Fortnightly top international & local rice news ( 1st january 12 january,2013) ricepluss magazine(ww

Fortnightly RICE News Updates 1 Jan-13 Jan, 2013 Quarterly Riceplus Magazine (www.ricepluss.com)

Rice Plus Magazine Team

Chief Editor: New Managing Editor: ddfdaewww

About daily Rice plus’s E-News Letter

Hamlik RahmatUllah RozeenShaukat

Marketing Manager Mujahid Ali Graphic Designer: Zakaria Mujahid

Ricepluss Magazines‘ s daily e-newsletter have been designed to keep you & your business/organization up-to-date with the latest global & regional rice industry news & information. Updates include market trends, R&D news, business developments and invitations to events and webinars.

Magazine is highly & widely circulated to national & international on daily basis to:  Rice industry   

www.ricepluss.com

Rice Exporters/Importers Farming Communities Agriculture Commodities Traders/Whole sellers/Distributes/commission agents  Academia /R&D /Research Institutes/Agri Scientists  Government Official & decision makers  Agro based industry &Fertilizer Industry And allied areas in thousands… and still growing number of daily readers.

1

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

Indus_pak@hotmail.com

Cell: 0300 414 3493

2

Top WEEKLY International & National RICE NEWS tailored for YOU 1 January, 2013 California rice meetings Jan. 8 in Yuba City, Colusa    

The California Rice Commission will conduct its annual grower meetings Jan. 8.

The morning meeting begins at 9 a.m. at the Bonanza Inn Magnuson Grand Hotel in Yuba City.

The afternoon meeting is at 1 p.m. at the Colusa Casino Resort Conference Center in Colusa.

Speakers include: George Soares of the law firm Kahn, Soares, and Conway; Randy Russell of The Russell Group; and CRC leaders.

The latest news on issues impacting California rice farmers will be discussed during upcoming annual grower meetings Jan. 8 in Yuba City and Colusa, conducted by the California Rice Commission (CRC).

Attendees will receive an update on the news important to the rice industry at the State Capitol by George Soares, founding member and partner of the law firm Kahn, Soares, and Conway.Randy Russell, partner, The Russell Group, will detail the latest developments in Washington, D.C. The CRC will outline its activities in the regulatory, conservation, and public education arenas.The morning session begins at 9 a.m. at the Bonanza Inn Magnuson Grand Hotel in Yuba City.The afternoon meeting will be held at 1 p.m. at the Colusa Casino Resort Conference Center in Colusa.Registration will be held 30 minutes prior to each meeting. Members of the rice industry are encouraged to attend.Refreshments will be served.

Raffle prizes will be available at each meeting.

Taiwan's rice consumption falls amid weight loss trend 2013/01/02 14:28:09

Taipei, Jan. 2 (CNA) Rice consumption in Taiwan has fallen 50 percent in the past three decades amid the perception that consuming less rice can help people lose weight, according to the Agriculture and Food Agency.

Taiwan's annual per capita rice consumption was only 45 kilograms in 2011, compared with 98 kg recorded in 1981, the agency said in a recent statement.The agency attributed the drop to a trend toward reducing rice consumption to lower starch intake.Even with the decline in rice consumption, however, the prevalence of obesity in Taiwan has risen in recent years because of increasingly popular Western diets, the agency said.Western diets are often high in oil and sugar, which are factors that can lead to obesity, said Su Tsungchen, director of the agency's Food Industry Division.

3

Forsaking rice for the wheat and flours favored in Western cuisine may be ill-advised because rice is richer in nutrients than flour-based staples and more natural because it is less processed, Su told CNA.It also does not make sense for dieters to avoid starch intake in favor of consuming more meat, said Lin Wen-yuan, a doctor at the Obesity Prevention and Sport Center under Taichung-based China Medical University Hospital.

Although dieters can lose weight quickly, it is easy for them to regain weight once they return to a normal diet, Lin said.To correct people's misperception that rice consumption is associated with higher chances of obesity, the agency and the hospital jointly held a news conference in late December to promote low-calorie rice meals.

The meals, which are low in fat and salt and high in fiber, can help people lose weight in a more efficient way, the agency said.Rice has been long seen as the staple food in many Asian countries, such as China, Japan, South Korea and Taiwan, and Taiwan produces rice of good quality, the agency said.

(By Joanne Hsu and Elaine Hou)

Asia rice trading lull after holidays Reuters,Posted at 01/02/2013 7:03 PM | Updated as of 01/02/2013 7:03 PM HANOI, Vietnam - Asian rice trading is yet to pick up this week with market participants just trickling back after year-end holidays, while buying demand could emerge next month when a major crop harvest begins in Vietnam, traders said on Wednesday."It's quite a sluggish market today because it's the first day that we are back after New Year holiday and many rice mills are still away," a trader in Bangkok said.The benchmark 100 percent B grade Thai white rice declined to $570 per ton, from last week's range of $570-$580. The 5-percent broken grade white rice advanced to $570 a ton this week from $560 last week.Buyers have also been absent in Vietnam, where loading for small deals to the Philippines and China were under way, traders said."Several private firms were buying for the Philippines but their purchase, plus loading to China, did not leave any impact on the market," a trader in Ho Chi Minh City said.Demand has yet to emerge from Africa, one of the key buyers of Vietnamese rice after Asia, he said.

Vietnam's 5 percent broken rice stood unchanged at $415-$420 a ton, free-on-board (FOB) basis, while the 25percent broken grain edged up to $390-$395 a ton, from $370-$375 a week ago."Prices of the 25 percent broken grain rose because of low supply of low-grade rice to process this variety, while there is no actual demand," the Ho Chi Minh City-based trader said.

Last week Vietnam introduced a floor of $370 a ton for low-quality 35-percent broken rice for export.

Traders said the floor price has been imposed to prevent an expected fall in prices when Mekong Delta farmers begin harvesting the winter-spring crop from late next month.The crop is Vietnam's biggest among its three rice crops grown each year in the Delta, the food basket.Trading is expected to pick up from next week or later this month as companies assess the winter-spring crop production in the Mekong Delta, traders said.Final data of Vietnam's rice export were not immediately available, while the government's statistics agency has estimated the annual shipment to reach an all-time high of 8.05 million tons.

Bicol upland farming to boost nat‘l rice production

By Sally A. Atento,Wednesday 2nd of January 2013

4

LEGAZPI CITY, Jan. 2 (PIA) -- The Department of Agriculture (DA) has targeted P6 million organic rice upland farming project in the Bicol Region to boost its contribution to national rice production. Dr. Jose V. Dayao, DA 5

regional director, said that the project will capitalize on drought-tolerant rice varieties and will be initially implemented in the river basin towns of Baao and Nabua in Camarines Sur. Bicol‘s upland rice varieties have the potential for higher grain production and tolerance to drought needed to survive the prevailing climate change threats. ―Our development of upland rice is very timely as these varieties have the potential to withstand higher temperature and fewer water supplies which is what we really need amid the threatening climate change,‖ said DA Bureau of Agricultural Research (DA-BAR) director Nicomedes P. Eleazar.

Eleazar added that upland rice varies in the region has higher market potential than traditional upland rice strains since it can exceed the general average yield of one to two metric tons (MT) per hectare. A comparative study conducted by the Bicolandia Greenfields Development Organization Inc (Bigfis), one of the project partners, also shows that some of Bicol‘s upland rice varieties have the advantage over DA‘s check varieties.―Some upland rice cultivars in Bicol such as Palawan, Gayang-gang white, Kinarabao, and Magdami were found to have higher grain yield than PSB Rc9 variety,‖ Bigfis reported.

In the 1960s, an upland area of 63,699 hectares in the region were used for complete rice production according to the International Rice Research Institute. However based on DA report, the coverage area dropped to 3,281 hectares in 2008 due to unpredictable weather conditions in the region and a shift in the planting of other crops such as corn and legumes. Moreover through a proper climate change program such as this project, Eleazar noted that the said upland areas can be revived for rice production in the region which formerly contributed 20 percent of the total rice output in the country. (MAL/SAA-PIA5, Albay)

Raising rice not just for a year

By Richard Kinnud,Ubbog

Thursday, January 3, 2013 THE beginning of the year is the rice planting season in my hometown of Mompolia and several other homesteads in the rice terraces-famed province of Ifugao. (Yep! Neigbouring villages don‘t plant all at the same time. The reason is for folks from one village to help in the work of another village and vice versa.) This period is called ahiboge in the local language. It involves uprooting of rice seedlings and transplanting them. For most folks in the village, ahiboge was just an ordinary part of the agricultural cycle, something that has to be done in order to provide rice for the family even if they fully know that the produce does not really last for a year.

Largely, a household tends a field or parcels of fields that could make a yield just enough for four months for a typical family. Harvest season is around the second week of May and by June the harvested palay is dry enough ready for consumption. By October, many are making trips to the town market to buy hinalub (commercial rice). Many find this as unrewarding leading to conversion of rice fields to other uses.

Traditionally, Ifugao heirloom rice is referred to as Tinawon. Tinawon literally means yearly or annual which to some is the reason why the rice is named as such as it takes almost a year to produce the grains. Farm activities to commence another agricultural year are done two months after the harvest or around August. In farms still filled with water, the work includes cutting the dead rice stalks that have not yet decayed, ratoons and weeds that have grown and thrusting them into the mud. (Yep! The native variety of rice requires water in all its growing and yielding period thus farmers prefer that the fields are abundant with water all throughout the agricultural cycle. Also, water ensures that fishes and edible snails abound in the farms for household consumption.) The act of clearing a watered field from stalks and weeds is called lamun thus the season is termed ahilamun. In farms that had dried up or lacks water, aside from weeding, the work includes turning the soil with the the aladu (plow with the help of a carabao) or plainly manual with a spade (this act is called hu‘le), and irrigating the farm.

5

At around the last week of September to around middle of November, work in the farm would include fixing stonewalls (tuping),thickening of the banong or dikes (this sub-period is called ahibanong), and levelling of the pond field (called awi when manually done using a spade or kawal when using an equipment drawn by a carabao). This period is collectively called as ahigawud since the works are mostly accomplished with a spade (gawud). (By the way, the gawud of the Ifugao rice farmer has an almost rectangular blade with a D-shaped tip attached to a wooden handle with a length of around the height of the user.) The preparation of the seedbed follows and by end of November, farmers are ready for the ahihopnak (placing the rice panicles into the seedbed.) When the seedlings grow to around a foot, the ahiboge beacons. After the planting season, villagers take a short rest until tasks of agoo (cleaning out weeds in between rice plants) and hagaphap (cutting weeds around the vicinity of the field) plunge them back to action.

The tasks continue with driving away rats, curing other pest infestation, and abul (driving away buding or the maya) until the ahibotok (harvest season) comes. The tasks are laborious, but as villagers do them all year round they are subconsciously saving their inheritance.In another point view, tinawon is not the name of the rice variety but rather the equivalent for the term ―indigenous‖ when referring to rice. In my hometown of Mompolia, the varieties that are classified as tinawon are the Ingguhad, Imbangul, Binuggon, and Donaal all having distinct texture, color, and taste when cooked. When Minanga, a red variety which thrives well even in a low level of water in the pond field as compared to other varieties, was introduced in the village, it was classified as ilik (foreign variety) even if it called tinawon in the homesteads of Hungduan, Ifugao where it originated. Tinawon, therefore, is a mark of uniqueness, evidently nurtured by generations and shared whenever possible.

Ifugao folklore has it that rice in this mortal world was once exclusive to the gods in the skyworld.

Rice was known to mortals when two hunters followed their hunting dog which in turn was chasing a wild pig that strayed into the skyworld. The hunters observed that the gods were eating the rice raw and when they introduced fire to cook the rice, the gods were more enamoured by the aroma. It lead to the trade of some grains for planting with the two pieces of the banting (special kind of stone that produces fire.) As it is a godly thing, the need for the many rituals associated with the agricultural cycle from ahilamun to ahibotok and even after which has been practiced in olden times is logical. The rituals however where no longer practiced due to today‘s Christian faith widespread even in the most remote of villages. The non-practice though does change the fact that the heirloom rice needs nurturing and sharing. After all, todays Christianity teaches that everything is from God to which man is a steward.

In today‘s profit-seeking world, where lands should be maximized to its potential, where production is understood to be more efficient when done in the shortest time possible, I wonder how long the tinawon can truly be alive in the rice fields. Is there still a space for conscious realization that raising the heirloom rice is not just doing the tasks in a year to provide for the year but planting seedlings to nurture a culture that is God‘s gift to an ancestry? The planting season falling on the beginning of a new year might be purely coincidence, but it is a good metaphor of a people giving new life to their heirloom rice varieties.

14:14 January 02, 2013

Viet Nam Hits Record Export Rice Volume in 2012 Viet Nam‘s export rice volume in December 2012 reached about 630,000 tonnes, raising the figure for the whole of 2012 to 8.1 million tonnes, up 13.9 per cent against 2011, according to the Ministry of Agriculture and Rural Development.The year‘s volume brought Viet Nam a total value of USD3.7 billion, a 2.1 per cent rise

6

from the previous year.This is considered a big success for Viet Nam‘s rice sector after a year full of changes in the financial situation and rising agricultural material costs, according to Vietnamese communist party sources.

In 2012, with a 6.4 fold increase in volume and a 5.4 fold rise in value, China became the largest rice importer from Viet Nam.Meanwhile, traditional markets such as Africa, Indonesia, Singapore, Senegal, and the Philippines witnessed reduction in both import volume and value.In 2013, the Viet Nam rice export sector is forecast to face difficulties, as some markets are showing signs of reducing import volumes.

Rice scheme may be storing up trouble 

Published: 2/01/2013 at 12:00 AM,Newspaper section: Business The government's plan to continue the rice pledging scheme for another year is good news for farmers, but the issue worries economists.Farmers will obtain the same prices for the first round _ 15,000 and 20,000 baht per tonne _ when pledging white rice and fragrant Hom Mali rice to millers that have joined the scheme.Critics say big losses from the rice scheme could cause public debt to rise sharply in 2013 to as much as 50% of gross domestic product (GDP) from 40.22% posted as of Sept 30, the end of the fiscal year.In the first year of the scheme, the Finance Ministry reported that about 350 billion baht was used to pledge 18 million tonnes of paddy.Of the money, 260 billion baht was state-guaranteed loans, while 90 billion baht was the cash flow of the Bank for Agriculture and Agricultural Cooperatives (BAAC), which charges 3% interest.For the 2012-13 crop, 405 billion baht is planned to finance 25 million tonnes of paddy. The figure could rise because production is estimated at 37 million tonnes.

The cabinet approved only 150 billion baht as state-guaranteed loans and instructed the Commerce Ministry to speed up repayments to the BAAC to save interest expenses and allow the bank to have enough cash flow to continue this year's pledging process.The ministry was only able to repay 72 billion baht to the BAAC from the 85 billion due this year.The failure stemmed from the ministry's poor performance in selling rice to domestic and foreign markets.As it paid farmers 40-50% above market prices, rice exports faced strong competition from much cheaper rice from India, Vietnam and Pakistan.

World Bank senior economist Kirida Bhaopichitr estimates the state may shoulder losses as high as 100 billion baht from rice sales each year, resulting in higher public debt.At the current pace, public debt could reach 50% of GDP, but the former governor of the Bank of Thailand, MR Pridiyathorn Devakula, warned the level could rise to 61% by 2019.Apart from a possible financial crisis, the scheme also has implications for storing rice. The government may build enough silos to keep as much as 4 million tonnes of rice for 7-8 years, longer than the current 2-3 years.The move could indicate that the government expects to last for a few years.

Populist schemes boost consumption, but their cost on society questioned WICHIT CHAITRONG,THE NATION January 2, 2013 1:00 am

Populist policies have contributed to domestic consumption but have been sharply criticised by some economists for resulting in waste of |taxpayers' money and rising public debt. The continuing rice-pledging scheme, rise in the minimum wage and cuts in personal income tax are expected to shore up consumption this year.

7

As the global economy remains fragile largely because of the slowdowns in the European Union, the United States and Japan, domestic demand contributed to Thailand's economic recovery in 2012. Research houses have estimated growth in gross domestic product at 4-5 per cent in 2012 and 2013."Private consumption is esti-mated to have expanded by 5.2 |per cent year on year in 2012, the highest in eight years," Somchai Sujjapongse, director-general of |the Fiscal Policy Office, said recently.

The question is whether high |consumption will continue as populist policies have cost taxpayers a lot.

The government's tax rebate for first-car buyers and the rice-pledging scheme have been viewed by critics as blunders.

The government is stupid for implementing the rice-pledging scheme," outspoken economist Ammar Siamwalla said.The first-car scheme is expected to result in about Bt90 billion of forgone revenue, an amount critics say should have been used to finance mass transit instead. The latest measure is a personal-income-tax cut announced by the government in December.But of the government's various stimulus programmes, the paddypledging scheme is the costliest, according to a World Bank report released last month.The predicted cost of the scheme is Bt376 billion for the 2011-12 harvest season, with losses estimated at Bt115 billion. The cost for the current harvest season is projected to be Bt432 billion, with losses estimated at Bt132 billion, Kirida Bhaopichitr, lead author of the report, told a recent news conference.

That is the best-case scenario, in which we assume that the government is able to sell all of its rice stocks," she said.The combined losses for the two harvest seasons are equivalent to 1 per cent of GDP, she added.

The costs cover the cost of pledging, milling, storage and administrative fees, but do not include spoilage and Bank for Agriculture and Agricultural Cooperatives interest.Meanwhile, the price of Thailand's 5-per-cent broken-rice variety in the global market is expected to fall from the current US$550 per tonne to $520 next year, according to Kirida.

Historically, the government cannot negotiate to sell rice at higher than the market price, said Mathew Verghis, lead economist of the World Bank's office in Bangkok."The projection at the moment is that rice prices are not going to rise in the near future, although if there were a change such as a major drought in other rice-exporting nations, that could happen. But the other way to minimise the losses is to increase rice exports by simply selling at world prices to the market," he said.The World Bank also urged the government to review all of its populist policies aimed at stimulating economic growth. The current set of stimulus programmes amounted to 5.4 per cent of GDP in 2012, and an estimated 2.46 per cent in 2013.

The measures include the first-car programme, tax exemptions for first-house buyers, the minimum-wage increase and a cut in corporate income tax.Spending helped stimulate the domestic economy last year while the global economy was weakening, but this added to public debt, which will have increased from 45 per cent of GDP at the end of 2012 to almost 50 per cent in 2013, said the bank."Public debt is still sustainable, but staterun banks are shouldering some of the costs, weakening their balance sheets and resulting in contingent liabilities for the government," Kirida warned.Some of these funds could be redirected to social programmes to help the poor and vulnerable, the bank suggested.

8

Spending on the rice-pledging scheme could be redirected to improving rice productivity and quality, and targeting low-income farmers, said the World Bank.The average rice yield in Thailand is only 2,877 tonnes per hectare, which is the lowest among rice-producing countries. Vietnam and Myanmar achieve much higher yields at 4,834 tonnes and 3,757 tonnes respectively, according to Food and Agriculture Organisation figures.

Meanwhile Somchai said he did not foresee new populist scheme in 2013. "The minimum wage increase, tax cut and rice pledging scheme will continue to boost domestic consumption."

Standing his ground An architect behind the rice pledging scheme defends the programme, insisting losses should be on a par with what the previous government spent, writes Parista Yuthamanop 

Published: 2/01/2013 at 11:57 PM The Pheu Thai Party-led government's rice pledging scheme has faced a barrage of criticism among pundits, who have come up with several versions of calculated losses that will later become public debt.Rice pledging can be abolished when it is no longer needed and when farmers get the prices they deserve, says Mr Olarn. (Photo by Chanat Katanyu) Other concerns include negative effects on sustainable aids to farmers, oversupply, eroding competitiveness of Thai rice exports, smuggling to take advantage of the scheme and corruption in sales.

Some have drawn a comparison with the rice price guarantee of the previous Democrat-led government, which seemed to have the advantage of not having to handle massive rice stockpiles and market interference.

But Olarn Chaipravat, an economist and architect of the rice pledging policy, maintains that the pledging programme can serve as a long-lasting farm price-support tool that increases income for farmers.In an interview with the Bangkok Post, he said the government has prepared to sell the rice in big lots this year, which will help repaid short-term loans to finance the scheme."The government would be able to sell more than 2.5 million tonnes of medium-grade 100% and 5% white rice in 2012/13, compared to just 1.4 million tonnes in 2011/12," he said.

The amount would be sold at world market price of about US$600 per tonne quoted by US rice exporters in government-to-government (G2G) deals, compared to $450 quoted by other countries such as Vietnam, said Mr Olarn, who is also chairman of the Thai Trade Representative Office.The deals, if they go through, would vindicate the government from accusations that its G2G rice deals are fabricated."We expect import orders for 100% and 5% white rice from new customers in Asia to rise to more than one million tonnes in 2013 from less than 100,000 tonnes in 2012. We have secured the orders. There are more orders coming for Hom Mali as well as 100% and 5% white rice in 2013," Mr Olarn said.

Total rice shipments increased 22% year-on-year to about 665,000 tonnes a month from October to November 2012.If the trend continues, Thailand would be able to export 8.5 million tonnes from October 2012 to September 2013 compared to 6.7 million tonnes in 2011/12, a 21% year-on-year increase.

"The

8.5-million-tonne export volume is close to 8 million tonnes estimated by the US Department of Agriculture in December 2012," he said.

9

While the pledging paddy price at 40% above the previous year level could result in losses, the extent of such losses would depend on many variables including the world price of milled rice and the carrying stocking costs in 2013," Mr Olarn said.

The country's rice policy should aim at increasing the supply of higher-quality rice such as Thai Hom Mali premium to serve the changing tastes of more affluent consumers in China and other Asian countries. Their incomes have risen in line with a shift of economic driver to domestic demand from exports.

While Thailand has yet to produce enough Thai Hom Mali rice, prospective buyers might opt for good-quality 100% and 5% white rice.

Of 30 million tonnes of paddy produced by Thai farmers each year, six million tonnes are Thai Hom Mali rice which Thailand, as the world's largest producer, sets the sustainable and long-term price of $1,100 per tonne.

Another 6 million tonnes the country's paddy production are of glutinous variety typically consumed by the Japanese, Thais, and Laotians. When converted into milled product, the glutinous rice normally fetches a market price of about $800 a tonne. The remaining 18 million tonnes of paddy yield medium-quality products such as 100% and 5% white rice, low-quality broken white rice of 25-30% and extremely low-quality rice used as animal feeds.

"Thai Hom Mali is definitely not an issue in calculating losses from the pledging scheme. We might continue to keep medium-quality white rice until the price meets our target," Mr Olarn said. "He said the decline in Thai rice exports in 2012 did not stem from pledging policy which pushed up Thai rice in the world market by about 5 to 10% compared to the previous year, but from diminished demand from Bangladesh, the Philippines and Indonesia as their weather returned to normal.In 2011/12, India decided to offload its surplus of low-quality white rice by abolishing the 10-year export ban on non-Basmati rice. Its exports of Basmati and low-quality white rice increased to about 10.5 million tonnes in 2011/12 compared to just 2.8 million tonnes of Basmati rice exports in 2010/11."The Pheu Thai government is in no hurry to dump quality Thai rice to the world market at a fire-sale price of US$450 per tonne. Our medium-quality white rice can command the world price at US$600 per tonne, slightly below US$620 per tonne commanded by US exporters for the white rice of the same quality," Mr Olarn said.

He also said the pledged price of Hom Mali paddy at 20,000 baht per tonne was formulated on the basis that the milled rice is sold at US$1,100 a tonne.The prices of glutinous paddy (16,000 baht a tonne) and white-rice paddy (15,000 baht a tonne) were based on the same basis as the benchmark price of the Thai Hom Mali paddy.

"How could we possibly allow farmers in the Central Plains and the South who grow white-rice paddy enjoy less premium on their crops than farmers in the North and Northeast who grow Thai Hom Mali and glutinous rice paddy?" Dr Olarn said."The losses from our pledging programme could turn out to be close to the budget spent under the price guarantee programme by the previous government, which totalled 70-80 billion baht," Mr Olarn said."This also depends on the government's ability to solicit sales at the target prices. But losses of more than 100 billion baht estimated by some agencies should not be the case as the figure was calculated based on the current mark-to-market prices and the assumption of a single price for all types of stocked rice."

Mr Olarn said the government's programme would also serve its regional food security plans. The government is preparing to build large temperature-controlled warehouses that can store rice for two years with minimal quality deterioration.

"If we don't want to sell our stocks, we can keep them as food security for the region. Some of our neighbours may face volatile weather patterns more frequently in the future," he said.Mr Olarn said the rice pledging policy should benefit exporters who are keen to market quality rice."The objective of the policy is to allow farmers to receive the income they deserve. The rice pledging policy wants exporters to adjust," he said.Exporters who are

10

keen to find markets for good-quality rice have prospered while those suffering from the pledging policy rely on selling cheap rice, he added.

Mr Olarn said the government also considered offering loans to farmers for fertilisers and pesticides as part of its policy. The government should play a role in interfering the market to support crop prices when they are too low, and manage them when they go too high."Critics should offer us recommendations on how to improve the programme instead of calling on us to scrap it. The Democrat Party has called on us to support palm oil prices," he said."The rice pledging policy can be abolished when it is no longer needed and when farmers get the prices they deserve from the market."

Low rice prices put farmers in tight spot A low price of rice has brought comfort to many, but not to Abdul Hai, a small farmer in Pabna.Rather, the reduced prices have blotted out much of his happiness he earned by growing the staple food.In February last year, Hai was worried over an erosion of his purchasing capacity amid the falling prices of paddy. His anxieties deepened in the later parts of the year due to a higher yield in the following harvesting seasons.And the prices of rice continued to remain lower than those in the previous year."Progress stalled. All the money I got from selling rice and other crops were spent on household needs. Nothing remains left to save," said Hai, on December 20, reviewing how the year 2012 had been for him.He is not alone.

All the rice growers bore the brunt of reduced prices due to the higher yield since the harvest of aman in 2011.

Higher stocks at public warehouses and the government's sale of rice at subsidised rates also added to their woes. Record production, a slump in import bills Rice output rose nearly 1 percent to record 3.38 crore tonnes in fiscal 2011-12 from 3.37 crore tonnes the previous year.The rise in production made the country almost selfsufficient in food and that was possible mainly due to farmers' hard work, favourable weather and the government's support by means of subsidised fertiliser and quality seeds.At the same time, food grains' import bills also fell by $1 billion to $925 million during 2011-12 from the previous year, according to LC (letters of credit) settlement data by Bangladesh Bank.

Production during the first two crop seasons of aus and aman is also expected to be good in the current fiscal year, 2012-13.

Food and Agriculture Organisation in a recent forecast said production of aman, the second biggest crop after boro, may be 1.3 crore tonnes this year, up from 1.28 crore tonnes a year ago.

Low impact of government purchase The increased output prospect has kept the prices of rice down till date.On December 22, the prices of rice, depending on quality and variety, were up to 12.77 percent lower than the same day a year ago in the markets of Dhaka, according to Trading Corporation of Bangladesh.The low prices continue at a time when farmers have to spend higher on irrigation and tilling due to a hike in electricity and diesel prices. Labour costs also went up.

"Rice does not bring me any profit," said Azhar Ali, a grower in Kushtia district who owns more than three acres of land.

To protect farmers from losses, the food ministry bought rice from the domestic market, mainly from millers.

On the other hand, it also kept distributing rice through various safety net schemes, including the Open Market Sale.The result: no impact on the prices.For the current aman season, the government plans to buy three lakh tonnes of rice at Tk 26 a kilogram from millers, down from Tk 28 the previous year.The government, however, backtracked on its previous plan to allow rice export to avoid consumers' backlash in the run-up to the next national election.

