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Daily Global Rice E-Newsletter by Riceplus Magazine

Rice E-Newsletter
February , 2015
V o l u m e 5, Issue I

Indonesian government to control inflation optimally

Senin, 2 Maret 2015 16:57 WIB |
Jakarta (ANTARA News) - The Indonesian government will take various measures and efforts to
control inflation in 2015, in accordance with its target plan."We will do anything to control

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inflation," Coordinating Minister for Economic Affairs Sofyan Djalil said here on
Monday.According to Djalil, the government can control inflation because the price of rice is no
longer a problem.
The current stock of rice is sufficient to meet demand till the next harvest season in March and
April 2015.Djalil revealed that the State Logistics Agency (Bulog) will play a greater role
towards this end.Earlier, he feared that the rising price of rice in various regions could lead to a
sharp increase in inflation.To prevent this, the government has taken anticipatory measures
related to the procurement of commodities."As the price of rice can affect inflation significantly,
the government is determined to tackle the problem," he stated here on Tuesday.To curb the
rising price of rice, he noted, the government has distributed rice to the poor (raskin)."We asked
Bulog to conduct market operations," he affirmed.
Djalil acknowledged that the rising price of rice is a result of scarcity in its supply, although
Bulogs stock of 1.4 million tons of rice could be sufficient to meet demand for the next few
months.Therefore, the problem of delays in supply is expected to be resolved soon."We have
distributed as much as 300 thousand tons of rice to the poor. Bulog must ensure the supply," the
minister emphasized.
Furthermore, Djalil also pointed out that the government will take legal action against
perpetrators found stocking and reselling rice illegally.Although the price of rice has increased,
that of other food commodities has not. This raised suspicion that the surge in the price of rice
was caused by traders hoarding stocks of the commodity.Moreover, the Central Statistics Agency
(BPS) remarked that the rising price of staple foods such as rice, eggs, and other commodities
can increase inflation pressure in February 2015.
"The prices of rice and other commodities are still high. If we look at indicators, we will find that
the price of rice is still high. It (inflation) may increase in February," Deputy Head of
Distribution and Service Statistics of the BPS, Sasmito Hadi Wibowo, said here on Monday.
According to Wibowo, the harvest season will boost production and supply, which will, in turn,
lower the price of rice.In addition, Social Affairs Minister Khofifah Indar Parawansa noted that
the distribution of raskin can reduce rice prices by up to 60 percent."The timely and precise
distribution of raskin can reduce rice prices by 50 to 60 percent," the minister affirmed here on
Sunday.
Parawansa admitted that the governments raskin program had distributed only 45 percent of its
total target of national rice distribution due to late supply in some regions.The minister pointed
out that rice stock in all Bulogs warehouses are safe and adequate, and they also have the budget.
So there is no longer any reason for Bulog to not distribute raskin."The fluctuating prices of rice
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can be offset by the distribution of raskin," she stated.According to the minister, the budget
allocated for the raskin program was Rp18.8 trillion for 15.5 million targeted households, with
15 kilograms of rice per month for each household.

UU.A063/INE
http://www.antaranews.com/en/news/97949/indonesian-government-to-control-inflation-optimally

High-Temperature Tolerance Enhancement Successful On

Tomatoes And Rice
Kathleen Lees k.lees@scienceworldreport.com
First Posted: Mar 02, 2015 12:15 PM EST
High-Temperature Tolerance Enhancement Successful On Tomatoes And Rice (Photo :
Flickr/Andry Wright)
Researchers at Kobe University Graduate School of Agricultural Science
Functional Phytochemistry Laboratory in Japan have identified for the
first time that the (E)-2-hexenal, otherwise known as a plant-derived
chemical substance that can induce a plant's stress response from high
temperatures.Plants have high-temperature resistance that's switched off
during normal conditions. During the study, researchers hypothesized that
if certain chemical signals in the plants that switch the functions on could
be identified, then the plants' stress response to high temperatures could be
controlled artificially.
Previous research has shown that some plants' high-temperature resistance function works to
switch on when oxidative treatment is applied. Researchers believed that a chemical compound
that's generated through oxidation of fatty acids in plants by reactive oxygen triggers the switch.
Through their experiments, the researchers identified that the (E)-2-hexenal compoundacts as a
signal chemical.
Researchers examined the effects of the (E)-2-hexenal at cooperative farms and found their use
effective on cucumbers, rice and tomatoes."Acquired thermotolerance in plants in a nongenetically modified way. It will be easier for this method to find acceptance in Japan where
consumers are less accepting of genetically-modified crops," the study stated, according to a

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news release. "Since the (E)-2-hexenal is a plant-derived chemical substance, its use as a spray
over farm produce will face little resistance from consumers."

