Daily

Global Rice E-Newsletter

www.ricepluss.com

January 27, 2015

Volume 5, Issue I

News Detail
COA, IRRI ink rice research pact in Philippines
Publication Date01/27/2015

Taiwans Council of Agriculture signed a memorandum of

understanding with Philippines-based International Rice
Research Institute Jan. 26 in Los Banos, paving the way
toward greater collaboration on related research.Scheduled to
take effect next year, the pact requires both sides to boost
bilateral personnel exchanges relating to joint research
promotion, as well as collaborate on rice breeding and varietal
improvement.
COA Deputy Minister James Sha said Taiwan will contribute its experience with best practice
in rice cultivation to the IRRIs pool of knowledge. This will advance development of
production techniques to benefit rice-growing countries in East Asia.Operating on the campus
of University of the Philippines at Los Banos, IRRI was established in 1960 as part of efforts to
achieve the U.N. Millennium Development Goals of reducing poverty and hunger through
environmentally sustainable rice farming.
Taiwan has maintained a close partnership with IRRIhome to the worlds largest rice gene
banksince its inception, with local agricultural experts such as T. T. Chang, Paul C. Ma and
Shen Tsung-han playing an instrumental role in launching the nongovernmental organization.In
addition, the International Rice Germplasm Center of IRRI was renamed T. T. Chang Genetic
Resources Center in 2006 to honor the Academia Sinica members contribution spanning three
decades.IRRI Director-General Robert Zeigler said the memorandum allows the COA and the
institute to engage in advanced cooperation and take relations to the next level going forward.
(YHC-JSM)
Image: COA Deputy Minister James Sha (front left) and IRRI Director-General Robert Zeigler celebrate
the signing of a memorandum of understanding boosting two-way collaboration on agricultural research
Jan. 26 in Los Banos, the Philippines. (CNA)
Source with thanks:http://www.taiwantoday.tw/ct.asp?xItem=226846&ctNode=445

Agriculture an Overtake Oil

Posted by: Deolu January 27, 2015
Dr. Akinwumi Adesina, the minister of agriculture and rural development, states that the
agricultural sector would topple the nations oil sector in no distant time, the Leadership
informs.Adesina says that this is feasible because the Agricultural Transformation Agenda
(ATA) which is a brainchild of President Goodluck Jonathans Transformation Agenda, is
geared towards ushering in agricultural sector-led economic growth.Speaking on the AGRIFEST
2015, Adesina stated that as the price of crude oil plummets, he is convinced that agriculture will
be the new mainstay of the nations economy.Adesina revealed that one of the last achievements

of his ministry is disbursement of N122million grant to 27 Nagropreneurs across the six geopolitical zones as a measure of boosting agricultural production and also promoting its newly
established project, the Youth Employment in Agriculture Programme (YEAP).
Noting that Nigerias greater future for inclusive
growth lies in agriculture, he said food production
had risen massively and as a nation, Nigeria has
produced additional 21 metric tons of food within the
last three years.Adesina also listed other milestones
of the ministry under him to include the
establishment of Marketing Corporation, nationwide
census of farmers and supply of subsidised fertilisers
to 14million farmers.He further explained that the
elaborate event is aimed at creating a distinct
platform that will further boost the countrys agriculture, and added that it will also keep
Nigerians abreast of the latest evolution in technologies and food production.
President Goodluck Jonathan commended the minister at the
event, saying agriculture is now the lifeline for
Nigeria.Jonathan said: As crude oil prices decline, we must
create new wealth from the richness of our soils, the vastness
of our rivers and the abundance of our cheap labour. We will
produce more, and we will industrialise the agricultural
sector.When I appointed Dr Akinwumi Adesina as the
minister of agriculture, I charged him to turn agriculture
around. My vision was clear turn agriculture away from
being a sector for managing poverty to one for creating wealth. We now see agriculture as a
business, not as a development programme. Noting that the rice revolution is taking place across
the country, the president said while high quality Nigerian rice is now competing favourably
with imported rice in the markets, rice importers cannot hold the country hostage.He added:
Nigeria, our dear country will not be held hostage by rice importers.
There will be no sacred cows under my watch. All those owing Nigeria on rice import duties
must pay.Rice farmers across the country have a new lease of life, due to the transformation
taking place in the sector. Over 6 million rice farmers have received improved rice seed varieties,
boosting domestic rice production by an additional 7 million metric tons.Our rice millers have
taken advantage of these new opportunities, and the number of integrated rice mills has
expanded from 1 (one) at the beginning of this administration, to 24 today. And they are all here
today. I celebrate you all. I eat Nigerian rice and can tell you it is better than imported rice.
Source with thanks:http://www.informationng.com/2015/01/agriculture-%D1%81an-overtake-oil.html

