are making the situation worse, Asian government officials and scientists say.

(MORE: Vampire Tree Stump Remains Alive by Drawing Sustenance from Neighboring Trees)

The Mekong River begins in China, where it is called the Lancang, and it flows through Myanmar, Thailand, Laos, Cambodia and Vietnam before reaching the South China Sea.

China operates 11 dams along the Mekong, From July 5 to 19, it cut by half the amount of water it would normally release from the Jinghong Dam in Yunnan province, the Nikkei Asian Review reported. Chinese water officials said it was for grid maintenance. China has also promised to release more water from the dam.

A fisherman pulls his net from the Mekong River in Kandal province in southeast Cambodia, on January 5, 2018. Severe drought has prevented many fish from spawning this year.

(Tang Chhin Sothy/AFP/Getty Images)

The new Xayaburi Dam in Laos is also being blamed for lower water levels in the Mekong. From July 15 to 29, test runs were conducted at the dam. Critics of the dam say the river's water receded significantly after the tests began, according to the Bangkok Post. Anuparp Wonglakorn, deputy managing director of the company that operates the dam, maintained the tests had no effect on water flow. He blamed the lack of rain.

Both countries and others in the region plan more dams along the Mekong and its tributaries.

“The accelerating pace of change, coupled with cumulative impacts of transboundary stressors and the impending impacts of climate change, point to a fear that the river, which is the lifeblood of most of Southeast Asia, will gradually lose function until it no longer supports the huge diversity of wildlife and millions of people that depend on it,” says Zeb Hogan, a fish biologist at the University of Nevada, Reno, told National Geographic.

Hogan explained that the Mekong experiences a "flood pulse" when the monsoon rains come. Without that pulse, larvae and tiny fish aren't swept into lakes and floodplains where they can mature.

“Without the flood pulse, fish may delay or skip spawning,” said Hogan, who also leads a USAID project called Wonders of the Mekong. “For rare and endangered species, this situation threatens their survival, and for commercially important fish species, future harvests could be significantly reduced.”

The fish that are being found are much smaller than in years past. In northeastern Thailand, fishermen have started using smaller mesh nets and finer lines.

“I wish the seasonal pattern would return so fish can lay eggs as they used to,” Chai Haikamsri told Reuters. “I wish the dams would not disrupt this any more.”

Rice saplings grow in a rice field in the My Xuyen district in southern Vietnam on July 13, 2017. Saltwater is encroaching on the Mekong River Delta, making it unsuitable for growing crops.

(Roberto Schmidt/AFP/Getty Images)

The low river is also affecting rice farmers. In Laos, farmers have been able to plant rice on only about half of the acreage usually used because the land is too dry, Radio Free Asia reported. This year’s rice production will be more than 17,500 tons less than last year's, an official said.

The Mekong's flow has been so reduced in Vietnam that saltwater from the South China Sea is washing up to 25 miles inland on the delta, Circle of Blue reported. Half of Vietnam's rice is grown on the Mekong Delta. Some estimates say half of the delta's arable land – about 3,750 square miles – have been damaged by the salt.

Sediment that could help rebuild the delta land is trapped by the dams upriver.

Marc Goichot of the WWF Greater Mekong Programme told the Nikkei Asian Review, "Cambodia has one of the most productive inland fisheries in the world, and it provides affordable protein for all. Reduction of sediment will cause the delta to sink and shrink, reducing the resilience of 18 million Vietnamese to tropical storms, floods, as well as causing increased salt intrusion and reduced access to freshwater."

Experts warn that all of this could mean the end of the Mekong River ecosystem.

“With the completion of more mainstream dams and the cumulative effects of climate change, that tipping point” for when the river can no adjust to the changes “may be coming closer," Brian Eyler, the Southeast Asia program director at the Stimson Center in Washington D.C., told National Geographic.

https://weather.com/science/environment/news/2019-08-01-drought-dam-drive-mekong-river-to-lowest-level-in-100-years

Food Ministers’ meet today to discuss PDS portability

TV Jayan  New Delhi | Updated on July 31, 2019  Published on July 31, 2019

TV Jayan

The Union Food Ministry has convened a meeting of State Food Ministers on Thursday to discuss among other things distribution of fortified rice through public distribution system (PDS) and national portability of PDS under One Nation One Ration Card system.

The government wants One Nation One Ration Card to be a reality by 2020.

