2nd February, 2015 Daily Global Rice E - Newsletter by Riceplus Magazine

Daily
Global
Daily Global Rice E-Newsletter by Riceplus Magazine
Rice E-Newsletter
February 03, 2015
V o l u m e 5, Issue I
www.ricepluss.com
R&D Section: Riceplus Magazine
Page 1
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mujahid.riceplus@gmail.com
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PH to boost rice production

Posted by Mario Casayuran on Feb 3rd, 2015
The Senate agriculture and food committee expressed confidence yesterday that the state-of-the
art Lloyd Evans Plant Growth Facility of the International Rice Research Institute (IRRI) in Los
Baos, Laguna, would help sustain and boost the countrys rice production despite climate
change.I know that this facility, with its controlled environment rooms and plant growth
chambers, will serve a very important purpose as a key international resource and venue for
biotechnological research and conservation of genetic diversity, Sen. Cynthia A. Villar,
committee chairperson, said.
Villar said that once the facility becomes fully operational it would enable to nurture and study
plants, particularly rice, in a wide range of environment, controlling for temperature, relative
humidity, light intensity, photo period systems, water management systems, and the precise
control of atmospheric gases.She described the entry of Llyod Evans Plant Growth Facility as a
welcome development at the latest IRRI facility.She braces for what the facility can develop
that will help sustain rice production even during difficult climate conditions
Source with thanks: http://www.tempo.com.ph/2015/02/03/ph-to-boost-rice-production/
The ban on forex for rice importation

BY OUR REPORTER ON FEBRUARY 3, 2015
With the collapse of world oil prices, it was only a matter of time before Nigeria tightened up its
finances. It was, therefore, no surprise that the Governor of Central Bank of Nigeria (CBN), Mr.
Godwin Emefiele, announced last week that the Federal Government would no longer make
foreign exchange available to rice importers in the country. He also rightly deplored the
expenditure of so much foreign exchange on importation of rice and other goods that could be
produced locally. The importation of these products, he said, puts severe pressure on the Naira
and depletes the nations scarce forex reserves.
In addition to rice, Emefiele lamented Nigerias dependence on imported toothpicks, tomato
paste, furniture, fish, sugar, and petroleum products, which he described as misplaced and a
waste of national resources. The apex bank has already banned the use of dollars purchased at its
bi-weekly auctions for the importation of electronics, telecommunications equipment and
generators. It maintains it would, however, not ban the importation of rice but would not provide
the foreign exchange for it in order to stem the rising tide of speculative dollar demands.The
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CBNs decision restricting access to forex for certain categories of imports is timely and well
thought out. It rhymes with the Federal Governments policy on encouragement of investment in
domestic rice production.
The Federal Ministry of Agriculture and Rural Development (FMARD) has a goal to achieve
self-sufficiency in rice production by the year 2017.The Federal Government has also been
encouraging investors with sweet deals like the preferential duty rates by which investors with
verified domestic rice production plans would enjoy import duty of 10 per cent and import levy
of 20 per cent. Rice traders, on the other hand, would be liable to 60 per cent levy in addition to
the 10 per cent import duty.
Nigeria spends a whopping N1 billion daily on rice importation. The imports regime is
embroiled in controversy as the Federal Government is now trying to recover some N36.5 billion
from rice importation companies being duty for excess rice imported in violation of their
approved quota. The government had approved importation of 223,902 metric tons of rice by the
companies in order to bridge the gap between domestic production and national consumer
demand but the companies went ahead to import 732,555 metric tons, which is 508,653.55
metric tons in excess of government allocation.The government is, indeed, right in its bid to
recover the duties that ought to have been paid on the rice imported in excess of approved
allocations.
It is important to recover this money to send a strong message that there will be inescapable
consequences when governments policies are flouted with impunity.We urge the Federal
Government to be steadfast on this new rice policy because it is right. Commodities that can be
produced locally ought not to be allowed to constitute a drain on our foreign exchange. With
more than 82 million hectares of arable land and millions of capable hands, there is no doubt that
the country can grow enough rice to meet local demand and have some to spare for export.
In addition to encouraging our local and small-scale farmers to do more, the FMARD must
continue to liaise with the Dangote Group to be sure that there would be no delay or
administrative bottlenecks in the companys $1 billion rice project for which it has acquired
150,000 hectares of land across five states for the commercial production of rice paddy.The
Dangote project is clearly the arrowhead of the countrys drive for self-sufficiency in rice
production and must be encouraged and helped to succeed. Not only is it going to be the single
largest investment made in Africa for rice production, its mill has a massive 960,000 metric tons
capacity or about 46 per cent of rice imported into the country.It is gratifying to note that
investment in rice production has grown significantly in the last few years. The new rice policy
should engender even greater increase in local production.
Although it will, in the short term, likely make imported rice more expensive in the country, the
increased local cultivation and processing of the product will ultimately bring down the price and
serve Nigerians better in the long run.We enjoin the government to remain committed to this
policy and ensure that it achieves the desired objective. The stoppage of access to forex for rice
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imports, however, calls for close monitoring of the pricing of the product in the market by the
Federal Ministry of Agriculture. This is to ensure that the cost of rice, which is a local staple,
does not go beyond the reach of ordinary Nigerians. It will also help the government to predict
and, if need be, pre-empt scarcity of the product.
Source with thanks: http://sunnewsonline.com/new/?p=102973
Nigeria: 2015 - Jonathan Has Failed in Agriculture - APC

