3rd March (Tuesday), Daily Exclusive ORYZARice Newsletter by Riceplus Magazine

USDA Post Estimates India MY 2014-15 Rice Exports at 9 Million Tons; Down 16% from Last Year

Mar 02, 2015

USDA Post has estimated India's MY 2014-15 (October - September) rice exports at around 9 million tons (around 5.8 million tons of basmati and 3.2 million tons of non-basmati), down about 13% from an estimated 10.3 million tons last year due to anticipated decline in supplies from low production and competition from other rice exporting countries.The Post reports that the Government of India is unlikely to impose any export restrictions as feared earlier (due to late arrival of monsoons and consequent reduction in production) due to high domestic supplies. In fact, India's exports to Sri Lanka and other traditional markets in Africa and the Middle East have surged since September 2014. Based on preliminary export figures from official and private sources, the Post reports that the Indian exports in 2014 have totalled 10.88 million tons and major export destinations were Saudi Arabia, Iran, Senegal, Bangladesh, Sri Lanka, U.A.E, Nigeria, South Africa, and Guinea. 

The Post forecasts India's exports in 2015-16 at about 8.5 million tons (around 4.5 million tons of non-basmati and 4 million tons of basmati) on relative tight exportable supplies.The Post estimates MY 2014-15 rice production at around 102 million tons (about 89.5 million tons from kharif and 13 million tons from rabi), down about from an estimated 106.6 million tons in 2013-14, based on lower yields of kharif (June - December) and less acreage if rabi (November - March). Planting for 2015 rabi rice crop as of January 30, 2015 has declined about 17% to around 1.5 million hectares from about 1.8 million hectares last year. It estimates total paddy acreage in 2014-15 at around 42.5 million hectares (38.2 million hectares in kharif and 4.3 million hectares in rabi).The Post forecasts MY 2015-16 at around 104 million tons assuming normal monsoons.

India government procured around 2.774 million tons of rice in kharif Marketing Season (KMS) 2014-15 as of February 16, 2014. The government of India also fixed rice procurement target for KMS 2014-15 at about 35.109 million tons rice, which include 30.050 million tons from kharif crop and about 5.059 million tons rice from rabi crop. The Indian government procured about 31.839 million tons of rice during the KMS 2013-14, according to the Agriculture Ministry.

The Post expects the current-year new-crop rice procurement would be sufficient to meet the government's minimum requirement for its public distribution system and other feeding programs in 2014-15.India’s rice stocks in the central pool as of February 1, 2014 stood at around 24.88 million tons (including a milled equivalent of about 17.43 million tons of paddy), down about 20% from around 31.27 million tons recorded during the same time last year, according to data from the Food Corporation of India (FCI).However, the Indian rice exporters are expecting India to export only 8 million tons of rice in 2015 due to increased supplies from Thailand.

Philippines Plans to Increase Hybrid Rice Acreage to Achieve Rice Self-Sufficiency

Mar 02, 2015

The Philippines Department of Agriculture (DA) is planning to increase hybrid rice acreage in the country in order to achieve self-sufficiency in rice production, according to local sources.The DA is aiming to plant hybrid rice in around 72,563 hectares by 2014-15 dry season and to more than double the hybrid rice acreage to around 147,626 hectares by 2015-16 dry season. It has earmarked a total of about P1.3 billion (around $30.1 million) - around P362.815 million (around $8.2 million) for 2014-15 dry season, around P229.1 million (around $5.2 million) for 2015 wet season, around P738.13 million (around $16.7 million) for 2015-16 dry season - for the development of irrigation facilities as well as to subsidize hybrid rice production in the country.

The Philippines, which aimed to achieve rice self-sufficiency in rice production in 2013 had missed the target due to two devastating typhoons. The country's 2014 paddy rice output has increased about 2.87% to around 18.97 million tons (around 11.95 million tons, basis milled) from around 18.44 million tons (around 11.62 million tons, basis milled) in 2013, according to a report by the Philippine Statistics Authority (PSA).The PSA is estimating the Philippines to produce around 8.55 million tons of paddy rice in the first half-part (January - June) of 2015, up about 2.02% from around 8.38 million tons produced during the same period in 2014.

USDA estimates Philippines  MY 2014-15 (July - June) paddy rice production at around 19.365 million tons (around 12.2 million tons, basis milled), up about 3% from around 18.822 million tons (around 11.8 million tons, basis milled) produced in the previous year. It estimates Philippines 2014-15 milled rice imports at around 1.6 million tons, up about 10% from last year.

 Thailand Rice Sellers Lower Some of Their Quotes; Vietnam Rice Sellers Increase Some of Their Quotes

Mar 02, 2015

Thailand rice sellers lowered their quotes for parboiled rice by about $5 per ton to around $400 - $410 per ton today. Vietnam rice sellers increased their quotes for 25% broken rice by about $5 per ton to around $345 - $355 per ton. Other Asia rice sellers kept their quotes mostly unchanged.

5% Broken Rice

Thailand 5% rice is quoted at around $405 - $415 per ton, about $40 per ton premium on Vietnam 5% rice  shown at around $365 - $375 per ton. India 5% rice is quoted at around $390 - $400 per ton, about $55 per ton premium on Pakistan 5% rice quoted at around $335 - $345 per ton.

25% Broken Rice 

Thailand 25% rice is quoted at around $365 - $375 per ton, about $20 per ton premium on Vietnam 25% rice shown at around $345- $355 per ton, up about $5per ton from Friday. India 25% rice is quoted at around $355 - $365, about $50 per ton premium on Pakistan 25% rice quoted at around $305 - $315 per ton.

Parboiled Rice

Thailand parboiled rice is quoted at around $400 - $410 per ton, down about $5 per ton from Friday. India parboiled rice is quoted at around $385 - $395 per ton, on par with Pakistan parboiled rice quoted at around $385 - $395 per ton.

100% Broken Rice

Thailand broken rice, A1 Super, is quoted at around $320 - $330 per ton, about $10 per ton premium on Vietnam 100% broken rice shown at around $310 - $320 per ton.

India's 100% broken rice is shown at around $280 - $290 per ton,  about $5 per ton premium on Pakistan broken sortexed rice quoted at around $275 - $285 per ton.

Vietnam Begins Stockpiling of 2015 Winter-Spring Crop

Mar 02, 2015

Businesses have started purchasing and stockpiling of one million tons of the winter-spring crop in Vietnam's Mekong Delta on March 1, 2015and will continue till April 15, 2015, in line with the government's directions to control price falls during the harvest season, according to local sources. According to data from the General Statistics Office (GSO) in Vietnam, the Mekong Delta accounts for more than half of the country's total rice production. 

