24th November 2014 Daily Global Rice E-Newsletter by Riceplus Magazine

Daily Global Rice E-Newsletter by Riceplus Magazine
www.ricepluss.com
Vol 4,Issue XI
Daily Global Rice E-Newsletter
24th November, 2014
Todays News Headlines

Protectionism vs rent-seeking
Hard for Bulog to buy rice from farmers
Raw rice drops by Rs1,000/40kg to Rs1,5001,600/40kg
Government jumps to cushion rice price fall
Exporters risk losing traditional rice markets
Finance Minister says rice price in line with
government's goal
Only zero-budget farming can double food
production, says Palekar
Rice prices dip to year's low
PhilRice celebrates innovations
Student Chefs Demonstrate Versatility of
Rice
CME Group/Closing Rough Rice Futures
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News Detail.
Protectionism vs rentseeking
often leads to rent-seeking and predatory

practices, which are now visible on a global
scale.
Mahmud Ahmed
Updated Nov 24, 2014 07:42am
In view of trade surpluses, the federal
government has levied a duty on wheat
and sugar imports to protect farmers and
sugar millers. Such temporary measures
may be called for in times of stress
originating from both domestic and
international surpluses, or from market
volatility.
However, these relief measures should
serve as a breather without slackening
national efforts to improve productivity and
quality and making goods and services
globally competitive price-wise. Quite often,
this does not happen, perpetuating
inefficiencies in the economy by the
permanent embedding of subsidies and
protectionist measures taken from time to
time.
It can be argued that selective and temporary
protectionism has picked up worldwide after
the global financial turmoil of 2007-8 and
the Great Recession that followed it. This
has provided more sovereign space for
national economic decision-making, as
countries are focused on tackling domestic
issues with shrinking global trade and
business opportunities. Many states also
tend to develop free trade within national
frontiers, with restrictive international trade
practices.
While such practices may appear to be a
need for the argument for infant industry
moving to a higher stage of productivity and
economic development, it cannot be denied
that protectionism breeds inefficiencies and
In case of the 30pc duty on wheat import, it

may be advocated that agricultural produce
is heavily subsidised by both Europe and the
US the worlds most developed economy
even though only around 3pc of the
American population is engaged in farming.
This protects western farmers from cheaper
imports from developing states and
emerging markets.
The temporary relief in adverse

circumstances may seem to be inescapable,
but it should not be converted into rentseeking
However, this is not a good example to
follow. Subsidies can only be justified in
very adverse circumstances, where there is
also a strong determination to promptly
remove the crutches when they are not
needed. There is a strong evidence that
subsides linger on and often get entrenched
in the system.
The import duty on sugar may not be as
justifiable as that for wheat, because the
sugar industry has failed to develop in the
direction where sugar could be a byproduct
rather the core product of millers.
Sugar, like textiles, is a traditional industry
that tends to thrive in ways that may often
said to be questionable, such as by not
making prompt payments to cane growers.
Its clout with the government comes under
criticism from growers, particularly when
cane
crushing
is
delayed,
which
delayssowing and impacts the output of
other major crops.

The countrys agriculture suffers from low
productivity. That is the core issue. It is also
true that the unabated flow of resources
from rural to urban areas denies farmers the
earnings, savings and investment needed to
modernise agriculture. As soon as the
support price for wheat goes up, the
suppliers of farm inputs increase the prices
of their products which significantly denies
the farmers the full benefits of the increase
in support price.
The 20pc import duty on wheat will no
doubt help farmers and so would exports of
sugar (plus 30pc import duty on sugar
imports). Such measures, repeated over
time, have not helped improve farm or
millers productivity, which is among the
lowest in the world.Latest reports show that
the Economic Coordination Committee of
the Cabinet has endorsed Rs32bn in cash
assistance for growers to compensate them
for the crash in prices of basmati rice. This
one-off relief may help check any trend
among farmers to reduce their area of
cultivation in the next basmati season, as
normally happens when the price of a crop
drops sharply. Rice is an important export
earner.
The
temporary relie
in
adverse
circumstances may seem to be inescapable,
but it should not be converted into rentseeking. In these times, no economy can
progress with crony capitalism, which has to
be rooted out lock, stock and barrel to build
a globally competitive national economy.It
is time to primarily focus on the domestic
market, with the top priority on food
processing and exports; a sector in which the
country has immense national advantage and
an area that has been long neglected owing
to erroneous policies.
The current global economic situation has
provided more space for sovereign
economic
decision-making,
and
the
opportunity should be seized to build a selfreliant, sustainable and inclusive economy.

