4th april,2014 daily exclusive oryza news by riceplus magazine

4th April, 2014

TOP Contents - Tailored for YOU Latest News Headlines…  USDA Assures Global Market U.S. Rice is GM-Free  Oryza March 2014 Rice Market Review  Rice Belt of Italy Revisits History  USDA Assures Global Market U.S. Rice is GM-Free  Oryza U.S. Rough Rice Recap – Cold, Wet Weather Slows Planting; Exports Rebound  Oryza Rice Currency Analysis for Today – Brazil Real Falls 0.5%  South Korea Rice Farmers Oppose Liberalization of Imports  Nepal Rice Industry Under Threat Due to Massive Imports from India  Pakistan Faces Huge Post-Harvest Losses due to Inadequate Rice Storage facilities  FAO Projects Global Rice Production to Increase to 497 Million Tons in 2013-14; Up 1% from Previous Year 

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India Andhra Pradesh State Rice Production Affected by

Power, Water Crises  Thailand Rice Sales May Lead to Price War with Vietnam, India; Thai Government Plans to Stop Direct Sales to Curtail Price Decline Oryza Overnight Recap – Chicago Rough Rice Futures Seen Marginally Higher as Grains Look to Recover from Yesterday’s Losses Philippines Seeks More Participants in April 15, 2014 Rice Tender for 800,000 Tons Oryza Global Rice Quotes

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News Detail…

USDA Assures Global Market U.S. Rice is GM-Free Apr 03, 2014

On Tuesday, the U.S. Department of Agriculture (USDA) announced the reinstatement of a letterhead statement indicating no-GM use, the US Rice Federation reports. The statement may be used by exporters and other industry members.The statement, by a USDA entity called the Grain Inspection, Packers and Stockyards Administration (GIPSA) states: “There are no transgenic rice varieties for sale or in commercial production in the United States at this time.”This letterhead statement comes at the end of a years-long effort to completely remove all traces of LibertyLink from the U.S. rice supply. During testing for LibertyLink, there was a leak that prompted substantial litigation in federal and state courts, resulting in a reported $750-million settlement by the developer of LibertyLink rice.

This leak prompted the U.S. rice industry to adopt voluntary guidelines called the Seed Plan that worked to remove all LibertyLink rice from rice seed, starting in 2007. International markets are antagonistic toward GMrice and the threat of GM-rice in the U.S. rice supply was challenging confidence in U.S. exports. U.S. producers and exporters are hopeful that this unified response to the global reaction will reassure international markets that U.S. rice does not use GM-products.

Tags: GM-rice, GMO, LibertyLink, U.S. rice, US Rice Federation

Oryza March 2014 Rice Market Review

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The Oryza White Rice Index, a weighted average of global white rice export quotes, ended the month of March at $453 per ton, down about $8 per ton from a month ago and $36 per ton from a year ago. The Oryza WRI declined in March because of softness in Thailand rice quotes. Thailand 5% broken rice quotes declined about $45 per ton from a month ago and $155 per ton from a year ago, mainly due to discontinuation of Thai rice pledging program. Thailand remained the cheapest origin while South America remains the most expensive origin in March. Some softness in Vietnam and South America rice quotes were offset by the higher quotes from India, Pakistan and U.S. Thailand Thailand 5% broken rice quotes ended the month at about $385 per ton, down about 10% from about $430per ton recorded a month ago and down about 29% from about $540 per ton recorded a year ago.

Thailand rice prices are declining due to the discontinuation of the rice mortgage program (which used to pay farmers about 40% above market rates) in February 2014. According to sources, paddy rice prices in the local market have fallen by almost 63% to 5,500 baht (about $170) per ton since the discontinuation of the rice mortgage program, compared to 15,000 baht (about $460) per ton paid by the government under the scheme.

Thailand has pledged about 11.62 million tons of paddy from 2013-14 main crop under the rice pledging scheme that was discontinued this year. Thailand rice farmers are still struggling to get their fund for pledged rice to government under the rice pledging scheme. Thailand government is launching various schemes to raise fund to pay the farmers. Thailand government is planning to sell about 2,000 tons of rice packed in bags of about 5 kilograms, 15 kilograms and 50 kilograms to help pay farmers under "Thai Rice Helps Thai Farmers" campaign. The Thailand government is also trying to sell rice through the Agricultural Futures Exchange of Thailand (AFET) to raise funds. According to official sources, the caretaker government has so far sold over 500,000 tons of rice through the AFET, and plans to sell more than one million tons of rice in June, 2014.

Separately, the Thailand caretaker government has approved payments to rice farmers from the 20 billion baht (about $621 million) borrowings from the Central Budget, according to the local sources.

Thailand exported about 1.4 million tons rice in first two months of the current calendar year, up about 40% from the same period in last year, according to the Thailand Customs Department. At the current pace, Thailand‟s total rice exports in 2014 could reach about 8.4 million tons, up about 27% from about 6.6 million tons exported in 2013.

