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

24th April , 2014
TOP Contents - Tailored for YOU Latest News Headlines

US scientists develop butter from rice bran oil SA Rice Concludes Farm Bill Briefings in Texas Downed Rice Questionnaire Deadline Extended CME Group/Closing Rough Rice Futures Rice Millers Threaten To Down Tools Hotter nights may cause rice yields to fall Gov't to further assist with Haiti rice production Rice prices increase Pakistan to open trade talks with Iran USDA GAIN: Philippines Grain and Feed Annual 2014 Why Cant Vietnam Grow Better Rice? Prices of rice dropped by 0.30 baht PM urges NACC to inspect rice stock to determine whether rice was really missing India may cede top rice exporter spot under Southeast Asian price onslaught WB summer rice crop likely to be higher by 25% to 7.5 mn tonne Haryana bans paddy sowing before May 15 Agri Min proposes Rs 50/qtl MSP hike in paddy, cotton & tur Pusa 1509 to steam up Basmati acreage El Nino possibility: Experts say no pressing panic button yet Nagpur Foodgrain Prices - APMC & Open Market-April 25
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News Detail US scientists develop butter from rice bran oil

CHENNAI, APRIL 24:
A process developed by scientists in the US to makea butter-like product from rice bran oil could come in handy for the Indian edible oil industry.The extract has been derived by scientists of the Agricultural Research Service of the US Department of Agriculture. The product, somewhat resembling peanut butter, can be a partial replacement for margarine, butter of even shortening, says a release from the service. Quoting Erica L Bakota, chemist of the research service, the statement says that the extracts texture and composition are unique.During preliminary experiments at the office of the research body, Bakota and her colleagues used the extract instead of butter for granola (a breakfast item resembling muesli) and white bread.Feedback from those who sampled the product showed that there was no change in the taste or texture of granola or break. Why rice bran product? An advantage with the rice bran product is that it is free of trans fatty acids, which increase the risk of heart attacks. The product also has a longer shelf life, unlike butter.The extract consists of unrefined rice bran oil and its natural wax, which is used in confectionary items. It also contains vitamin E, and low levels of bad or LDL (low density lipoprotein) cholesterol.Another feature of the product is that it is produced by using low temperatures.Bakota, along with her team, is trying to get a patent for the procedure while looking for collaborators interested in finding new uses for it. Indian potential India has a tremendous potential to produce rice bran oil and other by-products with paddy output topping 150 million tonnes.Currently, production of rice bran oil in the country is nine lakh tonnes against a potential of over 15 lakh tonnes.New uses such as butter are likely to encourage more productive use of rice bran oil in the country. (This article was published on April 24, 2014)
SA Rice Concludes Farm Bill Briefings in Texas

WINNIE, TEXAS -- USA Rice Federation staff wrapped up a series of farm bill education meetings with sessions here and in El Campo. More than 120 producers, landowners, crop insurance agents and lenders
participated in El Campo, and 65 attended the meetings in Winnie, bringing the total number of rice industry members briefed on the Farm Bill by USA Rice staff to more than 1,200 over the past two months. Briefings were also held in Arkansas, Louisiana, and Missouri. In addition to the briefings, USA Rice staff visited with member companies in Texas, including RiceTec, Inc., Colorado County Rice Mill, Rice Belt Warehouse, Riviana, Beaumont Rice Mill, and Douget's Rice Mill."The rice industry in Texas is obviously facing tough times, but we were encouraged by the determination shown by everyone at the meetings," said Betsy Ward, USA Rice's President & CEO. "We received a lot of good questions about the bill's implications for the state, and we thank everyone for the warm welcome." Contact: Lauren Echols (703) 236-1440
Downed Rice Questionnaire Deadline Extended

ARLINGTON, VIRGINIA - There is still time for rice producers to complete a brief but important, one page questionnaire from Agrilogic, the firm that assisted the USA Rice Federation in the development of the Downed Rice Endorsement (DRE) for crop insurance on rice. "We are asking all producers to complete the survey regardless of whether or not DRE was purchased in 2013," said Reece Langley, USA Rice's vice president of government affairs. "Grower feedback will be useful in continuing to assess the effectiveness of the product and possible improvements. "USA Rice sent all growers a copy of the survey at the end of March, but Langley says that if anyone needs another copy, they should contact USA Rice. He also asked growers to be sure to include their county and state on the form and to return it either by fax (979-690-2121) or email to Clif Parks by April 29. Contact: Reece Langley (703) 236-1471
Weekly Rice Sales, Exports Reported

WASHINGTON, DC -- Net rice sales of 70,200 MT for 2013/2014 resulted as increases for Venezuela (30,000 MT), unknown destinations (30,000 MT), South Korea (6,200 MT), Canada (4,200 MT), and Mexico (3,900 MT), were partially offset by decreases for Japan (5,800 MT) and Turkey (2,000 MT), according to today's Sales Export Highlights report. Exports of 68,600 MT were reported to Japan (26,700 MT), Turkey (13,500 MT), Mexico (8,400 MT), Honduras (6,700 MT), and Colombia (3,400 MT). This summary is based on reports from exporters from the period April 11-17.
CME Group/Closing Rough Rice Futures

CME Group (Preliminary): Closing Rough Rice Futures for April 24
Month
Price
Net Change
May 2014 July 2014 September 2014 November 2014 January 2015 March 2015 May 2015
$15.405 $15.455 $14.410 $14.500 $14.695 $14.870 $14.870
+ $0.165 + $0.155 + $0.025 + $0.050 + $0.055 + $0.055 + $0.055
Rice Millers Threaten To Down Tools

Last Modified: 04/24/2014 09:02:35 ABAKALIKI- Rice millers at Abakaliki Rice Mill Company have threatened to stop work if the state government persists with its threat to forcefully relocate them.The Chairman of the Mill, Chief Joseph Ununu, made this known in an interview with newsmen in Abakaliki.He was reacting to the governors recent statement that the environmental status of the mill made the rice unhygienic.This relocation issue is distracting us; we will be forced to down tools to see whether the government will be pleased.We will mill and preserve enough rice that will sustain our families and gather at our office daily without doing any work.According to him, there has not been any reported case of ill health caused by the consumption of the rice.Environmental experts continually assess our surroundings and have always certified us fit for operation.Elechi buys our rice always; he used our rice for campaigns during his first and second tenure.
The rice used by local government chairmen and traditional rulers to pay him homage are all from the Abakaliki Rice Mill.He noted that millers would readily relocate to any site, if facilities that would enable them to operate optimally were provided.Our machines do not operate under the sun or in the rain; so we need facilities where we will instal the machines and preserve our produce.The new rice mills constructed by the government are not yet functional and do not have the necessary facilities that will make us relocate from our present site, he said.
Hotter nights may cause rice yields to fall

GMB Akash/Panos[MANILA] Nights are getting hotter and scientists are sweating over the possibility that rice yields may fall as a result.Decreasing rice harvests mean higher prices. That would be a scary scenario in Asia where rice is considered not only a basic food staple but also a political commodity. Shortages of the commodity in 20072008 angered consumers across the region and caused some governments to wobble.A 35-year climate trending by the International Rice Research Institute (IRRI) under its Long-Term Continuous Cropping Experiment shows a clear trend that night temperatures are increasing while day temperatures are less consistent.The average minimum daily night temperature during the period of rice growth in the dry season (January to April) has increased about one degree Celsius in the last 35 years, says Roland Buresh, a scientist who manages the worlds longest-running rice research project at IRRI. The night temperature has now increased to a critical threshold of 23 degrees Celsius, above which there can be a penalty of reduced yield, Buresh tells SciDev.Net in an interview.Grace Centeno, associate scientist at IRRIs Climate Unit adds: Average night temperature over 23 degrees Celsius can lead to yield loss due to the increased need of the rice plant to expend its energy to maintain its biological health. Centeno participated in an earlier study of weather data at IRRIs rice farm from 1979 to 2003, which found that during the dry cropping season (January to April), grain yield declined by 10 per cent for a one-degree Celsius increase of night temperature above 23 degrees Celsius in the growing season.That study which showed that mean night temperature increased by 1.13 degrees Celsius in the 25-year period provided direct evidence of decreased rice yields from increased nighttime temperature associated with global warming.Centeno notes the study was published in 2004, but additional data from 2004 onwards continue to support the negative effect of higher night temperature on crop yield. A 10 per cent reduction in yield is huge. That is, a harvest of five tonnes per hectare would decrease by half a tonne a drop that Buresh calls a major and significant concern in rice production.Definitely, global warming is upon us, William Padolina, president of the Philippines National Academy of Science and
Technology, tellsSciDev.Net.A one per cent increase in temperature means a six per cent decline in yield, he explains. Why? Because grains are filled only during evenings. Thats the way of nature.This means we should breed varieties that are tolerant to high temperatures and drought, and thats the goal not just for rice but for all crops, Padolina says.Link to Centeno study This article has been produced by SciDev.Net's South-East Asia & Pacific desk.
Gov't to further assist with Haiti rice production

