Tuesday, November 25, 2014

25th November, 2014 Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

Vietnam Exports 5.55 Million Tons of Rice During January 1 – November 20, 2014

Nov 24, 2014
Vietnam exported around 5.549 million tons of rice in January 1 - November 20, 2014, down about 10% from around 6.17 million tons of rice exported during January - November, 2013, according to data from the Vietnam Food Association (VFA). Average rice export price so far in this year stands at around $436 per ton (FOB), up about $5 per ton from same time last year.
During November 1-20, 2014, Vietnam exported around 190,194 tons of rice, down about 54% from around 410,423 tons rice exported in full month of November 2013, and down about 67% from about 570,769 tons rice exported in full month of October 2014. Average export prices in so far in November stands at around $439 per ton, down about 1% from a year ago, and down about 6% per ton from a month ago.

Oryza Afternoon Recap - Chicago Rough Rice Futures Trade Lower as Bearish Grains Weigh on the Market

Nov 24, 2014
Chicago rough rice futures for Jan delivery settled 15 cents per cwt (about $3 per ton) lower at $12.445 per cwt (about $274 per ton). The other grains also closed lower today; Soybeans closed about 0.5% lower at $10.3375 per bushel; wheat finished about 0.9% lower at $5.4225 per bushel, and corn finished the day about 1.4% lower at $3.6750 per bushel.U.S. stocks mostly rose on Monday as investors drew cheer from central-bank action to boost the global economy and from deal activity. Monday's economic data had the U.S. services sector expanding in November at a slower rate than the prior month as growth in new business slowed. Wavering on either side of neutral, the Dow Jones Industrial Average was lately down 12.98 points, or 0.1%, at 17,797.08. After coming less than 2 points from its intraday record hit Friday, the S&P 500 was lately up 3.03 points, or 0.2%, at 2,066.53, with consumer discretionary and technology leading gains and telecommunications and energy pacing losses among its 10 major industry groups. The Nasdaq gained 28.20 points, or 0.6%, to 4,741.17. Gold is trading about 0.1% lower, crude oil is seen trading about 0.7% lower, and the U.S. dollar is seen trading about 0.2% lower at about  1:00pm Chicago time.Friday, there were 283 contracts traded, down from 745 contracts traded on Thursday. Open interest – the number of contracts outstanding – on Friday deceased by 100 contracts to 9,683.

Oryza U.S. Rough Rice Recap - Prices Hold Steady on First Day of Short Week

Nov 24, 2014
The U.S. cash market was unchanged today as both buyers and sellers were unwilling to compromise on price.
Analysts report that the bids and offers were roughly $0.25-$0.50 per cwt apart (about $6-$11 per ton).
Going forward, the markets’ focus will be on the latest Iraqi tender which will be awarded on Friday, November 28, when the markets in the U.S. will be closed due to the Thanksgiving holiday.


Rice Price Volatility in Myanmar Can be Reduced by Addressing Structural Causes, Says World Bank Report

Nov 24, 2014

Rice prices in Myanmar have increased by about 40% between 2009-2013 leading to food insecurity in the country as well as export un-competitiveness, according to the recent World Bank report titled "Rice Price Volatility and Poverty Reduction.” This enormous increase in rice prices has impacted rice farmers' incomes and most of them are close to poverty income levels.

The authors of the report noted that rice price volatility in Myanmar is due to certain structural changes and addressing these would reduce these volatilities. They say rice is grown in Myanmar only in November and December and concentration of paddy production in just two months of the marketing year is prone to several climatic vagaries impacting production. Added to this, existing conditions such as fragmented seed market, poor roads, inadequate communication, unreliable market information, low export diversification, high storage costs and lack of post-harvest facilities are also contributing to price volatilities.
They say spreading production evenly throughout the year could reduce impact of weather vagaries and investment in modern rice mills and post-harvest facilities, communication facilities as well as enhancing rice market value chain could stabilize prices in the long run. 'The World Bank’s country director for Myanmar says, "There is a significant trade-off between lowering price volatility with short-term measures and maintaining price competitiveness. Long-term structural issues can be solved only through investments in agriculture and infrastructure, improved business environment, and social safety nets. Open trade policy should be the one and foremost policy goal for Myanmar.”The report is the part of a series of reports produced by the world Bank on Myanmar’s rice cultivation and industry.