Rice farmers want protection against importers

BY OUR REPORTER ON JANUARY 27, 2015BUSINESS

From DAVID ONWUCHEKWA, Nnewi

The Managing Director/CEO of Stine Rice Industries, Amichi,
Anambra State, Chief Akai Egwuonwu, has called on the Federal
Government not to relent in its effort to checkmate excessive
importation of rice to make local rice farmers thrive.Egwuonwu,
who expressed his worry at his factory site in Amichi yesterday,
said some local rice producers were becoming stifled because of
the sharp competition generated by rice importers, a situation that
had caused excess supply over demand and subsequent increase in
the cost of production for the farmers.
He lamented that rice farmers in the country were
not selling at the right prices and pleaded that the
recent rice allocation to millers by the Federal
Ministry of Agriculture and Rural Development
should be adjusted. He complained that his rice
mill, adjudged to be one of the biggest in the
country, was allocated only 30,000 metric tonnes
as against its annual production capacity of
140,000 to 150,000 metric tonnes.He, however,
explained that the committee members that made
the allocation confessed that they did not have the actual capacity details of the mill.The rice
miller said he was hopeful that the adjustment would be made in subsequent allocation to
consider real production capacity of every mill.
He commended the Minister of Agriculture and Rural Development, Dr. Akinwunmi Adesina,
who he said had taken measures to checkmate the activities of rice importers to help local
farmers have a good share of the market.He is like a father to us, Egwuonwu admitted, saying
the only way to encourage self-sufficiency in food production was to give all the needed
assistance to local farmers.He regretted that banks were not really helping farmers as they
should. Generally speaking, banks have not been best partners to those in this sector. Their
facilities are stringent because of the short time require to pay back loans. The banks are
stampeding the agricultural sector, he noted.
Source with thanks:http://sunnewsonline.com/new/?p=102064

Climate-ready rice lab to rise in Laguna

Poised to become one of the most modern research facilities in the world, it will help scientists
prepare rice for climate change

Pia Ranada
Published 6:02 PM, Jan 27, 2015
Updated 6:02 PM, Jan 27, 2015

NEW FACILITY. The Lloyd T Evans Plant Growth Facility will feature the latest technology to help scientists
make rice ready for the worst of climate change. Pia Ranada/Rappler

LAGUNA, Philippines Scientists and government officials led the

groundbreaking ceremony for a new research facility that will be devoted to
studying the impacts of climate change on agriculture.The ceremony took place
on Tuesday, January 27, inside the International Rice Research Institute (IRRI)
compound where the building will rise.Named the Lloyd T. Evans Plant Growth Facility, it is set
to become a "state-of-the-art" building with 8 controlled-environment glasshouses, plant growth
chambers, and plant processing and potting laboratories.
But the facility's most dominant feature will be a
large seed processing and storage facility.The
construction of the $10-million facility, named after
a world-renowned Australian plant physiologist,
was funded by the Australian government. It is
expected to be operational by the end of 2015, said
IRRI Deputy Director General for Research
Matthew Morell.
Although there are similar controlled-environment laboratories in Australia and Europe, this new
IRRI facility "will be one of the most modern," said Morell.What sets it apart are the latest in
sensor technology, computing power for collecting data and more precise controls for changing
environmental parameters. It is also one of the few facilities to be fine-tuned for rice
research.Equipped with such technology, the facility will allow scientists to study how rice is
affected by changes in the environment. "It's important for us to predict future climates and
prepare plants or rice crops so they can flourish in those environments," said Morell.
Predicting nature
The controlled-environment glasshouses and plant growth chambers will enable researchers to
manipulate temperature, relative humidity, light intensity, photoperiod systems, water
management systems, and precise control of atmospheric gases.This would give them a more

accurate picture of how rice plants would be affected by wide-ranging environments, even the
extreme environments that may become the norm in a world with a rapidly changing climate.

BREAKING NEW GROUND. Scientists and government officials lead the ground-breaking
ceremony of a new rice research facility that will be operational by end of 2015. Pia
Ranada/Rappler
Rice is a particularly important crop to safeguard against the destructive effect of global
warming. The crop is a staple food for 3.5 billion people around half of the world's population.
In Asia, rice contributes up to 70% of the calorie intake of the impoverished who number around
600 million, according to IRRI.During the ground-breaking ceremony, Senator Cynthia Villar,
chairperson of the Senate committee on agriculture, said that the research center will directly
benefit Filipino farmers."This is very good for us because we are the number one at risk due to
climate change. They will produce plants that will be adaptable to every climate.
"Global warming is seen to cause more intense droughts and more destructive typhoons. It may
bring about a world with a lot of carbon dioxide in the atmosphere and where salty ocean water
may reach crop fields thus affecting their productivity.Some general trends already being felt are
increases in temperature, longer dry seasons, colder night time temperatures and more exposure
to destructive typhoons all of which have grave consequences on food crops.
More collaboration
Scientists all over the world have conceded that climate change is a major threat to food
security all over the world.Australian funding for the facility is partly due to effects already
being felt, said Morell."Being one of the driest continents on the Earth, it has first-hand
experience of climate change. It has a rice industry that has been affected by recent droughts.
This will be a facility that Australia should benefit from just as much as other rice-producing
countries."Morell hopes that such a laboratory can encourage more scientific work on
rice.Hundreds of scientists are expected to make use of the equipment. Such a high-tech
laboratory may also serve as a "magnet" to attract more collaborators from different research
institutes all over the world. Rappler.com
Source with thanks:http://www.rappler.com/science-nature/82103-lloyd-evans-facility-irri-climate-change

