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2nd May, 2014

Chinese COLOR SORTER as low as Pak Rs 22 Lakh Only A Time Limited Offer Contact: Cell: 0300 414 3493

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TOP Contents - Tailored for YOU Latest News Headlines…  India Basmati Exports to Iran Slow amid Quality Restrictions  U.S. Approves Request by the Philippines to Continue Quantitative Restrictions on Rice Imports  Lower Rice Stocks in India Countered with Higher Stocks Elsewhere will Reduce Global Market Impact of El Niño  Oryza Rice Currency Analysis for Today – Currencies Little Changed  Oryza U.S. Rough Rice Recap – Prices Hold Steady As Export Sales Disappoint  Oryza Afternoon Recap – Chicago Rough Rice Futures Close Slightly Lower as Tumbling Grains Exert Downward Pressure  Solvency Continues to Elude Thailand Rice Mortgage Scheme; Elections Scheduled For July 20  Former Deputy Prime Minister of Australia Stresses Rice Productivity, Remains Hopeful about Trade  U.S. Approves Request by the Philippines to Continue Quantitative Restrictions on Rice Imports  Asia Rice Quotes Unchanged Today  Oryza Overnight Recap - Chicago Rough Rice Futures Little Changed Overnight as May Contract Enters Delivery Period  Oryza Global Rice Quotes  Oryza Overnight Recap - Chicago Rough Rice Futures Little Changed Overnight as May Contract Enters Delivery Period  Oryza April 2014 Rice Market Review

News Detail… India Basmati Exports to Iran Slow amid Quality Restrictions May 01, 2014

India's basmati rice export pace to Iran has declined to around 55,210 tons in March 2014 from around 130,000 tons in January 2014, due to quality restrictions imposed by the Middle East nation since the beginning of this year, according to data from the All India Rice Exporters Association (AIREA).Sources in India's Commerce Ministry told local media that since January 2014, Iran has been seeking a series of documents, including the good agricultural practices (GAP), ISO 22000 (dealing with food safety management and packaging protocols) and "non-genetically modified crop" certification, from the Indian exporters. The sources noted that the Iranian

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authorities also want the Indian basmati rice exporters to get quality approval stamps from multiple global agencies, designated by them. In March 2014, Iran has revised the "accepted level" of arsenic in basmati rice from 150 ppm (parts per million) to 120 ppm and wanted Indian exporters to specify the level of arsenic on each pack for easy traceability.Officials in the Commerce Ministry of India say the Indian exporters are ready to meet all quality standards prescribed by Iran, but obtaining certifications from multiple global agencies is delaying things, and is affecting the pace of basmati exports to Iran. Local sources say that the Indian Commerce Ministry has invited a team of experts from Iran to inspect rice procurement and processing facilities in India.Indian basmati rice exporters view Iran as a key market and are planning to adhere to all standards prescribed by the Iranian authorities. India's basmati rice exports to Iran constitute over 30% of its total basmati rice exports. They are also reportedly seeking a single-window clearance for all the export shipments, according to local sources. India has set up a rupee settlement mechanism with Iran from April 2012 to avoid sanctions from the West.India exported around 4 million tons of basmati rice in FY 2013-14 (April - March), up about 14% from around 3.5 million tons in FY 2012-13. India's total rice exports, including non-basmati exports, stand at around 10.5 million tons in FY 2013-14, up about 3% from around 10.2 million tons exported in FY 2012-13, according to data from AIREA. Tags: India rice exports, indian basmati, basmati rice exports, basmati rice imports, Iran rice imports

U.S. Approves Request by the Philippines to Continue Quantitative Restrictions on Rice Imports May 01, 2014

The U.S. has approved the request by the Philippines to continue with quantitative restrictions (QRs) on rice imports until 2017, according to the Agriculture Secretary of the Philippines. The development came after the Philippines World Trade Organization (WTO) mission requested for the extension of QRs on rice during the Council for Trade in Goods meeting in Switzerland on April 9, 2014.According to sources from the Department of Foreign Affairs, both the U.S. and the Philippines governments will formally sign an agreement regarding the continuation of QRs on June 1, 2014. In 1995, the WTO allowed the Philippines to impose a 10-year quota system for its rice imports and in 2004, the WTO extended the quota system for another five years until 2012. Since then, the Philippines has been requesting for a further extension of the quota system until 2017 to protect local farmers. Last year, China, India, Indonesia and Vietnam approved the Philippines recent request. Now with the U.S. supporting the QR extension, approvals from Australia, Canada, and Thailand are pending. The Assistant Agriculture Secretary of the Philippines told local sources that negotiations are ongoing with the three countries.Under the QR system, the Philippines can import 350,000 tons of rice annually under the Minimum

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Access Volume (MAV). Imports under the MAV quota are levied a duty of 40%, while imports above the MAV quota are levied a 50% import duty.The USDA estimates the Philippines will import around 2 million tons of rice in MY 2013-14 (July – June), including about a half million tons of smuggled rice imports, and the UN’s Food and Agriculture Organization estimates the country to import around 1.2 million tons of rice in 2014 (January – December). Tags: quantitative restrictions (QRs), Philippines rice imports, trade barriers, trade tarrifs

