News Headlines

Colombia rice growers saved from ruin after being told

not to plant their crop
Crew makes 1,126-pound bowl of Hawaii rice dish
Arkansas Farm Bureau Daily Commodity Report
S. Korea notifies WTO of plan to liberalize rice market
via tarrification
Commerce to accept direct rice orders
Hooda threatens stir for higher rice price
Rice self-sufficiency still attainable by end-2015 --
Agriculture chief
Nagpur Foodgrain Prices Open- Sep 30
Basmati prices decline 25% in Punjab
TABLE-Planting status for major monsoon crops
TABLE-Initial output estimates for main summer crops
PDMO to refinance rice debt
USA Rice Helps ATO Mexico Kick-Off First Marketing
Roundtable
Application Deadline for Rice Leadership Program Nears
Louisiana Wraps Up National Rice Month Celebrations
Paddy harvesting starts in Punjab, Haryana; late rains
improve sentiment
Rice output hits a record high
Punjab offers incentives to rice millers from outside of
state
Punjab and Haryana markets receive new paddy crops
Odisha waives two per cent CST on interstate trade of
rice

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Daily Global Rice E-Newsletter
30
th
September, 2014
News Detail.
Colombia rice growers saved
from ruin after being told not
to plant their crop

Farmers given radical advice
following a drought warning by
scientists using a computer data
tool that reaped a UN reward
Fedearroz agronomist Cristo Perez selects rice
plants in Monteria, Cordoba.Photograph: Eitan
Abramovich/AFP/Getty Images

Colombias rice farmers were already
struggling with climate change and unfair
trade rules when they received an unlikely
recommendation based on research from one
of the winners of the UN Big Data Climate
Challenge: Dont plant in this sowing
season. The advice came from Fedearroz,
the main organisation for rice growers in the
country, and helped 170 farmers in Crdoba
avoid economic losses of an estimated
$3.6m (2.2m).

Scientists at the International Center for
Tropical Agriculture (Ciat) had forecast that
the first growing season of the year would
coincide with a severe dry period and an
acute water deficit. They urged farmers in
the Caribbean department of Crdoba, one
of the countrys five rice producing areas, to
sow immediately to avoid an estimated yield
decline of 3% for each week without
sowing, but Fedearroz talked to farmers and
recommended that they did not sow at all in
the first growing season.Growers in Crdoba
heeded the advice and left 1,800 hectares
(4,448 acres) unplanted. It saved many from
potential ruin; their neighbours who did sow
paid a heavy price.

The information came as the result of case
studies carried out by agricultural
geographer Andy Jarvis and his colleagues
at Ciat using the climate-smart, site-specific
agriculture decision-making tool for which it
won the UN challenge.scar Prez, a rice
grower who benefited from the information,
believes he has been saved despite having
missed a harvest. We have to earn [the
amount needed for] the year with the second
semester harvest, which is generally better
in yields and prices, he said. Prez plants
120 hectares of rice in Crdoba, where he
employs 10 labourers, and maize and cotton
in another 400 hectares.

The Ciat team used data-mining techniques
to analyse information from annual rice
surveys, harvest monitoring data and
experiments on rice sowing dates provided
by Fedearroz as well as weather data from
the national institute of hydrology,
meteorology and environmental
studies.Jarvis, who says up to half of the
variability in rice yields can be attributed to
the changing climate, said the researchers
had looked for relations between yields and
climate in two areas: Crdoba and the
central department of Meta. As well as
forecasting a drought, the team
recommended the adoption of rice varieties
that were less sensitive to sunlight.A flock
of egrets above a flooded rice plantation in
Monteria, Colombia. Photograph: Bobby
Haas/NG/Getty Images

National yields in Colombia have been hit
hard by climate change. Rice has declined
from six to five tonnes per hectare in the
past five years, says Patricia Guzmn,
Fedearrozs technical manager. Weather
changes are strong and highly different in
every rice region and season, she said.The
case studies are part of a two-year
agreement between the ministry of
agriculture and Ciat to implement a
programme to help farmers adapt based on
statistical work to obtain modelling and
weather forecasts for rice, cassava, beans,
maize and potato.Scientists started with rice
because it is the staple food most consumed,
particularly among poor people, who make
up 30% of the population(pdf), according to
national statistics agency Dane. Chronic
malnutrition(affects 13% of Colombian
children under five (up to 17% in rural
areas), while 27% of those children (more
than 30% in rural areas) suffer fromanaemia,
according to the government.
But rice is expensive to grow in Colombia
and many small-scale and subsistence
farmers cannot compete with imports from
the US, Peru and Ecuador, not to mention
contraband from those countries and from
Venezuela, which heavily subsidises the rice
it imports. Colombia produces 2.2m tonnes
per year, while smuggled rice amounts to
300,000 tonnes, Fedearroz says.Sometimes,
south-east Asian rice ends up on Colombian
tables, says Miguel Gordillo Hernndez, co-
ordinator of Tolimas Salvacin
Agropecuaria (Agricultural Salvation), a
group organising peasants to combat
policies that open the local food market to
the world.
According to the 2012 free trade agreement
(FTA) with the US, about 50,000 tonnes of
US tax-free rice enters the country every
year. Over this quota, the subsidised US rice
is charged with an import tariff of 80%, to
be phased out over a period of 19 years.Rice
is highly vulnerable to the FTA, says
Gordillo Hernndez. Machinery, pesticides
and fertilisers are imported and costly, while
a local oligopoly of rice mills until recently
controlled domestic prices by running the
existing laboratories to analyse quality, a
key factor in fixing the price farmers get for
their crop.These problems and the difficult
weather conditions put immense pressure on
growers, who joined nationwide protests
against the government last year. In
subsequent negotiations, the government
agreed to establish a reference laboratory to
measure quality, ending the advantage of the
mills in forming prices. It also devised a
storage subsidy that the mills have to
transfer to growers.Both measures have
slightly improved rice prices for growers,
which are 5-8% above production costs,
Gordillo Hernndez says.
The government has also promised to
eliminate import tariffs on agricultural
inputs, such as fertilisers and machinery.But
farmers are demanding public investments
in technology and irrigation, debt
alleviation, a crackdown on smuggled goods
and renegotiation of FTAs. Otherwise, they
argue, the future for rice growing in
Colombia will be bleak.Colombia is
already importing 9m tonnes of food. The
day will come when all the food will be
imported, Gordillo Hernndez warns.