11

The government's purchase is yet to start."We are contracting with millers. That's why, impact on the prices was little. Paddy prices did not increase as expected. But we hope the prices will rise after we start getting delivery," said Ahmed Hossain Khan, director general of Directorate of Food.He, however, said the government's announcement of buying rice helped contain a fall in prices.Asked on the low purchase rate, he said, "We saw in the past that growers do not get benefit if we offer higher prices. Millers and traders enjoy the benefit by buying from farmers at the prevailing market rate."Azhar Ali, who is also engaged in paddy trading, said each maund (40 kg) of coarse paddy such as Swarna variety trades at as high as Tk 550 now.A kilogram of coarse paddy is traded at Tk 13.75, which is below the government estimate of average production cost of paddy at Tk 16.24 for each kilogram."The volume of rice trading is low because of a lack of interest among the stockists.

Many of them incurred losses last year," he said."The farmers, who depend largely on rice, are going through tough times. Their purchasing capacity fell due to the reduced prices of rice," said Azhar."Many small farmers meet their household needs by borrowing from relatives and friends, keeping dues at shops," he said.

Impact of low prices Mahabub Hossain, who follows agriculture and rural economy, said the low price of paddy is a big concern as it has brought down farmers' income."In the past, we used to say that farmers produce more crops but do not get fair prices. That situation has come back again," he said."The momentum of increasing production cannot be sustained by making the farmers disappointed," said Hossain, the executive director of BRAC.He said the farmers who produce surplus may shift from rice cultivation.

"In case, they stay, they will take little care. At the same time, majority of producers, who depend on rice, are poverty-stricken. The government should also consider their interests."He said the country is rice-surplus with the prices in the domestic market remaining below the current international prices.Rice exports could have helped bring a bullish trend in the domestic market. But the government appears to be reluctant in taking the risk, considering a negative impact on votes, he said.Hossain, however, said the demand for industrial commodity such as clothes, footwear and construction materials rises if farmers have disposable income.

Increased production of industrial commodities in the past three-four years reflected the rising domestic demand, he said.

"This growth will not sustain unless farmers are in a good condition," said Hossain.He suggested the government should target the prices not the quantity, while planning to buy from the market. He said the government should declare a price range.If the prices go below the announced range, it should buy from the market. And if the prices exceed the range, it should intervene in the market, he said.

Select grains decline on lack of demand PTI: NEW DELHI, JAN 02 2013, 16:33 IST

Tags: Grains Demand | Commodities News

New Delhi: Maize and barley prices declined up to Rs 20 per quintal on the wholesale grains market today on lack of demand from consuming industries against adequate stocks position.However, wheat and rice basmati held steady in limited deals.Marketmen said lack of demand from consuming industries against increased supplies mainly kept pressure on select wholesale grains.In the national capital, maize and barley prices declined by Rs 20 each to Rs 1,480-1,510 and Rs 1,420-1,430, while bajra weakened by Rs 10 to Rs 1,3601,365 per quintal respectively.

The following are today's quotations per quintal:

12

Wheat MP (deshi) 2,050-2,250, Wheat dara (for mills) 1,560-1,565, Chakki atta (delivery) 1,565-1,570, Atta Rajdhani (10 kg) 210, Shakti bhog (10 kg) 210, Roller flour mill 830-850 (50 kg), Maida 860-890 (50 kg) and Sooji 920-950 (50kg).

Basmati rice (Lal Quila) 9,500, Shri Lal Mahal 9,500, Super Basmati Rice, 9,000, Basmati common new 6,6006,900, Rice Pusa-(1121) new 6,000-6,700, Permal raw 1,900-2,000, Permal wand 2,175-2,225, Sela 2,4002,450 and Rice IR-8 1,550-1,600, Bajra 1,360-1,365, Jowar yellow 1,425-1,435, white 2,225-2,425, Maize 1,480-1,510, Barley 1,420-1,430, Rajasthan 1,080-1,090.

Price of rice increased

By TRYNESS MBALE THE price of rice at Soweto market has increased by about K15, 000 as demand has outstripped supply, a survey has revealed.The price of rice has gone up to K45, 000 from K30, 000 meda (about five Kilogrammes).

A survey conducted by the Daily Mail in Lusaka at both City and Soweto markets last week revealed that a meda of rice is being sold between K40,000 and K45,000.A 50 Kg bag of Mongu and Nakonde rice is fetching as high as K320,000 from K140,000 in September.Misheck Nyirenda, a rice trader of Lusaka, attributed the increase in the price of rice to high demand from the public and due to the fact that this is the planting season and most farmers have run out of stock.―The increase in the price of rice is due to high demand …you see, starting from somewhere May to October there is plenty stock from the farmers who supply us with the commodity and it was cheap in the previous months .―But as we approach the planting season which started in November and harvest in May, most farmers opt to keep the remaining stock for seed and enough for consumption,‖ he saidMr Nyirenda said most farmers have taken advantage of the peak period to increase the price.

He said rice is on high demand following the increase in mealie -meal prices in the country which is the staple food and rice has become a substitute.He also said the increase in the price of rice by farmers has made it difficult for most traders with low capital to continue with their business.―Previously, we used to buy a 50kg bag of Mongu rice at K140,000 but now we are buying it at K320,000. This has resulted in us increasing the price of rice when we bring in the costs associated with transport,‖ he said.Another trader from Soweto market, Mary Chand,a said the number of customers buying the commodity is high especially during the festive period.

Ms Chanda said, ―I usually order my rice from farmers in Nakonde at a cost of about K170,000 per 50Kg bag .

When I buy, I resell the rice to marketeers and the public by adding a markup to earn a profit,‖ she said.

She predicted that by next month a meda of rice is expected to increase to about K60,000.

13

3rd January ,2013

Pakistan Delays Allowing Free Rice Trade with India By news desk on January 02,2013

Pakistan has missed the December 31, 2012 deadline to award the Most Favored Nation (MFN) status to India which would have liberalized trade of several items, including rice, between the two neighboring countries.

Pakistan and India are both members of the World Trade Organization (WTO) and must allow free trade between the two countries under WTO rules. While India awarded the MFN status on Pakistan several years ago, Pakistan has so far not allowed free trade of all items.

The Pakistan government had set a deadline of December 31, 2012 to liberalize trade with India, but last week, Pakistan‘s Commerce Minister said that the government delayed awarding the MFN status to India for a ―short time‖ because of ―procedural hiccups.‖ While representatives of several sectors, including rice exporters of Pakistan, believe that opening up trade with India will help Pakistan, some rice growing associations are opposed to the move, saying import of highly subsidized rice from India will hurt returns of local farmers. Last month, some groups reached the Wagah border with India to register their protest against the move to award the MFN status to India. The Pakistan government said that it is working to resolve the problems over the MFN status to India and progress should be made soon after the next cabinet meeting.

Meanwhile, Indian rice exporters have already started visiting Pakistan to study the rice market in Pakistan and also to explore the possibility of re-export of Indian rice from Pakistan to Central Asian and Middle Eastern countries.

Vietnam 2012 Rice Exports Reach 7.5 Million Tons By news desk on January 02,2013

14

Vietnam‘s rice exports from January 1 to December 27 have reached 7.58 million tons, according to the Vietnam Food Association (VFA). After rising to around $466 per ton in November 2012, average rice export price are at around $458 per ton in December, down about 2% from the previous month. Vietnam‘s total rice exports in the full calendar year 2012 is expected to reach around 7.7 million tons, the highest ever for the country and about 8% higher than the 7.1 million tons exported in 2011.

Thailand Rice Sellers Increase Some of Their Quotes; India Rice Sellers Increase Most of Their Quotes; Vietnam, Pakistan Rice Sellers Keep Indications on Hold By news desk on January 02,2013

Thai rice sellers increased their quotes for parboiled rice by about $5 per ton to about $560 - $570 per ton today. Indian rice sellers increased most of their quotes by about $5 per ton today. Viet and Pak rice sellers kept their quotes unchanged.

Thai 5% rice is quoted around $545 - $555 per ton, about a $135 per ton premium over Viet 5% rice shown around $410 - $420 per ton. Indian 5% rice is quoted around $430 - $440 per ton, up about $5 per ton from yesterday and about a $15 per ton premium over Pak 5% rice shown around $415 - $425 per ton. Thai 25% rice is quoted about $530 - $540 per ton, about a $155 per ton premium over Viet 25% rice indicated around $375 $385 per ton. Indian 25% rice is quoted about $385 - $395 per ton, up about $5 per ton from yesterday and about a $35 per ton premium over Pak 25% rice shown around $350 - $360 per ton.

Thai parboiled rice is quoted around $560 - $570 per ton, up about $5 per ton from yesterday. Indian parboiled rice is quoted around $420 - $430 per ton, up about $5 per ton from yesterday and about a $30 per ton discount to Pak parboiled rice shown around $450 - $460 per ton.

Thai broken rice, A1 Super, is quoted about $495 - $505 per ton, about a $150 per ton premium over Viet broken rice shown around $345 - $355 per ton. Indian broken sortexed rice is quoted about $340 - $350 per ton,

15

up about $5 per ton from yesterday and about $15 per ton premium over Pak broken sortexed rice indicated around $325- $335 per ton.

Indonesia Plugs Rice Imports as Stocks Reach Record High in 2012 By news desk on January 02,2013

Indonesia is unlikley to import any rice in 2013, the result of record ending rice stocks in 2012 and the targeted 6% increase in rice production this year.

The chief of Indonesia‘s rice buying agency, Bureau of Logistics (Bulog), said this week that national rice stocks at the end of 2012 reached 2.3 million tons, and rice procurement by Bulog reached a record 3.7 million tons. "Rice stocks at the end of December are usually below 2 million tons… Rice stocks and rice procurement at home are in the best condition ever, as of the end of December. This is the best condition in Bulog's history," he said.

The Bulog chief also said that considering the targeted increase in domestic rice production this year, Indonesia may not import any rice in 2013. "It is not likely that we will import rice because the ministry of agriculture has set itself the target of raising production by about 6 percent to 72-74 million tons," he said.Indonesia is one of the top rice importers of the world, but rice imports have come down sharply in 2012. According to Bulog, Indonesia imported just 700,000 tons of rice (600,000 tons from Vietnam and 100,000 tons from India) in 2012, down 157% from around 1.8 million tons imported in the previous year.

The reduction in rice imports last year is in part due to the 4.87% increase in Indonesia‘s paddy rice production last year to about 68.96 million tons. According to Bulog, the country consumes about 33 million tons of rice (milled basis) annually and a 6% increase in paddy rice production to about 74 million tons in 2013 will lead to a surplus of rice stocks in 2013. The Ministry of Agriculture is targeting to increase paddy rice production to about 72.6 million tons in 2013, up about 5.4% from 2012.

Oryza Exclusive: Food Crisis Still Looms in 2013, Says FAO Economist By news desk on January 02,2013

Rice production is estimated to have reached a record high of 485.9 million tons in 2012, which helped avert a repeat of the 2008 food crisis as had been feared by leading economists and food security experts last year.

However, the threat of a food crisis still looms in 2013, says Ms. Concepcion Calpe, senior economist at the UN‘s Food and Agriculture Organization (FAO). ―It is true that world food prices in 2012, although high, have been lower on average than in 2011. Over several months, however, they exceeded their corresponding month level in 2008. So, on those bases, it is difficult to affirm that a repeat of the 2008 crisis has been avoided,‖ Ms. Calpe told Oryza. She also said that the food situation remains precarious and in some ways, worse than what it was one year ago. ―Given the low inventories, the risk of facing unexpected supply shortages, and hence, rising international prices, stays high,‖ she told Oryza.

According to FAO‘s December 2012 report, the forecast for ending stocks of rice in 2013 is around 169.8 million tons, up significantly from about 129.8 million tons in 2008. However, ending stocks of wheat are predicted at around 163 million tons, down from last year‘s 183 million tons, and slightly more than 161 million tons in 2008. Coarse grain ending stocks are expected to be about 160 million tons in 2013, down about 30 million tons from 2008 levels.

According to the USDA, food prices are likely to increase in 2013 as the transmission of commodity price changes into retail prices typically takes several months to occur, and most of the impact of the 2012 drought is expected to be realized in 2013.

16

The threat of a food crisis in 2013 is also supported by predictions by Japan‘s weather agency JAMSTEC that drier than normal conditions will prevail in the Indian sub-continent and several other rice growing countries during summer 2013.

Oryza Quick Glance at MDA Rice Crop Weather Update By news desk on January 02,2013

Oryza shares some of MDA Earth Satellite Weather‘s latest rice crop weather updates: Rainfall will help improve moisture supplies in northwestern Brazil, but northeastern parts will continue to be dry.

Continued rainfall may cause excessive wetness in Argentina and Uruguaythis week.

Rainfall is expected in central and southern parts of the Philippines this week.

Rainfall in Indonesia is favorable to rice crop in and improve moisture supplies in central Vietnam.

Drier weather will help reduce wetness concerns in Nigeria.

Rainfall will improve moisture supplies in northern and central Mozambiqueand Madagascar, but dryness will increase in southern Mozambique.

Weather will remain dry in India, Bangladesh and Pakistan, helping harvesting activities in the countries.

For more complete weather information, contacthttp://www.mdafederal.com/mda-earthsat-weather.

Rice Production Increases 3% in 2012 to 412,000 Tons By news desk on January 02,2013

Rice production in Guyana as of December 2012 has exceeded the target of 412,000 tons and reached about 420,000 tons, up about 3% from the previous year‘s 402,000 tons, according to the Ministry of Agriculture.

Guyana exports over 50% of domestic rice production. In 2011, the South American country exported about 300,000 tons of rice, but in 2012, exports were higher than in 2011, the ministry said. ―The rice sector has also done exceptionally in export as well as the also reported that more than 300,000 tonnes of locally grown rice was sold to other countries. The rice export earning now stands at US$176 million and has the potential to increase by US$20 million by the end of December 2012.‖ the ministry said.

The ministry said that Guyana exports most of its rice to Venezuela, but is keen to expand to markets in Europe and Caribbean countries as well.

Oryza Rice Currency Analysis for Today – Thailand Baht, India Rupee Rally

By Oryza News on January 02,2013

U.S. dollar index was up +0.13% from the open today, when it traded at 79.840 at the close.

Euro fell -0.20% to around 1.3178 by end of day, after U.S. lawmakers managed to pass a bill avoiding the 'fiscal cliff' of tax breaks and spending set to expire at the end of 2012. However, critics say they have simply kicked the can further down the road.

Thai baht closed the day +0.91% stronger, trading at 30.31 at the close of business today.

Indian rupee was +0.60 stronger, when it traded at 54.3600 at the close of business today.

Brazilian real was +0.29% stronger than the open at today‘s close, when it ended at 2.0457 reais per dollar.

Pakistan rupee was -0.12% weaker at the close today, when it traded at 97.3700.

17

Vietnamese dong was -0.02% weaker from the 20835 dong per dollar open, at the close of business today when it traded at 20840.

Mexican peso recovered today, in the order of +0.96% by the close today, trading back below the 13 peso per dollar pivot, at 12.7670 pesos per dollar by the close of business.

Chinese yuan was +0.12% stronger today at the close, when it traded at 6.2331.

Argentine peso was -0.17% weaker from the open, when it closed at 4.9237 pesos per dollar today.

Taiwan Per Capita Rice Consumption Declines 50% in 30 Years, Obesity Continues to Increase By news desk on January 02,2013

In Taiwan, the per capita rice consumption has declined sharply by over 50% in three decades, from an annual per capita rice consumption of 98 kilograms in 1981 to just 45 kilograms in 2011, according to the Agriculture and Food Agency.

The agency said that the decline in rice production is due to a false perception among Taiwanese that eating rice increases one's weight. The agency said that despite the decline in rice consumption, obesity cases are increasing in Taiwan due to the popularity of Western food items that are rich in oil and sugar.

The agency added that rice is a healthier option than flour-based foods as rice has more nutrients and is more natural than other flour-based foods.

U.S. Rice Prices Hold Steady Amid Thin Trade By news desk on January 02,2013

The U.S. cash rice market very quiet today as market participants slowly returned from the long New Year's weekend. Analysts insist that most sellers remain uninterested in the current market price and are content to wait until prices improve before marketing their rice despite five consecutive days of weakness in the futures market.

Offers from farmers held steady near $15.00 per cwt (about $331 per ton) for January-February-March delivery while offers from resellers remained unchanged at more attractive levels even as the futures market closed lower.

Bids from most mills decreased to around $14.15 per cwt (about $312 per ton) for January-February-March delivery although bids from a few smaller mills were reported to have been as high as $15.15 per cwt (about $334 per ton) for prompt delivery which generate some light selling interest Bids from exporters fell today to around $14.30 per cwt (about $321 per ton) for January-February-March delivery for minimum 50 lbs of head rice however no trades were reported at this level today.

Going forward, analysts believe that buyers will have to pay higher prices to get farmers to part ways with their rice or there will be a large decrease in planted acreage next year, thus supporting prices.

Oryza Afternoon Recap – Chicago Rough Rice Futures Fall as Grains Slide Under Technical Selling Despite Last Minute Budget Agreement By news desk on January 02,2013

Chicago rough rice futures for March delivery settled 13 cents per cwt (about $3 per ton) lower at $15.045 per cwt (about $332 per ton). Rough rice futures slid for the fifth consecutive session despite what looked to be a positive open on supportive outside markets. Consistent speculative selling proved to be enough to overcome scale down commercial buying. According to one trader bulging global rice supplies are weighing futures down despite ever tightening U.S. stocks. U.S. grains took a steep dive today despite supportive outsides and positive news concerning progress in Washington concerning the farm bill, as technical selling quickly took hold

18

following a positive open; soybeans finished the day about 1.2% lower at $13.9225 per bushel; wheat traded down about 2.9% at $7.5525 per bushel; and corn finished the day about 1.1% lower at $6.9075 per bushel.

U.S. stocks staged a sharp rally across the board to start the New Year, with the S&P 500 and Nasdaq trading near 2-1/2 month highs, as Wall Street celebrated the last-minute budget agreement by lawmakers to avert the "fiscal cliff." The Dow Jones Industrial Average soared more than 200 points. There have only been five instances when the Dow had a triple-digit move on the first day of trading. And in an optimistic sign for investors, the blue-chip index then went on to finish with a gain of greater than 7% in each of those years. The S&P 500 and the Nasdaq also jumped. U.S. stock markets are currently trading about 1.7% higher, Gold is trading up about 0.8%, crude oil is currently trading up about 1.1%, and the U.S. dollar is trading about 0.1% higher at about 2:00pm Chicago time.

Looking to the daily continuation chart of Chicago rough rice futures for March delivery, the market maintained its downward momentum. Today‘s action once again saw prices move to close below what was the current price objective of $15.116 per cwt (about $333 per ton), provided by the lower Bollinger band. This places the market within striking range of a multi month low of $14.910 per cwt (about $329 per ton) which was put in place in mid-November, however the 4-week low at $15.035 per cwt (about $331 per ton) should provide nearby support and could limit downward potential tomorrow. The negative turn in the faster moving 20-day moving average as well as the current negative divergence between the MACD and signal lines confirm the current short-term bearish trend. Today‘s trading range is noted as $15.035-$15.230 per cwt (about $331-$336 per ton).

Monday, there were 621 contracts traded, down from 2,437 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday fell by 935 contracts to 14,260.

Oryza Overnight Recap – Chicago Rough Rice Futures Firm as Traders Cheer Approval of Bill Designed to Avert the ―Fiscal Cliff‖

By Oryza News on January 02,2013

Chicago rough rice futures for March delivery were last traded at $15.160 per cwt (about $334 per ton) as of close of trading on Monday December 31. As of 8:45am indications are that the market will open higher from these levels are there are currently strong bids being shown with only small lots being shown on the offer side.

Outside markets are very bullish in the light of recent developments being made in Washington and should prove very supportive to U.S. commodity prices, including the Ags. As of this writing all external and fundamental factors point to a higher open for U.S. grain prices.

Looking to the intraday 15-minute chart for rough rice futures for March delivery, there was no trade overnight due to the New Year‘s Holiday. Turning to the longer term daily continuation chart it is noted that the market suffered a late year sell-off leading the market to break through support provided by the 50-day moving average and then ultimately dipping below the price objective of 15.212 per cwt (about $335 per ton) as provided by the lower Bollinger band. The current technical outlook is bearish as is the short-term, multi-session trend.

U.S. stock index futures were sharply higher on the first trading day of 2013, after the U.S. House of Representatives finally approved a bill to avert the "fiscal cliff." The gains come after U.S. stocks ended 2012 with their strongest rally in over a month, boosting the S&P 500 up 13.4% for the year, after a flat performance in 2011. Late Tuesday, lawmakers passed legislation that prevented most impending tax increases and postponed spending cuts by two months, while raising taxes on the wealthiest 2 percent of Americans. Global markets welcomed the news, with Asian and European markets rallying across the board. U.S. stock index

A Quick Glance at World News - What the Financial Times, Wall Street Journal and New York Times Are Reporting Today

19

By news desk on January 02,2013

Financial Times – *The drama over the fiscal cliff in the U.S. ended late on Tuesday when the House of Representatives passed legislation-lifting taxes on the wealthiest Americans after a topsy-turvy day on Capitol Hill. *North Korean leader, Kim Jong-eun, has called for an end to confrontation with South Korea and stressed the importance of economic development in the first televised New Year address by a North Korean leader in 19 years. *The U.K. is set to lose out to Germany and Poland as an investment destination in 2013, according to a survey of the investment attitudes of 500 international decision makers by Ernst & Young. Ernst & Young finds that 35% favor Germany as a destination for large investments in Europe, followed by 10% for Poland. The U.K., in third place, was favored by 8%. *The French president, François Hollande, has pledged to retain high taxes on the rich and made reversing a sharp rise in unemployment his top priority for 2013 in a bid to regain political momentum as he battles a flagging economy and low opinion poll ratings. *Turkey has opened disarmament talks with Abdullah Ocalan, the jailed leader of the Kurdistan Workers party (PKK), according to a senior political adviser to Prime Minister Recep Tayyip Erdogan. *A correspondent for the New York Times, Chris Buckley, a reporter who had been working in China since 2000 and rejoined the Times in September last year after a stint with Reuters, was forced to leave mainland China because the authorities had not renewed his journalist visa, signaling Beijing‘s increasingly fraught relationship with foreign media. *Boeing is set to overtake Airbus for the first time in a decade by delivering more passenger jets to customers in 2012, primarily because the US manufacturer is cranking up production of its 787 Dreamliner after years of delay. *Oracle went on a belated buying spree of ―cloud‖ software companies in 2012, despite earlier denunciations by chief executive Larry Ellison of the internet-based market as a fad.

Wall Street Journal*Tens of thousands marched in Hong Kong on the first day of 2013 to call for the city's Beijing-backed leader, Leung Chun-ying, to step down over allegations he was untruthful about illegal renovations at his home and to press for full democracy. *Venezuela Vice President, Nicolas Maduro said he would return to Caracas Wednesday following a five-day visit in Cuba with ailing President Hugo Chavez, and said the cancer-stricken leader is showing occasional, slight signs of improvement. *South Korean steelmaker Posco said Tuesday that it and its partners have agreed to purchase a 15% stake in an ArcelorMittal controlled iron-ore mining company in Canada for $1.1 billion. *An automotive forecasting firm Polk predicts that the recovering U.S. auto industry should hit its stride this year as new vehicle offerings, pickup-truck demand, and a stable economy push sales above 15 million. *China has issued a fresh warning to its local governments to control risk and stop using unauthorized fundraising methods to pay for the building of infrastructure and other projects. *Iran's navy issued dozens of warnings to foreign planes and warships that approached its forces during a fiveday sea maneuver near the strategic Strait of Hormuz, a semiofficial news agency reported Tuesday. *A crowd stampeded after leaving a New Year's fireworks show early Tuesday in Ivory Coast's commercial center, killing 61 people, many of them youths, and injuring more than 200, rescue workers said. *India's capital-markets regulator is taking steps to tame what has been one of the world's wildest IPO markets, with plans including forcing companies' founders to reimburse small investors for some losses. The goal is to convince investors that the stock market is a safe place for their savings. In the first 11 months of 2012, investors pulled out a net total of nearly $2 billion from equity mutual funds, which are used mainly by individuals.

New York Times-

20

*Pennsylvania Governor Tom Corbett said Tuesday that he planned to sue the N.C.A.A. in federal court over sanctions imposed against Penn State in the wake of the Jerry Sandusky child sexual abuse scandal. *One of Shell Oil‘s two Arctic drilling rigs, the Kulluk, is beached on an island in the Gulf of Alaska, threatening environmental damage from a fuel spill and calling into question Shell‘s plans to resume drilling in the treacherous waters north of Alaska in the summer. *LG Electronics Inc started taking orders on Wednesday for organic light-emitting diode (OLED) televisions, hoping to outdo rival Samsung Electronics Co Ltd in the next-generation technology that could change the face of electronics displays. *President Omar al-Bashir of Sudan has agreed to meet with President Salva Kiir Miyardeit of South Sudan on Friday in Ethiopia to discuss border security and oil sharing, the official Sudanese news agency reported Tuesday. *The Taliban has likened the planned withdrawal of U.S. forces from Afghanistan to America's pullout from Vietnam, calling it a "declare victory and run" strategy. *Asian and European banks, such as Deutsche Bank, Commerzbank, Societe Generale, BNP Paribas, and Nomura, registered as U.S. swap dealers this week, joining Wall Street rivals in complying with new rules that aim to shed light on the opaque $650 trillion (398.2 trillion pounds) derivatives market.

3rd January,2013 Declining Indian rice prices affects rice export

By Tanveer Sher

KARACHI: Rice Exporters Association of Pakistan (REAP) has expressed concern over the alarming decline of Pakistani Basmati rice exports in the wake of declining rates of Indian rice.

REAP urged the government to take appropriate measures for the betterment of Basmati rice exports. The government should particularly take action against the elements dumping Basmati rice and causing artificial price hike in local markets.

Jawed Ali Ghori Chairman REAP informed due to increased tariffs of electricity and gas, millers have to run their mills on diesel generators, which was multiplying their operational cost and for this reason prices of Basmati rice have increased by 15 percent.

On the other hand due to lower prices of Indian rice, Pakistan was facing 53 percent decline during the last six months of current fiscal year 2012-13 as compared of last fiscal year 2011-12.

Pakistan has exported 239,764 metric tonnes of Basmati rice valuing $233 million during July 2012 to December 2012, whereas for the same period in last year, we had exported 506,904 metric tonnes valuing $440 million. He claimed during the last six months, Pakistani rice was not getting good price from Iranian importers and for the same reason exports to Iran via Quetta Border has shown 66 percent decline. In addition tender of rice from Qatar government has been awarded to India due to their lower prices. He was worried Pakistan has not getting new orders from Oman, Abu Dhabi and Doha.

Farm safety net, direct payments, and market programs extended Jan. 3, 2013USA Rice Federation

The farm bill extension authorizes direct payments at no reduction for the 2013 crop year, retains the Market Access and Foreign Market Development Programs at mandatory funding levels and makes no crop-insurance-program changes.

The House and Senate-passed fiscal cliff bill (H.R. 8,American Taxpayer Relief Act of 2012) extended the Food, Conservation, and Energy Act of 2008 (P.L. 110-246) in general through Sept. 30, 2013. The bill

21

authorizes direct payments at no reduction for the 2013 crop year, retains the Market Access and Foreign Market Development Programs at mandatory funding levels and makes no crop-insurance-program changes.

In response to completion of the budgetary-and-tax-policy negotiations, the USA Rice Federation issued a statementthat urged lawmakers to "include a five-year farm bill in broader deficit-reduction legislation this year." USA Rice also said that a farm bill would "offer farmers and ranchers necessary long-term certainty, but it would also yield taxpayers substantial budget savings and help tame our country's deficit spending."