The government will assist the businesses with 100% soft loans for four months to buy rice under the program. This is the sixth consecutive year that the government of Vietnam has approved the rice stockpiling program during the harvest time of the country's largest winter-spring crop. The government usually approves the stockpiling plan in the Mekong Delta region during the harvest time of the winter-spring crop to stop price falls due to increasing supplies. However, the program had not been a success because of the reluctance of the businesses to procure rice. Most of them do not have adequate storage facilities, according to local sources. Even this year, there are doubts if the program would be successful in controlling price falls.

The Vietnam Food Association (VFA) has set targets for the businesses to procure about 250,000 tons in An Giang province and about 175,000 tons in Can Tho province. Targets in other provinces are relatively small according to local sources.Local rice prices have slightly increased by around VND200-300 per kilogram (around $9-$14 per ton) to around VND4,200-4,600 per kilogram (around $197-$215 per ton) from around VND4,000-4,300 per kilogram (around $187-$201 per ton) a fortnight ago due to the stockpiling program.

Last week, Vietnam won contract to supply 300,000 tons of rice to the Philippines. The contract is expected to push up the export prices of Vietnam rice, which have been dipping due to increased supplies and reduced export demand. Export prices of 5% broken rice, 15% broken rice and 25% broken rice varieties declined to around $370 per ton, $355 per ton and $345 per ton respectively from around $385 per ton, $370 per ton and $355 per ton from the beginning of this year.

Oryza Overnight Recap – Chicago Rough Rice Futures Begin the Week on a Positive Note as Other Grains Provide Price Support

Mar 02, 2015

Chicago rough rice futures for May delivery are currently listed 5.5 cents per cwt (about $1 per ton) higher at $10.800 per cwt (about $238 per ton) during early floor trading in Chicago. The other grains are seen moving higher this morning: soybeans are currently seen about 0.3% higher, wheat is listed about 0.1% higher and corn is currently noted about 0.1% higher.U.S. stocks traded mildly higher on Monday as investors digested Chinese economic news and awaited U.S. manufacturing data. ISM Manufacturing for February and construction spending data are due at 10 a.m. ET.

The People's Bank of China (PBOC) cut benchmark interest rates by 25 basis points to 5.35% on Saturday as deteriorating economic conditions forced the central bank to shorten the time gap between policy moves. In the United States, personal income increased of 0.3%, while personal spending fell 0.2% in January. Asian markets were trading higher Monday following the move to stimulate the world's second largest economy. In Europe, stocks turned lower with oil prices. Earlier, investors cheered data showing that deflation in the euro zone eased in February while the rate of unemployment fell in January.

The Dow Jones Industrial Average traded up 36 points, or 0.20%, to 18,168. The S&P 500 gained 2 points, or 0.10%, to 2,106, with consumer discretionary leading six sectors higher and energy the greatest laggard. The Nasdaq traded up 13 points, or 0.27%, to 4,976. Gold is currently trading about 0.1% higher, crude oil is seen trading about 1.1% lower,  and the U.S. dollar is currently trading about 0.1% lower at 8:00am Chicago time.

Oryza Afternoon Recap - Chicago Rough Rice Futures Pull Back from Session Highs as Bearish Grains Weigh on Prices

Mar 02, 2015

Chicago rough rice futures for May delivery settled 5 cents per cwt (about $1 per ton) higher at $10.795 per cwt (about $238 per ton). Rough rice futures showed impressive strength throughout the session, rallying to within 10 cents per cwt (about $2 per ton) of psychological resistance noted at $11.000 per cwt (about $243 per ton) during mid-day trading. However, during afternoon trading the market backed off of session highs as bearishness from a steep selloff in the other grains weighed on rice prices.

 Today’s market action is seen as a positive development and could trigger additional follow-through buying in coming sessions. The other grains came under renewed selling pressure and saw closing prices well off of session highs noted during morning trading; Soybeans closed about 1.7% lower at $10.1375 per bushel; wheat finished about 2.5% lower at $5.0000 per bushel, and corn finished the day about 1.3% lower at $3.8800 per bushel.U.S. stocks gained on Monday, with the Nasdaq briefly touching the psychologically important level of 5,000 and the Dow reached a new intraday record as investors cheered U.S. economic data and an interest rate cut in China.

The Nasdaq Composite last hit 5,000 during the tech bubble peak in March 2000. The index tumbled in the months following to land at 1,108.49 in October 2002. The Nasdaq has only closed above 5,000 twice, once on March 9, 2000, and once on March 10, 2000. The Dow Jones industrial average also rose more than 100 points to set a new intraday record of 18,260.31 following mostly encouraging U.S. economic reports. In economic news, the U.S. manufacturing sector had its best gains since October, according to Markit's final Manufacturing Purchasing Managers' Index that rose to 55.1 in February from 53.9 in January. ISM Manufacturing for February was 52.9, its slowest pace in 13 months. Construction spending fell 1.1% in January.

Personal income increased of 0.3%, while personal spending fell 0.2% in January. The People's Bank of China (PBOC) cut benchmark interest rates by 25 basis points to 5.35% on Saturday as deteriorating economic conditions forced the central bank to shorten the time gap between policy moves. The Dow Jones Industrial Average traded up 126 points, or 0.70%, to 18,259. The S&P 500 gained 8 points, or 0.40%, to 2,112, with consumer discretionary leading seven sectors higher and utilities the greatest laggard. The Nasdaq rose 27 points, or 0.56%, to 4,990. Gold is trading about 0.2% lower, crude oil is seen trading about 0.7% higher, and the U.S. dollar is seen trading about 0.1% higher at about  1:00pm Chicago time.Friday, there were 1,062 contracts traded, down from 1,908 contracts traded on Thursday. Open interest – the number of contracts outstanding – on Friday increased by 56 contracts to 9,264.

India Rice Exporters Foresee 20% Decline in 2015 Exports Due to Competition from Thailand

Mar 02, 2015

Indian rice exporters are expecting 2015 rice exports to decline by about 20% to around 8 million tons (about 5 million tons of non-basmati and about 3 million tons of basmati) from around 10 million tons in 2014 due to competition from cheaper supplies from Thailand, which is planning to sell about 10 million tons of rice this year from its stockpiles, according to Reuters.Some exporters expressed fear the government of Thailand may resort to lowering of prices to sell the old rice in its stockpiles.

 They reminded that the Thai government  sold 5% broken rice from old stocks at around $236-$378 per ton in the latest tender compared to the market price of around $405. On the other hand, export prices of India 5% rice currently stand at around $395 per ton.Reuters quoted some Thai exporters as saying that the value of old rice depreciates and s always lower than the new rice. Thailand is planning to auction about one million tons of rice on March 5, 2015. The government sold about 500,000 tons of rice of the one million tons auctioned earlier this year.