Asia Rice Quotes Mixed Today

Nov 24, 2014
Thailand rice sellers increased their quotes for Hommali rice by about  $15 per ton to around $865 - $875 per ton today. India and Pakistan rice sellers lowered most of their quotes by about $5 - $15 per ton today. Vietnam rice sellers kept their quotes mostly unchanged today.
5% Broken Rice
Thailand 5% rice is quoted at around $405 - $415 per ton, about $10 per ton premium on Vietnam 5% rice shown at around $395 - $405 per ton. India 5% rice is quoted at around $395 - $405 per ton, down about $15 per ton from Friday and about $15 per ton premium on Pakistan 5% rice quoted at around $380 - $390 per ton, down about $10 per ton from Friday.
25% Broken Rice                                                                                                                                                                                                                      
Thailand 25% rice was last quoted at around $350 - $360 per ton, about $5 per ton discount to Vietnam 25% rice shown at around $355 - $365 per ton.
India 25% rice is quoted at around $360 - $370, down about $10 per ton from Friday and about $25 per ton premium on Pakistan 25% rice quoted at around $335 - $345 per ton, down about $15 per ton from Friday.
Parboiled Rice
Thailand parboiled rice is quoted at around $405 - $415 per ton. India parboiled rice is quoted at around $380 - $390 per ton, about $40 per ton discount to Pakistan parboiled rice quoted at around $420 - $430 per ton, down about $5 per ton from Friday.
100% Broken Rice
Thailand broken rice, A1 Super,  is quoted at around $330 - $340 per ton, about $10 per ton premium on  Vietnam 100% broken rice shown at around $320 - $330 per ton. India's 100% broken rice is shown at around $305 - $315 per ton, down about $5 per ton from Friday and about $10 per ton discount to Pakistan broken sortexed rice quoted at around $315 - $325 per ton, down about $5 per ton from Friday.


UNISAME Calls for Efficient Planning and Diligent Policies to Enhance Pakistan Rice Exports

Nov 24, 2014

The Union of Small and Medium Enterprises (UNISAME) has stressed the need for efficient and advance planning as well diligent policies to increase Pakistan rice exports as well as farmers' incomes, according to a statement released by the organization. The UNISAME appreciated the efforts of the Prime Minister in providing subsidies to the basmati rice farmers but said the Agriculture and Commerce Ministries could have provided him with advance information about the likely decline in demand and prices of basmati rice in the global market and provide necessary and timely support to farmers. The President of the UNISAME slammed both the ministries for lack of foresight, coordination and integrated efforts to overcome situations.He noted that Pakistan's basmati rice exports face stiff competition from India and unless the government takes some proactive measures, Pakistan may have eventually lose its markets to India. He says Pakistan has failed to set up a payment policy with Iran, which is a very important destination for Pakistan rice. Whereas India has a swap arrangement with Iran to buy oil and sell rice. Currently, Iran has suspended basmati rice imports citing adequate stocks as the reason. The UNISAME President says in the current situation, India will be in a better situation once Iran revives basmati rice imports.
The UNISAME President also noted that increased cost of production is another factor affecting the country's rice sector. Recently, export prices have plunged below production costs and the famers are losing incomes.He also noted that several restrictions in Pakistan are depriving Pakistan rice exporters in striking quick deals. For instance, Pakistan rice exporters have to get their consignment approved by the Quality Review Committee (QRC) before shipping. UNISAME had been for long seeking the closure of QPC, but it has not been closed so far. India does not have such pre-shipping restrictions, he adds. Due to these reasons, India is in a position to offer relatively lower prices for overseas customers.
The UNISAME President had advised the Trade Development Authority of Pakistan (TDAP) to conduct trade fairs in the Europe to promote Pakistan's basmati rice but the government has not so far made successful attempts in this regard. On the other hand, Indian basmati brands have been dominating several super markets.He noted that the government should take proactive and long-term measures to increase exports and incomes of rice farmers instead of reacting to an event.

TREA Seeks Government Intervention as Thai Hom Mali Rice Prices Decline to One Year Low

Nov 24, 2014

Domestic prices of Thai premium Hom Mali rice prices have declined to around 28,900 baht (around $907.15) per ton in November this year, down about 15% from around 33,235 baht (around $1,043) per ton during the same time last year, report local sources quoting data from the Thai Commerce Ministry.
The export prices of Thai Grade B Hom Mali rice also declined about 18% year-on-year to one year-low of around $863 per ton from around $1,053 per ton.The President of the Thai Rice Exporters Association (TREA) noted that paddy prices for 2014-15 crop are almost 50% lower than the prices offered by the previous government under the controversial rice pledging scheme. Currently, Hom Mali paddy is offered around 9,000 - 12,000 baht (around $274 - $365) per ton from around 16,000 baht (around $487) per ton offered last year. Similarly, stick paddy is offered around 7,000 - 8,000 baht (around $213 - $244) per ton compared to around 13,000 baht (around $396) per ton last year.
He urged the government to intervene and push up paddy prices. He noted that the government could encourage top rice exporters to buy at least 100,000 tons of rice from the current crop and expand their stocks.Last month, the government asked exporters to delay sales of about 2 million tons of rice to ensure that increased supplies from the upcoming harvest season do not put downward pressure on prices. The government is expecting around 6 million tons of Hom Mali rice from the current harvest.
The Commerce Minister told told local sources that the government will take certain measures to stabilize the price of Thai Hom Mali rice at around 15,000 - 16,000 baht (around $457-$487) per ton. The prescribed rate called the 'median rate' will be announced after approval from the National Rice Policy Committee, he said. The Minister noted that millers and exporters should buy Hom Mali rice from farmers at the 'median rate' and farmers are also educated about the 'median rate' so that they don't end up selling at a loss. He added that the duration of the 'median price' will depend on global prices. However, such a median price had not been announced so far.