Efficient rice farming to curb emissions

New water- and cost-efficient farming techniques will allow Vietnam to reduce greenhouse gas
emissions in wet rice production by 15 to 20 percent by 2020, said Mai Van Trinh, Director of
the Ministry of Agriculture and Rural Development's Institute for Agricultural Environment.
Trinh was speaking at a recent conference on the first phase of the Project on Reduced CH4
Emissions in Wet Rice Cultivation in Vietnam , jointly held by his institute and the Manila-based
International Rice Research Institute in Hanoi .To achieve the target, the ministry will use the
System of Rice Intensification (SRI), a plan in which farmers will increase productivity, quality
and economic effectiveness, while reducing pesticides and nitrogenous fertilisers, he said.In
addition to these measures, the ministry will also encourage farmers to use green production
methods. The sector will also apply Good Agricultural Practices (GAP) in cultivation, which
means using techniques that consume less fertilisers and water, employing better land
preparation techniques and reducing methane emissions.Another technology mentioned at the
conference was Alternative Wetting Drying (AWD).
"Actually, to reduce greenhouse gas emissions in rice growing, the institute has tried AWD while
implementing a project on reducing CH4 emissions in wet rice cultivation," Trinh said, adding
that AWD is no longer strange to rice growers in Vietnam, as it has already been incorporated in
several other programmes, including SRI.Vu Duong Quynh, the project coordinator, said a major
challenge with SRI is water management. Most problems are caused by the unfavourable terrain
in many areas, fragmented rice fields and a lack of cooperation between irrigation staff and
farmers. This is especially troublesome considering the fact that efficient irrigation is the best
way to reduce greenhouse gas emissions.
To overcome these difficulties, Quynh said that in its first phase, from October 2014 to June
2016, the project intends to collect lessons learnt from efficient irrigation models and to gather
data on land and infrastructure in each province, to make a water-efficient irrigation map."When
looking at this map, one can read out which province can apply AWD, as not all types of land are
suitable for this technology," Quynh said. In the second phase, the project will incorporate other
technologies.
VNA
Tags:rice farming to curb emissions,

source with thanks:http://english.vietnamnet.vn/fms/environment/122110/efficient-rice-farming-to-curbemissions.html

Thailand to dump a mountain of rice as market suffers glut

PUBLISHED: JANUARY 27, 2015 06:10 PM

With record low prices for rice and a massive stockpile to be disposed on the market, rice futures
are expected to remain depressed, January 27, 2015. File pic

BANGKOK, Jan 27 In a government building outside

Bangkok, along the murky Chao Phraya River, Thailands
ruling junta is preparing to unload a mountain of rice on an
already oversupplied world. And theres more on the
way.The biggest exporter stockpiled 17.8 million metric
tons after former Prime Minister Yingluck Shinawatra spent
US$27 billion (RM97 billion) since 2011 buying at abovemarket prices to aid farmers. The move threatened the nations credit rating and helped fan
months of protests.
She was ousted in May by military leaders, who now plan to auction the grain over two years,
with 1 million tons set for sale at the Department of Foreign Trade on January 29.With global
output poised to be near last years record, Thailand will ship more this year than any country
ever, US Department of Agriculture data show. The staple for half the world plunged to a fouryear low in Chicago, helping cut food costs that the United Nations says are the lowest since
2010.
We have plenty of rice, said Mamadou Ciss, whos traded the grain since 1984 and is president
of Alliance Commodities (Suisse) SA in Geneva. Thailand still has huge stocks available,
compared with world trade. Anything more than 10 million tons will take time to clear. Prices
will stay weak.Global reserves are 30 per cent above a 10-year average, UN Food &
Agriculture Organisation data show. Production for 2014-2015 in the US, the fifth-largest
exporter, is seen rising by the most in a decade, expanding global grain inventories already at alltime highs following record global harvests of wheat, corn and soy.
Buying spree
The Thai buying spree from November 2011 to February 2014 filled more than 1,000
warehouses and left inventories equal to about 42 per cent of what the worlds importers bought
in 2014. Exports from the country will surge 9.7 per cent to a record 11.3 million tons this year,
USDA data show.
Protest groups that opposed Yinglucks government say the rice-buying program was part of a
pattern of corruption by politicians allied with her brother, Thaksin Shinawatra, who was
deposed as prime minister in a 2006 coup. Since Thaksins ouster, the country has been divided
between supporters of the Shinawatra family, mostly farmers in the north and northeast, and
opponents who are mostly urban and middle-class.Yingluck was impeached on January 23 for
failing to heed warnings about the spiraling cost of rice subsidies, which the FAO said were
unsustainable. She also faces criminal prosecution. Yingluck denies the corruption charges and

