24th november 2014 daily global rice e newsletter by riceplus magazine

Daily Global Rice E-Newsletter by Riceplus Magazine www.ricepluss.com Vol 4,Issue XI

Daily Global Rice E-Newsletter

24th November, 2014

Today’s News Headlines…  Protectionism vs rent-seeking  Hard for Bulog to buy rice from farmers  Raw rice drops by Rs1,000/40kg to Rs1,5001,600/40kg  Government jumps to cushion rice price fall  Exporters risk losing traditional rice markets  Finance Minister says rice price in line with government's goal  Only zero-budget farming can double food production, says Palekar  Rice prices dip to year's low  PhilRice celebrates innovations  Student Chefs Demonstrate Versatility of Rice  CME Group/Closing Rough Rice Futures

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Daily Global Rice E-Newsletter by Riceplus Magazine News Detail….

Protectionism vs rentseeking

often leads to rent-seeking and predatory practices, which are now visible on a global scale.

Mahmud Ahmed Updated Nov 24, 2014 07:42am In view of trade surpluses, the federal government has levied a duty on wheat and sugar imports to protect farmers and sugar millers. Such temporary measures may be called for in times of stress originating from both domestic and international surpluses, or from market volatility.

However, these ‗relief measures‘ should serve as a breather without slackening national efforts to improve productivity and quality and making goods and services globally competitive price-wise. Quite often, this does not happen, perpetuating inefficiencies in the economy by the permanent embedding of subsidies and protectionist measures taken from time to time.

It can be argued that selective and temporary protectionism has picked up worldwide after the global financial turmoil of 2007-8 and the Great Recession that followed it. This has provided more sovereign space for national economic decision-making, as countries are focused on tackling domestic issues with shrinking global trade and business opportunities. Many states also tend to develop free trade within national frontiers, with restrictive international trade practices.

While such practices may appear to be a need for the argument for ‗infant industry‘ moving to a higher stage of productivity and economic development, it cannot be denied that protectionism breeds inefficiencies and

In case of the 30pc duty on wheat import, it may be advocated that agricultural produce is heavily subsidised by both Europe and the US — the world‘s most developed economy — even though only around 3pc of the American population is engaged in farming.

This protects western farmers from cheaper imports from developing states and emerging markets.

The temporary ‘relief’ in adverse circumstances may seem to be inescapable, but it should not be converted into rentseeking However, this is not a good example to follow. Subsidies can only be justified in very adverse circumstances, where there is also a strong determination to promptly remove the crutches when they are not needed. There is a strong evidence that subsides linger on and often get entrenched in the system.

The import duty on sugar may not be as justifiable as that for wheat, because the sugar industry has failed to develop in the direction where sugar could be a byproduct rather the core product of millers.

Sugar, like textiles, is a traditional industry that tends to thrive in ways that may often said to be questionable, such as by not making prompt payments to cane growers.

It‘s clout with the government comes under criticism from growers, particularly when cane crushing is delayed, which delayssowing and impacts the output of other major crops.

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Daily Global Rice E-Newsletter by Riceplus Magazine The country‘s agriculture suffers from low productivity. That is the core issue. It is also true that the unabated flow of resources from rural to urban areas denies farmers the earnings, savings and investment needed to modernise agriculture. As soon as the support price for wheat goes up, the suppliers of farm inputs increase the prices of their products which significantly denies the farmers the full benefits of the increase in support price.

The 20pc import duty on wheat will no doubt help farmers and so would exports of sugar (plus 30pc import duty on sugar imports). Such measures, repeated over time, have not helped improve farm or millers‘ productivity, which is among the lowest in the world.Latest reports show that the Economic Coordination Committee of the Cabinet has endorsed Rs32bn in cash assistance for growers to compensate them for the crash in prices of basmati rice. This one-off relief may help check any trend among farmers to reduce their area of cultivation in the next basmati season, as normally happens when the price of a crop drops sharply. Rice is an important export earner.

The temporary ‗relie‘ in adverse circumstances may seem to be inescapable, but it should not be converted into rentseeking. In these times, no economy can progress with crony capitalism, which has to be rooted out lock, stock and barrel to build a globally competitive national economy.It is time to primarily focus on the domestic market, with the top priority on food processing and exports; a sector in which the country has immense national advantage and an area that has been long neglected owing to erroneous policies.

The current global economic situation has provided more space for sovereign economic decision-making, and the

opportunity should be seized to build a selfreliant, sustainable and inclusive economy.

Capitalism needs to be further democratised in an environment of surging selfdetermination between and within nations, and growing pluralism.