Pakistan Rice Exporters Oppose Government Rice Procurement Policy

Nov 24, 2014


Pakistan rice exporters are opposing the rice procurement policy by the government saying it would affect exports by the country as well as destabilize the private sector, which plays a vital role in enhancing rice exports and earning foreign exchange to the country, according to local sources.The Chairman of the Rice Exporters Association of Pakistan (REAP) was quoted as saying in a statement that the government's interference in the rice procurement activity to guarantee high prices to farmers may lead to eventually losing traditional rice export markets. He noted that when the government procures rice at high prices, it will not be ready to sell at lesser prices and may end up with huge stocks. He added that the government may have to compromise later to get rid of the stocks.
The REAP Chairman reminded that the Pakistan Agricultural Storage & Services Corporation (PASSCO) procured around 200,000 tons of rice at above-market prices and could not sell those stocks even after six years. Ultimately, the government had to incur losses to the extent of Rs.24 billion (around $236 million). He also cited the example of Thailand, which is currently facing losses due to the rice pledging scheme implemented by the previous government.He also noted that increased government intervention in the rice sector may lead to loss of huge foreign exchange as well as the credibility that the Pakistan exporters have earned all these years. He therefore urged the government to allow private sector to play a significant role in creating value to Pakistan's rice sector.
The REAP Chairman made these comments in the light of Pakistan’s rice sector facing several problems due to increasing input prices, excessive load shedding and declining local prices. The farmers have been demanding subsidies on seeds, fertilizers, land and electricity. Normally governments intervene in such situations by offering to buy paddy from farmers at above-market prices. Foreseeing such a move, the REAP Chairman cautioned the government not to procure rice from farmers , rather he said the government may support the rice farmers and other stakeholders through offering  free seeds, free pesticides, free water, free fertiliser and free electricity as well as through setting up adequate infrastructure and technology.

Follow August 15 Deadline to Tackle Gall Midge Infection in Rice Plants

Nov 24, 2014

In the concluding part of the two-part series on insects and pests that affect the rice plant,  Dr. N. Mallikharjuna Rao, Program Coordinator, Krishi Vigyan Kendra, Wyra, Khammam District, talks about more deadly pests that infect the rice plant and the latest management techniques available to tackle it.
Oryza: Gall Midge is an equally notorious pest that affects the rice plant. What are the symptoms the farmer should watch out for?
Dr Mallikharjuna:
The Gall midge (Orseolia oryza) adult is about the size of a mosquito, its abdomen is bright red, while the males are darker in colour. It is a key pest of irrigated and rainfed shallow lowland rice. It is endemic to many parts of India.
Damage symptoms:
- The maggots of this pest cause damage by feeding on the growing tips resulting in elongation of the leaf sheath into a gall.
-  The gall resembling an onion leaf, glistens in the field and hence called a "Silver shoot".
-  The gall forming tiller does not bear a panicle.
-  Early infestation results in profuse tillering of the plants, but most of these new tillers often also become infested.
Oryza: What do you suggest towards management of the pest?
Dr Mallikharjuna:
Early planting wherever possible is the best method of control. The crop must complete tillering before August 15.
-  If late planting is inevitable, gallmidge resistant varieties like Surekha, Phalguna, Kavya, Polasa prabha, Siddi may be grown.
- If susceptible varieties are grown insecticidal treatment should be given.
- Seven to ten days after sowing, apply Carbofuran 3G @ 16 Kg/ac or Phorate 10 G @ 5 Kg/ac in a thin film of water or spray monocrotophos @ 1.6 ml or chlorpyriphos  2ml/lt. of water twice at 10 and 20 days after germination of seed.
-  Apply carbofuran 3G @ 10Kg/acre or phorate 10 G @ 5 kg/acre, at 15-20 days after planting if silver shoots are 5%.
Oryza: Rice thrips is an equally annoying problem. What solutions do we have currently?
Dr Dr Mallikharjuna:
This pest, Stenchaetothrips biformis (Bagnall) occurs in rainfed rice and most abundant during spells of dry weather.  Both nymphs and adults  suck the cell sap from leaves.
Damage symptoms:
- Feeding of thrips causes yellowish streaks initially and the leaves curl longitudinally from the margins inwards leading to sharply pointed leaf tips resembling that of needles, which finally wither.
-In severely infested areas, the plants become lanky and present a sickly appearance.
- Infestation at panicle stage causes sterility.
Control measures:
-Spray monocrotophos 1.6 ml or chlorpyriphos 2.5 ml/litre of water.
Rice hispa: The hispa, Dicladispa armigera (Oliver) is bluish balck in colour and has many spines on its body. It is a minor pest earlier, presently it has attained key pest status in india.
Damage symptoms:
- Grubs mine into the leaves and feed from within whereas adults feed by scraping the chlorophyll content of leaves resulting in longitudinal white stripes.
-  In severe epidemics, the leaves dry up gives burnt appearance.
Control measures:
-Clipping of leaf tips of rice seedlings at the time of transplantation.
- Spray profenophos @2ml or monocrotophos @1.6 ml or chlorpyriphos @ 2.5 ml/litre of water.
Oryza: Swarming caterpillar is another pest that can cause severe damage especially in the aftermath of a flood. How should it be tackled?
Dr Dr Mallikharjuna: The swarming caterpillar, Spodoptera mauritia is an occasional pest. The outbreaks occur immediately after floods, when the water recedes from the field.
Damage symptoms:
-Caterpillar feed voraciously on leaves by cutting off the leaf tips, leaf margins, leaf blade and even the plants at base.
-The attacked paddy field gives a grazed appearance.
Control:
- Remove the weeds both in the field and on bunds
-Fill the paddy nursery with irrigation water to expose the larvae to predators like birds.
- Spray chlorpyriphos 2.5 ml or monocrotophos 1.6 ml/litre of water along with dichlorvos @1 ml during evening hours.