Some Indian exporters have expressed concern that lower exports would lead to higher stocks and ultimately affect prices.  India's basmati rice exports and prices have already been suffering due to a temporary ban in rice imports by Iran, India's major basmati rice importer.India’s rice stocks in the central pool as of February 1, 2014 stood at around 24.88 million tons (including a milled equivalent of about 17.43 million tons of paddy), about 80% more than the required buffer and strategic reserve norms of around 13.8 million tons for this time of the year, according to data from the Food Corporation of India (FCI).USDA estimates India to export around 8.7 million tons of rice in 2015, down about 14% from an estimated 10.15 million tons exported in 2014.

Ghana Receives $145 Million Grant from World Bank and USAID to Develop Rice Sector

Mar 02, 2015

The government of Ghana has received a grant of about $145 million - $100 million from World Bank and $45 million from the United States Agency for International Development - for the development and commercialization of the country's rice sector, according to local sources.The country's Food and Agriculture Minister was quoted as saying that the government would use the grant to develop the rice value chain in order to boost rice production and reduce imports. Speaking at the Ghana Commercial Agriculture Project (GCAP) Investor Conference in Tamale, he noted that the grant would be specifically used to implement the GCAP projects in the Accra Plains and the Savannah Accelerated Development Authority (SADA) zones.

The government is reportedly inviting investors to invest in commercial rice production in certain areas such as the Nasia-Nabogo valley in the Savelugu/Nanton Municipality of the Northern Region, for the next five years and is planning to support them with improved irrigation facilities. However, it wants the investors to integrate the entire rice value chain from smallholder farmers to the end customer for the next five years. The government also sought investors' support in the design and construction of irrigation facilities.Ghana produces only 30% of its annual consumption needs of around one million tons and imports the rest. The government is currently planning to increase rice production by about 20% per annum over the next four years to make the country self-sufficient in rice and subsequently ban rice imports.

According to the USDA, Ghana’s rice production is estimated at about 330,000 tons (milled basis) in MY 2014-15 (October - September). The U.S. agency expects Ghana to import 620,000 tons of rice during the year to meet consumption needs of around one million tons of rice.

What Does the 2015-16 Budget Mean for Indian Rice Sector?

Mar 01, 2015

India's rice sector can definitely cheer about few aspects such an extended rural credit limit, an introduction of National Unified Agricultural Market and special focus on micro-irrigation and watershed programs, highlighted in the 2015-16 Budget, but a  few of new measures, such as cutting down the Central Government's share in agriculture sector by about 10.4% to around Rs.28,050 crore (around $4.5 billion) from around Rs.31,322 crore (around $5 billion) last year and asking the State governments to fill in the gap is something that seems to be worrisome, according to some analysts.

The government's plan to increase the agriculture credit target by Rs.50,000 crore (around $8 billion) to around Rs.8.5 lakh crore (around $137 billion) for the 2015-16 fiscal year (April - March) is expected to enhance liquidity to a higher number of rice farmers. In order to support small and marginal farmers, the government has also allocated Rs.25,000 crore (around $4 billion) to the Rural Infrastructure Development Fund set up the National Bank for Agriculture and Rural Development (NABARD), Rs.15,000 (around $2.4 billion) towards long-term rural credit fund, Rs.45,000 crore (around $7.3 billion) for short-term cooperative rural credit refinance fund and Rs.15,000 crore (around $4 billion) for short-term Regional Rural Banks (RRB) refinance fund.

Currently farmers can avail crop loans up to Rs.3 lakh at an interest rate of 7%. However, the effective rate of interest to farmers who pay loans at right time comes to only 4%. The government proposed to support various projects such as ‘Paramparagat Krishi Vikas Yojana’ (scheme to support organic farming) and ‘Pradhanmantri Gram Sinchai Yojana’ (scheme to support micro-irrigation) to address the development of soil and water resources. It allocated Rs.5,300 crore to support micro-irrigation, watershed development and the  ‘Pradhan Mantri Krishi Sinchai Yojana’ (scheme to improve the quality of soil and quantity of water). These schemes are expected to help rice farmers in maintaining good soil health and deciding over the right use of fertilizers. In the 2014-15 budget, a soil health card was launched to help farmers improve soil fertility on a sustainable basis.

The proposal of the creation of a National Agriculture Market is expected to provide rice farmers with higher incomes. The government proposed to eventually increase irrigation area, improve irrigation facilities as well as promote agro-based industries to help farmers get higher farm incomes.On the subsidies front, the government proposed to revamp the existing food grain subsidy regime and increase the beneficiaries of direct transfer of benefits to about 10.3 crore from the existing 1 crore.However, the Central government has proposed to reduce its share under irrigation and other centrally sponsored schemes such as the Rashtriya Krishi Vikas Yojana (RKVY) and the National Food Security Mission (NFSM) by nearly Rs.5,500 crore (around $8.89 billion) and has asked state governments to fill in this gap through increased tax devolutions awarded to them recently. Analysts are doubtful how this transition works and whether it would provide desired results.

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3rd March (Tuesday), Daily Exclusive ORYZARice Newsletter by Riceplus Magazine 

2nd March (Monday),2015 Daily Global Rice Digital Newsletter by Riceplus Magazine

Indonesian government to control inflation optimally

Senin, 2 Maret 2015 16:57 WIB |

Jakarta (ANTARA News) - The Indonesian government will take various measures and efforts to control inflation in 2015, in accordance with its target plan."We will do anything to control inflation," Coordinating Minister for Economic Affairs Sofyan Djalil said here on Monday.According to Djalil, the government can control inflation because the price of rice is no longer a problem.

The current stock of rice is sufficient to meet demand till the next harvest season in March and April 2015.Djalil revealed that the State Logistics Agency (Bulog) will play a greater role towards this end.Earlier, he feared that the rising price of rice in various regions could lead to a sharp increase in inflation.To prevent this, the government has taken anticipatory measures related to the procurement of commodities."As the price of rice can affect inflation significantly, the government is determined to tackle the problem," he stated here on Tuesday.To curb the rising price of rice, he noted, the government has distributed rice to the poor (raskin)."We asked Bulog to conduct market operations," he affirmed.

Djalil acknowledged that the rising price of rice is a result of scarcity in its supply, although Bulogs stock of 1.4 million tons of rice could be sufficient to meet demand for the next few months.Therefore, the problem of delays in supply is expected to be resolved soon."We have distributed as much as 300 thousand tons of rice to the poor. Bulog must ensure the supply," the minister emphasized.

