Twists and turns in MP-Punjab Basmati row, with little signs of an end
The issue is sensitive for the MP chief minister, especially in the light of the coming bypolls in the state's farming zone
The contentious issue of whether basmati rice grown in Madhya Pradesh should be eligible for the GI tag, just like the kind grown in the foothills of Himalayas, has once again reared its head with state chief Minister Shivraj Singh Chouhan writing a series of letters opposing his Punjab counterpart Amarinder Singh’s views on the matter. The Madhya Pradesh government has also decided to approach the Supreme Court to challenge an order by the Madras High Court rejecting the state’s claim over the GI tag for basmati grown on its soil. The Madras High Court gave its decision on two petitions; one filed by the state government and the other by a basmati rice growers’ association in the state. Several observers and experts are also linking MP’s belligerence to the coming bypolls to the 27 vacant assembly seats, something which will decide the fate of the Shivraj Singh Chouhan government. As most of the seats in the bypolls fall in the Gwalior-Chambal region, which is predominantly a farming zone, many feel Chouhan is in no mood to compromise in the matter for fear of being branded anti-farmer. This, in fact, was a tag that the opposition Congress successfully managed to stick on him, causing his defeat in the last assembly elections in MP. Madhya Pradesh’s argument Basmati rice in the state is largely grown in and around the 13 districts of Morena, Bhind, Sheopur, Gwalior, Datia, Shivpuri, Guna, Vidisha, Raisen, Sehore, Hoshangabad, Narsinghpur and Jabalpur. An estimated 80,000-100,000 farmers cultivate the crop in these areas in over 200,000 hectares of land, as per the state government’s assessment. Madhya Pradesh contends that it has historical records since 1908 of basmati production in the 13 districts and has records of supplying seeds to farmers in MP in the year 1944 by the erstwhile Scindia State. It also argues that the Indian Institute of Rice Research, Hyderabad, had recorded production of basmati rice in MP in its Production Oriented Survey Report for the past 25 years. "Basmati exporters in Punjab and Haryana are procuring the rice from MP. This is also supported by Government of India data of export from the Mandideep industrial area in Madhya Pradesh," Chouhan recently tweeted. The GI tag is for PUSA-1 and PUSA-1121 basmati rice varieties cultivated in Madhya Pradesh. Apart from Punjab, other states that already have GI tagging for basmati include Haryana, Himachal Pradesh, Uttarakhand, Delhi, western UP, and select districts of Jammu and Kashmir. Punjab and exporters' contention Basmati is among the top three agricultural exports from India and has consistently been a show-stopper, irrespective of global market dynamics. In 2019-20, India exported around 4.45 million tonnes of of the grain, valued at over Rs 31,000 crore. Basmati’s long-aromatic grain, smooth texture and special qualities has over the last several decades made it one of the most adorable and signature food items of India. The Central government, along with the states, has fought a long legal and diplomatic battle to retain the specificity and uniqueness of Indian basmati rice amid stiff competition from neighbouring Pakistan, which has long claimed that the crop grown on its soil is the real basmati. Exporters say granting the GI tag to basmati grown in Madhya Pradesh districts will lower its value in the international market and give a window to Pakistan to strengthen its claim over the variety grown in its territory, impacting India’s marketability and premium. “If someone starts growing Darjeeling tea in Chennai will it command the same price as the original grown in the Darjeeling valley. A GI tag or certification is the region-specific identity of a product. No one can simply grow the same crop in some other place and claim it to be the same as original. However, it might be near to the original one,” a leading basmati rice exporter said. He said expanding the GI tag to basmati grown in Madhya Pradesh will diminish its international market and lead to fall in the premium it commands over other rice varieties. Whether or not Madhya Pradesh deserves a GI tag for the basmati grown in its state is now to be decided by the country’s highest Court of Law. But as it deliberates on the matter, getting a GI in itself is cumbersome and many times controversial and tricky in India. This probably explains why India has less than 500 GI-certified items, despite having one of the world’s most diverse agriculture produce and culinary items. Problems of getting GI tag in India Be it ‘Basmati Rice’, or ‘Darjeeling Tea’ or ‘Hyderabadi Biryani’, getting Geographical Indication tag (GI) for items exclusive to India has long been a contentious issue. Though, the GI Act that commenced from 2003 (Geographical Indications of Goods (Registration and Protection) Act, 1999) has brought much-needed transparency and clarity into the entire field, but experts said a lot of confusion and complications originates primarily due to lack of quality control once the tag is obtained and also limited hand-holding prior to applications are made to the Registrar that leads to half-baked attempts to seek a GI certification. Darjeeling tea became the first GI tagged product in India, in 2004–05, since then over 300 goods had been added to the list. India’s vast and vibrant agricultural and food varieties along with inter-regional variations also make it a ‘nightmare’ while applying for GI. Experts said a big factor in granting a GI tag for any product is ‘public perception’ about the same. This is easier for products which are associated with a particular area like Darjeeling Teas, or Champagne of France, but when it comes to generic items like Pashmina which is not usually associated with a particular area or region by the virtue of its name, granting a GI becomes highly challenging. GI Act and its implementation in India is relatively new – it started from 2003 onwards – while in other countries the concept has been in existence since long. The other big challenge in getting GI in India, experts said is the improper filing and lack of proper knowledge which sometimes leads to half-baked applications being filed increasing their chance of rejection by competent authorities. In India there are no provisions for quality control in the GI Act once GIs are registered, which is why there is a proliferation of applications in India. In Europe, one of the pivotal issues is quality control. Once a product is granted GI, there is little possibility of fakes, which is not the case in India. A GI tag brings its own brand equity for the product and it commands a premium in the market, but to get that a lot of background work needs to go into before a formal application is made, something which is absent in India leading to higher number of rejections. A case in point is ‘Hyderabadi Biryani’ which failed to get the GI tag as the applicant could not prove the historical origin and data relating to the dish with supporting documents. The application was filed by Deccani Biryani Makers Association (DBMA) a few years back. "The existing GI tribunal order has not been implemented in letter and spirit. The existing application and grant of GI of Basmati contains a number of glitches. In the interest of the nation, there is a requirement to review the entire matter based on ‘GI principles’ without going into the subject whether MP or any other area is to be included and examination of subject just not based on selective references and interpretations," S Chandrasekaran, trade policy analyst and author of the book Basmati Rice - The Natural History Geographical Indications, told Business Standard. Table: Basmati rice exports from IndiaYear | Quantity (million Tonnes) | Value (Rs crore) |
2019-20 | 4.45 | 31,026.00 |
2018-19 | 4.41 | 32,804.30 |
2017-18 | 4.05 | 26,870.17 |
2016-17 | 3.98 | 21,513.00 |
2015-16 | 4.04 | 22,719.00 |
Strong Prospects for Exports
According to All India Rice Exporters Association demand for Indian basmati rice is high from Middle Eastern countries, including Iraq and Saudi Arabia. Besides, East European countries are keen to buy the Indian aromatic variety. Vinod Kaul, Executive Director of AIREA, said that despite the pandemic, the sowing of Kharif crop was completed with local and migrant labourers who returned after restrictions eased. However, India has stopped shipments to Iran due to payment issues.Punjab Expecting Bumper Crop
The area under Basmati this year is 4% more than the previous year’s coverage and the highest in five years in Punjab. However, the state is still short of meeting the target of covering 7 LH hectares under Basmati. Farmers prefer growing paddy than Basmati as Basmati is a non-MSP crop. The fluctuation in prices encourages farmers to grow paddy. The state has registered 6,50,150 hectares under Basmati till now.Prices to Fall Further
A report by CRISIL Ratings said that paddy prices are likely to fall 17% in the current fiscal from an average Rs 36 per kg. Good monsoon and stable demand will lead the rice industry to a good year. Also, several basmati companies are in for a 100-150 bps margin boost owing to low prices of paddy. Despite the pandemic, several countries, including the UK and the USA, have been importing basmati from India.Export Worries Due to Iran
Though trade continues with other countries, uncertainty looms overpayment due to exporters from Iran. The Central Bank of Iran has slowed down the allocation of currency to Iran traders against which they were importing from Iran. It bought 1.3 million tonnes the previous year, ordering over 30% of India’s rice. The country is likely to register a 20% lower volume basmati trade with Iran. Also, tea exports will come to a halt in case the payment issues remain unresolved. In all, the Indian rice industry is optimistic about rice trade this year due to high demand and excellent production.Climate
Change, Crop Yields and Risk Management for Farmers
August 26, 2020 Matt Shipman
Photo credit: Tom Fisk.