Global Rice Quotes
November 24th, 2014
Long grain white rice - high quality
Thailand 100% B grade          420-430           ↔
Vietnam 5% broken    395-405           ↔
India 5% broken         395-405           ↓
Pakistan 5% broken    380-390           ↓
Cambodia 5% broken             455-465           ↔
U.S. 4% broken           540-550           ↔
Uruguay 5% broken    595-605           ↔
Argentina 5% broken 595-605           ↔
Long grain white rice - low quality
Thailand 25% broken NQ      ↔
Vietnam 25% broken 355-365           ↔
Pakistan 25% broken 335-345           ↓
Cambodia 25% broken           NQ      ↔
India 25% broken       360-370           ↓
U.S. 15% broken         510-520           ↔
Long grain parboiled rice
Thailand parboiled 100% stxd            405-415           ↔
Pakistan parboiled 5% broken stxd    420-430           ↓
India parboiled 5% broken stxd         380-390           ↔
U.S. parboiled 4% broken       580-590           ↔
Brazil parboiled 5% broken    570-580           ↔
Uruguay parboiled 5% broken            NQ      ↔
Long grain fragrant rice
Thailand Hommali 92%          865-875           ↑
Vietnam Jasmine         530-540           ↔
India basmati 2% broken        NQ      ↔
Pakistan basmati 2% broken   NQ      ↔
Cambodia Phka Malis             835-845           ↔
Brokens
Thailand A1 Super      330-340           ↔
Vietnam 100% broken            320-330           ↔
Pakistan 100% broken stxd    315-325           ↓
Cambodia A1 Super   NQ      ↔
India 100% Broken stxd         305-315           ↓
Egypt medium grain brokens NQ      ↔
U.S. pet food 445-455           ↔
Brazil half grain          NQ      ↔

All prices USD per ton, FOB vessel, oryza.com
News have been shared with due permission of ORYZA

24th November,2014 Daily Global Rice E-Newsletter by Riceplus Magazine

Exporters risk losing traditional rice markets
 Salman Siddique
Saturday, November 22, 2014
From Print Edition

KARACHI: Rice exporters on Friday warned Pakistan could lose its traditional rice markets if the government buys the commodity from farmers to guarantee them high prices.

The Rice Exporters Association of Pakistan (REAP) has also asked the government to avoid buying rice from farmers, as it may destabilise the private sector.The association, however, said the government should provide direct subsidy to farmers in order to support them.“The government’s involvement in such business activity (procurement) will be harmful to the private sector, which has invested billions of rupees to build an infrastructure and human resources,” Rafique Suleman, chairman of REAP, said in a statement.“In case of the government’s involvement in rice business, we will lose huge foreign exchange, as well as the credibility, which the rice exporters have earned after long hard working.
”Suleman demanded the government to give due consideration to the grievances of the rice industry and give free hand to the private sector for playing their positive role, boosting the economy, which is badly affected due to a number of reasons.He said the international market is depressed and all the rice exporting countries are facing tough competition and prices are on the decline. “This is the market phenomena and due to the demand supply aspect, we see such trend in times and have to cope with it,” Suleman added.The price issue highlighted following reports of a pick-up in paddy harvest that has weakened its prices to at least 40 percent this season.

