15th may,2015 daily global rice e newsletter by riceplus magazine

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Daily Global Rice E-Newsletter by Riceplus Magazine

Rice E-Newsletter May 15, 2015 V o l u m e 5, Issue I

Rice farmers, others laud FG’s revised 2015 rice import quota

by ABOLAJI ADEBAYO on May 15, 2015 Posted under: Agriculture, Business

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Daily Global Rice E-Newsletter by Riceplus Magazine

Farmers working in a rice farm.

With the new quota on rice importation just released by the Federal Government, local producers are once again optimistic about the local capacity to meet market needs. ABOLAJI ADEBAYO reports.Following the just revised rice import allocation for 2015, local rice farmers and stakeholders have given kudos to the government, believing that the policy would increase local production.Their hope of better deal in local rice production was raised by the latest policy measure, with the assurance that sure that the policy would increase their production capacity.

The ,Minister of Agriculture, Dr Akinwumi Adesina, announced the downward review of the rice import allocations for 2015 by 200,000 metric tons (MT) to 1.3 million MT from the 1.5MT in 2014. The difference is to be supplied by 22 approved companies.According to a letter from the Minister to the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, one million MT of this quota had been set aside as allocations to existing rice millers, importers and new investors with approved Domestic Rice Production Plans, DRPP, at a preferential levy of 20 per cent and duty of 10 per cent. ―This year’s supply gap is 200,000 MT lower than 2014, as rice importers with no DRPP will account for the remaining 0.3 million MT at the higher levy of 60 per cent and duty of 10 per cent,‖ the letter confirmed.In 2014, rice importers and new investors were required to post a Domestic Rice Production Performance Bond from a qualifying bank to clearly demonstrate their commitment to domestic investment plans in rice production and processing. Under this year’s import quota, the Federal Ministry of Agriculture and Rural Development identified 22

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Daily Global Rice E-Newsletter by Riceplus Magazine companies that will receive quota allocations for 2015 out of the number that was approved last year.

In the letter titled ―Approved List of Companies Allocated Rice Import quota for April 2015March 2016 period‖, it was stated that certain criteria informed the trimming down of the number of companies from last year’s figure to what obtained this year.The letter read in part: ―In line with the Federal Government’s policy (―the Policy‖) to ensure selfsufficiency in rice by 2014, domestic rice production and milling operations continue to rise, which has resulted in a reduction in rice requirements of the country.―As was the practice in 2014 and in line with the Policy, the allocation of import quotas continues to be made along the explicit criteria set for encouraging domestic production and domestic milling of rice, to lead to self-sufficiency. These criteria are based on the extent of existing domestic milling capacity as well as along four (4) specific items that assess each company’s ongoing investment outlay into domestic rice production and milling.

Government listed the factors as including, the Domestic Rice Production Plan, DRPP,: demonstrate evidence of current or planned investment in domestic rice production over a threeyear period, size of investment, proof of land acquisition and establishment of rice fields and paddy production, paddy purchase outlook from Paddy Aggregation Centers, PAC,: demonstrate a clear plan of purchase of paddy from PACs, should include location of PACs, volumes of paddy to be purchased among others.‖Speaking to National Mirror, the Chairman, Rice Processors Association of Nigeria, Mohammed Abubakar said Nigeria has the capacity to process 800,000 tons, but it could not due to some inaccuracies in the policy.According to Abubakar, Nigeria consumes over five million tons of rice annually.―People should take advantage of locally produced rice because if you buy one bag of local rice, you are helping the farmers.

If we mill one bag, the bulk of money goes directly to the farmers. That is why the President has vowed to support local farmers throughout the country‖.The President, Nigeria Rice Investors Group, Mr. Tunji Owoeye, stated that although there were challenges in the rice sector, businesses in the industry have been doing better than before and would continue to be better with the new quota allocation.The Olupo of Oluponna, Iwo, Osun State, His Royal Highness, Oba Emmanuel Oyeleso Oyebamiji, who said he had been keeping his about 100 tons of paddy rice in store due to uncertainty of sustainability of existing policy as a result of instability in the country’s politics, expressed his optimism about the prosoects for better rice revolution with the new quota policy.He said if the current policy could be sustained, he was sure that the country would be better in term of rice production by 2017.

Meanwhile, government made it clear that companies that failed to present the Federal Ministry of Agriculture and Rural Development with a Bond have not been given quotas for the full year April 2015 to March 2016. Consequently, import quota allocations to 22 approved companies with a total allocation of 961,000 MT were issued.Already, the Ministry has sent letters to all the www.ricepluss.com R&D Section: Riceplus Magazine

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Daily Global Rice E-Newsletter by Riceplus Magazine 22 approved companies and copied Dr. Okonjo-Iweala as well as the Comptroller-General of Nigeria Customs Service.The letter informed the companies of their approved quotas, which qualified for 10 per cent duty or 20 per cent levy as the case might be.The Comptroller General of Customs was mandated to facilitate enforcement of the approved allocations. http://nationalmirroronline.net/new/rice-farmers-others-laud-fgs-revised-2015-rice-import-quota/

The rice we eat M Abdul Latif Mondal

The government should not play hide and seek over rice imports. If the domestic production of rice falls short of national requirement, there is nothing wrong in going for imports

While the government is claiming self-sufficiency in rice production, rise in rice imports hit a four-year high this fiscal year. A visit to the website of the Food Ministry shows that the total quantity of rice imported till April of the current fiscal year stands at more than 1.3 million tonnes, the highest since the fiscal year 2010-11. The government publications show that in fiscal 2010-11, the total quantity of rice imported by the government and private sectors stood at 1.5

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Daily Global Rice E-Newsletter by Riceplus Magazine million tonnes. In 2011-12 and 2012-13, it came down to 0.51 million tonnes and 27 thousand tonnes respectively. In 2013-14, rice imports stood at 3.75 tonnes.

The media reports say that our traders are importing Indian rice because of the price difference between the Indian and Bangladeshi rice. The Indian variety is cheaper by 20% or so than local rice. The increased imports have put Bangladeshi rice-millers in a tight spot as the demand for locally grown coarse and medium quality rice has come down. Consequently, the price of paddy has dropped, causing loss of income to farmers.Is the price difference between the Indian and Bangladeshi rice the only cause for rice imports by our private sector? It is true that our rice production has trebled since independence.

But it is also equally true that in recent years the annual growth rate in rice production has failed to keep face with the annual population growth rate in the country.According to Bangladesh Economic Review-2014, the growth rate of crop sub-sector (rice, wheat, vegetables) of broad agriculture sector (crop, livestock and fishery, and forests) in fiscal years 2012-13 and 2013-14 stood at only 0.59% and 1.91% respectively.This heavily influenced the rice production growth rate. In fiscal years 2011-12, 2012-13 and 2013-14, growth rate of rice production stood at 1.03%, 0.00% and 1.33% respectively. This means that the average annual rice production growth rate (0.78%) in these three years was lower than the annual population growth rate (1.37%). The government has been playing hide and seek over rice imports for the last one year or so. In the last week of June 2014, Food Minister Md Qamrul Islam said: ―India usually releases its low-quality stock every three years at low prices and our private sector imports them as cattle feed. ‖The importers immediately rebuffed the minister’s claim, and said that they had imported rice for human consumption and not for cattle feed. They also claimed that there was a shortage in supply of rice in the market. As a result, the food minister had to subsequently say: ―We need 30 to 40 million tonnes of rice a year. In comparison with [our] requirement, a small quantity of rice is imported from India.‖Dhaka Tribune reported that Prime Minister Sheikh Hasina opposed a proposal for imposing additional duty on rice import from India. She said: ―The government would not bother its losses once the poor people get the Indian rice at a cheaper rate.‖The PM is right if we take into account the continuous rise in rice price in the last five years or so. Coarse rice was selling at Tk20-22 per kg in the open market in mid-2009. The website of the Food Ministry shows that coarse rice was selling at Tk31-33 per kg in retail markets in the capital on April 29 this year.But the media reports suggest higher prices of coarse and medium quality rice in open markets.

