30th september 2014 daily global rice e newsletter by riceplus magazine

Daily Global Rice E-Newsletter

30th September, 2014

News Headlines…  Colombia rice growers saved from ruin after being told not to plant their crop  Crew makes 1,126-pound bowl of Hawaii rice dish  Arkansas Farm Bureau Daily Commodity Report  S. Korea notifies WTO of plan to liberalize rice market via tarrification  Commerce to accept direct rice orders  Hooda threatens stir for higher rice price  Rice self-sufficiency still attainable by end-2015 -Agriculture chief  Nagpur Foodgrain Prices Open- Sep 30  Basmati prices decline 25% in Punjab  TABLE-Planting status for major monsoon crops  TABLE-Initial output estimates for main summer crops  PDMO to refinance rice debt  USA Rice Helps ATO Mexico Kick-Off First Marketing Roundtable  Application Deadline for Rice Leadership Program Nears  Louisiana Wraps Up National Rice Month Celebrations  Paddy harvesting starts in Punjab, Haryana; late rains improve sentiment  Rice output hits a record high  Punjab offers incentives to rice millers from outside of state  Punjab and Haryana markets receive new paddy crops  Odisha waives two per cent CST on interstate trade of rice

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News Detail….

Colombia rice growers saved from ruin after being told not to plant their crop

heeded the advice and left 1,800 hectares (4,448 acres) unplanted. It saved many from potential ruin; their neighbours who did sow paid a heavy price.

Farmers given radical advice following a drought warning by scientists using a computer data tool that reaped a UN reward Fedearroz agronomist Cristo Perez selects rice plants in Monteria, Cordoba.Photograph: Eitan Abramovich/AFP/Getty Images

Colombia’s rice farmers were already struggling with climate change and unfair trade rules when they received an unlikely recommendation based on research from one of the winners of the UN Big Data Climate Challenge: “Don’t plant in this sowing season.” The advice came from Fedearroz, the main organisation for rice growers in the country, and helped 170 farmers in Córdoba avoid economic losses of an estimated $3.6m (£2.2m).

Scientists at the International Center for Tropical Agriculture (Ciat) had forecast that the first growing season of the year would coincide with a severe dry period and an acute water deficit. They urged farmers in the Caribbean department of Córdoba, one of the country’s five rice producing areas, to sow immediately to avoid an estimated yield decline of 3% for each week without sowing, but Fedearroz talked to farmers and recommended that they did not sow at all in the first growing season.Growers in Córdoba

The information came as the result of case studies carried out by agricultural geographer Andy Jarvis and his colleagues at Ciat using the climate-smart, site-specific agriculture decision-making tool for which it won the UN challenge.Óscar Pérez, a rice grower who benefited from the information, believes he has been “saved” despite having missed a harvest. “We have to earn [the amount needed for] the year with the second semester harvest, which is generally better in yields and prices,” he said. Pérez plants 120 hectares of rice in Córdoba, where he employs 10 labourers, and maize and cotton in another 400 hectares.

The Ciat team used data-mining techniques to analyse information from annual rice surveys, harvest monitoring data and experiments on rice sowing dates provided

by Fedearroz as well as weather data from the national institute of hydrology, meteorology and environmental studies.Jarvis, who says up to half of the variability in rice yields can be attributed to the changing climate, said the researchers had “looked for relations between yields and climate” in two areas: Córdoba and the central department of Meta. As well as forecasting a drought, the team recommended the adoption of rice varieties

that were less sensitive to sunlight.A flock of egrets above a flooded rice plantation in Monteria, Colombia. Photograph: Bobby Haas/NG/Getty Images National yields in Colombia have been hit hard by climate change. Rice has declined from six to five tonnes per hectare in the past five years, says Patricia Guzmán, Fedearroz’s technical manager. “Weather changes are strong and highly different in every rice region and season,” she said.The case studies are part of a two-year agreement between the ministry of agriculture and Ciat to implement a programme to help farmers adapt based on statistical work to obtain modelling and weather forecasts for rice, cassava, beans, maize and potato.Scientists started with rice because it is the staple food most consumed, particularly among poor people, who make up 30% of the population(pdf), according to national statistics agency Dane. Chronic malnutrition(affects 13% of Colombian children under five (up to 17% in rural areas), while 27% of those children (more than 30% in rural areas) suffer fromanaemia, according to the government.

But rice is expensive to grow in Colombia and many small-scale and subsistence farmers cannot compete with imports from the US, Peru and Ecuador, not to mention contraband from those countries and from Venezuela, which heavily subsidises the rice it imports. Colombia produces 2.2m tonnes per year, while smuggled rice amounts to 300,000 tonnes, Fedearroz says.Sometimes, south-east Asian rice ends up on Colombian tables, says Miguel Gordillo Hernández, coordinator of Tolima’s Salvación Agropecuaria (Agricultural Salvation), a group organising peasants to combat policies that open the local food market to the world.

According to the 2012 free trade agreement (FTA) with the US, about 50,000 tonnes of

US tax-free rice enters the country every year. Over this quota, the subsidised US rice is charged with an import tariff of 80%, to be phased out over a period of 19 years.Rice is highly vulnerable to the FTA, says Gordillo Hernández. Machinery, pesticides and fertilisers are imported and costly, while a local oligopoly of rice mills until recently controlled domestic prices by running the existing laboratories to analyse quality, a key factor in fixing the price farmers get for their crop.These problems and the difficult weather conditions put immense pressure on growers, who joined nationwide protests against the government last year. In subsequent negotiations, the government agreed to establish a reference laboratory to measure quality, ending the advantage of the mills in forming prices. It also devised a storage subsidy that the mills have to transfer to growers.Both measures have slightly improved rice prices for growers, which are 5-8% above production costs, Gordillo Hernández says.

The government has also promised to eliminate import tariffs on agricultural inputs, such as fertilisers and machinery.But farmers are demanding public investments in technology and irrigation, debt alleviation, a crackdown on smuggled goods and renegotiation of FTAs. Otherwise, they argue, the future for rice growing in Colombia will be bleak.“Colombia is already importing 9m tonnes of food. The day will come when all the food will be imported,” Gordillo Hernández warns.

Crew makes 1,126-pound bowl of Hawaii rice dish The Associated Press POSTED: 09/30/2014 08:45:19 AM EDT0 COMMENTS

HONOLULU (AP) — A group is claiming a world record for a popular Hawaii dish, after putting together a massive bowl of rice,

hamburger, eggs and gravy.Chef Hideaki Miyoshi of Tokkuri Tei restaurant and volunteers at Sunday's Fifth Annual Rice Festival assembled a bowl of loco moco that weighed 1,126 pounds.Loco moco was invented in the late 1940s in Hilo. There are varieties, but the basic dish consists of hot white rice, a hamburger patty, an over-easy fried egg and brown gravy.Guinness World Records said the dish would have to weigh at least 1,100 pounds for consideration.