 The price of paddy – raw rice – has dropped by Rs1,000/40 kilogram to around Rs1,500-1,600/ 40 kilogram against the last year’s price of Rs2,500-2,600/40 kg.Growers, who lack the storage facility, have no other option, but to sell it, but buyers — notably the mill-owners and middlemen — are deliberately delaying the buying to pressurise the growers sell the crop at throwaway rates.Farmers have asked the government to immediately announce subsidy to them through providing subsidised fertilisers, seeds and diesel for the next crop. They also demanded the government to fix a minimum export price at the previous year average export rate of $1,153/ton.
This will help avert such price crisis at the growers end.The government should also not intervene through the Trading Corporation of Pakistan and Pakistan Agricultural Storage and Supplies Corporation.Suleman recalled PASSCO, in the year 2008, procured 200,000 tons of rice at a premium price and “even after six years they could not disposed of those stocks and ultimately government had to face losses of up to Rs24 billion.”The RECP chairman also quoted the example of Thailand, where government procured the rice with higher prices, but the move damaged 17 million tonnes of rice in the absence of proper storage and warehouse facility and finally.
“The Thai government suffered a loss of $30 billion.” Suleman said.He advised the government to support farmers, but “this should be done through a proper mechanism”.The government should compensate farmers in the shape of free seeds, free pesticides, free water, free fertiliser, free electricity and other facilities. “As farmers are not equipped with the latest machinery and due to the mishandling, every year we have to see crop loss, further we could not get the right quality of rice,” Suleman added.

Protectionism vs rent-seeking

Updated Nov 24, 2014 07:42am
In view of trade surpluses, the federal government has levied a duty on wheat and sugar imports to protect farmers and sugar millers. Such temporary measures may be called for in times of stress originating from both domestic and international surpluses, or from market volatility.
However, these ‘relief measures’ should serve as a breather without slackening national efforts to improve productivity and quality and making goods and services globally competitive price-wise. Quite often, this does not happen, perpetuating inefficiencies in the economy by the permanent embedding of subsidies and protectionist measures taken from time to time.
It can be argued that selective and temporary protectionism has picked up worldwide after the global financial turmoil of 2007-8 and the Great Recession that followed it. This has provided more sovereign space for national economic decision-making, as countries are focused on tackling domestic issues with shrinking global trade and business opportunities. Many states also tend to develop free trade within national frontiers, with restrictive international trade practices.
While such practices may appear to be a need for the argument for ‘infant industry’ moving to a higher stage of productivity and economic development, it cannot be denied that protectionism breeds inefficiencies and often leads to rent-seeking and predatory practices, which are now visible on a global scale.
In case of the 30pc duty on wheat import, it may be advocated that agricultural produce is heavily subsidised by both Europe and the US — the world’s most developed economy — even though only around 3pc of the American population is engaged in farming. This protects western farmers from cheaper imports from developing states and emerging markets.

The temporary ‘relief’ in adverse circumstances may seem to be inescapable, but it should not be converted into rent-seeking


However, this is not a good example to follow. Subsidies can only be justified in very adverse circumstances, where there is also a strong determination to promptly remove the crutches when they are not needed. There is a strong evidence that subsides linger on and often get entrenched in the system.
The import duty on sugar may not be as justifiable as that for wheat, because the sugar industry has failed to develop in the direction where sugar could be a byproduct rather the core product of millers.
Sugar, like textiles, is a traditional industry that tends to thrive in ways that may often said to be questionable, such as by not making prompt payments to cane growers. It’s clout with the government comes under criticism from growers, particularly when cane crushing is delayed, which delayssowing and impacts the output of other major crops.
The country’s agriculture suffers from low productivity. That is the core issue. It is also true that the unabated flow of resources from rural to urban areas denies farmers the earnings, savings and investment needed to modernise agriculture. As soon as the support price for wheat goes up, the suppliers of farm inputs increase the prices of their products which significantly denies the farmers the full benefits of the increase in support price.
The 20pc import duty on wheat will no doubt help farmers and so would exports of sugar (plus 30pc import duty on sugar imports). Such measures, repeated over time, have not helped improve farm or millers’ productivity, which is among the lowest in the world.Latest reports show that the Economic Coordination Committee of the Cabinet has endorsed Rs32bn in cash assistance for growers to compensate them for the crash in prices of basmati rice. This one-off relief may help check any trend among farmers to reduce their area of cultivation in the next basmati season, as normally happens when the price of a crop drops sharply. Rice is an important export earner.
The temporary ‘relie’ in adverse circumstances may seem to be inescapable, but it should not be converted into rent-seeking. In these times, no economy can progress with crony capitalism, which has to be rooted out lock, stock and barrel to build a globally competitive national economy.It is time to primarily focus on the domestic market, with the top priority on food processing and exports; a sector in which the country has immense national advantage and an area that has been long neglected owing to erroneous policies.
The current global economic situation has provided more space for sovereign economic decision-making, and the opportunity should be seized to build a self-reliant, sustainable and inclusive economy. Capitalism needs to be further democratised in an environment of surging self-determination between and within nations, and growing pluralism.
Published in Dawn, Economic & Business, November 24th, 2014

Hard for Bulog to buy rice from farmers

Senin, 24 November 2014 15:16 WIB | 465 Views
Palu, C Sulawesi (ANTARA News) - The Central Sulawesi branch of State Logistics Agency (Bulog) finds it more difficult to buy rice from local farmers, because the price continues to edge up following the fuel price hikes.Local Bulog spokesman Maruf stated here on Monday that despite the ongoing grand harvest, Bulog is still unable to buy rice from the farmers.