Lawmakers should not allow to go unfinished three years of hard work devoted to writing the next farm bill, USA Rice said. The Federation pointed out that House and Senate Agriculture Committees have developed a set of budget-saving policies that still meet the needs of rural America.

The Conservation Stewardship Program, the Environmental Quality Incentive Program and the Wildlife Habitat Incentive Program will continue to operate through Sept. 30, 2014. Congress extended the mandatory-funding authority for these programs in a prior appropriations bill.

CALIIFORNIA rice ahead of curve on reducing greenhouse gases Jan. 3, 2013Brad Hooker, Science Writer, UC Davis    

Greenhouse gases are only a minor concern because California rice production emits relatively little of the potentially harmful gases.

Rice contributes about a tenth of 1 percent of the GHG emissions from California‘s agriculture sector – nearly the same as the global contribution.

California rice emits an estimated three to four tons of GHGs per acre per year, with a potential reduction of half a ton through costly control measures. This translates to just $5 an acre on the current carbon trading market.

For many environmental concerns, the California rice industry has often led the response.

California rice grower Tom Butler is on a fact-finding mission. For four years, he has been applying two new practices to his Sacramento Valley fields. He is dry seeding crops to reduce irrigation and draining the fields earlier when preparing for harvest. In doing so, Butler conserves water, but he may be helping the environment another way: by reducing greenhouse gas (GHG) emissions, such as methane and nitrous oxide.

Butler is participating in a pilot program funded by the Environmental Defense Fund. Though it‘s too early to measure, he has seen promising signs from the project.―We‘ve had good results with yield and water conservation, which really was our goal,‖ says Butler. ―We‘re happy that greenhouse gases go down as a result of that, but they weren‘t the initial reason why we do that.‖ Greenhouse gases are only a minor concern because California rice production emits relatively little of the potentially harmful gases. According to a study by a group of researchers that includes Chris van Kessel from the University of California, Davis, increasing methane emissions by rice agriculture – a natural result of climate change – are a growing concern on the global scale. The study found that a rise in carbon dioxide (CO2) in the atmosphere has increased the intensity of GHG produced from rice cultivation by more than 31 percent.

22

―Together, higher carbon dioxide concentrations and warmer temperatures predicted for 2100 will lead to a doubling of the amount of GHG emitted per kilo of rice produced,‖ says van Kessel. ―However, it is also very likely that in 90 years from now, significant progress will have been made in reducing GHG from rice fields.‖ Of the global GHG accumulation for all sectors, 0.001 percent comes from California rice fields, according to data compiled by Louis Espino, UC Cooperative Extension rice farm advisor for Colusa County. An inventory by the California Air Resources Board (ARB), meanwhile, puts agriculture at 7 percent of the total statewide GHG emissions. Of this amount from agriculture, rice cultivation accounts for just 1.8 percent. In other words, rice contributes about a tenth of 1 percent of the GHG emissions from California‘s agriculture sector – nearly the same as the global contribution. ―It‘s such a new issue I don‘t think much has been done in that area,‖ says Espino. ―Right now UC Davis is doing the research, doing the modeling, trying to understand what goes on in the soil.‖ Espino points to high yields – with greater efficiency and higher production – per acre as the main reason why California rice GHG intensity is low. Little land is devoted to rice cultivation (540,000 acres) when compared to the large rice exporting countries across Asia. With less land in production, less opportunity is available for production of methane gas.

State crop insurance firm issues P10B worth of policies in 2012 January 3, 2013 8:00pm The Philippine Crop Insurance Corp. generated P10.63 billion worth of insurance policies in 2012, a 97.6percent year-on-year increase, the government-controlled corporation said.

PCIC president Jovy Bernabe attributed the PCIC's 145.8-percent rise in underwriting profit to P303.942 million to good risk management.

He also said that crop insurance gained greater popularity among farmers and fisherfolk in a year of strong storms made more intense by climate change.The number of farmers taking out insurance coverage with PCIC rose to 281,852 farmers. A year earlier, they numbered barely 100,000.Of the total, about 134,662 are rice and corn farmers; 12,947 are livestock raisers; 1,111 are high value crop farmers; and 21 are fisherfolk. The remaining 133,111 were insured under the Term Insurance Package and Non-Crop Insurance coverage.

The land area of insured farms rose 23 percent to 187,619 hectares.

The PCIC also attributed the rise in insurees to: the growing number of cooperatives and grassroots organizations that took out Land Bank of the Philippines rice and corn production loans; the participation of the National Agribusiness Corporation in the corn insurance program; the implementation of compulsory insurance coverage for farmers participating in the Land Bank-Sikat Saka; and the government‘s third cropping program for rice farmers.

In 2012, the PCIC paid out P195.641 million to 27,369 farmers and farm workers. Only 525 of the total were not rice or corn farmers. — BM, GMA News

23

PH self-sufficiency in rice not feasible ABS-CBNnews.com Posted at 01/03/2013 10:21 AM | Updated as of 01/03/2013 4:33 PM

MANILA, Philippines - The Philippine government declares this is the year the country will be self-sufficient in rice. But at least one economist says the goal is not feasible. Philippine Institute for Development Studies (PIDS) senior research fellow Roel Briones explains areas planted with rice may be increasing but yields or the amount of palay per hectare is not rising fast enough.

Briones adds some irrigation projects may be substandard."I would really suspect that a lot of these projects did not undergo the usual due dilligence such as rate of return analysis in a rush to achieve these production targets," Briones told ANC. Briones said the most effective way to reach self-sufficiency is to raise tariffs and barriers on imported rice.

That would mean less competition for local farmers, allowing them to raise prices and to produce more.

"By raising tariffs or maintaining higher trade barriers through quantitative restrictions, you can achieve rice self-sufficiency. But at what cost? You're going to place rice, the basic staple for most Filipinos, even further from the reach of the poor," he said.President Aquino has boasted that the Philippines will not only become rice self-sufficient by 2013, but also become a net rice exporter. The Aquino administration has crafted the Food Staples Sufficiency Program (FSSP) aimed at rice self-sufficiency or zero imports by 2013. - ANC

778,000 farmers join scheme 

Published: 4/01/2013 at 12:00 AM,Newspaper section: Business

A total of 5.64 million tonnes of rice worth 84.5 billion baht has entered the government's pledging scheme since the new harvest season began last October.

A senior official at the Bank for Agriculture and Agricultural Cooperatives (BAAC), the scheme's main credit provider, said 778,000 farmers have joined the programme for the 2012-13 harvest season ending this September.

Despite the high funding required, the bank will strive to maintain its capital adequacy ratio at a minimum of 10% to ensure stability, said the official.

Unlike commercial banks, the state-owned bank is exempted from some rules imposed by the Bank of Thailand.

To maintain stability, it has opted to adopt some standards including the 8.5% capital-adequacy ratio required of commercial banks.

The cabinet recently allowed the bank to increase its capital by 10 billion baht.

In a separate development, Thailand had shipped 6.93 million tonnes of rice as of Dec 28 including 1.7 million tonnes through government-to-government (G2G) contracts, said Tikhumporn Natvaratat, deputy directorgeneral of the Foreign Trade Department.

Rice shipments dropped by 30% year-on-year to a value of US$4.73 billion, down by 20%, leading Thailand to lose its ranking as the world's biggest rice exporter for the first time in 48 years.

It now ranks third. India became the world's biggest rice exporter with 9.5 million tonnes, while Vietnam shipped 7.5 million tonnes.

24

Moderate buying holds rice steady KARNAL, JAN. 3:

A steady trend prevailed in the rice market with prices of aromatic and non-basmati varieties maintaining their previous levels on Thursday.

Amit Chandna, proprietor of Hanuman Rice Trading Company, told Business Line that moderate buying kept the price unchanged. Retail buyers are purchasing limited quantity following too much volatility in the market. Traders expect the market to witness some good levels in days to come by as market sentiments are still largely positive, he said.

In the physical market, after witnessing an uptrend earlier this week, aromatic and non-basmati varieties remained unaltered.

Pusa-1121 (steam) sold at Rs 6,700-6,800 a quintal while Pusa-1121 (sela) went for Rs 5,800.

Pure basmati (raw) quoted at Rs 8,000. Duplicate basmati (steam) traded at Rs 5,500-5,600.

Sharbati (steam) quoted at Rs 4,300 while Sharbati (sela) was at Rs 4,175.

PR-11 (sela) was sold at Rs 2,550-2,650 while PR-11 (raw) quoted at Rs 2,550-2,600. Permal (raw) sold at Rs 2,200-2,300 while Permal (sela) went for Rs 2,150-2,300.

PADDY ARRIVALS About 2,000 bags of PR variety arrived and went for Rs 1,150-1,200, Sharbati arrived with a stock of around 1,500 bags and quoted at Rs 2,100-2,135. About 1,000 bags of Sugandha 999 went for Rs 2,600-2,700.

About 5,000 bags of Pusa-1121 arrived and quoted at Rs 3,000-3,250 a quintal.

Keywords: aromatic and non-basmati varieties, Hanuman Rice Trading Company

New improvised tool for SRI paddy planting method LESS WEIGHT: The new tool at a field demonstration. Photo: Special Arrangement

This device helps farmers to plant the seedlings at exact locations One of the main steps Tamil Nadu farmers are advised while growing paddy under ‗System for Rice Intensification,‘ method, popularly called as SRI, is to adopt seedling distance while planting. ―Planning the planting space is important for a good yield. Normally about 500 seedlings are planted from the nursery to the main field at a rough spacing of 20X10 cm. ―This spacing differs in some regions according to the labour availability and convenience. Whereas under SRI, about 16 single seedlings are planted at spacing of 25X25 cm,‖ says Dr. G.Kathiresan, Director (Planning & Monitoring, Tamil Nadu Agricultural University, Coimbatore.

Initial stage During the initial stages of SRI introduction, a lengthy rope was used for marking the seedling space.Two labourers used to hold the rope at the ends on either side of the field bunds and walked across the field, while another person made markings on the field for planting.But this system did not prove popular because the line of planting was not straight due to naturally occurring slopes or partition in the fields.

The line of planting also used to get altered. Physical labour was also more for this work.Considering the demerits of rope marking, an iron roller marker was introduced. It requires two labourers to pull the iron marker which has pegs on it to mark the place of planting.

25

The rolls are fitted in such a way as to mark 25 cm. But this did not prove to be easy, the main reason being the roller was heavy in weight and farmers found it difficult to pull it in the slushy, water laden fields. The marking was also not visible.The University came out with yet another simple and improvised device for planting.

Bamboo sticks A low weight triangular pointer with three straight bamboo/casuarina sticks or polyvinyl chloride pipes was introduced. ―These three lengthy sticks tied with small sticks (25 cm length), or 6 mm iron rod fitted with half an inch GI triangular shape pipe holder with 60 angles in each corner. For convenience, ten feet sticks (three numbers) are sufficient for planting by two labourers,‖ explains Dr. Kathiresan.The iron rod measuring 25 cm in length, represents the intra row spacing and the ten feet sticks in which markings are made represent inter row spacing.

Iron rods For measuring the spacing, a triangular shaped iron rod fitted with the lengthy (10 feet) sticks at every five feet is also introduced.Six points are marked on the lengthy sticks at the spacing of 25 cm to point the exact place for planting the seedlings. The planting can be done by a single labourer for an acre.Farmers can use this device by placing it in the field parallel to the field bunds. The seedlings can be planted inside the triangular lengthy sticks. This is quite easy though cumbersome for some workers.Normally for SRI planting, 45 labourers are needed to cover one hectare land. In the case of SRI planting with this new tool, 33 labourers are sufficient to cover the same area, according to him. ―The main objective for introducing this device is to help farmers to plant the seedlings at the exact location without any confusion and at the same time to maintain appropriate space between seedlings,‖ says Kathiresan The device is presently being used by farmers in Tanjavur, Ambasamudram, and Tirunelveli districts.

General opinion The general opinion among some of the farmers who used this device is that it would be a good initiative if this work can be mechanised instead of doing it manually, as sourcing labour for the same is proving to be very difficult.

For more details contact Dr.G.Kathiresan, Director (Planning & Monitoring, Tamil Nadu Agricultural University, Coimbatore – 641 003, email: directorplanning@tnau.ac.in, phone: 0422- 6611566.

Keywords: System for Rice Intensification, Dr. G.Kathiresan, Director (Planning & Monitoring, Tamil Nadu Agricultural University MORE IN: Agriculture | Sci-Tech

Millers‘ convenience derails procurement of Jagdalpur paddy THURSDAY, 03 JANUARY 2013 18:55 ,STAFF REPORTER | JAGDALPUR ,HITS: 37

The paddy procurement procedure in the Jagdalpur district has come to a screeching halt. Due to the slow process of paddy lifting from the centres there was an overflowing amount of paddy at the procurement centres, resulting in a jam-like situation.

Even though information and notices were issued on time, by the officials of MARKFED, the mill owners of the region continue to lift paddy as per their own convenience. The slow paddy procurement process has greatly added

26

to the miseries of the farmers as they are now forced to wait for days to sell their produce. Some farmers of the region were also seen de-husking their produce at the procurement centres itself.

Even though a large number of mill owners had registered for the process, not even the half of the millers have signed contracts and a few millers have initiated the picking of paddy as well. The overflowing of the paddy at the procurement centres have slowly emerged as the biggest hurdle in the process in the Jalgdalpur district. According to the officials of the District Cooperative Banks, due to the stalled process of paddy lifting at procurement centres at Kolchurr, Tokapal and Sonarpal, the paddy has been piling up. As the paddy continues to lie uncovered under the sky, the fear of theft and rotting is rising amongst the farmers. Refuting all the reports, marketing officer RB Singh stated that procurement as well as the lifting procedure of the paddy at the centres is moving forward smoothly.

OSU to create rice with higher levels of vitamin B1 Jan. 3, 2013Oregon State University OSU aims to create rice with higher levels of vitamin B1 to make it more nutritious and at the same time, resistant to two crop-damaging diseases.

Oregon State University aims to create rice with higher levels of vitamin B1 to make it more nutritious and at the same time, resistant to two crop-damaging diseases.If the efforts are successful, it could mean higher yields for rice producers and a reduced use of pesticides.

Research shows vitamin B1, also known as thiamine, can boost the immune system of plants, including rice, cucumbers and tobacco. OSU's researchers are hoping that sustained accumulation of thiamine can make rice immune to bacterial leaf blight and rice blast, which cause significant yield losses in Southeast Asia, the world's top rice-growing region."Literature suggests that if we boost vitamin B1 we may be able to enhance resistance to diseases most harmful to rice," said Aymeric Goyer, a plant biologist with the OSU Extension Service.

At OSU's Hermiston Agricultural Research and Extension Center, Goyer will grow rice that over-expresses genes that synthesize vitamin B1. Within 10 to 12 months, he'll see if the leaves contain higher-than-normal amounts of vitamin B1 and if the plants resist diseases.Goyer will also see if the rice grain itself contains more thiamine, which is present only in low amounts in white rice.In areas of the world where white rice is the cornerstone of most diets, thiamine deficiencies are common.

Thiamine helps create acids for digestion, supports carbohydrate metabolism and is essential for the overall health of the nervous system."We have the potential to make more nutritious rice while helping improve yields and find an alternative to pesticides," said Goyer.The research is funded by Grand Challenges Explorations, an initiative of the Bill & Melinda Gates Foundation. Pamela Ronald from the University of California, Davis is a collaborator with Goyer on the grant.

27

4th January,2013 Pakistan Basmati Rice Exports Decline Fifty Percent Due to Higher Input Costs, Competition with India By news desk on January 03,2013 Pakistan's basmati rice export declined by about 53% to 239,764 tons ( valuing about $233 million) during July 2012 to December 2012, from 509,904 tons (valuing about $440 million) in the same period of last year, Rice Exporters Association of Pakistan (REAP) reported.

The chairman of the REAP expressed the serious concern on the huge decline in basmati rice exports, saying it is due to the higher input costs in Pakistan which is causing the nation to lose destination markets to lower priced Indian basmati rice., and urged the government to take appropriate measures to improve market competitiveness. The chairman notes that a recent Qatar tender was awarded to India instead of Pakistan due to lower India rice prices. He says the price is Pakistani basmati rice increased 15% in the second half of the year due to higher electricity and gas costs.

The chairman of REAP also requested to government to take appropriate action against the exporters, who are dumping basmati rice to increase the price in local markets. He also requested to government to develop new rice varieties to overcome the problem of declining basmati rice (PK-386) yields.

Southeast Asia Rice Exports Will Underpin Global Rice Market in Coming Decade, Says USDA By news desk on January 03,2013 Southeast Asia‘s rice surplus has grown in the last three decades and will continue to underpin the world rice market in the coming decade until 2021, says the U.S. Department of Agriculture (USDA).

The USDA says that increase in rice yield in the region coupled with scope to expand rice acreage in Burma and Cambodia will not only help satisfy the import

28

needs of Indonesia, the Philippines, and Malaysia, but also serve large import markets outside the region in the coming decade.

According to the USDA, growth in rice production in Southeast Asia is projected to slow down in the coming decade, growing by about 11.3 million tons (milled basis) or about 1% from 2011 to 2021, compared with an increase of 16.6 million tons or 1.6% during 2000-10. However, rice consumption growth is also expected to slow down in the coming decade.

The USDA projects rice consumption in the region will grow by about 8 million tons by 2021 (annual demand growth of about 0.8%), compared with an increase of about 12.5 million tons in the previous decade (annual demand growth of about 1.4%). This would help average net exports from the region to grow by about 14.5 million tons or 2.6% per year, says the USDA. The dominance of Southeast Asia in the global rice market will likely increase competition for the U.S. and other high quality rice producers in the coming decade as Vietnam and other Southeast nations join Thailand in selling high quality rice, comparable in quality with the long grain rice grown in the U.S, says the USDA

India Government Urged to Cut Fertilizer Subsidies, Develop Stable Export Policy for Rice Exports By news desk on January 03,2013 The chairman of the Commission for Agriculture Costs and Prices (CACP) has urged the Indian government to reduce fertilizer subsidies in the 2013-14 Budget, and form a stable export policy to benefit the agriculture sector.

In the pre-Budget meeting held yesterday, the CACP chairman said that food and fertilizer subsidy may grow to Rs.200,000 crore (about $36.7 billion) in the FY 2013-14, up about 47% from the previous year, if fertilizer prices are not hiked. Currently, fertilizer subsidies alone stand at about Rs.66,000 crore (about $12 billion), with rice, wheat, sugarcane and cotton accounting for over two-third of the total fertilizer subsidy.

The CACP chairman said that besides hiking fertilizer prices, the government should also consider deregulation of the urea sector to boost local production of the key fertilizer component. He also suggested that direct cash transfer to farmers in place of fertilizer subsidies could help save Rs. 20,000 crore (about $3.6 billion) by reducing corruption.

About agriculture exports, the CACP chairman said that rice farmers in the country would be benefitted by a stable export policy and that the government should use taxes to moderate exports if there is a need to do so instead of placing a blanket ban on exports of the commodity.

Retail rice prices in India have already increased about 10% (year-on-year) after the government increased the support prices by 16% last year. Higher fertilizer costs may not only hurt small rice farmers, but also push food inflation and export prices higher in 2013, say local sources.

Thailand Targets 7 Million Tons of Rice Exports under G2G Deals in 2013 By news desk on January 03,2013 The Thai government plans to sell up to 7 million tons of rice under government-to-government (G2G) deals in 2013. This is in addition to the 7.33 million tons of rice exports under G2G deals announced by the Commerce Minister in September, 2012. However, the permanent secretary for commerce did not reveal details of the planned 7 million tons of rice exports, allowing local rice traders to speculate that the target is unachievable unless the government reduces export prices.

Meanwhile, the president of the Thai Rice Exporters Association (TREA) estimates that Thailand‘s rice exports in December, 2012 reached 500,000 tons, taking the country‘s total 2012 exports to 6.9 million tons, down about 35% from the previous year‘s 10.7 million tons. TREA says that rice exports declined sharply last year due to high prices of Thai white and parboiled rice compared with Vietnam and India.

29

Bangladesh to Introduce Four New Climate-Resistant Rice Varieties in 2013 By news desk on January 03,2013 Bangladesh‘s Agriculture Ministry plans to introduce four new climate-resistant rice varieties this year to help improve rice production and reduce input costs in the country.

The Bangladesh Rice Research Institute (BRRI) has developed two of the four climate-resistant rice varieties.

The two new varieties develop by BRRI have yields of up to 6.5 tons per hectare under normal conditions, and about 4 tons per hectare yield under saline conditions. The new varieties are expected to help expand rice acreage by around 1 million hectares , helping boost production by about 4-6 million tons of rice, this year, said officials.

The remaining two new rice varieties are developed by the Bangladesh Institute of Nuclear Agriculture (Bina).

The new varieties are flood-resistant and can survive in submerged conditions for up to 25 days. The two new rice varieties mature in about 115-125 days, compared to the 140-150 days required by normal rice varieties, helping farmers to grow another crop.

Bangladesh produced about 33.8 million tons in 2011-12 and is mostly self-sufficient in rice. However, low returns and high input costs are challenges that the country‘s farmers, procurement agencies and scientists face currently.

U.S. Rice Market Perks Up As Futures Recover From Lows By news desk on January 03,2013 The U.S. cash rice market was fairly active today as both buyers and sellers finally showed interest in trading again after the long holiday break. Analysts contend that some sellers became more aggressive as the futures market declined early in the session with few smaller trades occurring at lower levels however as the market recovered near the close to end in positive territory, buyer interest perked up.

As of today, most offers from farmers could still be found around $15.00 per cwt (about $331 per ton) for January-February-March delivery although a few small lots could be found at considerably lower prices for prompt shipment while offers from resellers held steady around slightly more attractive levels.

Meanwhile, bids from most mills held steady near $14.15 per cwt (about $312 per ton) for January-FebruaryMarch delivery despite a few smaller mills bidding as much as $15.15 per cwt (about $334 per ton) for prompt delivery while bids from exporters were unchanged near $14.30 per cwt (about $321 per ton) for JanuaryFebruary-March delivery for minimum 50 lbs of head rice and it was reported that a few barges traded at this level for February delivery.

As of now, the Ohio River and Lower Mississippi River from Cairo, Illinoi down to New Orleans, Louisiana remain in good shape and most analyst expect that water levels will be sufficient through February although the Upper Mississippi at St Louis, Missouri to Cairo, Illinoi still faces low water difficulties and there are indications that by January 27th, the river will fall to levels low enough to prohibit most tow boats from operating between this part of the river.

Going forward, analysts will look to tomorrows USDA export sales numbers for signs of new demand as many believe that it will show another sale to Iran, which is a very unusual destination for U.S. rice exports and should be bullish for U.S. cash prices.

Thailand, Pakistan Rice Sellers Lower Some of Their Quotes; Vietnam, India Rice Sellers Keep Indications on Hold

30

By news desk on January 03,2013 Thai rice sellers lowered their quotes for parboiled rice by about $5 per ton to about $555 - $565 per ton today. Pak rice sellers lowered their quotes for 5% broken rice by about $5 per ton to about $410 - $420 per ton. Viet and Indian rice sellers kept their quotes unchanged.

Thai 5% rice is quoted around $545 - $555 per ton, about a $135 per ton premium over Viet 5% rice shown around $410 - $420 per ton. Indian 5% rice is quoted around $430 - $440 per ton, about a $20 per ton premium over Pak 5% rice shown around $410 - $420 per ton, down about $5 per ton from yesterday.

Thai 25% rice is quoted about $530 - $540 per ton, about a $155 per ton premium over Viet 25% rice indicated around $375 - $385 per ton. Indian 25% rice is quoted about $385 - $395 per ton, about a $35 per ton premium over Pak 25% rice shown around $350 - $360 per ton.

Thai parboiled rice is quoted around $555 - $565 per ton, down about $5 per ton from yesterday. Indian parboiled rice is quoted around $420 - $430 per ton, about a $30 per ton discount to Pak parboiled rice shown around $450 - $460 per ton.

Thai broken rice, A1 Super, is quoted about $495 - $505 per ton, about a $150 per ton premium over Viet broken rice shown around $345 - $355 per ton. Indian broken sortexed rice is quoted about $340 - $350 per ton, about $15 per ton premium over Pak broken sortexed rice indicated around $325- $335 per ton.

Oryza Afternoon Recap – Chicago Rough Rice Futures Make Last Minute Recovery to Close Slightly Higher; Beans Continue to Suffer as China Continues to Cancel Orders By news desk on January 03,2013 Chicago rough rice futures for March delivery settled 2.5 cents per cwt (about $1 per ton) higher at $15.060 per cwt (about $332 per ton). Rough rice futures finished the day slightly higher as last minute buying interest lifted prices from a multi-week low, and as the other grains continue to weigh on the market. The late session move appears to have been driven by opportunistic commercial buyers who feel that the recent move to the downside has been overdone in light of tightening U.S. supplies and firm cash offers. The other grains continue to weigh on U.S. rice prices as concerns develop over export demand as China has cancel another contracts for U.S. beans, and as the South American harvest gets underway and early indications are for good yields. Despite surging markets yesterday, outsides turned bearish as a result of the release of the latest FOMC minutes. U.S. grains finished the day mostly lower; soybeans finished the day about 0.4% lower at $13.8650 per bushel; wheat finished nearly unchanged at $7.5550 per bushel; and corn finished the day about 0.2% lower at $6.8925 per bushel.

U.S. stocks drifted back into negative territory Thursday following the Federal Reserve's latest meeting minutes and as investors took a pause following the previous session's sharp 2-percent rally, sparked by the "fiscal cliff" deal. The Dow Jones Industrial Average slipped back into the red, after surging more than 300 points in the previous session. The S&P 500 and the Nasdaq also dipped. U.S. stock markets are currently trading about 0.1% lower, Gold is trading down about 1.2%, crude oil is currently trading down about 0.3%, and the U.S. dollar is trading about 0.6% higher at about 2:00pm Chicago time.

Looking to the daily continuation chart of Chicago rough rice futures for March delivery, the market began the day on a bearish tone but a last minute rally saw prices move into positive territory. Today‘s action saw prices move to test and confirm support in the $14.900 per cwt (about $328 per ton) range. The bull‘s ability to pull prices off of these multi-week lows and close higher is often an early indication of a trend reversal, and a higher close tomorrow would be seen as further confirmation that a bottom has been put in place. Despite today‘s recovery the short and medium-term trend remains for lower prices as indicated by the negative slope of the 20-

31

day moving average, while the RSI chart points to a neutral market condition and should not affect trade direction. Today‘s overall trading range is noted as $14.900-$15.145 per cwt (about $328-$334 per ton).

Wednesday, there were 671 contracts traded, up from 621 contracts traded on Monday. Open interest – the number of contracts outstanding – on Wednesday rose by 73 contracts to 14,333.

Oryza Rice Currency Analysis for Today – Euro Suffers from Risk Aversion Amid U.S. Debt Ceiling Woes

By Oryza News on January 03,2013 U.S. dollar index was up +0.69% from the open today, when it traded at 80.387 at the close.

Euro dropped -0.92% near 1.3064 by end of day, a three-week low amid risk aversion on speculation U.S. policy makers will struggle to reach agreement on raising the nation‘s debt limit, underpinning demand for the safe assets, such as the U.S. dollar.        

Thai baht closed the day -0.20% weaker, trading at 30.39 at the close of business today.

Indian rupee was -0.24 weaker, when it traded at 54.4900 at the close of business today.

Brazilian real was +0.16% stronger than the open at today‘s close, when it ended at 2.0424 reais per dollar.

Pakistan rupee was -0.11% weaker at the close today, when it traded at 97.4790.

Vietnamese dong was unchanged from the 20840 dong per dollar open, at the close of business today.

Mexican peso retraced today, in the order of -0.25% by the close, although it remained ―strong‖ trading below the 13 peso per dollar pivot, at 12.7790 pesos per dollar by the close of business.

