5th august,2014 daily global rice e newsletter by riceplus magazine

5th August , 2014

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Latest News Headlines…  Plan to improve basmati seed varieties under way  Rice export to Iran may go up  USA Rice Intervenes to Curb Mexico's Proposed Palletizing  SunRice aims to take bite out of Frito-Lay in salty snacks market  Area residents appointed to state boards, commissions  The domestic price of rice, food security policy, and world rice prices

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 Drought-Resistant Rice Sows Wealth in India  Cambodia ready for rice bid  Thai tender to sell 167,000 tonnes of stockpiled rice, Aug 7  Heavy falls may mean improved rice harvest  Procurement target for rice set at 30 mt  First rice auction since junta took power open to all traders  DFT set to deliver more rice to China under G2G deal

News Detail…

Plan to improve basmati seed varieties under way August 04, 2014 RECORDER REPORT

Punjab Agricultural Research Board, Rice Research Institute, Kala Shah Kaku; National Institute for Biotechnology and Genetic Engineering; Nuclear Institute for Agriculture and biology; basmati rice farmers; private service providers; and the International Rice Research Institute are actively preparing a plan to improve basmati seed varieties and to improve rice farming and post harvest practices.

According to Pakistan Agricultural Research Council sources, these institutions are also preparing a plan for improvement of research and service capabilities for higher incomes of basmati rice farmers in Punjab and higher export earnings from basmati. Overcoming the major problems affecting Punjab's basmati rice is urgently needed for Pakistan to regain and sustain its competitiveness in the world market, improve the subsector's foreign exchange earnings, and ensure higher incomes for basmati farmers and other stakeholders in the value chain. The ADB financial assistance will focus on measures that meet the following criteria (i) tangible results achievable within 2-3 years; (ii) complementing and adding value to ongoing activities of public and private sector stakeholders; and (iii) having the potential to significantly increase the yields of basmati rice, improve the efficiency of the upstream segment of the basmati value chain, and integrate the upstream more effectively with the midstream and downstream segments of the value chain, sources added.

Rice export to Iran may go up August 05, 2014

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RECORDER REPORT

The export of Pakistan's basmati rice to Iran could increase manifold following Indian rice exporters stepped back due to enhanced import duty on Indian basmati rice by Iran. The industry sources told Business Recorder here on Monday that as Iran has raised import duty on Indian basmati rice from 22 per cent to 40 per cent, Pakistan's rice exporters taking advantage of the situation have demanded of the government to facilitate them to export the rice to Iran and to receive payment of export bills in rupees. They said: "India benefited a lot by facilitating its exporters to export to Iran and receive payments in Indian rupees and increased its basmati rice exports to Iran substantially as there was no competition from Pakistan.

Now, when Iran has raised import duty on Indian basmati rice from 22pc to 40pc and Indian exporters are now in confusion, there is good chance for Pakistani exporter to increase export of basmati rice to Iran, they added."

For several years, Pakistan's super basmati rice because of its aroma and nice taste has been in great demand in Iran but due to hurdles created by the dollar regime, the Iranian buyers were unable to remit the value, they said, adding that a although there are no sanctions on food and medicines yet, the international agency for money transactions blocked all remittances from Iran, causing setbacks to Pakistani basmati rice exporters and Iran's importers of basmati rice. Rice exporters have also urged the Federal Commerce Minister to act promptly and make arrangements with Iran for receiving payments in Pakistani rupees for all exports to Iran so as to enable the Pakistani basmati rice exporters regain their lost market.

USA Rice Intervenes to Curb Mexico's Proposed Palletizing Rule Keep them in storage...for now.