Published in Dawn, Economic & Business, November 24th, 2014

Hard for Bulog to buy rice from farmers Senin, 24 November 2014 15:16 WIB | 465 Views

Palu, C Sulawesi (ANTARA News) The Central Sulawesi branch of State Logistics Agency (Bulog) finds it more difficult to buy rice from local farmers, because the price continues to edge up following the fuel price hikes.Local Bulog spokesman Maruf stated here on Monday that despite the ongoing grand harvest, Bulog is still unable to buy rice from the farmers.

"It is very difficult to get the rice at standard price set by the government, but we will continue to make every effort to buy it from rice mill centers in every district and city in the province," he said.Maruf noted that the price set by the government is Rp6,600 per kg, but Bulog has to buy it from the farmers at Rp7,500 per kg as the impact of the increase in subsidized fuel oil prices.

Consequently, he said the target of Bulog to procure 47 thousand tons of rice this year would not probably be met, because to date Bulog has just absorbed only 19

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Daily Global Rice E-Newsletter by Riceplus Magazine thousand tons, or 40 percent of the target.(*) Home / Business / Raw rice drops by Rs1,000/40kg to Rs1,500-1,600/40kg

Raw rice drops by Rs1,000/40kg to Rs1,5001,600/40kg Reported by: `Customs Today Report November 22, 2014

KARACHI: Rice exporters have warned Pakistan that it could lose its traditional rice markets if the government buys the commodity from farmers to guarantee them high prices.The Rice Exporters Association of Pakistan (REAP) has also asked the government to avoid buying rice from farmers, as it may destabilise the private sector.The association said the government should provide direct subsidy to farmers in order to support them. ―The government‘s involvement in such business activity (procurement) will be harmful to the private sector, which has invested billions of rupees to build an infrastructure and human resources,‖ Rafique Suleman, chairman of REAP, said in a statement.―In case of the government‘s involvement in rice business, we will lose huge foreign exchange, as well as the credibility, which the rice exporters have earned after long hard working.‖The price issue highlighted following reports of a pick-up in paddy harvest that has weakened its prices to at least 40 percent this season.

The price of paddy – raw rice – has dropped

by Rs1, 000/40 kilogram to around Rs1,

500-1,600/ 40 kilogram against the last year‘s price of Rs2, 500-2,600/40 kg.

Suleman demanded the government to give due consideration to the grievances of the rice industry and give free hand to the private sector for playing their positive role, boosting the economy, which is badly affected due to a number of reasons.He said the international market is depressed and all the rice exporting countries are facing tough competition and prices are on the decline. ―This is the market phenomena and due to the demand supply aspect, we see such trend in times and have to cope with it,‖ Suleman added.Growers, who lack the storage facility, have no other option, but to sell it, but buyers — notably the mill-owners and middlemen — are deliberately delaying the buying to pressurise the growers sell the crop at throwaway rates.

Farmers have asked the government to immediately announce subsidy to them through providing subsidised fertilisers, seeds and diesel for the next crop. They also demanded the government to fix a minimum export price at the previous year average export rate of $1,153/ton. This will help avert such price crisis at the growers end.The government should also not intervene through the Trading Corporation of Pakistan and Pakistan Agricultural Storage and Supplies Corporation.

Suleman recalled PASSCO, in the year 2008, procured 200,000 tons of rice at a premium price and ―even after six years they could not disposed of those stocks and ultimately government had to face losses of up to Rs24 billion.‖The RECP chairman also quoted the example of Thailand, where government procured the rice with higher prices, but the move damaged 17 million tonnes of rice in the absence of proper storage and warehouse facility and finally.

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Daily Global Rice E-Newsletter by Riceplus Magazine ―The Thai government suffered a loss of $30 billion.‖ Suleman said.He advised the government to support farmers, but ―this should be done through a proper mechanism‖.The government should compensate farmers in the shape of free seeds, free pesticides, free water, free fertiliser, free electricity and other facilities. ―As farmers are not equipped with the latest machinery and due to the mishandling, every year we have to see crop loss, further we could not get the right quality of rice,‖ Suleman added.

Government jumps to cushion rice price fall Published on Saturday, 22 November 2014 17:58 To prevent rice prices from plummeting due to limitations on trade with China, the Myanmar Rice Federation (MRF) will consider buying three million bushels of rice from the Ayeyarwady Region, according to General Secretary Ye Min Aung. ―We‘re now talking with Myanmar Oriental Bank to buttress the rice price. There‘s a rice surplus of three million bushels in the Ayeyarwady Region and 1.5 million bushels in the Bago Region. Someone must purchase them all to prevent the price from falling,‖ said Ye Min Aung.Rice prices are likely to continue to fall unless Chinese buyers resume their trade and, meanwhile, the MRF is trying to agree official rice exports for December.