Lower Rice Stocks in India Countered with Higher Stocks Elsewhere will Reduce Global Market Impact of El Niño Analysts are betting that higher global rice stocks in 2013-14 will reduce the impact El Niño may have on global rice markets. Data from the International Grain Council (IGC) shows that the London-based research organization is forecasting lower rice stocks in India but higher stocks in China, Thailand, Vietnam, and Pakistan. The Wall Street Journal reports, “Asian economies look better equipped to deal with a return of El Niño this year than in the past, easing worries of a repeat of past havoc wreaked on food prices and supplies.

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�Global milled rice consumption is also expected to reach an all-time high of about 475 million tons in 2013-14, up about 1.5% from last year, according to IGC. Carryover stocks are expected to reach at about 111 million tons in 2013-14, up about 1% from last year, due to higher rice expected in India and Thailand.IGC project global milled rice production will reach at about 475 million tons in 2013-14, up about 1% from about 471 million tons expected in last year and up about 1 million tons from last month's projection, due to higher production is expected from far east Asia, including

Bangladesh, Indonesia, Pakistan and India. Meanwhile rice production in China, U.S. and Thailand is expected to decline by about 0.4%, 5% and 0.3% respectively from last year due to reduction in average yield. Rice

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production is also expected to increase in Brazil by about 7% to about 8.6 million tons in 2013-14 from last year.The London-based IGC predicts the global rice trade to increase to about 39 million tons in 2013-14, up about 3% from about 38 million tons in 2012-13 due to increased imports by China, Indonesia and the Philippines in 2014.

Tags: El Niño, International Grain Council, Global rice stocks

Oryza Rice Currency Analysis for Today – Currencies Little Changed May 01, 2014

U.S. dollar index was up +0.07% from the open today, when it traded at 79.526 at the close. Euro was almost unchanged by the close, trading around 1.3866 by end of day, after trading between an intraday high of 1.3889 and low of 1.3863. Thai baht was weaker -0.03%, trading at 32.375 at the close of business. Indian rupee was unchanged at 60.3550. Brazilian real was stronger +0.17% at the close of trading today, trading at 2.2323 reais per dollar. Pakistan rupee was -0.06% weaker at 98.6250. Vietnamese dong was unchanged at 21083. Mexican peso was stronger +0.28% today, when it traded at 13.0434 pesos per dollar by the close of business. Chinese yuan was almost unchanged, trading at 6.2598. Argentine peso was unchanged at 8.0013 pesos per dollar. Tags: foreign exchange rates, rice currency, Global rice trade

Oryza U.S. Rough Rice Recap – Prices Hold Steady As Export Sales Disappoint As of today, a few old crop offers were still seen near $15.55 per cwt fob farm (about $343 per ton) for nearby shipment however most farmers are asking for at least $16.11 per cwt fob farm (about $355 per ton).Old crop bids from larger mills were decreased slightly today to around $15.25 per cwt (about $336 per ton) for May

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delivery while bids for exporters were unchanged near $15.50 per cwt (about $342 per ton), for the same delivery period, both of which received zero interest. In the meantime, today the USDA reported that cumulative net export sales for the week ending on April 24th, totaled 11,800 tons, which was 83% lower than last week and 79% lower than the prior 4-week average. Increases were reported for the following destinations including: 6,300 tons to Haiti, 1,800 tons to Canada, 600 tons to Saudi Arabia, 500 tons to Honduras, and 400 tons to Japan.U.S. rice exporters shipped 56,000 tons, which was 18% lower than the previous week but 10% higher than the prior 4-week average. The primary destinations included: 13,000 tons to Japan, 10,700 tons to Costa Rica, 6,300 tons to Haiti, 6,100 tons to Honduras, and 4,500 tons Mexico. Tags: U.S. rice prices

Oryza Afternoon Recap – Chicago Rough Rice Futures Close Slightly Lower as Tumbling Grains Exert Downward Pressure May 01, 2014

Chicago rough rice futures for Jul delivery settled 4 cents per cwt (about $1 per ton) lower at $15.515 per cwt (about $342 per ton). A broad based selloff saw the other grains finished the day sharply lower; soybeans closed about 3.4% lower at $14.6100 per bushel; wheat finished about 2% lower at $7.0725 per bushel, and corn finished the day about 2.3% lower at $5.0700 per bushel.U.S. stocks fluctuated on Thursday, a day after the Dow Jones Industrial Average rose to a record finish, as investors took a cautious approach a day before the April nonfarm payrolls report. A separate report from the Commerce Department on Thursday had consumer spending jumping the most in nearly five years in March, up 0.9 percent, while the Institute for Supply Management's factory index rose to 54.9 in April from 53.7 the month before. Thursday's data comes before Friday's April employment report, with the government expected to report nonfarm payrolls increasing by 210,000 last month. Trading in a 75-point range on either side of neutral, the Dow Jones Industrial Average was recently up 12.96 points, or 0.1%, at 16,593.80. Rising to within reach of its record closing high hit on April 2, the S&P 500 was lately ahead 4.04 points, or 0.2%, at 1,887.99, with consumer discretionary faring best and consumer staples falling hardest among its 10 major industry groups. The Nasdaq rose 30.57 points, or 0.7%, to 4,145.13. Gold is trading about 1% lower, crude oil is seen trading about 0.4% lower, and the U.S. dollar is seen trading slightly higher at about 1:00pm Chicago time.Wednesday, there were 448 contracts traded, down from 1,132 contracts traded on Tuesday. Open interest – the number of contracts outstanding – on Wednesday increased by 28 contracts to 8,032. Tags: U.S. rough rice futures