MEXICO CITY, MEXICO -- Mexico's Ministry of Agriculture, Livestock, Rural Development, Fishery and Food (SENASICA) has backed off a plan to require goods entering Mexico to be packed on pallets following discussions with the U.S. embassy here, with the support of the USA Rice Federation, and other agricultural interests. "The proposed rule to palletize goods shipped in sacks, combos, boxes, and small bags would have potentially increased the cost of freight -something we'd like to avoid in our largest export market," said Bob Cummings, USA Rice COO. Cummings added that while the palletizing rule is not currently in effect, SENSASICA is reserving the right to enforce all or part of the rule in the future, but would provide a 60 day comment period for interested parties, followed by time for comment analysis and a grace period before full enforcement would begin.

Contact: Sarah Moran (703) 236-1457 A Little Bird Told Me...

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ARLINGTON, VA -- Just a reminder, the USA Rice Federation maintains two different Twitter accounts. Check in at @eatusrice for recipes and information geared for today's busy consumer and follow @usaricenews to link to the USA Rice Daily every day as well as other news important to the rice industry.

Contact: Deborah Willenborg (703) 236-1444

SunRice aims to take bite out of Frito-Lay in salty snacks market Business Date August 5, 2014 SunRice, Australia's last remaining agriculture monopoly, is taking on global snack food company Frito-Lay in the $3 billion salty snacks market, launching a range of rice chips in a renewed product innovation push aimed at accelerating sales and earnings growth.SunRice's brown rice chips taste like corn chips but are gluten free and will sell at a premium in the health food aisle rather than the snacks aisle alongside Frito-Lay's Smiths, Red Rock Deli and Doritos brands.SunRice is sourcing the chips from a supplier in the US, but chief executive Rob Gordon says that if demand from consumers and retailers Woolworths, Coles and Metcash is sufficiently strong, he will consider producing them in Australia.

While many fast-moving consumer goods companies are closing plants and shifting production overseas, SunRice invested about $32 million last year and about $54 million over the past four years to make new products and boost capacity, in some cases transferring production from Thailand to Leeton in NSW.And as brands such as Kellogg's, Nestle, Kraft and Procter & Gamble slash marketing budgets by between 4 per cent and 50 per cent, SunRice has more than doubled its investment in marketing while launching new products such as resealable packs, organic and gourmet rice and rice/grain blends, ready-made meals and snacks. So far, the investments have paid off. Sales have risen from $809 million to $1.15 billion since 2010, when the group emerged from a 10-year drought, while earnings before interest and tax have recovered from $13 million to $34 million and return on funds employed from 8.1 per cent to 14.1 per cent.

Mr Gordon, who took the helm two years ago, says investment in marketing and innovation has helped SunRice gain market share and fuelled growth in previously stagnant categories. "If we'd have stood still, we'd have seen our market share come off," he said. "Instead we've outgrown the category by a couple of percentage points."SunRice is now urging rice growers to plant bigger crops to lift production from an estimated 825,000 tonnes this year to about 950,000 in 2015 to satisfy local and international demand."Since being back from drought, we’ve grown our branded consumer packs by 7 per cent CAGR and our specialty products have grown 16 per cent CAGR over four years, so we're quite proud of that track record," he said.SunRice has also agreed to pay $4.5 million for the rice milling assets of Blue Ribbon Rice Group, in northern Queensland, where SunRice hopes to encourage rice farmers and sugar cane growers to plant tropical varieties such as jasmine and boost production from about 1000 tonnes to more than 10,000 tonnes.

SunRice has managed to fund capital growth and investment in marketing and innovation from cash flows while reducing gearing from about 60 per cent to 44 per cent. But future growth plans, including expansion into new

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rice-growing areas overseas and into new categories, will depend to some extent on SunRice's ability to raise external capital. Mr Gordon hopes that a capital structure review under way for more than two years will finally come to a head in the next six months."We set ourselves a very difficult set of objectives – maintaining grower control whilst also gaining access to capital markets and making our shares more liquid," said Mr Gordon, who led a similar capital restructuring at Dairy Farmers in 2008.Shareholders, who rejected a $600 million takeover offer from Spanish rice group Ebro in 2011, were intent on retaining control.

