Indian Finance Minister
Enhances Agricultural Credit in 2016-17 Union Budget
Feb 29, 2016
The Indian Finance Minister, who presented the Union Budget
2016-17 today, has enhanced the agricultural credit to Rs.9 lakh crore (around
$131 billion) from Rs.8.5 lakh crore ($124 billion) last year.
A total of Rs.35,984 crore (around $5.2 billion) is allotted
for agriculture in the 2016-17 budget, he said. The Minister also announced
that the government aims to cover all the 140 million farm holdings in the
country under the soil health card scheme by March 2017. The soil health card
scheme was introduced in last budget. Under the scheme, the government will
advise farmers on the usage of inputs like fertilizers for different types of
soils and for different types of crops after testing the soil in various soil
testing labs across the country.
He also noted that about 200,000 hectares would be brought
under organic farming over a period of three years. He stated that Rs.6,000
crore (around $874 million) would be allocated for sustainable management of
ground water resources.
The Minister announced that Rs.15,000 crore ($219 million)
would be allocated towards interest subvention to lower burden for farmers.
He also announced that a Unified Agricultural Marketing
ePlatform would be provided for wholesale markets.
Government of Rwanda May Stop Rice Imports by 2018 to Reduce Trade Deficit
Feb 29, 2016
The government of
Rwanda may stop importing rice by 2018 as part of its efforts to reduce the
bulging trade deficit, according to local sources. Rwanda imported around $37 million
worth rice in 2015 compared to around $31.1 million in 2014. The country 's
trade deficit stood at around $1,761.3 million in 2015. Higher deficit is
attributed to a fall in the country’s exports due to falling global prices.
The State Minister for
Agriculture reportedly told the Parliament recently that the Agriculture
Ministry has drafted a new plan aimed at increasing the local rice production,
enough to meet all the country's needs by 2018.
The measures
reportedly include expanding the rice planting in marshland areas as well as
allocating more land to private investors who are interested in venturing into
commercial rice growing activities. Currently, only 28,500 hectares of
marshland areas are used for rice cultivation, while the country has a total
capacity of 66,094 hectares.
"The new plan
involves working with co-operatives and easing access to farm inputs to boost
production. The government is currently trying to address the challenges in
rice production including limited Post-harvest infrastructures, insufficient
amount of good quality seeds due to absence of efficient public seed production
and distribution," said the Agriculture Ministry's Permanent Secretary.
The Permanent
Secretary in the Ministry of Trade and Industry added that “streamlining the
production and supply value chains will help increase local production."
The government of
Rwanda is aiming to achieve rice self-sufficiency by increasing yields to 7
tons per hectares by 2018. In 2014, the Rwanda Agriculture Board (RAB) reportedly
unveiled an initiative that sought to increase rice production, ensure quality
along the value chain, and ease access to agro-inputs.
Rwanda imports about
40% of its annual rice demand of arbout 98,000 tons, according to the USDA.
Cambodia Lacks Comprehensive Rice Export Policy, Say Exporters
Feb 29, 2016
Cambodian rice
exporters have expressed concerned that Cambodia lacks a comprehensive rice
export policy, which can aid in boosting production and exports, according to
the Phnompenh Post.
They noted that
despite winning the world's best rice competition for three consecutive years,
the Cambodian rice industry continues to face challenges such as access to
finance, as well as inadequate irrigation, milling and storage facilities.
“Relevant ministries
such as the Ministry of Economy and Finance together with the Ministry of
Agriculture and CRF [Cambodian Rice Federation] have yet to come up with a
thorough strategy design, accompanying policies and policy implementation
framework that can be rolled out to enhance the competitiveness of our rice
industry in the global market, especially within the context of how to allow
Cambodian millers to become a cost leader to compete with the same level
playing field [of our] Thai and Vietnamese counterparts,” one of the leading
exporters was quoted.
“Cambodia’s rice
industry has a huge potential but unless we manage to solve the cost
impediments, this potential may be squandered. It is the survival of the
fittest,” he added.
They noted that
"a pragmatic, professional, and thorough marketing strategy with
appropriate market positioning and implementation plan" is necessary along
with the government's on-going efforts to develop a national brand name for the
country's rice.
