April 1, 2015

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Volume 5, Issue I
Daily Exclusive

ORYZA Rice
Newsletter

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Indonesia Declines Thailand's Offer to

Supply 1.5 Million Tons of Rice at Low Prices
to Maintain Zero Import Policy, Says
Agriculture Minister
Mar 31, 2015

Addressing farmers at a regional development planning meet in Java, the Agriculture Minister
noted that the government has declined Thailand's offer to supply 1.5 million tons of rice at
about Rp 4,000 per kilogram (around $306 per ton) despite the import price being much below
the local prices, which currently stand at around Rp 8,000 to Rp 12,000 per kilogram (around
$613-$919 per ton), according to Reuters.
The Minister told the gathering that the government would have gained about Rp 6 trillion
(around $460 million) if it imports rice from Thailand at the current offer. However, the
government decided not to import rice, he adds.He reiterated that the government would not
import rice in 2015 and is keen on achieving self-sufficiency in rice production as well as
improve the living standards of the country's rice farmers. He added that the government is
monitoring the rice stocks regularly and is ensuring that prices would not shoot up due to stock
deficiency.

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The Minister earlier noted that that in order to increase production in the major rice producing
provinces, the government needs to address certain issues such as damaged irrigation channels,
inefficient distribution of fertilizer and seeds, farming tools and lack of agricultural extension.
He added that the government was planning to distribute 57,000 tons of fertilizer and seeds for
about five million hectares of rice fields across the country.
USDA estimates Indonesia to produce around 36.5 million tons of rice, basis milled (around
57.48 million tons, basis paddy), and import around 1.3 million tons of rice in MY 2014-15
(January 2014 - December 2014. Consumption in 2015 is estimated at around 39.2 million tons.

Brazil Paddy Rice Index Declines Slightly

from Last Week
Mar 31, 2015

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The Brazilian paddy rice index maintained by CEPEA reached around 35.61 real per 50
kilograms as of March 30, 2015, down about 0.2% from around 35.67 real per 50 kilograms
recorded on March 23, 2015.
In terms of USD per ton, the index reached around $219 per ton on March 30, 2015, down about
2.6% from around $224 per ton recorded on March 23, 2015.

Government of Bangladesh Decides to Lower

Open Market Rice Price to Curb Rice
Imports
Mar 31, 2015

The government of Bangladesh has decided to lower the open market rice price under the OMS
program to around Tk22 per kilogram (around $282.5 per ton) from around Tk26 per kilogram
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(around $334 per ton) as part of efforts to curb rice imports by the private sector, according to
local sources.The decision has been taken by the Prime Minister in a Cabinet Meeting on
Monday. The meeting apparently discussed the proposal to impose taxes on rice imported from
India. The Cabinet members reportedly disagreed with the proposal to reduce the price of rice
under the Open Market Sale (OMS) program as it would bring huge losses to the government.
However, the Prime Minister is understood to have opposed to impose a tax on rice imports from
India and preferred to supply rice at low prices to the citizens despite likely losses to the
government.
Bangladesh's private sector imported about 1.07 million tons of rice in July 1, 2014 - March 29,
2015, nearly three times more than 374,560 tons of rice imported in the entire 2013-14 fiscal
year (July - June), according to data from the Ministry of Food.The increase in imports is being
attributed to low prices in India. According to trade sources, Bangladeshi traders buy rice from
India at about Tk8-10 per kilogram (around $103-128 per ton) and sell it at around Tk29 per
kilogram (around $372 per ton) in the local market. Local sources say the traders are getting
huge benefits by importing rice from India and selling at high prices in Bangladesh.
The Food Minister reportedly apprised the Cabinet the Indian traders have been selling rice
cheaply to Bangladeshi traders in order to clear their old rice stocks.Rice imports so far in 201415 have reached a four-year high despite a good production from all Aman (July - December),
Aus (February - August) and Boro (January - May) seasons in the fiscal year 2013-14 due to
lower prices in India as well as a zero-duty on rice imports. The data from the Food Ministry
shows that the government has so far not imported any rice in this fiscal year and all the overseas
purchases are carried out by the private sector. The government has in fact set a target to import
about 200,000 tons of rice in the fiscal year 2014-15 to replenish falling stocks in the
country.Bangladesh produced around 34.449 million tons of rice, basis milled, in FY 2013-14
(July - June), up about 2.7% from around 33.833 million tons produced in FY 2012-13,
according to the Agriculture Ministry.

