24th april,2015 daily global rice e newsletter by riceplus magazine

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Daily Global Rice E-Newsletter by Riceplus Magazine

Rice E-Newsletter April 24 , 2015 V o l u m e 5, Issue I

Government to buy 77,000 tons of surplus rice Updated: 2015-04-24 09:14:55 KST

The Korean government says it will purchase an additional 77-thousand tons of surplus rice in an attempt to prop up falling prices.Every year the government purchases rice that exceeds the nation's market demand of four-million tons.Last year, the government had estimated a yield of roughly four.one-eightmillion tons, but the actual harvest topped that projection by 60-thousand tons.Korean farmers had asked the government to purchase the excess rice,plus an additional 17-thousand tons that had been stockpiled by local governments.

Reporter : mkji@arirang.co.kr Watch video on

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Off-season rice farming areas hit 20-year low

BY EDITORON 2015-04-24THAILAND Off-season rice farming areas hit 20-year low

CHAINAT, 24 April 2015 (NNT) – Off-season rice farming areas in four provinces along the Chao Phraya River has fallen to a 20-year low, according to the Office of Agricultural Economics (OAE).Rice paddies in the provinces of Lopburi, Singburi, Chainat and Angthong have shrunken to a total area of 410,000 rai, due to a ban on off-season farming by the Ministry of Agriculture and Cooperatives to mitigate the drought crisis.The ban is in effect from November 2014 to April 30, in order to ensure sufficient water supplies for consumption, environmental conservation and agricultural purposes during the dry season. The OAE revealed a drop in rice yields in the four provinces corresponding to a 72 percent decrease in agricultural land use from last year. Other factors that affected the yield were cold temperatures and pest problems.However, the OAE disclosed that the ban on off-season farming has saved enough water for cultivation in May, adding that some farmers in the four provinces can resume cultivation activities.

Japan Farmers Cultivate Rice’s Mystique as Barrier to Deal byAlan BjergaAya Takada 4:00 AM PKT ,April 24, 2015 Share on FacebookShare on Twitter A farmer carries harvested rice ready to dry in a paddy field in Fujinomiya, Shizuoka Prefecture, Japan. Photographer: Tomohiro Ohsumi/Bloomberg

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Daily Global Rice E-Newsletter by Riceplus Magazine A powerful lobby stands in the way of two of the world‘s biggest economies completing a trade deal: Japanese rice farmers.Rice is the island-nation‘s staple grain and a powerful symbol of self-

sufficiency. It is also among the thorniest issues holding up an agreement the two nations hope to unveil when Prime Minister Shinzo Abe and President Barack Obama meet in Washington next week.―Rice is a social and political force. There is nothing quite like it in the U.S.,‖ said Tom Slayton, a former senior rice trade analyst at the U.S. Department of Agriculture who implemented an earlier U.S.-Japan rice agreement in the 1980s. ―The Japanese are protecting a dinosaur, but it‘s a dinosaur with a lot of clout. ‖Negotiators have been working for months on a deal that could become a part of a global deal being hammered out among 12 Pacific countries. The so-called Trans-Pacific Partnership would link economies making up 40 percent of the world‘s gross domestic product and strengthen U.S. alliances in Asia, key trade and foreign policy goals for Obama.If the U.S., the world‘s biggest economy, and Japan, the third-biggest, can strike a bilateral deal, it would help pave the way for the larger accord.Autos and agriculture have become the final snags. Japan wants the U.S. to eliminate a U.S. import tariff that was put in place to protect an industry that supports 900,000 manufacturing jobs. U.S. farm groups want Japanese trade restrictions lifted - - including for rice -- further opening a market that‘s already the biggest U.S. buyer of beef and pork.

Large Market The U.S. was Japan‘s largest export market and second-biggest source of imports in 2013, according to the most recent government data. Last year, the U.S. sold $67 billion of goods to Japan and bought $133.9 billion worth.The U.S. is the world‘s fifth-biggest exporter of rice, trailing Thailand, India, Vietnam and Pakistan. Japan, where the grain has been culturally and economically important for millennia, imports almost none.―The Japanese have always been very, very tough negotiators on agriculture issues. We‘ve made progress, but rice is one of the fences that are still up,‖ said John Block, who served as U.S. Agriculture Secretary under President Ronald Reagan.Hiroshi Oe, Japan‘s TPP ambassador, said rice is considered a politically sensitive product that must be protected, along with other grains, beef, pork, dairy and www.ricepluss.com R&D Section: Riceplus Magazine

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Daily Global Rice E-Newsletter by Riceplus Magazine sugar crops. Japanese economic minister, Akira Amari, said Wednesday that rice is ―100 times‖ more important to Japan than the U.S. ‗Continued Negotiations‘ Getting Japan to open on rice requires ―continued negotiations,‖ U.S. Agriculture Secretary Tom Vilsack said on Tuesday, declining to offer any specifics.Part of Japan‘s hesitancy to change its rice policy comes from the lobbying power of its farmers. The nation‘s union of farmer cooperatives, JA-Zenchu, has enjoyed special status since shortly after World War II, growing from an organization that fended off famine to a politically connected conglomerate that distributes farm supplies, sells agricultural products and dominates rural lending.With nearly 10 million members, its influence in the ruling Liberal Democratic party has long kept Japanese farmers protected from the consolidation, displacement -- and efficiency -- of globalization.

That‘s created a domestic market in which Japanese rice reigns supreme. Imports, begrudgingly allowed in a quota system agreed to under the World Trade Organization, remain unsold and unwanted.

The Pacific trade accord might change that.

Boost Buying Japan may agree to boost purchases of U.S. rice by as much as 100,000 metric tons a year while leaving the tariff-quota system in place, according to Masayoshi Honma, agricultural and resource economics professor at the University of Tokyo. Last year Japan bought 288,471 tons of rice from the U.S., worth $272 million, according to U.S. trade statistics.―Japan is poised to increase rice imports, which is different from freeing up the market entirely,‖ said Masaki Kuwahara, economist at Nomura Securities Co. in Tokyo. ―I don‘t expect the U.S. and Japan to sacrifice TPP deal because of their disagreement over rice imports. Both governments basically agree that Japan must increase rice imports from the U.S. for the deal.‖Still, Japan‘s rice market isn‘t growing. The agriculture ministry forecasts a 1 percent decline in consumption to 7.8 million tons in the year to June 30. ‗Unnecessary Concessions‘ Falling consumption, the result of economic growth and diversifying diets over the past five decades, means imports don‘t need much of a boost, Japan Agriculture Minister Yoshimasa Hayashi said on Monday. A deal won‘t happen just because Abe is coming to Washington, he said.―We won‘t make unnecessary concessions just to make it to various events such as the toplevel meeting,‖ Hayashi, 54, said. ―What matters is content.‖U.S. rice producers say Japan‘s offer is insufficient and want ―a significant improvement in the quantity and quality of access‖ to the Japanese market, said Michael Klein, a spokesman for the Arlington, Virginia-based USA Rice Federation. ―What is apparently being offered by the third largest economy in the world is far beneath the ambition of the TPP,‖ he said.Japanese farmers have pressured the government to reject an agreement, with JA-Zenchu organizing rallies against a deal across the country. The group has

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Daily Global Rice E-Newsletter by Riceplus Magazine become a leader among Japan‘s globalization skeptics, said Koichi Nakano, professor of politics at Sophia University in Tokyo.