"It is very difficult to get the rice at standard price set by the government, but we will continue to make every effort to buy it from rice mill centers in every district and city in the province," he said.Maruf noted that the price set by the government is Rp6,600 per kg, but Bulog has to buy it from the farmers at Rp7,500 per kg as the impact of the increase in subsidized fuel oil prices.
Consequently, he said the target of Bulog to procure 47 thousand tons of rice this year would not probably be met, because to date Bulog has just absorbed only 19 thousand tons, or 40 percent of the target.(*)
Home / Business / Raw rice drops by Rs1,000/40kg to Rs1,500-1,600/40kg

Raw rice drops by Rs1,000/40kg to Rs1,500-1,600/40kg

KARACHI: Rice exporters have warned Pakistan that it could lose its traditional rice markets if the government buys the commodity from farmers to guarantee them high prices.The Rice Exporters Association of Pakistan (REAP) has also asked the government to avoid buying rice from farmers, as it may destabilise the private sector.The association said the government should provide direct subsidy to farmers in order to support them.

“The government’s involvement in such business activity (procurement) will be harmful to the private sector, which has invested billions of rupees to build an infrastructure and human resources,” Rafique Suleman, chairman of REAP, said in a statement.“In case of the government’s involvement in rice business, we will lose huge foreign exchange, as well as the credibility, which the rice exporters have earned after long hard working.”The price issue highlighted following reports of a pick-up in paddy harvest that has weakened its prices to at least 40 percent this season. The price of paddy – raw rice – has dropped by Rs1, 000/40 kilogram to around Rs1, 500-1,600/ 40 kilogram against the last year’s price of Rs2, 500-2,600/40 kg.
Suleman demanded the government to give due consideration to the grievances of the rice industry and give free hand to the private sector for playing their positive role, boosting the economy, which is badly affected due to a number of reasons.He said the international market is depressed and all the rice exporting countries are facing tough competition and prices are on the decline. “This is the market phenomena and due to the demand supply aspect, we see such trend in times and have to cope with it,” Suleman added.Growers, who lack the storage facility, have no other option, but to sell it, but buyers — notably the mill-owners and middlemen — are deliberately delaying the buying to pressurise the growers sell the crop at throwaway rates.

Farmers have asked the government to immediately announce subsidy to them through providing subsidised fertilisers, seeds and diesel for the next crop. They also demanded the government to fix a minimum export price at the previous year average export rate of $1,153/ton. This will help avert such price crisis at the growers end.The government should also not intervene through the Trading Corporation of Pakistan and Pakistan Agricultural Storage and Supplies Corporation.
Suleman recalled PASSCO, in the year 2008, procured 200,000 tons of rice at a premium price and “even after six years they could not disposed of those stocks and ultimately government had to face losses of up to Rs24 billion.”The RECP chairman also quoted the example of Thailand, where government procured the rice with higher prices, but the move damaged 17 million tonnes of rice in the absence of proper storage and warehouse facility and finally.

“The Thai government suffered a loss of $30 billion.” Suleman said.He advised the government to support farmers, but “this should be done through a proper mechanism”.The government should compensate farmers in the shape of free seeds, free pesticides, free water, free fertiliser, free electricity and other facilities. “As farmers are not equipped with the latest machinery and due to the mishandling, every year we have to see crop loss, further we could not get the right quality of rice,” Suleman added.

 

 

Government jumps to cushion rice price fall


Published on Saturday, 22 November 2014 17:58
To prevent rice prices from plummeting due to limitations on trade with China, the Myanmar Rice Federation (MRF) will consider buying three million bushels of rice from the Ayeyarwady Region, according to General Secretary Ye Min Aung.
“We’re now talking with Myanmar Oriental Bank to buttress the rice price. There’s a rice surplus of three million bushels in the Ayeyarwady Region and 1.5 million bushels in the Bago Region. Someone must purchase them all to prevent the price from falling,” said Ye Min Aung.Rice prices are likely to continue to fall unless Chinese buyers resume their trade and, meanwhile, the MRF is trying to agree official rice exports for December.
“I’m sure there is demand in China,” said Aung Than Oo, the deputy chairperson of MRF.Officials from China’s Administration of Quality Supervision, Inspection and Quarantine, and Agriculture Ministry visited in September and signed the memorandum of understanding with Myanmar’s Ministry of Agriculture and Irrigation to secure an official rice trade.An agreement for rice exports for January and February next year has already been reached with official exports starting next month.Currently, the government is planning to purchase unsold rice and the military will buy stocks in December while the Myanmar Agribusiness Public Corporation (Mapco) is also considering buying up stocks.Ye Min Aung said: “We find it difficult to buy reserved rice and store it in warehouses.
I don’t want to encourage the purchase of reserved rice. I want the millers and merchants to buy more as that is more beneficial in the long term but they need financial support to do so. They also have the responsibility to pay back that support. So we’ll buy it. The Mapco also plans to buy approximately 300,000 bushels of rice.”Rice millers and merchants are in discussions to acquire three million bushels of rice from the Ayeyarwady Region. 