Crew makes 1,126-pound bowl
of Hawaii rice dish
The Associated Press
POSTED: 09/30/2014 08:45:19 AM EDT0 COMMENTS


HONOLULU (AP) A group is claiming a
world record for a popular Hawaii dish, after
putting together a massive bowl of rice,
hamburger, eggs and gravy.Chef Hideaki
Miyoshi of Tokkuri Tei restaurant and
volunteers at Sunday's Fifth Annual Rice
Festival assembled a bowl of loco moco that
weighed 1,126 pounds.Loco moco was
invented in the late 1940s in Hilo. There are
varieties, but the basic dish consists of hot
white rice, a hamburger patty, an over-easy
fried egg and brown gravy.Guinness World
Records said the dish would have to weigh at
least 1,100 pounds for consideration.
Miyoshi and his crew used more than 600
pounds of rice, 200 pounds of ground beef,
300 scrambled eggs and 200 pounds of gravy.
They used donated rice and borrowed kitchen
space at Ward Centers.The festival holds the
Guinness World Record for making a 286-
pound Spam musubi in 2011, the Honolulu
Star-Advertiser reported
(http://bit.ly/1uwSc9Z ).The big loco moco
took 3 hours to prepare and then was
donated to charity to feed the homeless,
organizer Lincoln Jacobe said.Some loco-
moco purists were critical of the use of
scrambled eggs instead of over-easy eggs."If
you order at a restaurant, they ask you how
you want your egg," Cesar Panocillo said.
"So I guess it's a preference. Some people
might like it scrambled."The event also
featured a Spam-musubi eating contest. Randy
Javelosa beat four-time champion Ron Lee by
eating seven of the canned meat, dried
seaweed and rice snack in two minutes.I just
tried to scarf it down and keep it down," said
Javelosa, whose prize was a year's worth of
free rice.I'll be back next year," Lee vowed.

Arkansas Farm Bureau Daily
Commodity Report


A comprehensive daily commodity market report
for Arkansas agricultural commodities with cash
markets, futures and insightful analysis and
commentary from Arkansas Farm Bureau
commodity analysts.
Noteworthy benchmark price levels of interest to
farmers and ranchers, as well as long-term
commodity market trends which are developing.
Daily fundamental market influences and technical
factors are noted and discussed.
Soybeans
High Low
Cash Bids 928 864
New Crop 924 899


Riceland Foods

Cash Bids Stuttgart: 903 Pendleton: 903
New Crop Stuttgart: 907 Pendleton: 912


Future
s:

High Low Last
Chang
e
Nov
'14
930.0
0
909.7
5
913.2
5
-
10.2
5
Jan
'15
938.5
0
918.2
5
921.2
5
-
11.0
0
Ma
r
'15
946.5
0
926.5
0
929.7
5
-
10.7
5
Ma
y
'15
954.5
0
934.7
5
938.0
0
-
10.7
5
Jul
'15
961.0
0
941.2
5
944.5
0
-
10.2
5
Aug
'15
960.7
5
945.2
5
947.5
0
-
10.0
0
Sep
'15
949.7
5
941.0
0
939.5
0
-
8.75
Nov
'15
951.7
5
931.7
5
937.5
0
-
7.00
Jan
'16
956.7
5
942.0
0
944.2
5
-
6.50


Soybean Comment
Soybean prices closed lower after starting the day
out higher. While the stocks report was bullish for
soybeans, the market quickly digested this number
and moved onto this year. Stocks as of September
1 were only 92 million bushels, that compares to
an average trade estimate of 126 million bushels.
This number was below even the low end of trade
estimates, typically this would lead to a rally in
soybean prices; however, we are already seeing a
large crop from the southeast coming off and
filling the void. Additionally early reports out of
the lower Midwest show excellent yields also. So
while we had a temporary tight stocks record
supplies this year will fill the void quickly, and
likely continue to push prices lower in the coming
days. It looks like the technical rally is dead again
and prices will again make their march back
towards $9.


Wheat
High Low
Cash Bids 436 396
New Crop 502 454


Future
s:

High Low Last
Chang
e
Dec
'14
481.7
5
468.0
0
477.7
5
-
3.50
Ma
r
'15
495.0
0
481.7
5
490.5
0
-
3.50
Ma
y
'15
502.7
5
491.2
5
498.7
5
-
4.00
Jul
'15
509.2
5
497.7
5
504.5
0
-
4.00
Sep
'15
519.2
5
510.0
0
515.5
0
-
3.25
Dec
'15
535.0
0
526.0
0
531.7
5
-
2.75
Ma
r
'16
546.0
0
541.7
5
542.7
5
-
2.00
Ma
y
'16
548.0
0
548.0
0
547.5
0
-
1.50
Jul
'16
538.7
5
535.0
0
540.2
5
-
3.50




Wheat Comment
Wheat prices closed the day lower again today.
Prices continue to feel the pressure of large
supplies. Todays stocks report provided no
surprises for the wheat market coming in right in
line with trade expectations. Look for these prices
to continue to trend lower as weak fundamentals
and outside markets pressure prices lower.


Grain Sorghum
High Low
Cash Bids 331 276
New Crop 326 326


Corn
High Low
Cash Bids 305 258
New Crop 301 276


Future
s:

High Low Last
Chang
e
Dec
'14
326.2
5
319.5
0
320.7
5
-
5.00
Ma
r
'15
338.5
0
332.5
0
333.5
0
-
5.00
Ma
y
'15
347.0
0
341.0
0
342.0
0
-
5.00
Jul
'15
354.2
5
348.0
0
349.5
0
-
4.50
Sep
'15
361.5
0
356.0
0
356.7
5
-
4.50
Dec
'15
371.0
0
365.5
0
366.7
5
-
4.00
Ma
r
'16
380.0
0
375.0
0
376.2
5
-
3.75
Ma
y
'16
387.0
0
383.2
5
383.5
0
-
3.50
Jul
'16
393.0
0
388.7
5
389.2
5
-
3.50



Corn Comment
Corn prices closed lower today. Prices took
another blow today after the September stocks
report came in above average trade estimates and
near the high end of trade expectations. Look for
this news to continue to drive corn prices to more
new lows in the coming days ahead of the October
USDA report. This report is widely expected to
raise production even higher, and todays report
indicates demand in the fourth quarter of the last
marketing year was slower than expected. This
could hinder the USDA from raising demand, and
push most of the additional supplies into stocks.


Cotton
Futures:

High Low Last Change
Oct
'14
- - - - - - 61.37 -0.1
Dec
'14
62.07 61.01 61.37 -0.1



Memphis, TN Cotton and Tobacco Programs
Cotton Comment
Cotton futures were in the red across the board
today, with December managing to hold above
support at the contract low of 60.83 cents. Last
weeks sell off took prices to their lowest level in
nearly 5 years. The impetus for the move was news
that China has reduced their import quota for 2015
to 894,000 metric tons, which is the absolute
minimum allowed under their WTO obligations.
Last year, China imported between 600,000 and
800,000 metric tons in excess of the minimum, and
the most recent USDA report forecast is more in
line with last years total, so Chinas
announcement is hitting the market hard. Harvest
pressure will also begin to have an impact on the
market. Harvest pressure will increase, as the crop
is now 10% harvested. Crop conditions improved
slightly this week, with 49% of the crop rated good
to excellent.