Weakening Grip Still, signs are already evident that rice‘s grip is weakening as Abe pushes for structural reform in Japan‘s economy.The Liberal Democratic Party in February announced plans to revise the nation‘s agricultural cooperative law to deprive it of the ability to supervise and audit local farming groups, a move designed to dilute JA-Zenchu‘s power and cut the fees it collects from members.The government also has eased curbs on corporate farm ownership and created land banks to merge small holdings into large tracts, a way to wring inefficiencies out of a system still populated by aging farmers tending small plots of land. The nation has set a goal of doubling food exports by 2020, with beef exports surging fivefold.

Surmountable Issue Akira Banzai, chairman of JA-Zenchu, earlier this month resigned, saying reforms would be needed under a new chairman. Japan has already given some ground on TPP, agreeing to lower beef and pork import tariffs, products for which Japan is already the biggest importer of U.S. goods.In the end, the stumbling block is surmountable amid the emotion enveloping the issue, said Jeff Kingston, director of the Asian Studies program at Temple University‘s Tokyo campus. ―The Japanese public is easily aroused over rice because it is intrinsic to national identity, but figuring out a mechanism that would crack open the market a bit more is doable,‖ he said. ―There will be a lot of grandstanding on this issue, but it is too marginal to scupper a deal that both sides want as much for geopolitical reasons as for economic benefits.‖ http://www.bloomberg.com/news/articles/2015-04-23/japan-farmers-cultivate-rice-s-mystique-as-barrier-to-tradedeal

CME Group revises daily price limits for grains starting May 1 CHICAGO, APRIL 23

(Reuters) - Daily price limits for Chicago Board of Trade corn and wheat futures will rise starting in May, while soybean limits will not change following a semi-annual review, the CME Group Inc, parent of the exchange, said on Thursday.Under exchange rules, the CBOT resets daily limits for grains and oilseeds in May and November of each year, based on a percentage of the average settlement price of benchmark contracts during a roughly nine-week observation period.The new limits will go into effect on Thursday, April 30, for May 1 trading.For corn, daily limit will move to 30 cents per bushel from the current 25 cents.

The limit for CBOT wheat will rise to 40 cents from 35 cents, and the limit for K.C. hard red winter wheat will stay at 40 cents.For soybeans, the daily limit will remain at 70 cents per www.ricepluss.com R&D Section: Riceplus Magazine

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Daily Global Rice E-Newsletter by Riceplus Magazine bushel.For soymeal, the limit will stay at $25 per short ton, while the limit for soyoil will fall to 2 cents per lb from the current 2.5 cents.The limit on rough rice futures will decline to 75 cents per hundredweight from 90 cents. The limit for oats will fall to 20 cents per bushel from 25 cents.Limits for all grain futures can be expanded in the session following a limit-up or limitdown settlement.Daily limits are lifted for the current month contract on or after the second business day preceding the first day of the delivery month.The CBOT eliminated price limits for all grain and oilseed options contracts in 2014. (Reporting by Julie Ingwersen. Editing by Andre Grenon) http://www.reuters.com/article/2015/04/23/markets-cbot-grains-limits-idUSL1N0XK3TP20150423

Local scientists help safeguard rice production DEPARTMENT of Agriculture and Food WA researchers have developed a forecasting model and disease loss chart which could assist overseas rice growers combat a potentially devastating fungal disease.

Rice false smut disease (RFSD) is prevalent in the majority of rice growing areas on the Indian sub-continent, as well as Asia and the US. As part of a PhD project with the Bangladesh Rice Research Institute the researchers recorded smut balls or galls on the panicles of the regenerated tillers (otherwise known as ratoons) in the harvested hills that were previously infected by the disease.The research also recorded the natural distribution of the disease across the fields, hill by hill in Bangladesh, and associated yield losses.

DAFWA scientists Moin Salam and Bill MacLeod used this knowledge to develop the yield loss chart and forecasting forecasting model to assist rice growers to implement farming practises to minimise the impact of RFSD.―Although RFSD was believed to be an indication of a bumper year, it can cause yield losses of up to 75 per cent, as well as a dark taint for which grain can be discounted,‖ Mr MacLeod says.―Many of the popular rice varieties in Bangladesh can have RFSD and fungicides are not particularly effective. This research will assist rice growers to take action to reduce the proliferation of RFSD spores.‖

India Develops New Protein-Rich Rice Variety Apr 24, 2015

The Central Rice Research Institute (CRRI) has developed a protein-rich rice variety, which also high-yielding as well as tolerant to certain diseases, according to local sources.The Director of the CRRI told local sources that the new variety has 10.5% protein content, which is about 3% www.ricepluss.com R&D Section: Riceplus Magazine

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higher than that found in normal varieties. He noted that the new variety has been developed by crossing a protein-rich germplasm with a high-yielding rice variety called "Naveen". He added that the scientists are planning to increase the protein content as well as yield of the new variety by cross breeding it with high-yielding varieties.Presently, the new variety yields about 5.5 tons per hectare and is well-suited to grow in the Indian eastern states, said the CRRI Director.

The CRRI Director also noted that normally farmers are not that inclined to adopt such new varieties as the yield provided by them is very low. He added that the institute is planning to carry out an awareness drive to encourage the farmers to adopt the new protein-rich variety. He expressed confidence that farmers would be easily convinced as "Naveen" rice variety was quite popular among farmers in eastern states.The new variety, which is yet to get a name, is cleared by the Variety Identification Committee under the Ministry of Agriculture. The CRRI is planning to release the new variety for cultivation within the next two months.The CRRI is also working towards developing flood and saline-resistant rice varieties as well. So far, the institute developed 115 rice varieties, according to the CRRI Director.

Source with thanks: ORYZA.com

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Rice of Kashmir Dr. G A Parray Before the introduction and popularization of China varieties, many indigenous landraces including Mushkbuduj were grown on large scale across Kashmir Himalayas. More than 100 landraces have been documented from Kashmir valley, however, majority of them got fast replaced from fields by the high yielding varieties and were pushed only to some specific pockets of Valley, where they are being grown by a few households. Great genetic erosions have occurred since last five to six decades during which major proportion of local rice biodiversity was lost.

The reasons attributed to the loss of heritage rice of Kashmir are their low yielding potential, susceptibility to biotic and abiotic stresses particularly to paddy blast and less share of benefits to the growers because of unscrupulous activities of brokers (milling and marketing of the product). In the backdrop of these facts Mushkbuduj revival programme was undertaken in 2007 by Khudwani Centre of SKUAST-Kashmir with the objective to conserve local biodiversity through utilization for socioeconomic development of rice growers under Vice Chancellor Dr. Tej Pratap and Director Research Dr. Shafiq A Wani.The demand for original Mushkbuduj was felt from different sections of the society.

SKUAST-Kashmir developed the purified version of Mushkbuduj and devised an integrated nutrient and disease management modules through rigorous experimentation for six long years at Khudwani Centre.During Kharif 2011, the performance of purified version against the older version was demonstrated in the farmer‘s field in the Sagam village of district Anantnag.

A popular niche belts of local heritage rice of Kashmir. Simultaneously, the seed multiplication programme was undertaken in the farmers‘ field in the same season in compact blocks by providing them pure seed produced at the Khudwani Centre. The year 2013, proved a success story during which an area of 50 ha in five adjoining villages was brought under Mushkbuduj and about 1500q of seeds were produced. This programme was also highly applauded by Governor N N Vohra during 3rd Agriculture Science Congress organized by SKUAST-K.In this regard SKUAST-Kashmir invited market entrepreneurs and millers for creating smooth and sustainable market facility to safeguard interests of farmers and other stake holders.

The programme has been proposed to extend and to bring other niche belts and equivalent ecologies of Kashmir valley under aromatic rice cultivation. A Jammu based rice exporter has also now entered into the procurement, milling and trading of branded Mushkbuduj.During 2014, 4000-5000q seeds of aromatic rice were produced in the village Sagam, although, it was an unfavorable year for rice crop owing to floods and cold stress at critical stage of crop growth. The Jammu based rice exporter again lifted the major portion of the harvest and provided handsome cash to farmers at their threshing floor. Presently, there is surplus stock available in the market and people can have the taste of the heritage rice of Kashmir valley.