Global Rice Quotes

April 1st, 2015
Long grain white rice - high quality
Thailand 100% B grade 395-405

Vietnam 5% broken

360-370

India 5% broken

375-385

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Pakistan 5% broken

350-360

Myanmar 5% broken

410-420

Cambodia 5% broken

435-445

U.S. 4% broken 480-490

Uruguay 5% broken

575-585

Argentina 5% broken

565-575

Long grain white rice - low quality

Thailand 25% broken

370-380

Vietnam 25% broken

340-350

Pakistan 25% broken

325-335

Cambodia 25% broken 410-420

India 25% broken

340-350

U.S. 15% broken

470-480

Long grain parboiled rice

Thailand parboiled 100% stxd

385-395

Pakistan parboiled 5% broken stxd

385-395

India parboiled 5% broken stxd 370-380

U.S. parboiled 4% broken

555-565

Brazil parboiled 5% broken

570-580

Uruguay parboiled 5% broken NQ

Long grain fragrant rice

Thailand Hommali 92% 890-900

Vietnam Jasmine

460-470

India basmati 2% broken

NQ

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Pakistan basmati 2% broken
Cambodia Phka Mails

NQ

810-820

320-330

Vietnam 100% broken 310-320

Brokens
Thailand A1 Super

Pakistan 100% broken stxd

Cambodia A1 Super

280-290

340-350

India 100% broken stxd 275-285

Egypt medium grain brokens

NQ

U.S. pet food

370-380

Brazil half grain NQ

All prices USD per ton, FOB vessel, oryza.com

Italy Faces Shortage of Rice Weeders

Mar 31, 2015

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In Italy, rice weeders are usually employed by rice growers in summer and spring seasons to
clean ancient rice varieties from weeds mainly to preserve the purity of the seeds.Earlier they
were brought from remote places to major rice growing regions such as Vercelli, Mortara and
Novara. However, of late, it is getting difficult to find local rice weeders, says the Ente
Nazionale Risi (ENR), the National Agency for Rice.
Surprisingly, the ENR itself could hardly find rice weeders when it wanted to employ some of
them in its experimental farm. The agency had to launch a job search to find trained, learned rice
weeders. The agency says some Chinese people working in restaurants or factories and know
well about rice are accepting these jobs on a part time basis. The idea is to earn extra wages
during the summer months.

Government of Colombia May End Subsidies

to Rice Milling Industry in 2015, Says USDA
Post

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Mar 31, 2015

The government of Colombia had negotiated subsidies to the rice milling industry if they paid a
price of $40 per ton to rice growers. However, the government is planning to end the subsidies to
rice milling industry in 2015 due to high rice prices and its budget constraints, according to
USDA Post. But the Post expects the government to introduce subsidies to the rice millers if the
rice prices fall in the later part of 2015.
As per the U.S.-Colombia Trade Promotion Agreement (CTPA), Colombia imports about 86,270
tons of rice under the U.S. rice TRQ at zero-percent duty, and maintains an 80% duty on rice
imports over and above U.S. rice TRQ. The Post reports that in 2014, the government has fully
subscribed the annual rice import quota under the U.S. rice TRQ of 86,270 tons and also
imported paddy and milled rice with an 80% tariff. Colombia imported about 13,300 tons of
paddy in 2014, up about 51% from about 8,800 tons in 2013.
The Post estimates Colombia to import around 350,000 tons of rice in 2014-15 (April - March),
up about 8% from around 325,000 tons in 2013-14. It estimates rice imports to decline to around
300,000 tons in 2015-16. The 2015 rice TRQ is set at about 90,152 tons. The first 2015 TRQ
auction was held on February 2, 2015 and 70% of the total quota or about 63,131 tons was
allotted. By March 5, 2015, about 12% of the total quota or 10,161 tons of rice was imported.
Two more auctions are scheduled for June 4, 2015 for 13,104 tons and for October 15, 2015 for
13,917 tons. The Post reports that around 300,000 - 500,000 tons of rice is imported unofficially
into the country from neighboring countries such as Ecuador, Peru and Venezuela.
The Post estimates Colombia's 2014-15 milled rice production to decline about 7% to around
1.22 million tons from around 1.31 million tons in 2013-14. However, the Post estimates the
country's production to increase to 1.35 million tons in 2015-16 due to an increase in acreage to
around 450,000 hectares from an estimated 390,000 hectares in 2013-14.The Colombian
government does not maintain rice stocks but offers financial storage incentives for producers
and millers to hold inventories. The Post estimates Colombia's rice stocks in 2014-15 to decline
by 25% to around 90,000 tons from around 120,000 tons in 2013-14. However, it expects stocks
to increase to around 140,000 tons in 2015-16.The Colombian annual rice consumption needs are
expected to be unchanged at last two years' level of around 1.6 million tons, according to the
Post.