Tagged:AgribusinessBusinessGovernanceNigeriaWest Africa
The All Progressives Congress Presidential Campaign Organisation, APCPCO, has accused the
President Goodluck Jonathan administration of massive corruption in the country's agricultural
sector."President Jonathan has failed woefully in the agricultural sector, and all the self-praise of
the administration on agriculture is simply a ruse," the APCPCO said in a statement released on
Sunday, February 1.The statement, signed by Garba Shehu, pointed out that whereas President
Jonathan had promised in 2010 to make Nigeria self-sufficient in rice and wheat production by
2015, "the grim reality on the ground today is that Nigeria emerged as the world's highest
importer of rice in 2015, and a whopping $11 billion is spent annually by Nigeria to import rice,
wheat, sugar and fish."
The statement added that according to the former Acting Governor of the Central Bank of
Nigeria, Sarah Alade, Nigeria as at 2014 spends $4 billion on rice importation - that is about
N600 billion annually on the importation of 2.1 million metric tonnes of milled rice."This is after
the Federal Government had approached the China Exim Bank for a loan of $1.2 billion for the
financing of 100 large-scale rice processing plants with a total capacity of 2.1 million metric
tonnes."The troubling truth today, is that Nigeria is nothing close to self-sufficiency in rice
production and what we have at hand is a close web of corruption where government cronies
stumble over each other to get import licenses for rice."The statement also noted that a similar
unacceptable situation pertained to the importation of wheat.
"According to the Minister of Agriculture and Rural Development, Dr. Akinwunmi Adesina,
Nigeria's wheat consumption as at year 2000 was about two million metric tonnes. But, by 2010,
wheat importation to the country had risen to four million metric tonnes and Nigeria spends
N635 billion annually on wheat importation."Five years into the Jonathan's administration,
Nigeria spends even more than we did in 2010 to import wheat; yet the government continues to
brandish false achievements in the agricultural sector - a situation that is completely at variance
with what President Jonathan promised Nigerians in 2010, saying that his government would
make Nigeria save N635 billion annually on rice and wheat importation.
"On fertilizer accessibility to farmers, the APCPCO faulted the claim by government that local
farmers now have unhindered access to fertilizer through the Growth Enhancement Scheme.On
the contrary, Mr. Shehu says that what gets to each farmer under the e-wallet arrangement, which
he described as, "excessively laborious and technically difficult for the farmers to work through"
are two bags of fertilizer throughout the entire farming season, "and government has not come
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out in one instance to tell Nigerians how much it receives as grants on fertilizer distribution to
farmers from donor agencies.""The government will want to give us the impression that fertilizer
is being given to farmers free of charge. But we know that what subsists is a 50 per cent subsidy
per bag of fertilizer.
Our farmers are being shortchanged under this so-called e-wallet arrangement because of lack of
transparency."We may be looking at another subsidy scam over fertilizer unless the Jonathan
administration comes out clean to tell us how much it has received as grants over fertilizer and
how it comes about the 50 per cent subsidy per bag of fertilizer," Shehu said.
The statement dismissed President Jonathan's claims of achievement in the agricultural sector,
pointing out that "throughout the periods preceding the Jonathan's administration, the
contribution of agriculture to the Gross Domestic Product (GDP) was at 7 per cent, while under
the so-called transformation agenda of President Jonathan, agriculture's contribution to the GDP
has been consistent at 5 per cent - an all-time low.
"In any case, food commodities are items Nigerians buy on a daily basis. If the Jonathan
administration was sincere with the statistics it reels out on agriculture, why would the
government buy pages of newspaper advertorials and TV commercials to force bitter falsehood
of its achievements down the throats of Nigerians? The Jonathan administration has failed
woefully in its agricultural policies and the facts are self-evident out there at those food stalls in
our markets."In 2015, Nigerians know they spend far more to buy food than they did in 2010.
That reality, in itself, is President Jonathan's scorecard in agriculture," the APCPCO concluded.
Garba Shehu
Directorate of Media & Publicity
APC Presidential Campaign Organisation
Source with thanks: http://allafrica.com/stories/201502020714.html
About 5000 workers left jobless as over 300 rice mills stop
operation in Rangpur
Our Correspondent
RANGPUR, Feb 2: Around 5000 workers turned jobless as more than 300 rice mills and boilers
have been closed at Mahiganj area under Rangpur city as supply of paddy to the mills remained
suspended due to transport problem amid prolonged blockade and shutdown enforced by BNP
led 20 party alliance.Besides, a good number of rice mills at different upazilas in the district were
also compelled to stop or lessen production owing to difficulty in sending rice to the capital city
and other parts of the country, leaving thousands of workers unemployed.According to sources
usually during this time the rice mills in the district remain busy husking paddy and the workers
are engaged in boiling and drying of paddy.
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During this time a huge number of trucks loaded with rice are sent to Dhaka and other parts of
the country from this region everyday. But the ongoing political turmoil like blockade and
shutdown made the mills idle and as a result the workers are passing tough time amid uncertainty
of income and the mills owners are incurring huge losses.Owner of Rafiq Rice Mill at Mahiganj
area Rifiq said, his rice mill has been closed for more than a couple of weeks due to scarcity of
paddy which forced the labourers working in his mills jobless.
He has already suffered huge losses and if the situation continues for long he will have to incur
more losses, he apprehended.Sakina Begum (38), a worker of the mill told the Financial Express
that she has been passing hard days with her family in near starvation as presently she has no
work. She blamed the political parties for the situation saying they do not care to think about the
misery of the poor people. "If the situation continues we will have to die", she lamented
Talking to The Financial Express a number of rice mills owners expressed their disappointment
over the prevailing situation saying the rice millers of the region generally procure paddy from
Bogra, Pabna,Sirajganj Joypurthat, and Dinajpur. After husking the rice in their mills they
supply those to Dhaka and some other districts. But presently both procurement and supply
works are seriously being hampered on account of political turmoil.They also expressed their
apprehension about paying labourers' wages, electricity bills and interest of bank loans. They
urged the political parties to give up tough political programmes such as shutdown and blockade.
sayedmofidulbabu@gmail.com
Source with thanks: http://www.thefinancialexpress-bd.com/2015/02/03/79034
Rice Millers Fail to Meet Centre Target