Editor’s Note: This is a guest post by Rod M. Rejesus, a
professor of agricultural and resource economics and extension specialist at
NC State. This post is part of a series highlighting ways that
NC State is helping us understand, mitigate and prepare for the impacts of climate change.
“If you ate
food today, thank a farmer!” This popular slogan has circulated in social media
(as well as mainstream media) in recent years, highlighting the importance of
farmers and the agricultural industry in supplying the food we eat every day.
But agriculture is one of the most climate-sensitive industries worldwide; the
nature of farming means that growers are exposed to the vagaries of weather and
climate.
For example,
systemic changes in temperature, atmospheric carbon dioxide (CO2), and the frequency and intensity of extreme
weather could have significant adverse impacts on crop yields and the supply of
food we eat.
Agriculture is
also a major industry that contributes significantly to the economies of most
countries (including the United States). Agriculture is a major source of
livelihood for a large proportion of rural communities across the globe. In
other words, climate change has the potential to threaten both our food supply
and farmers’ livelihoods.
With this
“climate change threat” to agriculture, a key challenge to agricultural science
is to further understand the nature of how climate change adversely affects the
yields of various crops worldwide. Once the yield effects of climate change are
better understood in the context of how crops are being grown today (i.e.,
using past or current technologies and practices), it is important to discover
and research ways farmers can utilize new agricultural technologies and
practices to mitigate the adverse effects of climate change. Moreover,
information about these new climate change adaptation and mitigation practices
must also be passed on to farmers through extension and outreach programs.
NC State
is at the forefront of this challenge – conducting research and providing
outreach to better understand and address the issues related to climate change
and its impacts on crop yields in agriculture.
I contribute to
this effort by examining climate change issues affecting corn and other
commodity crops in the U.S., as well as issues affecting rice in other
countries – particularly those in Asia.
Domestically, I
contributed to research published in the journal Science that
shows corn yields in the U.S. corn belt
are becoming increasingly sensitive to drought conditions in
spite of varietal improvements in corn cultivars and advances in agronomic
practices. Although average corn yields are still steadily increasing under
drought conditions (albeit at a lower rate relative to ideal growing
conditions), the adverse impact of drought conditions has become increasingly
larger over time. Average yield increases are getting smaller in drought
conditions. A similar trend is observed in soybeans but not as severe. The
observed sensitivity to drought stress can be attributed to higher planting
densities that accompanied the use of improved cultivars over time.
The finding
that corn yields are becoming more sensitive to drought events (and heat stress
in general) have important implications for the future risk management strategies of
farmers, especially in the presence of further climate change. As
such, I am involved in research that assesses the economic feasibility and
impacts of agricultural technologies and agronomic practices that can
potentially mitigate the increased risk posed by climate change (e.g., cover
crops, planting densities,
tillage practices, planting dates, etc.).
I am also
involved in projects that aim to improve the U.S. crop insurance program to
better serve the risk management needs of farmers and help them in times of
extreme weather events that results in revenue losses. I was also involved in a
survey to understand how U.S. farmers perceive climate
change. In general, this study suggests that farmers in four U.S.
states are skeptical of the adverse yield effects of climate change. Hence,
outreach activities to promote climate change mitigation and adaption practices
need to be more creatively structured given the inherent skepticism of growers.
Photo credit: Pierre Bamin.
In addition to
my work in the U.S., I’m engaged in research studies that examine the effects
of climate change on crop yields in other countries.
Rice is a food
staple worldwide, with nearly half of the world’s population consuming it
daily. One of my Ph.D. students is involved in examining how modern rice varieties can mitigate the adverse
effects of warming temperatures. This study shows that recent
rice breeding advances have indeed mitigated the adverse rice yield effects of
warming, but development of new varieties that are more
tolerant to heat is still needed – because temperatures are
expected to rise in the future. Aside from new rice varieties, I
have also examined the impacts and economic feasibility of new
water-saving irrigation practices that can help rice producers
attain similar yields using less water.
Climate change
is one of the biggest societal challenges of our generation and the search for
ways to mitigate and adapt to this phenomenon needs to continue, especially if
we are to have an agricultural sector that can adequately supply food for a
world population approaching 10 billion by mid-century. NC State will be a
part of this quest.
https://news.ncsu.edu/2020/08/climate-change-crop-yields-and-risk-management-for-farmers/
Food office to assess stock of rice, paddy to tame rising prices
12:00
AM, August 27, 2020 / LAST MODIFIED: 01:53 AM, August 27, 2020
With
prolonged floods mounting to the pandemic woes this year, fresh harvests of
hybrid paddy cultivated on higher grounds bring some relief to farmers in
Nazirer Gaon in Tuker Bazar union of Sylhet sadar. Bangladesh Rice Research
Institute estimates a surplus of over 55 lakh tonnes of rice on meeting
domestic demand at November’s end while the food ministry is preparing to
import the staple to keep public stocks intact. The present stock of 12.5 lakh
tonnes of rice and wheat is set to be exhausted by December owing to the
government’s food distribution and other social safety net programmes. Photo:
Sheikh Nasir
Accordingly, the Directorate
General of Food has asked its field offices to send reports on the stock of
paddy, rice, wheat and flour at the end of millers and traders within five
days, according to a notice issued on 24 August.
