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Rice E-Newsletter
April 13 , 2015
V o l u m e 5, Issue I
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WASHINGTON, DC -- USA Rice President & CEO Betsy Ward joined other agricultural CEOs
from across the country at a summit last week to discuss how groups can work together to
manage common regulatory threats, including developing common strategies. Participants
agreed an inventory of the various issues and the coalitions addressing them would be a
beneficial first step. Ward said an interesting takeaway was the discussion of the extensive focus
group testing that different agricultural groups have done and how consistent the results were
with USA Rice's 2014 focus group work. "A common theme throughout was the need for.
(Reuters) - China's super-rice grower, Yuan Longping High-Tech Agriculture Co Ltd, blamed
abnormal weather and disease for large crop failures in the rice growing province of Anhui last
year.Rice blast fungus caused a reduction in yields or no harvests in many areas in the province,
said an executive with the company founded by Yuan Longping, an agricultural scientist who is
sometimes referred to by Chinese media as "the father of hybrid rice".
"Last year, because of the abnormal weather, the areas which normally have a low outbreak of
rice blast were unexpectedly hit with frequent outbreaks, causing big losses for farmers," said
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An ample supply due to higher domestic production and soaring imports have driven the prices
of rice below last year's level and put many millers and farmers into losses.Fine rice yesterday
traded at Tk 39-56 per kilogram at the capital's markets, down 2.11 percent year-on-year,
according to data from the state-run Trading Corporation of Bangladesh.The prices of medium
quality rice also declined. Coarse rice traded at Tk 32-37 each kilogram, down 1.43 percent from
a year ago.
In line with the decline in rice prices, paddy prices have also fallen, raising fears of losses among
farmers during the boro harvest, which has already begun in the haor areas in the
northeast.Freshly-harvested boro paddy is trading at Tk 500 each maund (40kg) in the northeast,
Bappi Saha, a rice miller in Netrokona district, said yesterday.Abdul Jalil, a rice trader at
Ashuganj, said the prices of fresh boro paddy stood at Tk 520 a maund, which is lower than the
prices at the beginning of harvest last year.There is no supply shortfall due to rising imports and
stockpiling. If the current market prices of paddy continue, farmers will incur losses, he
added.His warning comes after the government estimated that the farmers' production costs to
produce one kilogram of paddy would be Tk 20 during the current boro season, meaning growers
would break even if they get Tk 800 on average for each maund of paddy.
However, the prospects of getting such a price look dim in the backdrop of increasing supply,
said traders.Private imports of rice have so far exceeded last year's total imports, as traders find
the foreign produce cheaper.Between July 1 last year and April 7 this year, rice imports stood at
12.76 lakh tonnes against 3.74 lakh tonnes in the same period last fiscal year, according to food
ministry data.Traders and millers blamed it on the zero-duty benefits for rice import and higher
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Thailand is expected to be the world's largest rice exporter this year with shipments of 11.2
million tonnes, followed by 9.3 million tonnes from India and 6.5 million tonnes from
Vietnam.As such, the three Asian nations would account for a combined 65 per cent of the
world's rice trade, down slightly from 68 percent last year.FAO revised up India's rice exports
last year to 11.3 million tonnes from 8.2 million tonnes estimated earlier, making it the world's
largest exporter in 2014, followed by Thailand with 11 million tonnes and Vietnam with 6.5
million tonnes.
China, which was the world's biggest importer last year along with Nigeria, is forecast to raise its
import volumes by 5.2 percent to 3.2 million tonnes in 2015 due to higher demand in the
mainland, the report said. Nigeria's purchases abroad are forecast to dip 3.3 per cent to 2.9
million tonnes in 2015.Rice output in China, also the world's top producer, is forecast to edge up
0.2 percent to 208.5 million tonnes this year, FAO said. Last year China and Nigeria each bought
three million tonnes of rice from abroad.
Tags: Business, Nigeria, Featured, FAO
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Farmers like the ones that plant these flooded rice fields in southeast Missouri see Cuba as a new market
for their crop. (Photo by Kristofor Husted, Harvest Public Media)
Listen to this story:
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Right now, Cuba imports tons of rice from Asia. Since Cuba sits
smack dab in the middle of a busy U.S. trade route, American
farmers think they can supply higher quality rice at a cheaper
price than what Cubans are currently buying from Vietnam. And
cheap is the name of the game for an island with a big import
market.Theyre a small country but theyre having to import 60
percent of their food requirements to feed the population,
said Bill Messina, an agriculture economist at the University of
Florida.In 2014, Cuba imported more than $2 billion worth of food products much of which is bought in
bulk from countries in Asia or South America, Messina says. But Cuba doesnt have a ton of space to
store extra crops, which could be an incentive to buy American.