Meanwhile, the
Cambodian Center for Study and Development in Agriculture (CEDAC) is planning
to expand the production of organic rice in the country to around 1,000 - 1,500
tons this year due to its higher export potential. Local farmers affiliated
with CEDAC produced around 400 tons of organic rice in 2014 and around 800 tons
in 2015.
Cambodia has exported
around 538,396 tons of milled rice in 2015 (January - December), up about 39%
from around 387,061 tons exported in 2014. The government of Cambodia aimed to
increase official rice exports to one million tons in 2015 but missed the
target due to inadequate milling facilities and infrastructure as well as lack
of access to funding.
India Average Wholesale Rice Prices Decline Slightly m/m in February 2016
Feb 29, 2016
India average
wholesale rice prices have declined slightly in February 2016, after increasing
for three consecutive months. The decline can be contributed to increasing
supplies from the on-going Rabi/secondary rice crop (November - May) harvests.
Average monthly
wholesale rice prices in India stood at around Rs.2,773.3 per quintal in
February 2016, slightly up from around Rs.2,782.77 per quintal in January 2016,
and slightly down from their year-ago levels of around Rs.2,787.06 per quintal.
In terms of USD per
ton, wholesale rice prices in India stand at around $404 per ton (using current
exchange rates) in February 2016, down about 3% from around $415 per ton (using
historical exchange rates) in January 2016, and down about 10% from around $450
per ton (using historical exchange rates) in February 2015.
Analysts are expecting
India’s average prices to increase due to a likely reduction in this year's
output following below-average monsoon rains during the kharif season (July -
December).The government, in its second advance estimates for major crops,
forecasts India's 2015-16 (July - June) milled rice output to decline about 2%
to around 103.61 million tons from around 105.48 million tons in 2014-15.
Indian Authorities Unearth $146 Million Scam in Basmati Rice Exports Routed
to Iran
Feb 29, 2016
Authorities from the
Directorate of Revenue Intelligence (DRI) have unearthed a massive scam
involving over 200,000 tons of basmati rice worth Rs.1,000 crore (around $146
million) in rice exports routed to Iran, according to the Press Trust of India
(PTI).
The DRI authorities
found that the rice routed to the Bandar Abbas port in Iran was being
fraudulently diverted mid-sea to Dubai. They noted that exporters involved in
the scam would load the rice at the Kandla port in Gujarat. They have also
filed shipping bills to Iran. However, the consignment was diverted mid-sea to
Dubai allegedly with the connivance of cargo ship operators carrying the goods.
They also noted that payments are understood to be made from Iran to these
exporters with the importers and port officials officially acknowledging the
receipt of rice.
The authorities are
reportedly suspecting the involvement of about 25 rice exporters from Haryana
and Punjab in this scam.
Local sources noted
that the intelligence agencies are investigating the end use of the rice
off-loaded in Dubai. They noted that the authorities are suspecting the use of
rice as barter system to fund some illegal activities. Locally, they are
expecting the proceeds of the scam are a form of black money, the sources said.
The DRI has reportedly
involved the Supreme Court-appointed Special Investigation Team on black money
as well as the Enforcement Directorate to resolve the case. It is also in touch
with the concerned authorities in Dubai
Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Bounce
Higher to Start the Week on a Positive Note
Mar 01, 2016
Chicago rough rice
futures for Mar delivery settled 10.5 cents per cwt (about $2 per ton) higher
at $10.495 per cwt (about $231 per ton). The other grains finished the day with
mixed results; Soybeans closed about 0.3% lower at $8.6100 per bushel; wheat
finished about 0.2% higher at $4.5325 per bushel, and corn finished the day
about 0.7% lower at $3.5700 per bushel.
U.S. stocks traded
higher Monday, the last trading day of February, amid higher oil prices and
after some disappointing data. U.S. crude oil futures extended gains trading
more than 2.5% higher near $33.70 a barrel in afternoon trade. In economic
news, Chicago PMI came in at 47.6 in February, missing expectations and
dropping from 55.6 in January. Pending home sales fell 2.5% in January, versus
expectations for a slight gain. Key data for the week include ISM manufacturing
on Tuesday and the jobs report on Friday.