Pilot scheme

The government approved a pilot scheme for fortifying rice and distributing it through PDS in February this year, which will be implemented on a pilot basis in 15 districts in predominantly rice-eating States. The government has approved a financial outlay of ₹147.61 crore for implementing the scheme over the next three years.

“The idea of keeping the cost of fortification outside the purview of price at which PDS rice is sold at fair price shops is to ensure that poor people who are price conscious would not stay away from buying fortified rice,” said an official source.

The cost of rice fortification is estimated to be 60 paise per kg of rice and it will be shared between the Centre and the States at ratio of 90:10 for the North-Eastern, hilly and island States and at the ratio of 75:25 for the rest, the source said.

Among the districts where the pilot project to be launched soon are West Godavari district in Andhra Pradesh, Bongaigaon in Assam, Narmada in Gujarat, Ernakulam in Kerala, Yadgir or Raichur in Karnataka, Gadchiroli in Maharashtra and Trichy in Tamil Nadu. Malkangiri in Odisha and Chandauli district in Uttar Pradesh would also participate in the project.

Conference agenda

One of the agenda items of the conference is said to be exploring the nationwide implementation of the scheme at the earliest. Niti Aayog is said to be of the view that instead of a pilot, the scheme should be rolled out in all States where rice is the staple grain at one go. The ministers’ meet is expected to deliberate on it.

As per the plan, the rice to be sold through PDS would be fortified with iron, folic acid and vitamin B12, mainly to address the acute problem of anaemia and malnutrition in India. According to studies, nearly 58.5 per cent of young children between 6 and 59 months, 53 per ecnt of women in reproductive age group and 22.7 per cent of men in 15-49 age group suffer from anaemia. Besides, micronutrient deficiency is also quite rampant among Indian men and women.

PDS portability

The conference is also scheduled to discuss the ambitious plan of implementing portability of PDS in the country, under the scheme, integrated management of PDS. As a step towards national portability, the Centre roped in four States which would implement this on a pilot basis in two clusters.

These clusters – Andhra Pradesh & Telangana and Gujarat & Maharashtra) would come into being from next month. Once implemented, people from Andhra will be able to buy their PDS goods from any fair price shops in Telangana and vice versa, the source said, adding that migrants would be the major beneficiary of the scheme as this would provide them hassle-free access to PDS entitlement.

Published on July 31, 2019

https://www.thehindubusinessline.com/economy/agri-business/food-ministers-meet-today-to-discuss-pds-portability/article28773937.ece

Japan Hosts Annual Rice Technical Meeting  

By Bob Cummings

TOKYO, JAPAN -- A delegation of U.S. rice exporters met with representatives of Japan's Ministry of Agriculture, Forestry, and Fisheries (MAFF) and Japan grain trading companies on Wednesday for the 22nd annual U.S.-Japan rice technical meeting.  

"This meeting is a key part of maintaining smooth rice trade between the U.S. and Japan by having a forum to work through technical issues in a business-like manner," said Alex Balafoutis, chair of the U.S. delegation and executive vice president of Western Foods.

In addition to the technical meeting, the delegation also received an extensive briefing from USA Rice's in-country contractor on activities to promote U.S. rice in Japan and an update on domestic Japanese policy on rice.  The delegation also met with the Agricultural Affairs Office (AAO) of the U.S. embassy to discuss promotion and market access issues.

MAFF is Japan's state importer of rice, and Chairman Balafoutis concluded this year's technical meeting by inviting MAFF and the trading companies to the 23rd such meeting in the United States in 2020.

USA Rice Daily

A 100-year-old company will be the first US business to export rice to China

By Parija Kavilanz, CNN Business

Updated 1957 GMT (0357 HKT) July 31, 2019

In the midst of the escalating trade war between the United States and China, one California rice company is bridging the divide.

In July 2019, Sun Valley Rice won a contract with a Chinese importer, making it the first US rice producer to sell rice to China.

"China has been tough to get into because for many years it was illegal to sell our rice there," said Betsy Ward, president of USA Rice, a national trade association. But, in 2018, the US and China came to an agreement, making it legal to export American rice to China. As a result, more than two dozen US companies were approved to export rice to China. But Sun Valley was the first to land a deal.

Sun Valley, a family-owned company based in Sacramento, California, had been trying to break into the Chinese market for close to 15 years.

"We would travel regularly to China to research [the market], attend trade shows and meet the industry players," said Ken LaGrande, who founded Sun Valley Rice with his father Michael in 2000. "It was a commitment we made as a family to persist. So when the opportunity opened up, we were ready."