But SunRice shares, which are listed on the National Stock Exchange, are trading at a substantial discount to other agriculture stocks.SunRice and its advisers at Macquarie Capital have been exploring several growercontrolled models including Fonterra and Bega Cheese, whose constitution prevents any shareholder owning more than 10 per cent."While our gearing and our net debt is down, clearly access to capital markets would allow us to accelerate our growth," Mr Gordon said. "But we do not have an urgent need for capital – we want to do this properly, we want to do this in a timely manner, but we want to get it right."

Area residents appointed to state boards, commissions Gov. Mike Beebe announced the following appointment to the state boards and commissions: LITTLE ROCK —

Gov. Mike Beebe announced the following appointment to the state boards and commissions: Jay Coker, Stuttgart, reappointed to the Arkansas Rice Research and Promotion Board. Appointment expires June 30, 2016.Katherine Earlywine, Stuttgart, to the State Board of Sanitarians. Appointment expires June 30, 2019. Replaces David McKinnon.Tim Smith, Clarendon, reappointed to the Arkansas Wheat Promotion Board. Appointment expires June 30, 2016.George Toll IV, DeValls Bluff, reappointed to the Arkansas Wheat Promotion Board. Appointment expires June 30, 2016.Douglas Hartz, Stuttgart, to the Arkansas Soybean Promotion Board. Replaces Andrew Oliver. Appointment expires June 30, 2016.

The domestic price of rice, food security policy, and world rice prices CROSSROADS (Toward Philippine Economic and Social Progress) By Gerardo P. Sicat (The Philippine Star) | Updated August 6, 2014 - 12:00am Why must we pay a high price for rice, a basic staple? A kilo of rice at retail costs about twice as much what our neighbors spend. Moreover in recent years, rice prices, aside from being already high, have been rising.

Twice early this year, I devoted my discussion to rice issues (See February 5 and 12, 2014). They focused on rice agriculture, the protectionist framework under which it is produced and traded, and the trail of corruption such a system spawns.“We could have cheaper rice.” It is possible, through sound policies, to have cheaper rice and a sufficiently adequate rice production at home while assuring that the nation is secure in terms of food supply.With 100 million people to feed, the home production regime is highly strained for lack of land and

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sufficient productivity. Orderly imports need to be part of the game.But, in our case, high rice prices have been a normal experience. Before any one tells us, “Impose price control,” let me say this. Direct price control hardly ever works. It might, for a short period, if at all. Price control also adds so many new economic complications.

Life becomes even more difficult for all, just correcting the ills that price control brings.The subject of rice should be a pleasant one, but not in our context or experience. It should, however, be a priority problem issue to be tackled. It affects the nation’s anti-poverty program, health, and economic growth.“National food policy, a multi-sectoral concern.” National food policy is designed to assure that the nation gets sufficient food to feed its population at all times, and shield it from unreasonable fluctuations in price.Within this context, food policy is not the reserve of any one sector of government, but the combined actions of various agencies. It is agricultural, trade, credit, investment and foreign affairs policy, too. It is a mixed combination of many efforts that need to be coordinated.

Along the linkages with other sectors of action in economic policy, the National Food Authority (NFA) comes significantly into play. This agency has the wherewithal of tools designed to implement most of the operational policies related to food. They involve production, and aligning demand with supply of the grain. In the end, they involve trade, domestic and international.The agency operates in all manner conceivable related to the economics of basic food items, most of all, rice.“Food price stabilization and economic growth.” Drs. Dawe and Timmer recently reviewed the experience across East Asia of rice price stabilization and economic growth.

David Dawe was a former economist at IRRI (International Rice Research Institute) and is now with FAO (UN’s Food and Agriculture Organization). C. Peter Timmer, professor emeritus at Harvard University, is an expert with wide experience in agricultural issues of food and a keen observer of Indonesian and East Asian development.