Thailand‟s Constitutional Court has nullified the February 2, 2014 general election, a move that is likely to deepen the political turmoil in the country and adversely impact the country‟s rice sector. No date has been decided yet for re - election. Earlier the Thailand Election commission had said that re-elections may be held in late April, 2014.

Thailand‟s office of Agriculture and Economics estimates that Thailand will produce about 38.8 million tons of

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paddy in 2014, almost unchanged from an estimated 38.79 million tons produced in 2013. Meanwhile, according to the USDA, Thailand‟s paddy rice production is expected to reach about 31 million tons in MY 2013-14, up about 1.5% from 30.6 million tons of paddy produced in MY 2012-13.

At the end of this month, Iraq‟s Grain Board said that it will allow Thailand to participate in rice import tenders, a move that is likely to boost Thailand rice exports this year. Iraq purchased about 845,000 tons of rice from Thailand in 2012, but stopped purchasing rice from Thailand in the second half of 2013 due to quality concerns.

Thailand is also planning to participate in a tender closing April 15, 2014 to supply 800,000 tons of rice to the Philippines; however, Vietnam is expected to win the bulk of this tender.

The Rice Department in Thailand has partnered with the National Electronics and Computer Technology Center (NECTEC) in order to develop a new rice-testing instrument using Photonics Technology. The instrument will sort rice seed by class and quality.

India India 5% broken rice ended the month at $430 per ton, up about 2% from about $420 per ton recorded a month ago and down about 3% from about $445 per ton recorded a year ago. Meanwhile, average monthly wholesale rice prices in India increased to about Rs.3, 180 per quintal (about $530 per ton, using current exchange rate) in March 2014, up about 16% from about Rs.2, 731 per quintal (about $444 per ton, using current exchange rate) in February 2014, and up about 29% from about Rs.2, 458 per quintal (about $452 per ton, using current exchange rate) in March 2013, according to official sources.

The value of the Indian rupee has advanced about 4% so far this calendar year.

India is also expected to increase the minimum support price of common grade paddy to about Rs.1,360 per quintal (about $227 per ton) for the crop year 2014-15, up about 4% from about Rs.1,310 per quintal (about $220 per ton).

The USDA forecast that India rice production is expected to increase to about 105 million tons in MY 2013-14, up about 2% from previous estimates of about 103 million tons, due to good weather and good rice yield of the Kharif season crop. Separately, due to unseasonal rains and hailstorms in first half of the month have led to heavy losses of crops, including winter rice (November – March), in the Indian state of Maharashtra and some other states. Most of the damage was seen in horticulture crops.

Meanwhile the U.S. is likely to relax its import tolerance norms for a fungicide found in Indian basmati rice by July 2014, according to local sources, which could increase India basmati rice export to U.S. markets.

Separately, Iran revised the accepted level of arsenic content in Basmati rice from 150 parts per million ton 120 parts per million, which could heart India rice export to Iran. Iran is the largest importer of basmati rice and accounted for about one million tons or about 32% of India's total basmati rice exports of about 3.46 million tons in FY 2012-13 (April – March).

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Vietnam Vietnam 5% broken rice ended the month at $390 per ton, down about 3% from about $400 per ton recorded a month ago and down about 1% from about $395 per ton recorded a year ago.

Vietnam exported about one million tons of rice in January 1- March 27, 2014, down about 31% from about 1.45 million tons rice exported in first quarter on 2013, according to Vietnam Food Association. Separately, Vietnam Ministry of Industry and trade are expecting to export about 4.27 million tons rice by May 2014.Vietnam trade Ministry also seeking the approval of the government to implement a mechanism on rice export to China across Lao Cai province's border gate to curb illegal rice exports. Vietnam is targeting to export of about 7 million tons rice this year, up slightly from about 6.88 million tons rice exported in 2013.

In beginning of the month, Vietnam has lowered the minimum export price for low grade rice (25% - 100% broken) to $355 per ton, down about 3% from the previous floor price. The Vietnam government has also approved the stockpiling of about 2 million tons of paddy rice by private companies for about four months to avoid a price drop as the country‟s main rice crop harvest peaks this month. According to the Agriculture Ministry, the winter-spring crop in southern Vietnam is expected to yield about 11.7 million tons of paddy rice, up about 1% from about 11.6 million tons during the previous year.

Pakistan Pakistan 5% broken rice ended the month at $410 per ton, up about 3% from a month ago and down about 5% from a year ago.

Pakistan rice exporters have lost millions of rupees in the last few weeks due to the sharp appreciation of the rupee against the US dollar since February 28, 2014. Pakistan rice exporters say their shipments could decline and they could loose buyers if the rupee continues to appreciate against the dollar. Separately, Pakistan rice exporters have urged to the government to stabilize the rupee at a „rational level.‟ Meanwhile, Pakistan has exported about 2.08 million tons of rice in the first eight months of the fiscal year 2013-14, starting in July, down about 3% from about 2.14 million tons rice exported during same time in last year, according to the Pakistan Bureau of Statistics.