Miyoshi and his crew used more than 600 pounds of rice, 200 pounds of ground beef, 300 scrambled eggs and 200 pounds of gravy.

They used donated rice and borrowed kitchen space at Ward Centers.The festival holds the Guinness World Record for making a 286pound Spam musubi in 2011, the Honolulu Star-Advertiser reported (http://bit.ly/1uwSc9Z ).The big loco moco took 3½ hours to prepare and then was donated to charity to feed the homeless, organizer Lincoln Jacobe said.Some locomoco purists were critical of the use of scrambled eggs instead of over-easy eggs."If you order at a restaurant, they ask you how you want your egg," Cesar Panocillo said.

"So I guess it's a preference. Some people might like it scrambled."The event also featured a Spam-musubi eating contest. Randy Javelosa beat four-time champion Ron Lee by eating seven of the canned meat, dried seaweed and rice snack in two minutes.I just tried to scarf it down and keep it down," said Javelosa, whose prize was a year's worth of free rice.I'll be back next year," Lee vowed.

Arkansas Farm Bureau Daily Commodity Report A comprehensive daily commodity market report for Arkansas agricultural commodities with cash markets, futures and insightful analysis and commentary from Arkansas Farm Bureau commodity analysts.

Noteworthy benchmark price levels of interest to farmers and ranchers, as well as long-term commodity market trends which are developing.

Daily fundamental market influences and technical factors are noted and discussed.

Soybeans High Low Cash Bids 928 864 New Crop 924 899

Riceland Foods Cash Bids Stuttgart: 903 New Crop Stuttgart: 907

Future s:

Pendleton: 903 Pendleton: 912

High

Low

Last

930.0 Nov 0 '14

909.7 5

913.2 5

938.5 Jan 0 '15

918.2 5

921.2 5

946.5 0

926.5 0

929.7 5

954.5 0

934.7 5

938.0 0

961.0 Jul 0 '15

941.2 5

944.5 0

960.7 Aug 5 '15

945.2 5

947.5 0

949.7 5 951.7 5 956.7 5

941.0 0 931.7 5 942.0 0

939.5 0 937.5 0 944.2 5

Ma r '15 Ma y '15

Sep '15 Nov '15 Jan '16

Chang e 10.2 5 11.0 0 10.7 5 10.7 5 10.2 5 10.0 0 8.75 7.00 6.50

Soybean Comment Soybean prices closed lower after starting the day out higher. While the stocks report was bullish for soybeans, the market quickly digested this number and moved onto this year. Stocks as of September 1 were only 92 million bushels, that compares to an average trade estimate of 126 million bushels.

This number was below even the low end of trade estimates, typically this would lead to a rally in soybean prices; however, we are already seeing a large crop from the southeast coming off and filling the void. Additionally early reports out of the lower Midwest show excellent yields also. So while we had a temporary tight stocks record supplies this year will fill the void quickly, and likely continue to push prices lower in the coming days. It looks like the technical rally is dead again and prices will again make their march back towards $9.

Wheat High Low Cash Bids 436 396 New Crop 502 454

Future s: Dec '14 Ma r '15 Ma y '15 Jul '15 Sep '15 Dec '15 Ma r '16 Ma y '16 Jul '16

Wheat Comment Wheat prices closed the day lower again today.

Prices continue to feel the pressure of large supplies. Today’s stocks report provided no surprises for the wheat market coming in right in line with trade expectations. Look for these prices to continue to trend lower as weak fundamentals and outside markets pressure prices lower.

Grain Sorghum High Low Cash Bids 331 276 New Crop 326 326

Corn

High

Low

481.7 5 495.0 0

468.0 0 481.7 5

Chang e 477.7 5 3.50 490.5 0 3.50

502.7 5

491.2 5

498.7 5

4.00

509.2 5 519.2 5 535.0 0 546.0 0

497.7 5 510.0 0 526.0 0 541.7 5

504.5 0 515.5 0 531.7 5 542.7 5

4.00 3.25 2.75 2.00

548.0 0

548.0 0

547.5 0

1.50

538.7 5

535.0 0

540.2 5

3.50

High Low Cash Bids 305 258 New Crop 301 276

Last

Future s: Dec '14 Ma r '15 Ma y '15 Jul '15 Sep '15 Dec '15 Ma r '16 Ma y '16 Jul '16

High

Low

326.2 5 338.5 0

319.5 0 332.5 0

Chang e 320.7 5 5.00 333.5 0 5.00

347.0 0

341.0 0

342.0 0

5.00

354.2 5 361.5 0 371.0 0 380.0 0

348.0 0 356.0 0 365.5 0 375.0 0

349.5 0 356.7 5 366.7 5 376.2 5

4.50 4.50 4.00 3.75

387.0 0

383.2 5

383.5 0

3.50

393.0 0

388.7 5

389.2 5

3.50

Last

Corn Comment Corn prices closed lower today. Prices took another blow today after the September stocks report came in above average trade estimates and near the high end of trade expectations. Look for this news to continue to drive corn prices to more new lows in the coming days ahead of the October USDA report. This report is widely expected to raise production even higher, and today’s report indicates demand in the fourth quarter of the last marketing year was slower than expected. This could hinder the USDA from raising demand, and push most of the additional supplies into stocks.

Future s: Nov '14 Jan '15 Ma r '15 Ma y '15 Jul '15 Sep '15 Nov '15

Cotton Futures:

High Oct - - '14 Dec 62.07 '14

Low ---

Last Change 61.37 -0.1

61.01

61.37

-0.1

High

Low

1284.

0 1296.

5 1312.

0

1270.

5 1288.

0 1312.

0

Chang e 1274. +1.0 5 1289. -1.5 5 1309. -1.5 5 Last

1330.

0

-1.0

1348.

0 1291.

0 1291.

0

-1.0 -1.0 -1.0

Rice Comment Memphis, TN Cotton and Tobacco Programs

Cotton Comment Cotton futures were in the red across the board today, with December managing to hold above support at the contract low of 60.83 cents. Last week’s sell off took prices to their lowest level in nearly 5 years. The impetus for the move was news that China has reduced their import quota for 2015 to 894,000 metric tons, which is the absolute minimum allowed under their WTO obligations.

Last year, China imported between 600,000 and 800,000 metric tons in excess of the minimum, and the most recent USDA report forecast is more in line with last year’s total, so China’s announcement is hitting the market hard. Harvest pressure will also begin to have an impact on the market. Harvest pressure will increase, as the crop is now 10% harvested. Crop conditions improved slightly this week, with 49% of the crop rated good to excellent.