Rice
High Low
Long Grain Cash Bids - - - 1214/cwt
Long Grain New Crop - - - - - -


Future
s:

High Low Last
Chang
e
Nov
'14
1284.
0
1270.
5
1274.
5
+1.0
Jan
'15
1296.
5
1288.
0
1289.
5
-1.5
Ma
r
'15
1312.
0
1312.
0
1309.
5
-1.5
Ma
y
'15
1330.
0
-1.0
Jul
'15
1348.
0
-1.0
Sep
'15
1291.
0
-1.0
Nov
'15
1291.
0
-1.0


Rice Comment
Rice futures were fractionally mixed, with
November a bit higher. Harvest pressure continues
to be a factor, as U.S. producers now have 59% of
the crop in the bins, up from 46% just last week.
Arkansas producers have reportedly harvested
62% of the crop, up from 44% a week ago.
Fridays high of $12.91 is the first level of
resistance between current price levels and key
resistance at $13.


Cattle
Futur
es:

Live
Cattle
:

High Low Last
Chang
e
Oct
'14
161.6
75
159.9
00
160.1
50
-
0.80
0
Dec
'14
164.9
75
163.1
75
163.4
00
-
1.07
5
Feb
'15
164.7
00
163.4
00
163.6
50
-
0.70
0
Ap
r
'15
163.2
00
161.8
50
162.0
00
-
0.90
0
Jun
'15
153.7
25
152.1
75
152.3
75
-
0.77
5
Au
g
'15
151.8
50
150.7
50
150.8
50
-
0.60
0
Oct
'15
153.2
75
152.0
75
152.2
50
-
1.00
0
Dec
'15
153.5
00
152.5
50
152.6
50
-
0.85
0
Feb
'16
153.4
00
152.4
00
152.7
50
-
0.75
0


Feede
rs:

High Low Last
Chang
e
Oct
'14
236.1
75
234.7
00
235.5
00
+0.8
50
Nov
'14
235.9
50
234.2
00
235.0
00
+0.5
00
Jan
'15
229.9
00
228.1
50
228.8
50
+0.2
25
Ma
r
'15
227.7
50
226.1
25
226.6
75
+0.3
25
Apr
'15
227.5
50
226.1
50
226.6
75
-
0.02
5
Ma
y
'15
227.3
25
225.9
50
226.4
50
+0.6
50
Au
g
'15
227.8
50
226.8
25
227.0
00
-
0.10
0
Sep
'15
225.7
75
225.5
75
225.5
00
+0.5
50



Arkansas Prices

Oklahoma City
Cattle Comment
Livestock prices were mixed today as live cattle
moved lower and feeders continue to rally. The
losses were limited in the live cattle market as tight
supplies continue to support these prices. Look for
these lower grain prices to add additional support
this fall and help keep feeder demand strong as
margins remain favorable.


Hogs
Futur
es:

High Low Last
Chang
e
Oct
'14
108.7
50
107.1
00
107.8
50
+0.5
25
Dec
'14
95.95
0
93.50
0
94.50
0
-
0.35
0
Feb
'15
91.17
5
89.37
5
90.57
5
+0.6
25
Apr
'15
90.80
0
89.52
5
90.80
0
+1.3
00
Ma
y
'15
91.40
0
90.32
5
90.50
0
+0.2
00
Jun
'15
94.10
0
93.05
0
93.92
5
+0.7
75
Jul
'15
92.10
0
91.07
5
91.95
0
+1.0
50
Au
g
'15
89.40
0
88.42
5
89.25
0
+0.7
00
Oct
'15
75.55
0
75.20
0
76.00
0
0.00
0




S. Korea notifies WTO of plan to
liberalize rice market via
tarrification

2014/09/30 14:23

SEJONG, Sept. 30 (Yonhap) -- South Korea
on Tuesday formally notified the World
Trade Organization (WTO) on Tuesday it
will open its rice market starting next year
with a 513 percent tariff rate."The
government has submitted to the WTO
secretariat its plan to revise the country's
tariff rate on rice imports ahead of market
opening through tarrification that will go
into effect Jan. 1, 2015," the Ministry of
Trade, Industry and Energy said in a press
release.


Commerce to accept direct rice
orders

September 30, 2014 6:25 pm

The Commerce Ministry will allow rice traders
to place purchase orders directly as an additional
channel beside auctions for releasing rice from
government stocks.Duangporn Rodphaya,
director-general of the Foreign Trade
Department, said every rice trader that has an
order from overseas could submit a purchase
order for any kind of rice grain directly to the
ministry, and then the working committee on
rice sales would consider whether to accept the
offered price. he ministry will soon open another
auction for about 100,000 tonnes of rice to
general traders. In the last auction, which offered
139,000 tonnes, it was able to sell 72,085 tonnes
worth Bt909 million to 13 traders.

The Nation


Hooda threatens stir for higher
rice price
Express News Service | Chandigrah |
September 30, 2014 4:36 pm

Haryana CM Bhupinder Singh Hooda
inspects rice grains at Tarawadi Grain
Market on Monday. (Source: PTI)
Haryana Chief Minister Bhupinder Singh
Hooda Tuesday threatened to sit on dharna
if the Centre failed to ensure better prices of
rice for farmers. He said that had he not
been holding a constitutional post, he would
have sat on dharna today itself.A statement
issued by the government read, Haryana
CM Bhupinder Singh Hooda today warned
the Centre that he may take a drastic step
like sitting on dharna in Taraori mandi along
with farmers if the central government did
not take immediate measures to ensure
better prices of rice for farmers.
During a discussion with farmers in Taraori
and Guhla Cheeka, Hooda attacked the
Centre for fall in prices of Basmati and
cotton. He also attacked the BJP for increase
in diesel prices and drought issues.I cannot
see farmers suffer because of low prices of
produce, especially rice. I am ready to
launch a struggle with them. I had already
written to the Centre seeking a ban on rice
export, Hooda told the farmers. He is on a
statewide tour, campaigning for Congress
candidates.In the last 10 years of UPA rule
at the Centre and Congress rule in Haryana,
a great deal of development has taken place.
Farmers in Haryana benefitted and the rate
of interest on crop loan was reduced. It will
not be changed in future if we are voted to
power, Hooda told the farmers.Hooda also
attacked the BJP for not being able to
declare its chief ministerial candidate till
date.


Rice self-sufficiency still
attainable by end-2015 --
Agriculture chief


RICE SELF-SUFFICIENCY continues to be in
sight for the Philippines, a Cabinet official
yesterday said, even as the government missed a
previous end-2013 target for its
achievement.Agriculture Secretary Proceso J.
Alcala told reporters at the sidelines of the
Philippine Economic Briefing in Pasay City on
Tuesday that the country currently has an
average rice harvest of 3.8 metric tons (MT) per
hectare and is most likely to achieve a 4.2-MT
per hectare harvest possibly by the end of 2015
to achieve 100% sufficiency in the staple.We
are not backing out from our self-sufficiency
goal.

Projections should have a matching budget and
we think that the budget given to us this 2014 is
enough to increase the rice self-sufficiency from
96%, Mr. Alcala said in Filipino.The
Agriculture chief said that the countrys rice
self-sufficiency level is expected to reach 97-
98% this year.He noted, however, that even if
the country achieves 100% rice self-sufficiency,
it will still have to import rice under the
minimum access volume (MAV) of 805,200 MT
-- 50,000 MT of which will be omnibus, and the
remaining 755,200 MT country-specific. The
MAV is an obligation. We cannot reject that,
Mr. Alcala said.In a bid to improve the
production of the staple to fulfill projected
demand, in 2015, the Agriculture chief noted,
additional interventions will also be
implemented.I think the lack of interventions
will be addressed by that time, he
said.Agricultural mechanization, he noted,
which will also be a driver to achieve the
sufficiency goal, as this will increase the sectors
efficiency and productivity.