CNA April 23, 2014, 12:08 am TWN TAIPEI -- Taiwan and Haiti signed an agreement yesterday that will see Taiwan provide further assistance in increasing rice production in the Caribbean country to address food security issues.The agreement was signed by Taiwan's Foreign Minister David Lin and Haitian counterpart Duly Brutus, one of several top officials from Haiti who are visiting Taiwan as part of a delegation led by President Michel Joseph Martelly.After the signing of the agreement, both countries formally launched a 2014-2018 program, which includes Taiwanese technical assistance to set up a national rice research center, Lin said during the signing ceremony at the ministry's headquarters in Taipei. He expressed happiness over the signing of the agreement, which he said will help address the food security issues in Haiti and also deepen the relationship between the two countries.The program is expected to improve rice production to 2,000 tons per year, which the ministry estimates will benefit around 51,000 families in the major rice-growing center of Vallee d'Artibonite.Lin also represented President Ma Ying-jeou to bestow the Order of Brilliant Star with Grand Cordon on Brutus to recognize his efforts in bilateral ties over the years.Brutus said he was honored to receive the award, and he expressed hope that the two countries will continue to deepen cooperation.He also decorated Lin with a medal recognizing his efforts to advance ties with Haiti.Agriculture has been an important part of the cooperation between Taiwan and Haiti. The foreign ministry noted that the new program is part of continued efforts to increase rice production by improving the quality of rice seeds.Earlier in the day, President Ma met with his Haitian counterpart, where the two leaders signed a joint communique aimed at promoting bilateral ties. Ma is scheduled to host a state dinner later in the day.The Haitian delegation is set to wrap up their four-day visit Thursday. The visit follows a trip to Haiti by Ma last August. Ma is the first Taiwanese president to make a state visit to the Caribbean nation in their 58 years of bilateral relations.It has been 12 years since a Haitian president visited Taiwan, according to the foreign ministry. The last was Jean-Bertrand Aristide in 2002, when he paid a visit to
Taiwan's then President Chen Shui-bian.Haiti is one of Taiwan's 22 diplomatic allies. The two countries established diplomatic ties in 1956.
Rice prices increase

RICE PRICES went up during the week of April 9-15, according to data released by the Bureau of Agricultural Statistics on its Web site this week. Farmgate prices of palay stood at P20.20 per kilogram (kg), increasing 23.47% year on year but moving a mere 0.75% from the preceding week.Wholesale prices of well-milled rice averaged at P38.87/kg, 0.18% more than the week before and 18.83% more expensive than in the same week of 2012.The average retail price was P41.53/kg, 0.34% more than the preceding week and 17.88% more expensive year on year.Regular milled rice, on the average, was priced P36.19/kg in the wholesale market and P38.25/kg in retail. Wholesale prices registered markups of 0.03% week on week and 21.81% year on year. Retail prices were 0.13% more expensive last week and 19.76% higher last year.The National Food Authority noted earlier this month that price movements are affected by the summer seasons higher quality of harvest and also by the volume of rice harvest produced by local farmers. -- Alden M. Monzon A worker carries a sack of rice at the National Food Authority warehouse in Quezon City in this 2010 file photo. -- AFP
Pakistan to open trade talks with Iran

Ali Syed
Friday, April 25, 2014 - IslamabadPakistan has initiated process to open trade talks with Iran asking for elimination of non tariff barriers (NTBs) and relaxation in tariff regime to exploit the maximum potential of trade between the two countries, a senior official told Pakistan Observer.The trade is currently going on between the two countries under preferential trade agreement (PTA) effective from 2006. Iran is also found in changing the tariffs on Pakistani products on seasonal basis owing to which Pakistans exports get affected. The average tariff in Iran is also on higher side which stands at 38% and twice of the PTA tariffs and when the orange season in Iran starts, Tehran imposes 100 percent tariff on Pakistani oranges.Pakistan wants to resolve all these issues with Iran by opening talks on trade, the official said.However, the official said that since the imposition of the US and EU sanctions against Iran because of its nuclear ambitions, Pakistan is facing a lot of hiccups in the way of trade which include the payment issues on either side in the wake of non-availability of
any banking channel between the two states on account of sanctions. This is the main reaso n which is why existing limited trade between the two countries is underway on barter basis. Mentioning about the non-tariff barriers in Iran, the top official said that after Zahidan, Pakistan exporters are bound to pay one dollar after three kilometers distance and Tehran also needs to rationalize the extraordinary duties on Pakistani products. Pakistan now wants to open new crossing points in boarding areas with Balochistan to facilitate and expedite the trade with Iran. So much so, authorities in Pakistan also desire to establish trading facilities at new crossing points.To a question the official said the authorities concerned in Pakistan are pondering to find out the ways and means for payment mechanism so that the trade could between the two countries expedite and to this effect authorities in Islamabad are in contact with Iranian General TradingAuthority. The trade volume with Iran is on the decline which had peaked to US$1.32 billion in 2008-2009 but subsequently decreased to US$1.16 billion in 2009-2010 and further to US $734.94 million 2010-11.Pakistan major items of exports of Iran include Rice US$75.11 million), meat and Meat preparations (US$11.80 million) Agricultural products (US$6.96 million excluding Rice and Fruit, Non value added Textiles (US$1.80).Major items of import included petroleum products; however Pakistans imports from Iran have decreased from US$653.06 million in 2009 to US$36.61 million in 2011. Other products include Organic Chemical US$75.60 million, Plastics (US$ 65.37 million Iron Ores and Concentrates (US$38.17 million), Articles of Iran and Steel (US$ 32.29 million).Pakistan in 2006 granted tariff concessions to Iran on 338 tariff lines, while Iran has granted tariff concessions on 309 lines.
USDA GAIN: Philippines Grain and Feed Annual 2014