Capitalism needs to be further democratised
in an environment of surging selfdetermination between and within nations,
and growing pluralism.
Published in Dawn, Economic & Business,
November 24th, 2014
Hard for Bulog to buy rice

from farmers
Senin, 24 November 2014 15:16 WIB | 465 Views
Palu, C Sulawesi (ANTARA News) The Central Sulawesi branch of State

Logistics Agency (Bulog) finds it more
difficult to buy rice from local farmers,
because the price continues to edge up
following the fuel price hikes.Local
Bulog spokesman Maruf stated here on
Monday that despite the ongoing grand
harvest, Bulog is still unable to buy rice
from the farmers.
"It is very difficult to get the rice at
standard price set by the government, but
we will continue to make every effort to
buy it from rice mill centers in every
district and city in the province," he
said.Maruf noted that the price set by the
government is Rp6,600 per kg, but Bulog
has to buy it from the farmers at Rp7,500
per kg as the impact of the increase in
subsidized fuel oil prices.
Consequently, he said the target of Bulog
to procure 47 thousand tons of rice this
year would not probably be met, because
to date Bulog has just absorbed only 19

thousand tons, or 40 percent of the
target.(*)
Home / Business / Raw rice drops by Rs1,000/40kg
to Rs1,500-1,600/40kg
Raw rice drops by

Rs1,000/40kg to Rs1,5001,600/40kg
Reported by: `Customs Today Report November 22, 2014
KARACHI: Rice exporters have warned

Pakistan that it could lose its traditional rice
markets if the government buys the
commodity from farmers to guarantee them
high prices.The Rice Exporters Association
of Pakistan (REAP) has also asked the
government to avoid buying rice from
farmers, as it may destabilise the private
sector.The association said the government
should provide direct subsidy to farmers in
order to support them.
The governments involvement in such
business activity (procurement) will be
harmful to the private sector, which has
invested billions of rupees to build an
infrastructure and human resources,
Rafique Suleman, chairman of REAP, said
in a statement.In case of the governments
involvement in rice business, we will lose
huge foreign exchange, as well as the
credibility, which the rice exporters have
earned after long hard working.The price
issue highlighted following reports of a
pick-up in paddy harvest that has weakened
its prices to at least 40 percent this season.
The price of paddy raw rice has dropped
by Rs1, 000/40 kilogram to around Rs1,
500-1,600/ 40 kilogram against the last

years price of Rs2, 500-2,600/40 kg.
Suleman demanded the government to give
due consideration to the grievances of the
rice industry and give free hand to the
private sector for playing their positive role,
boosting the economy, which is badly
affected due to a number of reasons.He said
the international market is depressed and all
the rice exporting countries are facing tough
competition and prices are on the decline.
This is the market phenomena and due to
the demand supply aspect, we see such trend
in times and have to cope with it, Suleman
added.Growers, who lack the storage
facility, have no other option, but to sell it,
but buyers notably the mill-owners and
middlemen are deliberately delaying the
buying to pressurise the growers sell the
crop at throwaway rates.
Farmers have asked the government to
immediately announce subsidy to them
through providing subsidised fertilisers,
seeds and diesel for the next crop. They also
demanded the government to fix a minimum
export price at the previous year average
export rate of $1,153/ton. This will help
avert such price crisis at the growers
end.The government should also not
intervene through the Trading Corporation
of Pakistan and Pakistan Agricultural
Storage and Supplies Corporation.
Suleman recalled PASSCO, in the year
2008, procured 200,000 tons of rice at a
premium price and even after six years they
could not disposed of those stocks and
ultimately government had to face losses of
up to Rs24 billion.The RECP chairman
also quoted the example of Thailand, where
government procured the rice with higher
prices, but the move damaged 17 million
tonnes of rice in the absence of proper
storage and warehouse facility and finally.