Rice farmer groups in Pakistan, including the Farmers‟ Association of Pakistan and Rice Millers Association, are opposing the government's decision to grant non-discriminatory market access (NDMA) or Most Favored Nation (MFN) status to India as Pakistan will not impose duties on agricultural import from India under NDMA/MFA provision. They said MFN status to India will destroy Pakistan‟s rice industry because Indian government are providing subsidy to Indian farmers on electricity, diesel and agricultural loan. Farmer groups say that they are not averse to trade with India, but they would oppose any move to grant NDMA/MFN status to India until the government assures farmers in Pakistan of safeguarding the agriculture sector from unfair competition.

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Separately, Pakistanâ€&#x;s Federal Committee on Agriculture (FCA) has set a target of 6.81 million tons of rice (basis milled) to be produced from an area of 2.78 million hectares in 2014-15.

Cambodia Cambodia 5% broken rice quotes ended the month at $455 per ton, unchanged from a month ago.

Cambodia exported about 84,330 tons of rice in first quarter of 2014, down about 11% from about 95,228 tons rice exported in same time last year. Cambodia is targeting one million tons of rice exports annually by 2015.

Separately, Cambodia launched the Cambodia Rice Federation to improve competitiveness, promote trade, and increase investment in rice sector.

Brazil Brazil 5% broken rice quotes ended the month at $665 per ton, unchanged from a month ago.

According to the USDA, Brazil's paddy rice production in MY 2014-15 is expected to remain at last year's level of about 12.2 million tons while paddy rice acreage is expected to decline by about 20,000 hectares in MY 2014-15 due to crop rotation practices and pest infections. Meanwhile, the USDA expects Brazil rice exports to drop to about 900,000 tons in MY 2014-15, down about 5% from an estimated 950,000 tons of rice exports in the previous year partly due to governmentâ€&#x;s plans to lower its rice stocks.

Argentina Argentina 5% broken rice quotes ended the month at $625 per ton, down about 1% from a month ago and unchanged from a year ago.

According to a survey by the Association Correntina Rice Planters and Grain Exchange Entre Rios, rice acreage in Argentina is expected to grow to about 231,806 hectares in 2013-14, up about 1.6% from about 228,089 hectares in previous year.

U.S. U.S. 4% broken rice ended the month at $585 per ton, up about 1% from about $580 per ton recorded a month ago and down about 8% from about $635 per ton recorded a year ago.

Rice production in the U.S. is expected to decline significantly in 2014 due to ongoing drought conditions in two major rice growing states of California and Texas. Over 94% of California remains under drought and rice plantings in the state could decline sharply this year due to shortage of water. Planting usually begins in AprilMay, but farmers in California say that officials are likely to provide only 40% of the water that is normally supplied due to the ongoing drought.

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Meanwhile, most farmers in Texas will go without water from Highland Lakes in 2014 for the third consecutive year due to drought, according to the Lower Colorado River Authority (LCRA) which manages water supply in Texas.

U.S. rice supplies are tight. According to the USDA, milled rice production in the U.S. is estimated at about 6.1 million tons in MY 2013-14, down about 3% from about 6.3 million tons in the previous year.

Africa According to the USDA, illegal rice imports into Nigeria have increased sharply to about 3 million tons in 2013 and are likely to continue in the future due to higher levies on rice imports and inaction of the government to curb rice smuggling. The Nigerian Federal Government, which plans to ban rice imports by 2015, introduced a 40% levy on brown rice imports and a 110% levy on polished/milled rice imports since January 1, 2012 to discourage imports and encourage local rice production. However, this led to cross-border informal rice trade and evasion of duty payments (estimated at about $2 billion in 2013). The USDA expects that Nigeria will import about 3.5 million tons of rice in 2014-15, up about 17% from an estimated 3 million tons in 2013-14due to lower production and higher demand this year. Milled rice production is expected to decline by about 7% to 2.6 million tons in 2014-15, down from an estimated 2.8 million tons in 2013-14, the USDA said.

The Nigerian government says will review the current rice tariff policy and encourage investment in local rice industry to reduce smuggling of rice into the country.

The Ghana government is boosting its effort to increase production and processing of rice locally to reduce dependence on imported rice, according to some official sources. The government and the private sector are working together to increase the harvested area under rice and to enhance rice processing facilities in the country. In mid-month, Ghana has signed an agreement with the Ningxia Province of China for the development of rice fields around Wheta in the Volta region in Ghana, according to official sources.

China According to China's Customs Department, China has import about 338,700 tons rice in first two month of calendar year 2014, down about 20% from about 425,813 tons rice import during same time in last year.

Separately, China has signed an agreement to import about one million tons of rice from Thailand. According to sources, Thailand is expected to export about 100,000 tons of rice to China soon.

Philippines Total rice stocks in the Philippines reached at about 2 million tons as of February 1, 2014, down about 1% from about 2.02 million tons recorded during the same time in 2013, and down about 6% from rice stocks of about 2.12 million tons in the previous month, which are sufficient for 59 days, according to the Bureau of Agricultural Statistics.