Mushkbuduj which few years back was diminishing at an alarming rate is now available in the market in its original form. The areas that produce Mushkbuduj, is expected to surpass 300 ha in Kharif 2015. This special rice variety cannot be grown everywhere as it needs specific agro-ecology and peculiar climatic conditions and furthermore needs expertise in production/protection technology and availability of good

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Daily Global Rice E-Newsletter by Riceplus Magazine quality seed from a reliable source. As against Rs. 2500.00/qtl, the price for normal rice of Kashmir, a farmer gets eight times more for Mushkbuduj.

Despite strict requirements, we can grow Mushkbuduj on an area of around 5000 ha and its cultivation could prove positive on socio-economic conditions of rice growers. In addition to Mushkbuduj other aromatic landraces like Kamad is also in revival mode and is available in the market.The programme was successful because of the fact that entire local biodiversity is being maintained by SKUAST-K at its Khudwani Centre, where both indigenous and exotic germ plasma numbering more than 500 are being conserved, maintained and further utilized through concerted breeding efforts.Author is Associate Director Research of Mountain Research Centre for Field Crops at SKUAST Kashmir.

He can be mailed at parray_2005@rediffmail.com

Camagüey Province Fine-tunes Details ahead of Upcoming Rice Harvest Camagüey, April 23 - With the maintenance of their machinery, farmers in Camaguey province are bracing for giving a decisive boost to the rice harvest these days. However, some harvesters at the Rodolfo Ramírez Esquivel Basic Unit of Cooperative Production in the municipality of Florida have already begun reaping.Head of the agribusiness company Ruta Invasora Michel Ballate claimed that their commitment this year is to reap over 35,000 MTs of rice to ensure the monthly basic food basket for Camaguey-resident families and to meet the contracts with the tourist sector in this province and others. Ballate explained that effective strategies have been mapped to guarantee the machinery, basically in June and July, when some 1,000 MTs per day should be reaped.

Rice growers have had to face a tremendous challenge during this harvest owing to insufficient supply of water, because the reservoirs that should provide water to their fields have only retained up to 10 percent of their capacities. Camagüey rice growers have the commitment to sow up to October nearly 21,000 hectares, basically on lands owned by private farmers who are responsible for the 66 percent of this program in this province. (Raysa Mestril Gutiérrez / Radio Cadena Agramonte)

CRRI to focus on high-yielding varieties TNN | Apr 24, 2015, 12.10 PM IST

CUTTACK: The Central Rice Research Institute (CRRI), which celebrated its 69th foundation day here on Thursday, has decided to focus on developing next-generation rice varieties."Our priority is to develop rice varieties, which can grow quickly and produce up to 10 to 12 tonne a www.ricepluss.com R&D Section: Riceplus Magazine

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Daily Global Rice E-Newsletter by Riceplus Magazine hectare. We will have to make agriculture profitable for our farmers," said director of the institute Trilochan Mohapatra.Currently, any normal rice variety yields 5 to 5.5 tonne a hectare and matures between 130 and 150 days.Scientists claimed that they are working on high-yielding seeds for flood-prone and saline areas.

"Against the backdrop of climatic changes and shrinking paddy fields, we have to develop new varieties and techniques," Mohapatra said.With improved understanding of the genetic basis and physiological mechanism and by crossing the high-yield varieties with pest-resistance varieties, the premier rice research institute aims to achieve this milestone, he added.Commenting on the recent damaged to crops due to unseasonal rain, a senior scientist said, "Had the crop matured early, the farmers would not have suffered losses," said a senior scientist. The premier rice research institute has so far developed 115 varieties of rice.

Local scientists help safeguard rice production Friday, 24 April 2015 DEPARTMENT of Agriculture and Food WA researchers have developed a forecasting model and disease loss chart which could assist overseas rice growers combat a potentially devastating fungal disease.

Rice false smut disease (RFSD) is prevalent in the majority of rice growing areas on the Indian sub-continent, as well as Asia and the US. As part of a PhD project with the Bangladesh Rice Research Institute the researchers recorded smut balls or galls on the panicles of the regenerated tillers (otherwise known as ratoons) in the harvested hills that were previously infected by the disease.The research also recorded the natural distribution of the disease across the fields, hill by hill in Bangladesh, and associated yield losses.

DAFWA scientists Moin Salam and Bill MacLeod used this knowledge to develop the yield loss chart and forecasting forecasting model to assist rice growers to implement farming practises to minimise the impact of RFSD.―Although RFSD was believed to be an indication of a bumper year, it can cause yield losses of up to 75 per cent, as well as a dark taint for which grain can be discounted,‖ Mr MacLeod says.―Many of the popular rice varieties in Bangladesh can have RFSD and fungicides are not particularly effective. This research will assist rice growers to take action to reduce the proliferation of RFSD spores.‖

Last modified on Friday, 24 April 2015 12:22

Cuttack research institute develops protein-rich rice TNN | Apr 24, 2015, 12.11 PM IST

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Daily Global Rice E-Newsletter by Riceplus Magazine CUTTACK: The Central Rice Research Institute (CRRI) has developed a variety of rice, which is rich in protein. It has been cleared by the Variety Identification Committee functioning under the ministry of agriculture, but is yet to get a name. "We will release the variety for cultivation within two months. It will not only ensure better returns to farmers but also be beneficial to them," said director of CRRI Trilochan Mohapatra.

He said the variety is one of the major achievements for CRRI, which celebrated its 69th Foundation Day on Thursday. The rice variety has over 10.5% protein content, which is 3% more than what is found in any popular variety. It has been developed by crossing a protein-rich germplasm with a high-yielding rice variety called Naveen. "Our scientists have worked hard for the last two years to develop the variety," said Mohapatra.

Scientists have plans to gradually increase the protein content in rice by cross breeding it with more highyielding varieties. They said the major problem with protein-rich rice varieties is that their yield is quite low compared to other varieties. Hence, farmers are not inclined to cultivate it, they added. The new variety ensures better yield and is tolerant to some diseases. "The variety yields over 5.5 tonne a hectare in irrigated ecosystem and is best suited for eastern region of the country," said the director.The institute also has plans to carry out awareness drive to make the rice variety popular among farmers. Naveen is quite popular among farmers in the eastern zone, so officers are hopeful that there would be no major problem in convincing farmers to grow its protein-rich version. With this, the CRRI has so far developed 115 varieties of rice.

Food ministry finally calls for rice import duty 12:00 AM, April 24, 2015 / LAST MODIFIED: 12:46 AM, April 24, 2015

The food ministry has at last asked the National Board of Revenue to slap duty on rice imports in a last ditch move to arrest the downward spiral of prices of the grain and prevent farmers from racking up unsustainable losses.Millers and analysts termed the initiative to be 'too late' as the harvest of boro paddy has already begun and the grain is trading at Tk 100 per maund (40 kilogram) below last year's prices.The rice prices are also lower than those that prevailed at this time last year, according to Trading Corporation of Bangladesh.The government should have imposed the duty much earlier as many farmers and millers have already incurred losses for rising imports from India, said Bappi Saha, a rice miller from Netrokona district.

Farmers get as low as Tk 450 for each maund of BRRI Dhan 28, the most popular rice variety during the boro season. The lowest price of the same variety was Tk 550 per maund during the harvesting period last year, he said.The present price of paddy is much below the government estimate of farmers' production cost of Tk 20 each kilogram during the current boro season.―The demand for paddy remains lukewarm among millers. Because of that, we are suffering from losses. We cannot clear our stocks for the imports.‖Saha said the farmers will be unable to recover their investment unless the government takes steps immediately.