defends the subsidies, saying they raised wages for the millions of farmers who voted for her
party in the 2011 elections and boosted economic growth.
Every election
Junta leader Prayuth Chan-Ocha is seeking to clear the warehouses without torpedoing the
market, saying on January 26 the government wants to accelerate sales to reduce inventory costs
while ensuring prices are acceptable. Since government buying began, Thai 5 per cent broken
rice, an Asia benchmark, tumbled 35 per cent from a three-year high of US$647 a ton in 2011 to
US$420 on January 21. On the Chicago Board of Trade, futures reached US$10.81 per 100
pounds on January 26, the lowest since 2010, and traded at US$11.045 today.
The government may get unexpected help from a dry spell thats reducing output. In the central
basin north of Bangkok, irrigation officials shut the taps after reservoir levels fell to a 15-year
low. Farmers are growing the smaller of two annual harvests that normally accounts for a quarter
of production. The lack of water may cut output 31 percent to 6.7 million tons, the lowest in a
decade, government data show.
Welcome development
The reduction in production this season would be a welcome development for the Thai
government, whose priority is now to get rid of the surpluses, said Concepcion Calpe, a senior
economist at the Rome-based FAO.Kwanchai Mahachuenjai, a 54-year-old farmer in Ayutthaya,
said he cut planting almost in half to 120 rai (47.4 acres) because hes getting less water. Yields
will drop to 300 to 400 kilograms per rai from 700 to 800 kilograms, he said.
A decline in the quality of the stockpiles also may limit the impact of sales on prices, which
reflect food-grade grain. An audit in 2014 found about 80 per cent was substandard and almost 4
per cent was poor quality, destined for non-food uses.
Most is still food-grade quality and can be sold as long as its kept dry and fumigated, said
Somkiat Makcayathorn, secretary-general of the Thai Rice Exporters Association.While the
government doesnt want to buy rice, it plans other support. About 40 billion baht (RM4.3
billion) has been earmarked for payments to the poorest farmers, and officials are encouraging
the growing of other crops, including sugar.For now, the government is focused on unloading 10
million tons this year and 7.8 million tons in 2016. T

his weeks auction will be the biggest amount since 2004, said Duangporn Rodphaya, directorgeneral at Department of Foreign Trade.Its good timing to sell because of low supply ahead of
second-crop harvests, Somkiat said. Prices will stay under pressure until the government clears
the huge inventories. Bloomberg
source with thanks:http://www.themalaymailonline.com/money/article/thailand-to-dump-a-mountain-of-riceas-market-suffers-glut#sthash.rS90qcXu.dpuf

Thailand gives priority to new rice markets hunt

P e t c h a n e t P r a t r u a n g k r a i , The Nation
Publication Date : 27-01-2015

The Thai Rice Exporters Association

will join forces with the Commerce Ministry

for a business mission to potential new rice-import markets such as Iran, Iraq, and other Middle
East countries. The move will be a bid to increase rice sales this year in the face of fears that
falling oil prices will affect the purchasing power of major importers of Thai rice.TREA
president Charoen Laothamatas said the association was scheduled to join many trade missions
with the Ministry of Commerce because Thailand needed to aggressively promote its rice plans
and activities to "knock on the doors" of potential new importers.
"Due to the lowering oil price, some major import countries such as Nigeria and other countries
in Africa, where their incomes have relied mainly on the oil price, could be affected and cause a
lower order for rice," he said."The ministry and the association thus have plans to promote more
rice sales to other potential markets such as Iran, Iraq, and other countries in the Middle East to
encourage them to buy Thai rice."Charoen said that Iran and Iraq used to be major Thai rice
importers, but they suspended imports for a few years due to a defaulted contract with a private
exporter. Now was a good time to boost the confidence of those countries, he added.
Under the Commerce Ministry plan, Commerce Minister General Chatchai Sarikulya will visit
Hong Kong, the United Arab Emirates, Kuwait, Oman, Egypt, Italy, and Indonesia. Charoen said
that rice exports this year should be as high as last year - up to 11 million tonnes - due to high
demand in the world market and drought problems in some rice-producing countries.He said the
price of Thai rice was expected to be steady this year. The price has climbed slightly over the
past few months due to the strengthening baht. At the moment, the export price of rice is quoted
at US$405-$410 for 5 per cent white rice, while Vietnamese rice is quoted $370 per tonne.
source
with
71028.html

thanks:http://www.asianewsnet.net/Thailand-gives-priority-to-new-rice-markets-hunt-