By Express News Service
Published: 03rd February 2015 06:00 AM
Last Updated: 03rd February 2015 04:28 AM
BHUBANESWAR: Even as the Centre has set a deadline for delivery of custom milled rice to
the Central pool, rice millers of the State have failed to meet the target due to their low milling
capacity.The State Government has asked district managers of Food Supplies and Consumer
Welfare Department to take necessary steps for expeditious delivery of custom milled rice
(CMR) to Food Corporation of India (FCI).The State had set a target for the millers for delivery
of 10.58 lakh tonnes of rice to FCI by January 21.
But the millers have delivered only 1.45 lakh tonnes to the Central pool and another 25,000
tonnes to Odisha State Civil Supplies Corporation for distribution under PDS.Though the rice
delivered to the Government is only 16 per cent of the target, the performance of the millers is
better compared to the corresponding period of last kharif marketing season (KMS). Only 38,701
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tonnes of CMR were delivered by January 20, 2014.The Government agencies procuring paddy
directly from the farmers had procured 15.60 lakh tonnes of paddy equivalent to 10.58 lakh
tonnes of rice till January 21.
As the KMS starts from October 1, delivery of CMR to FCI should be completed before
September 30. The Ministry of Food had directed FCI not to accept CMR delivered beyond
December 31.With limited storage and milling capacity, the State Government has sought more
time from the Centre to complete the delivery of CMR.
The State Government had set a target to procure 30 lakh tonnes of rice during 2012-13 KMS.
The Government procured over 54 lakh tonnes of paddy which is equivalent to 36 lakh tonnes of
rice. It delivered 33.60 lakh tonnes of rice to the Central pool including 4.11 lakh tonnes after
December 31, 2013.Setting a target to procure 30 lakh tonnes during the current KMS, the State
Government has set an initial target of 17.69 lakh tonnes for the districts. Bargarh district,
considered to be rice bowl of the State, had procured over 5.6 lakh tonnes of paddy equivalent to
3.80 lakh tonnes of rice. The district has so far delivered about one lakh tonnes of CMR.
Source with thanks: http://www.newindianexpress.com/states/odisha/Rice-Millers-Fail-to-MeetCentre-Target/2015/02/03/article2650387.ece
2014 Farm Bill Decision Aid Demos in Arkansas This Week

LITTLE ROCK -- Farmers are racing to beat the clock and learn as much as they can about the
2014 Farm Bill in order to make critical decisions to meet upcoming deadlines.James
Richardson, a co-director of the Agricultural and Food Policy Center at Texas A&M and codeveloper of a web-based tool to help farmers make these critical decisions, will be in Arkansas
demonstrating the program on Thursday, February 5 in Stuttgart and Friday, February 6 in
Jonesboro.
"The 2014 Farm Bill provides farmers three major farm program options: payment Yield
Update, Base Reallocation, and the choice between three safety net programs," said Robert
Coats, extension economist for the University of Arkansas System Division of Agriculture.
"Time is running out for making these one-time, irrevocable decisions."
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Deadline for base acreage and yield decision is February 27.
Deadline for program election for agricultural risk coverage and price loss coverage is March
31.
The demonstration schedule this week also includes two webinars on February 5, starting at 9
a.m. Webinars will last about 30 minutes and participants can register using this link:
https://uaex.zoom.us/webinar/register/c6ed14053234bd3e4ac87b605f06faf5.
There is no cost to attend either the in-person workshops or the webinars.
For more information about the Farm Bill series, contact your county extension office or visit
www.uaex.edu/farmbill.
Contact: Mary Hightower (501) 671-2126
Source with thanks: USA Rice Federation
CME Group/Closing Rough Rice Futures