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Solvency Continues to Elude Thailand Rice Mortgage Scheme; Elections Scheduled For July 20 May 01, 2014

Thailand continues to struggle to pay farmers who pledged rice under the government's rice pledging scheme. Efforts are further inhibited due to political uncertainty over the legitimate powers of the caretaker government. Following the disrupted February 2 election, Thailand this week announced fresh elections will take place on July 20, though protesters are again likely to disrupt voting.“No real excitement about the next election? Apparently, Thais are being bored into submission,� said a social media commentator, the Financial Times reports.The government managed to raise about 8 billion baht ($250 million) from the "fund to help farmers", which was launched in early April, 2014. The government sought donations as well as investments (at modest return) from the public. However, the amount raised is only 9% of the total funds of about 90.5 billion baht (around $2.8 billion) owed to the farmers. The Fund failed to achieve desired result as local government bodies refused to deposit money in it considering it to be a risky investment.The government borrowed around 20 billion baht (around $618 million) from the Central Budget during the third week of March, 2014 to make payments to farmers, but it has to repay the amount to the Finance Ministry before May 31, 2014. According to the Caretaker Finance Minister, the government has already repaid around 15.4 billion baht (around $476 million) of the 20 billion baht (around $618 million) borrowed.Now, the government is understood to be considering borrowing another 40 billion baht (around $1.2 billion) from the Central Budget. After a cabinet approval, the government has to seek the approval of the Election Commission to borrow this amount. Analysts say it is doubtful whether the government would get an approval for this borrowing as the government cannot spend the Central Budget meant for rural development on such risky programs. The only hope left with the government is to raise funds by selling rice from its huge stockpiles, estimated at about 10 million tons. The government is targeting to sell around one million tons of rice, raising 8 - 10 billion baht (around $248 - $310 million) every month. But these excessive sales are putting a downward pressure on the domestic as well as export prices and the Thai Rice Exporters Association (TREA) is urging the government to find other means of raising money to avert price falls.The government has spent around $780 billion baht (around $24 billion) on rice pledging program from October 2011 to February 2014, according to the Bank for Agriculture and Agricultural Cooperatives (BAAC). While analysts predict huge losses from the rice pledging scheme, the government has so far not disclosed the full extent of the losses to the public. Tags: Thailand rice mortgage scheme, Thailand rice exports, thailand political uncertainty

Former Deputy Prime Minister of Australia Stresses Rice Productivity, Remains Hopeful about Trade

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May 01, 2014

Former Deputy Prime Minister of Australia has stressed on the importance of increasing research in the country to boost rice productivity, according to local sources.The former Minister, who is a rice farmer himself, stated that there was a lot of scope for rice research in the country especially in the light of changing climatic conditions. As climate is changing very quickly, there is a need to develop newer varieties of rice, which can adapt quickly to climate changes, he says, adding that the government has to act fast on this issue. He urged the government to allot necessary funding to rice research.Citing the research work done by the Philippines-based International Rice Research Institute (IRRI), the former deputy Prime Minister said though the IRRI pioneered in developing several varieties of rice, it has so far not developed a rice variety that "does not require water to stay warm to prevent sterilization in the maturing phase. " He told local sources that developing rice varieties, which could provide more yield (without making significant changes to soil or adding fertilizers) while adapting to climate changes and releasing lesser amounts of methane and other green gases into the atmosphere is important; and that could be promising to the country's rice sector. While Ricegrowers Association of Australia (RGA) and the National Farmers’ Federation (NFF) expressed dissatisfaction over not including rice in the recently concluded Japan-Australia Economic Partnership Agreement (JAEPA) and Australia Korea Free Trade Agreement (KAFTA), the former Deputy Prime Minister assured them that increased research in the rice sector could help Australian rice gain wider acceptance. Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) estimates paddy rice production in Australia at about 907,000 tons (653,000 tons basis milled) in 2013-14, down about 22% from about 1.66 million tons (840,000 tons basis milled) produced in 2012-13 due to current drought conditions. It estimates paddy rice production in 2014-15 to further decline to 899,000 tons. ABARES estimates Australia to export 513,000 tons of rice in 2013-14, down about 12% from about 584,000 tons of rice in 2012-13. It expects exports to further decline to 386,000 tons in 2014-15. Tags: Australia rice production, Australia rice exports

U.S. Approves Request by the Philippines to Continue Quantitative Restrictions on Rice Imports May 01, 2014

The U.S. has approved the request by the Philippines to continue with quantitative restrictions (QRs) on rice imports until 2017, according to the Agriculture Secretary of the Philippines. The development came after the Philippines World Trade Organization (WTO) mission requested for the extension of QRs on rice during the Council for Trade in Goods meeting in Switzerland on April 9, 2014.According to sources from the Department of Foreign Affairs, both the U.S. and the Philippines governments will formally sign an agreement regarding the continuation of QRs on June 1, 2014.