Furthermore, Djalil also pointed out that the government will take legal action against perpetrators found stocking and reselling rice illegally.Although the price of rice has increased, that of other food commodities has not. This raised suspicion that the surge in the price of rice was caused by traders hoarding stocks of the commodity.Moreover, the Central Statistics Agency (BPS) remarked that the rising price of staple foods such as rice, eggs, and other commodities can increase inflation pressure in February 2015.

"The prices of rice and other commodities are still high. If we look at indicators, we will find that the price of rice is still high. It (inflation) may increase in February," Deputy Head of Distribution and Service Statistics of the BPS, Sasmito Hadi Wibowo, said here on Monday. According to Wibowo, the harvest season will boost production and supply, which will, in turn, lower the price of rice.In addition, Social Affairs Minister Khofifah Indar Parawansa noted that the distribution of raskin can reduce rice prices by up to 60 percent."The timely and precise distribution of raskin can reduce rice prices by 50 to 60 percent," the minister affirmed here on Sunday.

Parawansa admitted that the governments raskin program had distributed only 45 percent of its total target of national rice distribution due to late supply in some regions.The minister pointed out that rice stock in all Bulogs warehouses are safe and adequate, and they also have the budget. So there is no longer any reason for Bulog to not distribute raskin."The fluctuating prices of rice can be offset by the distribution of raskin," she stated.According to the minister, the budget allocated for the raskin program was Rp18.8 trillion for 15.5 million targeted households, with 15 kilograms of rice per month for each household.

UU.A063/INE

http://www.antaranews.com/en/news/97949/indonesian-government-to-control-inflation-optimally

High-Temperature Tolerance Enhancement Successful On Tomatoes And Rice

Kathleen Lees k.lees@scienceworldreport.com

First Posted: Mar 02, 2015 12:15 PM EST

High-Temperature Tolerance Enhancement Successful On Tomatoes And Rice (Photo : Flickr/Andry Wright)

Researchers at Kobe University Graduate School of Agricultural Science Functional Phytochemistry Laboratory in Japan have identified for the first time that the (E)-2-hexenal, otherwise known as a plant-derived chemical substance that can induce a plant's stress response from high temperatures.Plants have high-temperature resistance that's switched off during normal conditions. During the study, researchers hypothesized that if certain chemical signals in the plants that switch the functions on could be identified, then the plants' stress response to high temperatures could be controlled artificially.

Previous research has shown that some plants' high-temperature resistance function works to switch on when oxidative treatment is applied. Researchers believed that a chemical compound that's generated through oxidation of fatty acids in plants by reactive oxygen triggers the switch. Through their experiments, the researchers identified that the (E)-2-hexenal compoundacts as a signal chemical.

Researchers examined the effects of the (E)-2-hexenal at cooperative farms and found their use effective on cucumbers, rice and tomatoes."Acquired thermotolerance in plants in a non-genetically modified way. It will be easier for this method to find acceptance in Japan where consumers are less accepting of genetically-modified crops," the study stated, according to a news release. "Since the (E)-2-hexenal is a plant-derived chemical substance, its use as a spray over farm produce will face little resistance from consumers."

Payment continues to be a problem in the rice industry

MARCH 2, 2015 · BY STAFF WRITER · 

Dear Editor,

Essequibo rice farmers staged yet another protest on the main public road, demanding payment for the last paddy crop which was sold to rice millers. The payment areas most affected are the Essequibo Islands, West Demerara and Regions 5 and 6. Harvesting of the present crop has commenced in Region Two, with some 31,500 acres expected to be harvested. There will be much difficulty in payment because of deliberate neglect by millers.Under the current system millers procure paddy from farmers below the minimum support price. This system is leading to increased stocks in the warehouses of the millers. The government needs to intervene from time to time and ensure that farmers are paid on time. Government could also introduce online payments to make the transactions more transparent, as farmers have to wait four months to get their dues.

The payments for the paddy are directly deposited in the farmers’ accounts.In some instances farmers are selling their paddy to rice millers at a lower price to avoid the long wait. Paddy payment for farmers in Guyana has witnessed a steady decline since the ’90s. The sharp fall is due to problems with the local and international marketing of our rice, as well as the quality of rice produced by some millers, and it has serious implications for Guyana’s economic development. Over the past 5 years, however, there have been no signs of a revival in terms of prompt payment and rice quality.Today rice occupies the first position among Guyana’s agricultural crops with respect to foreign exchange. First, labour costs are relatively high, and at the same time the expenses involved in purchasing agricultural inputs are a heavy burden without payments being made on time.

Typically, farmers hire machinery from private sources, since not all of them own combine harvesters and tractors with a harrow plough. Given the high costs of cultivation and reaping and the modest yield levels, the price of paddy becomes an important determinant of profitability.The minimum price for a bag of paddy was $1,500 last crop, and the maximum was $3,000 – a drop of $1,000 on each grade. However, even $4,000 a bag is not remunerative enough for a farmer who is primarily dependent on rice farming. Given government’s absence from effective participation in the rice industry, rice farmers are left at the mercy of private dealers, mainly a group of modern rice millers.

Yours faithfully,
Mohamed Khan

Arkansas rice farmers, others get deadline from USDA

Posted: Mar 01, 2015 12:25 PM PSTUpdated: Mar 01, 2015 12:25 PM PST

 

 LITTLE ROCK, Ark. (AP) - The U.S. Agriculture Secretary has announced that Arkansas producers would get one more month to update their farm information for new commodity safety-net programs established in the 2014 farm bill.The February 27 deadline is now extended to March 31.Arkansas Rice Farmers Chairman Dow Brantley says the extra month will help more producers submit the most accurate information on their yield histories and base acreage. Brantley also adds this will be the only deadline extension, and called on farmers who had been waiting to submit their updates as soon as possible.The new programs are called Agricultural Risk Coverage and Price Loss Coverage. Producers needing more information on the programs can contact their local Farm Service Agency office or go to www.fsa.usda.gov/arc-plc .
(Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

2/28/2015 4:44:49 PM (GMT -6:00)

http://www.katv.com/story/28232467/arkansas-rice-farmers-others-get-deadline-from-usda

S.Korea buys 44,000 T of rice for May

Mon Mar 2, 2015 1:49am GMT

SEOUL, March 2 (Reuters) - South Korea's Agro-Fisheries &

Food bought a total of 44,000 tonnes of non-glutinous brown rice

for May 31 arrival via tenders closed on Feb. 25, according to

the agency's website (www.at.or.kr).