Both observed that economic growth and food security policies produce mutually reinforcing positive outcomes. Observing East and Southeast Asian economies, some successful countries have been able to escape from hunger within two decades or less, within a generation of citizens.Success in food price stabilization policy was experienced through two levels: “At the ‘macro’ level, the aggregate conditions were created in which households at the ‘micro’ level gained access to food on a reliable basis through self-motivated interactions with local markets and home resources.”This meant that, through wise and timely actions at the level of aggregate supply and demand policies (the macro-fundamentals), farmers were enabled to produce grain reasonably cheaply and households to buy rice at low prices. Appropriate trade policies facilitated the adjustment of demand and supply conditions.

“Successful and less successful cases.” Thus, food security at stable prices was achieved even during periods of sharp price surges in rice when world rice supplies were pinched. They gave high marks to the three most

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populous countries in the world – China, India, and Indonesia – in achieving this.Reviewing other situations, they also cited practical difficulties that arose when the governments were unable to achieve stable prices.They continued (I add the bold letters): “Corruption is widespread in many countries, especially when the government plays a major direct role in securing supplies [from domestic or world markets]. Price stabilization, which should ideally lead to domestic prices being equal to world prices on average over the medium-run, can also lead to domestic prices being consistently above world prices for extended periods of time, which hurts the poor because most of the poor are net buyers of food.”“Philippine case.”

They single out our country for a less successful experience, especially during the sharp increases of world food grain prices in August 2007/, November 2010, and in 2012. In our case, domestic rice prices have been consistently unreasonably above world prices.What has happened in the Philippine case is that the rice price stabilization program has become a domestic price support for farmers, which helped to worsen poverty, since the system has led to higher domestic prices that had to be protected. Rice producers are fewer than the millions of consumers who buy rice, including the urban poor.Moreover, the difference between domestic and world prices when we imported rice often went to profits and rents of traders and other non-farming entities. Again, consumers lose in the process.The system of subsidies of price support and operations in the market distribution led to huge financial losses to the government.

Incidentally, their basis for this conclusion on the Philippine case is Dr. Arsenio Balisacan’s contribution to a conference on food policy before he became NEDA Director General.One reason why he was appointed to this important post is that he understands the country’s intricate agricultural problems and poverty issues.

Disentangling and correcting them will require a David-and-Goliath struggle on food policy.The David here is Secretary Balisacan and the Goliath is a behemoth, housed in NFA, but with enormous tentacles all over the industry and in the government.There is, however, a comforting thought in aid of reform.We still have fresh memories of the infamous fertilizer scam and the pork barrel scandals associated with Janet Napoles and her NGOs. Many of these programs were attractively packaged as agricultural programs. In fact, some of them are even linked directly to the Department of Agriculture.All these make us mad.

References: David Dawe and C. Peter Timmer, ‘Why stable food prices are a good thing: Lessons from stabilizing rice prices in Asia,’ Global Food Security, vol. 1 (2012), pp. 127-133; Balisacan, A., Sombilla, M.A., Dikitanan, R.C., 2010, ‘Rice crisis in the Philippines: why did it occur and what are its policy implications? In Dawe, D. (ed.), The Rice Crisis: Markets, Policies and Food Security, FAO and Earthscan, London and Washington D.C., pp. 123-142.

My email is: gpsicat@gmail.com. Visit this site for more information, feedback and commentary: http://econ.upd.edu.ph/gpsicat/

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Drought-Resistant Rice Sows Wealth in India New Agricultural Technologies Cushion Impact of Late Monsoon Rains