The Philippine grain market in 2013-15 is turning out to be a period of extraordinary dynamism. In wheat, massive imports of Turkish flour combined with a steep fall in feed wheat imports is expected to see total wheat imports decline some 12% to 3.2 million tons in July 2013-June 2014 Marketing Year (MY13/14). However, imports are forecast to recover to 3.7 million tons in MY14/15 as feed wheat inventories recover. Post estimates corn production will reach a record 7.7 million tons in MY13/14 and 7.8 million tons in MY 14/15 due to expanded planting of biotech seed varieties and the Philippine governments (GPH) investment in postharvest infrastructure. The full implementation of the Association of South East Asian Nations Trade in Goods Agreement (ASEAN FTA or ATIGA), which encourages the domestic hog and poultry industries to pursue export opportunities, will likely push corn imports up to 400,000 tons in MY14/15 from 300,000 tons in MY13/14. While the industry reports large stocks could support modest exports in MY 13/14, traders report the government has not yet granted any export licenses.
USDA GAIN Report - Oilseeds, Cotton, Sugar, Grain and Feed Despite successive record rice production in recent years, the widely publicized goal of self-sufficiency has remained elusive. While some have criticized the government for this shortcoming, others have pointed out the strong demand should be celebrated as a reflection of the Philippines being one of Asias fastest growing economies. Of greater concern are charges that the governments intentionally suppressed official imports (roughly 600,000 tons in 2013) led to a rapid depletion of stocks that sent consumer prices soaring 40-50% during the year. The rapid run-up in prices (due in part to successive natural disasters) significantly increased unofficial imports the trade places between 300,000 tons 1 million tons. The surge in prices and smuggling led the government to announce a major increase in 2014 official imports to roughly 1.4 million tons. With the amount of smuggled rice expected to remain constant, total Philippine rice imports in 2014 are forecast to reach 2 million tons, one of the highest in the world. Post expects imports to remain at roughly the 2 million ton level in 2015, especially in light of increased Thai access to the Philippine market from the ASEAN FTA.
Commodities: Wheat Corn Rice, Milled Production: According to the DA Bureau of Agricultural Statistics (BAS), the value of local farm output in 2013 expanded 1.1%, down from 2.9% in 2012 and below its 3-5% target range for the year. Overall crop production accounted for 51% of overall farm output, and grew marginally (0.09%) from the previous years level. Rice had the largest share of total farm output in 2013 accounting for 18%, followed by hog production (13% share), chicken (11%), and corn production (6% share).
The livestock and poultry subsectors combined accounted for 31% of Philippine agricultural output in 2013, growing 1.75% and 4.2%, respectively, from the previous years level. Fisheries expanded 1.2% in 2013, and accounted for roughly 18% of farm output during the year, according to the BAS report. Wheat There is no commercial wheat and small grain (barley, oats, rye) production in the Philippines. Corn
Corn output in 2013 reached 7.38 million tons, slightly lower than the 7.41 million tons output in 2012, according to BAS. Similarly, area harvested in 2013 declined by 0.4% from 2.59 million hectares to 2.56 million hectares in 2012. Yields, however, improved slightly from 2.86 tons/hectare in 2012 to 2.88 tons/hectare in 2013. Major corn producing areas in 2013 included the Cagayan Valley, Northern Mindanao, and Southern Mindanao. Over four million tons or roughly 55% of the 2013 output was realized in the 2nd semester. For the January-June 2014 period, BAS projects corn output to increase 10% to 3.65 million tons from the production level during the same period in 2013. BAS attributes the increase in the first six months of 2014 to a wider area harvested, as well as better yields. According to BAS, area harvested during the period is likely to increase due to more use of infallow areas, early planting, shifting from other uses to corn cultivation, increased use of hybrids and better yielding seeds. On a July-June market year basis, corn output and area harvested in MY13/14 were raised based on the BAS forecast for the first half of 2014 and its production estimates for the July-December 2013 period. Despite a series of typhoons that passed through the country in 2013, yields are likely to improve to 2.95 tons/hectare in MY13/14 from 2.84 tons/hectare yield level in MY12/13. In 2013, the average ex-farm price of yellow corn was P11.63 ($0.26) per kilo, lower than the 2012 and 2011 average farm prices of P12.43 ($0.28) and P11.94 ($0.27) per kilo, respectively. Average ex-farm price of white corn was P13.82 ($0.49) per kilo in 2013, three percent higher than the P13.35 ($0.30) average price in 2012. Yellow and white corn farm gate prices through 2013 are provided below. Prices for 2011 and 2012 have been updated based on BAS data, and may slightly differ from prices provided in previous reports. The GPH, through the NFA, buys minimal amounts of yellow and white corn at P10 ($0.22) and P12.30 ($0.27) per kilo, respectively. As of May 2013 (latest data available), the NFA has purchased an estimated 2,700 tons of locally produced yellow corn grain.
For MY14/15, corn production is expected to post modest gains compared to the previous years level as the local hog and poultry industries pursue export opportunities ahead of the economic integration of the Association of South East Asian Nations in 2015 (see TRADE and POLICY). Rice According to BAS, paddy rice (palay) production in 2013 reached a record 18.4 million tons, up 8.1 percent from the 2012 level. Area harvested in 2013 increased 3.4 percent to 4.75 million hectares compared to the 2012 level, while yields improved to 3.9 tons per hectare from 3.8 tons per hectare during the same period. Major rice producing areas in 2013 included the Cagayan Valley, the Autonomous Region of Muslim Mindanao, the Bicol Region, and the Caraga and Southern Mindanao regions. For the January-June 2014 period, BAS projects paddy rice output at 8.43 million tons for a 5% output gain from the 7.99 million tons production level during the same period in 2013. BAS attributes the production increase to an expected wider
area harvested, as well as better yields compared to the previous years levels. Philippine rice production and area harvested in MY13/14 were raised consistent with the most recent BAS estimates for the January-June 2014 forecast. Under its Food Staples Self Sufficiency Program 2011-2016, the GPH hopes to produce an estimated 21.5 million tons in 2014. Despite increasing production in recent years, few analysts believe achieving self-sufficiency status is feasible in the foreseeable future given infrastructure constraints, rising demand from a thriving economy, continued entry of undocumented shipments and climate change uncertainties (see POLICY). BAS reports that the average farm gate paddy prices in 2013 was at P16.94 ($0.38), 4.4% higher than the average price of P16.22 ($0.36) per kilo in 2012. The NFA, continues to buy clean and dry paddy rice at P17 ($0.38) per kilo. As of May 2013 (latest data available), an estimated 240,000 tons of locally grown rice has been procured by the NFA. MY14/15 rice output will likely decline from the previous years level due to the continued inflow of considerable undocumented imports and an expected shift of emphasis in policy from one of rice self-sufficiency to the diversification to other crops (see TRADE and POLICY). Consumption: Wheat There are at least 15 mills that compose the Philippine flour milling industry with an aggregate capacity estimated at 4 million tons. Existing plants operate below potential (at roughly 50 percent) due to flat milling wheat demand. Despite the underutilized capacity, new mills are coming on line. There are at least two new mills with an estimated combined daily milling capacity of 450 tons that recently became operational. Excess capacity will likely increase in MY14/15 as growth of milling wheat demand is expected to be marginal.
At least partly to blame for the flat demand is the increasing competition from cheap imported wheat flour from Turkey which is sold up to 40 percent lower than locally produced flour, according to trade contacts. There are at least 25,000 bakeries operating in the Philippines and small and medium-size bakers use an estimated 55 percent of overall wheat flour (see POLICY, Wheat). The local hog industry accounts for an estimated 60-65 percent of the countrys feed requirements, poultry with a 25-30 percent share and the balance divided by the local fishery subsector and other animal farms. Feedwheat demand in these industries is mainly price determined, i.e., more feedwheat is used if corn is more expensive and vice-versa. The average domestic feedwheat price in 2013 was P15.85/kilo ($0.35/kilo), according to local industry associations. The average price was highest in June 2013 at P17.06/kilo ($0.38/kilo) and lowest at P15.10/ kilo ($0.34/kilo) in March and November last year, according to the same source.
Feedwheat was selling at P14.00/kilo ($0.31/kilo) in January 2014, while the wholesale price of yellow corn was slightly lower (P13.95 or $0.31/kilo), according to preliminary data from industry. As a result of the recent price differences and feedback from industry, feedwheat demand was pared down modestly in MY13/14. Feedwheat consumption is expected to recover and increase in MY14/15 due to the expanding feed demand of the growing domestic hog and poultry industries. Corn The local hog sector has been undergoing consolidation in recent years. According to industry, small raisers have been declining while large hog operations, which use more sophisticated raising methods (e.g. modern animal health and nutrition technology, including quality feed rations), have been expanding. Dominated by large integrated commercial operations, the local poultry industry also continues to modernize and grow. In 2013, the poultry subsector expanded 4.2% and accounted for roughly 15% of overall farm output. Super-typhoon Haiyan (locally known as Yolanda) devastated the eastern side of the Visayas region in November 2013. Although it was one of the largest storms ever recorded, grain losses were minimal (147,000 tons of rice and 23,000 tons of corn). Also affected were chicken layer and broiler farms in Central and Western Visayas. Despite the losses, as well as those due to previous weather disturbances in 2013, industry expects a quick recovery and modest expansion in feed demand in 2014. The following are monthly average retail prices of yellow corn for the period 2011-2013. According to BAS data, the average yellow corn retail price in 2013 was at P22.04/kilo ($0.49/kilo), two percent higher than the 2012 average price of P21.51/kilo ($0.48/kilo). For white corn, the average 2013 retail price of white corn was P19.81/kilo ($0.44/kilo), slightly higher (0.5%) than the P19.72 ($0.44/kilo) average price in 2012 (refer to the following table). No significant change in white corn consumption is expected through MY14/15.
Because 2013 was predominantly a wet year characterized by frequent rainfall and some flooding, more drying and storage problems are expected in MY13/14. Only an estimated 15 percent of the domestic harvest is dried properly with the rest sun-dried in the open, according to industry contacts. The same source reports local feedmillers prefer imported corn grain as most (up to 70%) of locally grown corn is aflatoxin-contaminated. FSI Consumption in MY13/14 was raised due to more food corn consumption (corn grits-processing) and increased spoilage losses during the year. FSI consumption is likely to increase in MY14/15 due to the same reasons. Feedcorn use is predicted to continue increasing considerably through MY14/15. Being Avian flu and FMD-free, the Philippines is in a unique position to export meat and meat products to the region with the full implementation of the ATIGA. The domestic livestock and poultry sectors are expected to capitalize on this advantage and vigorously expand production. Already, there have been recent and tangible investments in new grain handling and storage facilities, as well as poultry and hog dressing plants, cold chain facilities and slaughterhouses.
Rice While rice losses were minimal as a result of Typhoon Utor and tropical storm Trami (which passed through the main island of Luzon in August 2013), local media reported on a spike in rice prices, and the scarcity of cheaper NFA rice shortly after the storms. Press articles pointed to hoarding efforts by smugglers and unscrupulous traders to embarrass the DAs rice-self-sufficiency drive (by forcing it to import rice) as reasons. The DA, on the other hand, attributed the price increases to delayed harvests, contending that increasing prices were a normal occurrence leading to the lean production months of rice production (i.e., the third quarter of each year). The DA and the NFA assured the public of adequate rice supply, and announced it would unload/release more rice to stabilize prices. Typhoon Haiyan devastated eastern Visayas in November 2013 but, as mentioned previously, rice damage was minimal. However, industry and government contacts report that a combination of the on-going GPH policy of officially suppressing rice imports and major relief operations following the storm led to eroded NFA buffer stocks and the official import of the additional 500,000 tons from Vietnam through a Government-to-Government arrangement in December 2013. Commercial rice prices continued to increase in late-2013, providing more attractive incentives for undocumented rice imports to flow in. The monthly average retail price of milled rice from 2011 to 2013 is provided in the following table based on BAS data. Going around Metro Manilas retail outlets, however, prices were noticeably higher (up to the mid P40s per kilo). Rice consumption in MY14/15 is expected to slightly increase from the MY13/14 level. Trade: Wheat Wheat was the top U.S. agricultural export to the Philippines in 2013, with sales up 2.6% from the previous year, reaching $624 million. Overall wheat imports (wheat and wheat flour) in 2013 declined 17% to 3.3 million tons from the 4 million ton level in 2012 due in part to a considerable drop in feedwheat imports. Despite the decline, U.S. wheat sales in 2013 increased to 1.96 million tons from 1.86 million tons in 2012, and gained a 62% market share of overall wheat imports (up from the 49% share in 2012).
Overall wheat imports for MY13/14 are likely to be down from the previous years level based on import data for the July-December 2013 period and due to the short-term (at least) shift from feedwheat to corn use in the livestock industry. Imports in the second half of 2013 reached 1.7 million tons compared to the 1.9 million tons in the second half of 2012.
Milling wheat imports are likely to continue moderately growing through MY14/15 as a result of the strengthening Philippine economy and the increasing Philippine population. Feed wheat imports in MY14/15 are likely to recover from the drop in MY13/14 as the domestic livestock and poultry industries continue to expand. Executive Order No. 61 (EO 61), signed in October 2011, adjusted Most Favored Nation (MFN) tariff rates on a range of agricultural products, including wheat. Milling wheat duties were removed by EO 61, but are still subject to a 12 percent Value Added Tax (VAT) on the subsequent flour sales, payable at the time the wheat is imported. Feed wheat imports, on the other hand, are subject to a 7 percent MFN duty and are not subject to VAT. Wheat flour imports are also subject to a 7 percent MFN tariff. Under the ASEAN-Australia-New Zealand Free Trade Agreement, both milling and feed wheat imports to the Philippines from member countries are duty-free. Corn According to Global Trade Atlas, corn imports in 2013 more than doubled the 2012 level, the majority (87%) originating from Thailand. U.S. corn imports in 2013 declined 18% from the 2012 level and accounted for 5% of overall corn imports last year. On a market year basis, corn imports are likely to increase to 300,000 tons in MY13/14 from 92,000 tons in MY12/13 as a result of the shift away from feed wheat use to imported yellow corn. Imports are likely to increase to 400,000 tons in MY14/15 as local livestock and poultry industries prepare for full economic integration of the region. Corn exports in MY14/15 (estimated at 100,000 tons) is premised the GPH will authorize corn exports during the year. Corn imports into the Philippines have a two-tiered MFN tariff structure: 35% in-quota duty and a 50% out-of-quota rate. For 2014, the in-quota or Minimum Access Volume (MAV) for corn is 217,000 tons. Corn imports originating from member countries of ASEAN are charged a much lower 5% duty through 2015 under the ATIGA. Rice Rice imports from WTO-partner countries carry a 40 percent MFN in-quota tariff through 2015. The current in-quota or Minimum Access Volume (MAV) is 350,000 tons. Imports beyond the quota are levied a 50 percent duty. Rice imports under the WTO also have quantitative restrictions (QR). In late 2011, the GPH formally informed the WTO its intention to start talks on extending the rice QR to 2017 and negotiations are ongoing. Under the ATIGA, rice imports from ASEAN-member countries are levied a 40% duty in 2014, unchanged from the previous years level. There are no quotas. Rice tariffs are to go down to 35% in 2015, the year the ATIGA will be fully implemented. Rice imports through (November) 2013 are provided in the following table. Import statistics are used as reports from Vietnam rice exporters are not provided.
The smuggling of food and agricultural products into the Philippines intensified in 2013, according to numerous local press articles, corroborated by industry and trade contacts. Last year, rice smugglers had very attractive incentives to ply their trade: high domestic tariffs and production costs, plentiful global supplies, increasing milled rice prices, etc. A study by the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA) revealed the most smuggled commodity into the Philippines, both in terms of volume and value, is milled rice. Volume estimates from the trade and rice millers vary from 300,000 to one million tons of rice smuggled annually. On a market year basis, FAS Manila estimates the volume of smuggled rice between 400,000-600,000 tons in MY13/14. Responding to increasing rice prices, the DA and the NFA recently authorized the importation of 800,000 tons in 2014 to neutralize increasing rice prices and dampen inflation. Industry contacts report that an additional 200,000 ton import for 2014 volume may still follow. As a result, MY13/14 imports were raised from the original 1.4 million tons to 2.0 million tons, to be comprised of the 350,000 MAV, the 500,000 tons licensed imports announced in late 2013, 600,000 tons representing partial deliveries of the most recent announced 800,000 ton importation, and 550,000 tons smuggled imports. No significant change in overall rice imports is predicted MY14/15. However, the share of undocumented imports relative to overall shipments is likely to decline from the previous years level as a result of the dramatic increase in legitimate rice import in 2014. Stocks: Wheat Wheat inventories are expected to decline in MY13/14 and increase marginally in MY14/15 due to increasing milling and feedwheat demand. Wheat stocks are largely private sector-held i.e., flour and feed millers. Corn The majority of corn stocks are with private traders and big feedmillers. Corns stocks in MY13/14 were raised due to upward adjustments made to production and imports, and are expected to remain at this level in MY14/15. Industry contacts report that corn stocks at the end of 2013 nearly reached a million tons. Rice Philippine rice inventory is comprised of those stocks held by the NFA, the commercial sector, and households. As a matter of policy, a 90-day national rice buffer stock entering the third quarter of each year should be maintained. Of this desired stock level, 30-day worth of rice stocks should be in the NFAs possession. Additionally, at any given time, the NFA should have a stock level good for 15 days. Considerable imports in MY13/14 are expected to raise the reportedly depleted rice inventories. At a daily requirement of 35,000 tons, ending MY13/14 stocks are projected to last for 72 days. Stocks are predicted to increase anew in MY14/15 due to increased imports to slightly over a 90-day inventory. Policy:
Wheat Domestic flour millers remain seriously concerned over large amounts of cheap Turkish flour they allege is being dumped in the Philippines. In June 2013, the millers presented a petition to increase duties on Turkish flour from 7% to 20% to the Philippine DA. As of March 2014, the DA had not yet taken the necessary step of transmitting the antidumping petition to the Philippine Tariff Commission. Analysts surmise that the combination of pressure from local bakers and the absence of any domestic wheat production keeps this from being a high priority issue for the DA. Corn Mainly due to good production, local corn farmers have been petitioning the GPH to allow them to export corn in recent years. The DA, in January 2014, indicated it was amendable to allowing the exportation of corn grits ahead of the ASEAN economic integration under the ATIGA by 2015. Corn exportation is allowed only in times when the NFA declares there is a surplus. To date there has been no formal declaration. Rice Achieving rice self-sufficiency is a priority of the Aquino Administration. The continued and massive inflow of smuggled rice, higher prices, and suppressed official imports however, have compelled the GPH to review its current agricultural policies. In a Cabinet meeting held February 2014, a shift from rice self-sufficiency to one that encourages farmers to plant alternative, high-value crops was reportedly being considered.
In a related development, House Bill (HB) 3897 or the proposed Act Granting the NFA the Sole and Exclusive Power to Import Rice was filed in Congress in February 2014. The bill seeks to prohibit rice importation by the private sector and provides stiffer penalties for violators. HB 3897 has been referred to the Committee on Agriculture of the Philippine House of Representatives. The general issue of smuggling in the Philippines is long-standing and anecdotal, and the volumes involved are difficult to quantify. In a new report by Global Financial Integrity (GFI), a Washington DC-based research group, illicit financial inflows to the Philippine economy (primarily due to under-invoicing of imports aka technical smuggling) for the period 1960 to 2011 is estimated at $277.6 billion. GFI has characterized the technical smuggling problem as being so widespread in the Philippines that over the past decade, 25% of the value of all goods imported into the Philippines or $1 out of every $4 goes unreported to customs officials. Rice smuggling has gained special attention in the press as it is the country's preferred staple. Philippine rice farmers are protected from global prices by an unusually high tariff of 40%. This high level of protection combined with mountainous terrain, small scale production, and generally poor rice handling infrastructure has resulted in a high cost of production in the Philippines, especially when compared to the huge, relatively efficient operations of Vietnam and Thailand. April 2014
Why Cant Vietnam Grow Better Rice?