Acknowledging the downward trend of rice prices owing to imports, the food ministry finally sought the NBR's help yesterday -- a move that comes four months after the parliamentary www.ricepluss.com R&D Section: Riceplus Magazine

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Daily Global Rice E-Newsletter by Riceplus Magazine standing committee on the food ministry advised for discouraging imports.Between July 1 last year and April 21 this year, rice imports stood at 12.91 lakh tonnes, which is more than three times the total imports last fiscal year, according to food ministry data. In fiscal 2013-14, 3.74 lakh tonnes of rice were imported.Earlier, some millers and importers said the zero duty buoyed rice imports. The imported rice traded in the domestic market for household consumption has affected farmers and millers, they added.

But the government continued to ignore the concerns of millers and farmers, with some top government functionaries such as Food Minister Md Qamrul Islam maintaining that low-quality rice was being imported for 'cattle feed'.Some aromatic rice was also imported but the amount of import was not so high compared to domestic production and consumption, Islam told The Daily Star last month.A month later, the food ministry in its letter said huge quantities of rice are being imported from India, causing a downward trend in rice prices on the domestic market.

The letter, citing the government's boro rice procurement of 11 lakh tonnes during the current harvesting season, said the aim of the domestic purchase was to ensure fair prices of cereal for farmers and keep the market prices of grains stable.The ministry said the prices of boro paddy usually fall due to increased supply after harvesting. So, the government typically purchases rice to rein in the price fall and ensure fair prices for growers.―It will be difficult to ensure fair prices for producers if the massive rice imports continue,‖ said the ministry in the letter. Subsequently, it sought 'necessary measures' from the NBR to impose duty on rice imports.Apart from imports, domestic production also rose this fiscal year.

Farmers bagged around 1.32 crore tonnes of aman rice in the immediate harvest, up 1.28 percent year-on-year. Aus output also edged up slightly after record boro production last year, according to Bangladesh Bureau of Statistics.M Asaduzzaman, a professorial fellow of Bangladesh Institute of Development Studies, said the government should have imposed duty on rice imports in February, such that the farmers got fair prices. ―It is too late. This means nothing now. The damage has already been done. The growers would have taken better care of their crops if the duty was slapped then,‖ he said.However, Nirod Boron Saha, president of rice and paddy stockists' and wholesalers' association in Naogaon, wants the government to act on the decision right away.The duty should be imposed within a week, as the boro harvest is yet to start in full swing in the northwest, one of the main rice producing regions, he said. http://www.thedailystar.net/business/food-ministry-finally-calls-rice-import-duty-78953

Rice Millers to Seek Uniform Price

By Express News Service

Published: 24th April 2015 06:01 AM Last Updated: 24th April 2015 06:01 AM

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VIJAYAWADA: Rice millers from across the country, at their one-day conference to be held here on April 25, will seek a uniform price to be paid by the government for custom milling of rice given to them after procuring it from farmers.Speaking to newsmen here Thursday, AP Rice Millers Association Gummadi Venkateswara Rao, said the Centre was paying different prices in different states for custom milling. Though the rice millers were not against the government taking over procurement of paddy from farmers, they should give it to millers for custom milling for an attractive price, he said. In AP, the price paid by the government for custom milling was Rs 15 per tonne while it is Rs 85 per tonne in Odisha and Rs 30 in Telangana, he said.

Sugar, rice farmers demand inclusion in TPP deal Date April 25, 2015 - 12:15AM

Cane growers and rice farmers will not accept being left out of TPP trade talks. Photo: Peter Braig Crucial TPP trade pact in 'grabbing distance' TPP pill difficult to swallow for pharmaceuticals No new penalties for Australian internet pirates under TPP

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Daily Global Rice E-Newsletter by Riceplus Magazine After being left out in recent trade deals, Australia's sugar and rice industries are demanding the Abbott government does not sell them short again.The broad-based and highly secretive TPP talks, which include 12 countries that account for almost one-third of Australia's total trade and 38 per cent of world GDP, are in a final round of negotiations in Washington.Brett Finlay, president of farm lobby the National Farmers' Federation, said that all agricultural commodities need to get better market access."Australian agriculture exports approximately two-thirds of what we produce," he said.

"Improved market access is critical to the entire agricultural sector and we have been advocating strongly to government for good outcomes across the board. We know it is difficult to get everything included, however, that's the starting point for us."Canegrowers Queensland chairman Paul Schembri said that the sugar industry, which was left out of the 2004 free-trade agreement with the United States, also had poor outcomes in the government's free-trade deals with China and Japan."We are playing for keeps. It is TPP or bust for us. We are an export-focused industry with more than 80 per cent of our 4.5 million tonnes of sugar exported every year," he said.

Sector visits Washington to lobby "We are sick and tired of being the bridesmaid and being thrown off the table at the eleventh hour," Mr Schembri said.The sugar industry has just sent Dominic Nolan, the CEO of the Australian Sugar Milling Council, and Warren Males, Canegrowers' policy manager, to Washington to lobby the government.Australia's cane growers desperately want better access to the highly protected US and Japanese markets.Ricegrowers Association executive director Dean Logan said the industry has repeatedly been disappointed in past negotiations."We support our government ‌ but we don't want any special deals or carve-outs. We hope the government flies the flag for Australian rice growers," he said."Rice has got to be there. They have to go in to bat for rice. We have missed out too many times."Australia has the capacity to produce up to 1 million tonnes of rice a year and exports 80 per cent of its rice in a non-drought year to 60 countries.The NFF's Mr Finlay said it is critical that Australian farmer quality, safety and traceability is not compromised by product aggregation or other changes to rules of origin. http://www.smh.com.au/business/world-business/sugar-rice-farmers-demand-inclusion-in-tpp-deal20150424-1msksi.html

NACC accuses former ministers of fabricating G2G rice scheme KRIS BHROMSUTHI THE NATION April 24, 2015 1:00 am

Claims of rice stockpiles being sold through government-to-government (G2G) scheme by the Yingluck Shinawatra administration were "total lies", National Anti-Corruption Commission (NACC) member Vicha Mahakhun told members of the National Legislative Assembly (NLA) yesterday.The scheme, he said, played a key role in "one of the most scandalous corruption cases in Thai history". However, former commerce minister Boonsong Teriyapirom said the allegations were part of a political game by the NACC, claiming the commission had chosen to single out and annihilate a political group by using

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"double standards". He also accused the NACC of rushing the case through without taking into account important witnesses and evidence, which led to false conclusions.

The other two accused, former deputy commerce minister Poom Sarapol and former director of the Commerce Ministry's Foreign Trade Department Manus Soiploy, also said they had hard evidence to prove their innocence. The NLA held a second meeting yesterday to deliberate on impeachment cases against public officials in relation to alleged corruption in the G2G scheme. The first meeting was held earlier this month.At yesterday's meeting, which was chaired by NLA president Pornpetch Wichitcholchai, Vicha presented the case statement on NACC's behalf. Boonsong and Poom came armed with a team of 11 lawyers. In the question-and-answer session, Vicha questioned the very existence of the Chinese government representatives who had engaged in the deal. He pointed out that Beijing had claimed that these "state enterprises" were not their representatives.

Vicha also asked why the companies Kwang-Tung Stationary and Hai-Narn Grain and Oil Industrial Trading - who the Pheu Thai-led government claimed were representatives of the Chinese government sold the rice back to Thai local distributors. He backed this claim by saying local firms Nakorn-Luang Ka-Kao and Thai-Fah 2551 had both come forward to say they bought rice from the Chinese companies.

