6th november 2013 daily rice e newslettter (international rice news) by riceplus magazine

6th November , 2013

TOP Contents - Tailored for YOU Latest News Headlines…  More gov’t-to-gov’t rice imports feared as Davao cargo kept on hold  Vietnam. Ten-month rice export rakes in nearly 2.5 billion USD  Gov't seeking tougher penalty for substandard rice  Paddy purchase in Haryana up by 6% so far  USDA sees rice exports at record 11 mt  Finance urged to borrow more for rice-pledging scheme  Dastgir agrees to abolish rice quality review committee: Reap  Rice, Reap, Rice Basmati  Thailand signs agreement to sell 1 million tons of rice per year to China

News Detail…

More gov’t-to-gov’t rice imports feared as Davao cargo kept on hold Philippine Daily Inquirer

2:41 am | Wednesday, November 6th, 2013

DAVAO CITY, Philippines—A meeting of the highest policymaking body on food supply may yet result in more government-to-government

deals to import rice, which would mean more public funds being used for duties instead of projects for the improvement of farm yield, according to a top critic of the government’s food

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sufficiency program.The meeting of the National Food Authority (NFA) Council, considered to be the highest policy-making body on rice and food supply, comes in the wake of the withholding of several rice shipments in this port that are being checked for import permits, prompting the shipments’ importers to cry foul.The meeting would be the first for the NFA Council following allegations that a government-to-government deal to import rice from Vietnam had been overpriced by at least P400 million.Lawyer Argee Guevarra, of the militant group Sanlakas and who exposed the overpricing, said another government-to-government deal to import rice may be approved by the council. ―The council used to be convened at least once every month, or even more when there are urgent matters that require its attention,‖ Guevarra said in a statement.―Why is it being convened only now, when alleged anomalies, high rice prices and questions regarding rice supply have been raised since August this year?‖ he said.―It’s possible that they plan on using these issues to again push for their anomalous G-toG importation scheme,‖ he added.The DA’s rice sufficiency targets had been put

into question following the testimony in Congress by Assistant Agriculture Secretary Romeo Recide who said actual yield would be short by at least 500,000 metric tons of the target. ―Experts from government, the private sector and the academe all agree that public funds are better spent on agricultural infrastructure, irrigation, and post-harvest facilities,‖ Guevarra said.In April, the government spent at least P4 billion, not including duties and taxes, to import 205,700 MT of rice from Vietnam.The NFA Council is chaired by the agriculture secretary while the NFA administrator sits as vice chair. It counts among its members representatives of farmers, Office of the President, Department of Finance, Department of Trade and Industry, Bangko Sentral ng Pilipinas, Development Bank of the Philippines, Land Bank of the Philippines and Philippine National Bank.One of its mandates is to determine the amount of rice to be imported in a given year, based on the recommendations of the Department of Agriculture.Filemon Cangrejo, manager of the NFA in Davao, said Presidential Decree No. 4 required the NFA to demand import permits for rice

shipments.At least 107 container vans of rice are on hold at the customs area here for lacking import permits. With a report from Germelina Lacorte, Inquirer Mindanao

Vietnam. Ten-month rice export rakes in nearly 2.5 billion USD 06.11.2013

Vietnam exported over 5.7 million tonnes of rice for nearly 2.5 billion USD in the first ten months of this year, according to the Vietnam Food Association (VFA).The export volume included more than 537,000 tonnes shipped in October, about 10,500 tonnes higher than total shipments in the previous month.However, the price of rice exported last month dropped to 435.37 USD per tonne from 437.63 USD recorded in September.Africa is emerging as a market with great potential for Vietnamese rice exports, according to the VFA. In the first nine months of the year, African countries imported over 4.79 million tonnes of rice worth 2.05 billion USD from Vietnam , making the continent the largest

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importer of Vietnamese rice during the period.

It is followed by Asia , the Middle East , the US and the EU.Vietnam has lowered bar for its rice export for 2013 to between 7-7.2 million tonnes from the targeted 7.5 million tonnes and is striving to open new markets.As domestic businesses currently meet difficulties in exporting to traditional markets, promoting exports to new markets such as Africa and Mexico is considered an important solution.