Payment continues to be a problem in the rice industry

MARCH 2, 2015 BY STAFF WRITER

Dear Editor,
Essequibo rice farmers staged yet another protest on the main public road, demanding payment for
the last paddy crop which was sold to rice millers. The payment areas most affected are the
Essequibo Islands, West Demerara and Regions 5 and 6. Harvesting of the present crop has
commenced in Region Two, with some 31,500 acres expected to be harvested. There will be much
difficulty in payment because of deliberate neglect by millers.Under the current system millers
procure paddy from farmers below the minimum support price. This system is leading to increased
stocks in the warehouses of the millers. The government needs to intervene from time to time and
ensure that farmers are paid on time. Government could also introduce online payments to make the
transactions more transparent, as farmers have to wait four months to get their dues.
The payments for the paddy are directly deposited in the farmers accounts.In some instances farmers
are selling their paddy to rice millers at a lower price to avoid the long wait. Paddy payment for
farmers in Guyana has witnessed a steady decline since the 90s. The sharp fall is due to problems
with the local and international marketing of our rice, as well as the quality of rice produced by some
millers, and it has serious implications for Guyanas economic development. Over the past 5 years,
however, there have been no signs of a revival in terms of prompt payment and rice quality.Today
rice occupies the first position among Guyanas agricultural crops with respect to foreign exchange.
First, labour costs are relatively high, and at the same time the expenses involved in purchasing
agricultural inputs are a heavy burden without payments being made on time.
Typically, farmers hire machinery from private sources, since not all of them own combine
harvesters and tractors with a harrow plough. Given the high costs of cultivation and reaping and the
modest yield levels, the price of paddy becomes an important determinant of profitability.The
minimum price for a bag of paddy was $1,500 last crop, and the maximum was $3,000 a drop of
$1,000 on each grade. However, even $4,000 a bag is not remunerative enough for a farmer who is
primarily dependent on rice farming. Given governments absence from effective participation in the
rice industry, rice farmers are left at the mercy of private dealers, mainly a group of modern rice
millers.

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Yours faithfully,
Mohamed Khan

Arkansas rice farmers, others get deadline from USDA

Posted: Mar 01, 2015 12:25 PM PSTUpdated: Mar 01, 2015 12:25 PM PST

LITTLE ROCK, Ark. (AP) - The U.S. Agriculture Secretary has

announced that Arkansas producers would get one more month to
update their farm information for new commodity safety-net
programs established in the 2014 farm bill.The February 27
deadline is now extended to March 31.Arkansas Rice Farmers
Chairman Dow Brantley says the extra month will help more
producers submit the most accurate information on their yield histories and base acreage.
Brantley also adds this will be the only deadline extension, and called on farmers who had been
waiting to submit their updates as soon as possible.The new programs are called Agricultural
Risk Coverage and Price Loss Coverage. Producers needing more information on the programs
can contact their local Farm Service Agency office or go to www.fsa.usda.gov/arc-plc .
(Copyright 2015 The Associated Press. All rights reserved. This material may not be published,
broadcast,
rewritten
or
redistributed.)

2/28/2015 4:44:49 PM (GMT -6:00)

http://www.katv.com/story/28232467/arkansas-rice-farmers-others-get-deadline-from-usda

S.Korea buys 44,000 T of rice for May

Mon Mar 2, 2015 1:49am GMT

SEOUL, March 2 (Reuters) - South Korea's Agro-Fisheries &

Food bought a total of 44,000 tonnes of non-glutinous brown rice
for May 31 arrival via tenders closed on Feb. 25, according to
the agency's website (www.at.or.kr).
Details of the purchase are as follows:
TONNES GRAIN TYPE SUPPLIER
ORIGIN PRICE
22,000 Medium Brown Seomok Trading Corp U.S. $856
22,000 Short Brown Daewoo Int'l Corp China $870