This means a 50% or more rise in rice price in the past five years, thereby, causing suffering to the poor and vulnerable. The food ministry has, however, recently asked the National Board of Revenue to impose additional duty on rice imports.It may be noted that while the price of paddy has reportedly dropped to a three-year low -- almost the same as the price of 2012, the price of rice has not fallen to that extent. A syndication of the rice-millers and their allied traders is adding to the woes of the farmers during the peak harvesting period. This has also happened before.

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Daily Global Rice E-Newsletter by Riceplus Magazine The syndication wants to buy paddy from the farmers at the lowest price possible, and sell the rice they get from paddy at the highest possible price. Rice procurement policy of the government helps implement their nefarious design.For instance, the government has decided to procure 1 million tonnes of boro rice this year from the rice-millers and 0.1 million tonnes of boro paddy from the farmers.

This has been the policy for many years. Experience from the past ten years or so shows that even the small quantity of paddy is not fully procured from the farmers.The marginal and small farmers sell paddy and not rice immediately after the start of the harvesting season to repay their loans and meet the family needs. In the absence of government policy to procure large quantity of paddy directly from the farmers, they have to depend on the mercy of the millers and traders to sell their produce. The government should not play hide and seek over rice imports. If the domestic production of rice falls short of national requirement, there is nothing wrong in going for imports. After all, ensuring sufficient supply of rice, the staple food of the people of the country, is the responsibility of the government.

http://www.dhakatribune.com/op-ed/2015/may/15/rice-we-eat#sthash.1uAFH2EP.dpuf

Olam raises stake on local rice production, job creation

By Femi Adekoya on May 15, 2015

AS Nigeria continues to chart its rice self sufficiency plan, Olam Nigeria Limited, under its integrated rice farming project has unveiled plans to increase its stake in the rice industry as part efforts to aid the realisation of the self sufficiency target and job creation efforts of government.Indeed, the company noted that plans are underway to increase the milling capacity of 200,000 metric tonnes of paddy rice in Doma Council, in Nassarawa, by June 1, 2015.According to the firm, its backward integration plan in the sector is expected to aid local rice production and job creation.

It could be recalled that the firm had earlier this year unveiled its locally produced rice to the Nigerian market.Olam’s Business Head for Rice, Anil Nair had explained that the launch was designed to meet growing local demands for the commodity as well as reduce its importation.

He explained that the launch of the commodity in Lagos was strategic since the state holds the largest market of consumers of rice.He said, ―There are lots of paddy been produced and Lagos being the biggest market in the country is having local rice coming to it. It is a sign of good www.ricepluss.com R&D Section: Riceplus Magazine

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Daily Global Rice E-Newsletter by Riceplus Magazine things to come and we hope that two years from now, we will be able to bridge the gap. We have a milling capacity of about 800,000 tonnes in the country and we hope to help this country eliminate import completely.

On placing a total ban on the commodity, the company noted that the move should be a gradual process, saying ―Before you ban rice or any agricultural commodity you must have to develop the local strength of rice production. If you plan the ban of importation of rice, companies like Olam is into commercial production of rice with 6,000 hectares in two cities, making it 12,000 hectares that would definitely help bridge the demand and supply gap, and with support from other companies, in addition to the role government is playing.―In few years time, we would be able to bridge the demand and supply gap and we would be able to be self sufficient in rice production. ‖The community leader of a settlement in the Doma area, Kushunta Adi, said, ―Before the coming of Olam to our community, most people in this area were idle, which is not good, but today, the story is different. In fact, at that initial time, most of excavators on the project were foreigners, but today, the company has employed many of our youths and this is helping many families here‖.―In fact, what they have done here is enormous. I believe if the Federal Government can copy them, the country would be better. If we have one or two other companies like this in Nigeria, it will be difficult for us as a country to import rice‖, he added.A former Attorney General of the Federation and Secretary of the rice farmers’ association, Michael K. Aondoakaa, in his position urged government to urgently protect the local rice industry from being thrown out of the agriculture sector.

Aondoakaa, at the House of reps hearing, stated worries that corrupt actions by some rice importers could destroy government’s policy and truncate the local rice sub-sector.He disclosed that a certain company behaves like another government and has resorted to dubious activities in apparent bid to frustrate the local rice manufacturers.He called on all and sundry to stop this untoward activities in the best interest of Nigeria, especially local farmers and others. http://www.ngrguardiannews.com/2015/05/olam-raises-stake-on-local-rice-production-job-creation/

Philippines may boost rice imports as production falls Friday, 15 May 2015 10:41 Posted by Parvez Jabri

MANILA: The Philippines is set to consider importing more rice after revising down its estimate of first-half domestic production and faced with further dry weather from expected El Nino conditions later in the year.The Philippines is one of the world's biggest rice importers and additional purchases could help support rice export prices in Asia, which have fallen amid weak demand.Domestic production of unmilled rice is expected at 8.27 million tonnes in the first half, the Philippine Statistics Authority (PSA) said on Friday, below its initial estimate of 8.55 million tonnes after www.ricepluss.com R&D Section: Riceplus Magazine

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Daily Global Rice E-Newsletter by Riceplus Magazine dry weather hit first-quarter output.

A government panel that approves rice imports, is scheduled to convene as soon as next week to discuss the need for additional rice purchases by state grains agency the National Food Authority (NFA), government sources said.The Philippines recently bought 500,000 tonnes of rice in a government-to-government deal between the NFA and key suppliers Vietnam and Thailand.First quarter rice output of 4.37 million tonnes was up slightly on a year ago, but below a forecast of 4.47 million tonnes, while second quarter output is forecast to drop 4.2 percent to 3.9 million tonnes, the PSA said in a report.

More than half of the Philippines provinces are suffering a dry spell, the Department of Agriculture said this month.Provinces in the south had so far been the hardest hit, the PSA said, with planting delayed in South Cotabato and Sultan Kudarat due to temporary closure of some irrigation facilities."In Northern Mindanao, the on-going rehabilitation of irrigation canals and dry spell may reduce plantings in irrigated and rainfed areas, respectively," it said.Insufficient water supply and "intense heat" affecting northern provinces had also led to cutbacks in the harvest area.The El Nino phenomenon, a warming of sea-surface temperatures in the Pacific, can lead to scorching weather across Asia and east Africa and is almost certain to last through the Northern Hemisphere summer, the US weather forecaster said.On Thursday, the Philippine central bank nudged up its inflation view due to several factors, including the possible impact of El Nino on food prices. http://www.brecorder.com/markets/commodities/asia/242313-philippines-may-boost-rice-imports-asproduction-falls.html

APEDA India News International Benchmark Price Price on: 14-05-2015

Product

Benchmark Indicators Name

Price

1

Chinese first grade granules, CFR NW Europe (USD/t)

2100

2

Chinese Grade A dehydrated flakes, CFR NW Europe (USD/t)