Gov't seeking tougher penalty for substandard rice 2013/11/06 18:18:11

Taipei, Nov. 6 (CNA) The Council of Agriculture said Wednesday it has proposed an amendment to increase penalties for selling substandard or adulterated rice and hold violaters accountable.If passed by the Legislature, the

alone,

he

said.

amendment will forbid suppliers from blending domestically grown rice with imports and will require a system to trace transactions of imported rice, according to Chen Chien-pin, deputy directorgeneral of the Agriculture and Food Agency.

failing to supervise foods on the market, including rice, seafood, produce and organic products.Deputy Agriculture Minister Hu Hsing-hua offered figures to counter the concerns, saying the council has inspected 875 products against their labels this

The maximum fine for violating the amended rules will be raised from NT$200,000 (US$6,000) to NT$3 million, Chen said.The government typically identifies and issues fines for 20-30 packaged rice product

year, finding problems with 8 percent of samples. The council also found 7 percent of another 813 products checked for quality did not pass inspection.The council has stepped up its checks to ensure that violations do not continue, Hu

violations each year, but 31 have been seen in the first nine months of this year

said.Meanwhile, the council tests an annual average of 370,000 vegetable and fruit

Chen's remarks address concerns raised by Hsu Chung-hsin, a lawmaker from the opposition Taiwan Solidarity Union, who criticized the agriculture council for apparently

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samples for pesticide residue and employs 549 licensed inspectors for poultry and livestock for sale at markets, he said.(By Wen Kuai-hsiang and Y.F. Low) ENDITEM/WH

Paddy purchase in Haryana up by 6% so far

By PTI | 6 Nov, 2013, 08.12PM IST

CHANDIGARH: Paddy procurement in Haryana has risen by 6 per cent to 41.83 lakh tonnes (LT) in the ongoing procurement season so far. Last season, 39.40 LT of the crop arrived in the corresponding period. The government agencies purchased 34.28 LT of paddy, whereas over 7.55 LT of paddy have been purchased by millers, a Food and Supplies Department spokesman said. He said that Food and Supplies Department has purchased 14.30 LT of paddy, Hafed 9.56 LT, Agro Industries Corporation 5.52 LT, Haryana

Warehousing Corporation 3.26 LT, Confed 1.5 LT and Food Corporation of India had purchased 11,380 tonnes.

USDA sees rice exports at record 11 mt Press Trust of India | New Delhi | Updated: Nov 06 2013, 03:35 IST SUMMARYIndia's rice exports are estimated at a record 11 million tonne (mt) in the 2012-13India's rice exports are estimated at a record 11 million tonne (mt) in the 201213 marketing year (MY) ended September on bumper production and strong overseas demand, according to the US department of agriculture (USDA).Rice exports of India, the world's second largest rice producer, stood at 10.38 mt in 2011-12 MY that runs from October to September."MY 2012-13 export estimate is raised to a record 11 mt based on preliminary official statistics for October 2012 to August 2013, and shipping data compiled by a private source for

September 2013,‖ USDA said in a report.The USDA has also revised upwards the rice export estimates for MY 2013-14 to 10 mt from the earlier projection of 9.3 mt. However, exports are still expected to be lower than the record 11 mt in the previous year.―Based on the relatively strong export demand for Indian rice, both basmati and nonbasmati, and sufficient domestic supplies, the MY 2013-14 rice export estimate is raised to 10 mt," the report said. ―While exports of basmati rice are likely to grow further, total exports are likely to be lower than last year's record sales due to relatively tight domestic supplies of non-basmati rice and food price inflation concerns in an election year,‖ it added.Quoting market sources, the department said exports of non-basmati rice have slowed down from in October 2013 due to the strengthening of the rupee compared to the dollar (current 61.5 from 65 in August/September).India had lifted the four-year ban on nonbasmati exports in September 2011. It had emerged as the

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world's largest rice exporter in 2012 ahead of its Asian counterpart Thailand.On production, the USDA has projected an output of 105 mt in 2013-14 as against 104.4 mt in the previous year.

The department ―continues to estimate MY 2013-14 rice production at 105 mt from 43.5 million hectare‖.The harvest of kharif rice is in full swing in northern states and initial harvest reports suggest good yields.―Crop damage was reported due to Cyclone Phailin in coastal Orissa and Andhra Pradesh, and ongoing floods due to heavy rains in some parts of Orissa, West Bengal and Andhra Pradesh. .

Finance urged to borrow more for ricepledging scheme The Nation November 6, 2013 2:58 pm

Deputy Prime Minister and Commerce Minister Niwatthumrong Boonsongpaisan on November 7 will propose the Finance Ministry to seek an emergency short-term loan worth Bt140 billion, to finance the ricepledging scheme.Bank for Agriculture and Agricultural Cooperatives President Luck Wajananawat said that the request would be raised at the National Rice Policy Committee’s meeting.Luck said that the loan would be used to cover the rice pledging during the 2013-2014 harvest season.