By BIMAN MUKHERJI and VIBHUTI AGARWAL Updated Aug. 4, 2014 11:30 a.m. ET A man inspects his agricultural field after planting paddy seedlings in Krishnai, in Assam state, northeastern India. European Pressphoto Agency BRASS, India—The monsoon rains have come late to northern India. In the past, that would have meant certain hardship. But this year, farmers here aren't worried, thanks to new drought-resistant strains of rice that are helping sow prosperity across India's grain belt. "We're hopeful of a good harvest," said Gurcharan Singh, standing amid green seedlings in his fields here in the north Indian state of Haryana. The fast-growing hybrid variety of rice that he planted on 20 of his 80 acres requires about a quarter less water than standard types. Two decades ago, a bad monsoon could cut India's annual economic growth rate in half. Today, however, new seeds and advances in drip irrigation and other agricultural technologies are helping to cushion farmers and the economy. Progress in recent years has been significant. A 19% rain shortfall in 2002 cut grain output 18% and a 22% rain deficit in 2009 dented grain production by 7%, according to government figures. So far this season, rainfall is 25% below average, but economists expect almost no impact on food-grain yields. Changes in cultivation patterns—these days, monsoon-dependent summer-season crops account for 50% of agricultural output, down from about 66% —and the diversification of the economy away from farming have also helped make India less dependent on the weather.

Boys run through a waterlogged street after heavy monsoon rains in New Delhi on Saturday. Reuters In Haryana, farmer Ishwar Dayal says this year he planted a hybrid basmati rice known as Pusa 1509 that grows faster and needs less water than other types. "Groundwater levels in our village have plunged and monsoon rains have become increasingly unpredictable," Mr. Dayal said.The new rice, and an earlier drought-resistant

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variety, Pusa 1121, have drastically improved farmers' yields and incomes, Mr. Dayal and his neighbors in this grain-bowl northern state say. Basmati rice, favored by overseas buyers, commands a higher price than ordinary rice. Mr. Dayal says that with the proceeds of his rice sales in recent years, "I have expanded my land parcel, bought a new tractor and my daughter is preparing for a college education in management."

His friend and neighbor Ram Mehar bought a new car with his rice profits. His license plate ends with the number 1121.

"We took a risk which paid off," Mr. Mehar said.India's new prime minister, Narendra Modi, is pushing an agricultural policy aimed at extending the kind of gains in drought resistance made with rice to other crops and using changes in technology and farming methods to make India's farm output more resilient. He sums it up as "per drop, more crop." Despite the rain shortfall, India's production of unhusked rice is expected to be down just 1.2% from last year's level of 159.4 million metric tons, according to Hiroyuki Konuma, a Bangkok-based assistant director general of the United Nations' Food and Agriculture Organization.

India became the world's largest rice exporter in 2012, when it surpassed Thailand. Despite the drought, is expected to export 9.4 million tons of the grain this year, marginally ahead of Thailand's 9.3 million tons, according to International Grains Council's latest report. The two new rice varieties that are helping protect farmers from the vagaries of rainfall were developed by scientists at the New Delhi-headquartered Indian Agricultural Research Institute charged with coming up with plants that would be more resistant to drought. By crossing select basmati varieties, they obtained the Pusa 1121 hybrid, which was introduced to farmers in 2003 and has become a mainstay of India's exports. Now, Pusa 1121 makes up about 75% of India's total basmati exports.

Pusa 1509 was developed by crossing Pusa-1121 with a high-yielding non-basmati rice, said Ashok K. Singh, a rice project leader at IARI. Mr. Singh said 1509 takes just about 110 to 120 days to mature, compared with the 145 days needed by previous varieties, including 1121.Pusa 1509 was released to farmers last year, and Mr. Singh and other experts expect that it will gradually replace 1121 as the most-planted type of basmati rice.The new varieties have also sharply increased yields. Traditionally, basmati rice has been relatively low yielding— producing 3 tons to 4 tons of grain per hectare (2.5 acres). The new types yield 5 tons to 6 tons per hectare.With

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the onset of the monsoon rains delayed by more than a month this year in his part of the northern state of Uttar Pradesh, Satpal, a farmer who goes by one name, drove on his tractor all the way to the neighboring state of Haryana to buy a sack of seeds for the 1509 rice variety. "With drought-like conditions this year, we know what difference this variety will make," says Mr. Satpal.