2000

3

Chinese powdered, CFR NW Europe (USD/t)

1800

Garlic

Ginger

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Daily Global Rice E-Newsletter by Riceplus Magazine 1

Chinese sliced, CIF NW Europe (USD/t)

4600

2

Chinese whole, CIF NW Europe (USD/t)

5100

3

Indian Cochin, CIF NW Europe (USD/t)

3000

1

Indian 100 mesh 3500 cps, FOB Kandla (USD/t)

4880

2

Indian 200 mesh 3500 cps basis, FOB Kandla (USD/t)

2300

3

Indian 200 mesh 5000 cps, FOB Kandla (USD/t)

3400

Guar Gum Powder

Source:agra-net

For more info

Market Watch Commodity-wise, Market-wise Daily Price on 14-05-2015 Domestic Prices Product

Unit Price : Rs per Qty

Market Center

Variety

Min Price

Max Price

1

Bargarh (Orissa)

Other

2100

2300

2

Dhing (Assam)

Other

2200

2800

3

Aroor (Kerala)

Other

3100

3300

1

Amirgadh (Gujarat)

Other

1250

1830

2

Zira (Punjab )

Other

1450

1450

3

Gumla(Jharkhand)

Other

1100

2000

1

Solan (Himachal Pradesh)

Other

4000

4500

2

Sitapur(Uttar Pradesh)

Other

2300

2500

3

Haldwani(Uttrakhand)

Other

2500

4000

Rice

Wheat

Orange

Brinjal

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Daily Global Rice E-Newsletter by Riceplus Magazine 1

Kharupetia (Assam)

Other

1200

1500

2

Aroor (Kerala)

Other

2600

2800

3

Banki(Orissa)

Other

2000

2400

Source:agra-net

For more info

Egg

Rs per 100 No Price on 14-05-2015 Product

Market Center

Price

1

Ahmedabad

280

2

Nagapur

260

3

Namakkal

311

Source: e2necc.com

Other International Prices

Unit Price : US$ per package Price on 14-05-2015

Product

Market Center

Origin

Variety

Low

Potatoes

Package: 50 lb cartons

1

Atlanta

2

Baltimore

3

Chicago

Colorado

Russet

23.50

23.50

Canada

Russet

20

21

Idaho

Russet

13.50

16

Cucumbers

Package: cartons film wrapped

1

Atlanta

2

Baltimore

3

Chicago

Mexico

Long Seedless

29.25

29.25

Spain

Long Seedless

26

26

Canada

Long Seedless

11

11

Grapefruit 1

High

Package: 7/10 bushel cartons Atlanta

www.ricepluss.com R&D Section: Riceplus Magazine

California

Red

Page 10

19

21

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Daily Global Rice E-Newsletter by Riceplus Magazine 2

Baltimore

3

Dallas

California

Red

20

20

Washington

Red

24

24

Source:USDA

South Korean Researchers Visit USA Rice

USA Rice's Jim Guinn (l.)meets with Korean research team. ARLINGTON, VA -Representatives from KREI, South Korea's equivalent to our own government's Economic Research Service (ERS), stopped by USA Rice offices yesterday to discuss future trends in American rice markets. South Korea recently underwent tariffication, and is being challenged at the World Trade Organization by the U.S. and four other countries on its 513 percent out-ofquota duty. While the policy and challenges to it were not discussed in the meeting, both sides acknowledged the mounting political sensitivity of rice trade in Korea.Korea remains a high value market for U.S. rice, importing over 20,000 MT in the first three months of 2015. USA Rice also conducts several successful promotion campaigns to raise awareness for U.S. rice in Korea and most recently exhibited at the annual Seoul Food and Hotel Show.

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Daily Global Rice E-Newsletter by Riceplus Magazine Contact: Kristen Dayton (703) 236-1464

Mexico Heralds Return of USA Rice's "Paella Wednesday" Promo MEXICO CITY, MEXICO -- USA Rice's wildly successful "Paella Wednesday" program is back. This year's promotion, which runs from May through December, is being conducted at Sanborns, a major department store chain with more than 100 restaurants in Mexico City and the Metropolitan area frequented by approximately one million customers each month. During the promotion, each Sanborns restaurant will display a full-color poster and tabletop tents to remind consumers that Wednesday is Paella Day and that the delicious paellas will be prepared with U.S.-grown rice, as will dessert options.Sanborns' flagship restaurant is a major Mexico City tourist attraction and a national monument, the 16th century House of Tiles, or "Casa de los Azulejos."Sanborns also sells books and magazines, including USA Rice's most recent cookbook,Traditional Mexican Recipes with Rice. The 40 delicious recipes in the new cookbook are favorites in the Mexican culture and are either customarily served with rice, or give common dishes a contemporary twist by incorporating rice. "Each year, Sanborns purchases more than 30,000 pounds of U.S. rice from IPACPA and Schettino, the largest millers/packers in Mexico," said Gaby Carbajal, USA Rice's representative in Mexico. "Through our promotions at these popular stores we aim to increase consumers' purchases of rice dishes and expose them to the great flavor of U.S. rice."

Contact: Sarah Moran (703) 236-1457

CME Group/Closing Rough Rice Futures CME Group (Prelim): Closing Rough Rice Futures for May 15

Month

Price

Net Change

July 2015

$9.575

- $0.060

September 2015

$9.845

- $0.045

November 2015

$10.095

- $0.040

January 2016

$10.355

- $0.025

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March 2016

$10.420

- $0.025

May 2016

$10.420

- $0.025

July 2016

$10.420

- $0.025

Master These 6 Recipes And Call Yourself A Rice Pro MAY 12, 2015 4:00 PM EDT

ELETTRA WIEDEMANN ,ZOE BAIN

We love rice...from our local takeout place. Whenever we try to make it at home, it's either totally burnt, waterlogged, or, for lack of a better word, coagulated. Luckily, Foodiversity: Rice 101 is here to help. Ahead, we'll explain how to cook perfect rice every time (without any complicated measurements), and provide five easy recipes ranging from comfort food staples to takeout favorites to delicious desserts.

Level I: Never Mess Up Rice Again With This Simple Trick PHOTOGRAPHED BY ERIC HELGAS; FOOD STYLED BY ALI NARDI. Okay, so here’s the deal: We like to cook rice just like pasta. That’s right, no measuring or two parts this to one part that — just fill up a pot with water, bring the water to a boil, throw in the rice, cook it until it’s al dente, and strain. The difference with rice is this: Once you strain it, immediately throw it back in the pot, cover it, and leave it totally alone for about five to 10 minutes to let it steam (this will ensure your rice is fluffy). Before serving, turn the rice from bottom to top and mix lightly to avoid clumping. Rice experts may roll their eyes, but we promise, this easy execution totally works! It's best with long-grain rice varietals (white, jasmine, basmati, brown, and black rice); if you have sushi or risotto rice, that’s a whole other chestnut, and it’s best to follow package instructions. http://www.refinery29.com/easy-ricerecipe?utm_source=USA+Rice+Daily%2C+May+15%2C+2015&utm_campaign=Friday%2C+ December+13%2C+2013&utm_medium=email

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U.S. ‘playing by the rules,’ paying price for unfair competition in rice International Trade Commission study points out trade pitfalls May 15, 2015Forrest Laws | Delta Farm Press

―We appreciate the leadership of Chairman Camp and Congressman Boustany on bringing these important issues to light on behalf of America’s rice farmers,‖ said Dow Brantley, an Arkansas rice farmer and chairman of the USA Rice Federation who participated in the ITC study. ―We've said all along that we can compete globally and are willing to compete, but if the system is rigged against us, it makes it quite difficult.‖ The U.S. rice industry is following international trade rules, but its competitors are not, and U.S. rice farmers are paying the price.The U.S. International Trade Commission completed a study Thursday (May 14) that indicates foreign governments often engage in unfair trade practices that distort rice prices and make it more difficult for U.S. shippers to compete in world markets.―The global rice market is characterized by significant government intervention in both imports and exports,‖ the ITC report said. ―This has affected trade and price trends in the world rice market more than it has for most other agricultural products.‖U.S. long grain rice prices have dropped nearly $2 per bushel in recent months due to increased world rice supplies and subsidized exports by competing countries, according to U.S. farmer-owned rice cooperatives and the USDA’s World Agricultural Outlook Board Supply and Demand Estimates.