Although the country is a major rice exporter, the industry suffers from quality issues. By Elisabeth Rosen April 24, 2014 Its a breezy winter morning in the countryside near Hoi An, a small town on Vietnams central coast. Stooping low, I press long green shoots one by one into the dense mud of the rice paddy. Im learning how to plant rice the traditional way, following the method that was universal before the introduction of agricultural machinery and remains common in many of the countrys provinces today.y, y. Here, here, farmer Pham Nhi says, showing me where to place the stems.Rice has been Vietnams staple food for more than a thousand years. Today, the government designates 3.8 million hectares for growing the grain; this quota represents nearly half the total land for agricultural production. About one-third of the annual harvest is shipped overseas. With India and Thailand, Vietnam is one of the worlds top three rice exporters. Last year, the country earned nearly $3 billion from selling rice overseas. China is an important customer, buying one-third of Vietnams rice exports. Japan is another major rice importer in the region, but most of the grains produced in Vietnam fail to meet its strict quality standards. The East Asian country stopped importing Vietnamese rice altogether in 2008 after discovering significant amounts of pesticide residue, although shipments resumed five years later when two Mekong Delta companies started working with farmers to ensure the grains met Japans stringent requirements.The quality of Vietnamese rice isnt problematic just because it contains too many pesticides. While neighboring Thailand grows high -quality varieties like jasmine rice, which takes a whole year to harvest but sells in top-tier markets such as the United States and Japan, Vietnam produces lower-value types that can be grown more quickly. Thailand is currently facing its own rice crisis, as farmers unable to reap the economic benefits promised by Prime Minister Yingluck Shinawatras subsidy program are increasingly withdrawing their political support for her government. After the Thai anti-corruption agency started an investigation into the subsidy program, China canceled a planned deal to buy Thai rice, but its unlikely that Vietnam will be able to take advantage of this opportunity to boost exports.Why cant Vietnam grow better rice? Nhis small paddy offers an instructive example.The major problem that the rice industry faces is fragmented and small-scale production, says Dr. Nguyen Anh Phong, a researcher at the Center for Agriculture Policy. This leads to poor post-harvest management such as improper storing and milling, which causes degradation.It also makes inspections harder to carry out in a consistent way, accounting for problems like pesticide residue. Many farmers still harvest by hand; those who have mechanized typically rely on small machines with a limited capacity. And unlike more industrialized countries where mechanical dryers are used, Vietnamese farmers typically let the sun do the work, although this contributes significantly to post-harvest losses.Farmers dry rice on the road or in their gardens, so if it rains, the rice gets damaged, Phong says.One way the government is addressing the problem of scale is by encouraging farmers to form cooperatives.
Informal collective farming in Vietnam dates back to French colonial times, and the government turned many individual farms into cooperatives as part of short-lived efforts to collectivize agriculture between the 1950s and 1980s. However, these cooperatives were abandoned after they failed to deliver on their promise of continually boosting output.The 2012 Cooperatives Law was far more helpful. The law legally recognized farmers associations as companies, which made it easier for them to get credit from banks. This helps farmers buy machinery to make production more efficient. It also, at least in theory, lets them market their rice themselves rather than selling it to a middleman.However, while this approach sounds good on paper, it has limited practicality.Farmers might have a high school education, even a university diploma. But they havent studied business management. They dont know how to prepare a contract or deal with the tax system, Phong explains. A new system of contract farming addresses this issue, as well as the persistent problem of quality control. Under the canh dong mau lon (large rice field) model pioneered by An Giang Plant Protection Company (AGPPS), a big company signs a contract with individual rice growers to provide them with technical support and ensure the quality of the product, in addition to purchasing and exporting the rice.AGPPS started out as a small firm with 23 employees that sold pesticides to rice farmers in the Mekong Delta. While offering advice on spraying crops, they seized the opportunity to expand into the distribution business. In the last few years, AGPPS has become not only the countrys largest pesticide manufacturer, but also a major rice exporter. Along with neighboring An Giang Import Export Co, they were one of the two Vietnamese companies that won rice export contracts with Japan, convincing the East Asian country that they had the technical expertise to control pesticide levels.
Witnessing the success of the contract farming model, other Vietnamese companies like import-export firm Vo Thi Thu Ha and feed producer Agrimex have adopted parts of the strategy as have a handful of Japanese businesses that are signing similar contracts with rice farmers in Vietnam.Like Vietnamese farmers, small-scale growers in rural Japan are struggling to support themselves. One Niigata farmer told the New York Times that many farmers in his area had all but given up on their tiny plots. As the Abe government ends rice subsidies for farmers in a push to industrialize agriculture, experimenting with the contract farming model to grow rice in Vietnam offers Japanese firms a way to significantly reduce production costs.As Japanese firms mull growing rice in Vietnam, Vietnamese farmers might be switching to other crops. Rice consumption is gradually waning, and the country enjoys a comfortable surplus; the Ministry of Agriculture and Rural Development is currently in discussions to shift 200 hectares of low-productivity rice areas to growing corn. (Currently, land registered as rice land cannot legally be transferred to growing other crops, in order to maintain the land quota). The move would support the rapidly growing livestock industry, which currently depends on costly imported corn.The switch to corn would also benefit farmers. For Nhis family and the other 9.5 million households that make a living from growing rice, the labor-intensive job offers scant benefits. Rice farmers earn about 1 million VND ($50) per month, far less than coffee and pepper growers or those working in non-agricultural occupations. In the Mekong Delta, which produces 95 percent of rice for export, young people are increasingly moving awayfrom the family paddy to more lucrative
jobs in cities and industrial zones.The government considers rice a staple, so they invest a lot of resources in it. But most government subsidies go to the traders. Farmers earn the least and are sometimes at the losing end, says Eduardo Sabio, regional representative at VECO Vietnam, an NGO working on sustainable agriculture. They earn very little, the price is controlled and dictated, the land area is very small and the quality is low. If they go to the city to find work, they earn much more.As other farmers are leaving their land, however, Nhi is turning to an alternative source of income: tourism. Last year, he converted half his paddy area from growing rice to hosting hands-on demonstrations for Wet Rice Tours.
We want to show people how hard it is to be a farmer, says Jack Tran, the entrepreneur who runs the tours through his company Hoi An Ecotours.Born in the same village as Nhi, Tran first learned about ecotourism while studying at university in Danang, the central regions largest city. Determined to bring the economic benefits of tourism to farmers at home, he started organizing Wet Rice Tours. For $50 a person the same amount that most farmers earn in a month American, European and even Vietnamese tourists spend a morning learning how to grow rice, from plowing the paddy to transplanting seedlings. Hosting the Wet Rice Tour has multiplied Nhis income by a factor of almost 10.Leading a water buffalo around the field, with his wife holding the plow behind them, German tourist Volker Werner marvels at the amount of human labor required to produce even small amounts of the grain.This is a full-time job? They do it every day? he asks. It takes a few days to plow this small field by buffalo; a tractor can do all the work in a fraction of the time. In parts of the Mekong Delta, Tran tells us, you dont see buffalo anymore, only machines. But while this might be progress for Vietnamese exports, Tran isnt so optimistic about the effect on society.As industrialization grows, were losing the culture, he says. Elisabeth Rosen is based in Hanoi, where she is an editor at Word Vietnam, a national culture and lifestyle magazine. She has previously written for The Atlantic and DestinAsian, among other publications.
Prices of rice dropped by 0.30 baht