Sought for comment yesterday, Rolando T. Dy,
executive director of the University of Asia &
the Pacifics Center for Food and Agribusiness,
said he agreed with Mr. Alcala, noting that rice
production in the country remains low and that
boosting yield should be a priority.The DA
(Department of Agriculture) secretary is correct.
Philippine yield of 3.8 tons per hectare is far
lower than the 5 tons or more for Indonesia and
Vietnam, he said in a text message.Mr. Dy
likewise noted that for production to improve,
interventions extending to the local government
level must be made.For this (rice production) to
go up, the local government unit extension
service must upgrade their faltering
competencies.

The DA needs to focus its resources on areas
with high probability of success, he
said.According to a report by the United States
Department of Agriculture -- Foreign
Agricultural Service, the Philippines posted the
highest percentage increase in milled rice
production in the last six years.The countrys
milled rice production grew by an average of
5.05% in the period. This average is followed by
Egypt (4.85%), India (4.29%), Cambodia
(3.94%), and Bangladesh (2.80%).For this year,
the DA is targeting rice production of some
19.07 million MT of rice, up from the 18.44
million MT recorded in 2013. In the first half,
rice output reached 8.38 million MT, 4.78%
higher than the 7.99 million MT in the same
period in 2013. -- J.V.D. Cabuenas


Nagpur Foodgrain Prices Open-
Sep 30
Tue Sep 30, 2014 1:43pm IST
Nagpur, Sept 30 (Reuters) - Gram prices in
Nagpur Agriculture Produce and Marketing
Committee (APMC) firmed up again on
increased demand from local millers amid weak
supply from producing regions. Fresh rise on
NCDEX, upward trend in Madhya Pradesh
soyabean prices and reported demand from
South-based millers also jacked up prices,
according to sources.

* * * *

FOODGRAINS & PULSES
GRAM
* Gram varieties ruled steady here on subdued
demand from local traders amid ample
stock in ready position.

TUAR
* Tuar gavarani declined further in open
market on poor buying support from local
traders. Reports about good overseas arrival
also pushed down prices.

* Moong varieties reported down in open
market on lack of demand from
local traders amid good arrival from
producing belts.

* In Akola, Tuar - 4,800-4,900, Tuar dal -
7,000-7,200, Udid at 7,000-7,200,
Udid Mogar (clean) - 8,000-8,300, Moong -
6,900-7,300, Moong Mogar
(clean) 8,300-9,000, Gram - 2,500-2,700,
Gram Super best bold - 3,700-4,000
for 100 kg.

* Wheat, rice and other commodities remained
steady in open market
in thin trading activity, according to sources.

Nagpur foodgrains APMC auction/open-market
prices in rupees for 100 kg

FOODGRAINS Available prices
Previous close
Gram Auction 2,150-2,830
2,120-2,800
Gram Pink Auction n.a. 2,100-
2,600
Tuar Auction n.a. 3,930-
4,950
Moong Auction n.a.
5,200-5,500
Udid Auction n.a. 4,300-
4,500
Masoor Auction n.a. 2,600-
2,800
Gram Super Best Bold 3,800-4,200
3,800-4,200
Gram Super Best n.a.
Gram Medium Best 3,550-3,700
3,550-3,700
Gram Dal Medium n.a. n.a.
Gram Mill Quality 3,400-3,450
3,400-3,450
Desi gram Raw 2,800-2,875
2,800-2,875
Gram Filter new 3,200-3,600
3,200-3,600
Gram Kabuli 8,400-9,700
8,400-9,700
Gram Pink 7,200-7,400 7,200-
7,400
Tuar Fataka Best 7,250-7,450
7,250-7,450
Tuar Fataka Medium 7,100-7,200
7,100-7,200
Tuar Dal Best Phod 6,600-6,800
6,600-6,800
Tuar Dal Medium phod 6,300-6,500
6,300-6,500
Tuar Gavarani 4,850-4,900
4,900-4,950
Tuar Karnataka 5,300-5,400
5,300-5,400
Tuar Black 8,200-8,500
8,200-8,500
Masoor dal best 6,700-6,800
6,700-6,800
Masoor dal medium 6,500-6,600
6,500-6,600
Masoor n.a. n.a.
Moong Mogar bold 9,000-9,800
9,200-9,800
Moong Mogar Medium best 8,200-8,600
8,500-8,800
Moong dal super best 7,800-8,200
7,800-8,200
Moong dal Chilka 7,500-7,700
7,700-7,900
Moong Mill quality n.a. n.a.
Moong Chamki best 7,500-8,800
7,500-8,800
Udid Mogar Super best (100 INR/KG)
8,200-8,600 8,200-8,600
Udid Mogar Medium (100 INR/KG) 7,100-
7,800 7,100-7,800
Udid Dal Black (100 INR/KG) 6,700-
7,000 6,700-7,100
Batri dal (100 INR/KG) 4,000-5,000
4,000-5,000
Lakhodi dal (100 INR/kg) 2,800-3,100
2,800-3,100
Watana Dal (100 INR/KG) 3,250-3,450
3,250-3,450
Watana White (100 INR/KG) 3,250-
3,350 3,250-3,350
Watana Green Best (100 INR/KG) 4,400-
5,200 4,400-5,200
Wheat 308 (100 INR/KG) 1,200-1,500
1,200-1,500
Wheat Mill quality(100 INR/KG) 1,700-
1,800 1,700-1,800
Wheat Filter (100 INR/KG) 1,300-1,500
1,300-1,500
Wheat Lokwan best (100 INR/KG) 2,100-
2,450 2,100-2,450
Wheat Lokwan medium (100 INR/KG)
1,850-2,000 1,850-2,000
Lokwan Hath Binar (100 INR/KG) n.a.
n.a.
MP Sharbati Best (100 INR/KG) 2,800-
3,200 2,800-3,200
MP Sharbati Medium (100 INR/KG) 1,950-
2,350 1,950-2,350
Wheat 147 (100 INR/KG) 1,200-1,300
1,200-1,300
Wheat Best (100 INR/KG) 1,500-1,800
1,500-1,800
Rice BPT (100 INR/KG) 3,200-
3,800 3,200-3,800
Rice Parmal (100 INR/KG) 1,800-2,000
1,800-2,000
Rice Swarna old (100 INR/KG) 2,350-
2,650 2,350-2,650
Rice HMT (100 INR/KG) 4,000-
4,400 4,000-4,400
Rice HMT Shriram (100 INR/KG) 5,200-
6,000 5,200-6,000
Rice Basmati best (100 INR/KG) 10,500-
13,500 10,500-13,500
Rice Basmati Medium (100 INR/KG)
7,300-10,000 7,300-10,000
Rice Chinnor (100 INR/KG) 5,200-5,800
5,200-5,800
Jowar Gavarani (100 INR/KG) 1,400-
1,600 1,400-1,600
Jowar CH-5 (100 INR/KG) 1,700-1,800
1,700-1,800

WEATHER (NAGPUR)
Maximum temp. 35.5 degree Celsius (95.9
degree Fahrenheit), minimum temp.
21.3 degree Celsius (70.3 degree Fahrenheit)
Humidity: Highest - 96 per cent, lowest - 53 per
cent.
Rainfall : nil
FORECAST: Mainly clear sky. Maximum and
Minimum temperature likely to be around 35
and 21 degree Celsius respectively.