Corrections & Amplifications Rainfall across northern India is about 33% below the normal level for this point in the monsoon season. A previous version of this article incorrectly said it was about 60% below the normal level. Ishwar Dayal is a farmer from Haryana. The previous version incorrectly said he was in Punjab. India's rice exports this year are forecast by the International Grains Council to be 9.4 million tons. The previous version incorrectly gave the figure as 9.7 million tons.

Write to Biman Mukherji at biman.mukherji@wsj.com and Vibhuti Agarwal atvibhuti.agarwal@wsj.com

Cambodia ready for rice bid Tue, 5 August 2014 Chan Muyhong

Cambodia will join the bidding for the Philippine government’s latest rice import offer, a senior rice industry official says.The Philippine government’s National Food Authority (NFA) last week authorised the import of 500,000 tonnes of rice to the country.The bidding process, which is looking for the best-priced and best-quality rice, is open to all countries. A decision will be made on August 27.The offer was reportedly made as an emergency effort to replenish the country’s rice crops.

Recent severe weather has damaged the crops and driven up prices in the local market, Philippine reports said.Thon Virak, chairman and director-general of Green Trade, a Cambodian state-owned milled-rice exporter, said the Kingdom is ready to make a bid this time, after missing out on a similar tender by the Philippine government last year due to a shortage of able exporters. “This is the second time the Philippines has invited Cambodia to the bidding,” Virak said.“We missed previous bidding because we did not have a united exporter group yet to transport the huge load. But now we have one, we are ready,” he said, referring to the recently founded Cambodia Rice Federation (CRF), which united the country’s rice exporter community in one organisation.“I do not work alone. We are working together in the group now. ”Virak, however, admitted that Cambodia’s high transportation and shipping costs could hamper the country’s chances of landing the deal.“It will be hard for us to give lower quotes than Vietnam. Nevertheless, this is an important step for us. I have discussed with CRF about reducing transport costs to see what we can do about it.”

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CRF president Sok Puthyvuth could not be reached for comment. Kim Savuth, president of Khmer Mekong Food, the country’s biggest rice exporter, said yesterday that the bid is an exciting opportunity for exporters in Cambodia to capture a new market. “We have enough rice to join the bidding. On whether any of the Cambodian exporters will win the bid, I am not sure,” Savuth said.

Thai tender to sell 167,000 tonnes of stockpiled rice, Aug 7

BY APORNRATH PHOONPHONGPHIPHAT BANGKOK Tue Aug 5, 2014 2:15am EDT

(Reuters) - The Thai government will open a tender to sell an initial 167,000 metric tons (184,086 tons) of rice from stocks on Aug. 7, the first lot since sales were halted when the army took control of Thailand on May 22, a senior Commerce Ministry official said on Tuesday.The government was expected to continue to sell up to 500,000 metric tons of rice monthly from stockpiles, with Thai rice the cheapest on the market. "We (will) open widely for everybody, not only exporters, but also those rice traders and domestic rice retailers who need rice could join the tender," said the official, who asked not to be named because she was not authorised to talk to the media.

The director-general of the Commerce Ministry's Department of Foreign Trade, Duangporn Rodphaya, who oversees the government rice stock sales, is due to give a briefing on the details of the rice tender later on Tuesday, the official said.The Commerce Ministry has said the sales of around 500,000 metric tons of rice monthly would not depress prices. Exporters agreed, citing strong demand and competitive Thai prices."It is a good timing as demand remains strong, while our prices are the most cheapest compared to Vietnam and India," said Charoen Laothamatas, head of the Thai Rice Exporters Association.

The price of common grade 5 percent broken Thai white rice was offered at $420 a metric ton, well below the same grade of Vietnam of $465-$470, while Indian grade was at $435-$445."Thai rice is the cheapest. I think demand after the end of the Muslim fasting month and the New Year festivals should help absorb supply," said a Bangkok-based trader.After the army halted the sale of rice stockpiles and ordered a nationwide rice inspection, it found 80 percent of the stockpile was in good condition and decided that rice would be gradually sold via tenders and government deals later this year.Around 14 million tonnes of rice stocks will be sold.