The initiative comes against the
backdrop of two contradicting scenarios: rice prices are spiralling at a time
when the agriculture ministry is saying production was good in the last Boro
season and there would be no shortage of the food.
The Bangladesh Rice Research
Institute (BRRI) estimates that farmers produced more than 2 crore tonnes of
rice from Boro harvested in the April-June period and that there would be more
than 55 lakh tonnes of rice in surplus at the end of November after meeting the
domestic requirement.
BRRI found in its study that
farmers held a higher stock of paddy.
"We want to understand the
reasons behind the price spike," Food Secretary Mosammat Nazmanara Khanum
told The Daily Star over the phone yesterday.
The prices began increasing nearly
a week ago in Dhaka city, according to retail data compiled by the state-run
Trading Corporation of Bangladesh (TCB).
For example, traders asked Tk 54-Tk
64 for each kilogram of fine grains sold as miniket or nazirshail, which is 5
per cent higher from a month earlier.
Coarse rice price increased 8 per
cent to Tk 44-48 each kilogram yesterday from Tk 40-Tk 45 a month before,
showed TCB data.
The prices of paddy and rice had
been higher during the harvesting season because of millers' rush to buy the
grain following government's declaration of purchasing 800,000 tonnes of paddy
and slow release of paddy by farmers, Khanum said.
The government could attain
one-fourth of its target of buying paddy during the procurement season, which
is set to end next week.
The prices are going up at a time
when the public warehouses had 10.7 lakh tonnes of food on 24 August, down 32
per cent from a year earlier.
Khanum went on to cite the
agriculture ministry's estimate of adequate production and ample supply of the
grain in the market and said there has been no shortage of rice.
"We have no shortage of rice
based on the estimate and our observation. Even after that, the prices are
increasing. There is a grey area. It may be that farmers, millers do not have
stock as much as we are assuming. There might be a gap somewhere," she
added.
In its notice issued to the district
food office, the food ministry said Prime Minister Sheikh Hasina ordered the
officials concerned to get reports on the stock of paddy, rice and wheat held
by millers and traders to take a policy decision.
The food office is yet to find
anyone holding a large stock of grain, Khanum said.
"We also want to see if large
companies are packaging rice in larger quantity and reducing supply in the
market. We are analysing where we need to intervene," she said, adding
that the government would import after analysing the situation and to bring in
discipline in the market.
Millers and traders earlier said
crop losses for cyclone Amphan, recurrent floods and apprehensions over low
yields of aman paddy for late plantation and food shortages for the coronavirus
pandemic are fuelling rumours among growers, traders and millers that the
supply of the food grain will become tight in the coming months.
And these factors are encouraging
paddy to be stocked up and released slowly, said millers and traders.
Agriculture ministry recently
estimated that flood damaged 32,000 hectares of Aus paddy crop and nearly
71,000 hectares of Aman paddy.
Farmers were harvesting paddy
during the current Aus harvesting season. The decision on the amount of import
will be taken based on the prospect of Aman, Khanum said.
As part of the preparation, the
food ministry also asked its field office to furnish information on the
requirement for rice for distribution among poor people under the social safety
net and other public food distribution programme between September and November
this year.
Khanum said they need nearly
900,000 tonnes of rice for distribution for three months.
She said the government might
consider allowing the private sector to import rice if needed.
KM Layek Ali, general secretary of
the Bangladesh Auto, Major and Husking Mills Association, welcomed the
government move to assess the stock of foodgrains.
"We millers do not have that
much stock. If there is a surplus, it is necessary to see who is holding that.
The point is that the quality of grains deteriorated because of bad weather
during the harvesting season except for the haor region."
This stock assessment is necessary
to see whether there is any surplus or shortage, he added.
A section of traders increase the
prices whenever the stock of food grain at public warehouses decline, said
Ghulam Rahman, president of the Consumers Association of Bangladesh.
The government should be increasing
public stock by reducing import duty and increasing supply in the market
through open market sales and other social safety net schemes.
At the same time, it should ensure
punishment to wrongdoers.
"The spike in prices is not
expected at this time when many people have lost jobs and seen reduced income.
Many self-employed have become jobless," he added.
BUFFALO POWER AT LAGUNA GOLF LANG CO
HELPS FEED LOCAL VIETNAMESE COMMUNITIES DURING COVID-19
AUGUST 27, 2020
ENVIRONMENT / GOLF / WELLNESS
Laguna Golf Lang Co’s family of
water buffalo have helped the club reap a record rice harvest which will go
towards feeding members of the local community in Central Vietnam.
The club gathered 28 tonnes of
rice from the seven-hectares of fields right in the middle of the Sir Nick
Faldo Signature layout — a record harvest-time haul.
The buffalo “bio-mowers” have
been vital in helping to maintain the elevated status of the layout, which
winds its way through tropical jungle, ocean sand dunes and ancient rice paddies
and was ranked as the best in Vietnam at the 2019 Vietnam Golf Awards.
They help to manage the
seven-hectares of rice fields located right in the middle of the course by
eating excess weeds, crops while tilling the soil in the area that would otherwise
require machinery and additional manpower to maintain.
The rice-fields, though, are not
just for show. Harvested twice a year, they have previously yielded up to 20
tons of rice that are used to support the organic farm at Laguna Lang Co and
donated to families and seniors in the area who are in need of extra support.
This winter’s record haul,
however, surpassed previous harvests by some way. Additionally, the bumper crop
could not have come at a timely juncture, with Vietnam’s economy taking a hit
on tourism as the international borders remain closed to combat the spread of
the global pandemic.
Golf at Laguna Lang Co. Director,
Adam Calver advises “the communities that have limited economic means have been
hit the hardest by the economic downturn that has resulted from the global
pandemic.
“The fact that we are able
to donate even more rice to locals who need it most this year was a really
positive outcome for our edible golf course.”
The utilisation of water buffalo
as greenkeepers is part of a wider push by Laguna Golf Lang Co to be the most
sustainable course in Vietnam. It has completely eradicated the use of
single-use plastics in almost all aspects of its operations, scrapping items
made of plastic such as on course garbage bags, locker room accessories,
plastic cups and straws and replacing them with ones made from materials such
as bamboo, paper, steel or natural grass.