The report ―Rice: Global competitiveness of the U.S. industry,‖ stems from a Section 332 investigation requested by members of Congress. It examined the rice industry in the U.S. and in major producing and exporting countries, including China, India, Thailand, Vietnam, Uruguay and Brazil and found the world rice market is a confusing and often unfair place.The study looked at the impact on the U.S. rice industry of exports from competitor countries to the U.S. and traditional U.S. markets like Mexico, Haiti, and West Africa, and found that although the U.S. rice is high quality and enjoys favorable tariff treatment from markets such as Mexico and Central America, competition is on the rise. ―Consumption support has the largest effect on the global rice market,‖ the report said. ―Had such support not been in place in 2013, global paddy production and rice consumption would have been 6.1 million metric tons lower. Another factor shaping rice production in non-U.S. countries is government support for inputs such as seed, fertilizer, and fuel.‖"The study provides detailed evidence that the U.S. rice industry is playing by the rules, but is at a decided

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Daily Global Rice E-Newsletter by Riceplus Magazine disadvantage from some of our trading partners who do not," said Betsy Ward, president and CEO of USA Rice. "The report points out that support for U.S. farmers continues to decline, while in places like China, Thailand, and India, those supports are going in the opposite direction."The yearlong study is the result of collaboration between USA Rice and Congressman Charles Boustany, R-La., a member of the House Ways and Means Committee and the committee’s Chairman, Congressman Dave Camp, R-Mich. ―We appreciate the leadership of Chairman Camp and Congressman Boustany on bringing these important issues to light on behalf of America’s rice farmers,‖ said Dow Brantley, an Arkansas rice farmer and chairman of the USA Rice Federation who participated in the ITC study. ―We've said all along that we can compete globally and are willing to compete, but if the system is rigged against us, it makes it quite difficult.‖The U.S. rice industry will use the study to advocate for change in foreign government policies that negatively impact the industry's competitiveness, said Ward.

To read the ITC report, visit http://www.usitc.gov/publications/332/pub4530.pdf http://deltafarmpress.com/rice/us-playing-rules-paying-price-unfair-competitionrice?utm_source=USA+Rice+Daily%2C+May+15%2C+2015&utm_campaign=Friday%2C+December+1 3%2C+2013&utm_medium=email

How to manage rice with herbicide drift May 14, 2015Bob Scott, University of Arkansas | Delta Farm Press

Herbicide drift is bad this year, and it can be very difficult to decide what to do to manage a rice field that Newpath or Roundup has drifted onto.

Herbicides drift is bad this year. Roundup drift on wheat has shown up in almost every field I have been in. It is not a matter of ―is there drift‖ but of ―how bad is it?‖

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Daily Global Rice E-Newsletter by Riceplus Magazine

Acreage of sorghum — another non-

Roundup-tolerant crop — is up in Arkansas. And, we have more nonGMO corn, and soybeans and, it seems, less Clearfield rice, making these crops targets for drift.In the case of Roundup on corn, milo and rice, it is important to understand how very sensitive these crops are, especially in the 1-leaf to 2-leaf stage. Drift can pass over ditches and through trees and not leave much of a trace and then hammer a field of 1-leaf to 2-leaf rice.Although it leaves more of a trace, Newpath is equally harmful to small non-Clearfield rice.It can be very difficult to decide what to do to manage a rice field that Newpath or Roundup has drifted onto. Basically, there is nothing you can do except wait on the rice to recover. Especially on really small rice: it will either die or it won’t. If it does not die, it will take it a while to recover.

If the decision is made to keep the rice and it is Roundup drift, I suggest a flush when needed. With Newpath drift I would rather let the field dry up for a while. Depending on the rate of drift, the Newpath could be reactivated by a flush.It can be hard to tell Newpath drift from Roundup drift, but lately this has been

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Daily Global Rice E-Newsletter by Riceplus Magazine made much easier because almost all conventional rice has at least a plant or two that is Clearfield as a contaminant in the seed. So when Newpath drifts on the field, these contaminants are not injured, while a Roundup drift affects all the plants.Eric Webster and Justin Hensley out of LSU have a great publication on the differences and effects of Roundup, Newpath and other herbicides on rice.A lot of folks like to flush in some ammonium sulfate to speed the recovery of rice from herbicide drift. I was one of them for years. However, our research results have shown this to be ineffective, especially on younger rice that just does not have a root system extensive enough to take up nitrogen that early. On older rice we did observe a ―green up‖ when fertilizer was applied to injured rice, but we saw no difference in yields by the end of the year.

It is hard to say whether or not early season drift of Roundup or Newpath will hurt yields. It depends on the year. I have seen everything from no effect to almost total yield loss. More often than not, the highest costs are in time, extra management, delayed flood and worry.We have shown that a good seed insecticide treatment like CruiserMax or NipSit can help younger rice withstand a drift event and recover faster. This summer we are looking at some post-applied fertilizers and nutrients in combination with seed treatments to see if we can come up with even better recommendations. With another type of herbicide-tolerant rice on the way (Provisia) that will not tolerant Newpath, I do not see this problem going away any time soon.

Remember to utilize our flag the technology program and FTT Cloud to identify fields and help avoid drift. http://deltafarmpress.com/rice/how-manage-rice-herbicidedrift?utm_source=USA+Rice+Daily%2C+May+15%2C+2015&utm_campaign=Friday%2C+December+13%2C+2013&utm_me dium=email

India’s rural distress set to worsen The ministry of agriculture projected that foodgrain production of cereal and pulses was likely to decline by 5.3% in 2014-15 New Delhi: There seems to be no end rural India’s worries.Last year’s drought together with unseasonal weather earlier this year is threatening a substantial decline in foodgrain output—the first in five years of such magnitude.On Wednesday, the ministry of agriculture projected that foodgrain production—at 251 million tonnes (mt) of cereal and pulses was likely to decline by 5.3% in 2014-15.A deficit monsoon in 2014 that affected production of Kharif crops and unseasonal showers in March and April that damaged the winter (Rabi) crop just ahead of

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Daily Global Rice E-Newsletter by Riceplus Magazine harvest is expected to cause a dip in production of rice, wheat, coarse cereals and pulses, the farm ministry said.