He also said documents issued by the Foreign Trade Department recording the so-called sale to China only accounted for a single ex-warehouse transaction. Vicha said the deal was in fact with North Korea and the transaction had to be cancelled because no payment was ever made.

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Daily Global Rice E-Newsletter by Riceplus Magazine "There was never any G2G deal because the rice was sold at less than market price and then redistributed in the country. This created an oversupply, pushing the price even lower," Vicha pointed out. The NACC member also accused the officials of doing nothing to prevent corruption or making any effort to organise fair bidding. "You have caused immeasurable damage to the country. You cannot deny responsibility because you had direct power in overseeing the G2G affair. If you detected any error, you should have fixed it. In reality, though, you did the opposite by committing [corruption], hiding and denying the corruption. You have severely violated the official code of ethics," he concluded.

'Double standards' Boonsong, however, denied all the charges and even criticised the behaviour of Vicha, who played a key role in Yingluck's impeachment. "This NACC official is prejudiced and engaged in improper conduct that demonstrates his personal bias against me by giving media interviews indicating that I'm guilty," he said.

The former minister went on to say that it was difficult for him to believe he will undergo a fair and legal deliberation process now that the case has been handed over to Vicha. He claimed that NACC was using the same double standards against him as the ones it used against Yingluck's administration, in comparison to the Abhisit Vejjajiva government's rice scheme, which is still incomplete after five years.

He went on to say that the NACC had rushed the G2G case by refusing to investigate the buyers, who were representatives of the Chinese government. He added that these firms had sent the NACC official letters confirming the fact that they were state enterprises.

He claimed that the rice-pledging scheme is being used for an artificial political discourse to discredit the Yingluck government. "It's a shame that those against Pheu Thai turned the rice scheme into political discourse to bring down Yingluck's government, even though the scheme helped millions of farmers," he said. Boonsong said the G2G system has been widely used in many countries and that Thailand too had engaged in it several times in the past. Poom agreed, saying the G2G deal was beneficial to the country because the government did not want the stockpiled rice to degrade or rot and that releasing the whole lot through this deal was the best option. He also pointed out that if the G2G deal had been delayed, the price of the rice would have dropped further and there would have been the additional cost of storage and tax.

Plus, he said, it forged stronger ties with China. The NLA will meet again next Thursday to pose questions to all sides. The final statements will be presented on May 7, and the NLA will vote for or against impeachment the following day. http://www.nationmultimedia.com/politics/NACC-accuses-former-ministers-of-fabricating-G2G-r30258644.html

Agriculture Ministry announces progress of aid plans for rice & rubber farmers Friday, 24 April 2015From Issue Vol. XXIII No. 17By NNT

The Ministry of Agriculture and Cooperatives says it has successfully offered help to all troubled rice and rubber farmers as planned.Speaking about the government‘s performance during the past six months, Agriculture and Cooperatives Minister Pitipong Puengbun na Ayuddhya said the government had distributed over 60 billion baht to rice and rubber growers affected by falling agro-product prices and drought in its short-term solutions.Regarding solutions to droughtwww.ricepluss.com R&D Section: Riceplus Magazine

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Daily Global Rice E-Newsletter by Riceplus Magazine related problems, Pitipong said the Ministry of Agriculture and Cooperatives offered affected rice farms compensation of 1,000 baht per rai and provided them with job opportunities, organic agriculture training programs, and water supplies for farming.

More than 3.5 million households have benefited from the Ministry‘s assistance measures.As for the rubber industry, the Ministry has also provided compensation of 1,000 baht per rai to more than 767,000 households and approved loans of 20 billion baht for rubber farmers via financial institutions.As the long-term solutions, the Ministry has planned to revamp the structure of the country‘s agricultural development through its various projects which number over 3,000. The revamp is expected to enable farmers to earn more income in a sustainable manner ahead of an upcoming farming season. http://www.pattayamail.com/business/agriculture-ministry-announces-progress-of-aid-plans-for-rice-rubberfarmers-46402#sthash.6QuyeZt1.dpuf

IFAD Earmarks N1.5bn To Boost Rice, Cassava Production Posted by admin on Apr 24th, 2015 and filed under Business. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

The International Fund for Agricultural Development (IFAD) has says that it had set aside N1.5 billion to boost rice and cassava production by small farm holders in Nigeria in 2015. The IFAD Country Portfolio Manager, Mrs Atsoko Toda, disclosed this in Lokoja at the opening of a two-day workshop on small farm holders‘ productivity enhancement component.He explained that part of the money will be used to train small farm holders in the areas of sustainable agricultural practices and production techniques.According to her, access to fertilisers and agro chemicals as well as improved cuttings and certified rice seeds will also be provided for the category of farmers under focus.She added that farmers will be trained on how to add value to rice and cassava production so as to enhance their income, create wealth and jobs for the youths.

According to her, the programme tagged IFAD-Value Chain Development will go a long way to achieve food sufficiency for the country.Toda explained that IFAD decided to focus on rice and cassava because of their capacity to quickly increase the total volume of food available to the people.She added that processors will also be encouraged to produce polished and stone-free rice so as to discourage Nigerians from going for imported rice.She explained that the workshop was organised to deliberate upon and arrive at a strategic framework for the implementation of the component two of the IFAD-VCDP.The coordinator said that Anambra, Niger, Ogun, Taraba, Benue and Ebonyi were the six states selected for the implementation of the Programme.

Tk 302m incentive for 0.21m Aus paddy farmers in 10 days www.ricepluss.com R&D Section: Riceplus Magazine

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The government ann-ounced on Wednesday that it would distribute Tk 302 million (30.2 crore) among farmers in the form of incentives during the current Aus paddy season aiming to help scale up production."We will provide Tk 302 million to 210,000 (0.21 million) farmers of 48 districts. The money will be disbursed within the next ten days," Agriculture Minister Begum Matia Chowdhury told the journalists while announcing the incentives at the conference room of the Ministry of Agriculture on the day. The incentive will be provided in cash and also in the form of agricultural inputs like seeds and fertilisers."Under the incentive programme additional 70,000 tonnes of rice will be produced. The total value of the produce will stand at Tk 2.31 billion (rice Tk 2.24 billion and straw Tk 70 million). The ratio of expenditure to income is 1:8," she mentioned.Asked about distribution of the incentive, she said the government would maintain utmost transparency in distributing the cash, seeds and fertiliser to the farmers.

She said farmers would get the cash through bank accounts. The selected farmers would give their signatures/thumb prints at the time of receiving the agricultural inputs.Upazila Agriculture Implementation Committee, upazila level agriculture officer and union council chairmen and members concerned will select the deserving farmers for the facilities. Out of the amount (Tk 302 million), Tk 243 million will be given to farmers for cultivating the Ufshi variety of Aus and Tk 59 million for the Nerica variety.

The districts are Noakhali, Jessore, Jhenidah, Bogra, Lal-monirhat, Meherpur, Gai-bandha, Natore, Joypurhat, Tangail, Mymensingh, Moul-vibazar, Khulna, Satkhira, Sirajganj, Pabna, Kishoreganj, Thakurgaon, Dinajpur, Gopa-lganj, Kushtia, Barisal, Pirojpur, Jhalakathi, Barguna, Madaripur, Bhola and Bagerhat.The government has set a target to produce around 35 million tonnes of rice this year. Apart from giving the incentives for Aus paddy cultivation, the government has already disbursed Tk 240 million in the same form for cultivating wheat, mustard, Boro paddy and BARI Khesari.