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In 1995, the WTO allowed the Philippines to impose a 10-year quota system for its rice imports and in 2004, the WTO extended the quota system for another five years until 2012. Since then, the Philippines has been requesting for a further extension of the quota system until 2017 to protect local farmers. Last year, China, India, Indonesia and Vietnam approved the Philippines recent request. Now with the U.S. supporting the QR extension, approvals from Australia, Canada, and Thailand are pending.

The Assistant Agriculture Secretary of the Philippines told local sources that negotiations are ongoing with the three countries.Under the QR system, the Philippines can import 350,000 tons of rice annually under the Minimum Access Volume (MAV). Imports under the MAV quota are levied a duty of 40%, while imports above the MAV quota are levied a 50% import duty.The USDA estimates the Philippines will import around 2 million tons of rice in MY 2013-14 (July – June), including about a half million tons of smuggled rice imports, and the UN’s Food and Agriculture Organization estimates the country to import around 1.2 million tons of rice in 2014 (January – December). Tags: quantitative restrictions (QRs), Philippines rice imports, trade barriers, trade tarrifs

Asia Rice Quotes Unchanged Today May 01, 2014

India rice sellers kept their quotes mostly unchanged today. Thailand, Vietnam and Pakistan rice sellers are out today for holiday. 5% Broken Rice Thai 5% rice (of new crop) was last quoted around $370 - $380 per ton, about $15 per ton discount to Viet 5% rice last shown around $385 - $395 per ton. Indian 5% rice is quoted around $415 - $425 per ton, on par with Pak 5% rice last quoted around $415 - $425 per ton. 25% Broken Rice Thai 25% rice of the old crop was last quoted about $340 - $350 per ton, about a $15 per ton discount to Viet 25% rice last shown around $355 - $365 per ton. Indian 25% rice is quoted around $370 - $380 per ton, about a $5 per ton premium over Pak 25% rice last quoted around $365 - $375 per ton. Parboiled Rice Thai parboiled rice of the old crop was last quoted around $410 - $420 per ton. Indian parboiled rice is quoted around $395 - $405 per ton, about $40 per ton discount to Pak parboiled rice last quoted around $435 - $445 per ton. 100% Broken Rice

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Thai broken rice, A1 Super, of the old crop was last quoted around $300 - $310 per ton, about a $35 per ton discount to Viet broken rice last shown around $335 - $345 per ton. Indian broken sortexed rice is quoted around $295 - $305 per ton, about a $25 per ton discount to Pak broken sortexed rice last quoted around $320 - $330 per ton. Tags: asia rice trade, Asia rice prices, asian rice quotes

Oryza Overnight Recap - Chicago Rough Rice Futures Little Changed Overnight as May Contract Enters Delivery Period May 01, 2014

Chicago rough rice futures for Jul delivery are currently paused 0.5 cents per cwt (about $0.11 per ton) lower overnight at $15.550 per cwt (about $343 per ton) as of 8:00am Chicago time. The other grains are seen lower this morning ahead of floor trading in Chicago: soybeans are currently seen about 0.6% lower, wheat was paused about 0.6% lower, and corn is noted about 0.6% lower. U.S. stock index futures were little changed on Thursday as investors considered a slew of economic data. Economic data had personal income up 0.5 percent and personal spending up 0.9 percent in March, while initial jobless claims rose by 14,000 to 344,000 last week. Early trade in Asia and Europe was boosted by the Dow Jones Industrial Average's record close on Wednesday. This came after the Federal Reserve reduced its monthly bond-buying program by another $10 billion to $45 billion a month, its fourth cut in a row. The Fed also indicated that economic growth was accelerating, even as official data showed that first-quarter gross domestic product inched up just 0.1% from the previous quarter, a full percentage point below expectations. Attention now turns to the release of Friday's non-farm payrolls report. Reuters is predicting a 200,000 gain in April jobs, which would be a modest improvement from March's 192,000. U.S. stock index futures are currently trading about 0.1% lower, gold is currently trading about 1.2% lower, crude oil is seen trading about 0.9% lower, and the U.S. dollar is currently trading about 0.1% higher at 8:00am Chicago time. Tags: U.S. rice prices; U.S. rice market; Chicago rough rice futures