Worryingly, the adverse weather events of 2014-15 are set to have an impact on the growth rate of the agriculture sector. In February this year the Central Statistics Office (CSO) estimated that agriculture is likely to grow at a rate of 1.1%, down from previous year’s growth rate of 3.7%.But this was before unseasonal showers damaged crops in 19 million hectares, nearly a third of the winter crop area, spread across 15 states.―The February growth forecast did not factor in the loss to the winter crop due to unseasonal rains. Growth rate of agriculture sector will definitely be below 1% and likely to be between 0.6% to 0.8%,‖ said Ramesh Chand, director of the National Institute of Agricultural Economics and Policy Research, Delhi, and a member of the newly constituted national task force on agriculture under Niti Aayog.A closer scrutiny of adverse weather years in the past 15 years suggests that CSO’s projection of agricultural growth may be optimistic.In 2002-03, a severe drought year, foodgrain production dipped by nearly 18% and agriculture sector (including forestry and fishing) registered a negative growth rate of 6.6%. In 2004-05, also a drought year, production of foodgrains dipped by 7% and agriculture registered a near zero growth rate at 0.2%.

The impact of the last drought year in 2009-10 was similar: production of foodgrains declined by 7% and the agriculture sector grew at 0.8%.However, a 5% dip in production may not be cause for worry about food availability as India has ample stocks, over 51 mt of rice and wheat (as on 1 www.ricepluss.com R&D Section: Riceplus Magazine

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Daily Global Rice E-Newsletter by Riceplus Magazine May). But for farmers who spend more to save the Kharif crop from a drought and suffered crop loss due to unseasonal rains, the weather events have severely stressed farm incomes.More so, as prices of key crops like rice, wheat and cotton were lower this year. Prices of cash crops like basmati rice and potatoes too crashed, impacting farm incomes.A series published recently in Mint, Fractured Farms, revealed that farming in the country had undergone a structural shift with farmers increasingly opting for commercial crops. However, there was no corresponding growth in institutional support to underwrite the new class of risks they have been exposed to.

A deficit monsoon in 2014 that affected production of Kharif crops and unseasonal showers in March and April that damaged the winter (Rabi) crop just ahead of harvest is expected to cause a dip in production of rice, wheat, coarse cereals and pulses. Photo: HT

One year of Narendra Modi govt: Not a good year for the farmer Big-ticket items in the agri-food space—food and fertiliser subsidies—have largely remained untouched By: Ashok Gulati | May 15, 2015 12:59 pm

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Daily Global Rice E-Newsletter by Riceplus Magazine

One year of Narendra Modi govt: Erratic rainfall during Kharif and Rabi, and lower price realisations, hit farmers hard. Although the Narendra Modi sarkar raised the compensation for farmers by 50% in one go, it is far from being sufficient to take care of farmers’ interests.

(Illustration: Rohnit Phore) WHEN the Narendra Modi sarkar took over the reins in Delhi in May 2014, the biggest challenge in the agri-food space was to tame food inflation, which was hovering in double digits.

Prices of food articles were up by 9.5% in May 2014 over May 2013; potato prices were up 31% and onion prices were showing surging signs in most major consuming centres. On top of this, monsoon rains were erratic in June-July 2014, and finally ended up at 12% below the Long Period Average (LPA).

The government realised that this could be a party spoiler, and so it had to act fast, literally hit the ground running. This was Modi sarkar’s first litmus test.A slew of measures were announced by the government to contain the damage from surging food inflation. It not only restricted exports of onions but also imported onions and dumped them in major onion markets at prices below import cost. It also used the stick and raided many onion traders/hoarders. The message was clear that the government will not be a passive spectator but will move fast. In July, it took a

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Daily Global Rice E-Newsletter by Riceplus Magazine major decision to liquidate 15 million tonnes of foodgrain stocks, and in September the APMC was changed in Delhi to allow trading of fruits and vegetables outside the Azadpur mandi.

As this fire-fighting to contain food inflation was going on, good luck seemed to descend on the Modi sarkar in the form of tumbling global commodity prices—from crude oil to corn to cotton, all started slipping down. This came in very handy to finally bring down food inflation within reasonably comfortable range, and in April 2015 the consumer food price index increased by only 5.1% over April 2014. How much it was due to domestic policies of the government and how much it was due to global price slide, will remain an issue for discussion and debate. But the fact remains that, in May 2015, food inflation is not as burning an issue as it was in May 2014.The flip-side of this scenario was the impact on farmers.

Although government did not declare 2014 as a drought year—presumably to allay the fears of food inflation—practically with 12% below normal rainfall, it was a drought.Falling global prices of agri-commodities led to a slowdown in exports of several commodities, notably cotton.Domestic prices started crashing and it goes to the credit of the government that it put the Cotton Corporation of India (CCI) into action, which procured more than 9 million bales at minimum support prices and gave a breather to cotton farmers. This was a timely action, and without CCI’s proactive role there could have been a spate of farmer suicides in the cotton belt.

That disaster was averted. But farmers’ price realisation in most agri-commodities declined significantly—by 15-25%—whether it was basmati rice or cotton or corn, and so on.So, for the farmer, it was not a good year. Farmers suffered a drought in kharif and unseasonal rains in March-April 2015 hit the crops badly, which otherwise could have been a bumper rabi.

This double whammy of poor and erratic rainfall during kharif and rabi, and lower price realisations, has hit farmers hard. Although the Modi sarkar has raised the compensation for farmers by 50% in one go, and also lowered the trigger point for compensation from minimum 50% damage to one-third damage, yet it is far from being sufficient to take care of farmers’ interests.Moreover, our procedures of assessing damages and compensating farmers are so slow and often corrupt that farmers remain at the receiving end. Creating a more robust crop insurance system with the help of modern technology that uses satellites, drones, enhanced and upgraded all-weather stations and rainfall loggers, digitisation of farmers plots, and dovetailing these with Jan-Dhan accounts and Aadhaar’s UID, remains a challenge for the Modi sarkar.

Overall, while consumers have heaved a sigh of relief from high food inflation, farmers have come under distress due to nature’s fury and falling global prices. The overall agri-GDP in FY15 may fall flat.The big-ticket items in the agri-food space have not been touched much in the first year of the Modi sarkar. These are food and fertiliser subsidies. Of the budgetary allocations to five key ministries (agriculture, food, fertilisers, water resources and food processing) which impact agri-food outcomes, more than 85% of resources go as subsidies on food and fertiliser.

The PDS suffers from large leakages (over 40%) and fertilisers are being smuggled and used for non-agriculture purposes due to low pricing of urea. Massive inefficiencies continue to dog the food management system, from excessively high stocks to high costs of operation of the Food Corporation of India (FCI). The PM set up a high-level committee under Shanta Kumar—the former Union minister for food—to look into the functioning of FCI and streamline the food

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Daily Global Rice E-Newsletter by Riceplus Magazine management system. While the panel has submitted its report, it has yet to see any solid action by the government.

Even the PM’s directive to liquidate 15 million tonnes of grains in 2014-15 has not been implemented in its true sense; actual open market sales by FCI have been less than one-fourth of this amount.This is the unfinished agenda, along with streamlining fertiliser subsidy and raising investments in water management, which should be on high priority in FY16, else Indian farmers will remain under stress and Indian agriculture will keep limping.

The author is Infosys Chair Professor for Agriculture, ICRIER

Amira Nature Foods : to Take Part in National Restaurant Association Show 2015 05/15/2015 | 02:21am US/Eastern

Amira Nature Foods will participate in the National Restaurant Association Show 2015 on May 16-19 in Chicago, Illinois.Amira will showcase their new organic and natural dry rice range products at booth #10432 in the Organic and Natural Pavilion of the show held in McCormick Place. Amira will also have a variety of basmati rice dishes to sample, as well as cooking demonstrations by Chicago-based Chef Helge Pedersen.