Rice High Low Long Grain Cash Bids - - - 1214/cwt Long Grain New Crop - - - - - -

Rice futures were fractionally mixed, with November a bit higher. Harvest pressure continues to be a factor, as U.S. producers now have 59% of the crop in the bins, up from 46% just last week.

Arkansas producers have reportedly harvested 62% of the crop, up from 44% a week ago.

Friday’s high of $12.91 is the first level of resistance between current price levels and key resistance at $13.

Cattle Futur es: Live Cattle :

High

Low

Last

161.6 Oct 75 '14

159.9 00

160.1 50

164.9 Dec 75 '14

163.1 75

163.4 00

164.7 Feb 00 '15

163.4 00

163.6 50

Chang e 0.80 0 1.07 5 0.70 0

Ap 163.2 r 00 '15 153.7 Jun 25 '15

161.8 50

162.0 00

152.1 75

152.3 75

Au 151.8 g 50 '15 153.2 Oct 75 '15

150.7 50

150.8 50

152.0 75

152.2 50

153.5 Dec 00 '15

152.5 50

152.6 50

153.4 Feb 00 '16

152.4 00

152.7 50

High

Low

Last

236.1 75 235.9 50 229.9 00 227.7 50

234.7 00 234.2 00 228.1 50 226.1 25

235.5 00 235.0 00 228.8 50 226.6 75

227.5 Apr 50 '15

226.1 50

226.6 75

227.3 25

225.9 50

226.4 50

227.8 50

226.8 25

227.0 00

225.7 75

225.5 75

225.5 00

Feede rs: Oct '14 Nov '14 Jan '15 Ma r '15

Ma y '15 Au g '15 Sep '15

0.90 0 0.77 5 0.60 0 1.00 0 0.85 0 0.75 0

Chang e +0.8 50 +0.5 00 +0.2 25 +0.3 25 0.02 5 +0.6 50 0.10 0 +0.5 50

Livestock prices were mixed today as live cattle moved lower and feeders continue to rally. The losses were limited in the live cattle market as tight supplies continue to support these prices. Look for these lower grain prices to add additional support this fall and help keep feeder demand strong as margins remain favorable.

Hogs Futur es:

High

Low

Last

Oct 108.7 '14 50 95.95 Dec 0 '14

107.1 00 93.50 0

107.8 50 94.50 0

91.17 5 90.80 0 91.40 0

89.37 5 89.52 5 90.32 5

90.57 5 90.80 0 90.50 0

Chang e +0.5 25 0.35 0 +0.6 25 +1.3 00 +0.2 00

94.10 0 92.10 0 89.40 0

93.05 0 91.07 5 88.42 5

93.92 5 91.95 0 89.25 0

+0.7 75 +1.0 50 +0.7 00

75.55 0

75.20 0

76.00 0

0.00 0

Feb '15 Apr '15 Ma y '15 Jun '15 Jul '15 Au g '15 Oct '15

S. Korea notifies WTO of plan to liberalize rice market via tarrification 2014/09/30 14:23

Arkansas Prices Oklahoma City

Cattle Comment

SEJONG, Sept. 30 (Yonhap) -- South Korea on Tuesday formally notified the World Trade Organization (WTO) on Tuesday it will open its rice market starting next year

with a 513 percent tariff rate."The government has submitted to the WTO secretariat its plan to revise the country's tariff rate on rice imports ahead of market opening through tarrification that will go into effect Jan. 1, 2015," the Ministry of Trade, Industry and Energy said in a press release.

Commerce to accept direct rice orders September 30, 2014 6:25 pm The Commerce Ministry will allow rice traders to place purchase orders directly as an additional channel beside auctions for releasing rice from government stocks.Duangporn Rodphaya, director-general of the Foreign Trade Department, said every rice trader that has an order from overseas could submit a purchase order for any kind of rice grain directly to the ministry, and then the working committee on rice sales would consider whether to accept the offered price. he ministry will soon open another auction for about 100,000 tonnes of rice to general traders. In the last auction, which offered 139,000 tonnes, it was able to sell 72,085 tonnes worth Bt909 million to 13 traders.

The Nation

Hooda threatens stir for higher rice price Express News Service | Chandigrah September 30, 2014 4:36 pm

|

Haryana CM Bhupinder Singh Hooda inspects rice grains at Tarawadi Grain Market on Monday. (Source: PTI) Haryana Chief Minister Bhupinder Singh Hooda Tuesday threatened to sit on dharna if the Centre failed to ensure better prices of rice for farmers. He said that had he not been holding a constitutional post, he would have sat on dharna today itself.A statement issued by the government read, “Haryana CM Bhupinder Singh Hooda today warned the Centre that he may take a drastic step like sitting on dharna in Taraori mandi along with farmers if the central government did not take immediate measures to ensure better prices of rice for farmers. ”During a discussion with farmers in Taraori and Guhla Cheeka, Hooda attacked the Centre for fall in prices of Basmati and cotton. He also attacked the BJP for increase in diesel prices and drought issues.“I cannot see farmers suffer because of low prices of produce, especially rice. I am ready to launch a struggle with them. I had already written to the Centre seeking a ban on rice export”, Hooda told the farmers. He is on a statewide tour, campaigning for Congress candidates.“In the last 10 years of UPA rule at the Centre and Congress rule in Haryana, a great deal of development has taken place.

Farmers in Haryana benefitted and the rate of interest on crop loan was reduced. It will not be changed in future if we are voted to power,” Hooda told the farmers.Hooda also attacked the BJP for not being able to declare its chief ministerial candidate till date.

Rice self-sufficiency still attainable by end-2015 -Agriculture chief RICE SELF-SUFFICIENCY continues to be in sight for the Philippines, a Cabinet official

yesterday said, even as the government missed a previous end-2013 target for its achievement.Agriculture Secretary Proceso J. Alcala told reporters at the sidelines of the Philippine Economic Briefing in Pasay City on Tuesday that the country currently has an average rice harvest of 3.8 metric tons (MT) per hectare and is most likely to achieve a 4.2-MT per hectare harvest possibly by the end of 2015 to achieve 100% sufficiency in the staple.“We are not backing out from our self-sufficiency goal.