Thursday, 24 April 2014By NNT
BANGKOK, 23 April 2014, - The Department of Internal Trade (DIT) has revealed that the price of the 5% moisture Thai rice has declined by 0.30 baht, down to 11-12 baht per kilogram, after Thailand has failed to seal
a rice deal with the Philippines. According to Mr. Somchart Soithong, the DIT Director General, the failure to sell 800,000 tons of rice to the Philippines has shaken confidence of the bidders expected to participate in todays Agricultural Futures Exchange of Thailand (AFET) rice auction. The department will negotiate with bidders to prevent rice prices from dropping any further.However, according to the Department of Foreign Trades reports, several countries such as Middle East nations, South Korea, African countries, and China have expressed interests in purchasing rice from Thailand, which is indicative that grain prices would recover next month, said Somchart.The DIT plans to auction off over 200,000 tons of pledged rice in stock in todays 10th AFET rice auction.The rice on offer consists of 50,000 tons of Jasmine rice and 160,000 tons of 5% moisture white rice, Somchat said, adding that he is confident that the DIT will be able to sell more than half of that amount, while promising to forge ahead with the AFET auctions at least until the end of this year. The DIT has been able to sell 547,000 tons of rice, worth over 7 billion baht altogether, in nine previous auctions, the Director-General said.
PM urges NACC to inspect rice stock to determine whether rice was really missing
Published on April 24, 2014 by TFP BANGKOK, 24 April 2014 (NNT) Prime Minister Yingluck Shinawatra has asserted that rice in the governments stockpile has not gone missing as suspected by the National Anti-Corruption Commission (NACC), urging the latter to conduct an inspection of the governments rice stock to determine whether rice was really missing.Ms. Yingluck wrote on her Facebook that figures in the documents from the rice mortgage accounting sub-committee did not take into account the 2.9 million tons of rice in the possession of the Government Warehouse Organization and the Marketing Organization for Farmers, refuting the claim that some rice had gone missing. She suggested that for the purpose of transparency, the NACC should seek more evidence and inspect the rice stock itself. The suggestion has been forwarded to the NACC through Deputy Commerce Minister Yanyong Phuangrat.Minister Yanyong visited the NACC on Wednesday to submit a letter asserting that inspections of the rice stock in warehouses, carried out in March by Ministry of Commerce officials and members of the rice stock inspection committee, found that the entire 18.7 million tons of rice was intact and another 1.1 million tons was being fumigated. (NNT: Namo Vananupong)
India may cede top rice exporter spot under Southeast Asian price onslaught
BY RAJENDRA JADHAV
MUMBAI Thu Apr 24, 2014 6:01am IST
(Reuters) - India's rice exports could slide by nearly a quarter this year and knock the country off its perch as top exporter of the grain due to stiff competition from Southeast Asian rivals that have recently slashed prices, Indian industry executives said.
A drop in Indian exports could help Thailand trim a record inventory chalked up under a controversial ricebuying scheme. Thailand may also be able to reclaim its status as the world's biggest rice exporter, which it lost to India two years ago. It will also leave more rice in Indian hands at a time when the country's stocks are bulging and it faces the prospect of a record harvest, creating problems of storage."We are almost out of the market now. Thailand and Vietnam are selling aggressively and it is difficult for Indian exporters to match those prices," B.V. Krishna Rao, managing director at Pattabhi Agro Foods Pvt Ltd, India's biggest non-basmati rice exporter, told Reuters."Thailand will again become the world's biggest rice exporter. Our nonbasmati rice exports could drop to 4 million tonnes," Rao said.India toppled Thailand in 2012 to become the world's biggest rice exporter after the government lifted a four-year-old ban on non-basmati rice shipments in 2011 to trim a growing mountain of the grain following bountiful harvests. In the 2013/14 financial year that ended on March 31, India's total rice exports stood at a record 10.5 million tonnes, comprising 4 million tonnes aromatic basmati rice and 6.5 million tonnes of the non-basmati variety.While India's shipments of the basmati variety are likely to remain steady in 2014/15 at around 4 million tonnes, total rice exports could drop to 8 million tonnes due to the slide in exports of non-basmati rice, industry
officials said.Desperate for revenues, Thailand has this year been selling larger quantities of the grain from state warehouses at low prices to private traders. Thailand-origin rice was offered at the lowest price in an international tender from Iraq's state grains buyer to purchase at least 30,000 tonnes, European traders said on Tuesday.The push could boost Thailand's rice exports to 9 million tonnes in the 2014 calendar year from 6.7 million a year ago, according to a March report issued by a U.S. Department of Agriculture attache in Thailand. India's exports in the 2014 calendar year are expected to be lower than that, industry executives said. Thailand is now offering 5 percent broken rice at $390 to $395 per tonne free-on-board basis, compared to India's offer price of $400.The Southeast Asian nation usually charges a premium over Indian rice due to its longer grains
"India and Thailand are quoting nearly the same price for 5 percent broken rice. Thailand's prices need to go up by $40 per tonne to make Indian exports viable," said M. Adishankar, executive director at Sri Lalitha, a leading rice exporter based in the southern Indian state of Andhra Pradesh. PROBLEM OF PLENTY Since the first week of February, Thailand has cut export prices of 5 percent broken rice by nearly 12 percent, compared with a 2 percent drop in export prices from Vietnam, the world's second-biggest exporter. Indian prices rose 2 percent during the same period as the rupee strengthened."For some grades Thailand has been offering discounts compared to Indian prices. Indian exporters can't lower prices substantially due to the appreciating rupee," said M.P. Jindal, president of the All India Rice Exporters Association.A strong rupee cuts the returns of exporters. The Indian currency has risen nearly 3 percent since the start of February.The imposition of a 110 percent import duty on rice last year by Nigeria, a major importer of the grain from India, could further hamper exports from the South Asian country.India mainly exports non-basmati rice to African countries such as Nigeria, Senegal and Benin, while Iran, Saudi Arabia and United Arab Emirates are key buyers of its basmati rice."Shipments to Nigeria are hit due to the new duty structure," said Adishankar of Sri Lalitha. Other African buyers are switching to Thailand as the government has been aggressively selling stocks from its warehouses, the exporters said.Slowing exports will add to India's problem of plenty in foodgrains. Rice inventories with India's state-run agencies have already jumped above 30 million tonnes as on April 1, government data shows, against a target of 14.2 million tonnes. Moreover, the country is estimated to produce a record 106.19 million tonnes rice in the year to July 2014."Slowing exports mean more and more farmers will sell their crop to the government, but it doesnt have enough storage space," said a rice miller based in Kakina da, Andhra Pradesh.
(Editing by Muralikumar Anantharaman)
Image:A Kashmiri man works in his paddy field in Srinagar in this September 3, 2012 file photograph.
WB summer rice crop likely to be higher by 25% to 7.5 mn tonne