Chinese yuan was +0.01% stronger today at the close, when it traded at 6.2325.

Argentine peso was -0.05% weaker from the open, when it closed at 4.9262 pesos per dollar today.

A Quick Glance at World News - What the Financial Times, Wall Street Journal and New York Times Are Reporting Today By news desk on January 03,2013 Financial Times – *U.S. Republican lawmakers angry at this week‘s fiscal cliff deal will make their feelings publicly known to John Boehner Wednesday, with at least a dozen of them expected to vote against his re-election as the Speaker of the House of Representatives. *Bank of America is ramping up mortgage and corporate lending after two years of focusing on capital levels and cost cutting under chief executive Brian Moynihan. *Hillary Clinton, the U.S. secretary of state, was released from hospital in New York on Wednesday; four days after doctors discovered a blood clot in her head linked to a concussion she sustained last month. *Land prices have soared at recent auctions in Beijing in a sign that the Chinese property market is heating up again despite a long campaign by the government to cool it down. A large parcel of land in Tongzhou, a Beijing suburb, sold this week for Rmb1 billion ($160 million), 491% more than the starting price – the highest premium paid at an auction in the capital in two years. *Speculation is mounting in Venezuela that Hugo Chavez will not be able to attend the inauguration of his fourth term as president on January 10, raising fears of a constitutional crisis. *A consortium led by Posco and China Steel has agreed to take a 15% stake in a Canadian iron ore mine owned

by ArcelorMittal for $1.1 billion, as the Asian steelmakers seek greater control over their supply of raw materials. *Syria‘s uprising has claimed the lives of at least 60,000 people, according to a comprehensive U.N. study, significantly raising the estimated death toll and adding to pressure on world powers to stop the bloodshed.

32

*Warren Buffett‘s MidAmerican Energy Holdings has given the renewable energy industry a New Year boost by agreeing to spend up to $2.5 billion on what is set to be the world‘s biggest solar photovoltaic operation.

Wall Street Journal*Three days after NYT correspondent, Chris Buckley, and his family were forced to leave the mainland after he was not issued a new visa by year‘s end, the Chinese Foreign Ministry has responded to say his application is still under consideration. *An U.S. federal judge dismissed a portion of Apple Inc.'s suit against Amazon.com Inc. over the name for its digital marketplace of applications for mobile devices. *Google Inc. Executive Chairman Eric Schmidt will travel to North Korea later this month with a former U.S. politician Bill Richardson, a Democratic politician who served as U.S. ambassador to the U.N. during the Clinton administration and was governor of New Mexico from 2003 to 2011, and his longtime aide Kun Namkung. *Goldman Sachs Group Inc. handed insiders including Chief Executive Lloyd Blankfein and his top lieutenants a total of $65 million in restricted stock just hours before this year's higher tax rates took effect. *Portugal's president sent the 2013 budget to the country's highest court for review, an unusual move that highlights deepening opposition to a two-year austerity drive. *U.K. Prime Minister David Cameron called Wednesday on the Group of Eight leading nations to take bold action to drive economic growth across the world by advancing free trade, ensuring tax compliance and promoting greater transparency. *India‘s income-tax authority has opened an investigation into the authenticity of about $5 billion of U.S. Treasury bonds seized from a stockbroker in a city in southern Tamil Nadu state, two government officials familiar with the matter said Wednesday. *Afghan President Hamid Karzai is set to depart Monday for Washington to meet President Barack Obama in a visit that promises tough talks over the U.S. military presence here after the American mandate ends in 2014.

New York Times*Northeastern Republicans, long outnumbered and overshadowed in their own party nationally, erupted in fury on Wednesday after the Republican-controlled House of Representatives blocked a measure that sought to provide billions of dollars in aid to New York, New Jersey, Connecticut and other states pummeled by Hurricane Sandy. *The U.S. state‘s Health Department found in an analysis it prepared early last year that the much-debated drilling technology known as hydrofracking could be conducted safely in New York, according to a copy obtained by The NYT from an expert who did not believe it should be kept secret. *A pair of U.S. drone strikes in northwest Pakistan near the Afghan border killed 13 people Thursday, including a senior militant commander who had a truce with the Pakistani military, intelligence officials, and residents said. *General John R. Allen, the senior American commander in Afghanistan, has submitted military options to the Pentagon that would keep 6,000 to 20,000 American troops in Afghanistan after 2014, defense officials said on Wednesday. *Myanmar admitted on Wednesday that it was using aircraft to attack rebels near the border with China, a development that the U.S. described as an ―extremely troubling‖ escalation of the conflict. *A U.S. federal judge Barbara Jones in New York, dismissed claims against seven former directors of Satyam Computer Services Ltd in shareholder lawsuits stemming from the massive fraud at the heart of India's largest corporate scandal.

Oryza Overnight Recap – Chicago Rough Rice Futures Remain Under Pressure from Technical Selling; Grains Seen Lower after Steep Losses Sustained Yesterday

By Oryza News on January 03,2013

33

Chicago rough rice futures for March delivery were trading down 1.5 cents per cwt (about $0.33 cents) at $15.030 per cwt (about $331 per ton) as of 9:15am Chicago time. Despite getting off to a positive start to the overnight session prices have once again fallen into negative territory and are facing consistent overhead selling pressure. The other grains have also gotten off to a negative start to the day and as of this writing the grain complex is seen lower: soybeans are trading down about 1%, wheat is trading down about 0.3%, and corn is seen about 0.3% lower.

Looking to the intraday 15-minute chart for rough rice futures for March delivery, after initially surging 9 cents per cwt (about $2 per ton) upon the open of electronic trading last evening selling interest once again returned and have dragged prices below unchanged. During the overnight hours the market remained mostly flat and appears to have found support around the $15.030 per cwt (about $331 per ton) level. Overnight trade volume remains extremely light and as of this writing comes in at a total of just 124 contracts. The current trading range is noted as $15.015-$15.145 per cwt (about $331-$334 per ton).

U.S. stocks traded in negative territory Thursday as investors took a breather following the previous session's sharp 2-percent rally, sparked by a deal from lawmakers to avoid the "fiscal cliff." The Dow Jones Industrial Average traded in negative territory after surging more than 300 points in the previous session. The S&P 500 and the Nasdaq also held modest losses. U.S. stocks are currently trading down about 0.3%, gold is currently trading down about 0.6%, crude oil is trading down about 0.2%, and the U.S. dollar is currently trading about 0.4% higher at about 9:15am Chicago time.

Drought Still Affecting Arkansas Rice Crops By: KARK 4 News,Updated: January 3, 2013

Although it's cold out right now, extreme summer heat is still taking its toll on Arkansas farmers.

Rice farmers saw record yields, but the heat led to lower overall quality. Some rice turned out chalky and more brittle than usual, making it harder to sell. State economists met with farmers from Pulaski and Lonoke Counties on Thursday to talk solutions. "We've historically had one of the best yields worldwide in terms of rice recently that has begun to fall off," says Rice Extension Agronomist Jarrod Hardke. "That is really a major concern for Arkansas rice growers."

Experts are advising farmers to expect a 15 percent decrease in rice crops.

USA Rice Federation statement on the one-year extension of the farm bill RLINGTON, VA -- The USA Rice Federation appreciates the extraordinary efforts of lawmakers and the administration to avoid tax increases and the lapse of important policies that would choke off economic growth and jobs.The provision extending the 2008 farm bill through the 2013 crop year is vitally important to rural America and to the nation's farmers and ranchers, including US rice producers. In particular, in the absence of a new farm bill, the continuation of the direct payment program and the market access and promotion programs are of critical importance to the rice industry.

As Washington continues to work to bring the country's fiscal house in order, we urge that lawmakers include a five-year farm bill in broader deficit reduction legislation this year. Not only would a farm bill offer farmers and ranchers necessary long-term certainty but it would also yield taxpayers substantial budget savings and help tame our country's deficit spending.

34

The House and Senate Agriculture Committees have worked hard over the course of three years to develop a set of budget-saving policies that still meet the needs of rural America. Lawmakers should not allow that work to go unfinished. ―We are grateful to the leadership of the House and Senate Agriculture Committees for their work on the farm bill and on this extension,‖ USA Rice Producers‘ Group Chairman and Texas rice producer Linda Raun said. ―We particularly wish to extend our gratitude to Chairman Frank Lucas (R-OK) and Congressman Collin Peterson (D-MN) for their unwavering support to ensure that farm policy works for America's rice farmers.

With the steadfast support from these House leaders, Senate Ag Committee members John Boozman (R-AR), Thad Cochran (R-MS) and Saxby Chambliss (R-GA), and all rice state lawmakers, we believe that America's rice farmers and industry will continue to contribute to the economic and environmental well-being of our country."

The USA Rice Federation looks forward to working with members of the House and Senate Agriculture Committees and rice state Representatives and Senators in the 113th Congress to develop and pass a five year farm bill that provides effective policy for producers of all crops, in all regions.

Cases rise against Noy's rice sufficiency dream

By Camille Diola (philstar.com) | Updated January 4, 2013 - 2:30pm

The Philippines, one of the world‘s largest importers of rice, is set to end such imports altogether by producing 13.03 million tons of milled rice this year. ANTWELM

MANILA, Philippines – President Benigno Aquino III declared 2013 the National Year of Rice to intensify the campaign to achieve rice self-sufficiency this year, despite warnings by international organizations and agriculture economists that the goal is unattainable and even imprudent.

The president even promised in his year-end speech on the last day of 2012 that Filipinos can expect enough locally produced rice to feed the population soon. ―Hindi na lamang rice self-sufficiency, kundi ang pageexport ng matataas na klase ng bigas ang habol natin pagdating ng 2013,‖ he said.

Philippine Institute for Development Studies (PIDS) senior fellow Roehlano Briones, however, assessed the country‘s capability to halt rice imports and concluded that the administration‘s expensive Food Staples Sufficiency Program (FSSP) is ―too ambitious‖ to be realized. ―The rice self-sufficiency target is unlikely to be achieved, whether in 2013 or even over the course of the decade to 2020,‖ Briones said in PIDS study published late in 2012.MANILA, Philippines – President Benigno Aquino III declared 2013 the National Year of Rice to intensify the campaign to achieve rice self-sufficiency this year, despite warnings by international organizations and agriculture economists that the goal is unattainable and even imprudent.The president even promised in his year-end speech on the last day of 2012

35

that Filipinos can expect enough locally produced rice to feed the population soon.―Hindi na lamang rice selfsufficiency, kundi ang pag-eexport ng matataas na klase ng bigas ang habol natin pagdating ng 2013,‖ he said.

Philippine Institute for Development Studies (PIDS) senior fellow Roehlano Briones, however, assessed the country‘s capability to halt rice imports and concluded that the administration‘s expensive Food Staples Sufficiency Program (FSSP) is ―too ambitious‖ to be realized. ―The rice self-sufficiency target is unlikely to be achieved, whether in 2013 or even over the course of the decade to 2020,‖ Briones said in PIDS study published late in 2012.The Philippines, one of the world‘s largest importers of rice, is set to end such imports altogether by producing 13.03 million tons of milled rice in 2013— a goal, which for Briones, is simply "unrealisticVeteran business journalist Rene Pastor of New Jersey-based Philippine Commodities Digest shared Briones‘ insight, even suggesting that the move is more political than it seems.―The (rice sufficiency) target is a nice sound-bite in the Philippines … especially with mid-term elections coming up in May of next year,‖ Pastor said in a December 2012 article.

Causing poverty Economists from the University of Asia and the Pacific (UA&P) Center for Food and Agribusiness, meanwhile, partly blamed government‘s popular campaign to become an autonomous rice producer for ―persistent‖ poverty in rural areas.Calling the high allocation on rice development ―misguided,‖ the study by the think tank found that the poorest of the poor belongs to the fishing and coconut farming sectors that are barely reached by government support despite their productivity. ―The pursuit of the common good is hampered by the over-emphasis on the rice sector, which has led to lower incomes of non-rice farmers—(this is) one of the structural causes of food insecurity of the rural poor,‖ the research concludes.However, agriculture economist Rolando Dy, the lead researcher of the UA&P study, refused to comment on whether the rice drive is advantageous to the country.―The issue is a very sensitive one for Pnoy,‖ he said in an e-mail response.

Pricey fixation The World Bank, moreover, released a study on the country‘s agribusiness in 2011 saying that the Aquino administration‘s commitment to self-sufficiency makes the staple food more expensive for consumers. ―The fixation on rice self-sufficiency results in relatively higher price of rice in the domestic market compared to the world market price,‖ says the World Bank September 2011 report jointly written by National Economic Development Authority chief Artemio Balisacan and five other researchers.

Department of Agriculture‘s banner policy to mainly fund rice programs also makes farm lands costlier, the study notes.

Saying that local rice production is costlier, Briones similarly found that Filipinos will eventually find rice more expensive once government protects the country‘s own outputs by barring cheaper imports. ―Sa madaling sabi: makakamit ang sariling kasapatan sa bigas, kapalit ng lalong pagmahal nito sa pamilihan,‖ he said.

International criticism The Asian Development Bank (ADB) also recommended that the Philippines should lessen its investments in programs to boost rice production and to even export the grain by 2014.

ADB economist Bui Minh Giap said in a forum that the Aquino administration‘s bid to meet the demand in rice, a staple food, by 2013 is not only unviable but also unwise.

36

―The target will not be accomplished,‖ Giap said, supporting claims that costs of rice production costs in the Philippines are much higher than large rice producing neighbors Vietnam, Thailand and Cambodia.

Giap cited the country‘s lack of agricultural infrastructure and the slow progress in land reform programs as bottlenecks for the goal.

The Department of Agriculture, however, forged a partnership with the International Rice Research Institute (IRRI) in December to attain and sustain the desired food security.

A top scientist from the same organization, however, earlier criticized government's 2013 projection.

IRRI Deputy Director General Achim Dobermann told reporters the year before that sustainable production would not be likely due to Filipinos' rice-based eating habits and lack of infrastructure.

"Self-sufficiency by 2013 is probably somewhat ambitious," said Dobermann.

Asked to react on such findings, Agriculture Secretary Proceso Alcala told reporters that the government will still push for the self-sufficiency target amid criticisms. ―I don‘t care what they think. We are Filipinos, we know our country (better). And when I say that we will attain self-sufficiency (in 2013) … we will do our best to make that happen,‖ Alcala said.

No need to import rice for the next 8 months, at least: Bulog Linda Yulisman, The Jakarta Post, Jakarta | Headlines | Fri, January 04 2013, 11:24 AM Bulog president director Sutarto Alimoeso said on Thursday that the agency had around 2.28 million tons of rice in storage at the end of December. Bulog president director Sutarto Alimoeso said on Thursday that the agency had around 2.28 million tons of rice in storage at the end of December. This amount can meet domestic needs for more than eight months. ―The year-end stock is at a record high,‖ said Sutarto.

The outlook for an increase in rice production is positive and this has given Bulog confidence that a greater amount of the staple food can be sourced from domestic farmers. Indonesia is the world‘s third-largest rice consumer, after China and India. Last year, annual production of unmilled rice rose 4.9 percent to 69 million tons, according to the Central Statistics Agency, paving the way for Bulog to purchase around 3.65 millions tons of rice domestically, which is the agency‘s record high for local rice absorption.The Agriculture Ministry expects the unmilled rice supply to increase this year by 6 percent to 74 million tons on the back of more land being devoted to the crop and enhanced productivity.

In July last year, the government told Bulog to import up to a million tons of rice, but only 670,000 tons were actually imported — 600,000 tons from Vietnam and 70,000 tons from India.

The government has always endeavored to keep the price of rice stable. Rice is a key contributor to inflation and, historically, instability in the price of rice has led to political instability. Last year‘s stable prices are a major factor in the lowering of the inflation rate. The consumer price index rose by just over half a percent in

37

December, bringing annual inflation to a ―quite low‖ level of 4.3 percent, according to the Central Statistics Agency.

The figure was well below the government‘s target of 5.3 percent.

The agency anticipates buying over 3.5 million tons of rice from local farmers this year, down by only 1.4 percent from last year. The number of poor households, the main target of Bulog‘s distribution, has declined by 11.5 percent to 15.4 million.―The figure will be enough to meet our domestic needs. We already have more than 2 million tons stockpiled, as required by the government,‖ Sutarto said.In addition to this, the agency plans to buy another 700,000 tons from private millers, bringing the total of locally sourced rice to 4.25 million tons for the whole year.

The agency will manage about 435,000 tons of the government‘s rice reserves this year, up 9.8 percent from the previous year.Indonesia has sealed memorandums of understanding with two Southeast Asian peers on rice purchases to anticipate the possibility lower rice production.

In January last year, Indonesia signed a deal with Myanmar, which agreed to sell up to 200,000 tons of the commodity per year if necessary. Later in September, the country extended its deal with Vietnam, which will provide up to 1.5 million tons of rice as needed until 2017.Both countries have come up as alternatives sources of importation to Thailand where the price of rice has skyrocketed in the past few years.Analysts have criticized the government‘s efforts as relying too heavily on imports.

This policy could make the country more vulnerable to unmanageable and unpredictable external conditions, particularly those pertaining to climate irregularities.In another development, the government announced last year that it would reinstate Bulog‘s function as a buffer stock agency for several key commodities such as rice, sugar and soybeans. To implement the plant, the agency is developing distribution centers, dubbed Bulogmarts. The agency hopes to be operating at least 1,700 of these Bulogmarts in the next few years. Around 100 Bulogmarts were set up last year in collaboration with local cooperatives. Indonesia is the world‘s thirdlargest rice consumer after China and India.

38

39

Bulog Promises Not to Import Rice This Year Friday, 04 January, 2013 | 15:34 WIB TEMPO.CO, Jakarta: President Director of Bulog, Sutarto Alimoeso, expressed his optimism that Bulog will not have to import rice this year because of sufficient domestic supplies. Bulog projects rice production target will go up by six percent, thus increasing the early-year stock in Bulog's abundant warehouse.Sutarto said his optimism is supported by a number of indicators. Bulog's rice stocks at the end of 2012 amounted to 2.276 million tons, which will be used as an inventory for the beginning of 2013. The volume is considered able to meet the year's need. In addition, domestic rice supply is estimated at 3.550 million tons this year, while the government's rice reserves are targeted to reach 433,118 tons.

Khudori, an agriculture and livestock observer from the Indonesian Political Economics Association, doubted Bulog's optimism. He said that this is what Bulog always say at the beginning of each year. "In every start of the year, they say it would not import rice. But then they will import during a time of crisis, which is on September or October," he said when contacted yesterday.

Agriculture observer from the Bogor Institute of Agriculture, Hermanto Siregar, suggested that Bulog remain alert to internal turmoil, especially about the production of rice farmers. Bulog must also maintain the stability of market prices and prevent price speculations that may stem from no imports. "They must also ensure the distribution to non rice-producing regions."Firman Soebagyo, Vice Chairman of the Agriculture Committee at the House of Representatives, asks Bulog to ensure that rice stock is adequate before deciding not to import rice. "Letâ₏™s not use up all of last year's import as this year's entire stock," he told Tempo.

The Central Statistics Agency (BPS) recorded that from January to November 2012 Indonesia's rice imports reached 1.326 million tons, worth US$ 719 million, including premium rice. Bulog's rice imports for national

40

stock price and price balancer during 2012 is still below the import quota of one million tons. "Bulog only actualized 670 thousand tons of the target," Suryamin, Head of BPS, said yesterday.

ROSALINA | PINGIT ARIA | ANGGA SUKMA | RAHMA TW

2012 Rice Imports Below Quota Friday, 04 January, 2013 | 01:58 WIB

TEMPO Interactive, Jakarta:Rice imports by state logistics agency Bulog throughout 2012 fell below the quota set by the government. Out of one-million-ton threshold to be imported, Bulog only imported 670,000 tons of rice.Imports are completed on December 31. It’s now loading and unloading time for the ships at the port,• said Bulog CEO Sutarto Alimoeso during a conference conducted at the beginning of the year in the Bulog office on Thursday, January 3. The rice imports included 600,000 tons of rice from Vietnam and 70,000 tons from India.

Sutarto said that in July 2012 the government assigned Bulog to import one million tons of rice. However, due to the high domestic absorption rate from Bulog, the rice imports were lowered to 70,000 tons. Bulog then signed a contract with Vietnam to import 600,000 tons of rice and with India to import 120,000 tons.We didn’t receive the full import figure from India while Vietnam managed to fulfill the figure,― said Sutarto.

ROSALINA

Indonesia's Bulog says end-2012 rice stocks at 2.3 mln tonnes JAKARTA | Thu Jan 3, 2013 4:17pm IST

Jan 3 (Reuters) - Indonesia's rice stocks amounted to 2.28 million tonnes at the end of last year, state procurement body Bulog said on Thursday, buoyed by rising domestic production.

Bulog is tasked with the job of maintaining buffer rice stocks of about 2 million tonnes through imports as well as by buying from domestic farmers, which is the policy it favours.

Last year, Southeast Asia's largest economy imported 1.38 million tonnes of rice, Bulog CEO Sutarto Alimoeso told reporters.

"Our domestic rice supplies are at their highest level ever," he added.The Agriculture Ministry has forecast domestic unmilled rice output to increase 5 percent to 72.1 million tonnes in 2013, which would help cut Indonesia's reliance on imports and speed up self-sufficiency.Indonesia imports about 1-2 million tonnes of rice each year mainly from Vietnam, India or Thailand. It was self-sufficient in the grain in the early 1980s, but the crop gradually declined as farmlands were swallowed by urbanisation.President Susilo Bambang Yudhoyono has backed an ambitious plan to build a 10 million tonne annual rice surplus by 2014 to help tackle possible food inflation. The world's fourth most populous country consumes at least 2.7 million tonnes of rice a month.

In November, Bulog said it had signed a deal to buy 120,000 tonnes of rice from India for 2012 delivery.

Alimoeso said only part of this amount had been shipped last year, adding that Bulog would now scrap the rest of the purchase, especially as stocks

41

were plentiful."We won't chase them to fulfill this because Bulog's stocks are more than enough," he added.

"What is important is that India should pay a penalty." (Reporting by Fergus Jensen; Editing by Michael Taylor and Miral Fahmy)

Thailand loses crown of top rice exporter to India, Vietnam Press Trust of India | Updated On: January 04, 2013 20:49 (IST)

Bangkok: Thailand lost the crown of world's top rice exporter in 2012 with India and Vietnam emerging as major rice exporting countries.

Thailand's exports of rice dropped by 35.5 per cent to 6.9 million tonnes in 2012, from 10.7 million tonnes in 2011, Thai Rice Exporters Association said.

India exported 9.5 million tonnes while Vietnam's rice shipments stood at 7.6 million tonnes in 2012. The export value in 2012 dropped by 20 per cent to $4.73 billion, the Commerce Ministry said.

The dip has been blamed by the exporters association on the government's paddy pledging scheme, under which it has agreed to buy unhusked white rice from farmers at a fixed price of 15,000 baht ($484) per tonne and highquality jasmine at 20,000 baht per tonne.

The scheme is one of the ruling Pheu Thai Party's populist policies used to win the July 2011 general election.

Millions of tonnes of rice is lying in stockpile since the scheme began in October.

The World Bank last month estimated that Thailand would lose 115 billion baht ($3.7 billion) on last year's stockpiled rice if it was forced to sell at today's prices.

Thailand 'loses rank of world's top rice exporter' A rice supplier waits for clients in Klong Toey market, Bangkok on April 7, 2008. Thailand lost its status as the world's top rice exporter in 2012 after a scheme to boost farmer incomes saw it overtaken by rivals India and Vietnam.

AFP - Thailand lost its status as the world's top rice exporter in 2012 as a controversial scheme to boost farmer incomes saw it overtaken by India and Vietnam, an industry group said Friday.Thailand exported 6.9 million tonnes of rice last year, falling behind India which shipped 9.5 million tonnes and Vietnam which sold 7.8 million tonnes overseas, according to the Thai Rice Exporters Association.

Thai exports slumped 35 percent from the 2011 level of about 10.6 million tonnes, based on the group's figures.

"We had been the champion since 1980, for 31 years, but we lost the top spot in 2012," the group's honorary president Chookiat Ophaswongse told AFP. He said the figures from the rival exporters were based on data from Vietnam's rice industry and the US Department of Agriculture (USDA).

Prime Minister Yingluck Shinawatra's more than one-year-old policy to buy rice from farmers for 50 percent more than the market price, while popular with the rural poor has hit the competitiveness of Thai exports.

"Now Thai rice is $130-150 per tonne more expensive than our competitors. That's why our exports have fallen as no customer can buy from us," said Chookiat.

42

"Exporters should change their jobs because they can't survive. Rice has become a political issue now," he said.

The kingdom produces about 20 million tonnes of the grain annually on average, about half of which was sold overseas in the past.

Chookiat estimated that Thailand now has about 12-13 million tonnes of stock in storage and predicted that by the third quarter of 2013 this rice mountain will have grown to about 20 million tonnes.

While the scheme is putting strains on Thailand's government finances, it has been welcomed by many farmers, whose support helped sweep Yingluck to a landslide election victory last year.

Her older brother Thaksin Shinawatra, who was ousted as prime minister by royalist generals in a coup in 2006, is hugely popular in rural Thailand thanks to his populist policies while in power.

The government has said it is confident that it can find buyers for its rice on world markets at a price that will raise the living standards of its farmers. It says it has signed deals to sell rice directly to other countries.

India Blooms: "Over 177 lakh tonne rice procured" New Delhi, Jan 4 (IBNS) The government agencies have procured 177,18,657 lakh tonne rice during ongoing Kharif Marketing Season (KMS), 2012-13 As per data made available to the Ministry of Consumer Affairs, Food and Public Distribution, total rice procured till Jan 4 during current KMS, is 212762 tonnes more than the rice procured during the corresponding period of previous season.

Highest procurement has been made in Punjab, i.e. 85,56,984 tonne followed by Haryana 25,83,216 tonne, Chattisgarh 23,41,456 tonne, Andhra pardesh 17,18,052, Odisha 9,55,763 and Madhya pardesh 4,55,659 also made significant procurement.

Last Updated : 04 January 2013 at 18:30 IST

India Rice to turn bearish on higher production, low export demand According to Food and Agriculture Organisation of UN, India would have record exportable cereal surplus of almost 15.7 million tons in 2012-13, which will include 7.7 million tons of rice. The low demand from Indonesia and higher stocks will turn Indian rice bearishNEW DELHI(Commodity Online): The rice prices in India may turn bearish on higher output and low export demand from the major importing countries. India has become the largest rice exporter in the world suppressing Thailand in marketing year 2011/12 (October-September).

One of largest importer of Indian rice, Indonesia is reducing it's rice exports as there is record grain stocks at the end of 2012 in the country which may make the Indian exports in dilemma. Indonesia has around 2.28 million tons of rice in storage at the end of December. Indonesia alone has imported 70,000 tons from India in 2012. Indonesia is the world‘s third-largest rice consumer after China and India.

43

In 2011/12 marketing year India exported a record 10.4 million tons. Procurement during the season touched a record 35 million tons. The Government agencies have procured 177,18,657 lakh ton rice during ongoing Kharif Marketing Season (KMS), 2012-13.

As per data made available to the Ministry of Consumer Affairs, Food and Public Distribution, total rice procured till 04.1.2013, during current marketing season, is 212762 tons more than the rice procured during the corresponding period of previous season.

India is targeting total rice procurement of 40 million tons of rice in the year 2012-13 (October to September), up about 14.3% from around 35 million tons procured in 2011-12.

Stocks of rice in the central pool has exceeded 30 million tons as on December 1, 2012. This stock is far higher than the buffer stock and strategic requirement of 13.8 million tons on January 1 of the marketing year.