The Thai government suffered a loss of $30
billion. Suleman said.He advised the
government to support farmers, but this
should be done through a proper
mechanism.The
government
should
compensate farmers in the shape of free
seeds, free pesticides, free water, free
fertiliser, free electricity and other facilities.
As farmers are not equipped with the latest
machinery and due to the mishandling,
every year we have to see crop loss, further
we could not get the right quality of rice,
Suleman added.
Government jumps to
cushion rice price fall
Published on Saturday, 22 November
2014 17:58
To prevent rice prices from plummeting
due to limitations on trade with China,
the Myanmar Rice Federation (MRF) will
consider buying three million bushels of
rice from the Ayeyarwady Region,
according to General Secretary Ye Min
Aung.
Were now talking with Myanmar Oriental
Bank to buttress the rice price. Theres a rice
surplus of three million bushels in the
Ayeyarwady Region and 1.5 million bushels
in the Bago Region. Someone must purchase
them all to prevent the price from falling,
said Ye Min Aung.Rice prices are likely to
continue to fall unless Chinese buyers
resume their trade and, meanwhile, the MRF
is trying to agree official rice exports for
December.
Im sure there is demand in China, said

Aung Than Oo, the deputy chairperson of
MRF.Officials from Chinas Administration
of Quality Supervision, Inspection and
Quarantine, and Agriculture Ministry visited
in September and signed the memorandum
of understanding with Myanmars Ministry
of Agriculture and Irrigation to secure an
official rice trade.An agreement for rice
exports for January and February next year
has already been reached with official
exports starting next month.Currently, the
government is planning to purchase unsold
rice and the military will buy stocks in
December while the Myanmar Agribusiness
Public Corporation (Mapco) is also
considering buying up stocks.Ye Min Aung
said: We find it difficult to buy reserved
rice and store it in warehouses.
I dont want to encourage the purchase of
reserved rice. I want the millers and
merchants to buy more as that is more
beneficial in the long term but they need
financial support to do so. They also have
the responsibility to pay back that support.
So well buy it. The Mapco also plans to buy
approximately 300,000 bushels of rice.Rice
millers and merchants are in discussions to
acquire three million bushels of rice from
the Ayeyarwady Region.
Exporters risk losing

traditional rice markets
Salman Siddique
Saturday, November 22, 2014
From Print Edition

KARACHI: Rice exporters on Friday
warned Pakistan could lose its traditional
rice markets if the government buys the
commodity from farmers to guarantee
them high prices.
The Rice Exporters Association of Pakistan

(REAP) has also asked the government to
avoid buying rice from farmers, as it may
destabilise
the
private
sector.The
association, however, said the government
should provide direct subsidy to farmers in
order to support them.The governments
involvement in such business activity
(procurement) will be harmful to the private
sector, which has invested billions of rupees
to build an infrastructure and human
resources, Rafique Suleman, chairman of
REAP, said in a statement.In case of the
governments involvement in rice business,
we will lose huge foreign exchange, as well
as the credibility, which the rice exporters
have earned after long hard working.
Suleman demanded the government to give
due consideration to the grievances of the
rice industry and give free hand to the
private sector for playing their positive role,
boosting the economy, which is badly
affected due to a number of reasons.He said
the international market is depressed and all
the rice exporting countries are facing tough
competition and prices are on the decline.
This is the market phenomena and due to
the demand supply aspect, we see such trend
in times and have to cope with it, Suleman
added.The price issue highlighted following
reports of a pick-up in paddy harvest that
has weakened its prices to at least 40 percent
this season.
The price of paddy raw rice has dropped