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Philippines Agriculture secretary announced in the beginning of the month that Philippines will continue to import rice in 2014 due to the depletion in rice stocks and shortfall in production due to typhoons last year. The Agriculture Secretary says that the country targeted about 20 million tons of paddy rice production to achieve self-sufficiency in rice in 2013, but fell short by about 8%. Under its self-sufficiency in rice goal, the Philippines government is targeting to produce 21 million tons of paddy rice in 2014, which is about 14% more than the 18.44 million tons produced in 2013.

Meanwhile, the Philippines government is looking to buy 800,000 tons of 15% broken white rice long variety via an open tender set for April 15, 2014 with delivery in four shipment between May and August, 2014 to improve supplies during lean season. Meanwhile Philippines rice farmers are opposing this move to import rice during this year's harvest season of the second crop. They said this could hurt farmer income and lead to lower production and higher import requirements later this year.

Separately, a group of economists, including former Prime Minister of the Philippines Cesar E.A. Virata, says that the Philippines government should abandon its rice sufficiency policy and stop the National Food Authority‟s monopoly on rice importation to control rice prices and reduce losses to the exchequer. Meanwhile, the Philippines Agriculture Secretary also urged to the government to develop good irrigation systems to help lower rice production costs and to prevent rice smuggling into the country.

The Philippines Justice Secretary has urged the Agriculture Secretary to remove quantitative restrictions on rice imports as WTO "special treatment" for the country's rice sector had lapsed in June.

Europe According to Italy's National Agency of Rice, paddy rice production in Italy has dropped to 1,471,291 tons in 2013, down about 5% from about 1,551,272 tons in 201due to lower acreage. Italy rice acreage has lowered by about 8% to 216,019 hectares in 2013, from 235,052 hectares in 2012.

The European Union‟s may reconsider zero-import duty status toward Least Developed Countries (LDCs) – such as Cambodia and Myanmar – under the Everything But Arms (EBA) agreement designed to aid economic development in these Southeast Asian countries, as Italy‟s new Minister of Agriculture sounded alarm about the survival of the Italian and European rice sectors, particularly Indica varieties due to that zero- import duty to LDCs. Myanmar Myanmar is expected to increase its rice exports to about 3 million tons in five years, up about 3 times the current rice export of about 1 million tons, according to Myanmar Rice Federation (MRF). According to MRF Myanmar government is framing a new trade policy and it would help rice exporters gain access to new markets. Separately, MRF said that government should encourage foreign direct investment in rice industry.

In addition, Myanmar has chosen rice as one of the national export items in its new National Export Strategy

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that is a part of the export-led growth model to develop Myanmar‟s trade sector, according to the local sources.

Meanwhile, Myanmar's parboiled rice exports are likely to surge to 300,000 tons in the fiscal year 2014-15 (April - March), up almost nine times from a mere 30,000 tons in 2013, according to the Myanmar Rice Industry Association (MRIA). Myanmar rice exports to China have dropped from about 3,500 tons daily to only 2,500 tons daily, amidst falling prices and currency fluctuations, according to MRF. Other Markets Paddy rice production in Australia in expected to decline about 22% to 907,000 tons in 2013-14, from about 1.166 million tons recorded in last year, due to lower acreage and yield, according to the Australian Bureau of Agricultural and Resource Economics and Sciences. Rice acreage in Australia is expected to total about 101,000 heaters in 2013-14, down about 11% from about 114,000 hectares recorded in previous year. And rice yield in 2013-14 is expected to be about 9 tons paddy per hectares, down about 12% from about 10.24 tons paddy per hectares recorded in last year.

Russia's paddy rice production in 2013 declined to about 926,000 tons, down about 12% from about 1.05 million tons in 2012, due to reduced area cultivated and yields, according to Russian Agriculture Minister. Rice acreage in Russia declined about 5% to 190,000 hectares in 2013 from last year.

Bangladesh rice production from the Aus (March - June) and Aman (May - October) crops in FY 2013-14 is expected to reach at about 15.35 million tons, up about 2% from about 15 million tons produced in FY 2012-13, according to the Bangladesh Bureau of Statistics. Separately, The Bangladesh government is planning to procure one million tons of boro milled rice (which is harvested in May) and 150,000 tons of boro paddy rice in FY 2014-15 (July - June), up about 12% from last year‟s targeted procurement of 900,000 tons of rice.

According to the USDA, Colombia paddy rice production is expected to decline about 3% to 1.86 million tons in MY 2014-15, from about 1.93 million tons in MY 2013-14. Meanwhile the USDA said that rice acreage is expected to increase in MY 2014-15 due to higher average prices in 2013 (up about 12% y/y). However, unpredictable weather conditions along with production inefficiencies, slow technology adoption, high input costs, deficient infrastructure and the mitigation challenges of the „vanamiento‟ fungus may reduce yields in MY 2014-15.