"Amira is excited to participate in the NRA Show 2015 to introduce our new range of products to the foodservice industry," said Karan A Chanana, Chairman of Amira Nature Foods. "We are committed to expanding our distribution into North America, and the NRA show is an opportunity to connect with restaurant buyers and distributors from across North America."Amira is a global provider of branded packaged Indian specialty rice and other products, with sales in over 60 countries.

More information: www.amira.net ((Comments on this story may be sent to newsdesk@closeupmedia.com))

For Modi's year-old government, storm brewing in rural India Reuters | May 15, 2015, 11.44AM IST

Promising good governance and a stronger economy, Modi romped to power in elections last May by the biggest margin any prime minister has got in three decades.

KHANNA/KAMARGAON: Just one year after taking office, Prime Minister Narendra Modi is facing a challenge that could come to haunt him - the farm sector that sustains three-fifths of the population is in deep trouble, and he is being blamed for not doing enough.Promising good governance and a stronger economy,

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Daily Global Rice E-Newsletter by Riceplus Magazine Modi romped to power in elections last May by the biggest margin any prime minister has got in three decades. But the rural crisis has dented his popularity and the vanquished opposition is finding new vigour in his discomfort.

From the start of the crop season last October through March, India's farm exports have fallen more than 11 percent to $15 billion, as the impact of the global commodities glut has been sharpened by events like Iran's nuclear talks and a currency dip in Brazil.The fall in exports has depressed domestic farmgate prices just as unseasonal rain damaged winter crops such as wheat, potato, chickpea and rapeseed. Farmers have little money now to buy seeds for the summer sowing, and meteorologists have predicted the annual June-October monsoon will be below par, which means the next crop may also fail."A perception is gaining ground that the government is slow in responding to the crisis in the countryside," said D.H. Pai Panandiker, president of the RPG Foundation think-tank in New Delhi.

"Any inept handling of the situation will only invite trouble and impair the plans for economic reforms."Farming accounts for only 15 percent of India's $2 trillion economy but provides a livelihood to 60 percent of its 1.25 billion people. A crisis in the countryside would have severe political impact.The opposition Congress party, crushed by Modi a year ago, is latching on to rising discontent in the countryside.Party leader Rahul Gandhi has been touring the affected farming regions and the heir apparent to the Nehru-Gandhi political dynasty is getting a good response."While Modi has failed to help us, Rahul Gandhi was here to assuage our pain," said Paramdeep Singh, a wheat farmer at Khanna wholesale market in Punjab."His visit has forced the government to at least acknowledge the fact that we've suffered huge losses."

The fightback by the opposition has slowed Modi's reform agenda in parliament. This week, Congress delayed bills that would make it easier for corporations to buy land - changes it says are "anti-farmer" - and harmonise national and state taxes.

DRAW THE STING Finance minister Arun Jaitley said last week agriculture was the biggest challenge for India's economy and would need major investments.Meanwhile, Modi's government has asked state governments to tap into more than $1 billion from the State Disaster Response Fund and raised compensation by 50 percent for farmers suffering crop losses.In an attempt to draw the sting of falling exports and prices, the government has also eased quality requirements for wheat purchases by state agencies, raised import taxes on rubber and sugar, and given an incentive for raw sugar exports.To some farmers, the response is too little, too late.

"When you lose 10,000 rupees ($156), they offer you 100 rupees. So far we haven't got any assistance," said Manik Andhale, a farmer from Kamargaon village in Maharashtra state, whose onion crop suffered rain damage.To be sure, some of the events that have led to the crisis are beyond the government's control.Until last year, for example, Iran paid a premium for Indian sugar, soymeal, barley and basmati rice. Now, with the easing of some Western sanctions, Iran is looking to buy elsewhere.Cotton exports have been hit by China's decision to abandon a stockpiling plan, while nonbasmati rice shipments face headwinds after Thailand decided to run down its stockpiles.

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Daily Global Rice E-Newsletter by Riceplus Magazine On the other side of the world, a decline in the Brazilian real following a scandal at oil giant Petrobras last year has weighed on sugar prices, making Indian exports uncompetitive.Meanwhile, the fall in global crude oil prices has depressed prices of grains and oilseeds used for biofuels. It also trimmed freight rates, making imports of commodities such as corn and soymeal from South America cheaper for Asian buyers.A strong rupee - despite a fall last week - has further made India's farm exports uncompetitive and imports cheaper.A major commodities trader has said the decline in agricultural exports could be as much as $5 billion, or nearly 20 percent, for the crop year to September, which would be the steepest on record.In the villages, farmers struggle to understand why they are earning less."How come prices of all crops are going down?" asked Anil Sathe, a farmer in Kamargaon who said he has had to start working as a part-time labourer to make ends meet.

100pc self-sufficiency in rice production by 2020 Published on: Friday, May 15, 2015

Alor Setar: The Agriculture and Agro-based Industry Ministry wants the country to achieve a 100 per cent self-sufficiency level (SSL) in padi production by 2020, its Minister Datuk Seri Ismail Sabri Yaakob said.Towards this end, he said, the Government would spend RM2.2 billion out of the total RM6 billion allocated to the Ministry this year to help padi farmers to increase their crop yield.He said various strategies and projects had been planned to achieve the target, including upgrading of the irrigation system in the Mada areas.He said this when opening the Muda Agricultural Development Authority (Mada) Farmers' Convention and launching of Mada Corporate Plan.

Ismail Sabri said the country imported about 900,000 metric tonne of rice every year and the amount did not include about one million tonnes which was smuggled into the country.In an effort to achieve the 100 per cent SSL, he said farmers had to increase their crop yield to seven tonnes per hectare from the current six tonnes per hectare.At the event, Ismail Sabri also witnessed the signing of Memorandum of Understanding (MoU) between Mada and Bayer Co (Malaysia) Sdn Bhd or use of the company's technology to increase padi yield in Mada areas.Meanwhile, in PADANG BESAR, the Perlis government has taken exclusive ownership of 'Harumanis', the famous mango of the State.The Intellectual Property Corporation of Malaysia (MyIPO) has awarded the State government the exclusive right, said Perlis Border Security and Agriculture Committee chairman Ahmad Bakri Datuk Ali.Efforts would be stepped up to increase production of the 'Harumanis' mango to meet rising demand, he told reporters after launching a mango rehabilitation project in Kampung Udoh Bilal near here.The project is being implemented by the Malaysian Agricultural Research and Development Institute (Mardi), which has been given a RM600,000 grant by the Agriculture and Agro-based Industry Ministry to help cultivators of the 'Harumanis' mango in Perlis.