Projections should have a matching budget and we think that the budget given to us this 2014 is enough to increase the rice self-sufficiency from 96%,” Mr. Alcala said in Filipino.The Agriculture chief said that the country’s rice self-sufficiency level is expected to reach 9798% this year.He noted, however, that even if the country achieves 100% rice self-sufficiency, it will still have to import rice under the minimum access volume (MAV) of 805,200 MT -- 50,000 MT of which will be omnibus, and the remaining 755,200 MT country-specific. “The MAV is an obligation. We cannot reject that,” Mr. Alcala said.In a bid to improve the production of the staple to fulfill projected demand, in 2015, the Agriculture chief noted, additional interventions will also be implemented.“I think the lack of interventions will be addressed by that time,” he said.Agricultural mechanization, he noted, which will also be a driver to achieve the sufficiency goal, as this will increase the sectors efficiency and productivity.

service must competencies.

their

faltering

The DA needs to focus its resources on areas with high probability of success,” he said.According to a report by the United States Department of Agriculture -- Foreign Agricultural Service, the Philippines posted the highest percentage increase in milled rice production in the last six years.The country’s milled rice production grew by an average of 5.05% in the period. This average is followed by Egypt (4.85%), India (4.29%), Cambodia (3.94%), and Bangladesh (2.80%).For this year, the DA is targeting rice production of some 19.07 million MT of rice, up from the 18.44 million MT recorded in 2013. In the first half, rice output reached 8.38 million MT, 4.78% higher than the 7.99 million MT in the same period in 2013. -- J.V.D. Cabuenas

Nagpur Foodgrain Prices OpenSep 30 Tue Sep 30, 2014 1:43pm IST Nagpur, Sept 30 (Reuters) - Gram prices in Nagpur Agriculture Produce and Marketing Committee (APMC) firmed up again on increased demand from local millers amid weak supply from producing regions. Fresh rise on NCDEX, upward trend in Madhya Pradesh soyabean prices and reported demand from South-based millers also jacked up prices, according to sources. *

Sought for comment yesterday, Rolando T. Dy, executive director of the University of Asia & the Pacific’s Center for Food and Agribusiness, said he agreed with Mr. Alcala, noting that rice production in the country remains low and that boosting yield should be a priority.“The DA (Department of Agriculture) secretary is correct.

Philippine yield of 3.8 tons per hectare is far lower than the 5 tons or more for Indonesia and Vietnam,” he said in a text message.Mr. Dy likewise noted that for production to improve, interventions extending to the local government level must be made.“For this (rice production) to go up, the local government unit extension

upgrade

*

*

*

FOODGRAINS & PULSES GRAM * Gram varieties ruled steady here on subdued demand from local traders amid ample stock in ready position.

TUAR * Tuar gavarani declined further in open market on poor buying support from local traders. Reports about good overseas arrival also pushed down prices.

* Moong varieties reported down in open market on lack of demand from local traders amid good arrival from producing belts. * In Akola, Tuar - 4,800-4,900, Tuar dal 7,000-7,200, Udid at 7,000-7,200, Udid Mogar (clean) - 8,000-8,300, Moong 6,900-7,300, Moong Mogar (clean) 8,300-9,000, Gram - 2,500-2,700, Gram Super best bold - 3,700-4,000 for 100 kg. * Wheat, rice and other commodities remained steady in open market in thin trading activity, according to sources.

Nagpur foodgrains APMC auction/open-market prices in rupees for 100 kg FOODGRAINS Available prices Previous close Gram Auction 2,150-2,830 2,120-2,800 Gram Pink Auction n.a.

2,1002,600 Tuar Auction n.a.

3,9304,950 Moong Auction n.a.

5,200-5,500 Udid Auction n.a.

4,3004,500 Masoor Auction n.a.

2,6002,800 Gram Super Best Bold 3,800-4,200 3,800-4,200 Gram Super Best n.a.

Gram Medium Best 3,550-3,700 3,550-3,700 Gram Dal Medium n.a. n.a.

Gram Mill Quality 3,400-3,450 3,400-3,450 Desi gram Raw 2,800-2,875 2,800-2,875 Gram Filter new 3,200-3,600 3,200-3,600 Gram Kabuli 8,400-9,700 8,400-9,700 Gram Pink 7,200-7,400 7,2007,400

Tuar Fataka Best 7,250-7,450 7,250-7,450 Tuar Fataka Medium 7,100-7,200 7,100-7,200 Tuar Dal Best Phod 6,600-6,800 6,600-6,800 Tuar Dal Medium phod 6,300-6,500 6,300-6,500 Tuar Gavarani 4,850-4,900 4,900-4,950 Tuar Karnataka 5,300-5,400 5,300-5,400 Tuar Black 8,200-8,500 8,200-8,500 Masoor dal best 6,700-6,800 6,700-6,800 Masoor dal medium 6,500-6,600 6,500-6,600 Masoor n.a. n.a.

Moong Mogar bold 9,000-9,800 9,200-9,800 Moong Mogar Medium best 8,200-8,600 8,500-8,800 Moong dal super best 7,800-8,200 7,800-8,200 Moong dal Chilka 7,500-7,700 7,700-7,900 Moong Mill quality n.a. n.a.

Moong Chamki best 7,500-8,800 7,500-8,800 Udid Mogar Super best (100 INR/KG) 8,200-8,600 8,200-8,600 Udid Mogar Medium (100 INR/KG) 7,1007,800 7,100-7,800 Udid Dal Black (100 INR/KG) 6,7007,000 6,700-7,100 Batri dal (100 INR/KG) 4,000-5,000 4,000-5,000 Lakhodi dal (100 INR/kg) 2,800-3,100 2,800-3,100 Watana Dal (100 INR/KG) 3,250-3,450 3,250-3,450 Watana White (100 INR/KG) 3,2503,350 3,250-3,350 Watana Green Best (100 INR/KG) 4,4005,200 4,400-5,200 Wheat 308 (100 INR/KG) 1,200-1,500 1,200-1,500 Wheat Mill quality(100 INR/KG) 1,7001,800 1,700-1,800

Wheat Filter (100 INR/KG) 1,300-1,500 1,300-1,500 Wheat Lokwan best (100 INR/KG) 2,1002,450 2,100-2,450 Wheat Lokwan medium (100 INR/KG) 1,850-2,000 1,850-2,000 Lokwan Hath Binar (100 INR/KG) n.a. n.a.

MP Sharbati Best (100 INR/KG) 2,8003,200 2,800-3,200 MP Sharbati Medium (100 INR/KG) 1,9502,350 1,950-2,350 Wheat 147 (100 INR/KG) 1,200-1,300 1,200-1,300 Wheat Best (100 INR/KG) 1,500-1,800 1,500-1,800 Rice BPT (100 INR/KG) 3,2003,800 3,200-3,800 Rice Parmal (100 INR/KG) 1,800-2,000 1,800-2,000 Rice Swarna old (100 INR/KG) 2,3502,650 2,350-2,650 Rice HMT (100 INR/KG) 4,0004,400 4,000-4,400 Rice HMT Shriram (100 INR/KG) 5,2006,000 5,200-6,000 Rice Basmati best (100 INR/KG) 10,50013,500 10,500-13,500 Rice Basmati Medium (100 INR/KG) 7,300-10,000 7,300-10,000 Rice Chinnor (100 INR/KG) 5,200-5,800 5,200-5,800 Jowar Gavarani (100 INR/KG) 1,4001,600 1,400-1,600 Jowar CH-5 (100 INR/KG) 1,700-1,800 1,700-1,800 WEATHER (NAGPUR) Maximum temp. 35.5 degree Celsius (95.9 degree Fahrenheit), minimum temp.