"California's rice growing regions are the same latitude as Korea and Japan. So we all grow the same kind of rice -- medium grain and short grain -- that's popular in Chinese, Japanese and Korean cuisine," said LaGrande.

"But Chinese consumers, who eat rice every day, will now have more choice with our rice," he said. "It is of the highest quality, grown and packaged under strict labor protocols and environmental and safety standards."

Sun Valley annually sells 250 million pounds of rice under half a dozen varieties. Beginning in the fall, the company will export roughly 88,000 pounds of its Calrose rice to Shenzhen Yintuo, a subsidiary of the Dragon Ocean Hing Group, in China.

Sun Valley Rice produces short- and medium-grain rice, both varieties that are popular in Chinese cuisine.

Five generations of farmers

The LaGrande family has been producing rice in the Sacramento Valley, starting with LaGrande's great-grandfather in the 1920s.

"He recognized that the climate, soil and water supply in the region was the correct balance to successfully grow rice," said LaGrande.

The LaGrande family has been producing rice in California for five generations.

Over the decades, the family integrated other aspects of rice production into the business, such as drying and milling. Eventually, it grew to become LaGrande Family Foods Group. "Now it's a couple of dozen different operations," he said. Those include farming, sprouting rice and sake milling.

His $40 million cheese company is helping to transform a rural Wisconsin community

In 2000, LaGrande and his father Michael identified a growing market demand for high quality, specialized sushi-grade rice, and launched Sun Valley Rice.

"Sun Valley Rice now is a fully integrated arm of the family business, 'from farm to fork' if you will," said LaGrande. "We source rice from 200 farms, or about 10% of the rice crop gown in California. And we handle drying, milling, packaging and marketing of the rice."

LaGrande is mindful of the business risks involved with entering new markets. "Anytime we export to a foreign country, there are risks we think about," he said. "But we also develop strategies to help is mitigate those risks."

Over time, the LaGrande family integrated other aspects of rice production into the business, such as drying and milling.

Sun Valley exports its rice to the European Union, for example, where the ongoing trade negotiations with the US has resulted in extra tariffs on rice, said LaGrande.

And entering a new market can surface additional layers of protocol and red tape. "We have to deal with inspectors. What if our cargo gets tied up at customs as part of the inspection process? We have to be prepared for it," he said.

The US rice industry has also experienced trade disruptions due to measures designed to protect humans, animals and plants from diseases or contamination.

"These were not necessarily based on sound science, but more political," said USA Rice's Ward. "Although we are happy that this sale was made, and we expect it to be successful, there is always a risk that future sales could be disrupted. It is the name of the game in the rice trade."

Sun Valley sources rice from 200 farms in California, or about 10% of the crop grown in the state.

Still, LaGrande is hopeful that Sun Valley Rice's entry into China opens the gate for other American rice brands.

"We have the first sale. But we really hope there will be strong continuing demand for American rice in China, and that allows, in turn, more opportunity for farmers back in California," he said.

https://edition.cnn.com/2019/07/31/success/sun-valley-rice-china-export/index.html

‘Rice planters to get free machines in 2020’

By Jasper Y. Arcalas

August 2, 2019

A farmer walks on a rice field in Tarlac in this file photo.

Rice planters would have to wait until the first quarter of next year for their free farm machines from the government as the budget impasse stalled the release of funds.

Philippine Center for Postharvest Development and Mechanization (PhilMech) Applied Communication Division Chief Rodolfo P. Estigoy said the agency just received P2.1 billion from the Department of Budget and Management (DBM) through a special allotment release order last July 22.

The amount is part of the agency’s share of P5 billion from the P10-billion Rice Competitiveness Enhancement Fund (RCEF) mandated by Republic Act (RA) 11203.

RCEF was created to help farmers cope with the adverse effects of the rice trade liberalization law.

Estigoy said PhilMech, an attached agency of the Department of Agriculture (DA), will start the survey of some 1,200 rice-producing municipalities which would receive free farm equipment from the government.

The survey aims to determine the required and suitable farm machines of each municipality to help planters improve their productivity and increase their income, he added.

“The P100 million will be used for extension services while the P2 billion will be used to purchase agricultural machines,” Estigoy told reporters in a news briefing on Thursday.

“PhilMech will adopt a needs-based approach wherein the agency will determine the most pressing needs [in terms of machinery] in the municipalities and provide these needs,” he added.

Citing a recent evaluation by PhilMech, Estigoy said the agency found that the most immediate need of rice farmers are equipment for land preparation, like hand tractors and dryers.