The USDA said Mexico paddy rice production is expected to reach at about 194,000 tons paddy rice in MY 2014-15, unchanged from last year's production due to deteriorating agricultural infrastructure, land degradation, lack of financial support, and increased imports.

South Korea's agriculture ministry fixed the rice production target at about 4.15 million tons in 2014-15, down about 2% from an estimated about 4.23 million tons rice produced in 2013-14.

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Rice Belt of Italy Revisits History A forty-year-old partnership between two European towns has become an occasion to learn how rice is grown and traded.

On Monday April 7, in Vercelli (Piedmont) Italy, the heart of one of the most important Italian rice growing areas, a group of French students from Arles, in Camargue, will arrive here to meet Italian student, visit the town, and refresh the links between the two communities, founded a long time.

The students will also make a tour in Vercelli's Commodities exchange, and Ente Risi (the National agency for rice). This will help them to understand how paddy is studied, produced, and put on the market and sold. After this part of the tour, later in the week on Thursday April 10, they will be in Tenuta Colombara di Castell'Apertole, a big rice growing farm, and then in Abbazia di Lucedio (Abbey of Lucedio), an historical "cascina,” an enormous farm going back to the Middle Ages. Its history dates back to 12th century when was founded by a group of French Cistercians monks, coming from cloister of La Fertè, in Chalon-sur-Saone in Burgundy. The land, full of marshes and woods, was given them by a noble family, and today marks the origin of the long history of Italian farming, including rice growing.

Tags: italy rice production, Ente Risi, Piedmont, Abbazia di Lucedio, Abbey of Lucedio

USDA Assures Global Market U.S. Rice is GM-Free Apr 03, 2014

On Tuesday, the U.S. Department of Agriculture (USDA) announced the reinstatement of a letterhead statement indicating no-GM use, the US Rice Federation reports. The statement may be used by exporters and other industry members.The statement, by a USDA entity called the Grain Inspection, Packers and Stockyards Administration (GIPSA) states: “There are no transgenic rice varieties for sale or in commercial production in the United States at this time.”This letterhead statement comes at the end of a years-long effort to completely remove all traces of LibertyLink from the U.S. rice supply. During testing for LibertyLink, there was a leak that prompted substantial litigation in federal and state courts, resulting in a reported $750-million settlement by the developer of LibertyLink rice. This leak prompted the U.S. rice industry to adopt voluntary guidelines called the Seed Plan that worked to remove all LibertyLink rice from rice seed, starting in 2007. International markets are antagonistic toward GM-rice and the threat of GM-rice in the U.S. rice supply was challenging

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confidence in U.S. exports. U.S. producers and exporters are hopeful that this unified response to the global reaction will reassure international markets that U.S. rice does not use GM-products.

Tags: GM-rice, GMO, LibertyLink, U.S. rice, US Rice Federation

Oryza U.S. Rough Rice Recap – Cold, Wet Weather Slows Planting; Exports Rebound Apr 03, 2014

The U.S. cash market was uneventful today as a cold and wet weather slows planting progress. Analysts contend that it is too soon to be worried about the pace of sowing affecting the quality of the 2014/2015 crop although there is concern that a late crop going into very tight ending stocks could compound the problem for those that need rice.As of today, old crop offers were unchanged near $15.55 per cwt fob farm (about $343 per ton) for nearby shipment however most farmers are looking to net around $16.11 per cwt fob farm (about $355 per ton) or higher.

Bids from larger mills increased today to around $15.45 per cwt (about $341 per ton) for April-May delivery

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while bids for exporters could still be found around $15.40-$15.65 per cwt (about $340-$345 per ton), for the same delivery period, however there are still reports of smaller mills paying between $16.00-$16.30 per cwt (about $353-$359 per ton) for prompt delivery.

In the meantime, today the USDA reported that cumulative net export sales for the week ending on March 27th, totaled 81,200 tons, which was considerably higher than last week and 34% higher than the prior 4-week average. Increases were reported for the following destinations including: 42,900 tons to Colombia, 15,000 tons to unknown destinations, 12,800 tons to Japan, 3,500 tons to Guatemala, and 2,200 tons to Canada. There were also decreases of 300 tons reported for Iraq.

U.S. rice exporters shipped 27,700 tons, which was 71% lower than the previous week and the prior 4-week average. The primary destinations included: 8,900 tons to Haiti, 4,600 tons to Jordan, 3,700 tons Canada, 3,200 tons to Mexico, and 1,700 tons Japan.

Tags: U.S. rice market, U.S. rice prices

Oryza Rice Currency Analysis for Today – Brazil Real Falls 0.5% Apr 03, 2014

U.S. dollar index was up +0.32% from the open today, when it traded at 80.468 at the close.

Euro was weaker -0.35% by the close, trading around 1.3719 by end of day, after trading between an intraday high of 1.3805 and low of 1.3698.

Thai baht was weaker -0.14%, trading at 32.480 at the close of business.

Indian rupee was weaker -0.46% at 60.1750.

Brazilian real was weaker -0.53% at the close of trading today, trading at 2.2811 reais per dollar.