According to Food and Agriculture Organisation of UN, India would have record exportable cereal surplus of almost 15.7 million tons in 2012-13, which will include 7.7 million tons of rice. The low demand from Indonesia and higher stocks will turn Indian rice bearish.

Rice basmati rises on stockists buying PTI: NEW DELHI, JAN 04 2013, 15:47 IST

New Delhi: Rice basmati prices firmed by Rs 100 per quintal on the wholesale grains market today on stockists buying against restricted arrivals from producing region.

However, other grains moved in a narrow range in scattered deals and settled around previous levels.

Marketmen said, stockists buying against restricted arrivals from producing regions mainly led to rise in basmati prices.

In the national capital, rice basmati common and Pusa-1121 rose by Rs 100 each to Rs 6,700-7,000 and Rs 6,1006,800 per quintal respectively.

Following are today's quotations per quintal: Wheat MP (deshi) 2,050-2,250, Wheat dara (for mills) 1,560-1,565, Chakki atta (delivery) 1,565-1,570, Atta Rajdhani (10 kg) 210, Shakti bhog (10 kg) 210, Roller flour mill 830-850 (50 kg), Maida 860-890 (50 kg) and Sooji 920-950 (50kg).

Basmati rice (Lal Quila) 9,500, Shri Lal Mahal 9,500, Super Basmati Rice, 9,000, Basmati common new 6,7007,000, Rice Pusa-(1121) new 6,100-6,800, Permal raw 1,900-2,000, Permal wand 2,175-2,225, Sela 2,400-2,450 and Rice IR-8 1,550-1,600, Bajra 1,360-1,365, Jowar yellow 1,425-1,450, white 2,250-2,450, Maize 1,480-1,510, Barley 1,420-1,430, Rajasthan 1,080-1,090.

7th January, 2013

U.S. River Authority Proposes Lesser Water Supply for Texas Rice Farmers in 2013 By news desk on January 04,2013

44

Rice farmers in the drought-hit Texas region of the U.S. may not get water to irrigate their rice crop this year if the new proposal by the Lower Colorado River Authority (LCRA) to reduce the supply of water for rice farming is accepted by the board in a meeting scheduled on January 8, 2013.

In November, 2012, the Board of Directors of LCRA had said that water from the two main reservoirs (Lake Travis and Lake Buchanan) will be allowed to irrigate the rice fields if the reservoirs were 38.5% of full capacity or 775,000 acre-feet of water by March 1, 2013. However, under criticism by local politicians and due to below normal water levels in reservoirs, the LCRA now says that water will be used by rice farmers only if the reservoirs are 42% or about 845,450 acre-feet full by March 1.

The new cut-off level is almost the same as last year‘s mark of 850,000 acre-feet of water. At present, the reservoirs are about 41% full, down from around 43% in November last year.

According to LCRA projections, water levels in the reservoirs are expected to be around 38-39% full on March 1, 2013.

Texas accounts for around 3%-5% of total rice produced in the U.S. In 2012, rice farmers from the region were not supplied with water for the first time in history due to one of the severest droughts in the state. It is estimated that the water required for rice farming in the region is about three times the entire annual water consumption of Austin city, while rice farmers pay about 25 times less than what Austin city residents pay for water supply.

As a part of a long-term solution to the problems of Texas rice farmers, the LCRA is pursuing new water supply projects to create at least 100,000 acre-feet of water by 2017.

Philippines Invests $2.4 Million in ‗Soil Rejuvenation‘ Project to Boost Yields of Rice, Other Crops By news desk on January 04,2013

The Philippines will spend an initial amount of P100 million (about $2.4 million) in a ―soil rejuvenation program‖ aimed to increase yields of rice and other important crops.

The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) will partner the government in the program which is expected to begin this year. The ICRISAT chief said that a simple technology will be developed after testing and analysis of soil across the country and targeted fertilizer use will be encouraged to rejuvenate soil health on a large scale.

ICRISAT claims that it has helped increase yield of several crops by up to 30% in India‘s southern state of Karnataka using soil analysis and targeted fertilizer use. The ICRISAT chief said Luzon, the Visayas and Mindanao areas of the Philippines have been identified to carry-out the program on a pilot basis, and the entire project could take up to five years for completion.

Meanwhile, the Department of Agriculture (DA) of the Philippines has allocated P6 million (about $147,000) to promote organic rice farming in the country‘s uplands to boost overall rice production in the country.

45

Thailand Farmers Pledge 5.64 Million Tons of Rice So Far in Second Year of Mortgage Program

By Oryza News on January 04,2013

The Thailand government has purchased about 5.64 million tons rice worth about 84.5 billion baht (about $2.78 billion) under the second year of the rice mortgage program that began on October 1, 2012. The Thailand Bank for Agriculture and Agricultural Cooperatives (BAAC) officer reports that about 778,000 farmers have so far participated in second term of scheme.

BAAC plans to increase its capital by about 10 billion baht (about $33 million), boosting its capital ratio to 10%, according to local media. The state-owned BAAC is exempted from some rules imposed on commercial banks by the Bank of Thailand, including the 8.5% capital adequacy ratio required of commercial banks.

Thailand total rice exports for 2012 are estimated to total about 7 million tons (worth about $4.73 billion), down about 30% year-on-year in tonnage terms and 20% in terms of value. Thailand‘s Foreign Trade Department reports that the nation shipped about 1.7 million tons in 2012 through government-to-government (G2G) deals.

Thailand Total 2012 White Rice Exports Reach 5 Million Tons, Down 39.5% from 2011 By news desk on January 04,2013

Thailand‘s total white rice exports in 2012 have reached over 5 million tons, down about 39.5% from around 8.3 million tons of white rice exports in 2011, according to the Thai Rice Exporters Association (TREA). Rice exports recovered in the last month of 2012, reaching about 350,658 tons, up about 15% from about 300,000 tons exported in December, 2011.

The export figures have been verified by the Board of Trade of Thailand and exclude Thai Hommali rice and rice exports through the border.

Thai Hommali rice exports in 2012 are estimated at around 1.6 to 2 million tons, which suggests Thailand‘s total rice exports last year reached around 6.6 to 7 million tons, down about 38% from the previous year record exports of around 10.7 million tons.

After being the top rice exporter for decades, Thailand dropped to the third place among rice exporters in 2012 mainly because of the high prices due to the government rice mortgage program and increased competition from India. Under the program, the government purchased rice from farmers at prices about 40% higher than market prices, pushing average Thai rice export prices up by at least 16% to about $685 per ton.

Thai rice exports are expected to bounce to about 8.5 million tons in 2013, helping the country regain its top rice exporter status. However, local traders say that the two top rice exporters of

46

2012, India and Vietnam, are likely to continue selling rice at competitive prices in 2013 as well, which may hurt Thai rice exports for the second year in a row unless the government sells rice from its swelling stockpile at a loss.

U.S. Rice Buyers Come Off Price Ideas Despite Declining Export Sales By news desk on January 04,2013

The U.S. cash rice market was somewhat active again today as buyers showed willingness to come off their price ideas after the futures market recovered from the lows made yesterday however most sellers remain on the sidelines waiting for higher prices. As of now, analysts believe that most farmers who would have sold at the current market price have already and that the majority of those holding out are waiting until prices get closer to $15.55 per cwt (about $343 per ton) on the farm before they thinking about selling their rice.

As of today, most offers from farmers head steady near $15.00 per cwt (about $331 per ton) for JanuaryFebruary-March delivery for 50 lbs of head rice although a few small lots were offered as low as $14.50 per cwt (about $320 per ton) while offers from resellers increased to levels comparable to offers from most farmers.

Meanwhile, bids from most mills increased to around $14.30 per cwt (about $315 per ton) for JanuaryFebruary-March delivery while bids from exporters held steady near similar levels. There continue to be reports a few smaller mills bidding as high as $15.15 per cwt (about $334 per ton) for prompt delivery although this generated limited selling interest. There were reports, however, of rice trading as high as $15.00 per cwt (about $331 per ton) for prompt delivery of 55 lbs of head rice.

In the meantime, today the USDA reported that for the week ending on December 27th, U.S. rice exporters sold 53,300 tons, which was 45% lower than last week and 44% lower than the prior 4-week average, with the primary destinations including: 19,800 tons to Mexico, 13,700 tons to Japan, 10,900 tons to Costa Rica, 6,500 tons to South Korea, and 1,500 tons to Haiti.

U.S. rice exporters shipped 52,500 tons, which was 24% lower than last week and 46% lower than the prior 4week average. The primary destinations included: 13,300 tons to Nicaragua, 8,200 tons to El Salvador, 5,500 tons to Guatemala, 5,300 tons to South Korea, and 4,400 tons to Costa Rica.

Oryza Afternoon Recap – Chicago Rough Rice Futures Rally to Finish Week with Slight Gain Despite Sharply Lower Grains By news desk on January 04,2013

Chicago rough rice futures for March delivery settled 22.5 cents per cwt (about $5 per ton) higher at $15.285 per cwt (about $337 per ton). Rough rice futures finished the day firmly higher but off of session highs as early buyers appear to have jumped the gun and rallied price prematurely. Late week buying interest was enough to erase losses sustained Monday-Midday Thursday pushing the market slightly above breakeven for the week.

Today‘s impressive gains were made despite a second consecutive day of bearish pressure from the other grains. Softness in the U.S. grains continues to be led by a dimming outlook for U.S. bean prices as South American weather forecasts appear promising and as foreign demand remains questionable. U.S. grains finished the day sharply lower; soybeans finished the day about 1.4% lower at $13.6725 per bushel; wheat finished down about 1.1% at $7.4725 per bushel; and corn finished the day about 1.3% lower at $6.8025 per bushel.

U.S. stocks edged higher across the board Friday, on track for their best one-week gains in over a year, following a better-than-expected ISM non-manufacturing index and a monthly government jobs report that showed gradual improvement in the labor market. The Dow Jones Industrial Average rose after closing lower in the previous session. The blue-chip index has been trading in a narrow 45-point range. The S&P 500 and the Nasdaq also traded in positive territory. U.S. stock markets are currently trading about 0.2% higher, Gold is

47

trading down about 1.1%, crude oil is currently trading up about 0.1%, and the U.S. dollar is trading about 0.1% higher at about 2:00pm Chicago time.

Looking to the daily continuation chart of Chicago rough rice futures for March delivery, today‘s action has confirmed yesterday‘s reversal pattern and appears to indicate that the market has indeed put in a bottom at the nearby low of $14.900 per cwt (about $328 per ton). Although the current move looks promising market action remains in bearish territory, between the lower Bollinger band and the 20-day moving average which are noted at $15.029 and $15.491 per cwt (about $331-$342 per ton) respectively. Further, nearby resistance is noted at $15.438 per cwt (about $340 per ton) provided by the 50-day moving average. Today‘s rally was enough to push the market to a 2 cent per cwt (about $0.44 per ton) gain on the week, moving from $15.265 per cwt (about $336 per ton) on Friday December 28 to its close of $15.285 per cwt (about $337 per ton) today. Today‘s trading range is noted as $15.050-$15.345 per cwt (about $332-$338 per ton).

Thursday, there were 1,022 contracts traded, up from 671 contracts traded on Wednesday. Open interest – the number of contracts outstanding – on Thursday rose by 137 contracts to 14,470.

USDA today reported in the week ending December 27, U.S. rice exporters sold 55,300 MT, down 45% from the previous week and 44% from the prior 4-week average, including 19,800 MT to Mexico, 13,700 MT to Japan, 10,900 MT to Costa Rica, 6,500 MT to South Korea, and 1,500 MT to Haiti. During the same week U.S. exporters shipped 52,500 MT, down 24% from the previous week and 46% from the prior 4-week average, including 13,300 MT to Nicaragua, 8,200 MT to El Salvador, 5,500 MT to Guatemala, 5,300 MT to South Korea, and 4,400 MT to Costa Rica.

A Quick Glance at World News - What the Financial Times, Wall Street Journal and New York Times Are Reporting Today By news desk on January 04,2013 Financial Times – *The U.S. has ended a sweeping antitrust investigation of Google without imposing any sanctions on its core search business, even as the U.S. internet company negotiates more extensive changes to its business practices with regulators in Europe. *Venezuelan President Hugo Chavez is still suffering from a ―severe‖ respiratory infection that has hindered his breathing as he struggles to recover from cancer surgery in Cuba, the government said on Thursday. *Boeing on Thursday expressed confidence its factories and supply chain would cope with ambitious plans to increase aircraft production, as it announced it had just exceeded its guidance by delivering 601 jets to customers in 2012. *Buzzfeed, a fast-growing social news website that publishes everything from funny pictures of cats to longform reporting on the U.S. presidential race, has secured $19.3 million in funding to bulk up its original editorial content and expand internationally. *Hormel Foods will acquire Skippy, the number-two peanut butter brand in the U.S., from Unilever for $700 million, as it seeks to expand beyond its traditional meat business and into international markets. *Transocean, the offshore drilling contractor that owned and operated the Deepwater Horizon rig that sank in the Gulf of Mexico in 2010, has agreed a $1.4 billion settlement with the U.S. Department of Justice to resolve civil and criminal claims against it. *France‘s President, François Hollande, facing a grim economic outlook and stung by recent attacks on its tax and industrial policies, has promised a flurry of reforms in an attempt to convince a doubtful electorate that it is up to the task of fixing the country‘s ills.

48

*Shinzo Abe, Japan‘s prime minister, has sent a special envoy to South Korea in an effort to improve bilateral ties that had become strained over disputed islands in the Sea of Japan.

Wall Street Journal *The head of HTC Corporation said the beleaguered Taiwanese Smartphone maker did not market their products aggressively enough last years, but vowed to win consumers back by developing more innovative products. *China imposed fines and penalties totaling 353 million yuan ($56 million) on six South Korean and Taiwanese, LG Display Co., Samsung Electronics Co., Innolux Corp., AU Optronics Corp., Chungwa Picture Tubes Ltd. and HannStar Display Corp., makers of liquid-crystal display screens for price fixing, following a six-year investigation and similar actions by the E.U., South Korea and the U.S. *Minutes released Thursday of the Fed's December 11-12 policy meeting showed that officials were divided.

Some wanted to continue the QE3 programs through the end of 2013, others wanted to end them well before then and a minority wanted to halt the programs right away. *Indonesia's foreign minister will travel to Myanmar next week to examine conditions in Rakhine, the restive western state where ethnic violence has led to an exodus of refugees seeking asylum across Southeast Asia. *The Securities and Exchange Commission has wrapped up its investigation into possible insider trading by a former top executive at Warren Buffett's Berkshire Hathaway Inc. and has decided not to take action, the executive's lawyer said Thursday. *Indian authorities, moving swiftly to assuage public anger, filed formal murder charges against five men alleged to have gang-raped and killed a student on a bus in the capital in December. *A U.S. drone strike in a Pakistan border region killed the leader of a Pakistan militant group accused of cooperating with Afghan Taliban fighters in attacks on U.S. troops in Afghanistan, officials said Thursday. *India's capital markets regulator has rejected offers by Reliance Industries Ltd. and 12 other companies to settle allegations of insider trading in the shares of Reliance Petroleum Ltd. before it was merged with its parent Reliance Industries in 2009.

New York Times*The driller whose floating Deepwater Horizon oilrig blew out in 2010, causing a massive oil spill, has agreed to settle civil and criminal claims with the federal government for $1.4 billion, the Justice Department announced Thursday. *Loans to Irish households fell again in November although at a less pronounced rate than a month earlier, reducing the annual decline to 3.6% from 3.7%, central bank data showed. *Hassan Nasrallah, the leader of Hezbollah, openly urged the Lebanese government on Thursday to take a more active role in finding a political solution to the civil war in neighboring Syria and to open its border to refugees to avert further bloodshed. *Banks will get more time to build up cash buffers to protect against market shocks under a rule change that could help free up credit for struggling economies, a European regulatory source said. As the Basel Committee, made up of banking supervisors from nearly 30 countries, is expected to announce the revision on Sunday to its "liquidity coverage" ratio or LCR, part of efforts to make banks less likely to need taxpayer help again in a crisis. *Wegelin & Co, the oldest Swiss private bank, said on Thursday it would shut its doors permanently after more than 2 1/2 centuries, following its guilty plea to charges of helping wealthy Americans evade taxes through secret accounts. *The Egyptian government on Thursday remained mired in a dispute between the Muslim Brotherhood, the country‘s leading Islamist movement, and the UAE, which this week said that it had arrested several Egyptians accused of forming a Brotherhood cell, stealing state secrets and conspiring with Brotherhood leaders in Egypt.

49

River Authority could leave rice farms dry It may shut off water to 3 grain-producing counties

By Matthew Tresaugue, Mike Glenn | February 22, 2012 | Updated: February 23, 2012 7:08a

Rice growers have come to expect certain things from the coastal plain near Matagorda Bay: Sun, rich soil and abundant water.After Texas' driest year on record, however, they may be without water for the first time.The Lower Colorado River Authority, which manages the river from just above Austin to the bay, will decide March 1 whether to withhold water from one of the most fertile granaries in the nation. The decision would affect Colorado, Matagorda and Wharton counties, which produce 5 percent of the U.S. rice crop.

Despite recent rainfall, the river authority may have no choice but to cut off the farmers. The Highland Lakes, two large reservoirs near Austin, must hold a combined 850,000 acre-feet of water by next week before the growers' share can be released, under a drought emergency plan now in effect.

As of Wednesday, the lakes had 830,000 acre-feet, 41 percent of capacity.L.G. Raun, a third-generation rice farmer in Wharton County, said he does not expect a release from the river authority even if the levels at Lakes Buchanan and Travis are near the key marker.

"It really does not matter," Raun said of the rain and rising lake levels. "It will be zero water released for irrigation."

Rice farmers are the largest water users in the Colorado River basin. Their supply, however, is interruptible during dry times, unlike the shares for cities and industry.

Some growers said they can produce a fraction of their usual crop with groundwater this year, but digging wells is too expensive for most. While irrigated rice farming began in the lower basin in 1885, it was a high-risk endeavor until the LCRA built the Highland Lakes to provide a reliable supply of water in the 1930s.

Not enough for all

The LCRA now must deal with several straws in the river, including thirsty cities, power plants, recreationrelated businesses along the lakes and commercial coastal fisheries. The state projects the population of the lower Colorado basin to double to 2.8 million people by 2060, and it is becoming clear that there is not enough water to meet everyone's needs.Those who live and work along the Highland Lakes, for example, have criticized the LCRA for releasing too much water from the reservoirs for farmers.

On Wednesday, the LCRA approved a long-range management plan that would cap the availability of water for agricultural purposes. The river authority had provided growers with an unlimited supply of water when the lakes were full and all other demands were met.

Over the past decade, farmers, including those who grow row crops, hay and turf grass, have used between 199,000 acre-feet and 442,000 acre-feet a year from the Colorado.

One-acre foot, equal to 326,000 gallons, is enough to serve two typical Texas families for a year.

"We understand," said Matagorda County rice farmer Mike Burnside. "We're all in this drought together. " Could affect 4,000 jobs The timing, however, is particularly bad for rice farmers, who typically plant in dry ground in March and April before flooding their fields to help the crop grow. They get two harvests a year.

Burnside, who plants 1,000 acres under normal conditions, is hoping crop insurance will help keep his business afloat. Even then, he said the water restrictions would impact other related businesses, such as fertilizer, seeding and milling companies.

"Who suffers the most is the infrastructure," he said. "We are not going to be purchasing from them."

50

Larry Falconer, an agricultural economist at Texas A&M University in Corpus Christi, said that rice production and other related industries provide more than 4,000 jobs in Colorado, Matagorda and Wharton counties. The three counties, which have a total population of nearly 100,000 people, are among the poorest in the state.

"They will still grow some rice," Falconer said, "but most of the acreage is serviced by the LCRA." The rising lake levels are reason for optimism, but below-normal rainfall is forecast through June.

Raun, the Wharton County farmer, said he had never seen as little rainfall as last year, when the area got 15 inches, well below its usual 40 to 55.

"It was a very, very significant drought this past year," he said. "We just had no help from any rainfall whatsoever."

Stop rice smuggling, farmers tell gov‘t Philippine Daily Inquirer 8:39 pm | Monday, January 7th, 2013 ROSALES, Pangasinan—After the smuggling of pork and chicken has eased, unscrupulous businessmen have shifted to bring in rice illegally, prompting local rice traders, millers and farmers to appeal to the government to act decisively to stop the activity.

Rosendo So, chair of the partylist group Abono, said rampant rice smuggling had resulted in lower demand and decline in the prices of locally grown rice.

He said Congress had noted the public perception that the country has become a ―center of rice smuggling,‖ with illegal shipments of Indian and Vietnamese rice held at the Subic Bay Freeport and the port of Legazpi City last year.

Citing documents from the Bureau of Customs, So said the smuggling of rice, mostly from China, had also been reported in ports in Mindanao and the Visayas, where the staple is misdeclared slag (waste metal), wooden panels, tiles or used clothes. ―The smuggled rice [unloaded] in Mindanao and Cebu are repacked and taken to Metro Manila and Bulacan markets, where they are marketed as local produce. But we all know that Cebu does not produce rice, so where do those rice shipments come from?‖ said So, who owns rice and corn farms and runs a fertilizer distribution firm in Pangasinan.

Because of rampant rice smuggling, farmers fear that prices for locally produced grains would drop further. ―Millers are not buying because they cannot compete with the sheer volume of smuggled rice that has been flooding the market,‖ So said.

He said he and Cagayan Rep. Juan Ponce ―Jack‖ Enrile Jr. met recently with a group of rice traders, millers and farmers, who complained that unabated rice smuggling was gravely affecting their businesses and production.

Sacks of smuggled rice entering the country through Mindanao are reportedly shipped to Luzon and sold by unscrupulous traders for P1,200 a sack, way below the prevailing price of P1,400 for locally milled grains.

If the government fails to immediately stop rice smuggling, local traders and millers would be forced not to buy palay (unhusked or unmilled rice) that would be harvested by farmers this summer due to lower market demand, he said. ―Traders and millers have complained that they cannot compete with unscrupulous traders. Worse, they cannot buy palay at P17.50 a kilogram this coming harvest time because they still have plenty of rice stocks, which they bought last season. So, who will now buy palay harvested by our farmers?‖ So said. ―And if the prices of rice would continue to plunge, certainly, local rice production will collapse,‖ he said.Yolanda Sotelo, Inquirer Northern Luzon

51

DA still aiming for rice self-sufficiency in 2013 January 7, 2013 3:27pm Despite earlier expecting rice production to reach 20.04 million metric tons (MT) this year, the Department of Agriculture has stuck to its target output of 21.12 million MT, which would be enough to feed the nation for the whole year and make the Philippines self-sufficient in its main staple. ―Now that we reached record levels in rice production, it will be easier for us to reach our target volume for the year,‖ Agriculture Rice Program Director Dante Delima said in an interview Monday.

He added that total paddy rice production likely reached 18 million MT in 2012, slightly above the Department's projection of 17.8 million MT, though the Bureau of Agricultural Statistics has yet to release official figures.

To help reach sufficiency, the DA recently partnered with the International Rice Research Institute (IRRI) for the production and distribution of high-quality, stress-resistant seeds that can adapt to climate change; the prioritization of the development of new and modern technologies to expand current production areas; and the dissemination of best agricultural practices and support tools, including skills-training for extension and field workers.

The two agencies also plan to strengthen alliances with public and private networks to solidify the Philippines' competitiveness in rice against other rice-producing nations.

The government estimates it will need P84.2 billion in total to finance the rice sufficiency program until 2016, beginning with P31.11 billion for 2013, then P22.73 billion for 2014, P17.54 billion for 2015 and P12.82 billion for 2016. — BM, GMA News

Rice exporters decry new measure 

Published: 7/01/2013 at 12:00 AM,Newspaper section: Business Exporters are warning that the Commerce Ministry's plan to include white rice on the list of standard export commodities will likely turn into yet one more hardship for them this year.

The fresh requirement means all shipments of white rice in various grades such as 100%, 5% and 10% must be verified by the Office of Commodity Standards (OCS).

The measure has previously applied only to 10

52

crops including Hom Mali rice.

"This will mean higher expenses and more time in complying with export procedures due to the lengthy bureaucratic system," said a source.

Hom Mali was the only rice variety put on the list in 2001 by the Commerce Ministry in order to preserve the quality of the premium grain in the export market.

Shipments of white rice are normally inspected and verified by the rice inspection committee of the Board of Trade (BoT) before getting export documents from the Customs Department.

The new requirement is expected to be applied in April, and exporters said the change will not only take away the BoT's role but also increase the power of the OCS in regulating rice exports.

The rice inspection committee was assigned by the Commerce Ministry 57 years ago to monitor the quality of all rice exports including Hom Mali to assure the quality of grain received by foreign buyers.

However, widespread adulterated Hom Mali rice in some Asian markets led the ministry to beef up measures, and the grain was categorised as a standard export commodity in 2002, leaving the inspection and verification to the OCS. "The ball is now in the authorities' hands," the source said.

"This could lead to consignment delays or asking for hush money to speed up the verification process."

But Tikhumporn Natvaratat, deputy director-general of the Foreign Trade Department, said putting white rice on the standard list is aimed at protecting the Thai grain's quality.

The tighter measure will prevent attempts by traders to adulterate Thai rice with substandard rice from neighbouring countries to gain profit when the Asean Economic Community liberalises regional trade.

Mr Tikhumporn said the additional process only includes tighter inspection from authorised surveyors and approvals from the OCS. "Exporters are worried the change will worsen the export situation," said Wanlop Pichpongsa, secretary-general of the Thai Rice Exporters Association (TREA) and deputy managing of Capital Rice Trading, one of Thailand's leading rice exporters.

"Exporters feel the outlook will not be better than last year in view of the enormous supply in the market, especially from Thailand."

The slow global market plus rising stock amassed from the government's rice pledging scheme will likely affect rice exports for another year.

In 2012, rice exports totalled 6.9 million tonnes, down by 30%.

The TREA forecasts private companies will ship between six and 6.5 million tonnes of rice this year not including rice sales by the government.

It also expects a fragile global rice market this year.

China, a major buyer of Thai rice, is forecast to increase its rice production to 143 million tonnes from 140 million tonnes, reducing its need for imports.

The two largest rice exporters _ India and Vietnam _ plan to sell more rice this year, while Myanmar and Cambodia will ship 1.5 million tonnes and 1 million tonnes, respectively.

53

Traders are expected to closely watch how the Thai government manages its huge stockpile amid concerns that rice will be sold at low prices that jeopardise the market.

By December, 1.01 million tons of rice and rice products had been exported,‖ he said. ―If that rate continues for the next three months, we will reach 1.2 million tons—the highest amount of exports in 46 years.‖ Remarking that while most rice exports go to India and China, Mandalay-based rice merchant Myo That said, ―Exporting to China is increasing due to its more convenient transportation routes.‖ Burmese rice is also exported to Indonesia, Bangladesh, Singapore, the Philippines, Russia and several African countries.

According to official data, 1.176 million tons of rice was exported in 1964-65, but that amount was down to just 0.196 million tons in 1973-74.

From 1974 to 1988—during the height of Gen. Ne Win‘s disastrous isolationist policy known as the ―Burmese Way to Socialism‖—rice exports varied between as low as 0.166 tons and a maximum of 0.787 tons.

India may lose top slot as rice exporter in 2013 NEW DELHI, JAN 6: India may lose global leadership in the rice market in 2013 as shipments are likely to slide by 30 per cent to 7 million tonnes due to weak prices and surplus grain in Thailand, according to government advisory body CACP. India had emerged as the world‘s largest rice exporter in 2012 beating its Asian counterpart Thailand with shipment of around 10 million tonnes. The country was at the third slot in 2011, it said. ―I feel India should not be exporting more than 7 million tonnes this year,‖ Commission for Agriculture Costs and Prices (CACP) Chairman Ashok Gulati told PTI. Rice shipments from the country could slowdown because of shrinking export profit margin, he said. ―Our margins would take a hit with rise in the minimum support price of paddy and if global prices weaken due to aggressive exports from Thailand and Vietnam,‖ Gulati said.