He said the agency expects to finish the survey and evaluation of the target beneficiaries within the month. PhilMech is targeting to kick off the bidding and procurement of farm equipment by September.

The agency is expected to start delivering the free farm equipment in February 2020.

Beneficiaries of the free machines include farmers’ groups in the 1,200 municipalities in 57 major rice-producing provinces that are in the DA’s database, Estigoy said.

Nueva Ecija, which accounts for 10.18 percent of national output, Isabela, Pangasinan, Cagayan and Iloilo are among the country’s top rice producers, according to PhilMech.

The agency will group rice producers into six clusters to facilitate the implementation of free equipment program. These clusters are Luzon A, Luzon B, Luzon C, Visayas, Mindanao A, and Mindanao B.

Estigoy said PhilMech expects to get the remaining P2.9 billion from the national government before the end of the year as the rice trade liberalization law mandates that the agency should get P5 billion annually in the next six years.

Money for the RCEF is being frontloaded by the government to cushion the impact of a more open Philippine rice market on planters. Starting next year, money from the RCEF will be funded by tariffs collected from rice imports.

The DBM said on its web site that it has released a total of P5 billion last July 18 to RCEF implementing agencies.

The Philippine Rice Research Institute (PhilRice) received P2.095 billion while the Technical Education and Skills Development Authority (Tesda) was given P700 million.

The DBM also released P100 million to the Agricultural Training Institute (ATI), another attached agency of DA.

Under RA 11203, PhilMech must receive P5 billion for the distribution of free equipment to farmers, while PhilRice woud be given P3 billion for the distribution of inbred rice seeds. Tesda and ATI will get P1 billion each for credit assistance and 
farmers’ training.

https://businessmirror.com.ph/2019/08/02/rice-planters-to-get-free-machines-in-2020/

PhilMech says farm mechanization aid focused on 1,200 towns

August 1, 2019 | 10:10 pm

Philmech’s Mini Rice Combine Harvester Prototype

THE Philippine Center for Postharvest Development and Mechanization (PhilMech) said that 1,200 municipalities from major rice-producing provinces will benefit from the P5-billion mechanization component of the Rice Competitiveness Enhancement Fund (RCEF).

In a briefing on Thursday, Rodolfo P. Estigoy, head of applied communications for PhilMech, said that the implementing guidelines for the mechanization program were approved last month. The rules identify six clusters nationwide as the channels for spending on mechanization.

Luzon will have three clusters, the Visayas one, and Mindanao two.

An initial P2.1 billion was allocated to the agency by the Department of Budget and Management (DBM), with the remainder to follow. Some P2 billion will go towards machinery procurement, while P100 million will fund extension services.

The distribution, delivery, and installation of the machinery will be needs-based. PhilMech had previously considered providing farmers with a whole set of machineries for the whole process of farming.

Under the needs-based scheme, farmers in need of a particular type of equipment will be provided the needed machinery. If PhilMech starts distributing dryers, for instance, all farmers needing dryers will be prioritized.

The agency will start gathering information on needed equipment this month, with procurement to start in September.

By February, PhilMech hopes to start with distribution, delivery, and installation of the procured items.

To join the program, a farmer must be registered with the DA, work within the six clusters identified by the agency, and must be a member of a farmers’ group, include irrigation associations, farmers’ cooperatives, and agrarian reform beneficiary organizations. — Vincent Mariel P. Galang

https://www.bworldonline.com/philmech-says-farm-mechanization-aid-focused-on-1200-towns/

Enforcement Directorate Attaches REI Agro Assets Worth Rs 480 Crore

The Enforcement Directorate has attached basmati rice maker REI Agro Ltd.’s assets worth over Rs 480 crore in connection with a bank fraud case, the central investigating agency said on Thursday. The Enforcement Directorate has issued a provisional attachment order under the Prevention of Money Laundering Act, 2010 against REI Agro, it said in a statement. The attachment worth Rs 481.04 crore in
https://www.bloombergquint.com/business/rei-agro-assets-worth-rs-480-crore-attached-in-alleged-bank-fraud-case

Average yield of paddy to remain 35 maunds per acre’

·      RECORDER REPORT

·      AUG 2ND, 2019

·      LAHORE

Paddy has been grown over 4.7 million acres of land in the Punjab province during the current season and it is expected that average yield will remain around 35 maunds per acre. It is hoped that more yield will help take the rice exports to US$2 billion, said Dr Muhammad Sabir, Director Rice Research Institute (RRI) Kala Shah Kaku, while briefing Punjab Agriculture Minister Malik Nauman Ahmad Langrial.