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(Reporting By Brian Kim; Editing by Sunil Nair)

http://af.reuters.com/article/commoditiesNews/idAFL4N0W418T20150302

Palay farmgate price continues to fall

By Czeriza Valencia (The Philippine Star) | Updated March 1, 2015 - 12:00am

MANILA, Philippines - Farmgate price of palay (unmilled rice)

continued to fall in the second and third week of February,
according to the Philippine Statistics Authority (PSA).From the
monitoring period of Feb. 11 to 17, the average farmgate price of
palay fell 0.47 percent to P17.87 per kilogram from the previous
week. Year-on-year, this was lower by 5.90 percent.This
translated to price reductions in the wholesale and retain prices of
well-milled rice.The average wholesale prices of well-milled rice
at P38.90 per kilogram was 0.32 percent below the previous weeks quotation. Year-on-year, this was
higher by 3.29 percent.The average retail price of well-milled rice fell to P41.97 per kilogram week-onweek. Year-on-year, however, this was higher by 4.54 percent.The average wholesale and retail prices of
regular-milled rice also declined.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1

Wholesale prices of regular milled rice fell 0.21 percent to P35.74 per kilogram on the average from the
previous week. From the previous year, however, this was higher by 2.24 percent.The average retail price
of regular milled rice fell 0.24 percent to P38.38 per kilogram. Year-on-year, this was higher by 4.14
percent.The National Food Authority (NFA) announced early this month that it would intensify palay
procurement this year as the farmgate prices of unmilled rice have begun falling to P14 to P16 per
kilogram in several areas.NFA administrator Renan Dalisay said massive procurements would be
conducted in Iloilo, Palawan, Sultan Kudarat, Antique and Isabela provinces.
http://www.philstar.com:8080/business/2015/03/01/1428687/palay-farmgate-price-continues-fall

NFA having difficulty buying palay

by Freddie C. Velez
March 1, 2015

Bocaue, Bulacan Now that the harvest season of palay is peaking in most rice-producing
provinces in Luzon, traders have affected the prices of the golden grain that the National Food
Authority (NFA) cannot sustain to procurements for its buffer stock.In a recent random check on
palay prices inside the Intercity Industrial Estate here, a major rice trading center of the country,
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the regular wholesale prices ranges halfway of P19 to P22 per kilo, reliant on its qualities and
varieties.With these aspects, sources said, the NFA cannot compete with the commercial grain
traders in acquiring palay stocks for their buffer stock requirements.Jun Cid, a palay classifier,
said the prices have already decrease to an average of R18 per kilo in the last week of January,
just as the palay harvest season is about to begin in major rice producing provinces of Northern
Luzon.
Last days of January this year, Simeon Sioson, president of the Federation of Central Luzon
Farmers Cooperative, revealed alleged rice smuggling in Mindanao that was perceived to have
pulled down the prices of locally-harvested palay.The smuggled rice finds its way to local
markets in Metro Manila and Central Luzon that has caused local palay prices to go down even if
the peak rice harvest season has already ended, Sioson said.Sioson also mentioned that palay
prices in the main crop harvest last November reached R25 per kilo and with the harvest season
about to begin has dipped to an average price of P18 per kilo in at the end of January.
http://www.mb.com.ph/nfa-having-difficulty-buying-palay/

Mid-South Farm & Gin Show Draws Record Crowd

Rice wins every time
MEMPHIS, TN -- The USA Rice Federation attended the 63rd annual Mid-South Farm & Gin
Show here over the weekend. Staff provided attendees with information about the U.S. rice
industry and activities conducted by USA Rice. Show officials reported record attendance
including rice producers from Arkansas, Louisiana, Mississippi, and Missouri who stopped by
the USA Rice booth."USA Rice's presence at the show gives staff an opportunity to meet with
rice producers as well as educate the general public about rice. We talk with more than 1,000
individuals and families each year and always enjoy making connections," said Randy Jemison,
director of field services in Louisiana.
In addition to exhibit booths and activities, the event includes agriculture updates and outlook
presentations. Carl Brothers, senior vice president of Riceland Foods, was on-hand to give a
market update for rice.The Mid-South Farm & Gin Show is one of the largest farm shows in the
region with attendees from all of the surrounding states in the Mid-South and Southeast. Four
hundred companies and organizations from 40 states and 15 countries took part in this year's
show. USA Rice received informational and product donations from Dainty Foods, Producers
Rice Mill, RiceTec, Riviana, and The Wright Group used as giveaways at its booth.
Contact: Amy Doane (703) 236-1454

Rice Leadership Visits Cuban Interest Section

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As customary in their final session in Washington DC, the newly graduated Rice Leadership
Class visited the Cuban Interest Section last week where they met with the Deputy Chief Juan
Lamigueiro. They were joined by USA Rice President & CEO Betsy Ward, USA Rice staffers
Marvin Lehrer and Chuck Wilson, and Terry Harris with Riceland Foods.From left: John
Compton, Wes Long, Rodd Dedman, Juan Lamigueiro, Marvin Lehrer, Betsy Ward, Joel
Stevens, Seth Fiack, Steven Schuler,
Mark Isbell, Chuck Wilson, and Terry Harris.