Pakistan rupee was -0.01% weaker at 98.1850.

Vietnamese dong was +0.01% stronger at 21093.

Mexican peso was weaker -0.25% today, when it traded at 13.1227 pesos per dollar by the close of business.

Chinese yuan was weaker -0.09%, trading at 6.2114.

Argentine peso was weaker -0.01% at 8.0016 pesos per dollar.

Tags: foreign exchange rates

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South Korea Rice Farmers Oppose Liberalization of Imports Apr 03, 2014

South Korea rice farmers are opposing the governmentâ€&#x;s plan to end its 20-year long rice import quota and liberalize rice imports in 2014, according to Reuters.The South Korean government supports free trade and may open its rice markets this year to gain access for it other products, such as automobiles, in other countries.

However, rice consumption in South Korea is on the decline due to changing food habits and economic growth.

According to the USDA, South Koreaâ€&#x;s rice production is expected to reach around 4.2 million tons in MY 2013-14, against a consumption of about 4.5 million tons. Supplies are expected to be high this year because the country must import around 400,000 tons of rice under World Trade Organization (WTO) obligations.The South Korean government is struggling to reduce rice production and caps rice imports to protect the interests of local rice farmers. In 1993, the WTO allowed South Korea to cap rice imports at 4% of its annual rice

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consumption for 10 years, but it was doubled to 7.96% when the government sought an extension for another 10 years in 2004. The agreement ends this year, and is unlikely to be extended by the WTO, says South Korea‟s Agriculture Minister.The Agriculture Minister says that South Korea has two options: to double import quotas gradually again or to place high tariffs (between 300% - 500%) on rice imports exceeding obligatory purchases of around 408,700 tons per year. Local sources say that imposing high tariffs would be helpful in controlling rice imports, but warn that South Korea may be eventually forced to lower tariffs if negotiations with China over free trade or under the Trans-Pacific partnership materialize. They also add that the WTO may not agree to such high tariff rates on rice imports.

Rice farmers are upset with both the proposals and want the existing cap on rice imports to continue. They say that the government should also fix a support price for farmers and encourage domestic rice production. In 2003-2004, thousands of rice farmers staged violent protests lasting months against an increase in rice imports.

Tags: South Korea rice imports, South Korea rice production

Nepal Rice Industry Under Threat Due to Massive Imports from India Apr 03, 2014

Unable to compete with free influx of rice from India, over 80% of rice mills in the eastern parts of Nepal have shut down in recent years, according to local sources.According to a report by Ekantipur, there are around 300 rice mills in the country and about 120 rice mills have shut down in eastern Nepal (which is close to rice producing states of Uttar Pradesh and Bihar in India) due to competition from Indian rice. Local sources say that while Indian rice is subsidized, rice mills in Nepal struggle with high production and operating costs.Local millers say that rice mills in Nepal used to contribute around Rs. 250 million (about $2.6 million) to the government in taxes annually and also provide employment to about 25,000 people directly three years ago.

However, farmers, millers and workers have all been adversely affected by rice imports from India, particularly since 2011 when India lifted a ban on rice exports to offload its high stocks accumulated due to three consecutive bumper crops.

Millers have urged the government to intervene and support local industries and domestic rice production.According to Nepal‟s Trade and Export Promotion Center (TEPC), the country imported around 504,500 tons of rice in FY 2012-13 (July 16 - July 15), up about 18% from around 428,125 tons in the previous fiscal year. About 98% of the rice imports in FY 2012 – 13 were from India. The USDA says that rice imports

by Nepal jumped from around 33,000 tons in 2010-11 to around 254,000 tons in 2011-12.Meanwhile, Nepal‟s paddy rice production declined to around 4.5 million tons in FY 2012-13, down about 11% from around 5 million tons in the previous year, according to local sources. While the government says that the decline is due to unfavorable weather conditions, local farmers say that it is due to high production costs fueled by high imported fertilizer and seed costs. They say that the government should provide subsidized fertilizers and seeds and also implement a strong support price structure to encourage domestic rice production.

Tags: Nepal rice mills, Nepal rice production, Nepal rice imports

Pakistan Faces Huge Post-Harvest Losses due to Inadequate Rice Storage facilities

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Apr 03, 2014

Pakistan is facing huge post-harvest losses due to lack of proper warehouses to store milled rice, according to the State Bank of Pakistan (SBP).The Bank says Pakistan loses about 10-35% or about 550,000 tons of rice produced yearly due to lack of good storage facilities. The country could save billions of rupees through the development of storage capacities and reducing post-harvest losses, says the SBP.The SBP says that Pakistan produces around 30 million tons of grains including wheat, rice and maize, but the storage capacity provided by the federal and provincial food department is only for around 5 million tons. It adds that the country's agriculture sector, including rice, is facing problems because of lack of infrastructure and market structure for agricultural produce.