    Details of the purchase are as follows:

    TONNES   GRAIN TYPE     SUPPLIER              ORIGIN   PRICE

    22,000   Medium Brown   Seomok Trading Corp   U.S.     $856

    22,000   Short Brown    Daewoo Int'l Corp     China    $870

 (Reporting By Brian Kim; Editing by Sunil Nair)

http://af.reuters.com/article/commoditiesNews/idAFL4N0W418T20150302

Palay farmgate price continues to fall

By Czeriza Valencia (The Philippine Star) | Updated March 1, 2015 - 12:00am

MANILA, Philippines - Farmgate price of palay (unmilled rice) continued to fall in the second and third week of February, according to the Philippine Statistics Authority (PSA).From the monitoring period of Feb. 11 to 17, the average farmgate price of palay fell 0.47 percent to P17.87 per kilogram from the previous week. Year-on-year, this was lower by 5.90 percent.This translated to price reductions in the wholesale and retain prices of well-milled rice.The average wholesale prices of well-milled rice at P38.90 per kilogram was 0.32 percent below the previous week’s quotation. Year-on-year, this was higher by 3.29 percent.The average retail price of well-milled rice fell to P41.97 per kilogram week-on-week. Year-on-year, however, this was higher by 4.54 percent.The average wholesale and retail prices of regular-milled rice also declined.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1

Wholesale prices of regular milled rice fell 0.21 percent to P35.74 per kilogram on the average from the previous week. From the previous year, however, this was higher by 2.24 percent.The average retail price of regular milled rice fell 0.24 percent to P38.38 per kilogram. Year-on-year, this was higher by 4.14 percent.The National Food Authority (NFA) announced early this month that it would intensify palay procurement this year as the farmgate prices of unmilled rice have begun falling to P14 to P16 per kilogram in several areas.NFA administrator Renan Dalisay said “massive” procurements would be conducted in Iloilo, Palawan, Sultan Kudarat, Antique and Isabela provinces.

http://www.philstar.com:8080/business/2015/03/01/1428687/palay-farmgate-price-continues-fall

NFA having difficulty buying palay

by Freddie C. Velez
March 1, 2015

Bocaue, Bulacan — Now that the harvest season of “palay” is peaking in most rice-producing provinces in Luzon, traders have affected the prices of the golden grain that the National Food Authority (NFA) cannot sustain to procurements for its buffer stock.In a recent random check on palay prices inside the Intercity Industrial Estate here, a major rice trading center of the country, the regular wholesale prices ranges halfway of P19 to P22 per kilo, reliant on its qualities and varieties.With these aspects, sources said, the NFA cannot compete with the commercial grain traders in acquiring palay stocks for their buffer stock requirements.Jun Cid, a palay classifier, said the prices have already decrease to an average of R18 per kilo in the last week of January, just as the palay harvest season is about to begin in major rice producing provinces of Northern Luzon.

Last days of January this year, Simeon Sioson, president of the Federation of Central Luzon Farmers Cooperative, revealed alleged rice smuggling in Mindanao that was perceived to have pulled down the prices of locally-harvested palay.“The smuggled rice finds its way to local markets in Metro Manila and Central Luzon that has caused local palay prices to go down even if the peak rice harvest season has already ended,” Sioson said.Sioson also mentioned that palay prices in the main crop harvest last November reached R25 per kilo and with the harvest season about to begin has dipped to an average price of P18 per kilo in at the end of January.

http://www.mb.com.ph/nfa-having-difficulty-buying-palay/

Mid-South Farm & Gin Show Draws Record Crowd

  Rice wins every time

MEMPHIS, TN -- The USA Rice Federation attended the 63rd annual Mid-South Farm & Gin Show here over the weekend.  Staff provided attendees with information about the U.S. rice industry and activities conducted by USA Rice.   Show officials reported record attendance including rice producers from Arkansas, Louisiana, Mississippi, and Missouri who stopped by the USA Rice booth."USA Rice's presence at the show gives staff an opportunity to meet with rice producers as well as educate the general public about rice.  We talk with more than 1,000 individuals and families each year and always enjoy making connections," said Randy Jemison, director of field services in Louisiana.

In addition to exhibit booths and activities, the event includes agriculture updates and outlook presentations.  Carl Brothers, senior vice president of Riceland Foods, was on-hand to give a market update for rice.The Mid-South Farm & Gin Show is one of the largest farm shows in the region with attendees from all of the surrounding states in the Mid-South and Southeast.  Four hundred companies and organizations from 40 states and 15 countries took part in this year's show. USA Rice received informational and product donations from Dainty Foods, Producers Rice Mill, RiceTec, Riviana, and The Wright Group used as giveaways at its booth.

 Contact:  Amy Doane (703) 236-1454

Rice Leadership Visits Cuban Interest Section    

As customary in their final session in Washington DC, the newly graduated Rice Leadership Class visited the Cuban Interest Section last week where they met with the Deputy Chief Juan Lamigueiro.  They were joined by USA Rice President & CEO Betsy Ward, USA Rice staffers Marvin Lehrer and Chuck Wilson, and Terry Harris with Riceland Foods.From left: John Compton, Wes Long, Rodd Dedman, Juan Lamigueiro, Marvin Lehrer, Betsy Ward, Joel Stevens, Seth Fiack, Steven Schuler,

Mark Isbell, Chuck Wilson, and Terry Harris.

CME Group/Closing Rough Rice Futures   

CME Group (Prelim):  Closing Rough Rice Futures for March 2 Month Price Net Change March 2015 $10.535 + $0.065 May 2015 $10.795 + $0.050 July 2015 $11.045 + $0.060 September 2015 $11.140 + $0.080 November 2015 $11.305 + $0.050 January 2016 $11.435 + $0.090 March 2016 $11.435 + $0.090

 

Rice prices in Jakarta begin to go down

Senin, 2 Maret 2015 22:08 WIB

Jakarta (ANTARA News) - The prices of rice in Jakarta, especially at the Mayestik and Kebayoran Lama markets, have started declining by an average Rp200 per kilogram, according to traders."The price of rice here started to go down since yesterday (Sunday, March 1)," Fauzi, a trader at the Mayestik market, said here on Monday.Based on Antaras observation, the rice types whose prices began to decline at the Mayestik market included the IR I type (64), which declined by Rp200 per kilogram from Rp10,000 to Rp9,800 per kilogram; IR II (64) that fell from Rp9,500 to Rp9,000 per kilogram; and IR III (64) that dropped from Rp9,000 to Rp8,800 per kilogram.