S. Korea seeks to ship rice to China as it moves to lift export

restrictions
Published : 2015-01-27 09:35,Updated : 2015-01-27 09:35
South Korea is seeking to ship rice to the vast Chinese market as it moves to lift export
restrictions on the staple grain, officials said Tuesday.The agriculture ministry said it was
seeking revisions to the outdated laws and clauses that restrict the volume and price of rice
shipped abroad to open up the export market starting as early as March. The restrictions had been
put in place when the country did not produce enough rice to feed its own people, which is no
longer the case.Last year, the country's rice harvest hit 4.24 million tons, much higher than the
annual consumption of about 4 million tons.
The country exported only 2,000 tons of rice for all of last year. Ministry officials say exporting
rice can help balance out supply and demand of the grain and stabilize domestic prices,
especially after South Korea agreed to tariffed rice imports starting this year.An official said
Seoul has been asking China since 2009 to allow South Korean rice into the country, but Beijing
has yet to start studies on disease and insect pest risks required for such trade.Beijing is a net
importer of grain products, and with demand for higher quality foodstuffs, it could become a
good overseas market, officials say."Rice poses less disease and insect risks compared to fruits
and vegetables," the ministry official said.
He pointed out that the government asked China to conduct risk assessments twice last year and
has used various channels to nudge the country to consider buying rice from South Korea.Local
rice producers have also said that they may be able to ship rice to China if all restrictions are
lifted. "Because of the high price of locally produced rice, the grain can only be sold in select
markets and to Koreans living abroad,"another official said. He pointed out that Japan slaps very
high import tariffs on rice, making exports to that country unlikely and leaving China as the only
viable market. (Yonhap)
source with thanks:http://www.koreaherald.com/view.php?ud=20150127000223

Philippines plans to bring in up to 500,000 tons rice

THE PHILIPPINES plans to import up to 500,000 tons of rice for deliveries starting in
March to boost its stockpiles ahead of the lean harvest season, government and trade sources
said.The state grains procurement agency, National Food Authority (NFA), wants the
shipments to arrive in two batches of 200,000 tons and one for 100,000 tons, to be completed
by May, a government official with knowledge of the plan told Reuters.

The official, who is not authorized to speak to the media about the plan, said the NFA might go
for a government-to-government deal, similar to its transactions last year with Vietnam and
Thailand.Local rice traders, however, are hoping the NFA will give them import permits for the
planned purchases, which are tariff-free, a Manila-based trader told Reuters.Fresh demand from
the Philippines could give a boost to falling rice prices in top producers and sellers Thailand and
Vietnam, the Philippines key suppliers. The Philippines usually buys rice early in the year to
prepare for the lean harvest season that begins in July.
Private traders have been allowed to import up to 187,000 tons of rice this year, with tariffs as
high as 35%, under the governments Minimum Access Volume-Omnibus Rice Importation
program.Despite record-high domestic harvests in recent years, including last years output, the
Philippines remains one of the worlds biggest rice buyers. The Philippines bought more than 1.8
million tons from Vietnam and Thailand after typhoon Haiyan destroyed crops in November
2013, prompting the government to release supplies from state stockpiles for relief operations
and to arrest the sharp increase in local retail prices.
Last years rice purchases were the biggest in four years. This years imports may hit 1.6 million
tons, based on a United States Agriculture department forecast. The government official said,
however, that 2015 imports may be less than 1 million tons as local retail prices have eased from
the record highs seen at mid-2014. Reuters

source with thanks:http://www.bworldonline.com/content.php?section=TopStory&title=phl-plans-tobring-in-up-to-500000-tons-rice&id=101657

Thai Junta Unloading Mountain of Rice Amid World Surplus

27.01.2015
In a government building outside Bangkok, along the murky Chao Phraya River, Thailands
ruling junta is preparing to unload a mountain of rice on an already oversupplied world. And
theres more on the way.The biggest exporter stockpiled 17.8 million metric tons after former
Prime Minister Yingluck Shinawatra spent $27 billion since 2011 buying at above-market prices
to aid farmers. The move threatened the nations credit rating and helped fan months of protests.
She was ousted in May by military leaders, who now plan to auction the grain over two years,
with 1 million tons set for sale at the Department of Foreign Trade on Jan. 29.With global output
poised to be near last years record, Thailand will ship more this year than any country ever, U.S.
Department of Agriculture data show.
The staple for half the world plunged to a four-year low in Chicago, helping cut food costs that
the United Nations says are the lowest since 2010.We have plenty of rice, said Mamadou Ciss,
whos traded the grain since 1984 and is president of Alliance Commodities (Suisse) SA in