A total of 210,000 farmers in 48 districts will cultivate the Ufshi variety of paddy on 210,000 bighas of land during the current fiscal year (FY) 2014-15.A total of 180,000 farmers will cultivate Ufshi Aus on 180,000 bighas in 48 districts while 30,000 farmers will grow the Nerica variety of paddy on 30,000 bighas in 37 districts.Each of the farmers will get Tk 1,350 for the Ufshi Aus paddy production and Tk 1,970 for the Nerica variety.About Tk 400 will be given for irrigation of both Ufshi and Nerica varieties and Tk 400 for removing unwanted wild plants for cultivating the Nerica variety.Each of the farmers will get 5 kg seeds of the Ufshi variety and 10 kg seeds of the Nerica variety.Besides, each farmer will receive 20 kg urea, 10 kg Muriate of Potash (MOP) and 10 kg Diammonium Phosphate (DAP) for cultivating both the varieties of Aus paddy. talhabinhabib@yahoo.com

Food ministry finally calls for rice import duty The food ministry has at last asked the National Board of Revenue to slap duty on rice imports in a last ditch move to arrest the downward spiral of prices of the grain and prevent farmers from www.ricepluss.com R&D Section: Riceplus Magazine

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Daily Global Rice E-Newsletter by Riceplus Magazine racking up unsustainable losses. Millers and analysts termed the initiative to be 'too late' as the harvest of boro paddy has already begun and the grain is trading at Tk 100 per maund (40 kilogram) below last year's prices. The rice prices are also lower than those that prevailed at this time last year, according to Trading Corporation of Bangladesh. The government should have imposed the duty much earlier as many farmers and millers have already incurred losses for rising imports from India, said Bappi Saha, a rice miller from Netrokona district.

Farmers get as low as Tk 450 for each maund of BRRI Dhan 28, the most popular rice variety during the boro season. The lowest price of the same variety was Tk 550 per maund during the harvesting period last year, he said. The present price of paddy is much below the government estimate of farmers' production cost of Tk 20 each kilogram during the current boro season. ―The demand for paddy remains lukewarm among millers. Because of that, we are suffering from losses.

We cannot clear our stocks for the imports.‖ Saha said the farmers will be unable to recover their investment unless the government takes steps immediately. Acknowledging the downward trend of rice prices owing to imports, the food ministry finally sought the NBR's help yesterday -- a move that comes four months after the parliamentary standing committee on the food ministry advised for discouraging imports. Between July 1 last year and April 21 this year, rice imports stood at 12.91 lakh tonnes, which is more than three times the total imports last fiscal year, according to food ministry data. In fiscal 2013-14, 3.74 lakh tonnes of rice were imported.

Earlier, some millers and importers said the zero duty buoyed rice imports.

The imported rice traded in the domestic market for household consumption has affected farmers and millers, they added. But the government continued to ignore the concerns of millers and farmers, with some top government functionaries such as Food Minister Md Qamrul Islam maintaining that low-quality rice was being imported for 'cattle feed'. Some aromatic rice was also imported but the amount of import was not so high compared to domestic production and consumption, Islam told The Daily Star last month. A month later, the food ministry in its letter said huge quantities of rice are being imported from India, causing a downward trend in rice prices on the domestic market.

The letter, citing the government's boro rice procurement of 11 lakh tonnes during the current harvesting season, said the aim of the domestic purchase was to ensure fair prices of cereal for farmers and keep the market prices of grains stable. The ministry said the prices of boro paddy usually fall due to increased supply after harvesting. So, the government typically purchases rice to rein in the price fall and ensure fair prices for growers. ―It will be difficult to ensure fair prices for producers if the massive rice imports continue,‖ said the ministry in the letter. Subsequently, it sought 'necessary measures' from the NBR to impose duty on rice imports.

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Daily Global Rice E-Newsletter by Riceplus Magazine Apart from imports, domestic production also rose this fiscal year. Farmers bagged around 1.32 crore tonnes of aman rice in the immediate harvest, up 1.28 percent year-on-year. Aus output also edged up slightly after record boro production last year, according to Bangladesh Bureau of Statistics. M Asaduzzaman, a professorial fellow of Bangladesh Institute of Development Studies, said the government should have imposed duty on rice imports in February, such that the farmers got fair prices. ―It is too late. This means nothing now. The damage has already been done.

The growers would have taken better care of their crops if the duty was slapped then,‖ he said.

However, Nirod Boron Saha, president of rice and paddy stockists' and wholesalers' association in Naogaon, wants the government to act on the decision right away. The duty should be imposed within a week, as the boro harvest is yet to start in full swing in the northwest, one of the main rice producing regions, he said. Source : thedailystar.net

Read more at: http://www.caclubindia.com/forum/food-ministry-finally-calls-for-rice-import-duty-326008.asp#.VTtlpNKUdg8

Govt purchase 150,000 MT of paddy - President's Secretary Published inDevelopment - Provincial

The government has purchased 150,000 MT of paddy from farmers island-wide at a cost of Rs. 7.2 billion during the Maha season 2014/2015, Secretary to the President P.B Abeykoon told a media briefing held at the Government Information Department today (24).He said that the the country was receiving massive paddy harvests and the government had allocated Rs. 10 billion to purchase paddy during the Maha season.

Accordingly, funds would be provided to farmer associations through District Secretariats.

Paddy would be purchased at government stipulated prices, making use of over 180 paddy storage facilities in the country, while providing relief for farmers, he added.He noted Cabinet decision to place stipulated prices for Keeri Samba at Rs. 50 per kilo, Samba at Rs 45 per kilo and Nadu at Rs. 40 per kilo. http://www.news.lk/news/business/item/7328-govt-purchase-150-000-mt-of-paddy-president-s-secretary

Rice seed scaling project launched 4/23/2015

Ghana News Agency (GNA)

Nyankpala, April 23, GNA – A project to overhaul the rice seed system and improve farmers' access to all rice seeds in the Northern and Upper East Regions has been launched.The three-year initiative dubbed: 'Rice Seed Scaling Project,' is being implemented by the Africa Rice Centre, in collaboration with the Agricultural Technology Transfer (ATT) Project, Savanna Agricultural

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Daily Global Rice E-Newsletter by Riceplus Magazine Research Institute of the Council for Scientific and Industrial Research (CSIR-SARI), Alliance for a Green Revolution in Africa (AGRA), and some selected private seed companies and extension agencies.

The United States Agency for International Development (USAID) is funding the project with one million dollars, while Africa Rice Centre is providing the technical support to ensure a successful implementation.The objective of the project is to amongst others, improve seed planning and connect actors along the rice seed value chain, as well as strengthen capacity of rice seed value chain actors to stimulate the development of a sustainable rice seed system in northern Ghana.The move is to ensure that 1.5 tons of quality breeder seeds are produced yearly

by SARI and purchased by private sector companies, 50 to 60 tonnes of quality foundation seeds are produced yearly by four private seed companies, and purchased by certified seed producers, and 2,000 to 2,500 tonnes of certified and quality declared seeds are produced yearly from 2016 by both certified seed producers and community-based seed producers and purchased by paddy rice producers.

Dr Stephen Nutsugah, Director of CSIR – SARI, said at the launch of the project at Nyankpala near Tamale on Tuesday that the project had come at an opportune time to enhance food security, reduce importation of rice and increase incomes of smallholder rice producers, traders and processors through increased production of good quality rice.Despite various initiatives by government to increase rice production, the country still has a demand-supply gap that is being filled through importation of more than 350,000 metric tonnes annually, costing more than 600 million dollars.