Laguna Lang Co Resort has just
finalised the installation of its own water bottling plant to allow the resort
to completely eliminate plastic water bottles and utilize reusable glass
bottles.
The club is also one of only
three golf courses in the world to achieve EarthCheck Gold certification, a
status it earned at the end of 2019.
Calver adds “continually mowing
the fields to maintain vast rice terraces can consume a large amount of labour
and fuel. The water buffalo act as bio-mowers and help us protect the natural
feel of the landscape; they give a true sense of place.
“Since we introduced the buffalo
we have seen a number of birds such as egrets, moving in as they feast on the
insects as the buffalo till the soil. We are currently building a new home for
our family of ducks which will be used next year as part of our ‘Integrated
Rice-Duck Farming Program’.”
Image top: The water buffalo
tending the rice fields add a classically Vietnamese feel to the club; image
centre Baby Lulu (right) is the latest addition to the now five-strong family
of water buffalo at Laguna Golf Lang Co; image above: The expanded family
helped harvest a record harvest haul of 28 tonnes of rice this winter
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Wheat
Winter Wheat markets were higher
last week. The market is still reacting to which way Wheat prices
are going here and overseas. Spring Wheat was developing under good growing
conditions in both the US and Canada. Harvest has expanded and yield reports
are solid in the northern Plains. Yield reports from the central and southern
Great Plains have been variable, but generally a little better than expected.
Soft Red Winter yields are high. The Winter Wheat markets are in sideways
trends on the weekly charts. It is still dry in France and Russia and now
Spring Wheat areas of Russia are being affected. Russian Winter Wheat yields
have improved over time as harvesters move into areas that had better growing
conditions. Australia remains in good condition and is getting beneficial
rains. About half of the Argentine Wheat belt is too dry.
Corn
Corn was slightly higher in reaction to demand and the Pro Farmer
tour results. A lot of attention was on the results from Iowa due to drought
and the derecho that blew through the state. The derecho brought 100 mph
winds to parts of Iowa and Illinois and flattened many Corn crops. Some
of these crops will not recover. Some silos and other storage and processing
facilities were damaged or destroyed. It is not known how much of the Corn can
recover. Pro Farmer estimated the Iowa yield at just over 177 bu/acre. Corn in
surrounding areas looks good and USDA called for record yield potential in its
reports this month. Pro Farmer has found good but not great crops in general in
the Midwest. China was a buyer of US Corn again late last week.
Soybeans and Soybean Meal
Soybeans were a little lower after making new highs for the move.
The Pro Farmer crop tour found a lot of good looking Soybean plants with plenty
of pods per plant. The Soybeans in Iowa were in much better condition than the
Corn as the derecho did not cause as much damage. USDA noted that China had
bought a lot of new crop Soybeans in its weekly sales report on Thursday. They
bought even more on Friday. China has become a much more active buyer of
Soybeans here in the US. Brazil prices are higher for the rest of the world as
it starts to run out of Soybeans to export, so China and the rest of the world
will look to the US for additional supplies. The US weather is considered
mixed for Soybeans with cooler temperatures and some rain in the north, but dry
conditions further to the south.
Rice
Rice was higher again last week as the harvest is active near the
Gulf Coast. The weekly charts show that a small bottom has formed and the
daily charts imply that higher prices are coming. New crop prospects
appear solid for increased production in the coming year. The area is
larger and the growing conditions are mostly good. The crops are called
in good condition in Mississippi, Arkansas, and Missouri. Texas and
southern Louisiana field yield reports are strong. Quality is called
average to above average. Export demand for the new crop Rice has been
slow to develop as buyers wait for lower prices. Domestic demand has also
been less. It looks like many buyers bought and hoarded Rice during the
first pandemic scare and are now full of supplies.
Palm Oil and
Vegetable Oils
Palm Oil closed slightly lower on worries that prices were too
high for demand and despite more reports of less production from Malaysia and
Indonesia. Demand reports from the private surveyors were down 20% for the
month to date. Wire reports from Indonesia last week highlighted more than 8%
less production and 7% exports from that country. Flooding and a lack of
workers for the plantations have been the reasons to see less production in
Malaysia. Palm Oil has been hoping for better demand from importers as world
economies slowly open after being closed by the Coronavirus epidemic. Indonesia
continues to focus its Palm Oil on internal demand for bio fuels. Soybean Oil
was a little lower and Canola was also a little lower. Canola closed higher
despite good growing conditions in Canada and the stronger Canadian
Dollar. The strength in the Canadian Dollar is more about weakness in the
US Dollar than anything going on in Canada. Crop conditions are mostly
good and farmers have been selling old crop supplies. The weather has been warm
and most areas have seen rain.
Cotton
Cotton closed a little higher for the week and trends are turning
up on the weekly charts. West Texas weather remains detrimental for crop
development as the region has been very dry and hot. The hot and dry weather
extends north into Oklahoma and western Kansas. Export demand for US Cotton has
been poor for the last few weeks but was improved last week. Export demand is
the primary demand for US Cotton so poor weekly sales means weak overall demand.
The retail demand has been slow to develop as many consumers got hurt
economically due to stay at home orders during the height of the pandemic and
have little disposable funds to spend on clothes. Demand will slowly improve
but the industry should have plenty of supplies to work with in the short term.
The US weather situation is mixed, with good rains noted in the Southeast and
good conditions in the Midsouth. However, it has been very hot and dry in West
Texas and farther to the north in the Great Plains and crops there are
suffering.
Frozen
Concentrated Orange Juice and Citrus
FCOJ was lower for the week and the weekly charts still show down
trends. The Coronavirus is still around and is still promoting consumption of
FCOJ at home. Restaurant and food service demand has been much less as no one
is really dining out. Florida production prospects for the new crop were hurt
by an extended flowering period, but the weather is good now with frequent
showers to promote good tree health and fruit formation. Import demand to the
US should be minimal as US prices remain below those of Europe. Brazil has been
too dry and irrigation is being used. Some showers are in the region now to
help in Sao Paulo.