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Harry Lees smooths out a giant Rice Krispies treat as it tops 6,000 pounds Saturday afternoon at
the University of Wisconsin-Madison campus.
SOCIAL
Elisha Fieldstadt
Price
Net Change
May 2015
$10.105
- $0.155
July 2015
$10.355
- $0.160
September 2015
$10.605
- $0.150
November 2015
$10.825
- $0.165
January 2016
$11.055
- $0.165
March 2016
$11.105
- $0.165
May 2016
$11.105
- $0.165
(Reuters) - China's super-rice grower, Yuan Longping High-Tech Agriculture Co Ltd, blamed
abnormal weather and disease for large crop failures in the rice growing province of Anhui last
year.Rice blast fungus caused a reduction in yields or no harvests in many areas in the province,
said an executive with the company founded by Yuan Longping, an agricultural scientist who is
sometimes referred to by Chinese media as "the father of hybrid rice".
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"Last year, because of the abnormal weather, the areas which normally have a low outbreak of
rice blast were unexpectedly hit with frequent outbreaks, causing big losses for farmers," said
Peng Guangjian, the company's president.Chinese media recently reported that the super-rice
strain, "Liangyou 0293", produced by the company, caused widespread crop failure in six areas
in Anhui province last year."The disadvantage of the strain is that it is not resistant to rice blast,
although it has many advantages, including high yield...", Peng told a local television station in a
report posted on Saturday to the company's web site (www.lpht.com.cn).
Sri lanka and pakistan have decided to triple their trade to $1 billion and signed six business and
cooperation agreements. Sri Lankan President Maithripala Sirisena and Pakistans Prime
Minitser Nawaz Sharif, this week, decided to expand business cooperation and strengthen bonds
in several fields. Sharif used the occasion of Sirisenas visit to Pakistan to build one more link in
the region as he went ahead with his plan to build a big new economic zone stretching from the
UAE to China and Central Asian Republics up north and EU in northwest.The cooperation
includes Pakistan signing an agreement to provide Sri Lanka with civil nuclear technology.
This is the first agreement, Pakistan has ever signed with a country in the civil nuclear
technology field. The other agreements include: tripling trade, expansion of shipping services,
disaster management, education, defence cooperation and sports. The two sides decided to boost
their mutual trade from the current level of $350 million a year to $1 billion on a fast track
basis.Sri Lanka was the first country with which Pakistan concluded a Free Trade Agreement
(FTA) in 2002. But the present volume of trade does not reflect the true potential of Sri Lanka
and Pakistan, Siriena said. In view of this, we have agreed to reinvigorate our efforts to raise
the goal of achieving $1 billion trade target within the shortest possible time, Sirisena said.
Sri Lanka, this week, also welcomed Pakistani investment in a number of businesses and
industries. The President also said: We invite Pakistan International Airlines to recommence its
flights to Sri Lanka. Minister for Commerce Khurram Dastgir Khan offered Sri Lanka signing
of a Comprehensive Economic Partnership Agreement (CEPA) to replace FTA. Pakistan offered
the same CEPA to Turkey just a few days ago.The move from FTA to CEPA targets enhancing
trade and economic relations on a fast track basis that will benefit the two countries, Dastgir
said.
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The proponents of this argument even contended that the retail prices of such imports would be
even cheaper than rice imported through officially designated import channels like the
harbours.In Ghana, importers using official or designated import channels pay a total of 37
percent in duties and taxes while their Ivorian counterparts have to pay just 12.5 percent. By way
of defense for 'legitimate' cross-border importation of rice - if there was any - this was indeed a
highly tenable argument. Except that, over the years, this same element of tax differential has
been observed to be the key incentive for the lucrative business of rice smuggling, especially
across our western frontier. But what about cheaper rice? Can rice 'imported' across the land
borders be any cheaper than regular rice imports? Indeed, you would occasionally chance upon
some 'special' brands of rice selling on the markets at rock-bottom prices far less than the normal
retail prices across board.
Revelation I would have been taken in by these arguments if I had not chanced upon the findings
of an official pilot project undertaken by the Ministry of Trade and Industry, which proves
beyond doubt that it will be totally injudicious, if not impossible, for any importer to purchase
rice from the Ivory Coast, legitimately pay all the requisite import export duties and taxes for
Ivory Coast and Ghana, haul the consignment into the Ghana market and sell at a profit. So
fallacious and deceptive too is the claim that rice imported in this way could sell 'cheaper' than
that imported through the ports.