The country's total rice demand will reach some 820,000 metric tonnes yearly, in a few years' time for which a boost in domestic production becomes very paramount in meeting such rising demand.Dr Nutsugah, therefore, said the project would collaborate with other rice project initiatives, by delivering interventions that sought to address the challenges facing the country's rice industry, to ensure the production of increased and good quality rice to meet the rising demand.Dr Olupomi Ajayi, Consultant, Rice Sector Development and Risk Management Officer at Africa Rice Centre, said: "This project is unique because at the end of the project, we must leave behind a rice seed system that functions well and is sustainable and its impact should be felt by everyone involved in the seed system."

Dr Ajayi expressed gratitude to USAID for providing the financial support for the project, which would address the constraints and opportunities identified in the country's national seed policy.Mr Brian Conklin, Deputy Office Director / Agriculture Team Leader, Office of www.ricepluss.com R&D Section: Riceplus Magazine

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Daily Global Rice E-Newsletter by Riceplus Magazine Economic Growth of USAID, called for effective collaboration with other rice sector projects, to ensure the transformation of the country's rice industry.

GNA http://www.world-grain.com/news/news%20home/LexisNexisArticle.aspx?articleid=2349586916

USA Rice and Mexican Rice Council Talk TPP Lunch meeting between USA Rice and Mexican Officials TPP talk brings U.S. and Mexico to the table WASHINGTON, DC: As Trans-Pacific Partnership (TPP) negotiations enter their final stages and market realities come into sharper focus, USA Rice met yesterday with Ricardo Mendoza from the Mexican Rice Council and Norberto Ugalde of Mexico's National Council of Agriculture and Fisheries to discuss areas of mutual interest and concern. Mendoza and Ugalde are in the U.S. participating in discussions on the TPP and negotiating on behalf of Mexican agriculture and rice. "There are several areas where collaboration can benefit both of our industries," says Betsy Ward, "and we welcome this and future opportunities to share information and provide assistance to one another. It was a pleasure to visit these important Mexican agricultural leaders and talk about the trade relationship with our number one export market."

The U.S. and Mexican rice industries are particularly interested in the potential commercial impact if Mexico agrees to eliminate import duties on rice from Vietnam. Vietnam is a TPP partner and rice from that country faces a 20 percent import duty in Mexico while U.S. rice enters duty free under the North American Free Trade Agreement. www.ricepluss.com R&D Section: Riceplus Magazine

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Daily Global Rice E-Newsletter by Riceplus Magazine Contact: Sarah Moran (703) 236-1457

Improved Access for U.S. Rice Follows U.S.-Peru Agreement on Plant Health Issues (From left to right): Peruvian Ambassador to U.S. Luis Miguel Castilla, USDA Under Secretary Ed Avalos, Peruvian Minister of Agriculture Juan Manuel Benites, and translator

WASHINGTON, DC- Following nine years of collaboration with USDA's Animal and Plant Health Inspection Service (APHIS), USA Rice has reached a feasible resolution with Peru's National Service of Agrarian Health (SENASA) to fully open Peru's market to U.S. rice exports. According to the agreement, import permits, phytosanitary certificates, and fumigation will be required and USA Rice will publicize specific technical requirements once they are finalized. www.ricepluss.com R&D Section: Riceplus Magazine

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"Peru is one of those markets that has great potential for increased U.S. rice exports and we are grateful to USDA Under Secretary Ed Avalos for his work in improving market access for U.S. rice, said USA Rice Director of International Promotion Sarah Moran. "To this end, USA Rice will commence promotional activities in Peru this year, targeting importers, millers, foodservice operators, chef associations and other HRI operators."Exports to Peru increased nearly 1,000 percent from 2013 to 2014 and there is now potential for increased exports. The U.S.-Peru Trade Promotion Agreement (TPA), which was implemented in 2009, allows for 104,970 milled tons (MT) of U.S. rice to enter Peru duty free in 2015.

Contact: Michael Klein (703) 236-1458

CME Group/Closing Rough Rice Futures CME Group (Prelim): Closing Rough Rice Futures for April 24 Month

Price

Net Change

May 2015

$9.980

- $0.080

July 2015

$10.230

- $0.060

September 2015

$10.495

- $0.055

November 2015

$10.740

- $0.055

January 2016

$10.985

- $0.045

March 2016

$11.035

- $0.045

May 2016

$11.035

- $0.045

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

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By Helena Bottemiller Evich U.S. rice has reappeared on shelves of mainstream U.K. supermarkets after a nine-year absence in the wake of unapproved biotech varieties discovered in U.S. exports, according to the USA Rice Federation. The group took some credit, saying the new acceptance of U.S. rice came after its members flew to London last October to meet with retailers, importers, millers and wholesalers.

The U.S. rice sector has been campaigning for years to assure European and other markets that

there is no biotech rice left in the U.S. supplies. EU rice imports from the U.S. sank from 275,000 tons in 2005 to just 100,000 tons in 2006, the year that Bayer CropScience's unapproved biotech Liberty Link 601 rice was found in U.S. rice supplies, according to USDA data. By 2013, U.S. rice exports to the EU had sunk to just 177 tons.

Getty

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As the federal crop insurance program grows more complex, farmers are having a hard time keeping up.

By DAVID ROGERS 4/21/15 5:07 PM EDT

It‘s not quite calculus, but it‘s getting pretty close with all the bells and whistles Congress has added to the federal crop insurance program — now the biggest part of the safety net for American farmers.The newest refinement is something called yield exclusion, or YE for short, a little-debated provision in the 2014 farm bill which was added in the final talks on behalf of cotton and grain producers in the South and West hurt by the severe droughts of recent years.

Story Continued Below As its name suggests, the idea is to let growers exclude those especially bad years which lower their production score so important to calculating what level of revenue protection they can buy.

Among the qualified counties, preliminary data from the Risk Management Agency released Tuesday shows that about 19 percent of the policies sold thus far have taken advantage of the new provision. But it‘s corn, not cotton, leading the way — an added dividend on top of the concessions already won by corn growers in the commodity title.

Among 410,771 corn policies, for example, 28 percent or 115,452 chose yield exclusion. But among 73,681 cotton policies, the RMA said 19 percent or 13,904 took advantage of the YE option.Soybeans are close behind at 16 percent. Together corn and beans — two mainstays in the Midwest — account for 78 percent of the policies excluding one or more years.For most Americans, crop insurance is one big rabbit hole better left to Alice — or at least the House and Senate Agriculture committees. But jumping into the numbers is also an education to the challenges faced in shaping a farm safety net that is meaningful for major crops from one region to the next.

For policymakers, that‘s more and more the bottom line, as crop insurance has surpassed traditional commodity price support programs. But it also raises questions about how to balance the risks to the producer versus those to the taxpayer subsidizing the system.A recent report from the Government Accountability Office warns that higher-risk regions are already costing the program well beyond the premiums set by the RMA. Add in the new YE provision, and it puts RMA in something of a bind, caught between what seem to be two conflicting mandates.For the farmer, it‘s really a crash course in calculus. So many variables are in play, each impacting the optimal outcome.

Take a look at the most common form of coverage today: revenue insurance. The two major elements are a farm‘s expected yield, based on its average production history or APH, and the anticipated market price for the crop, which is based on futures contracts for each season.

Multiplying these two establishes a farmer‘s expected revenue. From that, he or she then decides what percentage or guarantee is affordable to keep the bankers at bay and ensure enough of a return to get back into the field next year.Since market prices are beyond a farmer‘s control, APH becomes all the more important. And even prior to the new farm bill, there were provisions to allow a grower to sub out some bad years or take advantage of new multipliers to reflect www.ricepluss.com R&D Section: Riceplus Magazine

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Daily Global Rice E-Newsletter by Riceplus Magazine improved technology that has increased yields for many crops.But YE goes a big step further, and when RMA released its multicolored maps this winter, the numbers for some regions were frighteningly high for insurance companies.