by Rs1,000/40 kilogram to around Rs1,5001,600/ 40 kilogram against the last years
price of Rs2,500-2,600/40 kg.Growers, who
lack the storage facility, have no other
option, but to sell it, but buyers notably
the mill-owners and middlemen are
deliberately delaying the buying to
pressurise the growers sell the crop at
throwaway rates.Farmers have asked the
government to immediately announce
subsidy to them through providing
subsidised fertilisers, seeds and diesel for
the next crop. They also demanded the
government to fix a minimum export price
at the previous year average export rate of
$1,153/ton.
This will help avert such price crisis at the
growers end.The government should also
not intervene through the Trading
Corporation of Pakistan and Pakistan
Agricultural
Storage
and
Supplies
Corporation.Suleman recalled PASSCO, in
the year 2008, procured 200,000 tons of rice
at a premium price and even after six years
they could not disposed of those stocks and
ultimately government had to face losses of
up to Rs24 billion.The RECP chairman
also quoted the example of Thailand, where
government procured the rice with higher
prices, but the move damaged 17 million
tonnes of rice in the absence of proper
storage and warehouse facility and finally.
The Thai government suffered a loss of $30
billion. Suleman said.He advised the
government to support farmers, but this
should be done through a proper
mechanism.The
government
should

compensate farmers in the shape of free
seeds, free pesticides, free water, free
fertiliser, free electricity and other facilities.
As farmers are not equipped with the latest
machinery and due to the mishandling,
every year we have to see crop loss, further
we could not get the right quality of rice,
Suleman added.
Finance Minister says rice

price in line with government's
goal Date : 24 2557
BANGKOK, 24 November 2014 (NNT)Finance Minister M.R. Pridiyathorn
Devagula says the current price of rice is in
line with the goal set by the government.
Following calls from rice farmers to have
the government raise the subsidy price, the
Finance Minister said the ongoing 8,000
baht per ton is a suitable rate. The
government also has other programs that
allow rice silo owners to take out loans from
commercial banks at an annual interest rate
of three percent, which the government
would shoulder. e said he did not think the
Commerce Ministry would release rice from
its stocks at this time.
He added that the government is currently
developing another farmer assistance
program, which will be ready next month, to
help them supplement their incomes through
other types of crop growing. The Finance
Minister further added that his Ministry has
been trying to get large organizations
involved in the loan scheme for low income
families. The interest rate would be around
3% per month, or 36% per year. M.R.
Pridiyathorn is scheduled to visit China on

November 27th to join Joint Trade and
Investment Committee conference, where he
is determined to encourage Chinese
investors to build rubber factories in
Thailand.
Only zero-budget farming can

double food production, says
Palekar
M_A_SRIRAM;THE
HINDUFarmer
Krishnappa displaying arecanut cultivated
with zero-budget farming. PHOTO: M.A.
SRIRAM
Advocate of zero-budget spiritual farming
Subhash Palekar has claimed that farmers
suicide in the country was observed among
those practicing the chemical-farming
methods.Making a plea for encouraging
chemical-free farming, Mr. Palekar said
there were nearly 4 million farmers
practicing zero-budget farming in the
country who were prospering. Mr. Palekar,
who interacted with media persons here on
Saturday, said there was not a single
example of farmers practicing zero-budget
farming committing suicide, due to higher
yield and low cost input.
Zero-budget agriculture entails no external
chemical inputs like fertilizers or
insecticides.While
chemical
farming
methods yield about 12 quintals of basmati
rice per acre, under the zero-budget farming
method, yield was observed to be as high as
18 to 24 quintals, according to Mr. Palekar.
Similarly, about 6 quintals of wheat per acre
was the normal yield while it was 18
quintals under zero-budget farming.The
countrys food output cannot be doubled
through chemically-intensive agriculture
methods or even conventional organic