The world rice market is 35 million tonnes. Shipments from Thailand are expected to rise as the country has surplus stock of 12 million tonnes of the grain, he added.

On wheat, the CACP chief said India is expected to double exports to 7-8 million tonnes in 2013, as against an estimated 4 million tonnes last year. ―Wheat exports were 2.9 million tonnes during January- September of 2012. Expecting another 1 million tonnes export to undertake during fag end of last year, taking total wheat export to 4 million tonnes,‖ Gulati said.

Sufficient domestic supply and better global prices would prompt private players to aggressively export wheat this year, while more stocks from central pool can be shipped if the government acts quickly, he said.

In September, government lifted the ban on rice and wheat exports after it was convinced that the central pool has sufficient stocks to meet the demand of PDS and the proposed food security bill.

India has sufficient rice and wheat stocks due to bumper output. Last year, their output was at record 104.32 million tonnes and 93.90 million tonnes, respectively.

Keywords: India may lose top spot, global rice market, shipments may slide, weak prices and surplus grain in Thailand, government advisory body, Commission for Agriculture Costs and Prices, CACP

54

Liberia: Govt. Drops Taxes On Rice, Cement 7 JANUARY 2013 President Ellen Johnson Sirleaf on Friday, January 4, issued with immediate effect Executive Order Nos. 45 and 46, suspending tariffs on two of the country leading essential communities: rice and cement.

The Executive Mansion said Executive Order No. 45, titled "Extension of Executive Order No. 19, Suspension of Tariff on Rice," states that the Government of Liberia, in its desire to continue bringing relief to the public, is extending Executive Order No. 19, suspending the import tariff on rice as classified under tariff Nos. 1006.30.00 (in packing of more than 5kg or in bulk); 1006.30.00 (in packing of at least 5kg); and 1006.40.00 (broken rice) under the Revenue Code of Liberia Act 2000 with immediate effect.

Explaining the suspension, the Executive Order states that the Government conducted an assessment and evaluation of the causes of increases in the price of strategic commodities, and recognized the need to curb the continuous increases in the price of rice, the country's staple, to make it affordable for public purchase.

Previous Executive Orders, Nos. 11 and 19 also suspended import tariff on rice to correct this particular situation.

Under Executive Order No. 46, titled "Re-Instituting the Suspension of the Protective Tariff on Cement," the Government, in the interest of national reconstruction and development, re-institutes a suspension of the US$2 protective tariff per 50kg bag of Portland cement imposed under the Revenue Code of Liberia, tariff No. 25.23.

To encourage the establishment of local industries to supply goods to the general public, the Government granted certain incentives to them, including CEMENCO, for the production of cement.Under the earlier Executive Order No. 31, the Government re-imposed a suspension on the US$2 protective tariff, as required under the Revenue Code of Liberia tariff No. 25.23, for a 50kg bag of Portland cement used for construction.Executive Order No. 31 has expired, the new Order states, but the need still exists to encourage local industries to supply cement to the general public at reasonable prices.The Government also recognizes the need to protect the consuming public by mitigating the adverse effect from the global price increase in certain strategic commodities, including cement, the cost of which continues to rise on the market to the disadvantage of the consumers and the national reconstruction

8th January,2013

Fate of rice farmers to be determined at special LCRA meeting By: Jess Mitchell Rain may be in the forecast, but that doesn't mean it‘s going to help Central Texas out of the drought.

The LCRA board will hold a special meeting Tuesday to discuss the current drought conditions and emergency relief. The issue at center stage is whether or not rice farmers downstream will be cut-off for a second year.

According to LCRA, the lake levels haven't moved much over the past year. Together, Lake Travis and Lake Buchanan are about 41 percent full. The National Oceanic and Atmospheric Association's most recent threemonth outlook predicts the drought will likely persist or get worse by March.Water experts say the only solution is to change our ways."In the long-term were going to have to rethink the way we supply water we're going to

55

have to become a water-efficient economy and we're not anywhere close,‖ environmental activist Paul Robbins said.

Another possible long-term solution is a reservoir. In the southeast part of the state, there are threenew water reservoirs that could be built to benefit rice farmers, but the LCRA still has to sign off the decision, which would allow for rain water and river runoff to be used.

Rice farmers meet to discuss industry opportunities Posted: Jan 08, 2013 9:09 AM PSTUpdated: Jan 08, 2013 9:10 AM PST

By Theresa Schmidt -

Louisiana rice farmers are trying to get Kellogg's to approve a new variety of rice for its popular Rice Krispies cereal.

Rice farmers met in Welsh on Tuesday morning to discuss the latest in research aimed at helping their industry.

The Caffey variety of rice is believed to be more resistant to blast disease which reached almost epidemic proportions last year.

Dr. Steve Linscombe with the LSU AgCenter is the director of the rice research station.

"As far as Kellogg's is concerned, they must approve it before they'll begin purchasing it. And it's not an easy procedure to go through. They've got to go through some lab procedures, but ultimately, they have to have enough rice to actually run it through one of their plants in the case of Rice Krispies and make a batch of Rice Krispies, so that's kind of where we're at with one of our new varieties," Linscombe said.

Rice farmers also heard about the Farm Bill which was extended by Congress, which means certain payments they get to cover losses they face will continue.

We'll have more from the meeting on later editions.

Copyright 2013 KPLC. All rights reserved

Demand for US rice increasing in Japan 

Jan. 8, 2013USA Rice Federation,Japan was the second-largest export market for U.S. rice in 2011.

U.S. medium-grain has been promoted in Japan as a new type of rice that can be used as an ingredient for various menu items. This concept is novel in Japan, where Japanese varieties of short-grain are consumed as a staple food.

The third of four Simultaneous-Buy-Sell (SBS) tenders for U.S. medium-grain rice scheduled during the Japanese fiscal year, April 2012 to March 2013, was held here Dec. 18. A total of 9,238 tons of U.S. medium-grain rice has been successfully bid during these three tenders -- a dramatic increase over previous years. By comparison, the SBS import volumes for U.S. medium-grain were limited to only 38 tons each year in 2008 and 2009. The SBS tenders allow

commercial Japanese trading companies to purchase imported rice for their domestic customers. One more tender is scheduled in early 2013.

56

U.S. medium-grain has been promoted in Japan as a new type of rice that can be used as an ingredient for various menu items. This concept is novel in Japan, where Japanese varieties of short-grain are consumed as a staple food.

Focused promotional efforts aimed at the Japanese market in recent years have increased awareness of the versatility of U.S. medium-grain. Foodservice operators are recognizing the advantages of using U.S. medium-grain for menu items such as fried rice, curry and risotto. The Bintje restaurant in Tokyo is currently featuring three soup menus using U.S. medium-grain, which the owner says is the only variety that imparts the light texture she prefers in her dishes.

The 2012 crop rice will be arriving this month and a number of foodservice companies will be using it for the first time this year. This increased availability will allow more consumers to try U.S. medium-grain rice.

Japan was the second-largest export market for U.S. rice in 2011 at nearly 376,000 metric tons, valued at $303.4 million.

China Rice Imports Unsettle Market Enduring Shift in Supply/Demand, or a Profitable Trade?,By CAROLYN CUI In the global rice market, a big and surprising buyer has emerged: China.

For decades, China's booming rice production enabled it to sell far more rice than it bought. But the world's biggest consumer of the grain has become a major importer.

Agence France-Presse/Getty

Images Shoppers in Hefei, China, buying rice. Some analysts say that demand for rice is outpacing supply, a trend that would keep prices high.

In 2012, the country bought a record 2.6 million tons of milled rice, according to the U.S. Department of Agriculture. That was a sharp acceleration of a trend started in 2011, when China bought 575,000 tons. China had been a net importer of rice in just four of the previous 50 years.

The move has caused confusion and debate within the rice industry as analysts and traders try to determine the reason behind the sudden demand and what it may mean for food prices and the global economy.

Some analysts said they believe the buying spree is being driven by soaring demand from Chinese consumers. They say that even though China has bolstered production for nine years in a row, it isn't enough to feed its population. If true, the purchases may be the beginning of a major, enduring shift in the global rice market. They say this could spark worries about whether there is enough of the staple to go around, keeping prices elevated."If this year's pace continues, the concern is whether the rest of the world will be able to make

57

up for the shortage of China's rice demand," said Cheng Fang, a senior economist at the United Nation's Food and Agriculture Organization, or FAO. Others suggest there is a simpler reason. They say prices for rice set by the Chinese government are much higher than equivalent grades on the global market. That is creating a profitable trade for Chinese buyers who scoop up the rice from places such as Vietnam, Pakistan and India and then sell it at higher prices at home.

The trade has become more profitable in recent months. In mid-December, the average import cost for Vietnamese rice was about $410 a ton, and similar rice could be sold in China for about $635 a ton, traders said.

"You've essentially got two split markets," where farmers sell to the government but consumers buy from overseas, said Thomas Pugh, a commodities economist at Capital Economics, a London-based research firm.

As a result, a lot of the government-purchased rice has been stockpiled, instead of being processed and consumed, he said. Once the price gap narrows, the imports will fall back.

Whichever argument is correct has big implications for rice prices. If the demand is driven by rising consumption, the shift could propel rice prices higher over the next few years or decades, analysts said. If the purchases are a response to government pricing policies, it could leave global prices vulnerable should those policies reverse.

For now, prices are most often set between governments and large merchants. In the U.S., the rice-futures contract has been moving in a narrow range for the past year, largely because China doesn't buy rice from the U.S. Some U.S. rice farmers have noticed and are pushing the USDA and Chinese authorities to allow U.S. rice to be sold in China.

The direction of prices is important because rice is the main staple of more than half the world's population, making its price a focus of attention for world economists.

A rise in rice prices also tends to drive up prices of other grains such as wheat and corn.

Rice is the main staple of more than half of the world's population, making its price a focus of attention.

In 2008, a spike in rice prices triggered price increases in other major grains, which led to a global food crisis, sparking riots and political turmoil in many countries.

58

Most rice-consuming countries are big producers, too, leaving the global trade at just a small fraction of total production. In 2012, only 37.3 million tons of rice changed hands, representing 7.7% of global supply, FAO said. China consumes about 140 million tons a year, so any swing in its trade would have a huge impact.

Some analysts at the FAO are trying to get a better read on China's rice stockpiles. They say the rising imports, and high domestic prices, suggest that stockpiles may not be as high as previously thought.

The rising imports have caused the FAO to question its own estimate of China's rice inventories. Currently, the group projects that China will have 93.7 million tons of rice in storage at the end of September. This would be enough to feed China for 8.5 months—the highest on record.

"We think the estimate is probably too high," Mr. Fang said, adding that the FAO is working with the Chinese government and will revise the data after conducting field surveys and analyses. There is no official data on China's grain stockpiles, as much is hoarded by individual farmers and difficult to count.

Data from the U.S. Department of Agriculture also suggest that buying is partly driven by a fundamental need for more rice. The department estimates that China's demand will exceed production by 1 million tons in 2013, leading to another year of big imports next year. By the end of the July-June season, it sees China's ending stocks at 45.85 million tons, or less than four months' supply.

DA: Rice-production target for 2013 still 21 MMT BUOYED by last year‘s improved output, the Department of Agriculture (DA) has decided to keep its riceproduction target for 2013 at 21.12 million metric tons (MMT).

Agriculture Secretary Proceso J. Alcala said that while the official tally is being finalized, data indicate increased rice yields in 2012.―We will [likely] hit what we had projected—18 MMT—[for] the year 2012. We could even surpass [the figure]. [This] means that when we review our road map, we [will see that we] are on the right track,‖ Alcala said.Dante Delima, director of the DA‘s rice program, said the 2012 results bode well for the country‘s rice self-sufficiency program.―Now that we reached record-levels in rice production [again], it will be easier for us to reach our target volume for the year,‖ Delima said.The department is setting aside P84.2 billion for the rice self-sufficiency program until 2016, according to the program director.For 2013, P31.11 billion is required; for 2014, P22.73 billion; for 2015, P17.54 billion; and for 2016, P12.82 billion.

Delima said the DA will work closely with the International Rice Research Institute in producing and distributing high-quality and improved rice seeds that are stress-resistant and able to adapt to climate change.

They will also develop new and modern farming systems and technologies that would help expand current production areas with consideration to the ill-effects of changing weather patterns. Best agricultural practices and other support tools, like skills training for extension and field workers, will be promoted.

Alcala said that only about 3,000 hectares of rice fields affected by Typhoon Pablo (international code name Bopha) cannot be planted immediately. ―Our equipment are already in the affected areas, and the rehabilitation of the rice paddies are now ongoing,‖ he said

59

Adoption of hybrid seeds to help raise rice productivity However, currently out of total annual rice output in India only 3% is produced through hybrid seeds Dilip Kumar Jha / Mumbai Jan 08, 2013, 12:58 IST Rice output in India can be raised at least by 15-20% by increasing use of hybrid seed which currently stands at much lower than the technologically advanced seeds used normally in other agri crops, a Rabobank study said.

Out of total annual rice output in India at around 99 million tonnes (USDA estimates for 2012-13 season), only 3% is produced through hybrid seeds. The remaining quantity comes through breeding of conventional seeds only. Since the genetically modified Bacillus thuringiensis (Bt) rice is not allowed for commercialization in India, scientists and technocrats would have to focus only on improved variety of hybrid seeds to raise productivity. ―The primary focus for rice research should be on developing hybrids with improved productivity and acceptable cooking quality requirements. Hybrid rice has a potential to raise production between 15-20%,‖ the study said.

The existing guidelines mandate any hybrid seed to be able to deliver at least 10% higher output than the normal conventional seeds in that category. Some of the circulating hybrid rice seeds, however, delivery over 10% of additional output on favourable climatic condition.Comparing India‘s presence in hybrid rice with China, the study said that the world‘s largest producer has made great strides in rice production by undertaking hybrid rice cultivation in a major way. Currently, almost half of China‘s total area under rice cultivation is under hybrid varieties, and a similar approach could also be taken in India. The Indian government is already focusing on hybrid rice cultivation in the eastern states and needs to extend this practice to the rest of the country.

Percentage of hybrid in select commodities in India Hybrid seed use of tatal Crop consumption (%) 90-95 Cotton 60 Corn 3 Rice Pearl 80 millet 95-100 Sunflower Currently, hybrids are very limited to the northern and eastern parts of India due to the nature of the grain, which is not preferred in many parts of the country. In order to expand the market for hybrid rice, companies need to invest in research to develop hybrids suitable for western and southern India. Some of the ‗must have‘ factors for entering and expanding India‘s presence in hybrid paddy are high yield advantage over other varieties, good genetic purity, suitability for a wider geographical area and resistance to biotic and abiotic stresses.

The initial research for vegetables and oilseeds has shown excellent results in fruits and vegetables such as okra, bottle guard, watermelon, musk melons, tomatoes etc. Going forward, there could be an immense scope for developing hybrids for some novelty vegetables, such as cherry tomatoes, baby corn, lettuce and asparagus.

Therefore, private companies should have access to advanced hybrids or else they will need to focus their research on developing hybrids with tolerance to viral infections. The same is true for oilseeds, and continuous

60

effort towards productivity / quality improvement is needed for developing superior quality hybrids in the future.

Large seed producing companies including Bayer Crop Science, Dow Agro Sciences, Pioneer, Monsanto and Syngenta are currently active in both upstream technology and downstream distribution activities in the Indian seed market. These companies have strong research base with high spends on research and development (R&D) operations for new traits development, and a good germplasm base of their own.

The study suggests that MNCs in India should continue to focus on acquiring domestic companies with a good local germplasm base and good distribution strength in the seeds space, but they should also be on the lookout for agrochemical companies strong in developing new chemistries.

15:32 January 08, 2013

Vietnam aims for 7.5 million tonnes rice exportthis year Vietnamese rice exporters are aiming to export 7.5 million tonnes of ricein 2013, said the Vietnam Food Association (VFA).Rice exporters are likely to export 1.4 million tonnes in the first quarter with lower annual production compared to last year,) reported.At a conference in Ho Chi Minh City yesterday, VFA forecast a tighter global rice market this year particularly in Asia due to high supply and low demand.The US Department of Agriculture predicts global rice trade will reach 36.12 million tonnes this year—a reduction of 6.22 percent over the previous year.―Fewer contracts in the first quarter of 2013 would make it a difficult year for Vietnamese exporters,‖ said VFA president Truong Thanh Phong.The winter-spring crop harvest is expected to take place one month earlier in February and the country‘s traditional markets including the Philippines and Indonesia are increasing their own rice production, said Phong.Phong said 71 percent of Vietnamese rice consumers will come from Asia and about 21 to 23 percent from Africa.Nguyen Van Tien, director of An Giang import-export company, said if localrice exporters could guarantee product quality opportunities may emerge in new markets like Japan.VFA suggested that the Ministry of Industry and Trade step up trade promotion in African countries and strengthen negotiations with its 2012‘s largest rice importer China.

09:42 January 08, 2013

Myanmar exports over 1 mln tons of rice in firstnine months of FY 2012-13 Myanmar exported 1.01 million tons of rice and rice products in the firstnine months of the fiscal year 201213, official daily New Light of Myanmar reported Saturday.The record will be put on exceeding that of 1995-96 and 2001- 2002 fiscal years if the export of rice continues in remaining three months (Jan-March) of the fiscal year 2012-13, and it will be the largest volume of riceexport in 46 years, according to Commerce Minister U Win Myint at the meeting to purchase reserve rice and rice market development in Nay Pyi Taw.Rice will be purchased as quickly as possible for reserve stockpiling so as to prevent declining of price of rice, he said.

Meanwhile, the workshops and seminars at Myanmar rice mills and farming machinery shows will be held for sales of rice mills and machinery to the farmers at reasonable price.Indonesia has proposed to buy 300,000 tons of rice from Myanmar inaddition to the 200,000 tons, according to earlier report.From 2001-2002 to 2005-06, Myanmar exported a substantial amount ofrice to the Indonesian market. But after 200506, rice export to Indonesia was almost none.According to statistics, in the nine months' period (AprilDecember) of the fiscal year 2011-12, Myanmar exported only 2,125 tons of rice toIndonesia.

61

Traders dub rally in rice ‗unjustified‘ OUR CORRESPONDENT,KARNAL, JAN 7: An unexpected rally in the market pushed aromatic and sharbati rice prices up by Rs 200-450 a quintal on Monday, while PR varieties ruled firm on good buying interest.Amit Chandna, proprietor of Hanuman Rice Trading Company, told Business Line that despite a low domestic demand at present, rice prices are going upwards.Following low paddy arrivals of aromatic varieties and frantic buying by the exporters, millers are quoting higher rates, said Amit Chandna.Though, sentiments are largely positive at present, the market‘s future is uncertain, he said.Traders, in general, say that the rally is unjustified as it is not backed by fundamental factors.In the physical market, Pusa-1121 (steam) went up by Rs 400 and sold at Rs 7,200-7,300 a quintal while Pusa-1121 (sela) went for Rs 6,250, Rs 450 up. Price of pure basmati (raw) increased by Rs 200 and quoted at Rs 8,200. Duplicate basmati (steam) traded Rs 300 up at Rs 5,800-5,900.Sharbati (steam) up by Rs 200 and quoted at Rs 4,500 while Sharbati (sela) improved by Rs 225 at Rs 4,400.PR varieties remained unchanged at their previous levels. PR-11 (sela) sold at Rs 2,550-2,650; PR-11 (raw) Rs 2,550-2,600; Permal (raw) sold at Rs 2,200-2,250 while Permal (sela) went for Rs 2,150-2,250.About 2,000 bags of PR variety arrived and sold at Rs 1,125-1,200; 1,000 bags Sharbati quoted at Rs 2,100-2,115; 1,000 bags of Sugandha 999 sold at Rs 2,6002,700.About 5,000 bags of Pusa-1121 quoted at Rs 3,000-3,250.

Keywords: unexpected rally in rice prices

Iraq tenders to buy 15,000 T basmati rice-trade ministry Reuters Middle East – Tue, Jan 8, 2013

BAGHDAD, Jan 8 (Reuters) - Iraq has issued a tender to buy a minimum of 15,000 tonnes of basmati rice of Indian and Pakistani origin, a trade ministry statement said on Tuesday.The bidding deadline is Jan. 22 and offers must remain valid until Jan. 27, the statement said.Iraq is one of the world's largest importers of rice, much of which goes to supply a massive national food ration programme.

(Reporting by Ahmed Rasheed; editing by Patrick Markey)

Madagascar Rice Seen Benefiting From Climate Warming in Study Madagascar‘s rice growers are expected to benefit from climate change as warmer weather boosts yields, French agriculture researcher Cirad said. Farmers in the island‘s highlands grow rain-fed rice at the lower limit of the crop‘s temperature tolerance, meaning a warmer climate will accelerate flowering and grain maturity, the Paris-based researcher wrote in an online report today. ―This is the opposite of what should happen in southern Asia, where rice is grown at the upper limit of its temperature tolerance and where the yields should undergo a general decline,‖ Cirad wrote.

62

Researchers at Cirad and Malagasy agronomy institute Fofifa used a computer model to simulate rice yields in Madagascar from 2010 through to 2099, according to the report. The results were ―surprising,‖ according to Cirad. ―The most pessimistic climate scenario is also that which allows for the best yields,‖ Cirad said.

In the model with the greatest climate change effects, average rice yields of 5,478 kilograms (12,077 pounds) per hectare (2.47 acres) increased by 576 kilograms, according to the report. The researchers said the study didn‘t take into account biotic limitations or violent weather events.

Stakeholders question govt move to allow rice imports Monday, 07 January 2013 23:23

By Felix Lazaro The Citizen Reporter Dar es Salaam. Just a few days after the ministry of Agriculture, Food Security and Cooperatives announced a government bid to allow importation of 60,000 tonnes of rice to check shortage, stakeholders have objected saying that the country‘s rice stockpile was sufficient.

The stakeholders -- through the exporters‘ association -- explained the move as creating loopholes for smugglers to illegally whisk rice out of the country.

Tanzania Exporters Association chief executive officer Mtemi Naluyaga questioned the rationale behind the move saying the rice stockpile has been diminishing because of the failure to contain smuggling to countries like Kenya, Southern Sudan and the Democratic Republic of Congo. ―Authorities at the borders facilitate rice smuggling, instead of preventing it,‖ Mr Naluyaga alleged.

He said under the circumstances it was difficult for the country to accurately assess how much stock was still in the country as data got distorted on purpose. Announcing the ministry‘s decision, the permanent secretary, Mr Mohammed Muya, explained the rationale behind the move as taming inflation.

However, rice business trends show that there are regions in the country that still have sufficient rice stocks as traders go to collect consignments to send to urban centres. Morogoro Regional commissioner Joel Bendera told The Citizen that his region still had its rice stockpile high. ―Even if I cannot give you the statistics on the rice stock in Morogoro region, but I can assure you that there is enough rice in my region.

That is why I tell you rice in Morogoro is not an issue,‖ said Mr Bendera.

He said his office had encouraged farmers to increase rice production in order to enhance their economic status.

He said a person just needed to visit such areas a Kilombero, Ifakara or Dakawa to see farmers busy preparing paddy farms as well as witness stockpiled rice.

In September last year the acting permanent secretary in the ministry of Agriculture, Ms Sophia Kaduma, was quoted as saying the country in 2012 season had surplus rice insisting on the importance of checking on rice smuggling to neighbouring countries.

According to her, the total country‘s rice requirement stands at 900,0000 metric tonnes annually, but in 2011/12 harvests were at 1.1 million metric tonnes.

She said the government policy was to double rice output under the six year technical co-operation between Japan and Tanzania for turning the country into a net exporter of rice come 2017.

63

Golden rice trial triggers sackings, investigation Tue, 8 Jan 2013 15:43 GMT,Source: Content Partner // SciDev.Net - Li Jiao [BEIJING] Three Chinese researchers have been fired from their positions after they co-published a study in which 24 schoolchildren in China's Hunan province were fed genetically modified(GM) rice in 2008, Chinese authorities announced last month (6 December).

Yin Shi'an from the Chinese Center for Disease Control and Prevention (CDC), Wang Yin from the Zhejiang Academy of Medical Sciences and Hu Yuming from the provincial CDC in Hunan lost their jobs for "violating regulations, scientific ethics and academic integrity", according to a statement released by the CDC. SPEED READ  Three researchers have been sacked for their role in a trial in which children were fed GM rice  The Chinese government says the trial was not approved by its biosafety committee  Critics say the researchers are being used as scapegoats to hide poor enforcement of GM regulations The three co-authored a paper together with Guangwen Tang, a researcher in a nutrition lab at Tufts University, that was published online on 1 August in The American Journal of Clinical Nutrition, and that used data from the controversial trial.

The study looked at 'golden rice' — a GM rice strain that contains higher levels of beta-carotene, a precursor for vitamin A — and found that the beta-carotene in the rice is as effective as pure beta-carotene in oil and better than that in spinach at providing vitamin A to children.

But Greenpeace East Asia expressed "alarm" in a press release over the publication of the study.

They said that the Chinese government had been informed in 2008 about the trial, when it assured Greenpeace that no GM golden rice had been imported for the trial and so it would not go ahead.

The study was based on work funded by the US Department of Agriculture, the US Institute of Diabetes and Digestive and Kidney Diseases and China's National Technology Research and Development Program.

Tufts University is investigating to see if the original study complied with Chinese, US and Tufts standards.

"As part of our review, we have convened a panel of distinguished academics from leading universities in the United States," Andrea Grossman, a spokesperson for the Tufts University Health Sciences Campus in Boston, tells SciDev.Net. "The panel's investigation is proceeding as expeditiously as possible in its effort to conduct a comprehensive and objective review."

Bao-Rong Lu, a researcher at China's Fudan University and a member of the National Biosafety Committee of China, says that the three fired researchers did not apply to the committee for approval to conduct the 2008 trial.

"The researchers did not respect Chinese regulations concerning the GM organisms [GMO] management and that's a very serious problem," he says.

Firstly, Lu says, since the researchers did not apply for permission to import the GM rice to China it was illegal to conduct the trial.

"Secondly, golden rice hasn't received a biosafety certification in China, so it is illegal to use these materials as food for the test in China," Lu tellsSciDev.Net. "China has a complete system of biosafety regulation for GMOs, including that for biosafety assessment trials.

However, not all researchers follow the regulation," he says. "Some researchers are not aware of the system and trial procedures, or scientific ethics, and unfortunately this kind of scandal happened."

Some Greenpeace members think the sackings hide a larger issue with GM research in China.

"By sacking the three individual researchers, China is dodging the bigger issues: loopholes in the regulatory systems of GMO research and the bigger question of why we need GM crops at all," says Wang Jing, a campaigner with Greenpeace East Asia. "We know enough about their negative impacts on the environment but not enough about their long-term safety for humans."

Wang says the case is another reason for China to ensure that the 21 billion yuan (around US$3.3 billion) it is investing in GM research is used wisely.

Xue Dayuan, chief biodiversity scientist at the College of Life and Environmental Sciences at the Minzu University of China, says: "The three official researchers are scapegoats".

64

China has rules, laws and policy on GM, but a lack of supervision means no researchers have to obey the rules, adds Xue.