CME Group (Preliminary): Closing Rough Rice Futures for February 2
Month
Price
Net Change
March 2015
$10.305
- $0.265
May 2015
$10.555
- $0.285
July 2015
$10.790
- $0.280
September 2015
$10.590
- $0.205
November 2015
$10.760
- $0.205
January 2016
$10.850
- $0.205
March 2016
$10.850
- $0.205
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Source with thanks: USA Rice Federation
USDA's February 10, 2015, World Agricultural Supply and

Demand Estimates Report to Incorporate Changes to Rice Table
USDA Office of Communications sent this bulletin at 02/02/2015 04:00 PM EST
You are subscribed to USDA Office of Communications.
Release No. 0025.15
Contact:Brenda Chapin (202) 720-5447
bchapin@oce.usda.gov
USDA's February 10, 2015, World Agricultural Supply and Demand Estimates Report to
Incorporate Changes to Rice Table
WASHINGTON, Feb. 2, 2015 - The Feb. 10 World Agricultural Supply and Demand Estimates
(WASDE) report, which will be released at 12 noon ET, will include two new rice prices in the
"Medium & Short-grain" rice section of the table on page 14. USDA is forecasting these two
new additional rice prices that are part of the program parameters introduced in the 2014 Farm
Bill for the Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) programs.
The two new prices will be located directly under the "Average Farm Price" line and will
include:
California
Other States
Two lines have been added at the bottom of the rice table under the sub-heading "Medium &
Short-Grain Rice." The two new prices are a sub-category of the combined medium- and shortgrain average farm price. No other lines were added or deleted from the table.The first publicly
available information for the 2013/14 "California" and "Other States" prices became available in
the January issue of USDA's National Agricultural Statistics Service's Agricultural Prices report
that was released on January 30, 2015.An example of the change is found on this sample
WASDE page (PDF, 46KB).
Background on USDA's WASDE report and past issues are available at:
www.usda.gov/oce/commodity/wasde/.
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#
USDA is an equal opportunity provider and employer. To file a complaint of discrimination,
write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400
Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free
Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users).
Source with thanks: http://content.govdelivery.com/accounts/USDAOC/bulletins/ee2a6e
Educational seminars highlight 2015 Mid-South Farm &

Gin Show
Jan 30, 2015Farm Press Staff | Delta Farm Press
Attendees at the 63rd annual MidSouth Farm & Gin Show, scheduled
for Feb. 27- 28 at the Cook
Convention Center in downtown
Memphis, will have an opportunity
to
attend
several
educational
seminars during the two days.Over

400 exhibitors from more than 40
states will be on hand, showcasing
the latest technology and innovation
a in agriculture.
The show is sponsored by the Southern Cotton Ginners Association and Foundation and Delta Farm
Press.Ag Update Seminars are scheduled for Friday, Feb. 27 and Saturday, Feb. 28, beginning at 8:30
a.m. in the convention centers lobby meeting room. Speakers will include Sledge Taylor, incoming
chairman of the National Cotton Council; Carl Brothers, Riceland Foods; and Joe Nicosia, of Louis
Dreyfus. Richard Brock, of Brock Associates, will headline the Saturday, Ag Update seminar,
providing his unique perspective on grain marketing, as well as a market outlook.Plans are also being
finalized for the Mid-South Ag Forum, a seminar focusing on successful technology adoption from
research to the farm. Scheduled for 1:30 p.m.
Friday in the convention center mezzanine level meeting room, this seminar will feature researchers
and farmers who will explore irrigation innovations and technology adoption on the farm.A special
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rice seminar, What the U.S. Rice Farmer Needs to Know to Prosper, is set for Saturday at 1:30 p.m.
in the mezzanine level meeting room. Milo Hamilton, Co-founder and senior ag economist of First
Grain, Inc., is the featured speaker.
All this information, and more, is available on the updated Farm and Gin Show mobile app, which
can be downloaded from iTunes or from the Android app store. The app features show schedules and
updates, speaker biographies, and maps and exhibitor information, all designed to enhance the
showgoing experience. The app has proven to be very popular. Regular updates to information will
be made to the app during the two days of the show.Those planning to attend the show are
encouraged to pre-register online, which speeds up the process of on-site printing of name badges.
Go to the show website (www.farmandginshow.com), click on the Attendee Registration button,
complete the form and print out the confirmation. Bring that form with you to the show and staff onsite will help you complete the process and get your name badge so you can quickly get onto the
show floor.Anyone who pre-registers for the show by Feb. 16 will be entered into a drawing for
$1,000. The winner will be notified Feb. 17, and must collect the prize at the Registration Booth at
the show.Show hours are 9 a.m. to 5 p.m. Friday, and 9 a.m. to 4:30 p.m. Saturday. More information
is available at www.farmandginshow.com.
Source with thanks: http://deltafarmpress.com/markets/educational-seminars-highlight-2015mid-south-farm-gin-show
Thai Junta to Cut Rice Crop to Combat Glut as Reserves