Oryza Global Rice Quotes May 1st, 2014

Long grain white rice - high quality Thailand 100% B grade 385-395 Vietnam 5% broken 385-395 ↔ India 5% broken 415-425 ↔

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Pakistan 5% broken Cambodia 5% broken U.S. 4% broken Uruguay 5% broken Argentina 5% broken

415-425 435-445 580-590 620-630 615-625

↔ ↔ ↔ ↔ ↔

Long grain white rice - low quality Thailand 25% broken 340-350 ↔ Vietnam 25% broken 355-365 ↔ Pakistan 25% broken 370-380 ↔ Cambodia 25% broken 410-420 India 25% broken 370-380 ↔ U.S. 15% broken 555-565 ↔

Long grain parboiled rice Thailand parboiled 100% stxd 410-420 Pakistan parboiled 5% broken stxd 435-445 India parboiled 5% broken stxd 395-405 U.S. parboiled 4% broken 660-670 ↔ Brazil parboiled 5% broken 590-600 ↔ Uruguay parboiled 5% broken NQ ↔ Long grain fragrant rice Thailand Hommali 92% 935-945 Vietnam Jasmine 515-525 ↔ India basmati 2% broken 1515 -1525 Pakistan basmati 2% broken NQ ↔ Cambodia Phka Malis 870-880 ↔ Brokens Thailand A1 Super 300-310 ↔ Vietnam 100% broken 335-345 Pakistan 100% broken stxd 320-330 Cambodia A1 Super 350-360 ↔ India 100% Broken stxd 295-305 Egypt medium grain brokens NQ ↔ U.S. pet food 470-480 ↔ Brazil half grain 345-355 ↔ Medium grain milled U.S. Calrose 4% broken 1070-1080 Egypt medium grain 6% NQ ↔

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↔ All prices USD per ton, FOB vessel, oryza.com

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Oryza April 2014 Rice Market Review May 01, 2014

The Oryza White Rice Index, a weighted average of global white rice export quotes, ended the month at $450 per ton, down about $3 per ton from a month ago and down about $34 per ton from a year ago. The Oryza WRI declined this month mainly due to the softness in Thailand rice quotes. Thailand remained the cheapest origin and Brazil remained the most expensive origin again this month. Meanwhile, declining Indian rice quotes were offset by the higher quotes in Pakistan. Thailand

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Thailand 5% broken rice quotes ended the month at about $375 per ton, down about 3% from a month ago and down about 30% from a year ago. Thailand said it will hold a fresh election on July 20, 2014, after the Constitutional Court invalidated its February 2, 2014 poll in April 2014. This election will decide the fate of Thailand's rice pledging scheme, which was discontinued in the end of February 2014, after cost the country to more than 700 billion Baht (about $21.5 million, using historical exchange rate), with losses projected to exceed 200 billion baht (about $6 million, using historical exchange rate). Meanwhile Thailand's caretaker Finance Minister suggests that new government should continue with the previous scheme to help rice farmers in country. Separately, the newly elected president of the Thai Rice Exporters Association (TREA) said if the scheme must continue, the pledging volume and payments should be limited to contain the damage. The Department of Foreign trade has set a higher standard for Thai Hommali rice exports to increase the premium rice's value in the international market. According to the new standards, export quality Hommali rice must contain at least 98% of Thai jasmine rice, compared to 92% in the old standard. In addition, Thailand's Public Warehouse Organization (PWO) has signed a rice deal with a China's government company to supply 20,000 tons of Hommali fragrant rice at an average price of 30,000 baht (about $928.4) per ton, according to Thai media sources. The trade is hoped to refresh the perception of Thailand rice after importers were mixing it with Vietnam rice during the high prices of the mortgage scheme. Thailand’s government has sold about 700,000 tons of rice in the 10 AFET auctions so far, and another 300,000 tons of rice will be auctioned before June. Thai Rice Exporters Association data shows Thailand exported about 1.4 million tons of rice in the first two months of the year; at that pace, exports would reach about 8.4 million tons by year end. India India 5% broken rice ended the month at $420 per ton, down about 2% from a month ago and down about 6% from a year ago. Average monthly wholesale rice prices in India increased to about Rs.3,002 per quintal (about $495 per ton) in April 2014, up about 6% from about Rs.2,821 per quintal (about $470 per ton) in March 2014, and up about 22% from about Rs.2,582 per quintal (about $475 per ton) in April 2013. The increased in USD terms is not as pronounced due to the decline of the rupee against the dollar. India's rice stocks in the nation’s central pool reached at about 30.25 million tons as on April 1, 2014, down about 15% from about 35.5 million tons recorded during same time last year; current rice stocks are still more than double the required buffer and strategic reserve norms of about 14.2 million tons for this time of the year, according to the Food Corporation of India (FCI). Separately, Indian government has procured about 26.37 million tons rice as on April 7, 2014. Indian government is targeting to procure about 34.3 million tons rice in 2013-14. Meanwhile the USDA expects that India rice procurement will decline about 31 million tons in 2013-