CME Group/Closing Rough Rice Futures

CME Group (Prelim): Closing Rough Rice Futures for March 2

Month

Price

Net Change

March 2015

$10.535

+ $0.065

May 2015

$10.795

+ $0.050

July 2015

$11.045

+ $0.060

September 2015

$11.140

+ $0.080

November 2015

$11.305

+ $0.050

January 2016

$11.435

+ $0.090

March 2016

$11.435

+ $0.090

Rice prices in Jakarta begin to go down

Senin, 2 Maret 2015 22:08 WIB

Jakarta (ANTARA News) - The prices of rice in Jakarta, especially at the Mayestik and
Kebayoran Lama markets, have started declining by an average Rp200 per kilogram, according
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to traders."The price of rice here started to go down since yesterday (Sunday, March 1)," Fauzi, a
trader at the Mayestik market, said here on Monday.Based on Antaras observation, the rice types
whose prices began to decline at the Mayestik market included the IR I type (64), which declined
by Rp200 per kilogram from Rp10,000 to Rp9,800 per kilogram; IR II (64) that fell from
Rp9,500 to Rp9,000 per kilogram; and IR III (64) that dropped from Rp9,000 to Rp8,800 per
kilogram.
"Although the price fall is small, I hope it would continue until it reaches the normal level and
consumers are not burdened anymore," Fauzi added.He noted that the price had possibly gone
down due to a decrease in the price of rice at the Cipinang wholesale rice market."Market
operations conducted by state-owned logistics board Bulog must have possibly played a role in
bringing down the price," he added.The same also happened at the Kebayoran Lama market in
South Jakarta where the prices of rice begun to go down since Sunday. The average decrease in
the price of rice here is some Rp200 per kilogram."The average decrease is not too big, it is only
Rp200 per kilogram," remarked Johan, another trader at the Kabayoran Lama market.The types
of rice that saw a fall in their prices included IR I type (64) whose price dropped from Rp9,000
to Rp9,600 per kilogram.
The price of IR II (64) rice dropped from Rp9,400 to Rp9,200 and of IR III (64) declined from
Rp9,000 to Rp8,800.President Jokowi earlier inspected the rice warehouses of Bulog in
Kelapang Gading, North Jakarta, where he launched the rice for the poor (Raskin) program and
some market operations.The country has 1.4 million tons of rice stock, which will be adequate
until March-April when harvest season starts, the President revealed on the occasion."You
should not think we are short of rice stocks. We will always have enough stocks and we will
release it no matter how much will be the requirement," he remarked on Wednesday (Feb
25). Jokowi also promised to conduct market operations and distribute some 300 thousand tons
of rice in the market.
http://www.antaranews.com/en/news/97951/rice-prices-in-jakarta-begin-to-go-down

Businesses begin stockpiling rice in Mekong Delta

MARCH 2, 2015 BY SAIGON-GPDAILY LEAVE A COMMENT

Businesses have begun purchasing one million tons of winter spring rice in the Mekong
Delta on March 1 when the Prime Ministers rice stockpiling decision took effect.
Hau Giang farmers reap winter spring rice (Photo: SGGP)

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The Government has assisted businesses with 100
percent of bank loan interest rate in four months
to buy rice under the program from March 1 until
April 15.Rice prices were in down trend near the
lunar New Year Festival but have a bit increased
recently owning to the program.Specifically, a
kilogram of fresh rice fetches VND4,200-4,600 a
kilogram, up VND200-300 over it before Tet.
Traders have boosted purchase in Can Tho, Hau Giang, Dong Thap, and Vinh Long for the last
few days.Farmer Ngo Van Kha from Vi Thanh District, Hau Giang province said that the new
prices are acceptable.The busiest purchase is along the 40 kilometer road linking Can Tho and Vi
Thanh, where nearly 100 combined harvesters have continuously operated in fields.Leaders from
Can Tho, Dong Thap, An Giang, Tien Giang, Long An and Can Tho say that this year the rice
stockpiling

program

has

been

launched

timely

as farmers are entering peak

harvest

season.Vietnam Food Association (VFA) has allocated rice volume for businesses to buy in each
province. The largest purchase will be 250,000 tons in An Giang, followed by Can Tho with
175,000 tons and Bac Lieu with 8,000 tons. The lowest volume is in Ca Mau with 2,400 tons.
2015 is the sixth year in a row VFA carries out the rice stockpiling program for the yearly largest
winter spring crop in the Mekong Delta.
Rice bags are transported to warehouse for stockpiling (Photo: SGGP)