"Although the price fall is small, I hope it would continue until it reaches the normal level and consumers are not burdened anymore," Fauzi added.He noted that the price had possibly gone down due to a decrease in the price of rice at the Cipinang wholesale rice market."Market operations conducted by state-owned logistics board Bulog must have possibly played a role in bringing down the price," he added.The same also happened at the Kebayoran Lama market in South Jakarta where the prices of rice begun to go down since Sunday. The average decrease in the price of rice here is some Rp200 per kilogram."The average decrease is not too big, it is only Rp200 per kilogram," remarked Johan, another trader at the Kabayoran Lama market.The types of rice that saw a fall in their prices included IR I type (64) whose price dropped from Rp9,000 to Rp9,600 per kilogram.

The price of IR II (64) rice dropped from Rp9,400 to Rp9,200 and of IR III (64) declined from Rp9,000 to Rp8,800.President Jokowi earlier inspected the rice warehouses of Bulog in Kelapang Gading, North Jakarta, where he launched the rice for the poor (Raskin) program and some market operations.The country has 1.4 million tons of rice stock, which will be adequate until March-April when harvest season starts, the President revealed on the occasion."You should not think we are short of rice stocks. We will always have enough stocks and we will release it no matter how much will be the requirement," he remarked on Wednesday (Feb 25). Jokowi also promised to conduct market operations and distribute some 300 thousand tons of rice in the market.

http://www.antaranews.com/en/news/97951/rice-prices-in-jakarta-begin-to-go-down

Businesses begin stockpiling rice in Mekong Delta

MARCH 2, 2015 BY SAIGON-GPDAILY LEAVE A COMMENT

Businesses have begun purchasing one million tons of winter spring rice in the Mekong Delta on March 1 when the Prime Minister’s rice stockpiling decision took effect.

Hau Giang farmers reap winter spring rice (Photo: SGGP)

The Government has assisted businesses with 100 percent of bank loan interest rate in four months to buy rice under the program from March 1 until April 15.Rice prices were in down trend near the lunar New Year Festival but have a bit increased recently owning to the program.Specifically, a kilogram of fresh rice fetches VND4,200-4,600 a kilogram, up VND200-300 over it before Tet.

Traders have boosted purchase in Can Tho, Hau Giang, Dong Thap, and Vinh Long for the last few days.Farmer Ngo Van Kha from Vi Thanh District, Hau Giang province said that the new prices are acceptable.The busiest purchase is along the 40 kilometer road linking Can Tho and Vi Thanh, where nearly 100 combined harvesters have continuously operated in fields.Leaders from Can Tho, Dong Thap, An Giang, Tien Giang, Long An and Can Tho say that this year the rice stockpiling program has been launched timely as farmers are entering peak harvest season.Vietnam Food Association (VFA) has allocated rice volume for businesses to buy in each province. The largest purchase will be 250,000 tons in An Giang, followed by Can Tho with 175,000 tons and Bac Lieu with 8,000 tons. The lowest volume is in Ca Mau with 2,400 tons.

2015 is the sixth year in a row VFA carries out the rice stockpiling program for the yearly largest winter spring crop in the Mekong Delta.

Rice bags are transported to warehouse for stockpiling (Photo: SGGP)

The program is a Government’s intervention measure in the rice market to prevent a price drop during peak harvest time and ensurefarmers’ profit, Deputy Minister of Agriculture and Rural Development Vu Van Tam said at a meeting on the program’s implementation in the delta yesterday.In addition to the program, the Southern Food Corporation has won a bid to export 300,000 tons of rice to the Philippines, creating a better tendency in the rice market, he added.However, Deputy Chairman of VFA Huynh The Nang said that tendency would not prolong because the Mekong Delta would have up to five million tons of commercial rice by the second quarter. The number includes iventory rice from last year and newly harvested rice.

http://www.talkvietnam.com/2015/03/businesses-begin-stockpiling-rice-in-mekong-delta/

NFA secures additional rice imports from Thailand, Vietnam

by Madelaine B. Miraflor

February 28, 2015

The Philippines has secured rice imports from Thailand and Vietnam after the two countries presented competitive offers in a state-to-state deal that commenced on Friday, which involves the purchase of a total of 500,000 metric tons (MT) of well-milled white rice supply.National Food Authority (NFA) is importing 500,000 MT of rice to cater to the mandatory buffer stocking requirement for the lean season that starts in July.

This requirement would be purchased through government-to-government (G2G) procurement with countries that have procurement agreements with the Philippines such as Thailand, Vietnam, and Cambodia.For this bidding, which is the first planned rice importation for this year, only Thailand and Vietnam decided to participate.For the 15-percent brokens well-milled long grain white rice, Thailand offered a selling price of $441 per MT for a total supply of 100,000 MT against a required minimum supply offer of 250,000 MT. The total offer price stood at USD44.1 million.With an offer price that stood at USD110.62 million, Vietnam offered $442.50 per MT for a total supply of 250,000 MT.

For this, the winning bidder is supposedly Thailand for its offer price, which is lower, but since it could not supply the entire supply needed by the Philippine government, Vietnam later on agreed to match Thailand’s price offer.In its matched offer, Vietnam agreed to supply the remaining 150,000 MT for a price of P$441 per MT, with a total offer price of USD66.1 million.For the 25-percent brokens well-milled long grain white rice, Thailand proposed to supply 100,000 MT for USD421 per MT against the total supply needed by the government, which is also at 250,000 MT. The total price stood at USD42.1 million.

Vietnam, on the other hand, originally offered to supply the entire 250,000 MT but since it priced it at a higher cost, it just decided to match the offer of Thailand, agreeing to supply the remaining 150,000 MT at a price of USD353 per MT instead. In total, Vietnam will earn USD63.15 million from the contract.The term of references orders the delivery of all the well-milled white rice in two tranches from March to April.

http://www.mb.com.ph/nfa-secures-additional-rice-imports-from-thailand-vietnam/

Thailand's rice basket shrivels amid drought of long-term policy

Achara Deboonme

achara_d@nationgroup.com

Twitter@Biz_TheNation March 3, 2015 1:00 am

Thailand's rice basket shrivels amid drought of long-term policy The tyranny of the hot season has returned, as the temperature climbs towards a sizzling 40 degrees.Office workers are complaining about the steamy commute to air-conditioned workplaces. They should spare a thought for those who have to work under the blazing sun, including farmers, who are watching their crops whither for lack of water - though they won't fetch much anyway at current prices.Official statistics show that the country's major reservoirs have dropped to 57-60 per cent capacity - near the levels of 2005 when one of Thailand's worst-ever droughts affected 71 provinces and caused nearly Bt8 billion in damage.