agriculture. Only zero-budget farming was
could meet the countrys food requirements.
Despite the obvious advantages of
alternative methods, not many farmers were
switching over to it due to government
policies which link all credit, marketing, and
insurance facilities to chemical-based
agricultural practices, said Mr. Palekar.
More popular
He noted that the alternative method of
farming was more popular in Karnataka,
than in Maharashtra, Uttar Pradesh or
Bihar.He came down heavily on the organic
farming policy of the State government on
the grounds that it was more expensive than
chemical-based agriculture. In Mysore
region, there were nearly 400 to 500 farmers
who had switched over to zero-budget
agriculture and Karnataka Rajya Raitha
Sangha leader Badagalpura Nagendra said
the organisation was working to create
awareness among farmers about its benefits.
Rice prices dip to year's

low
Published: 24 Nov 2014 at 18.06
Local rice prices have hit the year's low at
28,900 baht a tonne for 100% premium Hom
Mali variety this month. The prices dropped
by around 15% year-on-year, according to
commerce ministry data.Export prices also
slipped by 18% to US$863 for Grade B
Hom Mali, compared to $1,053 in
November last year.Vichien Phuanglamjiak,
vice-president of the Thai Rice Farmers
Association, said the group would ask the
prime minister to help shore up paddy
prices."Paddy prices for the 2014/15 crop
year are now 50% lower than the pledging
price of the previous government.
Hom Mali paddy is sold at 9,000 to 12,000 a

tonne from 16,000 while sticky paddy slid to
7,000-8,000 from 13,000 baht," he said.Pol
Lt Chareon Laothammatas, president of the
Thai Rice Exporters Association, said his
group had urged the commerce minister to
ask some 200 rice exporters to build their
stocks now, a move that could mop up
100,000 tonnes of the glut and costs 2.7
billion baht.The 10 largest exporters have
also been asked to buy 300,000 tonnes of
Hom Mali rice and expand their stocks,
costing 8 billion baht.
PhilRice celebrates innovations

November 24, 2014
QUEZON CITY, Nov. 24 -- The Philippine
Rice Research Institute (PhilRice) renewed
its commitment to the Filipinos by inspiring
innovations and rural transformation during
its recent 29th anniversary.Dr. Eufemio T.
Rasco Jr, PhilRice executive director in a
statement, said that the Institute`s advances
in research and development show the rice
workers` efforts in helping the country
provide enough rice and foster progress in
rural areas.In 2013, PhilRice released 10
new early-maturing varieties for saline,
irrigated, and rainfed lowland areas. NSIC
Rc3442SR, an aromatic special that is
moderately resistant to green leaf hopper,
was also released.
We have achieved sustained progress in rice
production by providing Filipino farmers
with new high-yielding rice varieties. [Last
year was] also remarkable with the National
Year of Rice campaign. [During this
campaign], we led many Filipinos in
sending a unified message that each of us
can help attain rice sufficiency and this year,