The program is a Governments intervention measure

in the rice market to prevent a price drop during peak
harvest time and ensurefarmers profit, Deputy
Minister of Agriculture and Rural Development Vu
Van Tam said at a meeting on the programs
implementation in the delta yesterday.In addition to
the program, the Southern Food Corporation has won
a bid to export 300,000 tons of rice to the Philippines,
creating a better tendency in the rice market, he added.However, Deputy Chairman of VFA
Huynh The Nang said that tendency would not prolong because the Mekong Delta would have
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up to five million tons of commercial rice by the second quarter. The number includes iventory
rice from last year and newly harvested rice.
http://www.talkvietnam.com/2015/03/businesses-begin-stockpiling-rice-in-mekong-delta/

NFA secures additional rice imports from Thailand, Vietnam

by Madelaine B. Miraflor
February 28, 2015
The Philippines has secured rice imports from Thailand and Vietnam after the two countries
presented competitive offers in a state-to-state deal that commenced on Friday, which involves
the purchase of a total of 500,000 metric tons (MT) of well-milled white rice supply.National
Food Authority (NFA) is importing 500,000 MT of rice to cater to the mandatory buffer stocking
requirement for the lean season that starts in July.
This requirement would be purchased through government-to-government (G2G) procurement
with countries that have procurement agreements with the Philippines such as Thailand,
Vietnam, and Cambodia.For this bidding, which is the first planned rice importation for this year,
only Thailand and Vietnam decided to participate.For the 15-percent brokens well-milled long
grain white rice, Thailand offered a selling price of $441 per MT for a total supply of 100,000
MT against a required minimum supply offer of 250,000 MT. The total offer price stood at
USD44.1 million.With an offer price that stood at USD110.62 million, Vietnam offered $442.50
per MT for a total supply of 250,000 MT.
For this, the winning bidder is supposedly Thailand for its offer price, which is lower, but since it
could not supply the entire supply needed by the Philippine government, Vietnam later on agreed
to match Thailands price offer.In its matched offer, Vietnam agreed to supply the remaining
150,000 MT for a price of P$441 per MT, with a total offer price of USD66.1 million.For the 25percent brokens well-milled long grain white rice, Thailand proposed to supply 100,000 MT for
USD421 per MT against the total supply needed by the government, which is also at 250,000
MT. The total price stood at USD42.1 million.
Vietnam, on the other hand, originally offered to supply the entire 250,000 MT but since it
priced it at a higher cost, it just decided to match the offer of Thailand, agreeing to supply the
remaining 150,000 MT at a price of USD353 per MT instead. In total, Vietnam will earn
USD63.15 million from the contract.The term of references orders the delivery of all the wellmilled white rice in two tranches from March to April.
http://www.mb.com.ph/nfa-secures-additional-rice-imports-from-thailand-vietnam/

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Thailand's rice basket shrivels amid drought of long-term