Sold
(Bloomberg) -- Thailand, the worlds biggest rice exporter, plans to cut production to reduce a
local surplus and boost prices, complementing a drive by the government to sell record
stockpiles that are clogging warehouses nationwide.Rough-rice output may be cut to 33.73
million metric tons by 2016-2017, down from an average of 35.11 million over the past six
years, according to Apichart Pongsrihadulchai, vice farm minister. Growers will be encouraged
with incentives including soft loans to shift from rice to sugar cane or to mixed farming with
livestock, Apichart said in an interview.
Thai authorities, led by military-leader-turned-prime minister Prayuth Chan-Ocha, are grappling
with the legacy of the previous governments rice-buying policy. Yingluck Shinawatras
administration paid rice growers guaranteed, above-market prices for their crop, spurring
increased production and the buildup of the countrys biggest ever stockpiles. Prayuths
government last week offered almost 1 million tons for sale from the state reserves, which it
wants to clear over the next two years.We need to restructure our rice production to solve a
surplus problem, Apichart said in Bangkok on Jan. 30. We aim to slash production to be
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balanced with local consumption and exports. Hopefully, that will boost prices.Thai 5 percent
broken rice declined 7.1 percent last year, extending a 23 percent drop in 2013. The Asian
benchmark price was at $422 a ton on Jan. 28, the day before Prayuths government offered the 1
million tons for auction. Rough rice futures fell as much as 0.6 percent to $10.505 per 100
pounds in Chicago on Monday, the lowest since August 2010.
Manage Risk
The plan will have more chance of succeeding if there are active extension efforts to educate
farmers about the best techniques for planting alternative crops, David Dawe, a Bangkok-based
senior economist at the United Nations Food & Agriculture Organization, said in an e-mail. Itll
also be important to provide ways for growers to manage risk, as most crops are riskier to plant
and market than rice, he said.Over the next two years, about 700,000 rai (112,000 hectares) are
targeted to be switched from rice to sugar cane, and a further 1.1 million rai will be switched to
mixed farming, said Apichart.
The government also plans to eliminate rice planting during the dry season across 400,000 rai,
he said.Targeted output of 33.73 million tons would return Thai rice production to the same level
as it was in 2009-2010, according to the plan. The projected surplus -- the excess of output over
local demand and export needs -- will drop from about 1.1 million tons in 2016-2017 to just
200,000 tons in 2019-2020. The policy to shift land away from rice is subject to approval by a
rice-policy committee, Apichart said.
Record Crop
Under Yinglucks rice-buying spree, production climbed to a record in 2011-2012, while
reserves expanded to 17.8 million tons last year. Thats equivalent to more than 40 percent of
global trade.Earlier this month, Thailands junta-appointed legislature impeached Yingluck and
banned her from politics for five years for her role in overseeing the rice-buying program. The
Attorney Generals office said criminal charges will follow.Minister of Agriculture and
Cooperatives Petipong Puengbun Na Ayudhya said in an interview in October that there would
be incentives for growers to switch crops to curb oversupply, notably from rice to sugar.
To contact the reporter on this story: Supunnabul Suwannakij in Bangkok
atssuwannakij@bloomberg.net
To contact the editors responsible for this story: James Poole at jpoole4@bloomberg.netJake
Lloyd-Smith, Claudia Carpenter
Source with thanks: http://www.bloomberg.com/news/articles/2015-02-02/thai-junta-to-slashrice-crop-cut-glut-as-stockpiles-sold-off
Declining exports of basmati rice