Langrial on Thursday visited growers and provincial agricultural institutes of Lahore Division to get the first-hand knowledge of issues of the growers. The Minister said that welfare of the farmers is top priority of the government and the department will soon issue agri-smart card aimed at reducing the problems of growers' community. Director General Agriculture (Extension) Dr Anjum Ali and other officers of the extension wing accompanied the Minister. He met a delegation of farmers at Dayal village and listened to their problems and assured earliest solution. During his visit to the Rice Research Institute Kala Shah Kaku, the Minister directed the staff to properly guide rice growers in saving their crop from pests and achieving the rice production target. The Minister also planted a sapling in the institute and also visited Soil Testing Lab and Adaptive Research Farm Sheikhupura. He directed the officers to provide technical assistance to growers of different crops.

https://fp.brecorder.com/2019/08/20190802503715/

Rice planters to get free machines in 2020’

By  Jasper Y. Arcalas

 -

August 2, 2019

A farmer walks on a rice field in Tarlac in this file photo.

Rice planters would have to wait until the first quarter of next year for their free farm machines from the government as the budget impasse stalled the release of funds.

Philippine Center for Postharvest Development and Mechanization (PhilMech) Applied Communication Division Chief Rodolfo P. Estigoy said the agency just received P2.1 billion from the Department of Budget and Management (DBM) through a special allotment release order last July 22.

The amount is part of the agency’s share of P5 billion from the P10-billion Rice Competitiveness Enhancement Fund (RCEF) mandated by Republic Act (RA) 11203.

RCEF was created to help farmers cope with the adverse effects of the rice trade liberalization law.

Estigoy said PhilMech, an attached agency of the Department of Agriculture (DA), will start the survey of some 1,200 rice-producing municipalities which would receive free farm equipment from the government.

The survey aims to determine the required and suitable farm machines of each municipality to help planters improve their productivity and increase their income, he added.

“The P100 million will be used for extension services while the P2 billion will be used to purchase agricultural machines,” Estigoy told reporters in a news briefing on Thursday.

“PhilMech will adopt a needs-based approach wherein the agency will determine the most pressing needs [in terms of machinery] in the municipalities and provide these needs,” he added.

Citing a recent evaluation by PhilMech, Estigoy said the agency found that the most immediate need of rice farmers are equipment for land preparation, like hand tractors and dryers.

He said the agency expects to finish the survey and evaluation of the target beneficiaries within the month. PhilMech is targeting to kick off the bidding and procurement of farm equipment by September.

The agency is expected to start delivering the free farm equipment in February 2020.

Beneficiaries of the free machines include farmers’ groups in the 1,200 municipalities in 57 major rice-producing provinces that are in the DA’s database, Estigoy said.

Nueva Ecija, which accounts for 10.18 percent of national output, Isabela, Pangasinan, Cagayan and Iloilo are among the country’s top rice producers, according to PhilMech.

The agency will group rice producers into six clusters to facilitate the implementation of free equipment program. These clusters are Luzon A, Luzon B, Luzon C, Visayas, Mindanao A, and Mindanao B.

Estigoy said PhilMech expects to get the remaining P2.9 billion from the national government before the end of the year as the rice trade liberalization law mandates that the agency should get P5 billion annually in the next six years.

Money for the RCEF is being frontloaded by the government to cushion the impact of a more open Philippine rice market on planters. Starting next year, money from the RCEF will be funded by tariffs collected from rice imports.

The DBM said on its web site that it has released a total of P5 billion last July 18 to RCEF implementing agencies.

The Philippine Rice Research Institute (PhilRice) received P2.095 billion while the Technical Education and Skills Development Authority (Tesda) was given P700 million.

The DBM also released P100 million to the Agricultural Training Institute (ATI), another attached agency of DA.

Under RA 11203, PhilMech must receive P5 billion for the distribution of free equipment to farmers, while PhilRice woud be given P3 billion for the distribution of inbred rice seeds. Tesda and ATI will get P1 billion each for credit assistance and 
farmers’ training.

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https://businessmirror.com.ph/2019/08/02/rice-planters-to-get-free-machines-in-2020/

Senators seek probe into use of P10-B farmers' fund

 

Dharel Placido, ABS-CBN News

Aug 02 2019 03:14 PM

The five-month old Rice Tariffication Law created the Rice Competitiveness Enhancement Fund (RCEF), which provides P10 billion a year to farmers to help them cope with the influx of imported rice.