policy
Achara Deboonme
achara_d@nationgroup.com
Twitter@Biz_TheNation March 3, 2015 1:00 am
Thailand's rice basket shrivels amid drought of long-term policy The tyranny of the hot season
has returned, as the temperature climbs towards a sizzling 40 degrees.Office workers are
complaining about the steamy commute to air-conditioned workplaces. They should spare a
thought for those who have to work under the blazing sun, including farmers, who are watching
their crops whither for lack of water - though they won't fetch much anyway at current
prices.Official statistics show that the country's major reservoirs have dropped to 57-60 per cent
capacity - near the levels of 2005 when one of Thailand's worst-ever droughts affected 71
provinces and caused nearly Bt8 billion in damage.
This year, the Agriculture and Agricultural Cooperatives Ministry estimates the drought will
affect 16.17 million rai of farmland in 58 provinces, including 12.61 million rai in the Northeast,
the region least covered by the national irrigation system.Over half of our working-age
population is in the agricultural sector, yet for decades the irrigation system has expanded at a
snail's pace.The latest figures show that in 2012, only 29.57 million rai, or 9.22 per cent of
Thailand's landmass, was irrigated.That represents only a slight increase on the 28.35 million rai
in 2009.That year, as the Royal Irrigation Department celebrated its 107th anniversary, its chief
unveiled a plan to expand the irrigated area by 6 million rai by 2020.
He explained that Thailand's reservoirs had a combined capacity of 52,741 million cubic metres only 70 per cent of the annual demand of 73,788 million m3. Without new investment, the
shortfall could hit 34,183 million m3 in 2019.The root of this longstanding problem lies in the
fact that policymakers treat irrigation as a political tool, channelling budgets to temporary
projects that only address short-term hurdles. No government has ever embarked on a grandscale project to tackle long-term problems. Irrigation plans were included in the Yingluck
government's Bt350 billion water-management plan, but it was the 2011 flood that sparked its
creation, not drought.The junta scrapped that plan and drew up a new strategy, expected to cost
about Bt900 billion over 10 years.
However, last month the Cabinet refused to green-light the comprehensive strategy, approving
only some of its projects for this fiscal year and keeping the budget to Bt50 billion. Prime
Minister Prayut Chan-o-cha admitted that the limited budget available meant only urgent projects
could be carried out this year, though the 10-year strategy remained in place.The Cabinet
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resolution received wide media coverage, but not so the attacks from the Engineering Institute of
Thailand (EIT), which is adamant that the strategy and the investment for this year do not meet
the national interest.The EIT's academic network criticised the strategy for ignoring public views
and failing to address the root problems. Warning that the plan carried more negative
consequences than the Yingluck government's version, it vowed not to rubber stamp the project.
Pramote Maiklad, former chief of the Royal Irrigation Department, remarked that "The NCPO's
version is not a real strategic plan, but rather the annual budget allocation plan."With the global
economy still fragile thanks to the slowdown in China and difficulties in the euro zone and
Japan, Thailand's exports are expected to remain sluggish. TMB Analytics anticipates a 1 per
cent growth rate this year, following two years of contraction. In this scenario, economists agree
that domestic demand should play a bigger role in driving the economy. Yet, they are also
concerned about lower crop prices, which will reduce farmers' income. Couple that with
Thailand's high household debt of 85 per cent of GDP, and there are doubts about how much
farmers and consumers in general can spend.
As part of its economic stimulation programme, the government plans cash handouts for
farmers.While that move is welcomed by Federation of Thai Industries chairman Supant
Mongkolsuthree, he said last week that what are truly needed are mid- to long-term solutions to
help farmers lift productivity and lower production costs.
I guess that he might not like the Commerce Ministry's Blue Flag project either. The project,
which sells products at ad-hoc markets at about 30 per cent below their market price, reaches
relatively few people but costs over Bt100 million annually. It will require a budget of Bt241
million this fiscal year.If farmers' income were to climb in a sustainable way, they would be able
to spend more and perhaps also save more. But as things stand, their finances are at the mercy of
capricious Mother Nature.
And no matter who is in power, their problems remain neglected.Thailand can no longer afford
to handle problems as they arise. We need to start thinking "out of the box" and forge long-term
strategies.Thai nationalists have enjoyed success in guarding our tiny petroleum reserves. They
should also push for a reform agenda to deal with drought. If the problems aren't addressed in a
sustainable and comprehensive way, millions of our farmers will likely need government support
when they get old and can't work in the fields. Then, the moaning from taxpayers will only get
louder.
http://www.nationmultimedia.com/opinion/Thailands-rice-basket-shrivels-amid-drought-of-lon30255170.html

Indian rice exports to plunge as Thailand offloads stocks

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A Thai farmer loads paddy onto a truck.