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14, down about 10% from last year. India has exported about 10.5 million tons rice in fiscal year 2013-14 (April-March), up about 4% from the previous year's export tonnage, according to the USDA; India's total rice export in 2014-15 is expected to reach at about 8 million tons due to tuff competition from Thailand and Vietnam. Indian rice exporters are opposing large-scale field trials of genetically-modified (GM) crops, and say that GM rice could go against the interest of the Indian rice industry, particularly exports. Separately, a private ratings agency in India has assigned a stable outlook to the Indian rice sector for the fiscal year 2014-15 (April -March) based on an expectation of increased production and higher income realization for farmers. The ratings agency expects India's milled rice production to reach 100-110 million tons during the FY 2014-15. India is also targeting to expand overall coverage of irrigation facilities to about 107 million hectares by 2017, up about 10% from current coverage of about 97 million hectares to boost production of rice and other food grains and to reduce dependency on monsoon rains. Several international weather agencies, including Indian Meteorological Department have warned that rainfall in India may be lower than normal this year due to a 60% chance of the emergence of the El Niùo phenomenon in July. However, analysts say this might not affect global rice prices and supplies thanks to higher rice stocks outside India. Vietnam Vietnam 5% broken rice ended the month at $390 per ton, unchanged from a month ago and up about 3% from a year ago. According to the USDA, Vietnam rice export are expected to reach at about 6.5 million tons in 2013-14 (beginning January 2014), down by about 3% from an estimated 6.7 million tons rice export in 2012-13, due to strong competition from Thailand, India, Pakistan, Cambodia and Myanmar. Vietnam is targeting to export about 6.7 to 7 million tons rice in 2014. Vietnam has won the contract to supply 800,000 tons of 15% broken well-milled white rice to Philippines. Vietnam's state-owned companies, Vietnam Northern Food Corporation (VINAFOOD I) and Vietnam Southern Food Corporation (VINAFOOD II) will supply 800,000 tons rice to Philippines. VINAFOOD I will supply 200,000 tons of rice in two lots of 100,000 each at $436 per ton and $439 per ton respectively. VINAFOOD II will supply 600,000 tons of rice in three lots of 200,000 each at $436.5 per ton, $437.75 per ton and $439.25 per ton respectively. Separately, Vietnam exported about 1.566 million tons of rice during Jan 1 - April 24, 2014, down about 27% from about 2.151 million tons of rice exported during Jan-April, 2013, according to the Vietnam Food Association. According to the USDA, Vietnam’s total milled rice production in MY 2013-14 is likely to reach about 27.8 million tons, up by about1% from about 27.5 million tons produced in 2012-13. Meanwhile, rice production in

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Vietnam's Mekong River Delta (MRD) in the 2013-14 spring-winter season has increased to about 11 million tons (milled basis), up about 2% from about 10.8 million tons produced in the previous year, according to local sources. Separately, the United Nations International Fund for Agricultural Development (UNIFAD) will invest $50 million as part of its "Adaptation in the Mekong Delta" project to help Vietnamese rice farmers to cope with climate changes, which threaten to affect rice production in the Mekong River Delta. The Vietnam Food Association has increased the minimum export price of the 25% broken rice to $375 per ton, up about 6% from the previous floor price of $355 per ton, according to local sources. Pakistan Pakistan 5% broken rice quotes ended the month at about $420 per ton, up about 2% from a month ago and down about 1% from a year ago. According to the USDA, Pakistan's rice exports are expected to increase by about 8% to about 3.9 million tons in 2013-14 (beginning November 2014) from about 3.6 million tons in 2012-13, due to higher production and improved power supply. The USDA expects Pakistan will produce about 6.6 million tons rice in 2013-14, up about 14% from about 4.8 million tons expected to produce in 2012-13. Pakistan is expected to produce about 6.7 million tons rice in 2014-15. Meanwhile, FAO estimates Pakistan's rice exports in Calendar year 2014 will increase to about 3.3 million tons, up about 6% from about 3.1 million tons exported in 2013. The appreciation in Pakistani rupee against the U.S. dollar could hurt Pakistan rice exports, the Rice Exporters Association of Pakistan (REAP) said. According to the REAP, most of the exporters are holding their stocks, fearing losses due to the appreciation of the local currency. The Pakistan rupee appreciated by about 7% in the two months, from about Rs.104.27 per USD on March 5, 2014 to about Rs.97.45 per USD on April 30, 2014. REAP is planning to establish a Rice Technical Training and Research Institute (RTTRI) which will help improve marketing and rice exports. Pakistan rice exporters have also urged the government to focus on new seed research to increase rice production and exports. Cambodia Cambodia 5% broken rice quotes ended the month at $440 per ton, down about 3% from a month ago. According to the FAO, Cambodia's milled rice production is expected to reach at about 6 million tons in 2013, up about 1% from last year. Cambodia’s rice production is increasing year on year due to new intensive farming techniques and use of improved quality seeds. FAO expects that Cambodia will export about 1.4 million tons rice in 2014, up about 8% from last year. Separately, Cambodia is expected to end the customs fee for milled rice export from May 1, 2014 in order to