Finance Minister says rice price in line with government's goal  Date : 24 พฤศจิกายน 2557
BANGKOK, 24 November 2014 (NNT)-Finance Minister M.R. Pridiyathorn Devagula says the current price of rice is in line with the goal set by the government. Following calls from rice farmers to have the government raise the subsidy price, the Finance Minister said the ongoing 8,000 baht per ton is a suitable rate. The government also has other programs that allow rice silo owners to take out loans from commercial banks at an annual interest rate of three percent, which the government would shoulder. e said he did not think the Commerce Ministry would release rice from its stocks at this time.
He added that the government is currently developing another farmer assistance program, which will be ready next month, to help them supplement their incomes through other types of crop growing. The Finance Minister further added that his Ministry has been trying to get large organizations involved in the loan scheme for low income families. The interest rate would be around 3% per month, or 36% per year. M.R. Pridiyathorn is scheduled to visit China on November 27th to join Joint Trade and Investment Committee conference, where he is determined to encourage Chinese investors to build rubber factories in Thailand.

Only zero-budget farming can double food production, says Palekar

M_A_SRIRAM;THE HINDUFarmer Krishnappa displaying arecanut cultivated with zero-budget farming. PHOTO: M.A. SRIRAM
Advocate of zero-budget spiritual farming Subhash Palekar has claimed that farmers’ suicide in the country was observed among those practicing the chemical-farming methods.Making a plea for encouraging chemical-free farming, Mr. Palekar said there were nearly 4 million farmers practicing zero-budget farming in the country who were prospering. Mr. Palekar, who interacted with media persons here on Saturday, said there was not a single example of farmers practicing zero-budget farming committing suicide, due to higher yield and low cost input.
Zero-budget agriculture entails no external chemical inputs like fertilizers or insecticides.While chemical farming methods yield about 12 quintals of basmati rice per acre, under the zero-budget farming method, yield was observed to be as high as 18 to 24 quintals, according to Mr. Palekar. Similarly, about 6 quintals of wheat per acre was the normal yield while it was 18 quintals under zero-budget farming.The country’s food output cannot be doubled through chemically-intensive agriculture methods or even conventional organic agriculture. Only zero-budget farming was could meet the country’s food requirements.
Despite the obvious advantages of alternative methods, not many farmers were switching over to it due to government policies which link all credit, marketing, and insurance facilities to chemical-based agricultural practices, said Mr. Palekar.
More popular
He noted that the alternative method of farming was more popular in Karnataka, than in Maharashtra, Uttar Pradesh or Bihar.He came down heavily on the organic farming policy of the State government on the grounds that it was more expensive than chemical-based agriculture. In Mysore region, there were nearly 400 to 500 farmers who had switched over to zero-budget agriculture and Karnataka Rajya Raitha Sangha leader Badagalpura Nagendra said the organisation was working to create awareness among farmers about its benefits.

Rice prices dip to year's low

Published: 24 Nov 2014 at 18.06
Local rice prices have hit the year's low at 28,900 baht a tonne for 100% premium Hom Mali variety this month. The prices dropped by around 15% year-on-year, according to commerce ministry data.Export prices also slipped by 18% to US$863 for Grade B Hom Mali, compared to $1,053 in November last year.Vichien Phuanglamjiak, vice-president of the Thai Rice Farmers Association, said the group would ask the prime minister to help shore up paddy prices."Paddy prices for the 2014/15 crop year are now 50% lower than the pledging price of the previous government.
Hom Mali paddy is sold at 9,000 to 12,000 a tonne from 16,000 while sticky paddy slid to 7,000-8,000 from 13,000 baht," he said.Pol Lt Chareon Laothammatas, president of the Thai Rice Exporters Association, said his group had urged the commerce minister to ask some 200 rice exporters to build their stocks now, a move that could mop up 100,000 tonnes of the glut and costs 2.7 billion baht.The 10 largest exporters have also been asked to buy 300,000 tonnes of Hom Mali rice and expand their stocks, costing 8 billion baht.      