Ahmad Bakri said he hoped that Mardi would undertake research to improve the quality of the mango and do bud grafting to expedite fruiting.He said the State government target to cultivate the mango on 1,000 hectares by the end of this year could be achieved because 987 hectares were under the crop now, though only 635 hectares were producing yield.On a complaint that the 'Harumanis' mango was sold for RM60 per kg in Permatang Pauh during the parliamentary bywww.ricepluss.com R&D Section: Riceplus Magazine

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Daily Global Rice E-Newsletter by Riceplus Magazine election recently, he said traders could not be stopped from setting the price so long as there was demand."The State government has set up a monitoring committee to curb cheating by passing off other mangoes as the Harumanis," he said.Ahmad Bakri advised the people to buy the fruit directly from the orchards or at stalls run by the Federal Agricultural Marketing Authority (Fama).Mardi Director-General Datuk Dr Sharif Haron said the agency was committed to coming up with the best Harumanis mango and educating farmers to engage in good agricultural practices. – Bernama http://www.dailyexpress.com.my/news.cfm?NewsID=99775

Philippines Q1 agricultural output up 1.78 pct Reuters Posted at 05/15/2015 11:16 AM

MANILA - The Philippines' agricultural output in the first quarter grew 1.78 percent from a year earlier, led by crops, livestock and poultry sectors, the statistics agency said on Friday.Crops production rose 1.65 percent, with paddy rice up 1.41 percent to 4.37 million tonnes, the Philippine Statistics Authority said in a statement issued ahead of the first quarter GDP data due later this month.The first quarter rice output was lower than a government forecast of 4.47 million tonnes. [ID:Livestock output grew 3.23 percent while poultry production rose 5.42 percent. Fisheries output shrank 2.57 percent. http://www.abs-cbnnews.com/business/05/15/15/philippines-q1-agricultural-output-178-pct

Rice Gets a Bath Amid California's Drought 19

MAY 15, 2015 12:26 PM EDT

By Justin Fox

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Daily Global Rice E-Newsletter by Riceplus Magazine As you read this, farmers in the Sacramento Valley are flooding hundreds of thousands of laserleveled acres under five inches of water as they prepare to plant the annual rice crop. After that comes my favorite part. From the California Rice Commission’s ―How Rice Grows‖ tutorial: Rice seed is then soaked and loaded into planes. Flying at 100 mph, planes plant the fields from the air. The heavy seeds sink into the furrows and begin to grow.

They will keep growing throughout the hot valley summer (temperatures regularly top 100 degrees Fahrenheit), in the midst of a historic drought. Harvest comes in September, after which the rice -- mostly medium-grain, much of it destined for sushi -- will be milled and then shipped to customers, about half of them outside the U.S.Even rice farmers get that there is something incongruous about this. ―It’s hard to believe we’re growing rice in this semi-arid place,‖ Mike De Wit told me last month as he surveyed one of his parched, as-yet-unplanted fields with the Sacramento skyline -- also incongruous -- looming in the distance. But it works. The soil in the counties north of Sacramento where rice growing is concentrated is a thick clay that holds water well. ―It’s basically a bathtub out there, and rice seems to thrive,‖ De Wit said. ―Tomatoes or corn, they need lighter soil. This area grew sugar beets, but the sugar-beet industry in Northern California really went away. People have tried wheat and other crops, but rice seems to be the best.‖The hot, dry summer weather also produces great rice, less likely to be hit by the diseases that plague wetter, more humid rice-growing states such as Arkansas and Louisiana.Still, you need a lot of water to grow it. Rice’s per-acre water needs, flooded fields and all, actually aren’t off the charts relative to other crops, but they are higher. Rice on average requires 5.1 feet of water applied per growing season, edging out alfalfa as the most water-intensive of major California crops.

Multiply that times the 550,000 acres planted in a normal year, and you get 2.8 million acre-feet of water, or about 6 percent of the state's total consumption. That overstates rice's take a bit, as some of the water is reused after it sloshes off the fields or soaks into the ground. But it's clear that growing rice simply wouldn’t work in California without a lot of water.Happily for the rice growers, most of them are clustered along the Sacramento River and its tributary, the Feather River, two of the state’s most bounteous sources of irrigation water. Unlike farmers in the San Joaquin Valley to the south who rely on contracts with state or federal water projects and will be getting little or no water this summer, many of the rice farmers possess rights to river water that predate these projects and were to some extent enhanced by them. Commercial rice farming in the Sacramento Valley dates back to 1912.

The feds completed Shasta Dam on the Sacramento River in 1945 and the state built the Oroville Dam on the Feather River in 1968 with the idea of sending extra water south. The Sacramento Valley rice farmers got protection from spring floods and a more reliable summer water supply.Rights holders in rice country still won’t be getting all the water they need this summer -depending on where they are and how senior their rights are, some will get 75 percent of normal, some will get 50 percent, some will get less than that and some will get none at all. The feds and the state determine how much water is available, and local water districts handle the delivery.

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Daily Global Rice E-Newsletter by Riceplus Magazine There’s no charge for the water itself, but landowners have to pay their share of their district’s expenses regardless of how much water they get.De Wit rents rice fields in several different locations, and the one where I visited him was in a less-favored district that won't be getting water this year. His field does, however, have a shallow aquifer under it that shows no signs of depletion, so he’ll be pumping from that.

The Sacramento Valley, even in the fourth year of a drought, isn't starved for water. At the north end of the valley, this hasn’t even been much of a drought year. Almost 49 inches of rain have fallen at Shasta Dam since last fall -- 78 percent of average -- and unlike most of the state’s peaks, 14,179-foot Mount Shasta is covered in deep snow. Shasta Lake, the state’s biggest reservoir, isn’t exactly full (it’s at 56 percent of capacity), but it has more water than this time last year.Which raises a question: Given how dry it is elsewhere in the state, shouldn’t the rice farmers be selling some of that water?

They aren’t entirely unwilling -- the Metropolitan Water District of Southern California cut deals this winter with a number of rice-country water districts to buy as much as 115,000 acre-feet of water (enough for about 230,000 households for a year) at $700 an acre-foot. But the deals were contingent on how much water those districts got, and most backed out as they got word that they won’t receive their full allotments, according to recent news reports. One oft-stated reason for these decisions is that rice farmers are already fallowing about 25 percent of their acreage because of the drought, and cutting back planting even more than that would hurt local businesses that revolve around rice growing. As a matter of local politics and just plain neighborliness, this makes sense.

As far as statewide economics, not so much. In California, rice is planted from airplanes and harvested with giant machines -- it’s not a labor-intensive crop. When Peter Gleick of California’s Pacific Institute set out a decade ago to calculate how many jobs were created relative to the amount of water used in various agricultural and industrial pursuits, rice came in dead last at one job per 1,000 acre-feet of water. Almond and pistachio orchards created six jobs per 1,000 acre-feet, fruit and vegetable crops 18 jobs and semiconductor manufacturing 9,013.Another reason for not selling water is that water rights aren’t absolute. If you sell all the water you’re entitled to, many farmers fear, the state or the courts may eventually take those rights away. State officials have been doing what they can to assuage such fears and encourage water transfers, but worries understandably remain.

Then there’s the rice growers’ trump card. Much of California’s Central Valley (composed of the Sacramento Valley in the north and the San Joaquin Valley in the south) was once wetlands. The draining of the swamps that began in the 1850s was what enabled the valley’s blooming as the country’s most important agricultural region. It also destroyed millions of acres of wildlife habitat. Rice growers have figured out that, for birds at least, their flooded fields can function as surrogate wetlands. They now try to avoid insecticides in their farming, and make habitat preservation a major priority. State officials and many environmentalists have come to accept that rice fields play a crucial role in maintaining what’s called the Pacific Flyway for migratory birds. For this reason alone, California rice isn’t going away.But still, does there need to be quite as much of it grown as there is?

There’s no satisfactory answer to this. Rice is California’s fourth biggest crop by acreage, after almonds, alfalfa and grapes. And while there have been some significant ups and downs -- and the state’s peak rice year remains 1981, when 593,000 acres were harvested -- the overall trend

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Daily Global Rice E-Newsletter by Riceplus Magazine has been up. During a drought in 1977 the number of acres harvested fell to 308,000. Last year it was 431,000.