we [upheld] that message by motivating
everyone to be responsible rice consumers,
Rasco said.The 29-year-old agency spurred
innovations such as the development of
nutri-rice milk, Metarhizium anisopliae in
powder form, and hydrous bioethanol fuel
injector for spark-ignition engines.NutriRice milk is a healthy drink made from
germinated brown rice containing Gamma
Amino Butyric Acid, which improves brain
and cardiovascular functions and can slow
down the effects of ageing.
On the other hand, Metarhizium anisopliae
is a fungal microbial agent that controls rice
black bug a pest that can reduce yield up
to 80 percent and cause complete crop loss
due to bug burn.[Other than our
researches], we also launched an ambitious
rural transformation campaign aiming to
reduce poverty through our Gusto namin
milyonaryo
kayo
advocacy,
Rasco
said.Under the "Gusto namin milyonaryo
kayo campaign", diversified farming and
agri-business ventures will be promoted
through nucleus estates across the country
starting from 10 PhilRice stations. Nucleus
estates will be put up to give farmers access
to support services including training, input,
custom
services,
modern
support
technologies, product development and
packaging, and marketing.
In preparing farmers for the ASEAN
integration,
PhilRice
launched
the
Palayabangan: The 10-5 challenge, a
national competition, which aims to find out
technologies that will produce rice at the
least cost without sacrificing yield.
Competition results show that farmers can
yield 10.54 t/ha for P4.94/k. Average input
cost is at P11/k.Aurelio M. Umali, Nueva

Ecija governor, lauded the Institutes
contributions in the country`s rice
granary.[While working with] PhilRice for
the past years, I have witnessed, with
considerable pride, how your tremendous
and highly successful efforts in the field of
agricultural research and development
[propelled] rural progress.
Truly, you are at the forefront of agricultural
innovation. Your work to boost agricultural
productivity is integral in our efforts to
secure the welfare of our farmers and
enhance Nueva Ecija`s reputation as the
Rice Granary of the Philippines, he
said.Meanwhile, Department of Agriculture
Sec. Proceso J. Alcala said that PhilRice was
efficient and productive in addressing the
challenges in the agriculture sector. Alcala
said that PhilRice helped the country
increased its local rice supply. In 2013, the
Philippines produced 18.44 million metric
tons of rice, making it the fastest growing
rice-producing country in Asia.
PhilRice, created through Executive Order
1061 signed on November 5, 1985, also
honored more than 100 of its research and
development workers.Honourees were led 2
international awardees; 7, national; and 2,
regional. Recipients of 3 international best
poster awards; 19, national; 7, best paper
international awards; and 12, national were
also
recognized.The
institution
also
recognized 36 loyalty awardees and
welcomed 3 PhDs and 9 master`s
graduates.(PhilRice)

Student Chefs Demonstrate
Versatility of Rice
MEXICO -- Last month, the USA Rice
Federation conducted three Student Chef
Competitions in Puerto Vallarta and Nuevo
Vallarta. Competitors presented a variety of
avant-garde rice dishes and demonstrated
first-hand that rice is the ideal ingredient for
restaurant-quality dishes. Directors at the
various culinary institutions were impressed
with the competition and, seeing the great
benefit for the professional development of
their students, announced they would be
conducting another rice cooking competition
on their own in December.
Additionally, they plan to hold a contest
with all the universities in the region that
have culinary programs to increase
awareness of the versatility of rice.Puerto
Vallarta and Nuevo Vallarta are premier
tourist destinations and have some of
Mexico's most luxurious resorts. The cities
host renowned international gourmet
festivals with award winning chefs from
around the world. "There is a high demand
for gourmet cuisine in Puerto Vallarta and
Nuevo Vallarta," said Sarah Moran, USA
Rice director of international promotions.
"Our goal is to encourage the hotel and
restaurant industry in the region to use more
rice on their menus as a way to provide
patrons with elegant gourmet meals while

increasing profits."
Contact: Deborah Willenborg (703) 236-1444
CME Group/Closing Rough Rice

Futures
CME Group (Preliminary): Closing Rough Rice
Futures for November 24
Month
Price
Net Change
January 2015
$12.445
- $0.150
March 2015
$12.720
-$0.135
May 2015
$12.960
- $0.135
July 2015
$13.165
- $0.130
September 2015
$12.320
- $0.130
November 2015
$12.220
- $0.130
January 2016
$12.220
- $0.130

24th November 2014 Daily Global Rice E-Newsletter by Riceplus Magazine

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Daily Global Rice E-Newsletter by Riceplus Magazine

Daily Global Rice E-Newsletter