The Bank expressed concern that this situation could lead to inefficiencies within all the stakeholders and consequently affect the country's competitiveness.The Bank has decided to introduce warehouse receipt financing (WRF) to enable farmers, traders, aggregators, processors and exporters in getting access to formal financing to set up storage facilities. It has proposed formulating a working group for the development of WRF comprising representatives from various banks and financial institutions in the country. The Bank has also initiated the development of storage, marketing and post-harvest financing system in collaboration with Karachi Stock Exchange, Pakistan Mercantile Exchange (PMEX), Pakistan Banks Association (PBA), Competitiveness Support Fund (CSF) and Pakistan Farmers Association.USDA estimates Pakistan to produce about 6.4 million tons of rice in MY 2013-14, up about 10% from about 5.8 million tons produced in MY 2012-13. Pakistan's rice exports are expected to decline by about 3% to about 3.4 million tons in MY 2013-14 from about 3.5 million tons in MY 2012-13. Domestic consumption in MY 2013-14 is estimated at 2.6 million tons.

Tags: Pakistan rice production, Pakistan rice wastage, Pakistan rice storage

FAO Projects Global Rice Production to Increase to 497 Million Tons in 2013-14; Up 1% from Previous Year Apr 03, 2014

Global rice production (milled basis) is estimated to increase to about 497 million tons in 201314, up about 1% from about 491 million tons in 201213, according to the UN's Food and Agricultural Organization (FAO).

However, FAOâ€&#x;s

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latest projection for 2013-14 rice production is about 1% less than the its first projection of 501 million tons, due to anticipated drought conditions in Australia, Peru, Sri Lanka and Tanzania, and removal of price support in Thailand.

The FAO forecasts world rice utilization to increase by about 2.5% to about 490 million tons in 2013-14 from about 478 million tons in 2012-13 due to an expected gain in food demand by about 2%. The UN agency estimates world rice inventories to increase by about 3% to about 181 million tons in 2013-14, up from about 175 million tons in 2012-13 due to higher expected stocks in China, Thailand and Vietnam.

The FAO estimates global rice trade to increase to about 39 million tons in 2013-14, up about 5% from about 37 million tons in 2012-13. It expects higher imports by Bangladesh, Nigeria and Senegal, China, Indonesia and the Philippines. It also expects Cambodia, Pakistan, Vietnam, Thailand, and the U.S. to increase their rice exports. The FAO says that India is expected to retain its number one rice exporter position despite larger domestic requirements due to the implementation of National Food Security Act. Tags: global rice production, Global rice consumption, Food and Agriculture Organization (FAO)

India Andhra Pradesh State Rice Production Affected by Power, Water Crises Apr 03, 2014

Power and water crises in India‟s southern state Andhra Pradesh may affect rice production and lead to a food crisis in the state, according to farmers' associations.Local sources say that Andhra Pradesh's agricultural sector is suffering due to power and water shortage in the last few years and several rice farmers have shifted from high water-consuming paddy to other crops such as vegetables and cotton which require lesser water, say farmers‟ associations. Removal of subsidy on fertilizers has also increased paddy production costs in the state.Experts warn that if this trend continues, rice production in Andhra Pradesh, which is known as the rice granary of southern India, may decline significantly.

However, some scientists say that production levels may be supported by increasing use of high-yielding rice varieties in the state.Andhra Pradesh is the third largest rice producing state in India after West Bengal and Uttar Pradesh and contributes about 11% of India's total rice production. The state produced around 11.5 million tons of rice in 2012-13, according to the Ministry of Agriculture.The Indian government expects rice production to reach around 106 million tons in 2013-14, but local sources say that production could be less due to lower-than-expected production from the rabi (November - April) rice crop which accounts for around 15% of India‟s total annual rice production.

Tags: India rice production

Thailand Rice Sales May Lead to Price War with Vietnam, India; Thai Government Plans to Stop Direct Sales to Curtail Price Decline Apr 03, 2014

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Increased rice sales by the Thailand government is likely to lead to a price war with Asia's other two rice exporters Vietnam and India, according to the Honorary President of the Thai Rice Exporters Association (TREA), reports Bloomberg.The TREA Honorary President says a price war is possible with Vietnam cutting prices and selling below Thai prices. He noted that prices of Thai 5% broken white rice have declined by about 30% from $394 per ton in 2013 and is currently quoted at around $365 - $370 per ton, lower than $385 per ton in Vietnam and $420 per ton in India. He expects the Thai benchmark rice price to reach around $350 per ton by May 2014, which would be lowest since December 2007.Vietnam has already reduced the minimum export price (MEP) for 25% broken white rice to $355 per ton on March 10, 2014 to speed-up exports. The MEP for Viet 5% rice is $410 per ton. Meanwhile, exporters say that India must reduce its rice export prices by about $20 per ton to compete against Vietnam and Thailand.