Dry land cotton growers in West Texas could throw out as many as 10 years. For non-irrigated corn, big sections of Kansas, Nebraska and South Dakota qualify for five or more years.Critics argue it‘s a new Wonderland and black eye for the larger crop insurance system.―It‘s a little bit like saying I have to insure all the red Corvettes driven by 16-year-olds in the high school parking lot, but I‘m going to exclude all the wrecks they have had when I come up with the rates,‖ said Bruce Sherrick, an agriculture economist at the University of Illinois. ―It‘s not a good actuarially conceived program.

It‘s not sound at all.‖Proponents of YE counter that the car insurance analogy breaks down on two points.First, nothing about YE changes the critical ―rate yield‖ index in RMA‘s premium formula — the factor best measuring the ―crash‖ history for an individual farmer. ―Those zeroes do count,‖ said Darren Hudson, a Texas Tech economist in the heart of cotton country. And the premiums set by RMA are already such that the added cost of the YE option scared off many cotton growers in what are already hard times. ―We are at a break-even price right now for cotton production,‖ said Gid Moore, a West Texas crop insurance agent. ―You‘re watching every penny you can, and you certainly can‘t afford to pay that much more.‖But the second and bigger philosophical point goes to the question of what crop insurance is all about.In the case of car insurance, Hudson said, ―you are insuring the full value of the vehicle and you are hoping you don‘t have a loss. But the premium is for the full value of the vehicle.‖For crop insurance, the farmer is looking to protect only a percentage of his or her revenues. ―If you are at a 50 percent coverage level, you have to lose 50 percent of your revenue before you get the insurance to pay anything,‖ Hudson said. But if a farmer‘s APH keeps falling with every drought year, even that 50 percent is not adequate as a safety net. ―What you end up doing is lowering the potential coverage that [the farmer] can purchase, which prevents that safety net mechanism from being a reality,‖ he added.―Yes there is a tradeoff,‖ Hudson said. ―There‘s always the potential — when you are talking about a subsidized unit — of inducing moral hazard behavior … But for most producers they want to find the cheapest way they can to protect them from the catastrophic loss that kicks them out of business next year. And I think the yield exclusion helps.

It gives them options on ways to manage that that they didn‘t have before.‖One such strategy is to use the new provision to increase a farm‘s APH and then back down on the percentage guarantee required.Take for example, a dry land cotton grower whose actual production over the past 10 years has averaged about 235 pounds per acre. By taking advantage of all adjustments allowed before the 2014 farm bill, the farm‘s APH could be increased to about 341 pounds.

When YE is then added to the mix, that APH can jump as high as 580 pounds per acre — more than double the 235 pound average.

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Daily Global Rice E-Newsletter by Riceplus Magazine For a 70 percent guarantee, the premium would be out of sight: more than $72 an acre. But if the farmer buys just a 50 percent guarantee, he or she can bring that premium back down to under $30 per acre. For a few extra dollars, that buys significantly more protection than the prior 70 percent guarantee on the lower 341 pound per acre APH.If it all seems a little wild, it is. But advocates of the new provision can also point to the same set of numbers to justify their case.Yes, the elevated APH is double the 10 year average for that same farm. But in at least three of those 10 years the farmer produced close to or far more than 580 pounds. That shows the potential is there in real life — and not some meaningless plug that rewards the good and bad. ―This is actually what somebody produced.

We might exclude some years here, but we are not deviating from the idea that this is somebody‘s actual history,‖ said John Anderson, a top economist with the American Farm Bureau. ―Yield exclusion wasn‘t about trying to give people something for nothing. It was really about trying to help people maintain a yield history that would give some meaningful level of coverage.‖―To the extent that crop insurance is part of that publicly-provided safety net, this issue of more or less universal access to it, is kind of important because that‘s what we have always had,‖ Anderson said. ―It would be a pretty big departure to say ‗We‘re going to rely on crop insurance and not have anything else, but you guys out here in the West, it‘s not going to work for you so we‘re going to cut you off‘.‘‖―Maybe it wasn‘t as big a deal when there were other programs out there which were really carrying the load in terms of the farm income safety net. But now that we are primarily relying on crop insurance, these issues really do come to the fore.‖In truth, the RMA numbers Tuesday are only a first glimpse of what lies ahead, and it is likely to take several years for the program to shake out.

Moore concedes that YE may prove more valuable than cotton growers first realized. The higher rate of participation by corn is not entirely a surprise, but those cotton producers who participated very likely excluded more years.But the Midwest Corn Belt also has some built in cost advantages. As a rule, it‘s judged a lower risk insurance area and enjoys lower premium rates. For $100 of coverage at a 75 percent guarantee level, it‘s estimated that a Kansas corn farmer has to pay close to $3.22 compared to $1.25 for a farmer in Illinois. Add to this the fact that the Illinois farmer may only need to exclude one year, the devastating 2012 drought season That means the added YE premium is not a show stopper.―The farm side decision is easy: you almost always take it,‖ said Sherrick.

And if the higher APH allows a farmer to buy a lower percentage guarantee, it also means the subsidy rate on his or her premium will be higher.―My personal opinion is it is not the right way to have coverage,‖ Sherrick said. ―If the policy goal was to have higher coverage, it seems to me there are more direct ways to do that. I think the risk of a black eye to the crop insurance industry at large is pretty great with this program. … When somebody says it‘s too expensive, they‘re either lying or uninformed. It‘s always cheaper for bushel for bushel coverage.‖On this much at least Anderson agrees: ―It‘s more complicated than it used to be when you were talking about simple price-based systems‖ for commodity programs,‖ he said. ―It‘s just a more complex world.‖

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Daily Global Rice E-Newsletter by Riceplus Magazine

http://www.politico.com/story/2015/04/new-crop-insurance-math-new-challenges-for-farmers117195.html#ixzz3YJf7u5Cz

Canada threatens heavy tax on Arkansas products Posted: Apr 24, 2015 4:14 AM PSTUpdated: Apr 24, 2015 4:25 AM PST

By Janelle Lilley, Reporter

On every slab of meat you buy at the grocery store is a label or two or three, telling you where the animal was born, raised and processed. Travis Justice of the Arkansas Beef Council calls that labeling process cumbersome and costly."Estimates I've seen anywhere from $10 to $20 per head, just for the labeling costs," said Justice.According to the World Trade Organization, the labeling practice is also a violation of our trade agreements with Canada and Mexico. Now Canada, our biggest importer, is threatening to drive up prices of American goods sold in their country if we don't change the labeling laws."They've already issued this hit list if you will to retaliate against our products if we do not change our rules," said Justice.Senator Tom Cotton took to the senate floor to plead for Arkansas agriculture. "Canada is Arkansas's number one foreign customer, and 66,000 Arkansas jobs depend on U.S. - Canada trade and investment which totals $2.3 billion every year," said Cotton.Cotton says Arkansas agriculture could see a $130 million impact if Canada follows through on the threat.

"Unfortunately, products already targeted for trade barriers include Arkansas rice, poultry, grains, and beef," said Cotton.Dow Brantley, like other Arkansas rice farmers, spent his day planting in the fields, all the while the threat of a tariff on his livelihood in the back of his mind."The threat is to go from a 0 tariff to a 100 percent tariff which could be devastating to us," said Arkansas Rice Federation Chairman Dow Brantley.The Obama administration is appealing the WTO ruling. That decision and Canada's reaction to it are expected next month http://www.katv.com/story/28885717/canada-threatens-heavy-tax-on-arkansasproducts?utm_source=USA+Rice+Daily%2C+April+24%2C+2015&utm_campaign=Friday%2C+December+13%2 C+2013&utm_medium=email

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