Sen. Cynthia Villar has filed a resolution seeking a probe into the use of the multi-billion fund, saying the budget department already released half of the amount last December but it was not yet clear whether this has been utilized.

Villar, chair of the Senate agriculture and food committee, said she wants to know where the funds have gone.

She noted that P5 billion should be given to the Philippine Center for Postharvest Development and Mechanization (PhilMech) for the purchase of agricultural machineries, P3 billion to the Philippine Rice Research Institute (PhilRice) for the training of farmers, P1 billion to the LandBank and Development Bank of the Philippines for the provision of cheap credit to farmers, and the remaining P1 billion for the tuition of farmers and payment to their trainers.

"I have to exercise my oversight function to make sure they follow the law. Kasi this is very important, this is the competitiveness of our farmers,” Villar told reporters.

“We have liberalized the importation of rice so we have to make our farmers as competitive as soon as possible.”

Sen. Francis Pangilinan, also an advocate of farmers’ rights, meanwhile, filed a resolution asking Villar’s committee to conduct an inquiry on the impact of the Rice Tariffication Law on rice farmers and the local rice industry.

“Farmers tell us that their earnings dropped further with the implementation of the law. ‘Rice tariffication is killing us’ said one farmer from Nueva Ecija who approached us,” Pangilinan said in a statement.

“The impact of the law on our farmers is swift and brutal but the implementation of the provisions aimed at easing this severe effect is slow if non-existent. Where is the help from the P10-billion RCEF?”

Pangilinan said consumers also have yet to see rice prices going down since the enactment of the law, which was meant to flood the market with imported rice and address skyrocketing prices that also drove inflation rate to high levels.

“Who benefited from this policy? It looks like we’ve suffered a double whammy,” Pangilinan said.

Detained Sen. Leila de Lima also filed her own resolution seeking to assess the impact of the five-month old law.

De Lima, chair of the Senate social justice committee, said it is incumbent upon the Senate to guarantee that both the Filipino rice consumers and farmers would benefit from the law's strict implementation.

"Our mandate as lawmakers does not stop once a bill becomes law. In the exercise of our oversight function, we need to see to it that the agency responsible for implementing it could ensure that the law would protect, not displace, our farmers," De Lima said in a statement.

"It is incumbent upon the Senate to assess the impact of this law and ensure, among others, that its provisions on importing of the national food staple and enforcement of tariff rates are properly implemented and not abused, at the detriment of our local farmers.”

De Lima said she has received information from the Federation of Free Farmers that some importers paid "less than what was due from them", if not reduce their tariff obligations by "deliberately lowering the declared value of their imports in connivance with their suppliers abroad."

Bank loan fraud case: ED attaches over Rs 480 cr assets of basmati rice processing firm

The central agency issued a provisional attachment order under the Prevention of Money Laundering Act (PMLA) against the firm.

PTI|Aug 01, 2019, 11.45 AM IST

The Enforcement Directorate (ED), in 2016, had registered a money laundering case against the company.

NEW DELHI: The ED on Thursday said it has attached assets worth over Rs 480 crore of REI Agro Ltd, a prominent basmati rice processing company, in connection with an alleged multi-crore bank loan fraud case.

The central agency issued a provisional attachment order under the Prevention of Money Laundering Act (PMLA) against the firm, it said in a statement.

The Enforcement Directorate (ED), in 2016, had registered a money laundering case against the company, which claims to be the world's largest basmati rice processing firm. The alleged bank fraud is pegged at Rs 3,871.71 crore.

The attachment worth Rs 481.04 crore largely comprises the land building plant and machinery of the rice mill unit of the company office space that is held by the controlled companies and wind farms owned by REI Agro Ltd, according to the statement.

Fifty per cent share of the immovable properties held by four companies of Fortune Group based at Kolkata have also been attached, the agency said

Ifugao State University assesses condition of rice terraces

 August 2, 2019 

Ifugao has five rice terraces clusters in Batad and Bangaan in Banaue; Nagacadan in Kiangan; Central Mayoyao in Mayoyao and the whole of Hungduan.

https://manilainformer.com/488809/ifugao-state-university-assesses-condition-of-rice-terraces/

https://economictimes.indiatimes.com/industry/cons-products/food/bank-loan-fraud-case-ed-attaches-over-rs-480-cr-assets-of-basmati-rice-processing-firm/articleshow/70477622.cms