21.3 degree Celsius (70.3 degree Fahrenheit) Humidity: Highest - 96 per cent, lowest - 53 per cent.

Rainfall : nil FORECAST: Mainly clear sky. Maximum and Minimum temperature likely to be around 35 and 21 degree Celsius respectively.

Note: n.a.--not available

(For oils, transport costs are excluded from plant delivery prices, but included in market prices.)

Basmati prices decline 25% in Punjab Tepid response from rice millers; several farmers had gotten into Basmati Komal Amit Gera | Chandigarh September 29, 2014 Last Updated at 20:48 IST The prices of Basma ti rice have fallen in Punjab this year by 20 to 25 per cent as compared to those of kharif 2013 due to a tepid response from rice millers at the beginning of the season.Last year, major basmati varieties such as Pusa 1509 and Pusa 1121 were purchased at Rs 3500 to Rs 4,000 a quintal. The increase in demand and price of basmati was triggered by the high export demand for Indian basmati the world.Driven by the lucrative price, farmers in Punjab adopted diversification from nonbasmati into basmati, which is also supported by the state government under the diversification of agriculture plan.The projected increase in the area under basmati is 8 to 10 per cent. Because of the dwindling water table in Punjab, farmers are encouraged to diversify from non-basmati to basmati, as it requires lesser irrigation. The Punjab government also offers certain concessions to Punjab-based millers for lifting basmati paddy as this crop is not included under the minimum support price regime.This year though, millers are

skeptical of international demand and are not lifting the crop at a rapid pace.A revision of import duty on basmati by Iran proved a dampener for basmati exporters and they are stocking the crop in lesser volumes.

The expectation of a glut in the market due to increased acreage had also slowed the buying operations of the millers. The crop would be arriving in full swing in midOctober and that might result in further fall in price."A below-average rainfall had already added the cost of irrigation for paddy and a lower remuneration would put us in a precarious situation," said Balbir Singh, a farmer from Sangrur.He said millers had created a cartel and had deferred buying as they knew the crop size was larger than last year and farmers did not have enough storage space. We cannot negotiate for a higher price, he said.

PRICE SLIDE Price have been fallen by 20-25 per cent compared to last year The major basmati varieties of Pusa 1509 and Pusa 1121 were purchased at Rs 3,500 a quintal to Rs 4,000 a quintal last year High export demand has contributed to the higher basmati price The Punjab government offers certain concessions to the millers for lifting basmati paddy as this crop is not included under minimum support price regime

TABLE-Planting status for major monsoon crops Tue Sep 30, 2014 1:20pm IST Sept 30 (Reuters) - India's area under rice cultivation so far has crossed last year's acreage and also surpassed the normal area under the main summer sown crop, the farm ministry's update showed on Tuesday.

The higher coverage was possible as the monsoon revived in the second half of the June-September rainy season, overcoming the weakest start in five years that initially raised fears of a widespread drought in 2014.

This year's monsoon also caused floods in many parts of the subcontinent.

The late surge in the monsoon helped cotton acreage register higher coverage than last year and over normal levels, while poor rains during the key planting month of July reduced coverage under oilseeds. The patchy monsoon cut down pulses and cereals coverage as well.

Interestingly, area under soybean, the main summer oilseed crop, registered higher than normal coverage with late rains improving prospects of better yields.

Cane area in India, the world's second top sugar producer after Brazil, surpassed the normal area but remained lower than a year ago when monsoon rains were bountiful.

An erratic monsoon this year failed to wipe out the huge deficit of the first half despite an impressive improvement in rainfall during the second half.

The late revival caused a delay in the retreat of summer rains from the grain bowl region of northwest India, improving sowing prospects for the main winter crops such as wheat and rapeseed.

India's annual monsoon season formally ends on Sept. 30.

The table below shows the area sown with major crops between June 1 and Sept. 26, in million hectares.

Figures are provisional.

--------------------------------------CROP Normal Area 2014 2013 --------------------------------------* Rice 36.01 37.49 37.43

* Corn * Pulses -Tur -Urd

7.50

7.84 8.22

10.60 10.10 10.81 3.61 3.56 3.85 2.33 2.50 2.39

* Oilseeds 17.84 -Soybean 10.44 -Groundnut 4.37

17.76 19.32 11.02 12.22 4.30 3.89

* Cane 4.84 4.87 5.03 * Cotton 11.10 12.65 11.44 --------------------------------------Source: Farm Ministry --------------------------------------(Reporting by Ratnajyoti Dutta in NEW DELHI; editing by Sunil Nair)

TABLE-Initial output estimates for main summer crops Tue Sep 30, 2014 3:45pm IST Sept 30 (Reuters) - India's summer-sown grains output is estimated at 120.27 million tonnes for the current crop year the began in July compared with 129.24 million tonnes a year earlier, the farm ministry's initial forecast showed.

The nearly 7 percent drop in output was mainly due to the patchy first half of this year's June-September monsoon.

India's annual monsoon season formally ends on Sept. 30.

A table on planting status for these crops, please click Table below gives estimates of major summer crops in million tonnes.

----------------------------------------CROP 2014/15 2013/14 ----------------------------------------Rice 88.02 91.69

Corn

16.03

17.68

Pulses -Tur -Urad

5.20 2.74 1.15

6.02 3.29 1.07

Oilseed 19.66 -Soybean 11.82 Groundnut 5.02

22.41 11.99 7.81

Sugarcane 342.79 350.02 Cotton #34.62 36.59 ----------------------------------------Source: Agriculture Ministry # million bales (of 170 kg each) * Provisional ----------------------------------------(Compiled by Ratnajyoti Dutta in New Delhi; Editing by Sunil Nair

PDMO to refinance rice debt Agricultural bank closes three funds Published: 30 Sep 2014 at 06.50 Newspaper section: Business Writer: Wichit Chantanusornsiri The Public Debt Management Office (PDMO) will be required to refinance 150 billion baht of debt from the rice subsidy scheme of the previous government in fiscal 2015, which starts tomorrow. Debt of 180 billion baht of the state-owned Bank for Agriculture and Agricultural Cooperatives (BAAC) from the subsidy scheme is due in the next fiscal year.Luck: Bringing down rice scheme debt The PDMO has already set aside 30 billion baht for principal payment in the annual budget, leaving 150 billion for refinancing, president Luck Wajananawat said.He said the PDMO had also set aside another 50 billion baht in fiscal 2015 for interest

payments on the debt from subsidy schemes for agricultural products.Liabilities incurred from the subsidy schemes for farm products by previous governments amount to 780 billion baht, the lion's share stemming from the rice subsidy.Of the total of 780 billion baht, 580 billion resulted from the costly rice-pledging scheme sponsored by the Yingluck Shinawatra government and the rest from preceding governments.The Pheu Thai government's rice subsidy, which offered a pledging price 40-50% above market prices, cost 878 billion baht since it was unveiled in the 2011-12 main crop, with 580 billion worth of debt left over.The ricepledging scheme suffered setbacks when it failed to boost market prices.