Ahmad Fraz Khan
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The domestic market is overwhelmed with a basmati rice glut; the government is stuck
with bigger issues of national economy and security and is unable to help stabilise the rice
trade; and the prices are sliding. The farmers panic, therefore, is understandable.
The basmati variety is currently being traded at around
Rs3,000 per maund, against Rs4,500 last year. More
importantly, the quantum of trade is low. With production at
the same level and exports receding over the last four years,
the country now is estimated to have around 1m tonnes of
stock though the actual figures is not known as the stocks are
spread over the entire supply and trade chains.
Firstly, till 2011, exports were over 1m tonnes and domestic stocks were emptied each year.
From then onwards, exports started dropping for a number of reasons that have been pointed out
in the media. In 2012, foreign sales dropped to 968,941 tonnes. Next year, they went down to
630,035 tonnes, leaving a domestic glut of around 350,000 tonnes. Last year, they sustained the
trend and touched 733,860 tonnes, adding over 250,000 tonnes to the glut.
Till last season, the country was holding a carry-over of 600,000 tonnes. This season might add
at least another 400,000 tonnes, taking the total tally beyond 1m tonnes.Similarly, the price has
gone down by 33pc from last year.
The main question now facing the market is how to clear the trade surplus. If it remains in the
country, it is big enough to rig the domestic and export markets for some years to come, till it is
either sent out or domestic crop fails to eat it away. One certainly cannot wait for the domestic
crop to fail; thus, the only option left with the farmers and, more importantly, with the
government, is to somehow clear it, even if it costs some money in shape of subsidies.
Picture shows a rice field. The main question now facing the market is how to clear the
trade surplus of basmati following a fall in the export of the commodity. Dawn/File
The region has big buyers like Saudi Arabia, Iran and Iraq, all of which import just under 1m
tonnes of rice each year, mostly from India. The market is there, if Pakistan can somehow
capture it
The exporters dont have the capacity (read: market), or will or incentive to clear such a huge
stock.They used to export over 1m tonnes but then lost a major portion of it to Indian
competitors. Currently, their exporting capacity is down to 600,000 tonnes, which itself now
seems to be an impossible task given the international scenario.Luckily, the region has some big
buyers like Saudi Arabia, Iran and Iraq all of whom import just under 1m tonnes of rice each
year, mostly from India. This shows that the market is there, if Pakistan can somehow capture
it.The ministries of food security and research, finance and commerce need to put their heads
together and see how the local glut can be cleared through bilateral or even barter
agreements.The federal government also needs to step in because it announced compensation
package of Rs5bn for basmati growers after last years floods, but seems to have forgotten it.
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None of the basmati growers have received the promised Rs5,000 per acre, and they have been
left to suffer the brunt, both of a reduction in yields and a massive reduction in price. The same
money can be used to ensure exports.Besides, the provincial governments, who now fully own
the sector and proudly announce achieving their production targets, also need to improve their
marketing activities. This dichotomy needs to be taken care of, where provinces ensure
production but are unwilling to play a role in marketing them.
Punjab, which is the only producer of basmati, is not willing to help clear the glut, and has left
the trade to players it has no control over. These issues must be solved through mutual
cooperation, understanding and policy development, involving all stakeholders.The basmati
variety that fetches almost three times higher price as compared to other coarse varieties is too
important to be left to lesser players. Even in the current recession, basmati is being traded in the
international market at $900-1,000 per tonne, against $300-350 per tonne for coarse
varieties.This basmati variety also has a huge role to play in poverty alleviation in rural Pakistan.
Being mainly an export variety (with 60pc of its production going overseas at one time), it also
fetches precious foreign exchange. All these factors make it too important for social and
economic reasons to be left too inefficient market forces.
Published in Dawn, Economic & Business, February 2nd, 2015
Source with thanks: Dawn News Pakistan
Japan on cusp of major compromise on rice with U.S. in TPP

talks
January 31, 2015
THE ASAHI SHIMBUN
Japan appears set to offer key concessions to the United States over its demands on rice import
quotas in Trans-Pacific Partnership free trade talks, a move that is bound to anger farmers at
home.According to sources, Japanese negotiators are ready to offer a counterproposal agreeing to
an annual import ceiling of up to 50,000 tons of U.S. rice with no or low tariffs in tandem with
an offer to lower the levy on imported beef to 9 percent from the current 38.5 percent over a 10year-plus period.Negotiations will collapse if we do not give an inch to the other party, said
Akira Amari, the state minister in charge of the TPP talks, on Jan. 30.The new plan emerged
after Tokyo declined to meet Washingtons initial demands that it remove or reduce its tariff on
imported rice.
U.S. negotiators later proposed a quota for 200,000 tons of rice and processed rice products from
the United States.At present, a tariff of 341 yen ($2.90) is imposed on every 1 kilogram of
imported rice.Japan imports about 770,000 tons of tariff-free foreign rice annually to fulfill its
"minimum-access" rice-import obligations.Of that total, U.S. rice amounted to 360,000 tons in
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fiscal 2013.The new quota for U.S. rice imports, if it materializes, will be in addition to the
minimum access obligation, according to the sources.Japanese officials initially tried to meet the
U.S. request within the framework for the minimum-access rice-import obligation.But
Washington, seeking even greater access, called on Tokyo to lock in specific quantities that it
will import.
Imported rice is a contentious issue in Japan. Many domestic rice growers fear that prices of the
grain they produce will fall if more foreign rice enters the market.The government plans to buy
the same tonnage of rice from Japanese growers for its national reserves that it imports in order
to prevent downward pressure on domestic prices, the sources said.Still, government officials are
concerned that Vietnam and other rice-producing countries participating in the TPP negotiations
will make similar demands if Tokyo and Washington agree on a quota.
(This article was written by Kenji Oyamada, senior staff writer, and Takuya Sumikawa.)
Source with thanks: http://ajw.asahi.com/article/business/AJ201501310052
S. Korea faces possible oversupply of rice on record output,