If this proposal is approved, the Cabinet will need to revise the October 3, 2012 resolution that sets limit on revolving funds for the scheme at Bt500 billion. ccording to Luck, the BAAC which is the key state-owned institution in charge of the pledging had advanced Bt680 billion, since the scheme was kicked off in 2011. However, the Commerce Ministry has sold rice in stockpiles for only Bt140 billion, which lowered the outstanding amount to Bt540 billion. For now, there is no liquidity to finance the pledging in the new season, though over 1.2 million tonnes have been harvested. With the approval from the National Rice Policy

Committee, the BAAC board of directors will convene on November 8 to approve the advance payments for the scheme.

This will later be replaced by the Finance Ministry’s loan.

Dastgir agrees to abolish rice quality review committee: Reap Zaraimedia Team November 6th, 2013 News November 06, 2013

Minister of Commerce Privatisation

State

for and Engineer

Khurram Dastgir Khan has agreed with Rice Exporters Association of Pakistan (Reap) proposal for abolishing Quality Review Committee (QRC) inspection procedure and giving free hand to the association members to inspect the consignments.

However, he urged the

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Reap members to ensure quality of rice according to the specifications of the demand.The Minister further announced and assured for the establishment of Rice Technical Training Centre and for this purpose the financial assistance would be provided by the government from Export Development Fund (EDF).

He assured the house, for the issues raised by the Reap representatives would soon be resolved for betterment of the rice export sector in particular and for the industry in general.

Earlier, Rice Exporters Association of Pakistan (Reap) Chairman Chaudhry Masood Iqbal highlighted various concerns of rice exporters on Quality Review Committee. He said that under the control of TDAP, QRC has become highly conflicting and controversial organisation resulting in discouraging exports of Basmati Rice. It because incapable and controversial organisation that may

result in introducing evil practices through blackmailing tactics at the name of quality. As all the quality control mechanism was based on physical inspection, despite availability of modern techniques, that may also lead to misleading and failure of shipments that resulting mutual disputes between Reap members & QRC. 'Unfortunately, QRC that was formed to review quality in order to facilitate the exporters of Quality Basmati Rice has transformed into a sheer ruthless inspection body where there is no concept of facilitation,' Chaudhry Masood observed. He also pointed out to minister that the Chairman QRC (ie DG TDAP Lahore) has no intent to improve the infrastructure rather some TDAP staff is foreseeing it as a golden opportunity to gain power for their own vested interests and in turn subside the efforts taken by government to promote export. Despite, multiple reminders to TDAP

officials regarding Declining Exports of Basmati Rice during QRC meeting, the TDAP focused on revenues earned

by QRC and has not initiated any measures to revive the declining exports.

The argument is validated by the exports figures of Basmati Rice that has declined over 50 per cent since TDAP has taken charge of QRC. Chairman Reap also highlighted that QRC is a non-accredited agency and, therefore international buyers do not value QRC Certificates, neither have ever demanded nor have trusted such certificates, which are based on total physical characteristic despite availability of latest techniques to ascertain quality. In the presence of foreign accredited Third Party Inspection Agencies like Cotechna, SGS, Intertech, Eurofins, BVAC etc whose certificates are acceptable by foreign buyers, the existence of QRC is illogical and impractical.

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Masood Iqbal also threw light on demands including setting up of a rice technical training, research institute, nomination of reap as member export development fund board, enactment of GI laws and arranging currency swap agreement with Iranian government to boost rice trade with Iran, which is considered as a rice eaters nation. Courtesy Business Recorder Rice, Reap, Rice Basmati

Thailand signs agreement to sell 1 million tons of rice per year to China

BANGKOK, 6 November 2013 (NNT) – Thailand has reached agreement with the Chinese government to sell 1 million tons of rice per year to the latter, with delivery for the first year of sales to commence in December. According to Commerce Minister Niwatthamrong Bunsongphaisan, the two countries have signed agreements to collaboratively undertake studies on the development of the BangkokNakhon Ratchasima-Nong Khai rail line in exchange for Thai agricultural produce. Under the deal, 50% of the costs of the high-speed rail line will be paid to China in the form of farm produce, and the remaining 50% will be in cash. The

agricultural produce will be based on the global reference prices. However, he said this agreement was by no means a construction contract.

The Cabinet on Tuesday approved the draft of the agreement to sell 1 million tons of rice to China each year, based on the price in the global market. Deliveries for the 1st year will take place over 3 phases: between December 2013 and April 2014, between May 2014 and October 2014 and between November 2014 and December 2014. 500,000 tons of rice will be shipped during the first phase, 300,000 tons during the second phase, and the remaining 200,000 tons in the third phase.

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