Geneva. Thailand still has huge stocks available, compared with world trade. Anything more
than 10 million tons will take time to clear. Prices will stay weak.Global reserves are 30 percent
above a 10-year average, UN Food & Agriculture Organization data show. Production for 20142015 in the U.S., the fifth-largest exporter, is seen rising by the most in a decade, expanding
global grain inventories already at all-time highs following record global harvests of wheat, corn
and soy.
Buying Spree
The Thai buying spree from November 2011 to February 2014 filled more than 1,000
warehouses and left inventories equal to about 42 percent of what the worlds importers bought
in 2014. Exports from the country will surge 9.7 percent to a record 11.3 million tons this year,
USDA data show.Protest groups that opposed Yinglucks government say the rice-buying
program was part of a pattern of corruption by politicians allied with her brother, Thaksin
Shinawatra, who was deposed as prime minister in a 2006 coup. Since Thaksins ouster, the
country has been divided between supporters of the Shinawatra family, mostly farmers in the
north and northeast, and opponents who are mostly urban and middle-class.
Yingluck was impeached on Jan. 23 for failing to heed warnings about the spiraling cost of rice
subsidies, which the FAO said were unsustainable. She also faces criminal prosecution. Yingluck
denies the corruption charges and defends the subsidies, saying they raised wages for the
millions of farmers who voted for her party in the 2011 elections and boosted economic growth.
Every Election
Junta leader Prayuth Chan-Ocha is seeking to clear the warehouses without torpedoing the
market, saying on Jan. 26 the government wants to accelerate sales to reduce inventory costs
while ensuring prices are acceptable. Since government buying began, Thai 5 percent broken
rice, an Asia benchmark, tumbled 35 percent from a three-year high of $647 a ton in 2011 to
$420 on Jan. 21. On the Chicago Board of Trade, futures reached $10.81 per 100 pounds on Jan.
26, the lowest since 2010, and traded at $11.035 on Tuesday.The government may get
unexpected help from a dry spell thats reducing output. In the central basin north of Bangkok,
irrigation officials shut the taps after reservoir levels fell to a 15-year low. Farmers are growing
the smaller of two annual harvests that normally accounts for a quarter of production. The lack of
water may cut output 31 percent to 6.7 million tons, the lowest in a decade, government data
show.
Welcome Development
The reduction in production this season would be a welcome development for the Thai
government, whose priority is now to get rid of the surpluses, said Concepcion Calpe, a senior
economist at the Rome-based FAO.Kwanchai Mahachuenjai, a 54-year-old farmer in Ayutthaya,
said he cut planting almost in half to 120 rai (47.4 acres) because hes getting less water. Yields
will drop to 300 to 400 kilograms per rai from 700 to 800 kilograms, he said.
A decline in the quality of the stockpiles also may limit the impact of sales on prices, which
reflect food-grade grain. An audit in 2014 found about 80 percent was substandard and almost 4
percent was poor quality, destined for non-food uses.Most is still food-grade quality and can be
sold as long as its kept dry and fumigated, said Somkiat Makcayathorn, secretary-general of the

Thai Rice Exporters Association.While the government doesnt want to buy rice, it plans other
support.
About 40 billion baht ($1.2 billion) has been earmarked for payments to the poorest farmers, and
officials are encouraging the growing of other crops, including sugar.For now, the government is
focused on unloading 10 million tons this year and 7.8 million tons in 2016. This weeks auction
will be the biggest amount since 2004, said Duangporn Rodphaya, director-general at
Department of Foreign Trade.Its good timing to sell because of low supply ahead of secondcrop harvests, Somkiat said. Prices will stay under pressure until the government clears the
huge inventories.
source with thanks:http://www.blackseagrain.net/novosti/thai-junta-unloading-mountain-of-rice-amidworld-surplus

USA Rice Inspires Young Minds to 'Think Rice'

ARLINGTON, VA -- This week, teachers at more than 2,800 elementary schools in rice
producing counties across the six states will receive the new
Think Rice educational lesson plan. Developed with the award-winning curriculum experts at
Young Minds Inspired (YMI), this education kit is all about U.S.-grown rice and meets national
standards for 3rd - 6th grade students in social studies, science, and nutrition."From the focus
groups, we learned that many people assume rice comes from Asia and they're unaware of the
connection between rice growing and conservation," said Byron Holmes, an Arkansas rice
farmer and USA Rice Federation Nutrition Subcommittee chairman.
"The lesson plans address these areas and also reinforce how U.S. rice can help families meet
MyPlate healthy eating guidelines."The Think Rice kit contains three student activities, a
classroom poster, and a teacher's guide. Students will learn how rice growing has contributed to
American history since colonial times, and how today's U.S. rice farmers not only help sustain
wetland habitats, but also help reduce carbon emissions by providing a close-to-home source of
good nutrition.
There is also a recipe-building activity to demonstrate the versatility of U.S. rice and its role in a
balanced diet."The education programs we do across the rice states are great events with
encouraging results, and we will continue to invest in them," said Holmes. "This program
amplifies our reach to thousands of students who will in turn go home and teach their families
about U.S.-grown rice."Teachers are encouraged to use the Think Rice education kit during
March National Nutrition Month and complete a survey to measure use, effectiveness, and
appeal of the program. The materials will be available indefinitely on YMI's website
(http://ymiclassroom.com/lesson-plans/usarice/) so teachers from all around the country can
download and use the activities.These new rice resources and the U.S. Rice in the

Classroompamphlet are available for USA Rice members to use in their own student outreach as
well.
Contact: Katie Maher (703) 236-1453
source with thanks:USA Rice Federation