Note: n.a.--not available

(For oils, transport costs are excluded from plant
delivery prices, but included in market prices.)



Basmati prices decline 25% in
Punjab
Tepid response from rice millers; several
farmers had gotten into Basmati
Komal Amit Gera | Chandigarh
September 29, 2014 Last Updated at 20:48
IST

The
prices
of Basma
ti
rice have
fallen
in Punjab
this year
by 20 to
25 per
cent as compared to those of kharif 2013 due
to a tepid response from rice millers at the
beginning of the season.Last year, major
basmati varieties such as Pusa 1509 and
Pusa 1121 were purchased at Rs 3500 to Rs
4,000 a quintal. The increase in demand and
price of basmati was triggered by the high
export demand for Indian basmati the
world.Driven by the lucrative price, farmers
in Punjab adopted diversification from non-
basmati into basmati, which is also
supported by the state government under the
diversification of agriculture plan.The
projected increase in the area under basmati
is 8 to 10 per cent. Because of the dwindling
water table in Punjab, farmers are
encouraged to diversify from non-basmati to
basmati, as it requires lesser irrigation. The
Punjab government also offers certain
concessions to Punjab-based millers for
lifting basmati paddy as this crop is not
included under the minimum support price
regime.This year though, millers are
skeptical of international demand and are
not lifting the crop at a rapid pace.A revision
of import duty on basmati by Iran proved a
dampener for basmati exporters and they are
stocking the crop in lesser volumes.

The expectation of a glut in the market due
to increased acreage had also slowed the
buying operations of the millers. The crop
would be arriving in full swing in mid-
October and that might result in further fall
in price."A below-average rainfall had
already added the cost of irrigation for
paddy and a lower remuneration would put
us in a precarious situation," said Balbir
Singh, a farmer from Sangrur.He said
millers had created a cartel and had deferred
buying as they knew the crop size was larger
than last year and farmers did not have
enough storage space. We cannot negotiate
for a higher price, he said.


PRICE SLIDE
Price have been fallen by 20-25 per cent
compared to last year
The major basmati varieties of Pusa 1509
and Pusa 1121 were purchased at Rs 3,500 a
quintal to Rs 4,000 a quintal last year
High export demand has contributed to the
higher basmati price
The Punjab government offers certain
concessions to the millers for lifting basmati
paddy as this crop is not included under
minimum support price regime


TABLE-Planting status for
major monsoon crops
Tue Sep 30, 2014 1:20pm IST
Sept 30 (Reuters) - India's area under rice
cultivation so
far has crossed last year's acreage and also
surpassed the
normal area under the main summer sown crop,
the farm ministry's
update showed on Tuesday.
The higher coverage was possible as the
monsoon revived in
the second half of the June-September rainy
season, overcoming
the weakest start in five years that initially raised
fears of a
widespread drought in 2014.
This year's monsoon also caused floods in
many parts of the
subcontinent.
The late surge in the monsoon helped cotton
acreage register
higher coverage than last year and over normal
levels, while
poor rains during the key planting month of July
reduced
coverage under oilseeds. The patchy monsoon
cut down pulses and
cereals coverage as well.
Interestingly, area under soybean, the main
summer oilseed
crop, registered higher than normal coverage
with late rains
improving prospects of better yields.
Cane area in India, the world's second top
sugar producer
after Brazil, surpassed the normal area but
remained lower than
a year ago when monsoon rains were bountiful.
An erratic monsoon this year failed to wipe
out the huge
deficit of the first half despite an impressive
improvement in
rainfall during the second half.
The late revival caused a delay in the retreat
of summer
rains from the grain bowl region of northwest
India, improving
sowing prospects for the main winter crops such
as wheat and
rapeseed.
India's annual monsoon season formally ends
on Sept. 30.
The table below shows the area sown with
major crops between
June 1 and Sept. 26, in million hectares.
Figures are provisional.
---------------------------------------
CROP Normal Area 2014 2013
---------------------------------------
* Rice 36.01 37.49 37.43
* Corn 7.50 7.84 8.22

* Pulses 10.60 10.10 10.81
-Tur 3.61 3.56 3.85
-Urd 2.33 2.50 2.39

* Oilseeds 17.84 17.76 19.32
-Soybean 10.44 11.02 12.22
-Groundnut 4.37 4.30 3.89

* Cane 4.84 4.87 5.03
* Cotton 11.10 12.65 11.44
---------------------------------------
Source: Farm Ministry
---------------------------------------

(Reporting by Ratnajyoti Dutta in NEW
DELHI; editing by Sunil
Nair)


TABLE-Initial output
estimates for main summer
crops
Tue Sep 30, 2014 3:45pm IST
Sept 30 (Reuters) - India's summer-sown grains
output is
estimated at 120.27 million tonnes for the
current crop year the
began in July compared with 129.24 million
tonnes a year
earlier, the farm ministry's initial forecast
showed.
The nearly 7 percent drop in output was
mainly due to the
patchy first half of this year's June-September
monsoon.
India's annual monsoon season formally ends
on Sept. 30.
A table on planting status for these crops,
please click

Table below gives estimates of major summer
crops in million
tonnes.
-----------------------------------------
CROP 2014/15 2013/14
-----------------------------------------
Rice 88.02 91.69
Corn 16.03 17.68

Pulses 5.20 6.02
-Tur 2.74 3.29
-Urad 1.15 1.07

Oilseed 19.66 22.41
-Soybean 11.82 11.99
Groundnut 5.02 7.81

Sugarcane 342.79 350.02
Cotton #34.62 36.59
-----------------------------------------
Source: Agriculture Ministry
# million bales (of 170 kg each)
* Provisional
-----------------------------------------

(Compiled by Ratnajyoti Dutta in New Delhi;
Editing by Sunil
Nair

PDMO to refinance rice debt

Agricultural bank closes three funds
Published: 30 Sep 2014 at 06.50
Newspaper section: Business
Writer: Wichit Chantanusornsiri

The Public Debt
Management Office
(PDMO) will be
required to refinance
150 billion baht of
debt from the rice
subsidy scheme of the
previous government in fiscal 2015, which
starts tomorrow. Debt of 180 billion baht of
the state-owned Bank for Agriculture and
Agricultural Cooperatives (BAAC) from the
subsidy scheme is due in the next fiscal
year.Luck: Bringing down rice scheme debt
The PDMO has already set aside 30 billion
baht for principal payment in the annual
budget, leaving 150 billion for refinancing,
president Luck Wajananawat said.He said
the PDMO had also set aside another 50
billion baht in fiscal 2015 for interest
payments on the debt from subsidy schemes
for agricultural products.Liabilities incurred
from the subsidy schemes for farm products
by previous governments amount to 780
billion baht, the lion's share stemming from
the rice subsidy.Of the total of 780 billion
baht, 580 billion resulted from the costly
rice-pledging scheme sponsored by the
Yingluck Shinawatra government and the
rest from preceding governments.The Pheu
Thai government's rice subsidy, which
offered a pledging price 40-50% above
market prices, cost 878 billion baht since it
was unveiled in the 2011-12 main crop, with
580 billion worth of debt left over.The rice-
pledging scheme suffered setbacks when it
failed to boost market prices.