European equities came
off session lows to close mixed after China's central bank announced further
stimulus measures. The People's Bank of China cut further the reserve
requirement ratio, the amount of cash the country's banks have to hold, by 0.5%
points after China's markets closed Monday. The cut was the first since October
and the fifth since last February. The reserve requirement ratio comes into
effect Tuesday and means most large Chinese banks will have a reserve ratio of
17%, Reuters said. Asian equities closed mostly lower, with the Shanghai
composite down about 2.9% but above session lows and the Nikkei 225 reversing
gains to close down 1%.In afternoon trade, the Dow Jones industrial average was
up 42 points, or 0.25%, at 16,682. The S&P 500 traded 5 points higher, or
0.4%, at 1,953, with utilities leading eight sectors higher and health care and
energy the only decliners. The Nasdaq composite was up 17 points, or 0.38%, to
4,607. Gold is seen trading about 1.1% higher, crude oil is seen trading about
2.6% higher, and the U.S. dollar is seen trading about 0.1% higher at
about 1:00pm Chicago time.
Friday, there were
4,710 contracts traded, up from 3,079 contracts traded on Thursday. Open interest
– the number of contracts outstanding – on Friday increased by 264 contracts to
13,037.
Iraq Seeks to Buy 30,000 Tons of Rice in Tenders
Feb 29, 2016
Iraq is seeking to buy
about 30,000 tons of rice in tenders from the U.S., Uruguay and Argentina,
Bloomberg quoted a statement from Iraq's Trade Ministry.
Deadline for
submission of bid is reportedly March 8, 2016, and the offers will be valid
till March 14, 2016.
Last week, Iraq passed
off tenders to buy 90,000 tons of U.S. rice due to high prices. Bidders
reportedly offered South American rice at low prices.
Pakistan Resumes Banking Ties with Iran as Sanctions End
Feb 29, 2016
The State Bank of
Pakistan (SBP) has resumed banking ties with Iran allowing all commercial banks
and financial institutions in the country to restart business with their
Iranian counterparts, according to Reuters.
"In line with the
federal government's decision to implement the United Nations Security Council
Resolution regarding lifting of sanctions against Iran, the State Bank of
Pakistan has communicated to banks/financial institutions that previous
sanctions on Iran have been removed and normal business activities can be
commenced within the scope of the Resolution," the central bank was
quoted.
"It is expected
that the lifting of sanctions and restoration of banking channels between
Pakistan and Iran would revive normal trade and business activities between the
two neighbours," it added.
Major Pakistani
exports to Iran include basmati rice, plastics, paper and oranges, and the big
imports items include liquefied petroleum gas, petroleum products, electric
transformers and dry fruits. The Rice Exporters Association of Pakistan (REAP)
has been urging the government to restore payment mechanisms between the two
countries to help boost exports.
Earlier this month,
the global transaction network Society for Worldwide Interbank Financial
Telecommunication (SWIFT) reconnected a number of Iranian banks to its system,
allowing them to restart cross-border transactions with foreign banks. The move
came after sanctions were lifted on Iran in January this year. Iranian banks
were removed from the Belgium-based SWIFT in March 2012, following the
tightening of the international sanctions against Iran over its disputed
nuclear program.
Global Rice Quotes
February
29th, 2016
Long
grain white rice - high quality
Thailand
100% B grade 365-375 ↔
Vietnam
5% broken 355-365 ↑
India 5%
broken 360-370 ↔
Pakistan
5% broken 335-345 ↔
Myanmar
5% broken 420-430 ↔
Cambodia
5% broken 410-420 ↔
U.S. 4%
broken 455-465 ↔
Uruguay
5% broken 445-455 ↔
Argentina
5% broken 435-445 ↔
Long
grain white rice - low quality
Thailand
25% broken 345-355 ↔
Vietnam
25% broken 345-355 ↑
Pakistan
25% broken 305-315 ↔
Cambodia
25% broken 395-405 ↔
India 25%
broken 325-335 ↔
U.S. 15%
broken (sacked) 440-450 ↔
Long
grain parboiled rice
Thailand
parboiled 100% stxd 365-375 ↔
Pakistan
parboiled 5% broken stxd NQ ↔
India
parboiled 5% broken stxd 350-360 ↔
U.S.