CBN: We May Cut Forex Support On Rice Importation,

Others
Bukola Idowu
Jan 28, 2015
The governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has revealed plans by the
bank to stop foreign exchange support for the importation of some commodities such as rice, if
the pressure on the naira does not recede.Speaking during a meeting with stakeholders in the
organized private sector in Lagos yesterday, Emefiele stressed the need for local production of
most of the commodities that are presently imported into the country, so as to strengthen the
naira and develop the country.
In the course of time, we are not going to ban the importation of rice but we are not going to
provide foreign exchange if you are going to import rice into the country. So if you are interested
in rice, I will advise that you go into the production of rice, said Emefiele.If you want to use
your dollar that you have kept somewhere, there is no problem but at some point we will not
allocate foreign exchange for you to import rice. The same way, we will graduate it other
products.Emefiele, while dispelling fears of a further devaluation of the naira and the ability of
the CBN to continue to defend the currency, however, gave the assurance that the apex bank will
continue to provide foreign exchange for legitimate investors and businesses.
Stating that Nigeria had survived an oil price crash with $10 billion in reserves, he said $34
billion is enough to scale through the present oil price crisis.The important thing is that anyone
who needs foreign exchange for legitimate purposes will get their Forex even when the interbank
is unable to meet the demands in the market, the CBN will, from time to time, step in and we
will provide the foreign exchange that is needed to meet everybodys legitimate demand, the
CBN boss said.For his part, business mogul and chairman of the Dangote Group, Alhaji Aliko
Dangote, said that his company was planning to be the major seller of foreign exchange after the
CBN by 2018. He also disclosed that Nigerian would be the biggest exporter of urea and
ammonia by 2017.He said, Based on our plans we will be the highest foreign exchange seller in
the market by the first quarter of 2018, and its not from just refinery alone because if you do
refinery alone you will not make money.
The profit margin will not be that big unless the refinery is a huge one where you make gains
based on volume. Today, we are doing 3.6 million tonnes of polypropylene and polyethylene,
and even now with the crash of the price, those prices are not crashing on the same scale with oil;
so even as at todays prices, our exports are more than $7 billion. Our worry now is how do we
export most of the other products like aviation fuel, diesel. The only thing that we will not

export is PMS, he said.Dangote also stated that the country cannot continue to import
consumables and things that we dont even need.He urged Nigerians to get involved in
manufacturing not only for local consumption but also for export.
source with thanks:http://leadership.ng/news/406806/cbn-cut-forex-support-rice-importation

No need to panic, Emefiele tells Nigerians, investors

AS the Nigerian economy struggles with the effect of falling oil prices, decline in value of the
naira and drop in foreign exchange reserves, Governor of the Central Bank of Nigeria (CBN),
Mr. Godwin Emefiele has assured Nigerians, local and foreign investors that there is no need to
panic.
According to him, though decline in crude oil prices continues to put demand pressure on
domestic economy due to over dependence on imports; causing speculative and rent seeking
activities as well as increased foreign exchange out flows, the CBN in conjunction with other
stakeholders will certainly find a solution.Specifically, Emefiele said it is not unusual that
external reserves dwindle as crude oil prices decline, which may lead to depreciation, but one
major lesson from history is that when foreign reserves in the past declined to $10 billion dollars,
the country survived it so, at the current level of $34 billion, the reserves can support Nigerian
economy.
Assuring genuine manufacturers of CBNs readiness to support them, Emefiele said the bank is
considering halting sales of dollars to importers of goods that are being manufactured in the
country as it seeks to reduce pressure on the local currency hit by a drop in oil prices.The only
thing that will reduce pressure on our currency is by producing those things we are importing
today. In the course of time, we will not ban Rice importation but we can stop selling foreign
exchange to importers of Rice Emefiele said at a conference on Tuesday in Lagos.
We will try as much as possible not to hurt your business, but we need to be able to work
together, he stated.The naira depreciated by 8 per cent and 13 per cent at the Official and
Interbank Markets in 2014 prompting the central bank to ban the use of dollars purchased at its
twice-weekly auctions for the importation of items including electronics, telecommunication
equipment and generators suspecting that most importers are asking for dollars for illegitimate
businesses.
Warning that currency speculators will loose their money, the governor said CBN will only
meet legitimate demand, but we will not be concerned about illegitimate demand for dollars. The
CBN will not hesitate to revoke licenses of banks found to be fueling speculative activities in the
forex market.On calls by some experts for CBN to allow exchange rate be determined by
market forces, Emefiele said if the central bank allowed the naira to trade more freely then it
will lead to a major depreciation as Nigeria is not yet an export-driven economy.The naira has

slumped 16 percent against the dollar on the interbank market in the past six months.Emefiele
reiterated that the central bank has no plans to further devalue the currency.
His words:We continue to take all measures to defend the currency at the current exchange rate.
The Bank will continue to monitor developments and respond appropriately as the need
arises.Successful management of the current situation requires effective collaboration among all
stakeholders.Commenting, President of Dangote Group of companies Alhaji Aliko Dangote
assured that his investment in Sugar plants will ensure that CBN will receive no request for
foreign exchange for sugar importation, rather, Nigeria will be producing and exporting sugar in
the next 4 years.
source with thanks:http://www.tribune.com.ng/news/news-headlines/item/27847-no-need-topanic-emefiele-tells-nigerians-investors