8th January, 2013

Oryza Rice Recap – How Have Prices Performed Since Last Year? Asia Slumps and Sputters While the Americas Rally on Short Supplies

By Oryza News on January 07,2013

Comparing 5% broken rice across Asia from now to this time last year shows prices didn‘t advance in Asia despite the Thailand government‘s efforts to inflate Thai and global rice prices. Thai and Indian quotes are about unchanged and Viet and Pak quotes are down about 8% and 5% respectively. Last year at this time, Thai 5% rice was shown around $545 per ton, about a $100 per ton premium over Viet, Indian, and Pak 5% all priced around $435-450 per ton. Now, Vietnam and Pakistan are tied as the cheapest origins (at around $415 per ton) not India, like was the case last year. In 2012, Thai rice quotes fell about $25 per ton into February while the other Asian origins most stayed steadied to higher. Following this decline, Thai quotes then rallied nearly $100 per ton to over $600 per ton by May before again deflating.

On the other side of the world, U.S. quotes for 4% rice are up 12% since this time last year, rising from around $530 per ton last year to around $595 per ton this year. In early January of 2012, Uruguay and Argentina 5% rice was indicated around $560 per ton. With rice in these origins hard to come by, they were last offered in October at around $640 per ton, about a 14% rise from January.

The Thailand government is now holding an estimated 12 million tons of rice in storage with exports in 2012 down about 35% from about 10.8 million tons in 2011. Thailand‘s rice exports now account for about one-fifth of the global rice trade, down from about one-third a year or two ago. However, the uncertainty of the Thai rice scheme will continue to create a shadow of uncertainty over global rice prices this year.

The Thai government says that 1.7 million tons of 2012‘s 6.9 million tons in rice exports were government-to-government deals. However, the Thai Rice Exporters‘ Association (THEA) says that it only knows of one government-to-government deal to ship 300,000 tons in Indonesia in early 2012. FAO warns that Thailand‘s rice mortgage scheme may threaten the availability of rice and lead to a destabilizing rally in global rice prices, especially if this financial support for Thailand rice production is withdrawn. The rice mortgage scheme is costing the government an estimated 150 billion baht (about $5 billion) per harvest and domestic politics continue to be tumultuous, with the opposition party continually criticizing the government‘s scheme, however the government shows no signs of bending to that pressure and scrapping the rice mortgage scheme.

65

Besides volatility in the availability of rice and the floor price for rice in Thailand, the scheme‘s target for more government-to-government deals is also being criticized. A lower percentage of rice is traded than wheat and corn, making pricing more difficult and opaque in comparison. The Asian Development Bank (ADB) says that government-to-government deals – which Thailand is hoping to transact more of – leaves yet less rice traded in open markets thus making pricing even more opaque.

Thailand Rice Sellers Increase some of Their Quotes; Vietnam, India, Pakistan Rice Sellers Keep Indications on Hold By news desk on January 07,2013

Thai rice sellers increased their quotes for broken rice, A1 super, by about $20 per ton to about $515 - $525 per ton today. Viet, Indian, and Pak rice sellers kept their quotes unchanged.

Thai 5% rice is quoted around $545 - $555 per ton, about a $135 per ton premium over Viet 5% rice shown around $410 - $420 per ton. Indian 5% rice is quoted around $430 - $440 per ton, about a $20 per ton premium over Pak 5% rice shown around $410 - $420 per ton.

Thai 25% rice is quoted about $530 - $540 per ton, about a $155 per ton premium over Viet 25% rice indicated around $375 - $385 per ton. Indian 25% rice is quoted about $385 - $395 per ton, about a $35 per ton premium over Pak 25% rice shown around $350 - $360 per ton.

Thai parboiled rice is quoted around $555 - $565 per ton. Indian parboiled rice is quoted around $420 - $430 per ton, about a $30 per ton discount to Pak parboiled rice shown around $450 - $460 per ton.

Thai broken rice, A1 Super, is quoted about $515 - $525 per ton, up about $20 per ton from Friday and about a $170 per ton premium over Viet broken rice shown around $345 - $355 per ton. Indian broken sortexed rice is quoted about $340 - $350 per ton, about $15 per ton premium over Pak broken sortexed rice indicated around $325- $335 per ton.

Philippines Hopeful of Rice-Sufficiency in 2013, Despite Criticism By news desk on January 07,2013

Citing the increase in rice production last year, the Philippines Department of Agriculture (DA) is hopeful that the country will produce about 21.21 million tons paddy rice in 2013, up about 5% from the 20.04 million tons targeted under the rice-sufficiency goal. Last year, paddy rice production in the Philippines grew to an estimated 18 million tons, slightly above the government target of 17.8 million tons, and up about 6% from around 16.7 million tons produced in 2011.

The government plans to increase domestic paddy rice production to around 22.7 million tons by 2016, and has earmarked about P84.2 billion (about $2 billion) to fund the rice sufficiency program in the next three years. The government has also partnered with several institutes such as the International Rice Research Institute (IRRI) and the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) to improve rice yield and reduce input costs in rice farming.

However, experts from the Asian Development Bank (ADB) and other institutes have questioned the country‘s ability to continue the current growth rate of about 6% in rice production in the coming years. Last year, an ADB official said that the rice sufficiency target of the government cannot be met and having a stable import policy for rice would help the country become food

66

secure. Last week, critics called the rice-sufficiency goal of the government as poll rhetoric ahead of mid-term elections to be held in May this year.

However, the government seems undeterred by such criticism and has declared 2013 as the National Year of Rice. In his year-end speech, the President told the nation that there would be enough rice produced in 2013 to meet the entire domestic demand. In 2012, the Philippines imported just 500,000 tons of rice, down about 41% from around 850,000 tons imported in the previous year.

Oryza Exclusive: Pakistan Basmati Rice Growers Association President Speaks about Expectations from 2013, Rice Trade with India and WTO Obligations By news desk on January 07,2013

The year 2012 was particularly dampening for Pakistan‘s rice exports due to competition with India, lower exports to Iran and high domestic prices due to hoarding and high input costs. About the proposed liberalization of rice trade with India, while a group of rice exporters see it as a ―highly opportunistic‖ move which will allow the country to increase rice export revenue by around 33% to $3 billion in 2013, other groups say that it will hurt rice farmers the most.

Under pressure from various farm groups, the Pakistan government recently delayed awarding the Most Favored Nation (MFN) status to India under World Trade Organization (WTO) obligations which would have allowed rice flow from India to Pakistan and re-export of rice to other countries from Pakistan.

In this exclusive, the President of Pakistan‘s Basmati Growers Association (BGA), Choudhry Hamid Malhi, speaks about the reasons why rice production may decline this year, of concerns over rice trade with India, WTO obligations, the expectations from the New Year and the new government in 2013.

Oryza: What are your hopes and expectations from the government in 2013?

BGA President: It is election year. By the time the next govt settles in, the budget of 2013-14 would be their first priority, which has to be passed before June 30. It all depends on what support the government has from the electorate and what economic policy they are able to pursue. It is expected that they would generally follow the same course with slight variations.

Oryza: Do you think 2013 will be a good year for Pakistan basmati rice exports, or do you see the dip continuing?

BGA President: I think even the present low volumes of basmati exports would be meaningful if the export returns are higher and more efforts are made towards brand management and retail marketing.

The low rates to the farmer last year and the escalating costs of production have caused lower production. Local consumption is also picking up so the next year might not be bad for the farmer and domestic trade. Exporters need to encash the current sentiment of prices in the domestic markets, both in India and Pakistan, to market for higher returns from the international market.

Oryza: The MFN status to India has been delayed. Do you still have reservations over it?

BGA President: Farmers are only interested in protecting their livelihoods which are surely vulnerable because of the heavily subsidised agriculture products of India. A recent study has shown India subsidizes its agriculture to the tune of $55 billion.

67

Oryza: Is the delay due to opposition by rice farmers? What about WTO obligations?

BGA President: Every sector has a right to convey its reservations to the government on concerned issues and seek appropriate policy measures. Agriculture was never ever consulted in the process by the Ministry of Commerce for the last two years and nor were its reminders responded to. Farmers cannot be blamed for the present delay.

All earlier projections of a win-win situation for both countries have proved wrong: from the 85:15 [import tariffs] tilt in favour of India to the $2.25 billion annual trade [deficit] which is growing by every passing day. If you happen to visit the Wagah Border, you will find an 8-kilometer long line of 600-700 trucks on the Indian side waiting to enter Pakistan while only 8-10 trucks of mainly gypsum cross into India from Pakistan. Trade according to WTO has not just to be free but also fair. Why should Pakistan close its eyes to these facts? Farmers believe that MFN should be delayed till their concerns are addressed.

Oryza: Why are you against re-export of India rice via Pakistan?

BGA President: What is the assurance that the imports won‘t land in the domestic market, most of Afghan imports do. East Asian markets are more accessible from Indian ports [so the case of reexport to East Asia does not arise]. Traders can be based in Dubai or in India for that matter and benefit from there, why through Pakistan?

This [re-export] would be used as a tool to depress the domestic market and eventually lower returns to the farmer. This has happened in the case of cotton imports from India. A trader can switch from one item to another in a matter of days but for the farmer, it takes a year to change the cropping pattern. (By the way, rice and wheat are on the sensitive list of India.)

Oryza: Thank you.

India Rice Exports Forecast to Decline 30% in 2013 Due to Higher Prices By news desk on January 07,2013

India‘s Commission for Agriculture Costs and Prices (CACP) has said that India is unlikely to defend its status as the world‘s largest rice exporter in 2013 due to higher domestic prices and increasing competition among rice exporting nations this year.

Speaking to local sources, the CACP chairman said that India‘s total rice exports are likely to be restricted at around 7 million tons, down about 30% from an estimated 10 million tons exported in 2012. He said that domestic rice prices are expected to increase this year following the 16% hike in the minimum support price of paddy announced in 2012. This may not help India‘s rice exports in a year when Thailand is expected to offload its huge surplus of over 12 million tons of rice in the global market, he added.

India‘s rice exports are also likely to see increasing competition from Vietnam and Burma in 2013, while rice production in India is forecast to decline about 4% due to deficient rainfall in both Kharif (main) and rabi (winter) crop seasons.

Thailand was the top rice exporter for decades until it fell behind Vietnam (about 7.7 million tons) and India (about 10 million tons) in 2012 mainly due to the government rice mortgage program which made Thai rice uncompetitive in the international rice market.

Last year, Thailand‘s rice exports are estimated at around 6.9 million tons, down about 38% from a record 10.7 million tons exported in 2011. However, it is expected that Thailand‘s rice exports will bounce back in 2013, reaching about 8.5 million tons and helping the Southeast nation regain its top rice exporter status this year.

68

Liberia Extends Suspension of Tariffs on Rice Imports to Tame Food Inflation By news desk on January 07,2013

Liberia has extended the suspension of tariffs on import of rice to rein in prices of the staple in the country. An executive order issued by the President last week read, ―the Government of Liberia, in its desire to continue bringing relief to the public, is extending Executive Order No. 19, suspending the import tariff on rice as classified under tariff Nos. 1006.30.00 (in packing of more than 5kg or in bulk); 1006.30.00 (in packing of at least 5kg); and 1006.40.00 (broken rice) under the Revenue Code of Liberia Act 2000 with immediate effect.‖ Rice is a staple in Nigeria, but the country imports over half of its annual requirement of around 410,000 tons of rice from other countries. Higher import prices along with increasing demand due to the influx of refugees from Côte d‘Ivoire has caused prices to increase for over two years now.

According to the UN‘s Food and Agriculture Organization (FAO), rice prices in the country increased by up to 57% (year-on-year) in November 2011, and sources say prices continue to increase now as well.

The government had suspended tariffs on rice imports in October last year amid allegations that collusion between the government and rice traders is causing rice prices to increase.

Uruguay Rice Farmers Lose $30 Million in Last Harvest By news desk on January 07,2013

Rice farmers in Uruguay faced an estimated loss of about $30 million in the last harvest due to high production costs and low returns, according to the Rice Growers Association (ACA). A representative of the association said that most of the rice farmers in the country had to incur losses in the last harvest season and several of those are planning to shift to soybean and other crops this year.

It is estimated that water shortage in dams led to the increase in rice production costs this year.

According to the ACA, the cost of planting per hectare in the last harvest stood at a record $2,070, the highest ever on record.

Uruguay produces almost one million tons of rice annually, and over 90% of the total rice production is exported to other ccountries.Uruguay's rice acreage has grown about 15% in the last decade, but acreage declined last year by over 24% or 40,000 hectares in 2012 mainly due to high production costs and water shortages.

Burma to Export About 1.2 Million Tons Rice in 2012-13

By Oryza News on January 07,2013

69

Burma's Ministry of Commerce estimates the nation will export about 1.2 million tons of rice in

year 2012-13, the highest amount in 46 years. According to local traders, Burma‘s major rice export destinations are India and China and it is also exported rice to Indonesia, Bangladesh, Singapore, the Philippines, Russia and several African countries.

In December 2012, Japan‘s Ministry of Agriculture, Forestry and Fisheries (MAFF) met with representatives of Myanmar Rice Federation (MRF), Myanmar Agribusiness Public Corp. (MAPCO) and the Myanmar Farmers Association and had agreed to buy Sin Thwe Latt and Hmawbi rice varieties of Burma to replace some of the more expensive Thai rice imports.

Thailand Plans Quality Check for White Rice Export Consignments By news desk on January 07,2013

The Thai government is planning to place white rice shipments on the list of standard export commodities, which will make it mandatory for 100%, 5% and 10% grades of rice to be inspected by the Office of Commodity Standards (OCS) before being cleared for exports.

The move is aimed to curb adulteration of Thai rice with rice from neighboring countries such as Cambodia and Burma. According to local sources, a significant quantity of rice has moved into Thailand last year from Cambodia and other neighboring countries as the Thai government purchases rice from farmers at a price much above the market prices. Trade authorities fear that the illegal movement of rice into Thailand could shoot up once the Asean Economic Community liberalizes regional trade in 2015.

Thai Hommali rice is already on the list of standard export commodities since 2001, and the Department of Foreign Trade says that placing white rice on the list will cause no inconvenience to exporters. However, Thai rice exporters are against such proposal and say that the move will only dent the country‘s rice exports further. They add that inspection of white rice shipments will increase their expenses and cause inordinate delays often accompanied with the country‘s bureaucratic system.

U.S. Rice Sellers Look for Higher Prices as Most Buyers Hold Back Ahead of USDA Reports

By Oryza News on January 07,2013

The U.S. cash rice market was very quiet today with little trade activity as market participants await the USDA Rice Stocks report and the World Agriculture Supply and Demand Estimate, both due out this Friday. As of now, analysts believe that buyers are going to have to come off of their price ideas to get farmers to sell them their rice as many farmers with rice left to sell are in no hurry for cash as many sold their corn and beans at record or near record prices.

Farmers continue to talk of cutting rice acreage next year given the low cash prices being offered compared to other crops coupled with the quality issues many have seen this year, however some analysts believe that next year‘s acreage will be close to on par with last year's acreage, especially given the weakness seen in soybean complex over the last few months.

Most offers from farmers were today unchanged near $15.00 per cwt (about $331 per ton) for January-February-March delivery for 50 lbs of head rice while offers from resellers decreased with the futures market to slightly more attractive levels however there was very little interest at these prices.

70

Bids from most mills could still be found around to around $14.30 per cwt (about $315 per ton) for January-February-March however some continue to bid as high as $15.15 per cwt (about $334 per ton) for prompt delivery although we are told that they are finding very few sellers at this level.

Bids from exporters increased today to around $14.45 per cwt (about $319 per ton) for JanuaryFebruary delivery for 52 lbs of head rice although no trades were reported.

Going forward, analysts expect that cash prices will remain firm as sellers hold out for higher prices.

Oryza Afternoon Recap – Chicago Rough Rice Futures Close Lower on Spec Selling

By Oryza News on January 07,2013

Chicago rough rice futures for March delivery settled 5.5 cents per cwt (about $1 per ton) lower at $15.210 per cwt (about $335 per ton). Rough rice futures came under pressure today on what traders say was likely speculative selling after Friday's strong rally when prices recovered from a multi-week low reached last Thursday. Today's losses in rice were limited by support from a recovery in corn, wheat, and soy. Soybeans finished the day about 1.6% higher at $13.8850 per bushel; wheat finished up about 0.5% at $7.5125 per bushel; and corn finished the day about 0.8% higher at $6.8550 per bushel.

U.S. stocks remained in negative territory Monday, as investors took a breather following last week's sharp rally that drove the S&P 500 to its best closing level since December 2007, ahead of the fourth-quarter earnings season. The Dow Jones Industrial Average slumped after soaring more than 3% in the previous week. The S&P 500 and the Nasdaq also declined. U.S. stock markets are currently trading about 0.4% lower, Gold is trading down about 0.2%, crude oil is currently trading up about 0.1%, and the U.S. dollar is trading about 0.3% lower at about 2:00pm Chicago time.

Looking to the daily continuation chart of Chicago rough rice futures for March delivery, the market was unable to break though yesterday‘s session high of $15.345 per cwt (about $338 per ton) as the bears returned and dragged prices lower. Today‘s action has formed an inside day as the sessions price action failed to break through levels traded on Friday. The market also noted reduced trading volume suggesting today‘s action has little implication for future price direction. However prices remain in bearish territory with support not seen until the $15.000 per cwt (about $331 per ton) level provided by the lower Bollinger band. Overhead resistance is seen in the $15.430$15.470 per cwt (about $340-$341 per ton) range provided by the 20 and 50-day moving averages.

Today‘s trading range is noted as $15.180-$15.325 per cwt (about $335-$338 per ton).

Friday, there were 471 contracts traded, down from 471 contracts traded on Thursday. Open interest – the number of contracts outstanding – on Friday rose by 137 contracts to 14,470.

Oryza Rice Currency Analysis for Today – Euro Rebounds on Technical Support

By Oryza News on January 07,2013

U.S. dollar index was up -0.31% from the open today, when it traded at 80.259 at the close.

71

Euro rebound +0.33% to around 1.3112 by end of day from a 3-week low, after finding technical support from the 50-day moving average. The European Central Bank meets this week amid concern the region‘s economy is faltering.

Thai baht closed the day +0.10% stronger, trading at 30.44 at the close of business today.

Indian rupee was -0.27 weaker, when it traded at 55.2250 at the close of business today.

Brazilian real was +0.20% stronger than the open at today‘s close, when it ended at 2.0285 reais per dollar.

Pakistan rupee was +0.09% weaker at the close today, when it traded at 97.4648.

Vietnamese dong was +0.01% stronger from the 20843 dong per dollar open, at the close of business today when it traded at 20840.

Mexican peso retraced -0.28% to around 12.7763 pesos per dollar by the end of the session, continuing to hold ―strong‖ below the 13 peso per dollar pivot point.

Chinese yuan was +0.01% stronger today at the close, when it traded at 6.2298.

Argentine peso was -0.10% weaker from the open, when it closed at 4.9305 pesos per dollar today.

Oryza Overnight Recap – Chicago Rough Rice Futures Unable to Maintain Upward Momentum, Despite Firmer Grains

By Oryza News on January 07,2013

Chicago rough rice futures for March delivery were trading down 7.5 cents per cwt (about $2 per ton) at $15.210 per cwt (about $335 per ton) as of 9:25am Chicago time. After posting an impressive rally Friday the market has been unable to find follow though support and is currently seen trading lower. The other grains and soy are faring better than rice, in the attempt to recover from steep losses sustained late last week. As of this writing, soybeans are trading up about 1%, wheat is trading up about 1.4%, and corn is seen about 1.1% higher.

U.S. stocks were lower Monday, as investors took a breather following last week's sharp rally that drove the S&P 500 to its best closing level since December 2007. The Dow Jones Industrial Average slumped, after soaring more than 3 percent in the previous week. The S&P 500 and the Nasdaq also fell.U.S. stocks are currently trading down about 0.5%, gold is currently trading nearly unchanged, crude oil is trading down about 0.1%, and the U.S. dollar is currently trading unchanged at about 9:25am Chicago time.

A Quick Glance at World News - What the Financial Times, Wall Street Journal and New York Times Are Reporting Today By news desk on January 07,2013

Financial Times – *The largest U.S. banks are close to a $10 billion settlement with regulators to resolve claims that they broke rules when seizing the homes of customers who defaulted on their mortgages. JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and 10 other mortgage servicers are expected to sign up to the agreement, which will see them pay about $3.5 billion in cash to homeowners who were evicted from their properties and separately reduce the loan balances on homeowners who are currently struggling with their mortgage payments.

72

*U.S. President Barack Obama is poised to nominate Chuck Hagel as secretary of defense, setting the stage for a tough nomination fight focusing on the former Republican senator‘s views on Israel and Iran. *Sony has teamed up with BMG to bid for Parlophone and other EMI labels being sold off by Universal Music, reuniting Sony and Bertelsmann four years after they disbanded their Sony BMG joint venture. *France‘s socialist government has hinted that a replacement for its controversial 75% income tax bracket, struck down late last month by the country‘s constitutional council, may be at a lower rate but imposed for the rest of its five-year mandate, not just two years as previously proposed. *Syria‘s President Bashar al-Assad on Sunday issued a defiant call for a ―total national mobilization‖ to defeat ―terrorist‖ rebels, in a rare speech that hammered home how far a political end to the country‘s civil war lies out of reach. *Terra Firma, the private equity fund founded by Guy Hands, is planning to sell assets this year that are likely to include Odeon & UCI group, the European cinema chain, which could raise more than £1 billion. *Axa Real Estate, the property arm of the French insurer, has asked investors for £1 billion to buy buildings in the U.K. with unusually long leases, in the latest sign that the appetite for long-term property assets continues to grow. *The time for Polish austerity is over, Poland‘s central bank governor has declared, saying central Europe‘s largest economy has experienced a ―perfect slowdown‖ instead of a slump.

Wall Street Journal*Afghanistan this week plans to ask during President Hamid Karzai's Washington visit for more U.S. assistance to be channeled directly to government coffers, the country's top finance official said. *Pakistan and India traded accusations on Sunday of violating the cease-fire in the disputed northern region of Kashmir, with Islamabad accusing Indian troops of a cross-border raid that killed one of its soldiers and India charging that Pakistani shelling destroyed a home on its side. *Madison Dearborn Partners LLC is committing $250 million to privately held EVO Payments International LLC in a deal that gives the credit processor more fuel for acquisitions, said people familiar with the investment. *Egypt's president swore in 10 new cabinet appointees on Sunday, strengthening Islamists' hold on the government a day before talks with the IMF over a $4.8 billion loan to help shore up the country's weakening currency. *Palestinian President Mahmoud Abbas officially changed his government's name to "the State of Palestine" in an attempt to implement—even if only symbolically—a recent U.N. vote granting it the status of non-observer state. *U.K.'s Prime Minister David Cameron said the U.K. economy faces a tough year ahead and needs low interest rates, emphasizing the importance of the coalition government's commitment to its austerity program and ensuring low borrowing costs are passed on to businesses and households. *The presidents of Sudan and South Sudan agreed Saturday to the unconditional and speedy implementation of deals reached in September to demilitarize their shared borders and allow oil exports to flow from South Sudan's oil fields north through Sudan's pipelines, an African Union official said.

73

*Philippine army special forces and police killed 13-suspected criminals in a gun battle Sunday on the main northern island of Luzon in the latest violence to erupt in the country in the past week.

New York Times*Former New Mexico Governor Bill Richardson and Google Executive Chairman Eric Schmidt will start their controversial private mission to North Korea on Monday that may include an effort to secure the release of an imprisoned American, South Korean media reported. *The U.S. State Department says Secretary of State Hillary Rodham Clinton will return to work Monday, a little over a week after she was hospitalized with a blood clot in her head. *Russian security forces in a restive North Caucasus province on Sunday killed three militants who were suspected of planning attacks on church services during the Russian Orthodox Christmas, which is on Monday, the authorities said. *The U.S. dominates the list of places that global commercial real estate investors would prefer to put their money this year, while China has lost some luster and Turkey has added sparkle, according to a survey of international investors. *A hoax media release on Monday that said Australia and New Zealand Banking Group Ltd had withdrawn a A$1.2 billion (779.30 million pounds) loan to Whitehaven Coal Ltd sank the miner's shares by as much as 9% at one stage. *Tingye Li, an electrical engineer whose calculations in the early 1960s helped guide the development of the laser and propel the dizzying increase in the speed of fiber-optic communication, died on December 27 in Snowbird, Utah. He was 81. *The Palestinian government is in ―extreme jeopardy‖ because of a financial crisis largely caused

by Arab countries‘ failure to send hundreds of millions of dollars in promised aid, the Palestinian prime minister said Sunday.

9th January,2013

Thailand, Pakistan Rice Sellers Increase Some of Their Quotes; Vietnam, India Rice Sellers Keep Indications on Hold By news desk on January 08,2013 Thai rice sellers increased their quotes for Hommali rice by about $40 per ton to about $1,095 - $1,105 per ton today. Pak rice sellers increased their quotes for broken rice by about $5 per ton to about $330 - $340 per ton.

Viet and Indian rice sellers kept their quotes unchanged.

Thai 5% rice is quoted around $545 - $555 per ton, about a $135 per ton premium over Viet 5% rice shown around $410 - $420 per ton. Indian 5% rice is quoted around $430 - $440 per ton, about a $20 per ton premium over Pak 5% rice shown around $410 - $420 per ton.

Thai 25% rice is quoted about $530 - $540 per ton, about a $155 per ton premium over Viet 25% rice indicated around $375 - $385 per ton. Indian 25% rice is quoted about $385 - $395 per ton, about a $35 per ton premium over Pak 25% rice shown around $350 - $360 per ton.

Thai parboiled rice is quoted around $555 - $565 per ton. Indian parboiled rice is quoted around $420 - $430 per ton, about a $30 per ton discount to Pak parboiled rice shown around $450 - $460 per ton.

Thai broken rice, A1 Super, is quoted about $515 - $525 per ton, about a $170 per ton premium over Viet broken rice shown around $345 - $355 per ton. Indian broken sortexed rice is quoted about $340 - $350 per ton, about $10 per ton premium over Pak broken sortexed rice indicated around $330- $340 per ton, up about $5 per

74

ton from yesterday.

Iraq Tenders to Buy 15,000 Tons Basmati Rice Iraq is seeking to buy at least 15,000 tons of basmati rice of Indian and Pakistan origin. The last date for submissions of applications is January 22, and offers must remain valid until January 27, 2013.

Pakistan Rice Export Matrix Changing as Basmati Rice Production Dips, Says USDA Post By news desk on January 08,2013

Pakistan Rice Export Matrix Changing as Basmati Rice Production Dips, Says USDA Post The sharp decline in Pakistan‘s basmati rice exports in recent years exposes an underlying shift in the country‘s rice exports matrix from basmati to non-basmati rice, says the USDA Post in Pakistan.

Pakistan‘s basmati rice exports have declined about 25% in the last three years, from around 1.2 million tons in 2008-09 to about

900,000 tons in 2011-12. In the current marketing year 2012-13 (July to June), basmati rice exports have plunged to around 240,000 tons during July to December 2012, down about 53% from around 500,000 tons exported during the same period in the previous year.

The USDA Post says that basmati rice exports are declining due to the increasing shift by farmers from basmati to non-basmati rice. Higher yields and a shorter growing cycle of non-basmati allows for earlier planting of wheat, the country‘s main staple. The President of the Basmati Growers Association (BGA) says that low returns to farmers last year and the escalating costs of production have also contributed to the decline in basmati rice acreage which has declined about 27% over the last three years according to the Post.

While, total export volumes may not see a significant change in the coming years, the Post says that Pakistan‘s earning from rice exports may dip as Pakistan‘s basmati rice commands a premium price for its unique aromatic and taste qualities.

The USDA Post also revised downwards Pakistan's rice export estimates for 2012-13 to 3.8 million tons, down about 5% from an earlier estimate of around 4 million tons, mainly due to the estimated decline in basmati rice production and acreage. However, estimates of total rice production in 2012-13 remains unchanged at around 6.8 million tons.

India Begins 2013 with Record Rice Stockpile of 32 Million Tons; Up 8% from Last Year

75

76

India‘s rice stocks in the central pool as of January 1, 2013 stand at around 32.2 million tons, up around 8% from about 29.7 million tons on January 1, 2012, and the highest ever on record for this time of the year.