―I‘m sure there is demand in China,‖ said Aung Than Oo, the deputy chairperson of MRF.Officials from China‘s Administration of Quality Supervision, Inspection and Quarantine, and Agriculture Ministry visited in September and signed the memorandum of understanding with Myanmar‘s Ministry of Agriculture and Irrigation to secure an official rice trade.An agreement for rice exports for January and February next year has already been reached with official exports starting next month.Currently, the government is planning to purchase unsold rice and the military will buy stocks in December while the Myanmar Agribusiness Public Corporation (Mapco) is also considering buying up stocks.Ye Min Aung said: ―We find it difficult to buy reserved rice and store it in warehouses.

I don‘t want to encourage the purchase of reserved rice. I want the millers and merchants to buy more as that is more beneficial in the long term but they need financial support to do so. They also have the responsibility to pay back that support.

So we‘ll buy it. The Mapco also plans to buy approximately 300,000 bushels of rice.‖Rice millers and merchants are in discussions to acquire three million bushels of rice from the Ayeyarwady Region.

Exporters risk losing traditional rice markets Salman Siddique Saturday, November 22, 2014 From Print Edition

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Daily Global Rice E-Newsletter by Riceplus Magazine KARACHI: Rice exporters on Friday warned Pakistan could lose its traditional rice markets if the government buys the commodity from farmers to guarantee them high prices.

The Rice Exporters Association of Pakistan (REAP) has also asked the government to avoid buying rice from farmers, as it may destabilise the private sector.The association, however, said the government should provide direct subsidy to farmers in order to support them.―The government‘s involvement in such business activity (procurement) will be harmful to the private sector, which has invested billions of rupees to build an infrastructure and human resources,‖ Rafique Suleman, chairman of REAP, said in a statement.―In case of the government‘s involvement in rice business, we will lose huge foreign exchange, as well as the credibility, which the rice exporters have earned after long hard working. ‖Suleman demanded the government to give due consideration to the grievances of the rice industry and give free hand to the private sector for playing their positive role, boosting the economy, which is badly affected due to a number of reasons.He said the international market is depressed and all the rice exporting countries are facing tough competition and prices are on the decline. ―This is the market phenomena and due to the demand supply aspect, we see such trend in times and have to cope with it,‖ Suleman added.The price issue highlighted following reports of a pick-up in paddy harvest that has weakened its prices to at least 40 percent this season.

The price of paddy – raw rice – has dropped

by Rs1,000/40 kilogram to around Rs1,5001,600/ 40 kilogram against the last year‘s price of Rs2,500-2,600/40 kg.Growers, who lack the storage facility, have no other option, but to sell it, but buyers — notably the mill-owners and middlemen — are deliberately delaying the buying to pressurise the growers sell the crop at throwaway rates.Farmers have asked the government to immediately announce subsidy to them through providing subsidised fertilisers, seeds and diesel for the next crop. They also demanded the government to fix a minimum export price at the previous year average export rate of $1,153/ton.

This will help avert such price crisis at the growers end.The government should also not intervene through the Trading Corporation of Pakistan and Pakistan Agricultural Storage and Supplies Corporation.Suleman recalled PASSCO, in the year 2008, procured 200,000 tons of rice at a premium price and ―even after six years they could not disposed of those stocks and ultimately government had to face losses of up to Rs24 billion.‖The RECP chairman also quoted the example of Thailand, where government procured the rice with higher prices, but the move damaged 17 million tonnes of rice in the absence of proper storage and warehouse facility and finally. ―The Thai government suffered a loss of $30 billion.‖ Suleman said.He advised the government to support farmers, but ―this should be done through a proper mechanism‖.The government should

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Daily Global Rice E-Newsletter by Riceplus Magazine compensate farmers in the shape of free seeds, free pesticides, free water, free fertiliser, free electricity and other facilities. ―As farmers are not equipped with the latest machinery and due to the mishandling, every year we have to see crop loss, further we could not get the right quality of rice,‖ Suleman added.

Finance Minister says rice price in line with government's goal Date : 24 พฤศจิกายน 2557 BANGKOK, 24 November 2014 (NNT)Finance Minister M.R. Pridiyathorn Devagula says the current price of rice is in line with the goal set by the government.