Several million tonnes of milled rice have
been kept in thousands of warehouses in
accordance with the government's belief that
withholding a large supply from the market
would raise prices.Mr Luck said the Finance
Ministry would be able to bring down the
debt of the rice-pledging scheme to below
500 billion baht by next September to
comply with the Yingluck cabinet's
resolution, as it had set aside 30 billion baht
in the fiscal 2015 budget.Another 50 billion
baht will come from the Commerce
Ministry's sale of stockpiled grain.

Earlier, the state-backed farm bank
estimated that debt incurred from the rice-
pledging scheme alone would be paid off in
the next seven years, assuming that 70-80
billion baht would be set aside in the
following years' budgets for interest and
principal payments and the Commerce
Ministry could generate 50 billion baht from
rice sales each fiscal year.However, Deputy
Prime Minister MR Pridiyathorn Devakula
recently said he had instructed the Finance
Ministry to look for a solution to reschedule
paying the 500 billion baht for 30 years
through bond issues.In a related
development, he said the bank had closed its
three 14-billion-baht funds set up to help
unpaid farmers for their pledged grain after
Ms Yingluck, as head of the caretaker
government, had no authority to borrow at
that time.The funds have been used to pay
300,000 farmers.

The first fund was simply a donation
account, so those who transferred money to
this account will not receive any refund.The
second fund offered no interest, but
depositors will get back the principal when
the fund is closed, while the third fund gave
0.63% interest with the principal to be
repaid.The BAAC yesterday launched a new
11-month deposit product, which runs until
next Aug 31, with a 3% rate to those who
donated and deposited in the first and
second funds.The product is also exempt
from withholding tax for obtained
interest.The BAAC recently approved a loan
of 17 billion baht to farmers in the Northeast
and Upper North who have rice barns in
return for hoarding a combined 2.4 million
tonnes of rice for a certain period in order to
slow the release of grain to market and ease
pressure on market prices.


USA Rice Helps ATO Mexico
Kick-Off First Marketing
Roundtable

Laura Dogu
MEXICO CITY, MEXICO -- The USA Rice
Federation participated in the USDA's
Agricultural Trade Office (ATO) Mexico
Marketing Roundtable held here last week
where marketing and promotion ideas were
exchanged between U.S. agricultural
cooperators. Presiding over the event were
special guests, the Honorable Laura Dogu,
Charg d'affaires, U.S. Embassy, Mexico City;
newly arrived ATO Director Joe Lopez; and
Deputy ATO Julio Maldonado.

"We thank USA
Rice for their
participation,
presentation of
their program,
and spirit of
cooperation and
coordination,"
said Lopez.
"We look
forward to
attending their activities and, together,
promoting and increasing U.S. rice sales to
Mexico." USA Rice provided a general
overview of consumer and foodservice
promotional activities (see ("Building on
Successful 2013 Program, USA Rice Reaches
Out to Mexican Consumers," USA Rice Daily,
March 11, 2014 and "USA Rice Forms
Promotions Advisory Council in Mexico," July
24, 2014), the new American seal (see "Mexico
Market Under Attack - Part Two: Enhancing
Rice's Profile," USA Rice Daily, May 21, 2014),
restaurant and chef promotions (see "U.S.
Grown Rice Fuels 'Wednesday Paella'
Promotion in Top Export Market," USA Rice
Daily, June 12, 2014 and "USA Rice Writes the
Book on Rice for Cooking Schools in Mexico,"
August 23, 2014), in-store promotions with
Sam's Club and other popular grocery stores,
(see "In-store Demonstrations Drive Rice Sales
in Mexico," USA Rice Daily, February 10,
2014) and various trade shows throughout
Mexico (see "USA Rice at Mexico's Exphotel
Trade Show to Increase Demand," USA Rice
Daily, June 27, 2014). FAS staff was invited to
observe and participate in future activities.

Valued at $18 billion, Mexico is the second
largest export market for all U.S. agricultural
products, and still the top destination for U.S.
rice.

Contact: Marvin Lehrer (210) 663-0360


Application Deadline for
Rice Leadership Program
Nears
STUTTGART, AR --
The deadline for
submitting
applications for the
Rice Leadership
Development program
is October
4. Rice producers and
other industry-related
professionals are
encouraged to apply
for the next class, which will be announced in
December at the USA Rice Outlook Conference in
Little Rock, AR.

For more information on the program or
an application form, visit http://www.usarice.com.

Contact: Chuck Wilson (870) 673-7541


Louisiana Wraps Up National
Rice Month Celebrations

"And...they're off!"
JENNI
NGS
and
LAKE
CHAR
LES,
LA --
On
Saturd
ay,
September 20, nearly 200 runners gathered at
Founders Park in Jennings, LA to compete in the
24thAnnual Louisiana 5-K Rice Run. The
popular race is conducted annually during
National Rice Month (NRM) under the direction
of the Hathaway High School Future Farmers of
America and highlights the importance of rice in
a healthy diet and the rice industry's economic
contributions to the state and nation.

Trophies were awarded to the first place male
and female winners and twenty lucky finishers
received a microwaveable rice cooker. Rice
nutritional information and NRM promotional
items were also distributed by the Louisiana
Rice Promotion Board, a sponsor of the
event.Last Wednesday, the 17th Annual
Calcasieu-Cameron Rice Growers Association
(Cal/Cam RGA) and Port of Lake Charles
National Rice Month Celebration was held in
Lake Charles.


Cook-off contestants
Seventeen
students
participate
d in a
cooking
contest.
Winners
included Victoria Pinal of Sam Houston High
School, first place; Daniel Hammond of W.W.
Lewis Middle School, second place; Brittany
Easton of Starks High School, third place; and
Aubrey Sweeny of R.D. Molo Middle school,
heart-healthy winner.

Adam Habetz, president of the Cal/Cam RGA
thanked Farmers Rice Mill of Lake Charles for
providing electric rice cookers for each of the
contestants, and the Louisiana Rice Growers
Association and Hoppe Farms for each
providing one-pound bags of Louisiana-grown
rice for the competitors.