Seeking to test the veracity of arguments in support of rice
importation through the Ivory Coast border, the Ministry of
Trade and Industry, in its wisdom, conducted a trial
overland importation exercise just last November,
principally aimed at exploring the feasibility of legitimate
commercial importation of rice across land borders - of
course with all duties and taxes paid. The Ministry set up its
own team of overland 'rice importers', comprising a careful
selection of respectable individuals from the Consumer
Protection Agency, the Media and the Ministry of Trade
and Industry and assigned it the mandate of simulating the
importation of rice overland from the Ivorian capital Abidjan to Accra by paying up to the
Customs Division of the Ghana Revenue Authority all relevant duties and taxes at the Elubo
border post.
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Jiji PressJapan and the United States will resume working-level bilateral talks in Tokyo
on Wednesday as part of Trans-Pacific Partnership multilateral free trade
negotiations.During the talks, the two countries hope to reach draft agreements on the
contentious areas of auto trade and farm tariffs so that their ministers in charge of the
TPP can work out a political settlement before the April 28 summit in Washington
between Japanese Prime Minister Shinzo Abe and U.S. President Barack
Obama.Regarding agricultural issues, Japan wants to limit the proposed import quota for
U.S.-grown rice to around 50,000 tons, while the United States is asking for more.The
two sides are also apart over rules of origin for automobile parts subject to tariff cuts and
elimination.
Speech
AFP
April 13, 2015
YANGON: Dressed in Chelsea football shorts and a wide-brimmed hat, Than Tun toils away in
his paddy field on the outskirts of Yangon, sweat pouring down his sinewy arms.Gruelling work
that once helped Myanmar become the worlds largest rice exporter is today a Herculean and
often lonely job for farmers striving to return the impoverished nation to its former grain
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traders.
from local
in weak trading
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The Food Corporation of Indias (FCI) move to sell excess rice and wheat stock in the open
market through bulk purchases has received a lukewarm response from traders and private
purchasers.In the first weekly auction for rice under the Open Market Sale Scheme (OMSS) last
week, bids for only 150 tonne were received by FCI while the corporation aims to sell around 2
million tonne in the market during 2015-16.Sources told FE that FCIs attempt to sell rice at
around Rs 2,300 per quintal, apart from local taxes, is more than the prevailing market price.
We expect bids for more quantity from traders in the next few weeks, an official said, adding
there was absence of demand.Rice price has been set keeping in mind the minimum support
price (MSP) to rule out recycling of rice procured by the FCI and state agencies, an official
said. The grain is being to sold to private purchasers at around Rs 2,340 per quintal for grade A
quality.On April 1, FCI has rice stocks of 23.7 million tonne as per buffer stock norms, the
corporation should hold around 13.5 million tonne rice.
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advisory body on crop pricing has recommended a modest increase of Rs 50 per quintal in the
minimum support price for paddy farmers. The Commission for Agricultural Costs and Prices
(CACP) a statutory body that advises the government on the pricing policy for major farm
produces has also suggested a hike of Rs 100 per quintal in the support price of ragi to Rs 1,650
and Rs 30 per quintal for groundnut MSP to Rs 4,030. In its MSP proposals made to Agriculture
Ministry for various kharif (summer-sown) crops for 2015-16, the paddy MSP has been
suggested to be increased to Rs 1,410 a quintal. MSP is the rate at which government buys the
grain from farmers. Paddy is the main crop grown in the kharif (summer) season. Sowing of
kharif crops begins with the onset of South-West monsoon from June.
Rice production is pegged at 103.04 million tonnes in the ongoing 2014-15 season (July-June),
as against the record 106.65 million tonnes in the previous year. An increased MSP may enthuse
farmer for greater sowing of paddy. "CACP has recommended a Rs 50 a quintal increase in the
MSP of paddy for the 2015-16 kharif season. The Agriculture Ministry is in the process of
seeking views from the state governments and other departments concerned," a senior ministry
official told PTI. After taking the feedback, a final proposal will be moved for the Cabinet's
approval, the official added. For the 2014-15 kharif season, the previous government had also
raised the support price of paddy by Rs 50 per quintal to Rs 1,360 for common variety and to Rs
1,400 for 'A grade' variety paddy
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The report further analyzes quantitatively 2009-2014 global and Chinas total market of Rice
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In the end, the report makes some proposals for a new project of Rice protein powder Industry
and a new project of Rice protein powder Industry before evaluating its feasibility. Overall, the
report provides an in-depth insight of 2009-2014 global and China Rice protein powder Industry
covering all important parameters.
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