imports
Published : 2015-02-02 10:38
Updated : 2015-02-02 10:38South Korea may face an oversupply of rice this year as its output
reached a five-year high while rice consumption continues to shrink, government officials said
Monday.According to the officials from the Ministry of Agriculture, Food and Rural Affairs, the
country's self-sufficiency rate for rice is expected to reach 97 percent in 2015.The country's overall
output of rice inched up 0.3 percent on-year to some 4.24 million tons in 2014.South Korea is also
required to import at least 408,700 tons of rice every year under a special agreement with the World
Trade Organization, which had allowed the country to postpone opening its rice market over the past
20 years.South Korea liberalized its rice market through tarrification at the start of this year.
The oversupply problem will likely be further accelerated by a drop in the country's rice
consumption, the ministry officials noted.n 2014, the country's annual intake of rice per person
dipped 3.1 percent on-year to a record low of 65.1 kilograms.The per capita consumption is again
expected to shrink this year, continuing its steady decline over the past 40 odd years since 1970 when
it hit a record high of 136.4 kg, officials said. (Yonhap)
Source with thanks: http://www.koreaherald.com/view.php?ud=20150202000462
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Korea faces oversupply of rice

Published: 2015-02-02 20:52
Updated: 2015-02-02 20:52
Korea is expected to see an oversupply of rice this year due to a five-year high in output and a
continued fall in demand, officials said Monday.The Ministry of Agriculture, Food and Rural
Affairs said the self-sufficiency rate for rice would likely reach 97 percent in 2015.
The ministry data showed that the countrys overall
output of rice jumped 0.3 percent from a year ago, to
some 4.24 million tons in 2014. The nation also has
to import at least 408,700 tons of rice every year
under a special agreement with the World Trade
Organization.In contrast to the high output of rice, the
nations rice demand has rapidly dwindled, amid
increased consumption of foreign food.Last years
annual consumption of rice per capita fell 3.1 percent
on-year to a record low of 65.1 kilograms. Ministry
officials expected that the problem would worsen as
consumption of rice continues to drop.
Image:South Korean workers stack bags of rice. (Yonhap)

Source with thanks: http://m.koreaherald.com/view.php?ud=20150202001068&ntn=0
NFA partners with group to help curb rice anomalies

BY JEAN SAPALLO
POSTED ON 02/02/2015 3:32 PM | UPDATED 02/02/2015 9:10 PM
VULNERABLE. Rice and corn farmers are among the country's poorest, despite being at the
forefront of feeding the nation. File photo by Jay Directo/Agence France-Presse
MANILA, Philippines The National
Food Authority (NFA) is collaborating
with Kaya Natin! (KN), a civil society
organization,
to
help
monitor
anomalies in the rice industry and thus
help government in ensuring food
security.The NFA has been confronted
by the problems of rice shortage,
alleged
corruption
in
rice
imports,smuggling, price manipulation
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by private sectors, hoarding and repacking, all resulting to false shortage," among many others.
(READ: PH agriculture, why is it important?)
Around 74% of NFA rice are smuggled, while only 26% of its supplies reach the poor, NFA
reported. (READ: PH road to rice self-sufficiency)
Called "Bantay Bigas," the campaign will involve KN volunteers to monitor rice movements in
their localities.NFA admits it cannot do the job alone to totally eradicate anomalies in the rice
industry. This led newly appointed NFA Administrator Renan Dalisay and his council to seek
help from a non-governmental organization like KN to complement the agency's work on the
ground. Rappler.com
Jean Carla Sapallo is a Rappler intern. She is a 4th year journalism student at the Polytechnic
University of the Philippines.
Source with thanks: http://www.rappler.com/move-ph/issues/hunger/82689-nfa-kaya-natin-curbrice-anomalies
Vietnam to sell 240,000 T rice to Malaysia -sources