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reduce production costs and boost Cambodia's competitiveness in the international market. Brazil Brazil 5% broken rice quotes ended the month at $665 per ton, unchanged from a month ago. Brazil’s National Grains Supply Company (Conab) has increased its paddy rice production forecast for 2013-14 to about 12.6 million tons, up about 7% from an estimated 11.82 million tons produced in 2012-13, due to higher acreage and yield. U.S. The U.S. 4% broken rice ended the month at $585 per ton, unchanged from a month ago and down about 7% from a year ago. The CBOT rough rice future settled at $15.555 per cwt (about$343 per ton) in the end of April 2014, almost unchanged from a month ago and up about 5% from last year. In beginning of the month, the U.S. Department of Agriculture (USDA) announced the reinstatement of a letterhead statement indicating no-GM use, the US Rice Federation reports. Despite recent rains in the California, the Department of Water Resources (DWR) said they would not yet provide water to those without senior water rights. Africa According to the USDA, Kenya's milled rice production to increase to 65,000 tons (98,000 tons of paddy rice) in MY 2013-14 (October-September), up about 18% from about 55,000 tons in MY 2012-13, due to the promotion of the New Rice for Africa (NERICA) variety by the National Irrigation Board (NIB) under the rainfed conditions. The USDA also expects that Kenya's milled rice imports are likely to increase to 410,000 tons in MY 2013-14 (October - September), up about 8% from an estimated 378,000 tons imported in MY 2012-13 due to an expected increase in local consumption of rice. The government of Tanzania is planning to promote about 25 commercial farming deals and enhance about 78 smallholder rice irrigation schemes across the country to boost rice production. Ghana’s former President John Agyekum Kufour said that the country’s rice import bill could double to about $1 billion by 2019 unless the government forms a strong policy to increase rice production. He said Ghana's rice consumption is estimated to increase to about 1.68 million tons by 2019, up about 82% from the current levels of about 925,000 tons. He says that currently Ghana spends about $500 million to import rice and the country relies on imports to meet about 62% of local consumption. Separately, Ghana government has developed a national rice seed road map (NRSRM) to ensure self-sufficiency in quality rice seed production by 2018, according to local sources.

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The President of the Gambia has reaffirmed his government's stance to make the country self-sufficient in rice by 2016, despite criticisms from various corners as the Gambian government is planning to ban rice imports by 2016. The Gambia would need to increase its rice production by fivefold or more to meet current consumption needs. Some analyst said the Gambian government plan is highly ambitious as there has been a cumulative 79% decline in rice production in the past six years. Analyst is also added that this plan is not realistic due to its inappropriate policies and improper application. China According to the USDA, China imports are expected to increase at about 4 million tons in 2014015, up about 14% from an estimated 3.5 million tons in 2013-14, due to higher domestic price. The USDA expect that China will produce about 143 million tons rice in 2014-15, up about 0.5% from an estimated of about 142.3 million tons in 2013-14. China is targeting higher food grain production and self-sufficiency in rice with the help of government support and modernization of agriculture in the next ten years. China's government projects that country's rice production will increase to about 204 million tons in 2023. Philippines Total rice stocks in the Philippines stood at about 1.78 million tons as of March 1, 2014, which is down about 8% from about 1.94 million tons recorded during the same time last year and enough to last for 53 days, according to the Bureau of Agricultural Statistics (BAS). According to the USDA, Philippines rice import is expected to reach at about 2 million tons in 2013-14, up about 43% from last year, due to higher domestic prices. Philippines milled rice production is expected to reach at about 11.89 million tons in 2013-14, up about 4% from about 11.43 million tons rice produced in 2012-13, due to higher acreage and yield. Separately, the Philippines Agriculture Secretary said that rice farmers need government help to reduce costs of paddy production in order to compete with farmers in Thailand and Vietnam ahead of the ASEAN integration. Europe European rice exports have increased by about 30% to 126,406 tons of rice during September 1, 2013 to April 8, 2014, from about 96,924 tons rice exported during same period last year, according to data from European Union. The USDA expects that rice production in EU will reach at about 1.9 million tons in 2014-15 (SeptemberAugust, down about 9% from an estimated 2.08 million tons produced in last year. Separately, Almost 30% of Italy’s rice fields have developed a genus of herbicide-resistant panic grass, also