Coffee
Futures were higher in New York and higher in
London. London was the leader on the rally as demand for Robusta has improved
with people staying at home. Chart trends remain up for at least the short
term. Vietnam was dry during flowering time and is dry again. Production ideas
are lower. Demand overall remains down with the US still locking down due
to the Coronavirus resurgence in some states. The demand from coffee shops and
other food service operations is still at very low levels. Consumers are still
drinking Coffee at home and the return of the Coronavirus outbreak will keep
things that way. Reports indicate that consumers at home are consuming blends
with more Robusta and less Arabica. Europe is emerging from lockdowns, but the
Coronavirus has ramped up as the lockdowns are eased and that bas hurt overall
economic activity there. The Brazil harvest is active but shipping and
collection have become very difficult due to the widespread outbreak of the
Coronavirus there. Even so, the pickers are showing up for work and ports are
operating normally. Ideas are that production will be very strong this
year as it is the one year for the trees. The strong production ideas are
coming despite hot and dry weather seen in the country at flowering time.
Sugar
New York and London were lower. CONAB noted in its most recent
report that Brazilian mills are producing more Sugar and less Ethanol this year
due to reduced Ethanol demand. Ideas are that there is plenty of Sugar for the
world market. Getting the Sugar moved is becoming more difficult with the
widespread Coronavirus outbreak in both Brazil and India. India is thought to
have a very big crop of Sugarcane this year but getting it into Sugar and into
export position has become extremely difficult due to Coronavirus lockdowns.
Thailand might have less this year due to reduced planted area and erratic
rains during the monsoon season. There are reduced flows from rivers from China
to hinder irrigation of the crops.
Cocoa
New York closed about unchanged and London closed lower. The
current crop features strong production but there are worries about the next
crop due to dry conditions in West Africa. Nigerian traders told the wire
services last week that the Nigerian harvest will be delayed by at least a
month due to dry weather keeping the pods and beans small and keeping the pods
from developing normally. There are a lot of demand worries as the Coronavirus
is not going away and could be making a comeback in the US. Europe is still
trying to open its markets again but the Coronavirus is still around and
consumers are reluctant to buy. Ideas are that Southeast Asia also has good
crops.
—
(Featured image by icon0.com via Pexels)
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Born2Invest, its management, staff or its associates. Please review our disclaimer for
more information.
This article may include
forward-looking statements. These forward-looking statements generally are
identified by the words “believe,” “project,” “estimate,” “become,” “plan,”
“will,” and similar expressions. These forward-looking statements involve known
and unknown risks as well as uncertainties, including those discussed in the
following cautionary statements and elsewhere in this article and on this site.
Although the Company may believe that its expectations are based on reasonable
assumptions, the actual results that the Company may achieve may differ
materially from any forward-looking statements, which reflect the opinions of
the management of the Company only as of the date hereof. Additionally, please
make sure to read these important disclosures.
Jack Scoville is a futures
market analyst specializing in grains, softs, rice, oilseeds, and tropical
products such as coffee and sugar. In addition to writing daily market
commentaries in both English and Spanish, he offers brokerage services to an
international clientele of agricultural producers, processors, exporters, and
other professional traders. He is regularly quoted by major wire services
including Dow Jones, AP, and Reuters. His comments are sourced by newspapers
around the world and on various radio and television programs.
Rice tariffication alleged to have cost farmers P40 billion in lost
income
August 26, 2020 | 7:04 pm
RICE FARMERS lost P40 billion
worth of income due to rice tariffication, to the benefit of importers and traders,
who realized a P57.5 billion windfall during the first year of Republic Act No. 11203 or
the Rice Tariffication Law, according to the Federation of Free Farmers (FFF).
According to a study conducted by
the FFF and allied groups, farmer mainly absorbed the impact of low palay
prices, whereas traders could shift their sourcing to imports.
The FFF said that two million
tons of imported rice arrived during the first seven months of the law’s
effectivity.
“Palay prices nosedived from an
average of P22.04 per kilogram in September 2018 to P14.40 in October 2019,”
the FFF said. Palay, or unmilled rice, is the form in which rice farmers sell
their harvest, while imported rice is typically milled into various varieties.
Proponents of the law touted it
as a means of bringing down prices, slowing inflation, and allowing poor
consumers to buy the staple for less.
The FFF claimed that the promised
drop in prices to benefit the poor was not realized.
“Importers brought in mostly
higher quality rice that sold at a higher price and gave better profit margins.
Up to 85% of total rice imports were of the 5% brokens grade instead of the
cheaper 25% brokens that the National Food Authority (NFA) previously imported,”
the FFF said.
The FFF also alleged that rice
importers saved P2.5 billion in tariffs after not declaring the true value of
their imports to the Bureau of Customs.
The Department of Agriculture
(DA) had yet to comment on he study at deadline time.
Taking effect in March 2019, the
law permitted unrestricted imports of rice, with Southeast Asian grain paying a
tariff of 35%. The tariffs fund the Rice Competitiveness Enhancement Fund
(RCEF), which helps farmers access seed, farm machinery, credit, and farm
know-how. — Revin Mikhael D. Ochave
Cameroon: Rice importers
suspected of fraudulently reexporting to neighboring countries
- Wednesday, 26 August 2020 13:44
(Business in Cameroon) - In Cameroon, the
national institute for statistics INS suspects rice importers of fraudulently
reexporting their products to Nigeria. Indeed, in 2019, Cameroon’s rice imports
surged, inexplicably affecting the country’s food products import expenditures
(up by 14.9% to XAF807.5 billion).
The
institute notes that the volume of rice imported by the country rose from
561,112 tons to 894,486 tons (up by 59.4%). This cost the country XAF231.6
billion, up by 60.9% compared to the value of rice imports in 2018.
“Given
the dynamism of the local production, we can suspect that the surplus is
reexported to neighboring countries, Nigeria notably due to the importance of
its domestic market,” the INS comments. These reexportations are
facilitated by the exemptions granted by the Cameroonian government for rice
imports. Thus, the operators import rice duty-free and reexport it to increase
their profits.
Because
of that practice, the INS announces that it is elaborating a permanent
mechanism to monitor trans-border trades. The mechanism will provide an overview
of Cameroon’s transborder trades and help curb these unfair reexportations.
Fakhar For Enhancing Cooperation With Egypt In Filed Of Cotton
Research
http://global.chinadaily.com.cn/a/202008/27/WS5f470a84a310675eafc55c40.htmlSecond
Installment in Chef Video Series Taps Plant-Based Trend
ARLINGTON, VA -- USA Rice recently released the
second in a series of three educational videos aimed at foodservice operators,
chefs, and purchasers highlighting the advantages U.S.-grown rice can bring to
a foodservice operation and its bottom line.
The new video, "Plant-Based,"
stars James Beard-nominated Chef Hari Cameron explaining why sustainability is
important in foodservice and how U.S. rice farmers are leading the way, all
while preparing an original plant-based recipe he developed called Brown Rice
& Ancient Grain Bowl. Cameron reminds his audience how incorporating
U.S.-grown rice on menus allows foodservice operators to capitalize on the
plant-based movement and easily increase their whole food offerings.