This year, the Agriculture and Agricultural Cooperatives Ministry estimates the drought will affect 16.17 million rai of farmland in 58 provinces, including 12.61 million rai in the Northeast, the region least covered by the national irrigation system.Over half of our working-age population is in the agricultural sector, yet for decades the irrigation system has expanded at a snail's pace.The latest figures show that in 2012, only 29.57 million rai, or 9.22 per cent of Thailand's landmass, was irrigated.That represents only a slight increase on the 28.35 million rai in 2009.That year, as the Royal Irrigation Department celebrated its 107th anniversary, its chief unveiled a plan to expand the irrigated area by 6 million rai by 2020.

He explained that Thailand's reservoirs had a combined capacity of 52,741 million cubic metres - only 70 per cent of the annual demand of 73,788 million m3. Without new investment, the shortfall could hit 34,183 million m3 in 2019.The root of this longstanding problem lies in the fact that policymakers treat irrigation as a political tool, channelling budgets to temporary projects that only address short-term hurdles. No government has ever embarked on a grand-scale project to tackle long-term problems. Irrigation plans were included in the Yingluck government's Bt350 billion water-management plan, but it was the 2011 flood that sparked its creation, not drought.The junta scrapped that plan and drew up a new strategy, expected to cost about Bt900 billion over 10 years.

However, last month the Cabinet refused to green-light the comprehensive strategy, approving only some of its projects for this fiscal year and keeping the budget to Bt50 billion. Prime Minister Prayut Chan-o-cha admitted that the limited budget available meant only urgent projects could be carried out this year, though the 10-year strategy remained in place.The Cabinet resolution received wide media coverage, but not so the attacks from the Engineering Institute of Thailand (EIT), which is adamant that the strategy and the investment for this year do not meet the national interest.The EIT's academic network criticised the strategy for ignoring public views and failing to address the root problems. Warning that the plan carried more negative consequences than the Yingluck government's version, it vowed not to rubber stamp the project.

Pramote Maiklad, former chief of the Royal Irrigation Department, remarked that "The NCPO's version is not a real strategic plan, but rather the annual budget allocation plan."With the global economy still fragile thanks to the slowdown in China and difficulties in the euro zone and Japan, Thailand's exports are expected to remain sluggish. TMB Analytics anticipates a 1 per cent growth rate this year, following two years of contraction. In this scenario, economists agree that domestic demand should play a bigger role in driving the economy. Yet, they are also concerned about lower crop prices, which will reduce farmers' income. Couple that with Thailand's high household debt of 85 per cent of GDP, and there are doubts about how much farmers and consumers in general can spend.

As part of its economic stimulation programme, the government plans cash handouts for farmers.While that move is welcomed by Federation of Thai Industries chairman Supant Mongkolsuthree, he said last week that what are truly needed are mid- to long-term solutions to help farmers lift productivity and lower production costs.

I guess that he might not like the Commerce Ministry's Blue Flag project either. The project, which sells products at ad-hoc markets at about 30 per cent below their market price, reaches relatively few people but costs over Bt100 million annually. It will require a budget of Bt241 million this fiscal year.If farmers' income were to climb in a sustainable way, they would be able to spend more and perhaps also save more. But as things stand, their finances are at the mercy of capricious Mother Nature.

And no matter who is in power, their problems remain neglected.Thailand can no longer afford to handle problems as they arise. We need to start thinking "out of the box" and forge long-term strategies.Thai nationalists have enjoyed success in guarding our tiny petroleum reserves. They should also push for a reform agenda to deal with drought. If the problems aren't addressed in a sustainable and comprehensive way, millions of our farmers will likely need government support when they get old and can't work in the fields. Then, the moaning from taxpayers will only get louder.

http://www.nationmultimedia.com/opinion/Thailands-rice-basket-shrivels-amid-drought-of-lon-30255170.html

Indian rice exports to plunge as Thailand offloads stocks

A Thai farmer loads paddy onto a truck.

MUMBAI/BANGKOK, MARCH 2:  

India's rice exports will struggle to compete with cheaper cargoes from No.1 seller Thailand in 2015 as Bangkok looks to offload grain from its huge state stockpiles, industry officials and traders said. B.V. Krishna Rao, managing director of leading Indian rice shipper Pattabhi Agro Foods Pvt Ltd, said the country's exports could plunge by a fifth this year to 8 million tonnes, with some other industry officials in the country making similar warnings.

Lower exports will leave more rice in Indian hands, piling pressure on already-bulging storage and raising the spectre of grain getting damaged in temporary silos.But competition among the world's top two exporters will drag further on prices that have fallen 5 per cent since the start of October. That's good news for African nations like Nigeria and Senegal that are typically major buyers of Asian rice."The Thai government's efforts to sell rice from its own warehouses has been putting pressure on global prices and limiting Indian exports," said Rao.Thailand will open a tender to sell around 1 million tonnes of rice in March, as it tries to shift over 17 million tonnes of rice built up under a controversial subsidy scheme. It aims to sell 10 million tonnes in 2015 and 7 million next year.Indian exporters can compete with private Thai traders, but not with the government as it can cut prices to generate demand for old stock, said M. Adishankar, executive director at Sri Lalitha, a major rice exporter in southern India.

In the latest tender, Thailand sold 5-percent broken rice from old stocks for $236 to $378 per tonne, although the market price for new crops was around $415. India has recently offered the same grade at around $400."The government's rice is old and has been stored for a long time so its value depreciates accordingly ... there is always a price gap between new rice and old rice," said an official at the Thai Rice Exporters Association, who declined to be identified.

India, which lost the top rice exporter spot in 2014, could see its shipments of non-basmati or common grade rice fall by nearly a quarter to 5 million tonnes in 2015, while exports of aromatic basmati could drop over 14 percent to 3 million tonnes, Rao said.Basmati sales have also been hit after top buyer Iran suspended imports late last year to support local farmers, although one exporter expected shipments to restart in April.Rice inventories at India's state-run agencies had jumped to around 25 million tonnes by Feb. 1, nearly double the targeted level, government data shows.

(This article was published on March 2, 2015)

http://www.thehindubusinessline.com/industry-and-economy/agri-biz/indian-rice-exports-to-plunge-as-thailand-offloads-stocks/article6951066.ece

Rice cultivation banned on left bank of Indus
Sunday, March 01, 2015 

Karachi

The Sindh government announced on Saturday that it was banning rice cultivation in the command areas of the canals lying on the left bank of the Indus River to control water-logging and salinity.This decision was made at a meeting presided over by Chief Minister Qaim Ali Shah. It was attended by National Assembly opposition leader Khursheed Shah, MNA Syed Asghar Shah, MPAs Sardar Imdad Ali Pitafi, Syed Murad Ali Shah and Syed Sarfaraz Shah, Board of Revenue senior member Shahid Gulzar Shaikh, the irrigation secretary and the Sukkur, Mirpurkhas and Shaheed Benazirabad commissioners and deputy commissioners.