PhilRice celebrates innovations

 November 24, 2014
QUEZON CITY, Nov. 24 -- The Philippine Rice Research Institute (PhilRice) renewed its commitment to the Filipinos by inspiring innovations and rural transformation during its recent 29th anniversary.Dr. Eufemio T. Rasco Jr, PhilRice executive director in a statement, said that the Institute`s advances in research and development show the rice workers` efforts in helping the country provide enough rice and foster progress in rural areas.In 2013, PhilRice released 10 new early-maturing varieties for saline, irrigated, and rainfed lowland areas. NSIC Rc3442SR, an aromatic special that is moderately resistant to green leaf hopper, was also released.  
 We have achieved sustained progress in rice production by providing Filipino farmers with new high-yielding rice varieties.  [Last year was] also remarkable with the National Year of Rice campaign. [During this campaign], we led many Filipinos in sending a unified message that each of us can help attain rice sufficiency and this year, we [upheld] that message by motivating everyone to be responsible rice consumers,” Rasco said.The 29-year-old agency spurred innovations such as the development of nutri-rice milk, Metarhizium anisopliae in powder form, and hydrous bioethanol fuel injector for spark-ignition engines.Nutri-Rice milk is a healthy drink made from germinated brown rice containing Gamma Amino Butyric Acid, which improves brain and cardiovascular functions and can slow down the effects of ageing. 
On the other hand, Metarhizium anisopliae is a fungal microbial agent that controls rice black bug – a pest that can reduce yield up to 80 percent and cause complete crop loss due to bug burn.“[Other than our researches], we also launched an ambitious rural transformation campaign aiming to reduce poverty through our Gusto namin milyonaryo kayo advocacy,” Rasco said.Under the "Gusto namin milyonaryo kayo campaign", diversified farming and agri-business ventures will be promoted through nucleus estates across the country starting from 10 PhilRice stations. Nucleus estates will be put up to give farmers access to support services including training, input, custom services, modern support technologies, product development and packaging, and marketing.
In preparing farmers for the ASEAN integration, PhilRice launched the Palayabangan: The 10-5 challenge, a national competition, which aims to find out technologies that will produce rice at the least cost without sacrificing yield.  Competition results show that farmers can yield 10.54 t/ha for P4.94/k. Average input cost is at P11/k.Aurelio M. Umali, Nueva Ecija governor, lauded the Institute’s contributions in the country`s rice granary.“[While working with] PhilRice for the past years, I have witnessed, with considerable pride, how your tremendous and highly successful efforts in the field of agricultural research and development [propelled] rural progress.
Truly, you are at the forefront of agricultural innovation. Your work to boost agricultural productivity is integral in our efforts to secure the welfare of our farmers and enhance Nueva Ecija`s reputation as the Rice Granary of the Philippines,” he said.Meanwhile, Department of Agriculture Sec. Proceso J. Alcala said that PhilRice was efficient and productive in addressing the challenges in the agriculture sector. Alcala said that PhilRice helped the country increased its local rice supply. In 2013, the Philippines produced 18.44 million metric tons of rice, making it the fastest growing rice-producing country in Asia.
  PhilRice, created through Executive Order 1061 signed on November 5, 1985, also honored more than 100 of its research and development workers.Honourees were led 2 international awardees; 7, national; and 2, regional. Recipients of 3 international best poster awards; 19, national; 7, best paper international awards; and 12, national were also recognized.The institution also recognized 36 loyalty awardees and welcomed 3 PhDs and 9 master`s  graduates.(PhilRice)

Student Chefs Demonstrate Versatility of Rice            
MEXICO -- Last month, the USA Rice Federation conducted three Student Chef Competitions in Puerto Vallarta and Nuevo Vallarta.  Competitors presented a variety of avant-garde rice dishes and demonstrated first-hand that rice is the ideal ingredient for restaurant-quality dishes.   Directors at the various culinary institutions were impressed with the competition and, seeing the great benefit for the professional development of their students, announced they would be conducting another rice cooking competition on their own in December. 
Additionally, they plan to hold a contest with all the universities in the region that have culinary programs to increase awareness of the versatility of rice.Puerto Vallarta and Nuevo Vallarta are premier tourist destinations and have some of Mexico's most luxurious resorts.  The cities host renowned international gourmet festivals with award winning chefs from around the world.  "There is a high demand for gourmet cuisine in Puerto Vallarta and Nuevo Vallarta," said Sarah Moran, USA Rice director of international promotions.  "Our goal is to encourage the hotel and restaurant industry in the region to use more rice on their menus as a way to provide patrons with elegant gourmet meals while increasing profits."

Contact:  Deborah Willenborg (703) 236-1444



CME Group/Closing Rough Rice Futures   
CME Group (Preliminary):  Closing Rough Rice Futures for November 24

Month
Price
Net Change

January 2015
$12.445
- $0.150
March 2015
$12.720
-$0.135
May 2015
$12.960
- $0.135
July 2015
$13.165
- $0.130
September 2015
$12.320
- $0.130
November 2015
$12.220
- $0.130
January 2016
$12.220
- $0.130