"With the foodservice industry still
dealing with the impact of the COVID-19 crisis and operators continually
adapting their models, this video is meant to inspire chefs to position rice as
an affordable, local, plant-based option that is both versatile and
sustainably-grown," said Michael Klein, USA Rice vice president of
domestic promotion.
The Plant-Based video will be
incorporated into the USA Rice foodservice digital advertising strategy and
make its advertising debut in next month's digital edition of Flavor
& The Menu, a leading foodservice publication.
The first video to debut in the series revolved
around the theme of Authenticity, using U.S.-grown rice to deliver an
authentic culinary experience. The final video will focus on Seasonality and
how U.S.-grown rice makes it easy for operators to adapt menus to the current
growing season.
Recipe:
Mary Contini's Lamb and spinach curry
By Mary Contini
Lamb curry
Now that we are allowed to visit
restaurants again the dishes I am most looking forward to are those that are
very different from my own home cooking: a tasty Chinese banquet with a
never-ending delivery of delicious dishes flowing from the kitchen to the table
or maybe a fabulous, steamy curry, mouth-wateringly flavoursome with spicy
chutney, naan bread and aromatic cardamom rice.
This lamb and spinach curry is
very easy to prepare at home and it tastes even better the next day. Why not
make it and get someone else to serve it to you. Refuse to do the dishes!
LAMB AND SPINACH CURRY
Ingredients
500g lamb shoulder
4 cm piece fresh ginger, peeled
and grated
4 cloves garlic, peeled and
crushed
2 tablespoons ground coriander
4 tablespoons vegetable oil
1 onion, peeled and finely
chopped
½ teaspoon turmeric
1 teaspoon cayenne pepper (1½ if
you prefer a very hot curry)
1 teaspoon salt
4 tablespoons natural yoghurt
4 tablespoons water
400g fresh spinach, shredded
450g tin chickpeas, drained and
rinsed
40g fresh coriander
Squeeze lemon juice
Method
Trim the lamb of any excess fat
and cut into 2-3 cm pieces.
Put in a bowl and add the grated
ginger, garlic and ground coriander.
Mix everything together, cover
and leave in the fridge for an hour or so.
Start cooking the curry. Pre-heat
oven to 150C/Gas 3
Warm the oil in a large oven
proof casserole and sauté the onions until transparent.
Add the marinated lamb, the
turmeric, cayenne pepper and salt and cook on a medium heat, stirring until the
lamb is browned all over.
Now add a tablespoon of yoghurt,
stirring so that the lamb is well coated, and the yoghurt gradually melts to
form the start of a sauce.
Add the rest of the yoghurt, a
tablespoon at a time, stirring to absorb each time.
Add the 4 tablespoons of water to
add some extra moisture.
Stir in the spinach.
Cover with a tight-fitting lid
and cook in the oven for an hour or so until the lamb is tender. Check and stir
halfway through adding a little more water if the sauce looks dry.
In the last 15 minutes, stir in
the strained chickpeas and cook so they start to take on the flavour of the
spices.
Finally add a good squeeze of
lemon juice which sours the flavour of the yogurt a little to sharpen the
taste.
When ready to serve sprinkle over
the chopped fresh coriander.
Serve with steamed basmati rice,
thick fluffy naan bread and lots of spicy lime pickle chutney.
https://www.heraldscotland.com/news/18662293.recipe-mary-continis-lamb-spinach-curry/?ref=rss
This coconut rice with salmon and cilantro sauce deserves a spot
in your regular recipe rotation
By Ann Maloney
Food reporter and editor
focusing on quick and easy home cooking
Coconut Rice With Salmon and
Cilantro Sauce
40 mins
4
One of the most gratifying experiences I can have as a food writer
occurs when readers send an email to tell me that a dish I’ve shared in Dinner in Minutes is
now part of their regular recipe rotation. I do a little happy dance in my desk
chair.
Inevitably, that recipe already is on repeat in my own kitchen
because it comes together quickly and is delicious, but also has that little
something extra — a surprisingly bold flavor, a touch of elegance or a sauce or
component that I find myself carrying over to other dishes.
[As a milk, a water or simply shredded, coconut adds
joy to these 5 recipes]
People who love to cook inevitably talk about food — a lot. If we
make something delicious, we have to tell someone about it, to bring them a
taste or at least share the recipe.
So, it wasn’t surprising that right after I started at The Post in
December, my new colleague Olga Massov shared a
recipe with me that she frequently served to her family: Coconut Rice With
Salmon and Cilantro Sauce from “The Kitchen Shelf” by Rosie Reynolds and Eve
O’Sullivan (Phaidon, 2016).
Scale and get a printer-friendly version of the recipe here.
Olga lent me the cookbook, and as I read through the recipe, I
thought this little number checks all the boxes. Yes, it has three parts: the
rice, the fish and the sauce, but each of those parts is easily executed.
The cookbook’s full title includes this phrase: “Take a few pantry
essentials, add two ingredients and make everyday eating extraordinary.” The
idea is that you use common pantry ingredients with just a couple of fresh
additions — in this case cilantro and fish — and you can put a scrumptious meal
on the table.
Although it was written four years ago, the cookbook fits in
perfectly with the way we are cooking during
the pandemic — from our pantries, with minimal extra shopping.
[Help dinner go swimmingly with these 8 salmon recipes]
The cookbook authors offer time-saving tips. For example, in this
recipe, they suggest two ways to cook the salmon. The faster and easier way is
to steam the fillets atop the rice as it cooks. If, however, you prefer a
crispy salmon skin, you can allow the rice to cook on its own and pan-fry your
salmon.
For me, however, the salmon is the least interesting thing here.
The rice cooked with softened onion, garlic and a pinch of sugar
in full-fat coconut milk is creamy and divine on its own. The cilantro sauce —
a whole bunch of the herb leaves whirred in a food processor with a syrup made
of water, sugar and crushed red pepper flakes — goes over the rice, but I
could just eat that up with a spoon.
When I realized that I have now made this dish several times and
have made the rice and cilantro sauce to go with other kinds of fish, broiled
shrimp and pan-fried skirt steak, I knew it was time to share it with you, too.