Nearly 68% of total population of West Bengal resides in rural areas, according to last census
Namrata Acharya | Kolkata April 24, 2014 Last Updated at 15:06 IST
Ahead of elections in West Bengal, a bumper Boro or winter paddy crop is expected to come as a relief for the ruling government. Nearly 68% of total population of West Bengal resides in the rural areas, according to the last census.Boro crop, which is sown during Januray-February and harvested in April-May, was sown over nearly 1.5 million hectare of land this year. Informal estimates suggest, this year Boro crop production could be close to 7.5 million tonne, against nearly 6 million tonne last year, a rise of nearly 25%."Field conditions suggest that this year we will have a bumper Boro crop production due to good weather condition and timely water supply," said Pranab Chatterjee, professor at Bidhan Chandra Krishi Viswavidyalaya (BCKV).Rice production in West Bengal is spread across three seasons---aus, aman and boro. Of these, the kharif rice (aus and aman) account for about 70% of the state's production.In 2012-13, the state produced 15.3 million tonnes (MT) of rice, an increase of 5.5% over the previous year. In October last year, floods in West Bengal had destroyed much of Aman or summer crop, leading to farmers suicides This year, the districts which were affected by floods included high rice-productivity districts of Bardhaman, Hooghly, Birbhum and Nadia. Burdwan, Birbhum, Nadia and Hooghly have the highest productivity and account for about 27% rice acreage and 32% production.This year, Boro paddy acerage has remained same as last year, as not many farmers opted for paddy crop unprecedented rise in cost of electricity, fertilizer, labour and diesel, said Ramprasad Biswas, Gotra Krishi Samavayi Samiti, Burdwan.However, this season, high ground level water retention after floods, and adequate water supply of water from Damodar Valley Corporation, helped farmers are some of the factors that led to good harvest.Caught between drought and floods, farmers in West Bengal have been struggling with falling realizations and poor demand situation. In addition, a poor procurement policy had often led to distress sale in the state.
Haryana bans paddy sowing before May 15