Several million tonnes of milled rice have been kept in thousands of warehouses in accordance with the government's belief that withholding a large supply from the market would raise prices.Mr Luck said the Finance Ministry would be able to bring down the debt of the rice-pledging scheme to below 500 billion baht by next September to comply with the Yingluck cabinet's resolution, as it had set aside 30 billion baht in the fiscal 2015 budget.Another 50 billion baht will come from the Commerce Ministry's sale of stockpiled grain.

Earlier, the state-backed farm bank estimated that debt incurred from the ricepledging scheme alone would be paid off in the next seven years, assuming that 70-80 billion baht would be set aside in the following years' budgets for interest and principal payments and the Commerce Ministry could generate 50 billion baht from rice sales each fiscal year.However, Deputy Prime Minister MR Pridiyathorn Devakula recently said he had instructed the Finance Ministry to look for a solution to reschedule paying the 500 billion baht for 30 years through bond issues.In a related

development, he said the bank had closed its three 14-billion-baht funds set up to help unpaid farmers for their pledged grain after Ms Yingluck, as head of the caretaker government, had no authority to borrow at that time.The funds have been used to pay 300,000 farmers.

The first fund was simply a donation account, so those who transferred money to this account will not receive any refund.The second fund offered no interest, but depositors will get back the principal when the fund is closed, while the third fund gave 0.63% interest with the principal to be repaid.The BAAC yesterday launched a new 11-month deposit product, which runs until next Aug 31, with a 3% rate to those who donated and deposited in the first and second funds.The product is also exempt from withholding tax for obtained interest.The BAAC recently approved a loan of 17 billion baht to farmers in the Northeast and Upper North who have rice barns in return for hoarding a combined 2.4 million tonnes of rice for a certain period in order to slow the release of grain to market and ease pressure on market prices.

USA Rice Helps ATO Mexico Kick-Off First Marketing Roundtable Laura Dogu MEXICO CITY, MEXICO -- The USA Rice Federation participated in the USDA's Agricultural Trade Office (ATO) Mexico Marketing Roundtable held here last week where marketing and promotion ideas were exchanged between U.S. agricultural cooperators. Presiding over the event were special guests, the Honorable Laura Dogu, ChargĂŠ d'affaires, U.S. Embassy, Mexico City; newly arrived ATO Director Joe Lopez; and Deputy ATO Julio Maldonado.

"We thank USA Rice for their participation, presentation of their program, and spirit of cooperation and coordination," said Lopez.

"We look forward to attending their activities and, together, promoting and increasing U.S. rice sales to Mexico." USA Rice provided a general overview of consumer and foodservice promotional activities (see ("Building on Successful 2013 Program, USA Rice Reaches Out to Mexican Consumers," USA Rice Daily, March 11, 2014 and "USA Rice Forms Promotions Advisory Council in Mexico," July 24, 2014), the new American seal (see "Mexico Market Under Attack - Part Two: Enhancing Rice's Profile," USA Rice Daily, May 21, 2014), restaurant and chef promotions (see "U.S. Grown Rice Fuels 'Wednesday Paella' Promotion in Top Export Market," USA Rice Daily, June 12, 2014 and "USA Rice Writes the Book on Rice for Cooking Schools in Mexico," August 23, 2014), in-store promotions with Sam's Club and other popular grocery stores, (see "In-store Demonstrations Drive Rice Sales in Mexico," USA Rice Daily, February 10, 2014) and various trade shows throughout Mexico (see "USA Rice at Mexico's Exphotel Trade Show to Increase Demand," USA Rice Daily, June 27, 2014). FAS staff was invited to observe and participate in future activities.

Valued at $18 billion, Mexico is the second largest export market for all U.S. agricultural products, and still the top destination for U.S. rice.

Contact: Marvin Lehrer (210) 663-0360

Application Deadline for Rice Leadership Program

Nears STUTTGART, AR -The deadline for submitting applications for the Rice Leadership Development program is October 4. Rice producers and other industry-related professionals are encouraged to apply for the next class, which will be announced in December at the USA Rice Outlook Conference in Little Rock, AR. For more information on the program or an application form, visit http://www.usarice.com.

Contact: Chuck Wilson (870) 673-7541

Louisiana Wraps Up National Rice Month Celebrations "And...they're off!"

JENNI NGS and LAKE CHAR LES, LA -On Saturd ay, September 20, nearly 200 runners gathered at Founders Park in Jennings, LA to compete in the 24thAnnual Louisiana 5-K Rice Run. The popular race is conducted annually during National Rice Month (NRM) under the direction of the Hathaway High School Future Farmers of America and highlights the importance of rice in a healthy diet and the rice industry's economic contributions to the state and nation.

Trophies were awarded to the first place male and female winners and twenty lucky finishers received a microwaveable rice cooker. Rice nutritional information and NRM promotional

items were also distributed by the Louisiana Rice Promotion Board, a sponsor of the event.Last Wednesday, the 17th Annual Calcasieu-Cameron Rice Growers Association (Cal/Cam RGA) and Port of Lake Charles National Rice Month Celebration was held in Lake Charles.

Cook-off contestants Seventeen students participate d in a cooking contest.

Winners included Victoria Pinal of Sam Houston High School, first place; Daniel Hammond of W.W. Lewis Middle School, second place; Brittany Easton of Starks High School, third place; and Aubrey Sweeny of R.D. Molo Middle school, heart-healthy winner.

Adam Habetz, president of the Cal/Cam RGA thanked Farmers Rice Mill of Lake Charles for providing electric rice cookers for each of the contestants, and the Louisiana Rice Growers Association and Hoppe Farms for each providing one-pound bags of Louisiana-grown rice for the competitors.