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Oryza Overnight Recap Chicago Rough

Rice Futures Slightly Lower as Traders Await
Planting Intentions Report
Mar 31, 2015

Chicago rough rice futures for May delivery are currently seen 3 cents per cwt (about $1 per ton)
lower at $11.090 per cwt (about $244 per ton) ahead of floor trading in Chicago. The other
grains are seen trading lower overnight: soybeans are currently seen about 0.4% lower, wheat is
listed about 0.9% lower and corn is currently noted about 0.5% lower.
U.S. stocks index futures indicated a lower open Tuesday, on the final day of the first quarter
ahead of a number of key data releases. The latest consumer confidence reading will be released
by the Conference Board at 10.00 a.m. ET and is expected to show a modest up-tick in sentiment
in March. While the indicator seems bound to remain below January's post-crisis high, it should
be consistent with a decent spending mood among U.S. consumers. The Chicago PMI for March
will also be released at 09:45 a.m. ET. Richmond Federal Reserve President Jeffrey Lacker said
on Tuesday that there is a strong case for an increase in the fed funds rate relatively soon.
European equities hit session lows Tuesday, as investors reacted to fresh economic data from the
euro zone and booked some profits after a stellar rally in the previous session. Gold is currently
trading slightly higher, crude oil is seen trading about 2.3% lower, and the U.S. dollar is
currently trading about 0.5% higher at 9:00am Chicago time.

Oryza Afternoon Recap - Chicago Rough

Rice Futures Tumble as USDA Confirms
Increased Stocks and Corn and Wheat Weigh
on Prices
Mar 31, 2015

Chicago rough rice futures for May delivery settled 24.5 cents per cwt (about $5 per ton) lower
at $10.875 per cwt (about $240 per ton). Rough rice futures closed sharply lower despite an
initial attempt by the bulls to maintain yesterdays gains in pre report trading. However by the
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ringing of the closing bell prices had fallen over 2% from their opening level in response to a
confirmed increase in rice stocks and in conjunction to bearishness in wheat and corn. Todays
decline has once again confirmed firm overhead resistance at the $11.160 per cwt (about $246
per ton) level which has been confirmed multiple times over previous trading sessions. Todays
failure is seen as a bearish development and indicates that the market will likely continue to trade
in a back-and-forth motion until a new trend is triggered by a technical breakout or change in the
fundamental outlook. The other grains finished the day with sharply contrasting results as they
reacted to todays crop production estimates, with soy products reacting favorably while corn
and wheat responded bearishly; Soybeans closed about 0.6% higher at $9.7325 per bushel; wheat
finished about 3.5% lower at $5.1175 per bushel, and corn finished the day about 4.6% lower at
$3.7625 per bushel.
U.S. stocks traded lower on Tuesday, giving back some of Monday's major gains, as investors
eyed economic data and the end of the first quarter. The Dow Jones industrial average briefly fell
more than 100 points as all the major indices declined about half a percent. The U.S. dollar is up
9% for the year and is expected to continue weighing on corporate earnings, which begin
reporting in April. In other economic news, the Chicago PMI for March posted 46.3, a slight
increase from last month but below expectations for 51.5. Case-Shiller house price indices for
January showed an increase from last year. The key report for the week will be Friday's jobs
report, which comes when markets are closed for Good Friday. Before then, investors will also
watch Wednesday's ADP private payrolls report and Thursday's weekly jobless claims.
Federal Reserve policymakers give remarks on Tuesday following dovish comments from Fed
Chair Janet Yellen and Vice Chair Stanley Fischer in the last two days. The Dow Jones Industrial
Average traded down 74 points, or 0.42%, to 17,901. The S&P 500 traded down 6 points, or
0.30%, at 2,079, with energy the greatest of nine declining sectors and consumer discretionary
the only gainer. The Nasdaq traded down 17 points, or 0.35%, at 4,930. Gold is trading about
0.3% higher, crude oil is seen trading about 0.8% lower, and the U.S. dollar is seen trading about
0.5% higher at about 1:30pm Chicago time.Monday, there were 996 contracts traded, up from
407 contracts traded on Friday. Open interest the number of contracts outstanding on
Monday decreased by 66 contracts to 8,886.