As of March 7, 2014, Thailand's rice stockpiles are estimated at around 10 - 13 million tons, according the Commerce Minister. The government is planning to sell at least one million tons of rice to raise about 8 billion baht (around $247 million) every month. The minister says that the government still has to pay 100 billion baht (around $3 billion) to farmers under the rice pledging scheme. It has already spent $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).Meanwhile, Thailand's Department of Internal Trade (DIT) said the government would focus on selling rice to exporters through auctions rather than direct sales, as the exact amount of rice sold is not being properly ascertained by this method and is thereby leading to fall in rice prices. He made the announcement after a meeting with rice millers and exporters over maintaining rice price stability in the local market and seeking assistance measures for rice farmers.

Tags: Thailand rice sales

Oryza Overnight Recap – Chicago Rough Rice Futures Seen Marginally Higher as Grains Look to Recover from Yesterday’s Losses Apr 03, 2014

Chicago rough rice futures for May delivery are currently paused 1 cent per cwt (about $0.22 per ton) higher overnight at $15.665 per cwt (about $345 per ton) as of 8:00am Chicago time. The other grains are seen higher this morning ahead of floor trading in Chicago: soybeans are currently seen about 0.9% higher, wheat was paused about 0.2% higher, and corn is noted about 0.6% higher.U.S. stock index futures continued to hover around the flat-line Thursday following a weaker-than-expected jobless claims report ahead of the government's non-farm payrolls data on Friday. Weekly jobless claims gained more than expected last week, increasing 16,000 to a seasonally adjusted 326,000, according to the Labor Department. Economists polled by Reuters had forecast first-time applications for jobless benefits rising to 317,000. Meanwhile, U.S. trade deficit unexpectedly widened 7.7% to $42.3 billion in February, according to the Commerce Department as exports fell to their lowest level in five months, further signs economic growth slowed in the first quarter.

Economists polled by Reuters had forecast the trade deficit falling to $38.5 billion. The Institute for Supply Management (ISM) non-manufacturing index for March will be reported at 10 am ET. The index, which tracks

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changes in the services sector, unexpectedly fell in February, and analysts at Barclays are expecting a rebound to 52.5 for last month. U.S. stock index futures are currently trading marginally higher, gold is currently trading about 0.5% lower, crude oil is seen trading about 0.3% lower, and the U.S. dollar is currently trading about 0.1% higher at 8:00am Chicago time.

Tags: chicago rough rice futures

Philippines Seeks More Participants in April 15, 2014 Rice Tender for 800,000 Tons Apr 03, 2014

The Philippines wants exporters from at least seven countries to participate in the open tender for 800,000 tons of 15% broken, long-grain rice on April 15, 2014 to ensure a better price deal, according to an official from the National Food Authority (NFA), reports Reuters.The Philippines government has allocated about P17.2 billion (around $383 million) to buy rice in the tender, suggesting an average price of around $479 per ton. While the Philippines traditionally imports rice from Vietnam and Thailand, the government has this time invited the governments of Cambodia, Pakistan, India and the U.S. to participate in the bid, says the NFA Deputy Administrator. He adds that multiple winners are expected for the tender and the contract would be awarded to exporters with lowest bid.

According to the NFA, several foreign private and public companies participated in the pre-bid conference organized by the NFA today. The bid quantity is broken into four lots of 200,000 tons each and a bidder could bid for a minimum of 100,000 tons. Rice must be shipped in polypropylene bags of 50 kilograms each and should be delivered between May and August 2014, the NFA says.Rice imports by the Philippines are expected to provide support to rice export prices in Asia, which have been falling due to increasing supplies from Thailand and Vietnam, say local sources.

Tags: Philippines rice imports

Oryza Global Rice Quotes April 3rd, 2014 Long grain white rice - high quality Thailand 100% B grade 395-405 Vietnam 5% broken 385-395 ↔ India 5% broken 425-435 ↔ Pakistan 5% broken 405-415 ↔ Cambodia 5% broken 450-460 ↔ U.S. 4% broken 580-590 ↔ Uruguay 5% broken 620-630 ↔ Argentina 5% broken 615-625 ↔

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Long grain white rice - low quality

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Thailand 25% broken 345-355 ↔ Vietnam 25% broken 350-360 ↓ Pakistan 25% broken 360-370 ↔ Cambodia 25% broken 420-430 India 25% broken 370-380 ↔ U.S. 15% broken 555-565 ↔

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Long grain parboiled rice Thailand parboiled 100% stxd 410-420 Pakistan parboiled 5% broken stxd 420-430 India parboiled 5% broken stxd 410-420 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% 940-950 Vietnam Jasmine 495-505 ↔ India basmati 2% broken 1515 -1525 Pakistan basmati 2% broken NQ ↔ Cambodia Phka Malis 885-895 ↔ Brokens Thailand A1 Super 300-310 ↔ Vietnam 100% broken 335-345 Pakistan 100% broken stxd 335-345 Cambodia A1 Super 350-360 ↔ India 100% Broken stxd 305-315 Egypt medium grain brokens NQ ↔ U.S. pet food 470-480 ↔ Brazil half grain 345-355 ↔

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Medium grain milled U.S. Calrose 4% broken 1070-1080 ↔ Egypt medium grain 6% NQ ↔ All prices USD per ton, FOB vessel, oryza.com

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Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874