Following calls from rice farmers to have the government raise the subsidy price, the Finance Minister said the ongoing 8,000 baht per ton is a suitable rate. The government also has other programs that allow rice silo owners to take out loans from commercial banks at an annual interest rate of three percent, which the government would shoulder. e said he did not think the Commerce Ministry would release rice from its stocks at this time.

He added that the government is currently developing another farmer assistance program, which will be ready next month, to help them supplement their incomes through other types of crop growing. The Finance Minister further added that his Ministry has been trying to get large organizations involved in the loan scheme for low income families. The interest rate would be around 3% per month, or 36% per year. M.R.

Pridiyathorn is scheduled to visit China on November 27th to join Joint Trade and Investment Committee conference, where he is determined to encourage Chinese investors to build rubber factories in Thailand.

Only zero-budget farming can double food production, says Palekar M_A_SRIRAM;THE HINDUFarmer Krishnappa displaying arecanut cultivated with zero-budget farming. PHOTO: M.A. SRIRAM Advocate of zero-budget spiritual farming Subhash Palekar has claimed that farmers‘ suicide in the country was observed among those practicing the chemical-farming methods.Making a plea for encouraging chemical-free farming, Mr. Palekar said there were nearly 4 million farmers practicing zero-budget farming in the country who were prospering. Mr. Palekar, who interacted with media persons here on Saturday, said there was not a single example of farmers practicing zero-budget farming committing suicide, due to higher yield and low cost input.

Zero-budget agriculture entails no external chemical inputs like fertilizers or insecticides.While chemical farming methods yield about 12 quintals of basmati rice per acre, under the zero-budget farming method, yield was observed to be as high as 18 to 24 quintals, according to Mr. Palekar.

Similarly, about 6 quintals of wheat per acre was the normal yield while it was 18 quintals under zero-budget farming.The country‘s food output cannot be doubled through chemically-intensive agriculture methods or even conventional organic

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Daily Global Rice E-Newsletter by Riceplus Magazine agriculture. Only zero-budget farming was could meet the country‘s food requirements.

Despite the obvious advantages of alternative methods, not many farmers were switching over to it due to government policies which link all credit, marketing, and insurance facilities to chemical-based agricultural practices, said Mr. Palekar.

More popular He noted that the alternative method of farming was more popular in Karnataka, than in Maharashtra, Uttar Pradesh or Bihar.He came down heavily on the organic farming policy of the State government on the grounds that it was more expensive than chemical-based agriculture. In Mysore region, there were nearly 400 to 500 farmers who had switched over to zero-budget agriculture and Karnataka Rajya Raitha Sangha leader Badagalpura Nagendra said the organisation was working to create awareness among farmers about its benefits.

Rice prices dip to year's low Published: 24 Nov 2014 at 18.06 Local rice prices have hit the year's low at 28,900 baht a tonne for 100% premium Hom Mali variety this month. The prices dropped by around 15% year-on-year, according to commerce ministry data.Export prices also slipped by 18% to US$863 for Grade B Hom Mali, compared to $1,053 in November last year.Vichien Phuanglamjiak, vice-president of the Thai Rice Farmers Association, said the group would ask the prime minister to help shore up paddy prices."Paddy prices for the 2014/15 crop year are now 50% lower than the pledging price of the previous government.

Hom Mali paddy is sold at 9,000 to 12,000 a tonne from 16,000 while sticky paddy slid to 7,000-8,000 from 13,000 baht," he said.Pol Lt Chareon Laothammatas, president of the Thai Rice Exporters Association, said his group had urged the commerce minister to ask some 200 rice exporters to build their stocks now, a move that could mop up 100,000 tonnes of the glut and costs 2.7 billion baht.The 10 largest exporters have also been asked to buy 300,000 tonnes of Hom Mali rice and expand their stocks, costing 8 billion baht.

PhilRice celebrates innovations November 24, 2014 QUEZON CITY, Nov. 24 -- The Philippine Rice Research Institute (PhilRice) renewed its commitment to the Filipinos by inspiring innovations and rural transformation during its recent 29th anniversary.Dr. Eufemio T. Rasco Jr, PhilRice executive director in a statement, said that the Institute`s advances in research and development show the rice workers` efforts in helping the country provide enough rice and foster progress in rural areas.In 2013, PhilRice released 10 new early-maturing varieties for saline, irrigated, and rainfed lowland areas. NSIC Rc3442SR, an aromatic special that is moderately resistant to green leaf hopper, was also released.