Contact: Randy Jemison (337) 738-7009

Paddy harvesting starts in Punjab, Haryana; late rains improve sentiment

By Madhvi Sally, ET Bureau | 30 Sep, 2014, 03.49PM IST Rice plantings at 37.48 million hectares were more than last season’s 37.42 million hectares, but areas under coarse cereals, oilseeds, pulses and sugarcane were less.

NEW DELHI: Newly harvested paddy has started arriving in the markets of Punjab and

Haryana while late rains have helped boost the area under the crop to more than last year's levels, developments that bode well for the supplies of the staple grain and food inflation. Scanty rains in the first half of the June-September monsoon season had threatened to hurt this year's farm output, which is critical to the overall economy in a country where more than half the workforce is employed in agriculture. But rains had picked up in the second half, and though still this season's average rainfall is 12% below what is considered normal, water levels in reservoirs are better than their 10-year average.

Late rains are likely to help keep soil moisture longer, benefiting winter crops such as wheat.

According to agriculture ministry data, total crop plantings at 101.93 million hectares for the week ended September 26 were still 2% below last year's level. Rice plantings at 37.48 million hectares were more than last season's 37.42 million hectares, but areas under coarse cereals, oilseeds, pulses and sugarcane were less. Early-sown basmati and other rice varieties have started reaching mandis in the two northern grain-bowl states, ahead of the procurement season that begins on October 1. Farmers have also started harvesting other summer crops of cotton, soyabean and pulses. Regional basmati exporters have already entered the market and are buying the 1509 basmati variety at Rs 2,450 a tonnes, said Raj Sood, a trader from the Khanna mandi in Punjab.

According to officials at Food Corporation of India, the government's grain procurement agency, it estimates to procure 30.05 million tonnes of rice this year. Of

this, it is expected to buy 8.2 million tonnes from Punjab, 4.35 million tonnes from Chhattisgarh and 4.1 million tonnes from Uttar Pradesh. As of September 1, the country had adequate stock of 21.7 million tonnes of rice in its buffer and strategic reserve. Exporters are, however, concerned that with the discontinuation of a 3% interest subvention scheme, they will not be able to export the same quantity as they shipped last time. Gurnam Arora, joint managing director of Kohinoor Foods, said global prices were weak and an incentive was necessary for the industry.

155.05 billion cubic metres, down from 85% last year, but better than the 10-year average of 76%. Himachal Pradesh, Gujarat, Punjab, Rajasthan, West Bengal, Tripura, Uttarakhand, Madhya Pradesh, Andhra Pradesh, Kerala and Tamil Nadu have less water in the their reservoirs than last year, the Central Water Commission said. The rainfall deficit has been worst in Haryana and west Uttar Pradesh at 56%, followed by Punjab at 50%.

Rice output hits a record high Sohel Parvez

Cotton prices could weaken as arrivals begin across Gujarat, Maharashtra, Punjab, Haryana and Rajasthan mandis. North Indiabased millers and ginners are buying cotton at Rs 33,000 per candy of 356 kg. India is the world's second-largest producer, behind China. Indian farmers have planted cotton on 12.66 million hectares this year, an 11% increase over last year. International prices are less than local rates. "Multinational merchants Louis Dreyfus, Glencore, Reinherdt and Ecom are away from the market, expecting prices to be at international level of Rs 30,500-31,000 per candy," said Rakesh Rathi, owner of trading and ginning company KCT Associates at Abohar, Punjab.

Traders said with China unlikely to buy huge quantities, they have to look at alternative markets. "Bangladesh, Pakistan, Vietnam and Far East countries from Taiwan to Indonesia will be the new markets for India cotton," said Dhiren Sheth, president of the Cotton Association of India.

Data from the India Meteorological Department showed that two-thirds of the country's 36 sub-divisions received normal to excess rainfall this monsoon season.

The country's major 85 reservoirs were filled to 79% of their total capacity of

Rice production edged up to a new high last fiscal year due to an increase in yield in all three crops seasons for favourable weather and a more balanced use of fertiliser.Production rose to 3.44 crore tonnes in fiscal 2013-14, from 3.38 crore tonnes a year ago, thanks to a record boro output.Boro yield rose 1.6 percent year-onyear to 1.90 crore tonnes in fiscal 2013-14, according to a recent estimate by Bangladesh Bureau of Statistics.Despite the rise in output, imports started to show an upward trend in fiscal 2014-15 that began in July. Some 4,840 tonnes of rice were imported during July to September 28, according to data from the food ministry.

During July to September 18 last year, 990 tonnes of rice were imported."Maybe some importers are bringing in rice from neighbouring countries to reap price benefits," said Abul Bashar Chowdhury,

chairman of Chittagong-based BSM Group.This was another year of increased rice yield despite falling cultivable land to grow the staple.The country stands well above its annual food grain consumption requirement of less than three crore tonnes, according to a study by Bangladesh Institute of Development Studies.The research organisation estimated that the daily per capita food grain consumption was 509 grams, including rice at 462 grams.As a result, retail prices of rice have remained stable in the past couple of months.

One of the main reasons behind this is a high level of global production of rice and wheat.Food grain prices have been the lowest in recent years worldwide, Chowdhury said.Banking on higher production and increased public stocks, the government has decided to export 50,000 tonnes of rice to Sri Lanka under a special arrangement.The government decision comes at a time when damage to aman seedlings due to recurrent floods is feared to affect production.The Department of Agricultural Extension (DAE) said most farmers were able to replant the seedlings of the second biggest crop on their affected fields after the floods.But recent floods in some districts have affected crops, mostly aman paddy, on 1.13 lakh hectares of land, said a senior official of the DAE, seeking anonymity.

The DAE targeted to bring 52.50 lakh hectares of crop land under aman cultivation. So far, 55.05 lakh hectares have come under transplantation, the official said."Farmers replanted more than 90 percent of the seedlings in the fields damaged by the floods. But the recurrence of the floods is more depressing," he said.

The DAE aims to ensure production of 1.34 crore tonnes of rice from aman cultivation. It

also targets 24 lakh tonnes of the staple during the aus season by ensuring cultivation on 10.55 lakh hectares.The US Department of Agriculture lowered its prediction on Bangladesh's rice harvest last month. It says Bangladesh may harvest 3.46 crore tonnes of rice in the current fiscal year, down from its previous projection of 3.48 crore tonnes Of this, it is expected to buy 8.2 million tonnes from Punjab, 4.35 million tonnes from Chhattisgarh and 4.1 million tonnes from Uttar Pradesh

Punjab offers incentives to rice millers from outside of state Press Trust of India | Chandigarh September 30, 2014 Last Updated at 20:05 IST The Punjab government has agreed to give incentives to rice millers from outside of state by slashing local levies in an effort to encourage buyers to buy basmati crop which is staring at "glut" position in the wake of high acreage. Punjab Chief Minister Parkash Singh Badal today announced slashing market fee and rural development fund by one per cent each on basmati crop in order to motivate buyers from outside of state for purchase of basmati, said an official spokesman. The Market Fee and Rural Development Fee would be charged at one per cent each against two per cent each charged earlier from buyers outside Punjab, said the spokesman.