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called jungle grass or barnyard grass, or water grass. Other Markets According to the USDA, Bangladesh rice exports are expected to decline sharply to about 100,000 tons in 2014-15 (May-April), down about 75% from an estimated 400,000 tons in MY 2013-14 due to higher than expected production. The USDA estimates Bangladesh rice production in MY 2014-15 is likely to increase to 34.8 million tons, up by 210,000 tons from 34.59 million tons in MY 2013-14 due to expectations of higher acreage and good yields for the Aus rice crop. Separately, Bangladesh’s Boro rice (January - April) production may reduce by about 250,000 to 300,000 tons due to an acute water crisis in northern Bangladesh caused by water extraction from the Teesta River, upstream by the Indian government. The USDA expects that Indonesia will import about 1.5 million tons rice in calendar year 2014, more than double from last year, due to expectations that Indonesia's State Logistics Company BULOG will procure lesser than targeted 3.85 million tons of rice by the end of 2014. Meanwhile, the USDA said, Indonesia's milled rice production will reach at about 37.36 million tons in 2014, up about 2% from about 36.5 million tons produced in 2013, as higher yielding varieties make up for flood damage. Separately, Indonesia’s Ministry of Trade has issued new regulation regarding export and import of rice, according to local sources. According to the new import rule, National Logistics Agency (Bulog) can import rice for the purposes of price stabilization, combating emergencies and during periods of food insecurity in the country. Private companies registered as manufactures importer (IP) can import rice that can be used as raw material in industries and if that kind of rice is not produced domestically. Similarly, companies designated as registered importers (IT) are allowed to import specific varieties of rice for health purposes. According to the new export rule, Indonesia will export rice only when rice supply in the country exceeds domestic requirements. Other than Bulog, any party exporting rice has to seek permission of the Ministry of Agriculture. According to the USDA, Myanmar’s rice production is likely to increase to about 1.31 million tons in the calendar year 2015, up about 1% from an estimated 1.3 million tons exported in 2014 due to higher production and strong overseas demand. The USDA estimates of Myanmar’s 2014 rice exports of about 1.3 million tons are up about 12% from an estimated 1.16 million tons in 2013. The U.S. has allowed Japan to exclude rice in Trans-Pacific Partnership (TPP) negotiations, but has asked the Japanese government to increase imports of U.S. rice, according to local sources. Russia’s rice production is expected to grow to about 650,000 tons in the calendar year 2014, which is up about 7% from about 608,000 tons produced in 2013, according to the USDA. Rice export in Russia is expected to increase sharply to about 200,000 tons in 2014, up about 66% from about 120,000 tons in 2013. Separately, Russia has banned planting of genetically modified (GM) rice for the next three years due to lack of certification facilities. South Korea is expected to import about 410,000 tons rice in 2014-15 under the Most Favored Nation (MFN)

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quota allocations as the country plans to liberalize the rice market by the end of 2014, according to the USDA. Separately, South Korea rice farmers are opposing the government’s plan to end its 20-year long rice import quota and liberalize rice imports in 2014. The USDA added, South Korea plans to import the 408,700 tons scheduled to be imported under the 2014 WTO Minimum Market Access (MMA) from the middle of March 2014 to help stabilize domestic rice prices and meet its obligation of MMA rice imports within the calendar year. Research and Scientific Development: Researchers from Michigan Technological University (MTU) in the U.S. have discovered a set of genes that could be useful in developing tough and disease-resistant rice varieties also known as “super rice”. http://oryza.com/news/research-development/us-researchers-identify-genes-responsible-multiple-stressestolerance-rice Researchers have identified over 1,000 genes in rice that they think may be crucial factors in managing the plant’s response to both abiotic and biotic stress. http://oryza.com/news/research-development/coping-stress-art-zen-rice-through-plant-genetics Scientists with the U.S. Department of Agriculture (USDA) have developed an extract made from rice bran oil that can be used as a partial replacement for margarine, butter, or shortening. http://oryza.com/news/research-development/i-cant-believe-its-not-butter-rice-bran-oil-product-healthieralternative The International Rice Research Institute (IRRI) and the Philippines Rice Research Institute (PhilRice) have renewed their collaboration agreement over rice research for another five years. http://oryza.com/news/research-development/irri-philrice-renew-collaboration-protect-next-generation-ricevarieties Rice scientists at the Central Rice Research Institute (CRRI), India, have developed three new high-yielding rice varieties, which can be grown to boost yields in water-scarce areas as well. http://oryza.com/news/research-development/india-develops-three-new-high-yielding-rice-varieties The Long-Term Continuous Cropping Experiment (LTCCE) by the Philippines-based International Rice Research Institute (IRRI) has sustained 150 crops in 52 years. http://oryza.com/news/research-development/irri-rice-research-project-sustains-150-crops-52-years Scientists are constantly trying to develop new strains of rice that thrive on a planet deep in the throes of climate change. http://oryza.com/news/research-development/resilient-traits-african-rice-key-self-sufficiency

April Tenders:

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Iraq issued a tender to buy minimum 30,000 tons rice. http://oryza.com/news/tenders/iraq-tenders-buy-minimum-30000-tons-rice-thailand-allowed-participate Taiwan issued a tender to buy 7,000 tons rice. http://oryza.com/news/tenders/taiwan-issues-globalized-tender-buy-7000-tons-rice-finds-australia-bids-high South Korea issued a tender to buy 42,400 tons rice. http://oryza.com/news/tenders/south-korea-tenders-purchase-42400-tons-rice Tags: Monthly Market Review, global rice prices, global rice news

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