MUMBAI/BANGKOK, MARCH 2:
India's rice exports will struggle to compete with
cheaper cargoes from No.1 seller Thailand in 2015 as
Bangkok looks to offload grain from its huge state
stockpiles, industry officials and traders said. B.V.
Krishna Rao, managing director of leading Indian rice
shipper Pattabhi Agro Foods Pvt Ltd, said the
country's exports could plunge by a fifth this year to 8
million tonnes, with some other industry officials in
the country making similar warnings.
Lower exports will leave more rice in Indian hands, piling pressure on already-bulging storage
and raising the spectre of grain getting damaged in temporary silos.But competition among the
world's top two exporters will drag further on prices that have fallen 5 per cent since the start of
October. That's good news for African nations like Nigeria and Senegal that are typically major
buyers of Asian rice."The Thai government's efforts to sell rice from its own warehouses has
been putting pressure on global prices and limiting Indian exports," said Rao.Thailand will open
a tender to sell around 1 million tonnes of rice in March, as it tries to shift over 17 million tonnes
of rice built up under a controversial subsidy scheme. It aims to sell 10 million tonnes in 2015
and 7 million next year.Indian exporters can compete with private Thai traders, but not with the
government as it can cut prices to generate demand for old stock, said M. Adishankar, executive
director at Sri Lalitha, a major rice exporter in southern India.
In the latest tender, Thailand sold 5-percent broken rice from old stocks for $236 to $378 per
tonne, although the market price for new crops was around $415. India has recently offered the
same grade at around $400."The government's rice is old and has been stored for a long time so
its value depreciates accordingly ... there is always a price gap between new rice and old rice,"
said an official at the Thai Rice Exporters Association, who declined to be identified.
India, which lost the top rice exporter spot in 2014, could see its shipments of non-basmati or
common grade rice fall by nearly a quarter to 5 million tonnes in 2015, while exports of aromatic
basmati could drop over 14 percent to 3 million tonnes, Rao said.Basmati sales have also been
hit after top buyer Iran suspended imports late last year to support local farmers, although one
exporter expected shipments to restart in April.Rice inventories at India's state-run agencies had
jumped to around 25 million tonnes by Feb. 1, nearly double the targeted level, government data
shows.
(This article was published on March 2, 2015)

http://www.thehindubusinessline.com/industry-and-economy/agri-biz/indian-rice-exports-toplunge-as-thailand-offloads-stocks/article6951066.ece

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Rice cultivation banned on left bank of Indus

Sunday, March 01, 2015

Karachi

The Sindh government announced on Saturday that it was banning rice cultivation in the
command areas of the canals lying on the left bank of the Indus River to control water-logging
and salinity.This decision was made at a meeting presided over by Chief Minister Qaim Ali
Shah. It was attended by National Assembly opposition leader Khursheed Shah, MNA Syed
Asghar Shah, MPAs Sardar Imdad Ali Pitafi, Syed Murad Ali Shah and Syed Sarfaraz Shah,
Board of Revenue senior member Shahid Gulzar Shaikh, the irrigation secretary and the Sukkur,
Mirpurkhas and Shaheed Benazirabad commissioners and deputy commissioners.
The chief minister said the perennial canals at Guddu, Sukkur and Kotri barrages had a lengthy
command area of more than 150 to 350 kilometres and water shortage persisted at their tailend.These canals are meant for dry kharif crops. But rice cultivation in the command areas of
these canals had further aggravated the water shortage because paddy crop required a lot of
water, he added.He added that because of rice cultivation, the sub-soil water level had elevated
and caused water-logging and salinity to dangerous proportions, destroying the entire green belt
on the left bank of the Indus River.Khursheed Shah said there was a dire need for changing the
crop pattern. Otherwise, he added, the entire left bank strip of the province would turn into lakes
of saline water.MPA Sardar Ahmed Ali Pitafi said climatically Sindh had the distinction to
cultivate early kharif crops but the irrigation department released water in the canals and
distributaries very late.
Therefore, he added, growers were left with no choice but to grow rice. Rice cultivation is easy
and it does not require hard labour and extra care. That is why the growers prefer to cultivate
rice, he noted.MNA Syed Sarfraz Shah and MPAs Syed Murad Ali Shah and Nasir Shah, who
own farms on the left bank command areas, said water-logging had destroyed fruit orchards in
the area.The chief minister said the problems of the command areas of the perennial channels,
especially the Ghotki Feeder Canal, the Rohri Canal, the Nara Canal, the Khairpur Feeder East
and the Khairpur Feeder West, had to be addressed on an urgent basis.The Sindh government
has spent millions on the installation, maintenance and operation of tube-wells to control the
water table, he added.