Press Trust of India | Chandigarh Keeping in view the fast depleting ground water, the Haryanagovernment has banned sowing of paddy crop before May 15 and its plantation before June 15. The state Agriculture Department Department said that ground water has been depleting fast in the state due to rotational crop circle of wheat and paddy. A spokesman said that the government has enacted Preservation of Sub-soil Water Act, 2009. Under the Act, paddy sowing and plantation before May 15 and June 15 respectively has been completely banned. He said farmers who violate the order would be punished under the Act. "Their crops would be destroyed and a penalty of Rs 10,000 per acre per month would be imposed. In addition, their tubewell connections would also be disconnected," he added.
Agri Min proposes Rs 50/qtl MSP hike in paddy, cotton & tur
Press Trust of India | New Delhi April 24, 2014 Last Updated at 14:41 IST The Agriculture Ministry has proposed a moderate hike in the minimum support price (MSP) of paddy by Rs 50 to Rs 1360/quintal for the 2014-15 crop year (July- June) and upto Rs 100/quintal raise in pulses MSP. The ministry has also proposed a Rs 50 per quintal increase in cotton MSP at Rs 3750 for medium staple and Rs 4050 for long staple for 2014-15 crop year, sources said. The Agriculture Ministry's recommendations on MSP of paddy, cotton and other 12 kharif crops are in line with the suggestions made by the government's statutory body Commission for Agricultural Costs and Prices (CACP), sources said. A Cabinet note has been moved for inter-ministerial comments.
A final call on the MSP proposal would be taken post elections by the new government. According to sources, the Agriculture Ministry has proposed increase in the paddy MSP by Rs 50 to Rs 1360/quintal for common variety and a raise of Rs 55 raise to Rs 1400/quintal for 'grade A' variety of paddy for the 2014-15 crop year. A moderate increase in paddy MSP has been recommended keeping in view the excessive stock of rice in the government godowns, sources said. With regard to other cereals, the ministry has suggested a marginal hike in
maize MSP by Rs 30 at Rs 1530/quintal for hybrid variety and Rs 1550/quintal for maldandi variety for this year as its MSP was raised sharply two years back. Similarly, it has suggested a Rs 50 raise in ragi MSP at Rs 1550/quintal for 2014-15 from over last year.
However, the ministry has recommended retaining the existing MSP of bajra and maize at Rs 1250/quintal and Rs 1310/quintal, respectively, for 2014-15 crop year. It has also proposed keeping the MSP of groundnut and soyabean unchanged for this year at Rs 4000/quintal and Rs 2500-2560/quintal, respectively. As far as pulses are concerned, the Agriculture Ministry has recommended a Rs 50 hike in the support price of 'Tur' and 'Urad' at Rs 4350/quintal each for 2014-15. The ministry has recommended a Rs 100 increase in MSP of 'Moong' at Rs 4600 per quintal for this year to keep inter-crop parity within kharif (summer) pulses. With regard to oilseeds, the ministry has proposed to keep groundnut and soyabean MSP unchanged for 2014-15.
However, it has suggested an increase of Rs 50 in the support price of sunflower seed at Rs 3750/quintal from over last year, besides Rs 100 hike each in MSP of sesamum and nigerseed at Rs 4600 and Rs 3600/quintal, respectively, for this year. Sowing in the kharif (summer) season begins with the start of the south west monsoon from June and harvesting will commence from October.
Pusa 1509 to steam up Basmati acreage

VISHWANATH KULKARNI
NEW DELHI, APRIL 23:
Jagat Singh Sandhu, a sixty something farmer in Masani village near Sangrur in Punjab, is planning to plant the new basmati variety, Pusa 1509, on at least 10 acres of his 11-acre farm, provided he gets sufficient seeds.Till last year, Sandhu used to grow a mix of the popular basmati variety Pusa 1121 and Permal, the non-basmati rice.The rates were good last year and I have heard that the new variety gives more yield and consumes less water, Sandhu said. Like Sandhu, Jitendra, another farmer near Panipat in Haryana, is planning to try out the new basmati variety. Acreage may rise As farmers, lured by higher returns, are eager to grow more of the 1509 variety, experts predict that the acreage under basmati would see a quantum leap this year.Also the increased acceptance of 1509 may boost basmati output significantly. The yield of 1509 is in the range of 2.2-2.5 tonnes an acre, while for the 1121 variety, it is 1.8-2 tonnes.There will be at least three-fold increase in basmati output this year, Raj Sood, a trader in Punjabs Khanna, Asias largest grain market, told Business Line.According to the All-India Rice Exporters
Association, basmati acreage in 2013-14 increased by some six per cent to around 19 lakh hectares, with almost eight lakh hectares planted in Punjab alone.Vijay Setia, Director at Chaman Lal Setia Exports Ltd, expects acreage under the farmer-friendly 1509 variety to increase as farmers are likely to shift from 1121 and nonbasmati varieties, and even from sugarcane. Prices soar Basmati paddy prices shot up by 27 per cent from 3,300-3,400 a quintal at the beginning of the last season in October to around 4,200 by December-January, riding on robust overseas demand for the aromatic rice. Indias basmati exports in the just ended financial year exceeded a record 4.02 million tonnes in volumes and $4.5 billion in value.Basmati paddy prices are currently ruling steady around 4,000 a quintal.Farmers have seen the benefit of the price rise and would obviously want to grow more, Setia said. Of the eight lakh hectares under basmati in Punjab, at least 70-80 per cent will be under the high-yielding varieties. Shift in pattern AK Singh, principal rice breeder at the Indian Agricultural Research Institute, who developed the 1509 variety, said the new strain would replace at least 60 per cent of the area under the popular Pusa 1121.We also expect it (1509) to replace non-basmati varieties, such as Permal, Singh said, adding that availability of the 1509 seeds should not be a problem as IARI has signed memorandum of understanding with some 15 companies to multiply the seeds.Over the next three years, our effort is to make 1509 resistant to blight and brown plant hoppers, Singh said. (This article was published on April 23, 2014)
El Nino possibility: Experts say no pressing panic button yet