Report: U.S. drops bid to end Japanese import rules

David Shepardson, The Detroit News6:10 p.m. EST January 26, 2015
Washington The Obama administration declined to comment on a report Monday that U.S.
trade negotiators will end their bid to convince Japan to lift tough requirements on car imports
after Japan agreed to expand a tariff-free quota for imported U.S. rice.Nikkei Asian Review
reported the U.S. Trade Representative Michael Fromans office will end efforts to convince
Japan to drop standards on car imports in exchange for Japans agreement to import an additional
10,000 tons of U.S. rice.
The report said talks will begin in Washington on Wednesday aimed at working out the details
and a deal means it is more likely a final deal on a 12-nation Trans-Pacific Partnership could
be reached by spring.Trevor Kinkaid, a spokesman for Froman, said the office had no comment
on the report. Froman is set to testify Tuesday in front of the Senate Finance Committee. It
comes as the Obama administration is pushing Congress to quickly approve fast track trade
legislation that would guarantee any trade deal gets a yes or no vote without amendments from
Congress.In April 2013, Japan announced it would more than double the number of motor
vehicles eligible for import under its fast-track rules.
Detroits Big Three automakers are now be allowed to export up to 5,000 vehicles annually of
each vehicle type under the program, compared with the prior ceiling of 2,000 vehicles per
vehicle type.The U.S., Japan, Mexico, Canada and eight other nations have been negotiating the
Trans-Pacific Partnership that would create a free trade zone comprising 40 percent of the
worlds economy for more than four years. Australia, Brunei, Chile, New Zealand, Malaysia,
Peru, Singapore and Vietnam are part of the talks.Automakers have been pushing for at least

three years to convince the Obama administration to include provisions in the agreement barring
the countries from currency manipulation, but Treasury Secretary Jacob Lew and Froman have
repeatedly shown no interest in doing so, arguing such issues are better addressed by global
forums like the World Trade Organization.
Automakers worry that foreign governments like Japan will be able to weaken their
currency to undercut U.S. vehicle production.The administration may be dropping efforts on the
auto provision because automakers have taken a hard line in only seeking currency changes.We
can compete against anyone anywhere but we cant compete against the Bank of Japan, said
Ziad S. Ojakli, Ford Motor Co.s group vice president, government and community
relations.Asked if Ford would accept any other provisions in lieu of currency in a 12-nation free
trade deal, Ojakli said no.
We need to have strong enforceable disciplines in any thing that moves whether it is trade
promotion authority or TPP. ... All were looking for is the internationally accepted principles
(on currency).Ojakli said the agreement must put teeth in those rules that are part of other
international agreements. Lets enforce the rules that weve all agreed to worldwide. How crazy
is that? Ojakli said.A group of Democratic lawmakers from Michigan are among those strongly
opposed to a deal without currency changes.Rep. Dan Kildee, D-Flint, is a strong opponent of a
free trade deal without currency.
He notes that Flint once had 79,000 manufacturing jobs, and now has less than
10,000.(Automakers) are going to have a difficult time signing off on an agreement that does
not include a currency provision, Kildee said in a Detroit News interview. Theyre in the same
position that a lot of us are in: trying to make a bad deal as good as we can knowing that in the
end absent a big turnaround which would be to begin to negotiate on currency its not
going to be something we can support.
Rep. Brenda Lawrence, D-Southfield, said Michigan had been devastated by prior trade
agreements that had sent thousands of jobs abroad. When you are in an environment like
Michigan and watch factories, watch people lose their homes, this is real and this is about jobs.
Lawrence said.Rep. Debbie Dingell, D-Dearborn, said a bad deal could do real damage to the
middle class. Fast-track trade legislation does not allow Congress to address countries that
manipulate their currency to gain an unfair advantage, which is the mother of all trade barriers,
she said.
This is unfair, and it puts U.S. jobs at risk.The proposed trade pact is facing strong opposition
from U.S. automakers and the United Auto Workers, which are worried a deal will be reached
that doesnt do enough to open the Japanese auto sector to American products. Japan has
historically imported very few foreign automobiles, but the number has been rising significantly

in recent years especially among European vehicles.The auto sector accounts for more than
70 percent of the U.S. trade deficit with Japan.
American automakers fear if Japan intervenes to weaken its currency, its automakers eventually
will be able to dramatically undercut them, especially when U.S. tariffs are phased out 25
percent on light trucks and 2.5 percent on cars. Automakers want the tariffs kept in place for at
least 25 years or more. And China could seek to enter the free trade agreement under the same
rules down the road.
source with thanks:http://www.detroitnews.com/story/business/autos/2015/01/26/us-japanese-importrules/22363591/

CME Group/Closing Rough Rice Futures

CME Group (Preliminary): Closing Rough Rice Futures for January 27

Month

Price

Net Change

March 2015

$10.970

+ $0.085

May 2015

$11.225

+ $0.080

July 2015

$11.465

+ $0.075

September 2015

$11.145

+ $0.075

November 2015

$11.245

+ $0.075

January 2016

$11.335

+ $0.075

March 2016

$11.335

+ $0.075

source with thanks: USA Rice Federation