We will pay more attention to rice value chain" Minister

Government would pay more attention to the development
of the rice value chain for mass production of rice to reduce
its imports, according to Mr. Fiifi Kwetey, Minister of Food
and Agriculture.He said the Ministry of Food and
Agriculture was fully behind initiatives that aimed at
developing the rice value chain and assured that all investors
and communities involved in developing rice fields,
especially the Nasia-Nabogo valley, would be given a fair

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deal.Mr Kwetey said this in a speech read on his behalf during the Ghana Commercial
Agriculture Project (GCAP) Investor Conference in Tamale.The Investor Conference organized
by the GCAP was meant to introduce to participants, the Nasia-Nabogo valley rain-fed rice
production and opportunities available to whet investor interest in the project.
The government of Ghana secured a $100 million credit from the World Bank and a grant of $45
million from the USAID to implement the GCAP projects mainly in the Accra Plains and the
Savannah Accelerated Development Authority (SADA) zones for crop production scheduled to
be completed over a five-year period.Mr Kwetey said the investor conference marked a
milestone in the work of GCAP, which had the opportunity to outdoor an innovative approach by
establishing an Agricultural Growth Pole (AGP) in the SADA zone.He said adoption of the
growth pole strategy had the potential for accelerating economic growth and support social
progress through efficient utilization of natural and agricultural resources in line with the
potentials of SADA.He said now that GCAP had selected one of the agricultural growth poles for
attention there was the need for government to support to ensure that it served as development
corridor that remained focused for developing the rice value chain.
Mr Alabi Bortey, the Project Co-ordinator of GCAP said, GCAP was currently seeking investors
to invest in commercial agriculture business in rice production on the 10,000 hectare arable land
at the Nasia-Nabogo valley in the Savelugu/Nanton Municipality of the Northern Region.
He said strong emphasis would be on the involvement of farmers from neighbouring
communities within the Nasia-Nabogo valley and assured investors who wish to cultivate rice
within the GCAP demarcated area in the Nasia-Nabogo valley area of support through a
matching grant scheme based on eligibility criteria.Mr Bortey said GCAP would support
investors with the construction of water retention structures to ensure availability of water
throughout the cropping season and that the investors would be expected to integrate smallholder
farmers into the inputs, outputs and farm equipment services on a continual basis for at least five
years.He announced that the project was also inviting contractors wishing to bid for the design
and construction of the irrigation infrastructure to be constructed and called on all to support the
project to succeed, saying, Let us together create an environment that would increase rice
production and productivity.
http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=348574

Rice exports to plunge as Thailand offloads grain from

its stockpiles
By Reuters | 2 Mar, 2015, 12.15PM IST

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"The Thai govt's efforts to sell rice from its own warehouses has been putting pressure on global
prices and limiting Indian exports," said Rao.
ET SPECIAL:
MUMBAI/BANGKOK: India's rice exports will struggle to compete with cheaper cargoes from
No.1 seller Thailand in 2015 as Bangkok looks to offload grain from its huge state stockpiles,
industry officials and traders said. B.V. Krishna Rao, managing director of leading Indian rice
shipper Pattabhi Agro Foods Pvt Ltd, said the country's exports could plunge by a fifth this year
to 8 million tonnes, with some other industry officials in the country making similar warnings.
Lower exports will leave more rice in Indian hands, piling pressure on already-bulging storage
and raising the spectre of grain getting damaged in temporary silos.

But competition among the world's top two exporters will drag further on prices that have fallen
5 percent since the start of October. That's good news for African nations like Nigeria and
Senegal that are typically major buyers of Asian rice. "The Thai government's efforts to sell rice
from its own warehouses has been putting pressure on global prices and limiting Indian exports,"
said Rao. Thailand will open a tender to sell around 1 million tonnes of rice in March, as it tries
to shift over 17 million tonnes of rice built up under a controversial subsidy scheme. It aims to
sell
10
million
tonnes
in
2015
and
7
million
next
year.
Indian exporters can compete with private Thai traders, but not with the government as it can cut
prices to generate demand for old stock, said M. Adishankar, executive director at Sri Lalitha, a
major rice exporter in southern India.
In the latest tender, Thailand sold 5-percent broken rice from old stocks for $236 to $378 per
tonne, although the market price for new crops was around $415. India has recently offered the
same grade at around $400. "The government's rice is old and has been stored for a long time so
its value depreciates accordingly ... there is always a price gap between new rice and old rice,"
said an official at the Thai Rice Exporters Association, who declined to be identified. India,
which lost the top rice exporter spot in 2014, could see its shipments of non-basmati or common
grade rice fall by nearly a quarter to 5 million tonnes in 2015, while exports of aromatic basmati
could drop over 14 percent to 3 million tonnes, Rao said. Basmati sales have also been hit after
top buyer Iran suspended imports late last year to support local farmers, although one exporter
expected shipments to restart in April. Rice inventories at India's state-run agencies had jumped
to around 25 million tonnes by Feb. 1, nearly double the targeted level, government data shows.

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