Contact: Randy Jemison (337) 738-7009


Paddy harvesting starts in
Punjab, Haryana; late rains
improve sentiment
By Madhvi Sally, ET Bureau | 30 Sep, 2014,
03.49PM IST
Rice plantings at 37.48 million hectares
were more than last seasons 37.42 million
hectares, but areas under coarse cereals,
oilseeds, pulses and sugarcane were less.


NEW DELHI: Newly harvested paddy has
started arriving in the markets of Punjab and
Haryana while late rains have helped boost
the area under the crop to more than last
year's levels, developments that bode well
for the supplies of the staple grain and food
inflation. Scanty rains in the first half of the
June-September monsoon season had
threatened to hurt this year's farm output,
which is critical to the overall economy in a
country where more than half the workforce
is employed in agriculture. But rains had
picked up in the second half, and though still
this season's average rainfall is 12% below
what is considered normal, water levels in
reservoirs are better than their 10-year
average.

Late rains are
likely to help
keep soil
moisture longer,
benefiting
winter crops
such as wheat.
According to
agriculture ministry data, total crop
plantings at 101.93 million hectares for the
week ended September 26 were still 2%
below last year's level. Rice plantings at
37.48 million hectares were more than last
season's 37.42 million hectares, but areas
under coarse cereals, oilseeds, pulses and
sugarcane were less. Early-sown basmati
and other rice varieties have started reaching
mandis in the two northern grain-bowl
states, ahead of the procurement season that
begins on October 1. Farmers have also
started harvesting other summer crops of
cotton, soyabean and pulses. Regional
basmati exporters have already entered the
market and are buying the 1509 basmati
variety at Rs 2,450 a tonnes, said Raj Sood,
a trader from the Khanna mandi in Punjab.

According to officials at Food Corporation
of India, the government's grain
procurement agency, it estimates to procure
30.05 million tonnes of rice this year. Of
this, it is expected to buy 8.2 million tonnes
from Punjab, 4.35 million tonnes from
Chhattisgarh and 4.1 million tonnes from
Uttar Pradesh. As of September 1, the
country had adequate stock of 21.7 million
tonnes of rice in its buffer and strategic
reserve. Exporters are, however, concerned
that with the discontinuation of a 3% interest
subvention scheme, they will not be able to
export the same quantity as they shipped last
time. Gurnam Arora, joint managing
director of Kohinoor Foods, said global
prices were weak and an incentive was
necessary for the industry.

Cotton prices could weaken as arrivals
begin across Gujarat, Maharashtra, Punjab,
Haryana and Rajasthan mandis. North India-
based millers and ginners are buying cotton
at Rs 33,000 per candy of 356 kg. India is
the world's second-largest producer, behind
China. Indian farmers have planted cotton
on 12.66 million hectares this year, an 11%
increase over last year. International prices
are less than local rates. "Multinational
merchants Louis Dreyfus, Glencore,
Reinherdt and Ecom are away from the
market, expecting prices to be at
international level of Rs 30,500-31,000 per
candy," said Rakesh Rathi, owner of trading
and ginning company KCT Associates at
Abohar, Punjab.

Traders said with China unlikely to buy
huge quantities, they have to look at
alternative markets. "Bangladesh, Pakistan,
Vietnam and Far East countries from
Taiwan to Indonesia will be the new markets
for India cotton," said Dhiren Sheth,
president of the Cotton Association of India.
Data from the India Meteorological
Department showed that two-thirds of the
country's 36 sub-divisions received normal
to excess rainfall this monsoon season.

The country's major 85 reservoirs were
filled to 79% of their total capacity of
155.05 billion cubic metres, down from 85%
last year, but better than the 10-year average
of 76%. Himachal Pradesh, Gujarat, Punjab,
Rajasthan, West Bengal, Tripura,
Uttarakhand, Madhya Pradesh, Andhra
Pradesh, Kerala and Tamil Nadu have less
water in the their reservoirs than last year,
the Central Water Commission said. The
rainfall deficit has been worst in Haryana
and west Uttar Pradesh at 56%, followed by
Punjab at 50%.


Rice output hits a record high
Sohel Parvez

Rice production edged up to a new high last
fiscal year due to an increase in yield in all
three crops seasons for favourable weather
and a more balanced use of
fertiliser.Production rose to 3.44 crore
tonnes in fiscal 2013-14, from 3.38 crore
tonnes a year ago, thanks to a record boro
output.Boro yield rose 1.6 percent year-on-
year to 1.90 crore tonnes in fiscal 2013-14,
according to a recent estimate by
Bangladesh Bureau of Statistics.Despite the
rise in output, imports started to show an
upward trend in fiscal 2014-15 that began in
July. Some 4,840 tonnes of rice were
imported during July to September 28,
according to data from the food ministry.

During July to September 18 last year, 990
tonnes of rice were imported."Maybe some
importers are bringing in rice from
neighbouring countries to reap price
benefits," said Abul Bashar Chowdhury,
chairman of Chittagong-based BSM
Group.This was another year of increased
rice yield despite falling cultivable land to
grow the staple.The country stands well
above its annual food grain consumption
requirement of less than three crore tonnes,
according to a study by Bangladesh Institute
of Development Studies.The research
organisation estimated that the daily per
capita food grain consumption was 509
grams, including rice at 462 grams.As a
result, retail prices of rice have remained
stable in the past couple of months.

One of the main reasons behind this is a
high level of global production of rice and
wheat.Food grain prices have been the
lowest in recent years worldwide,
Chowdhury said.Banking on higher
production and increased public stocks, the
government has decided to export 50,000
tonnes of rice to Sri Lanka under a special
arrangement.The government decision
comes at a time when damage to aman
seedlings due to recurrent floods is feared to
affect production.The Department of
Agricultural Extension (DAE) said most
farmers were able to replant the seedlings of
the second biggest crop on their affected
fields after the floods.But recent floods in
some districts have affected crops, mostly
aman paddy, on 1.13 lakh hectares of land,
said a senior official of the DAE, seeking
anonymity.

The DAE targeted to bring 52.50 lakh
hectares of crop land under aman
cultivation. So far, 55.05 lakh hectares have
come under transplantation, the official
said."Farmers replanted more than 90
percent of the seedlings in the fields
damaged by the floods. But the recurrence
of the floods is more depressing," he said.

The DAE aims to ensure production of 1.34
crore tonnes of rice from aman cultivation. It
also targets 24 lakh tonnes of the staple
during the aus season by ensuring
cultivation on 10.55 lakh hectares.The US
Department of Agriculture lowered its
prediction on Bangladesh's rice harvest last
month. It says Bangladesh may harvest 3.46
crore tonnes of rice in the current fiscal year,
down from its previous projection of 3.48
crore tonnes Of this, it is expected to buy 8.2
million tonnes from Punjab, 4.35 million
tonnes from Chhattisgarh and 4.1 million
tonnes from Uttar Pradesh

Punjab offers incentives to rice
millers from outside of state
Press Trust of India | Chandigarh
September 30, 2014 Last Updated at 20:05
IST

The Punjab government has agreed to give
incentives to rice millers from outside of
state by slashing local levies in an effort to
encourage buyers to buy basmati crop which
is staring at "glut" position in the wake of
high acreage. Punjab Chief Minister Parkash
Singh Badal today announced slashing
market fee and rural development fund by
one per cent each on basmati crop in order
to motivate buyers from outside of state for
purchase of basmati, said an official
spokesman. The Market Fee and Rural
Development Fee would be charged at one
per cent each against two per cent each
charged earlier from buyers outside Punjab,
said the spokesman.