FOR THE RICE AND SALMON
1 tablespoon olive oil
1 medium onion (about 4 ounces), finely diced
1 clove garlic, finely minced
1 1/2 cups white basmati rice, rinsed until the water runs clear
1 (14-ounce) can full-fat coconut milk
1/4 teaspoon kosher salt
1/2 teaspoon granulated sugar
4 (3- to 4-ounce) skin-on salmon fillets
FOR THE SAUCE
Scant 1/2 cup water
1 1/2 tablespoons granulated sugar
1/2 teaspoon kosher salt, plus more to taste
1/2 teaspoon crushed red pepper, plus more as needed for serving
1 large bunch fresh cilantro, leaves and tender stems, coarsely
chopped
4 lime wedges, for serving (optional)
Step 1
Make the rice: In a large, lidded skillet or pan, heat the oil
over medium heat until shimmering. Add the onion and cook, stirring
occasionally, until it softens and just starts to brown, 8 to 10 minutes. Add
the garlic and cook until fragrant, 1 to 2 minutes. Add the rice and stir to
coat it in the oil. Add the coconut milk, then half-fill the empty can with
water and add it to the pan. Add the salt and sugar, bring to a boil, then
reduce the heat to low so the mixture is at a simmer and cover the pan.
Cook for 5 minutes, then uncover the pan. Carefully place the
salmon fillets on top of the rice, re-cover the pot and cook until the rice is
just tender, the salmon cooked, and the liquid has been absorbed, about 5
minutes more. (If the rice is not tender, but the salmon is cooked,
removed the fish, re-cover the pot and continue cooking for a few minutes
more.)
Step 2
Make the sauce: While the rice and salmon are cooking, in a small
pan over high heat, combine the water, sugar, salt and crushed red pepper and bring
to a boil. Lower the heat to medium and simmer the sauce until slightly reduced
and syrupy, about 5 minutes, then remove from the heat.
Place the cilantro in a food processor and pulse to chop.
Gradually pour in the syrup and pulse the cilantro until very finely chopped,
and the sauce is combined. Taste and adjust the seasonings; the sauce should be
slightly sweet, with a hint of heat. Add more crushed red pepper, sugar or
salt, as needed.
Step 3
To serve, transfer the salmon off the rice to a plate. Gently stir
the rice and divide the rice across 4 plates. Top with a salmon fillet and
drizzle the sauce over. Sprinkle with additional crushed red pepper flakes, if
desired, and serve with a wedge of lime, if using.
Step 4
Alternative for the salmon: If you prefer a pan-seared salmon
fillet, cook it separately from the rice. Season the fish with salt and pepper.
Heat a large nonstick skillet over medium-high heat until a drop of water
sizzles when it hits the surface. Add the fillets, skin side up, and cook until
just lightly browned, 1 to 2 minutes. Turn the fillets over and reduce the heat
to medium. Cook until the salmon looks almost cooked through, 2 to 4 minutes;
you can check using the tip of a sharp knife. You should see a slightly darker
center. The cooking time will vary depending on the thickness of the fillet.
With either fish preparation, if you prefer to serve the salmon
without the skin, it is easier to remove it after cooking the fish.
Adapted from “The Kitchen Shelf” by Rosie Reynolds and Eve
O’Sullivan (Phaidon, 2016).
Tested by Ann Maloney; email questions to voraciously@washpost.com.
Scale and get a printer-friendly version of the recipe here.
Did you make this recipe? Take a photo and tag us
on Instagram with #eatvoraciously.
Browse our Recipe Finder for more than 9,000 Post-tested recipes
at washingtonpost.com/recipes.
Nutrition
Calories: 619; Total Fat: 30 g; Saturated Fat: 20 g; Cholesterol:
47 mg; Sodium: 332 mg; Carbohydrates: 65 g; Dietary Fiber: 2 g; Sugars: 6 g;
Protein: 24 g.
Essential Cookbooks
Join our virtual cookbook club and
sample recipes from our 10 must-reads — then decide what to add to your shelf.
Every Monday for 10 weeks.
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Online delivery is ‘new normal’ in Middle
East says ride-hailing firm behind grocery platform
- Last updated on GMT
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UAE-based ride-hailing and food delivery company Careem, which recently launched its grocery delivery service (Careem Shops) has revealed about 40% of its 33 million users are now on the new service.
Careem Shops was first launched in Dubai in April 2020, in the middle of the COVID-19 pandemic, and has since expanded to Saudi Arabia (Jeddah, Dammam, Riyadh), Jordan (Amman) and Pakistan (Karachi).
Between April to June 2020, the firm observed a higher
demand for daily necessities such as fresh produce and frozen goods.
Gheed El Makkaoui, general manager of Careem UAE told FoodNavigator-Asia:
“Online
grocery shopping became the norm for many UAE consumers starting March this
year, we believe it is part of our new normal now given the convenience, safety
and ease it offers.”
Merchants on Careem Shops include Lulu Hypermarket,
7-Eleven, 800-Pharmacy, Al Manara Pharmacy, Nescafe, The Pet Corner, Rootz Organics,
Four Seasons Pharmacy and others.
It works in the same way as its food delivery service
(Careem Now), where users choose their preferred merchants, add items to their
basket and checkout.
The groceries will then be delivered straight to
consumers’ house, with an average wait time of 45 minutes.
The deliveries are made by both Careem’s ride-hailing
drivers as well as its food delivery drivers. El Makkaoui said: “Due to
the pandemic and total lock down in almost all cities across the region, we
found deliveries as an opportunity for ride-hailing captains to make an earning.”
Captain is the name that Careem gives to its drivers.
El Makkaoui told us the firm was in discussions with
other supermarkets, pharmacies, roasteries and pet shops to add onto its platform,
and hoped to expand this service to more cities in the future.
Accelerate
digital
This online grocery service is part of Careem’s ‘super
app strategy’. Recently, the firm announced a US$50 million investment to
develop its super app, by combining all its transport (car, bike, rickshaw),
product (food, grocery) and money (bill payment, peer-to-peer transfer)
services into one platform.
El Makkaoui told us that the investment would be used
to expand its store offerings and ensuring a fast, safe and hygienic delivery,
amidst the ongoing pandemic.
Mudassir Sheikha, co-founder and chief executive
officer at Careem said its super app strategy aims to be similar to those in
China, Europe and US, where 20 to 40% of spending were done on digital
platforms, unlike the Middle East region which only sees 2 to 3% of digital
payments. The ongoing pandemic is also said to accelerate the adoption of
digital payments.
On the future, Sheikha said: “We see
many tech companies start in one place and expand to many others. Amazon
started by selling books and they do many more things, but they still sell
books. For us, transportation, ride-hailing is at the core of who we are, but
from that base we are going to offer more and more services to make it easy for
people to lead their lives more holistically and focus on things that matter.”
Careem’s ride-hailing service is currently present in
100 cities, with 33 million users, and more than one million drivers.
Wamda earlier reported that Careem had suffered an 80%
drop in revenues during the lockdown period, resulting in 31% of its staff laid
off.