parboiled 4% broken 480-490 ↔
Brazil
parboiled 5% broken 520-530 ↔
Uruguay
parboiled 5% broken NQ ↔
Long
grain fragrant rice
Thailand
Hommali 92% 665-675 ↔
Vietnam
Jasmine 415-425 ↔
India
basmati 2% broken NQ ↔
Pakistan
basmati 2% broken NQ ↔
Cambodia
Phka Mails 755-765 ↔
Brokens
Thailand
A1 Super 325-335 ↔
Vietnam
100% broken 330-340 ↑
Pakistan
100% broken stxd 285-295 ↔
Cambodia
A1 Super 335-345 ↔
India
100% broken stxd 260-270 ↔
Egypt
medium grain brokens NQ ↔
U.S. pet
food 280-290 ↔
Brazil
half grain NQ ↔
All
prices USD per ton, FOB vessel, oryza.com
Vietnam Exports About 727,847 Tons of Rice During January 1 – February 25,
2016
Feb 29, 2016
Vietnam exported about
727,847 tons of rice in January 1 - February 25, 2016, up about 73% from around
421,202 tons of rice exported in first two months of 2015, according to data
from the Vietnam Food Association (VFA). The average rice export price so far
in this year stands at about $399 per ton (FOB), down about 11% per ton from
around $452 per ton recorded during same last year.
During February 1-25,
2016, Vietnam exported around 311,077 tons of rice, up about 55% from around
200,814 tons rice exported in full month of February 2015, and down about 25%
from around 416,770 tons rice exported in full month of January 2016. The
average export price so far in February stands at around $387 per ton, down
about 15% per ton from a year ago and down about 5% per ton from a month ago.
Vietnam Rice Sellers Increase Their Quotes Today; Other Asia Rice Quotes
Unchanged
Feb 29, 2016
Vietnam rice sellers
increased their quotes for 5% broken rice, 25% broken rice and 100% broken rice
by about $5 per ton each to around $355-$365 per ton, $345-$355 per ton and
$330-$340 per ton respectively today. Other Asia rice sellers kept their quotes
unchanged today.
5% Broken Rice
Thailand 5% rice is
indicated at around $355 - $365 per ton, on par with Vietnam 5% rice shown at
around $355 - $365 per ton. India 5% rice is indicated at around $360 - $370
per ton, about $25 per ton premium on Pakistan 5% rice shown at around $335 -
$345 per ton.
25% Broken
Rice
Thailand 25% rice is
indicated at around $345 - $355 per ton, on par with Vietnam 25% rice shown at
around $345- $3505per ton. India 25% rice is indicated at around $325 - $335
per ton, about $20 per ton premium on Pakistan 25% rice shown at around $305 -
$315 per ton.
Parboiled
Rice
Thailand parboiled
rice is indicated at around $365 - $375 per ton. India parboiled rice is
indicated at around $350 - $360 per ton, about $55 per ton discount to Pakistan
parboiled rice last shown at around $405 - $415 per ton.
100% Broken
Rice
Thailand broken rice,
A1 Super is indicated at around $325 - $335 per ton, about $5 per ton discount
to Vietnam 100% broken rice shown at around $330 - $340 per ton. India's 100%
broken rice is shown at around $260 - $270 per ton, about $25 per ton discount
to Pakistan broken sortexed rice shown at around $285 - $295 per ton.
Oryza U.S. Rough Rice Recap - Prices Seen Steady after IGB Reissues Another
Tender Including South American Origins
Mar 01, 2016
The U.S. cash market
was seen mostly unchanged today after it was confirmed that Iraq canceled their
U.S. origin only tender and reissued another tender to buy at least 30,000 MT
from either the U.S., Uruguay, or Argentina.
Analyst note that the
lower and unsolicited offers from South America on the old tender likely
complicated things for the Iraqi Grain Board as they likely faced difficulties
justifying paying a roughly $90 per ton premium for U.S. rice over South
American.
Going forward,
analysts expect that offers from the U.S. will decrease while offers from South
America will increase which some believe will give the U.S. a decent shot at
booking one cargo.
Offers need to be
submitted no later than March 8 and need to remain valid until March 14.
News have been shared with permission of ORYZA.com with thanks
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