At present, Punjab charges market fee and
RDF at two per cent each, besides
infrastructure cess of three per cent and
VAT of five per cent on
foodgrain. However, basmati exporters
could claim VAT refund and there will be
no infrastructure fee on basmati
purchase. "The incentives will be meant for
rice processors or millers of Haryana for
export purpose only," Punjab Agriculture
Minister Tota Singh said here. Singh said
Haryana requires paddy as they have surplus
milling capacity and these incentives will
encourage them to enter Punjab market for
the purpose of buying crop. This decision
comes after discussions were held with rice
exporters from Haryana who were
demanding incentives on par with Punjab in
order to buy basmati crop from there. Punjab
basmati growers have been complaining
about not getting remunerative rates this
season similar to what crop prices prevailed
last season.
Growers in Punjab had accused even
"unscrupulous" traders of lowering crop
prices by forming cartel. Basmati crop in
Punjab is fetching Rs 2,100 to Rs 2,400 a
quintal as against Rs 2,800 to Rs 3,000 a
quintal recorded at the time of arrival in
grain markets. Notably, in neighbouring
Haryana also, basmati prices are higher by
Rs 300-400 per quintal than prices ruling in
Punjab. The state government also
apprehended that market price of basmati
would be lower than the previous year, as a
result, the government should encourage
more buyers so as to ensure remunerative
prices to farmers, said the
spokesman. Problem arose for paddy
growers of Punjab as area under basmati
crop surged by 55 per cent to 8.62 lakh
hectares this year, creating a "glut like"
situation in the state.

With around 30 per cent of total paddy area
being under basmati, its output is expected
to reach 34 lakh tonne as against 22.65 lakh
tonnes recorded last season. The Punjab
government has also decided to continue
with the policy of giving incentives to state
rice millers on purchase of basmati
crop. The state government had last year
waived market fee (two per cent), RDF (two
per cent), infrastructure cess (three per cent)
on purchase of basmati in order to push crop
diversification in the state.


Punjab and Haryana markets
receive new paddy crops

By Madhvi Sally, ET Bureau | 1 Oct, 2014,
10.49AM IST

Of this, it is expected to buy 8.2 million tonnes
from Punjab, 4.35 million tonnes from
Chhattisgarh and 4.1 million tonnes from Uttar
Pradesh.
New Delhi: Newly harvested paddy has started
arriving in Punjab and Haryana markets while
late rains have helped boost the area under the
crop to more than last year's levels. This bodes
well for supplies of staple grain and food
inflation.Scanty rains in the first half of the
June-September monsoon season had threatened
to hurt this year's farm output, which is critical
to the overall economy in a country where more
than half the workforce is employed in
agriculture. But rains had picked up in the
second half, and though still this season's
average rainfall is 12% below what is considered
normal, water levels in reservoirs are better than
their 10-year average.

Late rains are likely to help keep soil moisture
longer, benefiting winter crops such as wheat.
According to agriculture ministry data, total crop
plantings at 101.93 million hectares for the week
ended September 26 were still 2% below last
year's level. Rice plantings at 37.48 million
hectares were more than last season's 37.42
million hectares, but areas under coarse cereals,
oilseeds, pulses and sugarcane were less.Early-
sown basmati and other rice varieties have
started reaching mandis in the two northern
grain-bowl states, ahead of the procurement
season that begins on October 1.Farmers have
also started harvesting other summer crops of
cotton, soyabean and pulses.

Regional basmati exporters have already
entered the market and are buying the Rs 1,509
basmati variety at Rs 2,450 a tonne, said Raj
Sood, a trader from the Khanna mandi in
Punjab.According to officials at Food
Corporation of India, the government's grain
procurement agency, it estimates to procure
30.05 million tonnes of rice this year. Of this, it
is expected to buy 8.2 million tonnes from
Punjab, 4.35 million tonnes from Chhattisgarh
and 4.1 million tonnes from Uttar Pradesh.As of
September 1, the country had adequate stock of
21.7 million tonnes of rice in its buffer and
strategic reserve. Exporters are, however,
concerned that with the discontinuation of a 3%
interest subvention scheme, they will not be able
to export the same quantity as they shipped last
time.Gurnam Arora, joint managing director of
Kohinoor Foods, said global prices were weak
and an incentive was necessary for the industry.

Cotton prices could weaken as arrivals begin
across Gujarat, Maharashtra, Punjab, Haryana
and Rajasthan mandis. North India-based millers
and ginners are buying cotton at Rs 33,000 per
candy of 356 kg. India is the world's
secondlargest producer, behind China.Indian
farmers planted cotton on 12.66 million hectares
this year, an 11% increase over last year.
International prices are less than local rates.
"Multinational merchants Louis Dreyfus,
Glencore, Reinherdt and Ecom are away from
the market, expecting prices to be at
international level of Rs 30,500-31,000 per
candy," said Rakesh Rathi, owner of trading and
ginning company KCT Associates at Abohar,
Punjab. Traders said with China unlikely to buy
huge quantities, they have to look at alternative
markets.

Odisha waives two per cent
CST on interstate trade of rice
Nirmalya Behera | Bhubaneswar
September 30, 2014 Last Updated at 20:35
IST

Paving way for sale of surplus rice, the state
government has waived two per cent Central
Sales Tax on interstate trade of this staple
food item."In exercise of the powers
conferred by sub section(5) of section 8 of
the Central Sales Tax Act, 1956 (74 of
1956) , the state government, having been
satisfied that it is necessary so to do in the
public interest, do here by direct that the tax
on sale of rice to a registered dealer in
course of interstate trade or commerce by a
dealer, having his place of business in the
state of Odisha, shall be exempted to the
conditions of production of declaration in
Form C prescribed under the Central Sales
Tax (registration and turnover ) rules, 1957
obtained from the purchasing dealer", read a
state finance department notification.

Rice millers say, the waiver of the levy will
boost the trade of surplus rice in a
transparent manner."Neighbouring states
like West Bengal, Chhattisgarh, Jharkhand
and Bihar have already allowed free trade of
rice.Odisha being a rice surplus state, now
trader can sale the surplus rice to the
registered dealers through fair means," said
Shyamlal Agarwal, President, All Odisha
Rice Miller Association.With this
exemption, the traders will be able to
compete with the rivals in other states, he
added.Traders peg the state's rice
consumption at 2.2 million tonne. In 2013-
14, the state government had procured a
little above 2.8 million tonne of rice.Due to
the prevalent tax structure, surplus produce
could not be moved out of the state,
compelling the state government to procure
more than its consumption capacity.
Inadequate storage capacity further
compounded the problems for the
government.The state government, in Kharif
2014, aims to procure 8.46 million tonne of
rice with a yield of 2,350 kg per hectare.