At present, Punjab charges market fee and RDF at two per cent each, besides infrastructure cess of three per cent and VAT of five per cent on foodgrain. However, basmati exporters could claim VAT refund and there will be no infrastructure fee on basmati purchase. "The incentives will be meant for rice processors or millers of Haryana for export purpose only," Punjab Agriculture Minister Tota Singh said here. Singh said Haryana requires paddy as they have surplus milling capacity and these incentives will encourage them to enter Punjab market for the purpose of buying crop. This decision comes after discussions were held with rice exporters from Haryana who were demanding incentives on par with Punjab in order to buy basmati crop from there. Punjab basmati growers have been complaining about not getting remunerative rates this season similar to what crop prices prevailed last season.

Growers in Punjab had accused even "unscrupulous" traders of lowering crop prices by forming cartel. Basmati crop in Punjab is fetching Rs 2,100 to Rs 2,400 a quintal as against Rs 2,800 to Rs 3,000 a quintal recorded at the time of arrival in grain markets. Notably, in neighbouring Haryana also, basmati prices are higher by Rs 300-400 per quintal than prices ruling in Punjab. The state government also apprehended that market price of basmati would be lower than the previous year, as a result, the government should encourage more buyers so as to ensure remunerative prices to farmers, said the spokesman. Problem arose for paddy growers of Punjab as area under basmati crop surged by 55 per cent to 8.62 lakh hectares this year, creating a "glut like" situation in the state.

With around 30 per cent of total paddy area being under basmati, its output is expected

to reach 34 lakh tonne as against 22.65 lakh tonnes recorded last season. The Punjab government has also decided to continue with the policy of giving incentives to state rice millers on purchase of basmati crop. The state government had last year waived market fee (two per cent), RDF (two per cent), infrastructure cess (three per cent) on purchase of basmati in order to push crop diversification in the state.

Punjab and Haryana markets receive new paddy crops

By Madhvi Sally, ET Bureau | 1 Oct, 2014, 10.49AM IST Of this, it is expected to buy 8.2 million tonnes from Punjab, 4.35 million tonnes from Chhattisgarh and 4.1 million tonnes from Uttar Pradesh.

New Delhi: Newly harvested paddy has started arriving in Punjab and Haryana markets while late rains have helped boost the area under the crop to more than last year's levels. This bodes well for supplies of staple grain and food inflation.Scanty rains in the first half of the June-September monsoon season had threatened to hurt this year's farm output, which is critical to the overall economy in a country where more than half the workforce is employed in agriculture. But rains had picked up in the second half, and though still this season's average rainfall is 12% below what is considered normal, water levels in reservoirs are better than their 10-year average.

Late rains are likely to help keep soil moisture longer, benefiting winter crops such as wheat.

According to agriculture ministry data, total crop plantings at 101.93 million hectares for the week ended September 26 were still 2% below last year's level. Rice plantings at 37.48 million hectares were more than last season's 37.42 million hectares, but areas under coarse cereals, oilseeds, pulses and sugarcane were less.Earlysown basmati and other rice varieties have started reaching mandis in the two northern

grain-bowl states, ahead of the procurement season that begins on October 1.Farmers have also started harvesting other summer crops of cotton, soyabean and pulses.

Regional basmati exporters have already entered the market and are buying the Rs 1,509 basmati variety at Rs 2,450 a tonne, said Raj Sood, a trader from the Khanna mandi in Punjab.According to officials at Food Corporation of India, the government's grain procurement agency, it estimates to procure 30.05 million tonnes of rice this year. Of this, it is expected to buy 8.2 million tonnes from Punjab, 4.35 million tonnes from Chhattisgarh and 4.1 million tonnes from Uttar Pradesh.As of September 1, the country had adequate stock of 21.7 million tonnes of rice in its buffer and strategic reserve. Exporters are, however, concerned that with the discontinuation of a 3% interest subvention scheme, they will not be able to export the same quantity as they shipped last time.Gurnam Arora, joint managing director of Kohinoor Foods, said global prices were weak and an incentive was necessary for the industry.

Cotton prices could weaken as arrivals begin across Gujarat, Maharashtra, Punjab, Haryana and Rajasthan mandis. North India-based millers and ginners are buying cotton at Rs 33,000 per candy of 356 kg. India is the world's secondlargest producer, behind China.Indian farmers planted cotton on 12.66 million hectares this year, an 11% increase over last year.

International prices are less than local rates.

"Multinational merchants Louis Dreyfus, Glencore, Reinherdt and Ecom are away from the market, expecting prices to be at international level of Rs 30,500-31,000 per candy," said Rakesh Rathi, owner of trading and ginning company KCT Associates at Abohar, Punjab. Traders said with China unlikely to buy huge quantities, they have to look at alternative markets.

Odisha waives two per cent CST on interstate trade of rice Nirmalya Behera | Bhubaneswar September 30, 2014 Last Updated at 20:35 IST

Paving way for sale of surplus rice, the state government has waived two per cent Central Sales Tax on interstate trade of this staple food item."In exercise of the powers conferred by sub section(5) of section 8 of the Central Sales Tax Act, 1956 (74 of 1956) , the state government, having been satisfied that it is necessary so to do in the public interest, do here by direct that the tax on sale of rice to a registered dealer in course of interstate trade or commerce by a dealer, having his place of business in the state of Odisha, shall be exempted to the conditions of production of declaration in Form C prescribed under the Central Sales Tax (registration and turnover ) rules, 1957 obtained from the purchasing dealer", read a state finance department notification.

Rice millers say, the waiver of the levy will boost the trade of surplus rice in a transparent manner."Neighbouring states like West Bengal, Chhattisgarh, Jharkhand and Bihar have already allowed free trade of rice.Odisha being a rice surplus state, now trader can sale the surplus rice to the registered dealers through fair means," said Shyamlal Agarwal, President, All Odisha Rice Miller Association.With this exemption, the traders will be able to compete with the rivals in other states, he added.Traders peg the state's rice consumption at 2.2 million tonne. In 201314, the state government had procured a little above 2.8 million tonne of rice.Due to the prevalent tax structure, surplus produce could not be moved out of the state, compelling the state government to procure more than its consumption capacity.

Inadequate storage capacity further compounded the problems for the government.The state government, in Kharif 2014, aims to procure 8.46 million tonne of rice with a yield of 2,350 kg per hectare.