By Reuters / Reuters | February 2, 2015 : 12:26 PM MYT
HANOI (Feb 2): Vietnam has reached an agreement to sell 240,000 tonnes of rice to Malaysia,
although the small volume and an eight-month loading schedule mean grain export prices will
stay near multi-month lows, a state-run newspaper and traders said on Monday.The country will
ship the 5-percent broken rice to Malaysia over April to November, the Vietnam Economic
Times newspaper said, coinciding with the peak for Vietnam's main winter-spring crop harvest
that is expected to provide more than 5 million tonnes of unhusked rice mostly for export.
An official at the Vietnam Food Association, which oversees the country's rice exports, declined
to comment on the deal with Malaysia, the third-biggest buyer of Vietnamese rice after China
and the Philippines.While the report did not give any detail on the deal price, a Vietnamese
private trader estimated that both sides may have agreed to a price of $385 a tonne, free-on-board
(FOB)."Vietnam has yet to publish the price of the deal as it is still eyeing a demand from the
Philippines," another rice exporter said.The Philippines plans to import up to 500,000 tonnes for
delivery between March and May to boost stockpiles and might go for a government-togovernment deal, government and trade sources said last week.
The price for Vietnam's 5-percent broken rice fell to $358-$360 a tonne on Monday, FOB, from
$360-$370 last week. The lower end of the range is the weakest price for the grain since midSeptember, 2013, Reuters data shows.Traders in Ho Chi Minh City said they do not see any
upside to Vietnamese rice export prices from the deal with Malaysia given its long loading
duration. Malaysia took 470,000 tonnes of Vietnamese rice in 2014, up 1.5 percent on
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year."With some 30,000 tonnes to be shipped per month (April-Nov 2015), this small volume
will not affect the market supply and prices," said a trader at a foreign firm in Ho Chi Minh City.
Source with thanks: http://www.theedgemarkets.com/my/article/vietnam-sell-240000-t-ricemalaysia-sources
Government to slash rice crop, sell stockpiles to cut glut

Published: 2 Feb 2015 at 15.55
Online news: News
Writer: Bangkok Post and Bloomberg News
Thailand, the worlds biggest rice exporter, plans to cut production to reduce its surplus and
boost prices, complementing a drive by the government to sell record stockpiles that are clogging
warehouses nationwide. Rough-rice output may be cut to 33.73 million tonnes by 2016-17, down
from an average of 35.11 million over the past six years, according to Apichart
Pongsrihadulchai, vice agriculture minister. Growers will be encouraged with incentives
including soft loans to shift from rice to sugar cane or to mixed farming with livestock, Mr
Apichart said in an interview.A Suphan Buri rice farmer tends to his crop in this October 2014
photo. The government plans to cut production to reduce a local surplus and boost prices as it
tries to sell record stockpiles that are clogging warehouses nationwide. (Bangkok Post photo)
Thai authorities, led by
military-leader-turned-prime
minister Prayut Chan-o-cha,
are grappling with the legacy
of the previous government's
rice-buying policy. Yingluck
Shinawatra's administration
paid rice growers guaranteed,
above-market prices for their
crop, spurring increased
production and the build-up
of the country's biggest ever
stockpiles.
The government last week offered almost one million tonnes for sale from the state reserves,
which it wants to clear over the next two years."We need to restructure our rice production to
solve a surplus problem," Mr Apichart said in Bangkok on Jan 30. "We aim to slash production
to be balanced with local consumption and exports. Hopefully, that will boost prices."Thai 5%
broken rice declined 7.1% last year, extending a 23% drop in 2013. The Asian benchmark price
was at $422 a tonne on Jan 28, the day before the government offered the one million tonnes for
auction.Over the next two years, about 700,000 rai are targeted to be switched from rice to sugar
cane, and a further 1.1 million rai will be switched to mixed farming, said Mr Apichart.
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The government also plans to eliminate rice planting during the dry season across 400,000 rai,
he said.Speaking after Monday's meeting of the National Rice Police Committee in Nakhon
Ratchasima, Prime Minister Prayut Chan-o-cha said the government and farmers need to work
together to grow crops suitable for their land."Farmers should focus on growing quality rice that
matches the amount of (available) water in order to fetch high prices. If some locations cannot
produce quality rice, farmers should be supported to grow other crops," he said.A buyer looks at
a sample of rice as he walks past stacks of the grain during a pre-auction rice inspection at the
warehouse of the Boonnapa rice mill in Chok Chai, Nakhon Ratchasima province on Jan 26.
(Bloomberg photo)
Smaller harvests
Targeted output of 33.73 million tonnes would return Thai rice production to the same level as it
was in 2009-10, according to the plan. The projected surplus the excess of output over local
demand and export needs will drop from about 1.1 million tonnes in 2016-2017 to just
200,000 tonnes in 2019-2020. The policy to shift land away from rice is subject to approval by a
rice-policy committee, Mr Apichart said.Under Ms Yingluck's rice-buying spree, production
climbed to a record in 2011-2012, while reserves expanded to 17.8 million tonnes last year.
That's equivalent to more than 40% of global trade.
Last month, the National Legislative Assembly
impeached Ms Yingluck and banned her from politics
for five years for her role in overseeing the rice-buying
programme. The Attorney General's office said criminal
charges will follow.Minister of Agriculture and
Cooperatives Pitipong Phuengboon Na Ayudhaya said
in an interview in October that there would be
incentives for growers to switch crops to curb
oversupply, notably from rice to sugar.At the Phimai
Agricultural Cooperative Monday, Gen Prayut said he
had instructed the Interior Ministry to take the lead in developing a database containing Thai
farmers' incomes, careers and other identifying information ib their agricultural products in order
to facilitate the government's assistance programmes.
Source with thanks: Bangkok Post
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2nd February, 2015 Daily Global Rice E - Newsletter by Riceplus Magazine

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