This is the way of California farmers. They don’t just grow stuff, they grow it in huge quantities with ever-increasing efficiency (rice production has grown much faster than acreage), then they band together to find new markets for it. In the case of rice it hasn’t just been advertising and marketing, but also a decades-long diplomatic campaign to get Japan to open itself to rice imports. Such efforts in almost any other industry would be universally applauded; it can seem a little unfair that entrepreneurial, market-savvy behavior in agriculture is so often derided as corporate or industrial farming.Still, you can’t quite say that the market determined that 550,000odd acres of California farmland should be planted in rice.

As described above and in this Bloomberg View editorial, California’s water markets are something less than functional. The rice farmers generally qualify as water-rich, but they have limited opportunities to take advantage of those riches other than by planting rice. Rice is also one of the few major California crops that gets federal agricultural price-support subsidies.

Those subsidies have been piddling in recent years because rice prices have been high, but overall the price supports surely induce farmers to plant more rice than they would otherwise.Then again, the value of rice fields as wetland stand-ins probably isn’t fully reflected in the returns to growers. There is no simple equation here -- just a lot of fields, buried in 5 inches of water, in the midst of a drought.

1. Which is almost 38 degrees Celsius.

2. The six major rice-producing states in the U.S. are, in order of acreage harvested in 2014, Arkansas, Louisiana, California, Missouri, Mississippi and Texas. Most years, though, California is in second place. www.ricepluss.com R&D Section: Riceplus Magazine

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Daily Global Rice E-Newsletter by Riceplus Magazine 3. As I've written before, the fact that farms use lots of water in relation to their economic impact is not an argument for driving them out of the state.

4. If you count pasture for livestock grazing as a crop, rice comes in fifth.

To contact the author on this story: Justin Fox at justinfox@bloomberg.net To contact the editor on this story: James Greiff at jgreiff@bloomberg.net http://www.bloombergview.com/articles/2015-05-15/california-floods-fields-to-grow-rice-in-adrought

New breed of pledging Former finance minister Korn Chatikavanij launches project to encourage appreciation of new strains of rice and guarantee crop prices 15 May 2015 at 03:30 ,WRITER: VANNIYA SRIANGURA Just like most consumers of the Kingdom's main culinary staple of smooth, polished white rice, Korn Chatikavanij was never much of a fan of so-called novel types of Thai rice.

Korn Chatikavanij.

Although those fancy-looking grains (in black, brown and reddish colours, for example) can provide health benefits, he rarely enjoyed them. Despite all this, the former finance minister has launched Kaset Khemkhaeng, translated as "strong agriculture" in Thai, a project inaugurated a little over a year ago to encourage chemical-free farming and provide marketing support, as well as a fair and better trade price to local farmers.Korn recently invited a circle of foodie friends and media to a workshop he organised to urge diners to design their favourite blends of rice from various strains.

It was also an opportunity to create a new appreciation and awareness among rice consumers, the politiciancum-founder of Kaset Khemkhaeng explained.Under the brand Imm, the project's pioneering product Maha Sarakham blended rice, sold mainly via websites, was a success. The mixture of a few native rice grains from the northeastern Maha Sarakham province yielded more than 20,000 baht per tonne to the rice growers."In order to lend a wholesome support to local farmers, it is

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Daily Global Rice E-Newsletter by Riceplus Magazine important to capture the value and authenticity of native harvests," Korn said.

"Modern-day consumers might look at the non-white rice as fancy breeds that require intricate cultivation. But the truth is that those breeds are indigenous and easily grow at their origin.

Compared to commercially popular counterparts, growing native crops costs less and requires much less pesticide and fertiliser."According to him, Thailand, which boasts some 60 million rai of rice plantations, has more than a thousand indigenous rice breeds. The majority of Thais, however, couldn't be more ignorant when it comes to the art and science behind our national produce.As a matter of fact, rice can be identified very roughly by four different characteristics: whether ordinary; sticky; white; or unpolished.

As diners, we hardly ever consider, or care, where the rice on our plates comes from."Thais regard rice as a commodity, not culinary bliss, let alone a national distinction that should be preserved and protected," Korn noted. "Even I, myself, am not that knowledgeable about rice culture. Despite this, I decided to start the project. Otherwise it wouldn't have been able to progress."By encouraging diners to blend rice, Korn hopes it can be a good starting point in creating a new gastronomic appreciation, that will eventually lead to a greater demand for rustic breeds. "And when the consumers get to realise the tastiness of different kinds of rice, I'm sure they will be interested in finding out and studying more about the origins of different strains."

Korn said that agriculture will always be the world's key industry. As consumers today are more sophisticated and have more buying power, they are willing to pay for better quality food.His Kaset Khemkhaeng project is therefore aiming to promote high-quality produce that comes straight from the rice fields to the diners' tables.

Korn finds unpolished, colourful options of rice provide a very satisfying taste."If we want to support small-scale food producers, we have to upgrade the quality of their produce as opposed to increase the volume of their harvest, which is very difficult, in order to compete with big-scale players."We can rest assured that, when it comes to professional skill, local farmers are armed with carefully passed-on wisdom and hands-on experience, but they lack negotiating power to obtain a fair price and are tremendously concerned about the market."Our challenge is to assure farmers that without the use of chemical fertilisers and pesticides they would be able to cultivate enough crops to be able to yield enough income. It's a process of building belief."Korn said that rice farmers who participate in this project right now are paid 20,000-25,000 baht per tonne of rice, compared to the typical 6,000-8,000 baht they are usually paid by middlemen."So even with low yields due to unfavourable climate conditions, farmers know they would still be able earn more than they did in the past," he said.

"Introducing the local farmers to e-commerce trade is another way to build a sustainable trade channel. They don't have to be worried about the product outlet." According to Korn, the second batch of Imm rice, from Bang Rakam district in Phitsanulok province, has already attracted Chinese merchants interested in chemical-free Thai produce. There have also been some interested buyers from Europe and Australia. "We hope to see the involvement of high-profile www.ricepluss.com R&D Section: Riceplus Magazine

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Daily Global Rice E-Newsletter by Riceplus Magazine corporates in promoting Thai rice as a national heritage for the world. Meanwhile, provincial authorities can also help, for example, by certifying produce and organising farmers' markets.

From the data of the number of plantations, farm capacities and types of crops, authorities can forecast the annual produce and pre-sell the harvest online.

"Korn looks forward to the day when Thai rice is regarded by consumers the same way as French wine is across the globe, with different crops being treasured for their origins and characteristics. "Like wine, each harvest of rice should be respected according to its terroir [a set of special characteristics according to the geology, geography and climate conditions of a certain place].And, like wine, different strains of rice should be appreciated for their unique flavour profile, while blending different types of rice should become a significant part of culinary preference. "In the past, I believed that white rice better complemented kub khao [side dishes]. But after I got to sample various types of rice I found that unpolished, colourful options provided a very satisfying taste. I was hooked on white rice for so long that familiarity became a strong, perhaps misleading, perception.

"I now hope for the day when diners don't just decide on which entrĂŠe to have, but also give as much attention to the selection of rice when matching a specific type of strain with a particular category of side dish," he said.The Kaset Khemkhaeng project aims to establish a closer bond between urban diners and rice growers.Blended rice from Bang Rakam in Phitsanulok comes in cotton bags hand-woven by the rice farmers.

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