The chief minister said the perennial canals at Guddu, Sukkur and Kotri barrages had a lengthy command area of more than 150 to 350 kilometres and water shortage persisted at their tail-end.“These canals are meant for dry kharif crops. But rice cultivation in the command areas of these canals had further aggravated the water shortage because paddy crop required a lot of water,” he added.He added that because of rice cultivation, the sub-soil water level had elevated and caused water-logging and salinity to dangerous proportions, destroying the entire green belt on the left bank of the Indus River.Khursheed Shah said there was a dire need for changing the crop pattern. Otherwise, he added, the entire left bank strip of the province would turn into lakes of saline water.MPA Sardar Ahmed Ali Pitafi said climatically Sindh had the distinction to cultivate early kharif crops but the irrigation department released water in the canals and distributaries very late.

 Therefore, he added, growers were left with no choice but to grow rice. “Rice cultivation is easy and it does not require hard labour and extra care. That is why the growers prefer to cultivate rice,” he noted.MNA Syed Sarfraz Shah and MPAs Syed Murad Ali Shah and Nasir Shah, who own farms on the left bank command areas, said water-logging had destroyed fruit orchards in the area.The chief minister said the problems of the command areas of the perennial channels, especially the Ghotki Feeder Canal, the Rohri Canal, the Nara Canal, the Khairpur Feeder East and the Khairpur Feeder West, had to be addressed on an urgent basis.“The Sindh government has spent millions on the installation, maintenance and operation of tube-wells to control the water table,” he added.

We will pay more attention to rice value chain" – Minister

Government would pay more attention to the development of the rice value chain for mass production of rice to reduce its imports, according to Mr. Fiifi Kwetey, Minister of Food and Agriculture.He said the Ministry of Food and Agriculture was fully behind initiatives that aimed at developing the rice value chain and assured that all investors and communities involved in developing rice fields, especially the Nasia-Nabogo valley, would be given a fair deal.Mr Kwetey said this in a speech read on his behalf during the Ghana Commercial Agriculture Project (GCAP) Investor Conference in Tamale.The Investor Conference organized by the GCAP was meant to introduce to participants, the Nasia-Nabogo valley rain-fed rice production and opportunities available to whet investor interest in the project.

The government of Ghana secured a $100 million credit from the World Bank and a grant of $45 million from the USAID to implement the GCAP projects mainly in the Accra Plains and the Savannah Accelerated Development Authority (SADA) zones for crop production scheduled to be completed over a five-year period.Mr Kwetey said the investor conference marked a milestone in the work of GCAP, which had the opportunity to outdoor an innovative approach by establishing an Agricultural Growth Pole (AGP) in the SADA zone.He said adoption of the growth pole strategy had the potential for accelerating economic growth and support social progress through efficient utilization of natural and agricultural resources in line with the potentials of SADA.He said now that GCAP had selected one of the agricultural growth poles for attention there was the need for government to support to ensure that it served as development corridor that remained focused for developing the rice value chain.

Mr Alabi Bortey, the Project Co-ordinator of GCAP said, GCAP was currently seeking investors to invest in commercial agriculture business in rice production on the 10,000 hectare arable land at the Nasia-Nabogo valley in the Savelugu/Nanton Municipality of the Northern Region.

He said strong emphasis would be on the involvement of farmers from neighbouring communities within the Nasia-Nabogo valley and assured investors who wish to cultivate rice within the GCAP demarcated area in the Nasia-Nabogo valley area of support through a matching grant scheme based on eligibility criteria.Mr Bortey said GCAP would support investors with the construction of water retention structures to ensure availability of water throughout the cropping season and that the investors would be expected to integrate smallholder farmers into the inputs, outputs and farm equipment services on a continual basis for at least five years.He announced that the project was also inviting contractors wishing to bid for the design and construction of the irrigation infrastructure to be constructed and called on all to support the project to succeed, saying, “Let us together create an environment that would increase rice production and productivity”.

http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=348574

Rice exports to plunge as Thailand offloads grain from its stockpiles

By Reuters | 2 Mar, 2015, 12.15PM IST

16

"The Thai govt's efforts to sell rice from its own warehouses has been putting pressure on global prices and limiting Indian exports," said Rao.

ET SPECIAL:

MUMBAI/BANGKOK: India's rice exports will struggle to compete with cheaper cargoes from No.1 seller Thailand in 2015 as Bangkok looks to offload grain from its huge state stockpiles, industry officials and traders said. B.V. Krishna Rao, managing director of leading Indian rice shipper Pattabhi Agro Foods Pvt Ltd, said the country's exports could plunge by a fifth this year to 8 million tonnes, with some other industry officials in the country making similar warnings. Lower exports will leave more rice in Indian hands, piling pressure on already-bulging storage and raising the spectre of grain getting damaged in temporary silos.

But competition among the world's top two exporters will drag further on prices that have fallen 5 percent since the start of October. That's good news for African nations like Nigeria and Senegal that are typically major buyers of Asian rice. "The Thai government's efforts to sell rice from its own warehouses has been putting pressure on global prices and limiting Indian exports," said Rao. Thailand will open a tender to sell around 1 million tonnes of rice in March, as it tries to shift over 17 million tonnes of rice built up under a controversial subsidy scheme. It aims to sell 10 million tonnes in 2015 and 7 million next year.
Indian exporters can compete with private Thai traders, but not with the government as it can cut prices to generate demand for old stock, said M. Adishankar, executive director at Sri Lalitha, a major rice exporter in southern India.

In the latest tender, Thailand sold 5-percent broken rice from old stocks for $236 to $378 per tonne, although the market price for new crops was around $415. India has recently offered the same grade at around $400. "The government's rice is old and has been stored for a long time so its value depreciates accordingly ... there is always a price gap between new rice and old rice," said an official at the Thai Rice Exporters Association, who declined to be identified. India, which lost the top rice exporter spot in 2014, could see its shipments of non-basmati or common grade rice fall by nearly a quarter to 5 million tonnes in 2015, while exports of aromatic basmati could drop over 14 percent to 3 million tonnes, Rao said. Basmati sales have also been hit after top buyer Iran suspended imports late last year to support local farmers, although one exporter expected shipments to restart in April. Rice inventories at India's state-run agencies had jumped to around 25 million tonnes by Feb. 1, nearly double the targeted level, government data shows. 

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2ndMarch (Monday),2015 Daily Global Rice Digital Newsletter by Riceplus Magazine