Mr. Richard Odzor, Chairman of Akatsi South district rice
farmers Association has appealed to individuals, corporate bodies and
government to come to their aid as a result of poor rainfall that led to poor
yields in rice production.
Over 4000 acres of rice farms have remained dried up due to the sudden seizure
in rainfalls during the farming season.
"For the past three months and over, we never experienced any rainfall and
this is causing huge losses to our farmers" Mr. Odzor said.
He explained, the situation could lead to high financial burden on the farmers
since loans were procured to undertake the venture.
"We spend almost GH¢ 2,500 every season to complete one acre of the rice
farm for labour, fertilizer, rice seed, irrigation, herbicide, insecticide
among others," he added.
Mr. Odzor expressed his frustrations when the Ghana News Agency (GNA) visited
some of the affected farms in the District.
The areas include, Moryi, Live, Klokpe, Atsiekpui, Worwoenu, and others.
"Our worry is how our indebtedness to our financiers would be settled
since nothing would be generated from our farming activities for this very
season," he lamented.
Former Assemblymember for Live electoral area, Mr Francis Susu Dogah and the
Chairman of Lorlornyo Rice Farmers Association also expressed fear this could
bring hardship to them, their dependents due to the losses.
He said, several appeals were made to Mr Leo Nelson Adzidogah, District Chief
Executive of the area, the National Disaster Management Organisation (NADMO)
and the District Director of Agriculture.
"We remain hopeful they will come to our aid," he said.
Meanwhile, Mr. Benjamin Korkortsi, District Director of Agriculture for Akatsi
South in an interview with the GNA, said the situation needed urgent
intervention and that his outfit would tour the affected areas for further
assessment and recommendations.
Some other groups such as Norvisi Rice Farmers, Progressive Rice Farmers and
Mashie Rice Farmers Associations have been hit by the unfortunate situation and
appealed for irrigation dams.
The GNA also observed acreages of maize farms were affected by lack of
rainfall.
Disclaimer
https://www.ghanaweb.com/GhanaHomePage/business/Akatsi-South-Rice-farmers-appeal-for-support-1042504
Cameroon: Rice importers
suspected of fraudulently reexporting to neighboring countries
-
Wednesday,
26 August 2020 13:44
(Business in Cameroon) - In Cameroon, the
national institute for statistics INS suspects rice importers of fraudulently
reexporting their products to Nigeria. Indeed, in 2019, Cameroon’s rice imports
surged, inexplicably affecting the country’s food products import expenditures
(up by 14.9% to XAF807.5 billion).
The
institute notes that the volume of rice imported by the country rose from
561,112 tons to 894,486 tons (up by 59.4%). This cost the country XAF231.6
billion, up by 60.9% compared to the value of rice imports in 2018.
“Given
the dynamism of the local production, we can suspect that the surplus is
reexported to neighboring countries, Nigeria notably due to the importance of
its domestic market,” the INS comments. These reexportations are
facilitated by the exemptions granted by the Cameroonian government for rice
imports. Thus, the operators import rice duty-free and reexport it to increase
their profits.
Because
of that practice, the INS announces that it is elaborating a permanent
mechanism to monitor trans-border trades. The mechanism will provide an
overview of Cameroon’s transborder trades and help curb these unfair
reexportations.
S.A.
Dubai sets up trading platform to connect with Indian farmers
Wed
26 Aug 2020 06:02 PM
Dubai Multi Commodities Centre
launches platform as the UAE seeks to enhance its food security status
The Dubai Multi Commodities Centre’s platform,
named Agriota and developed with India’s CropData Technology, will enable
trading in cereals, pulses, oil seeds, fruits, vegetables, spices and condiments.
A freezone in Dubai has
established an agricultural trading platform to connect Indian farmers with
food companies in the UAE, as the Gulf Arab country seeks to enhance its food
security amid disruption of supply chains caused by the coronavirus.
The Dubai Multi Commodities
Centre’s platform, named Agriota and developed with India’s CropData
Technology, will enable trading in cereals, pulses, oil seeds, fruits,
vegetables, spices and condiments.
The UAE and most other Gulf
states import the bulk of their food, largely because their arid climates make
crop and livestock cultivation difficult. They also depend on overseas supplies
of medical, consumer and industrial products.
The UAE has “the ultimate goal of
positioning our nation as a world leading hub in innovation-driven food
security,” Ahmed Bin Sulayem, DMCC’s chief executive officer, said in a
statement.
The government has taken several
steps to ensure uninterrupted access to supplies since the virus spread around
the world. A food-security council coordinates official efforts, including the
stockpiling of essential goods.
The country is also looking to
farm rice to reduce its reliance on purchases from abroad.
Monsoon Boosts Expectation of
Bumper Basmati Rice Crop in 2020-21 Season
India’s basmati production is
likely to increase by 7%. Monsoon boosts
expectations of Bumper basmati rice crop in the 2020-21 season.
Strong
Prospects for Exports
According to All India Rice Exporters Association demand for
Indian basmati rice is high from Middle Eastern countries, including Iraq and
Saudi Arabia. Besides, East European countries are keen to buy the Indian
aromatic variety. Vinod Kaul, Executive Director of AIREA, said that despite
the pandemic, the sowing of Kharif crop was
completed with local and migrant labourers who returned after restrictions
eased. However, India has stopped shipments to Iran due
to payment issues.
Punjab
Expecting Bumper Crop
The area under Basmati this year is
4% more than the previous year’s coverage and the highest in five years in
Punjab. However, the state is still short of meeting the target of covering 7
LH hectares under Basmati. Farmers prefer
growing paddy than Basmati as Basmati is a non-MSP crop. The fluctuation in
prices encourages farmers to grow paddy. The state has registered 6,50,150
hectares under Basmati till now.
Prices to Fall Further
A report by CRISIL Ratings said
that paddy prices
are likely to fall 17% in the current fiscal from an average Rs 36 per kg. Good
monsoon and stable demand will lead the rice industry to a good year. Also,
several basmati companies are in for a 100-150 bps margin boost owing to low
prices of paddy. Despite the pandemic, several
countries, including the UK and the USA, have been importing basmati from
India.
Export Worries Due to Iran
Though trade continues with other
countries, uncertainty looms overpayment due to exporters from Iran. The
Central Bank of Iran has slowed down the allocation of currency to Iran traders
against which they were importing from Iran. It bought 1.3 million tonnes the
previous year, ordering over 30% of India’s rice. The country is likely to
register a 20% lower volume basmati trade with Iran. Also, tea exports will
come to a halt in case the payment issues remain unresolved.
In all, the Indian rice
industry is optimistic about rice trade this year due to high demand and
excellent production.