We have achieved sustained progress in rice production by providing Filipino farmers with new high-yielding rice varieties. [Last year was] also remarkable with the National Year of Rice campaign. [During this campaign], we led many Filipinos in sending a unified message that each of us can help attain rice sufficiency and this year,

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Daily Global Rice E-Newsletter by Riceplus Magazine we [upheld] that message by motivating everyone to be responsible rice consumers,‖ Rasco said.The 29-year-old agency spurred innovations such as the development of nutri-rice milk, Metarhizium anisopliae in powder form, and hydrous bioethanol fuel injector for spark-ignition engines.NutriRice milk is a healthy drink made from germinated brown rice containing Gamma Amino Butyric Acid, which improves brain and cardiovascular functions and can slow down the effects of ageing.

On the other hand, Metarhizium anisopliae is a fungal microbial agent that controls rice black bug – a pest that can reduce yield up to 80 percent and cause complete crop loss due to bug burn.―[Other than our researches], we also launched an ambitious rural transformation campaign aiming to reduce poverty through our Gusto namin milyonaryo kayo advocacy,‖ Rasco said.Under the "Gusto namin milyonaryo kayo campaign", diversified farming and agri-business ventures will be promoted through nucleus estates across the country starting from 10 PhilRice stations. Nucleus estates will be put up to give farmers access to support services including training, input, custom services, modern support technologies, product development and packaging, and marketing.

In preparing farmers for the ASEAN integration, PhilRice launched the Palayabangan: The 10-5 challenge, a national competition, which aims to find out technologies that will produce rice at the least cost without sacrificing yield.

Competition results show that farmers can yield 10.54 t/ha for P4.94/k. Average input

cost is at P11/k.Aurelio M. Umali, Nueva Ecija governor, lauded the Institute‘s contributions in the country`s rice granary.―[While working with] PhilRice for the past years, I have witnessed, with considerable pride, how your tremendous and highly successful efforts in the field of agricultural research and development [propelled] rural progress.

Truly, you are at the forefront of agricultural innovation. Your work to boost agricultural productivity is integral in our efforts to secure the welfare of our farmers and enhance Nueva Ecija`s reputation as the Rice Granary of the Philippines,‖ he said.Meanwhile, Department of Agriculture Sec. Proceso J. Alcala said that PhilRice was efficient and productive in addressing the challenges in the agriculture sector. Alcala said that PhilRice helped the country increased its local rice supply. In 2013, the Philippines produced 18.44 million metric tons of rice, making it the fastest growing rice-producing country in Asia.

PhilRice, created through Executive Order 1061 signed on November 5, 1985, also honored more than 100 of its research and development workers.Honourees were led 2 international awardees; 7, national; and 2, regional. Recipients of 3 international best poster awards; 19, national; 7, best paper international awards; and 12, national were also recognized.The institution also recognized 36 loyalty awardees and welcomed 3 PhDs and 9 master`s graduates.(PhilRice)

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Daily Global Rice E-Newsletter by Riceplus Magazine Student Chefs Demonstrate Versatility of Rice MEXICO -- Last month, the USA Rice Federation conducted three Student Chef Competitions in Puerto Vallarta and Nuevo Vallarta. Competitors presented a variety of avant-garde rice dishes and demonstrated first-hand that rice is the ideal ingredient for restaurant-quality dishes. Directors at the various culinary institutions were impressed with the competition and, seeing the great benefit for the professional development of their students, announced they would be conducting another rice cooking competition on their own in December.

Additionally, they plan to hold a contest with all the universities in the region that have culinary programs to increase awareness of the versatility of rice.Puerto Vallarta and Nuevo Vallarta are premier tourist destinations and have some of Mexico's most luxurious resorts. The cities host renowned international gourmet festivals with award winning chefs from around the world. "There is a high demand for gourmet cuisine in Puerto Vallarta and Nuevo Vallarta," said Sarah Moran, USA Rice director of international promotions.

"Our goal is to encourage the hotel and restaurant industry in the region to use more rice on their menus as a way to provide

patrons with elegant gourmet meals while increasing profits."

Contact: Deborah Willenborg (703) 236-1444

CME Group/Closing Rough Rice Futures CME Group (Preliminary): Closing Rough Rice Futures for November 24

Month

Price

Net Change

January 2015

$12.445

- $0.150

March 2015

$12.720

-$0.135

May 2015

$12.960

- $0.135

July 2015

$13.165

- $0.130

September 2015

$12.320

- $0.130

November 2015

$12.220

- $0.130

January 2016

$12.220

- $0.130

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