(Editing by Michael Perry)

Heavy falls may mean improved rice harvest Tue, 5 August 2014

Hor Kimsay

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Rainfall over the weekend, which caused flooding in 13 provinces, could improve crop yields for rice growers, provincial authorities say.Agricultural departments in Preah Vihear, Stung Treng, Kampong Thom and Battambang provinces – some of the worst hit on the weekend – all said water was now draining from paddies after submerging the rice for two days. “Actually, it might end up providing enough water for farmers to be able to plant more rice,” Preah Vihear agricultural department director Peung Tryda said.Peung added that about 5,000 of the province’s 60,500 hectares of rice-growing land had been submerged.

The weekend’s floods marked an early start to the year’s heavy-rainfall period. August and September are generally the wettest months of the year.The Ministry of Water Resources and Meteorology issued a warning to high-land provinces such as Preah Vihear prior to the weekend’s floods, which left five people dead.According to the ministry, more rain is forecast for those areas until Thursday.

Contact author: Hor Kimsay

Procurement target for rice set at 30 mt fe Bureau | New Delhi | Published: Aug 05 2014, 01:52 IST

SUMMARYDespite the delayed monsoon and slow progress in sowing, the government on Monday set a 30 million tonne (mt) rice procurement target for the 2014-15 kharif marketing season, starting October. Despite the delayed monsoon and slow progress in sowing, the government on Monday set a 30 million tonne (mt) rice procurement target for the 2014-15 kharif marketing season, starting October.This is a moderate revision from the previous year's kharif target of 32 mt while actual purchase from the farmers was more than 26 mt.The procurement of rice is carried out during the October-September period and over 80% of the total rice purchased from farmers is during the October-April kharif marketing period.

Overall, during the ongoing 2013-14 marketing season which includes both kharif and rabi crops, governmentowned agencies such as Food Corporation of India (FCI) and state government owned agencies have lifted 31 mt of rice till now.According to food ministry sources, Punjab has set a rice procurement target of 8.2 mt for the next kharif market year. The rest of the key contributors to the rice procurement drive by government agencies would be Chhattisgarh (4.3 mt), Uttar Pradesh (4.1 mt), Haryana (2.3 mt), Odisha (2.4 mt) and Andhra Pradesh (2 mt). “Despite deficit monsoon and delayed sowing, the procurement targets for kharif crops are comparable to the last kharif season’s target and exceed the actual procurement of last year’s kharif crops,” an official statement said. Haryana and Punjab had contributed 2.6 mt and 8.5 mt of rice, respectively, to the central pool in the previous year's kharif marketing season against 1.9 mt and 7.6 mt contributed in 2011-12. Other key

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contributors last year had been Andhra Pradesh (6.3 mt, including rabi procurement), Chhattisgarh (4.8 mt) and Odisha (3.5 mt).

Meanwhile, in a meeting chaired by food secretary Sudhir Kumar, the government has asked the key rice procuring states to open adequate purchase centres and deploy sufficient manpower prior to the commencement of the kharif marketing season from October. The states have also been advised to make arrangements for informing farmers about the minimum support price, procurement centres and other related information, a food ministry official said.

FCI and state government owned agencies procure grain from farmers for distribution to the targeted public distribution system and for maintaining buffer stock and strategic reserve norms. The government's rice stock with the FCI and other agencies was reported to be close to 28 mt at the start of July, which is more than double the strategic reserve and buffer stocks norms.The government had hiked the minimum support price for paddy (common) variety to R1,360 per quintal for the 2014-15 marketing season from R1,310 per quintal announced in the previous year.

First rice auction since junta took power open to all traders Petchanet Pratruangkrai The Nation August 6, 2014 1:00 am The Commerce Ministry is scheduled to open bidding for 167,000 tonnes of rice tomorrow in what will be the first auction to reduce the size of the state's stockpile since the National Council for Peace and Order took power on May 22.Unlike previous auctions, the process will be more transparent as the ministry is allowing all types of trader - exporters, domestic traders, rice packers, feed-meal producers, and millers - to take part in the bidding for a small lot of rice from 40 state warehouses.