PTI | Apr 24, 2014, 06.45 PM IST NEW DELHI: With IMD forecasting below normal monsoon this year because of a possible El Nino factor, agriculture experts on Thursday advised the government not to press the panic button yet."We need to be on alert and be prepared but not get panic because the country had escaped El Nino without any scratch way back in 1997," former chief of Commission for Agricultural Costs and Prices Ashok Gulati said."The monsoon seasonal rainfall is likely to be 95 per cent of the long period average with an error of plus or minus 5 percent," Indian Meteorological Department said in a statement. Officials in the weather department said the monsoon is expected to be below normal because of the El Nino effect.Gulati, who is now chair-professor at thinktank ICRIER, said below normal rain does not mean there will be drought. "We have to see how would be the distribution of rain across the country."El Nino refers to the
warmer-than-average sea surface temperature in the central and eastern tropical Pacific Ocean. This condition occurs every 4-12 years and had last impacted India's monsoon in 2009, leading to the worst drought in almost four decades.Crisil chief economist D K Joshi said: "No doubt, the IMD forecast is not encouraging, but I won't press the panic button now as there is higher probability of normal monsoon. ""Below normal monsoon is not a drought year. What matter is how well rainfall is distributed across the country. We need to be concerned and be prepared so that we are not taken by surprise," he added.The fourmonth long long monsoon starting June is crucial for kharif crops such as rice, soyabean, cotton and maize because almost 60 per cent of the farm land in the country is rainfed.Gulati said as per the Skymet forecast, rainfall in the country's north west and western regions would be hit badly if El Nino occurs.
"If it (El Nino) affects rain in the western region, oilseeds, cotton, pulses and onion crops would be affected. The north-west region may not face much problem as it is irrigated," he added.Harish Galipelli, head of commodities and currencies with JRG Wealth Management said if the rainfall spread is scattered then it will have impact on agriculture yields and production, thereby prices.Australian Bureau of Meteorology and private forecaster Skymet have also predicted a likelihood of El Nino factor hitting monsoon in India.
Nagpur Foodgrain Prices - APMC & Open Market-April 25

Fri Apr 25, 2014 1:56pm IST Nagpur, Apr 25 (Reuters) - Gram prices in Nagpur Agriculture Produce and Marketing Committee (APMC) reported strong on good demand from local millers amid weak supply from producing belts. Fresh rise on NCDEX and upward trend in Madhya Pradesh gram prices also boosted sentiment, according to sources * * * * FOODGRAINS & PULSES GRAM * Desi gram raw showed upward trend in open market here on increased buying support from local traders amid thin arrival from producing belts. TUAR * Tuar varieties ruled steady in open market on poor demand from local traders amid ample supply from producing regions. * Udid varieties recovered strongly in open market on increased marriage season demand from local traders. Reports about 25 per cent downfall in crop position in this season also pushed up prices. * In Akola, Tuar - 4,100-4,300, Tuar dal - 6,300-6,500, Udid at 6,100-6,500, Udid Mogar (clean) - 7,200-7,700, Moong - 8,500-8,700, Moong Mogar
(clean) 10,000-10,800, Gram - 2,600-2,800, Gram Super best bold - 3,600-4,000 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 2,365-2,796 2,300-2,750 Gram Pink Auction n.a. 2,100-2,600 Tuar Auction n.a. 3,800-4,260 Moong Auction n.a. 6,300-6,800 Udid Auction n.a. 4,300-4,500 Masoor Auction n.a. 2,600-2,800 Gram Super Best Bold 3,900-4,200 3,900-4,200 Gram Super Best n.a. Gram Medium Best 3,700-3,800 3,700-3,800 Gram Dal Medium n.a. n.a. Gram Mill Quality 3,500-3,650 3,500-3,650 Desi gram Raw 2,850-2,900 2,800-2,850 Gram Filter new 3,150-3,450 3,150-3,450 Gram Kabuli 8,900-10,800 8,900-10,800 Gram Pink 7,900-8,300 7,900-8,300 Tuar Fataka Best 6,700-6,900 6,700-6,900 Tuar Fataka Medium 6,500-6,600 6,500-6,600 Tuar Dal Best Phod 6,000-6,200 6,000-6,200 Tuar Dal Medium phod 5,600-5,900 5,600-5,900 Tuar Gavarani 4,450-4,550 4,450-4,550 Tuar Karnataka 4,650-4,750 4,650-4,750 Tuar Black 7,700-7,900 7,700-7,900 Masoor dal best 6,300-6,500 6,300-6,500 Masoor dal medium 6,000-6,150 6,000-6,150 Masoor n.a. n.a. Moong Mogar bold 10,900-11,100 10,900-11,100 Moong Mogar Medium best 10,200-10,600 10,200-10,600 Moong dal super best 9,500-9,800 9,500-9,800 Moong dal Chilka 9,000-9,250 9,000-9,250 Moong Mill quality n.a. n.a. Moong Chamki best 8,500-9,500 8,500-9,500 Udid Mogar Super best (100 INR/KG) 7,600-7,900 7,500-7,800 Udid Mogar Medium (100 INR/KG) 6,100-6,900 6,000-6,800 Udid Dal Black (100 INR/KG) 5,200-5,500 5,100-5,400 Batri dal (100 INR/KG) 4,500-6,000 4,500-6,000
Lakhodi dal (100 INR/kg) 3,050-3,150 3,050-3,150 Watana Dal (100 INR/KG) 3,350-3,450 3,350-3,450 Watana White (100 INR/KG) 3,400-3,500 3,400-3,500 Watana Green Best (100 INR/KG) 4,900-5,200 4,900-5,200 Wheat 308 (100 INR/KG) 1,600-1,800 1,600-1,800 Wheat Mill quality(100 INR/KG) 1,700-1,750 1,700-1,750 Wheat Filter (100 INR/KG) 1,600-1,800 1,600-1,800 Wheat Lokwan best (100 INR/KG) 2,150-2,500 2,150-2,500 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) 3,100-3,700 3,100-3,700 MP Sharbati Medium (100 INR/KG) 2,400-2,900 2,400-2,900 Wheat 147 (100 INR/KG) 1,600-1,700 1,600-1,700 Wheat Best (100 INR/KG) 1,700-1,750 1,700-1,750 Rice BPT new(100 INR/KG) 2,700-2,900 2,700-2,900 Rice BPT old (100 INR/KG) 3,200-3,600 3,200-3,600 Rice Parmal (100 INR/KG) 1,700-1,850 1,700-1,850 Rice Swarna old (100 INR/KG) 2,700-2,800 2,700-2,800 Rice Swarna new (100 INR/KG) 2,300-2,450 2,300-2,450 Rice HMT new (100 INR/KG) 3,900-4,200 3,900-4,200 Rice HMT old (100 INR/KG) 4,400-4,700 4,400-4,800 Rice HMT Shriram (100 INR/KG) 4,800-5,800 4,800-5,800 Rice Basmati best (100 INR/KG) 10,000-13,500 10,000-13,500 Rice Basmati Medium (100 INR/KG) 7,000-9,500 7,000-9,500 Rice Chinnor (100 INR/KG) 5,600-6,000 5,600-6,000 Rice Chinnor new (100 INR/KG) 5,100-5,600 5,100-5,600 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. 41.0 degree Celsius (105.8 degree Fahrenheit), minimum temp. 23.4 degree Celsius (74.1 degree Fahrenheit) Humidity: Highest - n.a., lowest - n.a. Rainfall : nil FORECAST: Mainly clear sky. Maximum and Minimum temperature likely to be around 42 and 24 degree Celsius respectively. Note: n.a.--not available (For oils, transport costs are excluded from plant delivery prices, but included in market prices.)

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

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

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24th April , 2014

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