Pakistan Rice Sellers Increase Some of Their

Quotes Today; Other Asia Rice Quotes
Unchanged
Mar 31, 2015

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Pakistan rice sellers increased their quotes for 25% broken rice by about $5 per ton to around
$325 - $335 per ton today. Other Asia rice sellers kept their quotes mostly unchanged today.
5% Broken Rice
Thailand 5% rice is indicated at around $385 - $395 per ton, about a $20 per ton premium on
Vietnam 5% rice shown at around $365 - $375 per ton. India 5% rice is indicated at around $375
- $385 per ton, about a $25 per ton premium on Pakistan 5% rice shown at around $350 - $360
per ton.
25% Broken Rice
Thailand 25% rice is shown at around $370 - $380 per ton, about a $30 per ton premium on
Vietnam 25% rice shown at around $340- $350 per ton. India 25% rice is indicated at around
$340 - $350, about a $15 per ton premium on Pakistan 25% rice shown at around $325 - $335
per ton, up about $5 per ton from yesterday.
Parboiled Rice
Thailand parboiled rice is indicated at around $385 - $395 per ton. India parboiled rice is
indicated at around $370 - $380 per ton, about a $15 per ton discount to Pakistan parboiled rice
shown at around $385 - $395 per ton.
100% Broken Rice
Thailand broken rice, A1 Super, is indicated at around $320 - $330 per ton, about a $10 per ton
premium on Vietnam 100% broken rice shown at around $310 - $320 per ton. India's 100%
broken rice is shown at around $275 - $285 per ton, about a $5 per ton discount to Pakistan
broken sortexed rice shown at around $280 - $290 per ton.

Spanish Paddy, Rice Quotes Firm

Mar 31, 2015

Spanish quotations for both paddy and milled rice supplied by the Ministry of Agriculture for the
week March 16-22 show little change from the previous week, remaining firm. Indica paddy
quotes on the Badajoz Grain Exchange held at 281 euro (about $ 306) per ton, unchanged from
the last two weeks. Indica paddy on the Seville Grain Exchange advanced to 281 euros (about $
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306) per ton in the week March 16-22, up from 271 euros (about $ 295) per ton March 9-15.
Japonica rice on the Badajoz Grain Exchange is shown at 290 euros (about $ 315) per ton; on the
Valencia Grain Exchange at 342 euros (about $ 372) per ton; and in Seville Grain Exchange at
300 euros (about $ 326) per ton in March 16-22, up from 290 (about $ 315) per ton on March 915. Milled rice in Tarragona was firm at 550 euros (about $ 599) per ton, and steady in Valencia
at 597.5 euros (about $ 650) per ton.