The ministry will open the bidding letters, bargain over prices and select the winner within one day, during which all players can observe the transparency of the process, Duangporn Rodphaya, director-general of the Foreign Trade Department, said yesterday.Bidders will be required to offer their prices between 8.30am and 11am, after which their letters will be opened at 1pm. The ministry's bidding committee will then select the winning bid or negotiate for the best price, all within the same day.

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The result of the auction will then be submitted to the Rice Policy Committee for approval within a week, she added."The ministry has a working committee to work on the bidding process under a transparent method. They will set up a 'floor price' for the bidding. If bidders offer prices in accordance with the floor price, or not too low, the ministry will decide to sell the rice," said Duangporn.Many rice traders are expected to show interest in joining the bidding due to the currently high demand in the market, she said, adding that the auction should not however negatively affect the market price because it is being held outside of the harvest season. About 30 rice traders participated in the department's clarification session concerning tomorrow's auction.

They include CP Intertrade, Siam Indica, Capital Rice, Sandee Rice, and Olam (Thailand). Rice purchased at the auction can either be sold domestically or in the export market. Duangporn said the ministry would also hold other auctions and sell rice through other methods, such as allowing traders to offer to purchase rice directly from the ministry, selling through the Agricultural Futures Exchange of Thailand, and government-to-government contracts.She said the sale of stockpiled rice from government warehouses should result in an increase in rice available on the market during the current global shortage. Vietnam has had low rice production this year, while India has slowed down its rice export plan during the out-ofharvest season and because of lower stockpiles.

The Kingdom should be able to export 9 million-10 million tonnes of rice this year, said the senior official.Meanwhile, the Commerce Ministry continues to sell rice to China under a memorandum-ofunderstanding contract to sell one million tonnes to the country each year.Thailand has already shipped 100,000 tonnes of rice under this contract, and will soon negotiate to sell other 100,000 tonnes from the stockpiles, as well as a further 100,000 tonnes from the next crop due to be harvested starting in November.Moreover, the department has also negotiated the sale of rice to other countries such as Malaysia, Indonesia and the Philippines. It projects releasing about 500,000 tonnes of rice per month from government stocks, starting this month.Burin Thanatavornlap, managing director of Sandee Rice, said now was a perfect time for the authorities to sell rice from the stockpiles because of high demand in the market.

Rice prices should also be in accordance with market prices, which have increased during the past few months following the end of the last harvest season, he said.The price of new-crop white rice is currently quoted at Bt12.50 per kilogram, while jasmine rice is quoted at Bt31 and husk rice at Bt9 per kilo, he added.

DFT set to deliver more rice to China under G2G deal

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BANGKOK, 5 August 2014 (NNT) – The Department of Foreign Trade (DFT) is poised to sell another 200,000 tons of rice to China as part of the government-togovernment (G2G) contract while expecting all the stockpiled rice to be released in three years. After a meeting with China’s state-owned food conglomerate COFCO, Director-General of the DFT Duangporn Rodphaya disclosed that the company affirmed to proceed with its purchase of Thai rice under the G2G agreement inked earlier. Out of the total of 1 million tons specified in the contract, 100,000 tons of broken-milled rice is due to be delivered to the client within this month while another batch of 100,000 tons of 5 percent white rice is to be sent out in September.

Moreover, representatives of COFCO will be coming to Thailand in September to negotiate additional purchases of Thai rice. The DFT hopes to fetch good prices for the grains as the market prices are currently on the rise due to high global demands. Besides the G2G deal with China, Ms Duangporn noted that rice auctions are being held in other countries, such as Malaysia, the Philippines and Indonesia, by private entrepreneurs who are receiving support from the public sector. She voiced belief that the current rice stock of 18 million tons will be completely released to the market within the next three years.

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