Senegal Cannot Achieve Rice Self-Sufficiency

Without Trained Farmers, Warn Agriculture
Experts
Mar 31, 2015

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Agricultural experts meeting in a forum in the capital city of Senegal warned the government
that self-sufficiency in rice production cannot be achieved without qualified and trained farmers,
according to local sources.
Senegal is a net importer of rice and imports about 80% of around 1.4 million tons of rice needed
for its domestic consumption. The government has been keen on reducing dependence on
imports by increasing rice production. In this direction, the government had launched an
ambitious $148 million program to achieve self-sufficiency in rice production by 2017. The
Prime Minister also hinted at imposing taxes and duties on rice imports to protect local rice
sector.
However, agricultural experts participating in the forum noted that rice self-sufficiency cannot be
achieved without qualified farmers who can use modern technology effectively. The Director for
the National Office for Professional Training noted that the government should consider
providing training to farmers on using modern technologies and educate them on issues related to
increasing rice production.
Some experts also said the government should encourage more young and educated people to
engage in rice production and contribute significantly to the country's rice sector. Currently, only
5% of qualified youth are engaged in the agriculture sector, according to Senegal's Professional
Training Minister.
Agriculture, Professional Training and Livestock Ministers who were present at the forum said
more funds should be allocated to their Ministries in order to implement the suggested measures.
USDA estimates Senegal to produce about 289,000 tons of rice and import around 1.15 million
tons in MY 2014-15 (October - September) to meet a consumption demand of around 1.45
million tons.

Vietnam's Rice Policy Not Lucrative for

Farmers or Environment, Say Experts
Mar 31, 2015

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Vietnam's policy to increase rice production has paid off in terms of increased exports and
foreign exchange but has not been very beneficial to rice farmers or environment, according to
experts.Farmers have been used to grow three crops a year to maintain pace of production and
exports but their incomes have not risen proportionately due to increased costs for fertilizers and
land preparation for each crop. Also the quality of rice grown is said to be of low quality
compared to the quality of rice grown by other exporting nations such as Thailand, India and
Pakistan.
On the other hand too much of rice growing has been degrading soil efficiency, say experts.
They noted that several dykes built to block flood water have been preventing soil nutrients from
flowing freely and over time thereby leading to fading of soil fertility.
Experts are suggesting that the government of Vietnam encourage only two rice crops a year and
support farmers to shift to a more diverse range of crops, from coconuts to prawns, and use the
most suitable and fertile land to grow rice. They are also suggesting that the government should
focus on improving quality and branding to sell Vietnamese rice at high prices.Since the effects
of climate change, including floods and salt water intrusion, in the countrys Mekong River Delta
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are already threatening Vietnam's rice production, experts warned that unless the government
adopts the suggested measures the Mekong River Delta is likely to lose its fertility.

Senegal Cannot Achieve Rice Self-Sufficiency

Without Trained Farmers, Warn Agriculture
Experts
Mar 31, 2015

16

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Agricultural experts meeting in a forum in the capital city of Senegal warned the government
that self-sufficiency in rice production cannot be achieved without qualified and trained farmers,
according to local sources.Senegal is a net importer of rice and imports about 80% of around 1.4
million tons of rice needed for its domestic consumption. The government has been keen on
reducing dependence on imports by increasing rice production. In this direction, the government
had launched an ambitious $148 million program to achieve self-sufficiency in rice production
by 2017. The Prime Minister also hinted at imposing taxes and duties on rice imports to protect
local rice sector.
However, agricultural experts participating in the forum noted that rice self-sufficiency cannot be
achieved without qualified farmers who can use modern technology effectively. The Director for
the National Office for Professional Training noted that the government should consider
providing training to farmers on using modern technologies and educate them on issues related to
increasing rice production.Some experts also said
the government should encourage more young and educated people to engage in rice production
and contribute significantly to the country's rice sector. Currently, only 5% of qualified youth are
engaged in the agriculture sector, according to Senegal's Professional Training
Minister.Agriculture, Professional Training and Livestock Ministers who were present at the
forum said more funds should be allocated to their Ministries in order to implement the
suggested measures.USDA estimates Senegal to produce about 289,000 tons of rice and import
around 1.15 million tons in MY 2014-15 (October - September) to meet a consumption demand
of around 1.45 million tons.

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