Current rice stocks are over 2.3 times the buffer norms and strategic reserve requirement for rice of around 13.8 million tons.

India began procurement of rice for the year 2012-13 (October to September) with a record carryover rice stocks of over 23 million tons on October 1, 2012. The government is targeting total rice procurement of around 40 million tons in 2012-13, and various government agencies have procured about 17.7 million tons so far.

According to government norms, paddy farmers are paid a minimum of Rs. 1,250 per quintal (about $226 per ton) for common grade paddy, and Rs. 1,280 per quintal (about $232 per ton) for high quality paddy.

At the beginning of this year, India‘s total food grain stocks also stand at record high levels of about 66.7 million tons, up about 20% from 55.5 million tons during this time last year, including wheat stocks of about 34.4 million tons, up about 33% from around 25.7 million tons recorded on January 1, 2012.

Brazil Paddy Rice Price Index Declines to $343 Per Ton

Brazil's paddy rice index continues to decline, reaching about 34.91 real per 50 kilograms (about $343 per ton) on January 7, 2013, down almost 1% from about 35.26 real per 50 kilograms (about $344 per ton) recorded on December 28, 2012. Month-on-month, the current price index is about 6% below the 37.29 real per 50

77

kilograms (about $352 per ton) recorded on December 4, 2012.

Brazil's paddy prices have been elevated due to strong demand and low supplies though government auctions from government-held stocks have helped moderate prices.

Google‘s Android to Help Cook Rice, Make 'Idlis' Using Smartphones The task of cooking rice and making several other snacks such as Idlis (a steamed rice-based snack popular in southern India) could become easier with Google‘s plans to extend its popular Android operating system (OS) for controlling home appliances including rice cookers.

Google‘s Android is one of the most popular operating systems among smartphones, and integrating the OS with rice cookers could help one cook rice with the help of smartphones. Sources say that Android-enabled rice cookers will also be able to pop-up a message on television screens at the designated time, asking for directions and choice of recipes which could be controlled by the user with the help of the TV remote.

While some believe that this would help Google collect more data to build its lucrative search business, Google calls it ―Androidification.‖ Android founder Andy Rubin said last year, ―The Android circle is getting bigger…Everything should be Androidified -- is that the word?‖ Last year also saw the launch of the first Android-controlled rice cooker by Panasonic. The Japanese company claims that rice and idlis cooked with the help of smartphones turned out to be as fluffy and tasty as ones prepared in the traditional but comparatively arduous way. Now, the reported expansion of Google‘s Android into other rice cookers may change the way millions cook across the world.

Vietnam Targets 7.5 Million Tons Rice Exports in 2013 Last year's second largest rice exporter Vietnam is targeting total rice exports of 7.5 million tons in 2013, down about 2% from an estimated 7.7 million tons exported in 2012, although this would still be the second best export figures on record.

The Vietnam Food Association (VFA) said that 2013 may be a difficult year for Vietnamese rice exporters as supply is expected to be higher and demand lower than last year. The VFA chief said that despite a tough year, the country‘s rice exporters are targeting 1.4 million tons of rice exports in the first quarter of 2013, up about 40% from around 1 million tons exported in the first quarter of 2012.

Higher production (up almost 2% from 2011 to around 26.9 million tons) and low prices in 2012 helped Vietnam‘s rice exports increase surge around 8% to about 7.7 million tons in 2012. Meanwhile, higher prices due to the Thailand government rice mortgage program caused Thailand‘s rice exports to slump 39% from around 10.7 million tons in 2011 to about 6.9 million tons in 2012. Only India with total rice exports of around 10 million tons was ahead of Vietnam in 2012 in terms of tonnage shipped.

Oryza Afternoon Recap – Chicago Rough Rice Futures Quiet Ahead of Friday‘s WASDE Update Chicago rough rice futures for March delivery settled 0.5 cents per cwt (about $0.11 per ton) lower a….t $15.205 per cwt (about $335 per ton). Rough rice futures finished the day little changed as on reduced trade volume as market participants appear prepared to await Friday‘s WASDE update. Minimal trading activity is

78

expected ahead of the report, although according to a CBOT floor trader expectations are that the report will do little to spur rice specific trade and in turn any volatility is expected to come as rice moves in sympathy for the other grains. U.S. grains finished mixed today; soybeans finished the day about 0.1% lower at $13.8650 per bushel; wheat finished down about 0.1% at $7.5050 per bushel; and corn finished the day about 0.5% higher at $6.8875 per bushel.

U.S. stocks retreated for a second session Tuesday, dragged by telecoms, as investors hesitated to jump in ahead of the fourth-quarter earnings season that will kick off with Alcoa after the closing bell. The Dow Jones Industrial Average fell after finishing in the red in the previous session. The S&P 500 and the Nasdaq also traded lower. U.S. stock markets are currently trading about 0.5% lower, Gold is trading up about 0.9%, crude oil is currently trading up about 0.1%, and the U.S. dollar is trading about 0.1% higher at about 2:00pm Chicago time.

Turning to the daily continuation chart of Chicago rough rice futures for March delivery, the market finished the day a tick lower as traders failed to show up and push prices in either direction. The majority of the session‘s activity took place in a very narrow $15.190-$15.220 per cwt (about $335-$336 per ton) trading range. Price action remains trapped in bearish territory, between support provided by the lower Bollinger band and resistance from the 20-day moving average which are noted at $14.970-$15.450 per cwt (about $330-$341 per ton) respectively. On a longer-term multi-month basis the market continues to move in a sideways trend within a wider $14.900-$16.000 per cwt (about $328-$353 per ton) range which has held since early September 2012.

Today‘s trading range is noted as $15.190-$15.285 per cwt (about $335-$337 per ton).

Monday, there were 473 contracts traded, up from 471 contracts traded on Friday. Open interest – the number of contracts outstanding – on Monday fell by 98 contracts to 14,372.

Oryza Rice Currency Analysis for Today – Brazil Real Plunges 0.7%; Euro Again Tests Support at 50-Day Moving Average

By Oryza News on January 08,2013

U.S. dollar index was up +0.12% from the open today, when it traded at 80.347 at the close.

Euro retraced -0.25% to around 1.3080 by end of day, falling the first time in three days while approaching support around the 50-day moving average of 1.2995. Speculation continues on that the European Crisis is not yet over. Despite the fact the ECB finally stepped up to the plate, bringing borrowing costs down for Spain and Italy from unsustainable levels, the latest Eurostat unemployment figures, as well as other indicators, remind the market of a bigger problem of more of a macro nature.

Thai baht closed the day +0.10% stronger, trading at 30.42 at the close of business today.

Indian rupee was +0.40 stronger, when it traded at 55.0050 at the close of business today.

Brazilian real was -0.68% weaker than the open at today‘s close, when it ended at 2.0415 reais per dollar.

Pakistan rupee was +0.04% stronger at the close today, when it traded at 97.4293.

Vietnamese dong was unchanged from the 20840 dong per dollar open, at the close of business today.

Mexican peso retraced today for a second day, in the order of -0.21% by the close, but still continuing to remain ―strong‖, trading below the 13 peso per dollar pivot, at 12.7958 pesos per dollar by the close of business.

Chinese yuan was +0.09% stronger today at the close, when it traded at 6.2241.

Argentine peso was -0.02% weaker from the open, when it closed at 4.9315 pesos per dollar today.

Oryza Overnight Recap – Chicago Rough Rice Futures Find Support from Recovering Grains

By Oryza News on January 08,2013 Chicago rough rice futures for March delivery were trading up 4 cents per cwt (about $1 cents) at $15.250 per cwt (about $336 per ton) as of 9:15am Chicago time. Rough rice futures traded slightly higher overnight after

79

being forced lower by consistent spec selling pressure was noted during yesterday‘s trading session. The other grains are seen mostly higher this morning as they continue to mount a recovery after suffering steep losses late last week. Firmer grains are providing upside support to U.S. rice future prices. As of this writing ,soybeans are trading nearly unchanged, wheat is trading up about 0.2%, and corn is seen about 0.3% higher.

U.S. stocks were in negative territory Tuesday, with investors keeping to the sidelines ahead of the fourthquarter earnings season that will kick off with Alcoa after the closing bell. The Dow Jones Industrial Average declined after finishing in the red in the previous session. The S&P 500 and the Nasdaq also edged lower. U.S. stocks are currently trading down about 0.2%, gold is currently trading up about 0.7%, crude oil is trading down about 0.1%, and the U.S. dollar is currently trading about 0.2% higher at 9:15am Chicago time.

A Quick Glance at World News - What the Financial Times, Wall Street Journal and New York Times Are Reporting Today By news desk on January 08,2013 Financial Times – *U.S. banks, BofA, Wells Fargo, JPMorgan Chase, and Citigroup, agreed to pay out more than $20 billion on Monday in two settlements to resolve claims arising from the mortgage crisis, with compensation for bad loans wiping out most of Bank of America‘s earnings for a second successive quarter. BofA said the multibilliondollar legal settlements, which total $14.1 billion, would reduce its fourth-quarter pre-tax profit by $2.7 billion. *U.S. president, Barack Obama, has announced his new national security team, tapping loyalists to oversee the continuing pursuit of terrorists, the implementation of defense budget cuts and a drawdown of U.S. military operations overseas. Shrugging off a campaign against Chuck Hagel as secretary of defense for his views on Iran and Israel, Mr Obama said the former Republican senator was the ―leader our troops deserve‖ and urged the Senate to approve him ―promptly‖. *Michael Corbat has made the first overhaul of Citigroup‘s management since he succeeded Vikram Pandit as chief executive of the bank last year. Citi said on Monday that Jamie Forese and Manuel Medina-Mora would be appointed co-presidents. Both had been thought to be in the running for the role, which was vacated by John Havens who left with Mr Pandit in a contentious reshuffle last October. *The U.S. Federal Aviation Administration on Monday said it was investigating a fire in the electrical systems of a Boeing 787 Dreamliner aircraft in Boston, in what could be a fresh complication for the troubled passenger-jet programme. *Iran‘s foreign minister on Monday reiterated his country‘s commitment to the regime in Damascus, praising a defiant speech by President Bashar al-Assad and calling on all sides to use ―the opportunity‖ to help end the crisis. *BNY Mellon has received approval in Europe to launch a central securities depository (CSD) as the regulatory push to safeguard all aspects of the trading cycle reaches into securities settlement. *Brazilian vehicle production fell for the first time in a decade last year, undermining the potential of the world‘s fourth biggest automotive market to offset weakness in developed countries. Output of cars and light commercial vehicles fell 1.9% in 2012 compared with a year earlier while production of trucks fell 40.5% and buses 25.4%. *AT&T, the largest U.S. telecommunications group, plans to extend its new 4G LTE wireless network to reach 300 million people – or 95%t of the U.S. population – by the end of next year and will ―densify‖ its network in urban areas to improve in-building and other coverage using small cells and other technologies.

Wall Street Journal*The ruler of Dubai, Sheikh Mohammed bin Rashid al Maktoum,a Persian Gulf emirate that has developed into the leading financial center in the Middle East, has quietly set up a new judicial panel to hear cases involving

80

claims against an investment vehicle owned by his son. *Silvio Berlusconi, leader of the centre right People of Liberty party in Italy, said he has forged an alliance with the Northern League party, a partnership likely to put the debate over how much more austerity Italians should endure to comply with E.U. fiscal rules into sharper focus. *U.K. Prime Minister David Cameron and his deputy, Nick Clegg, pledged to put political differences between their two parties to one side as they outlined plans Monday for the second half of their parliamentary term, including house-building measures, investment in transport infrastructure and pension reform. *Argentina has hired a private jet for President Cristina Kirchner's trip to Asia and the Middle East later this month due to the risk that creditors might try to seize her official aircraft. *The opening of Berlin's new airport has been put off for at least another year (for year 2014), causing headaches for travelers and problems for some businesses, and raising the possibility that the delays and cost overruns could cost the city's mayor his job. *Big Chinese consumer-technology companies are dominant at home, but they have struggled overseas. Now, in an attempt to change that, they are charging into Brazil and other emerging markets. *A Sri Lankan appeals court on Monday quashed a guilty verdict reached by lawmakers against the country's chief justice, Shirani Bandaranayake, in a much-criticized impeachment hearing, a move that could intensify a monthslong dispute between the island nation's Parliament and judiciary. *Turkey‘s parliament released new rules to be implemented by financial regulators, declaring, ―Those who provide untruthful, wrong or misleading information, start rumors, provide news, comment or prepare reports, or spread them with the intention of influencing prices, values of capital-markets instruments or investor decisions will be punished with two to five years in prison.‖ New York Times*The development of Alberta‘s oil sands has increased levels of cancer-causing compounds in surrounding lakes well beyond natural levels, Canadian researchers reported in a study released on Monday. In addition, they said the contamination covered a wider area than had previously been believed. *The Japanese government has summoned the Chinese ambassador to protest the presence of four Chinese maritime surveillance ships for half a day near disputed islands in the East China Sea, called Senkakus in Japanese and Diaoyu in Chinese, are controlled by Japan but also claimed by Beijing and Taiwan. *Iran‘s oil minister acknowledged for the first time on Monday that petroleum exports and sales had fallen by at least 40% over the past year, contradicting his previous denials and providing an unusual public admission that the cumulative impact of Western economic sanctions has grown more severe. *Japan‘s new conservative government announced a review of national military strategy on Monday that analysts said was aimed at offsetting China‘s growing military power and that may increase defense spending for the first time in a decade. *AngloGold Ashanti chief executive Mark Cutifani is stepping down to take over as the head of global mining giant Anglo American, the South African gold producer said on Tuesday. *Japan's Finance Minister, Taro Aso, said on Tuesday that Japan would purchase bonds issued by the euro zone's bailout fund to help foster financial stability in Eurozone. *Sears Holdings Corp. announced late Monday that CEO Louis J. D'Ambrosio is stepping next month due to health issues involving his family.

Thailand Rice Prices Increased in 2012, Defying Global Trend, Says FAO

81

By news desk on January 08,2013

Thailand was perhaps the only major rice exporting nation in 2012 to increase average rice prices for most of its rice varieties, going against the global trend when most rice exporters reduced rice prices, according to the latest report by the UN‘s Food and Agriculture Organization (FAO).

Data shows that Thailand's lower quality white rice prices in 2012 compared to 2010 rose a higher percentage than its high quality white rice.

The report says that the average price of Thai 25% rice increased about 9.6% to about $560 per ton from an average price of around $511 in 2010, compared to a 15% decline in the average price of 25% Viet rice from $467 per ton in 2011 to $397 per ton in 2012.

Average price of Pak 25% rice dropped to $396 per ton in 2012, down about 8.5% from around $433 per ton in 2011, while the average price of Indian 25% rice declined to $391 per ton in 2012, down about 4.3% from around $409 per ton recorded in 2011.

The FAO report also said that average Thai 5% rice price increased 4.5% to around $573 per ton in 2012 year-on-year, compared to about 14.4% decline in average price of Viet 5% rice to around $432 per ton. Thai broken rice, A1 Super, registered the steepest hike of around 16.3% to around $540 per ton last year, while price of Thai fragrant rice 100% increased about 3.6% to around $1,091 per ton in 2012. Average prices of Thai 100% B second grade and parboiled rice also increased 4% and 5.6% to about $588 per ton and $594 per ton respectively, the report said.

After over two decades, Thailand lost its top rice exporter status in 2012, with rice exports plummeting to around 6.9 million tons, down almost 39% from about 10.7 million tons exported in the previous year. Local

82

exporters say that the government rice mortgage program has increased domestic rice prices artificially, making Thai rice uncompetitive in the international rice market.

UNISAME asks Fahim to resolve TDAP-REAP dispute By our correspondent,Wednesday, January 09, 2013 ,From Print Edition Karachi: The Union of Small and Medium Enterprises (UNISAME) has urged Federal Commerce Minister, Makhdoom Amin Fahim, to intervene and resolve the dispute between the Trade Development Authority of Pakistan (TDAP) and the Rice Exporters Association of Pakistan (REAP) on the issue of collection of rice inspection fees by the Quality Review Committee (QRC). It is unclear whether the QRC is to collect the fees in its account or in an open QRC and REAP joint account as both are issuing contrary notices, said a press statement.

TDAP has issued an order demanding that fees be paid by pay order/demand draft or cheque in favour of the QRC and simultaneously REAP has issued a circular to its members instructing them to issue cheques favouring REAP till such time that a joint account is opened for collection of fees. President UNISAME, Zulfikar Thaver, has advised REAP not to disobey the orders of the TDAP director general who is also the chairman of QRC. Thaver has urged the commerce minister to resolve the matter as rice exporters do not know whether to issue cheques in favour of QRC or REAP. He urged Fahim to take note of the situation, which is making rice exporters uncomfortable and reflects badly on the industry. The Union has demanded the dissolution of the QRC as it serves no practical purpose and has become an impediment for rice exports as it is not eligible for pre-shipment inspection (PSI), not a third party inspection, not equipped, not recognised nor permitted by the Pakistan Standard Quality Control Authority (PSQCA) and gives rise to a conflict of interest.

The PSI is the prerogative of the buyer who nominates the PSI agency. PSI by QRC is ineffective as more often than not rice exporters have to undergo double PSI, one by the inspectors appointed by buyers and again by the QRC, which is time consuming and costly.

The Union has demanded that if the MOC cannot dissolve the QRC due to legal complications – as it has been set up under the trade policy – then it can be dissolved in the coming trade policy or amended to function as a committee to help the rice exporters to analyse the grains. Foreign buyers are questioning why the MOC is insisting on PSI and how they are expected to trust the Pakistani rice shippers when TDAP itself does not trust them and subjects them to PSI. The non basmati varieties such as 1121, 386 are more in demand. The 1121 is more costly than basmati rice because of its extra length and excellent cooking. The QRC is there to protect the mixing of non basmati rice with basmati rice but now the QRC is allowing export of 1121 and 386 as basmati rice.

UNISAME challenged the formation of the QRC from its very inception and has pointed out its shortcomings and defective structure, sources say.

LCRA votes to withold water from Texas rice farmers By: Sebastian Robertson A growing population, drought conditions and limited storage have created a perfect storm of sorts for water across the Lone Star State.On Tuesday, Lower Colorado River Authority board members made a tough decision when they voted unanimously to not release water from the Highland Lakes to farmers downstream.Southeast Texas rice farmers say the move will continue to devastate their way of life during dry

83

times."I think this will be a knockdown blow,‖ rice farmer Danny Gertson said. ―I'm hoping it won't be a knockout blow."Gertson‘s rice fields in Wharton County have been empty for the better part of a year. He said his farm produced almost no rice last year—the result of the record drought and the LCRA‘s decision last year to not release any water.What rice Gertson was able to harvest was grown using well water or irrigation."We need an awful amount of water in the next two months for there to be any amount of water available for release downstream,‖ Becky Motal LCRA General Manager said.

Danny Gertson:With a limited supply, the LCRA is looking to make the most of the water they currently have.Back in September the agency announced it was aggressively moving forward on creating reservoirs downstream.The idea is to acquire over 4,000 acres of land to build off-channel reservoirs.Three such reservoirs in Wharton, Matagorda and Colorado counties could add another 90,000 acre-feet of water supply—that's roughly one tenth of Lake Travis' capacity."To the extent that we can capture rain, in another part of the basin downstream it is going to give us more options, and a greater portfolio of water supply," Modal said.With a price tag estimated in the region of hundreds of millions of dollars and a timeline of several years, the reservoirs may be too little, too late.

The dire need for immediate help brought Wharton County farmers and officials to Austin Tuesday."This isn't just about rice farmers and wasting money on rice, it is the entire economy down there," Wharton County Judge Philip Spenrath said.

According to the U.S.A. Rice Federation, the Texas Rice industry translates to $200 million dollars for the state and thousands of jobs.But before the water flows to the farmers, it first flows through Austin, a booming metropolis, with a growing thirst and growing fear of running dry."We are keeping the entire Central Texas area on the precipice of a very bad place, so I would ask you to start thinking very seriously about the imbalance in the supply and demand that we have,‖ Austin resident Frank Harren said. ―It is no longer a reasonable position to use our only water supply to grow rice."The LCRA has left farmers hoping for a miracle to keep their farms above water.―Everyone is praying for rain out here,‖ Gertson said.According to Motal, the LCRA board will likely vote on the reservoir project next week.

Their plan to withhold water from farmers must now get the green light from the Texas Commission on Environmental Quality.

LCRA moves to restrict water to rice farmers in Texas Rice Belt Ag Commissioner reacts to water authority action,Jan. 9, 2013Logan Hawkes

The LCRA Board voted unanimously Tuesday (Jan. 8) to make the formal request to the Texas Commission on Environmental Quality for emergency powers to limit water releases for rice irrigation. 

The measure, if approved by TCEQ, will allow the water authority to withhold releases from rice farmers if the combined storage of lakes Travis and Buchanan is less than 850,000 acre-feet on March 1, instead of the minimum 775,000 acre-feet as approved by the November resolution. Texas rice farmers along the Lower Colorado River will most likely suffer another year of irrigation water shortages now that the Lower Colorado River Authority Board of Directors have voted to ask for emergency drought powers from the state that will lead to another year of reduced water releases for downriver rice farmers.

84

The LCRA Board voted unanimously Tuesday (Jan. 8) to make the formal request to the Texas Commission on Environmental Quality for emergency powers to limit water releases for rice irrigation. In a meeting last November, the Board voted 10-4 in favor of seeking TCEQ permission to release 121,500 acre-feet of water from the Highland Lakes to rice farmers in 2013 if the combined storage of lakes Travis and Buchanan, the chief reservoirs for Central Texas, is between 775,000 and 920,000 acre-feet on Jan. 1 or March 1.

The measure, if approved by TCEQ, will allow the water authority to withhold releases from rice farmers if the combined storage of lakes Travis and Buchanan is less than 850,000 acre-feet on March 1, instead of the minimum 775,000 acre-feet as approved by the November resolution. The lakes now are at 826,000 acre-feet, or 41 percent of combined capacity, with little hope of sufficient recovery by March 1 to reach the minimum capacity set by this latest action.

Rice farmers and officials with Ducks, Unlimited, a sportsmen‘s group concerned about the safety and well being of millions of waterfowl in Coastal Texas, say the new minimum set Tuesday represents a substantial loss of water needed to ―save farms‘ and to ―protect waterfowl‖.

They argue the move actually reverses the decision reached in November by increasing the minimum capacity requirement by nearly 10 percent.Texas Agriculture Commissioner Todd Staples reacted to LCRA‘s Tuesday decision to raise the water release threshold for Texas rice farmers.―We cannot ration and restrict our way to a bigger and better Texas. Solutions need to be focused on water for all needs and not restrictions for something as vital as food,‖ Staples posted in a press release. ―A crisis exists in Texas as our water capacity has failed to keep up with our growth. This situation has been compounded by the worst single-year drought on record. ―We must find a balanced solution that allows farmers to continue producing food to feed us while also providing communities with the water to sustain our families. We need to embrace conservation and develop new water supplies necessary to meet our growing population and increasing water demand.‖Staples stopped short of calling the move unfair to farmers, but urged all stake holders involved in Texas water issues to preserve the state‘s natural resources by working together to bring about successful conservation efforts and to create new ideas and technologies that will address the evolving Texas water crisis.

LCRA General Manager Becky Motal said following Tuesday‘s meeting that she was not optimistic that weather conditions would improve lake level conditions before March 1. She said the entire watershed region would require heavy rainfall of four to five inches on ―multiple occasions‖ to reach the minimum capacity level required to release water to rice farmers by March 1. Weather forecasters are calling for another drier-thannormal winter season and the prospect for another round of drought in the spring and summer growing season.

Rice Belt Production Conference is Jan. 16 Posted: Wednesday, January 9, 2013 6:00 am Special to the Journal-Spectator

85

The annual Western Rice Belt Production Conference will be held on Wednesday, Jan. 16 at the El Campo Civic Center.The conference will begin with an early bird session on guidance technology starting at 7:30 a.m.

Registration for the conference will begin at 8 a.m., with the remainder of the program to follow.

After a catered lunch, provided by area agribusiness sponsors, the program will conclude around 1:30 p.m.

Three CEUs will be offered to all pesticide applicators in attendance. CCA hours have been applied for and will be offered pending approval. This joint effort of local rice committees, The Texas A&M AgriLife Extension Service and Texas A&M AgriLife Research, will offer growers and others the opportunity to hear presentations from the top Extension and Research scientists from Texas and Louisiana as well as respected individuals from the rice industry. Topics will include the latest best management practices for insect, weed, and disease management, agronomy update, LCRA water update, outcrossing, and ag policy update.

For more information, contact the Texas AgriLife Extension office in Matagorda County at 979-245-4100 or Wharton County at 979-532-3310.

Information is also available at http://wharton.agrilife.org.

Click on Events to view a flyer for the Rice Conference. 3 CEUs (2 General and 1 IPM) for TDA Pesticide Applicators will be awarded at this event.

Asia rice demand strong for Yuba-Sutter January 09, 2013 12:00:00 AM Agriculture faces a sweet future as the middle class in China and India expands and imports more food from the United States, rice growers were told Tuesday in Yuba City."We have got a great market opportunity," said Randy Russell, who represents the California Rice Commission in Washington, DC.Russell studied public administration and economics as a university student and said farming would be his focus if he were beginning his career.

"I would double-down on agriculture," he said.Rice was the highest valued crop in Yuba-Sutter in 2011 at $228 million. In Sutter County alone, it was valued at $166.4 million.Russell said at the annual growers meeting held by the Sacramento-based rice commission that the United States is ideally positioned to feed a growing world market. India alone is projected to be home to a middle class of 1.2 billion people by 2050, Russell said.Rising values of California ag land have been linked to growing demand in China for wa nuts, almonds and pistachios grown in the state. California farm real estate was valued in 2012 at $7,200 an acre — a record high for the state and $300 more an acre above the record set in 2011.Russell, reviewing national politics, also noted that while rural America overwhelming supported Republican presidential candidate Mitt Romney, the country's changing demographic means Republicans will be a minority party unless the GOP has a new message and messengers.

George Soares, who represents the rice commission in the state capitol, spoke about the state's shifting politics.

The blue, Democratic politics of the California coast, are creeping into Sacramento and the San Joaquin valleys, he said.Registration trends in the state show Democrats stable at 44 percent while Republicans are at 29 percent and declining."Your party is disappearing," Soares said of the GOP. "I don't know that the Republicans know how to stop it."Tim Johnson, president and chief executive officer of the rice commission, said the group's tasks include making sure rice is relevant. The commission has been running radio spots for about a year on the Sacramento-based Armstrong & Getty program promoting the economic benefits rice growing brings to the region.The broadcast message has been effective, Johnson said. "You'd be amazed at the number of comments," he said.

86

Rice Stock Estimates Studied by FAO on Lack of Reliable Data

By Rudy Ruitenberg - Jan 8, 2013 10:17 PM GMT+0500

Rice-stock estimates for several countries including China may not be accurate due to a lack of reliable data on consumption and post-harvest losses, according to the United Nations‘ Food & Agriculture Organization.

The estimate for China‘s stocks may be too high, Concepcion Calpe, the FAO‘s senior rice analyst, said by phone from Rome today. The UN agency is studying the rice balance sheets of several countries as part of creating the Agricultural Market Information System, she said.

The FAO has forecast world rice stocks will climb to a record 169.8 million metric tons at the end of 2012-13 from 159.3 million tons a year earlier. Growing rice stockpiles avoided a food crisis last year even as wheat and corn prices jumped on drought in the U.S. and Russia, theWorld Food Programme said in September. ―It‘s very difficult to get any clue about the stocks,‖ Calpe said. ―Even developed countries have problems, it‘s general. FAO has very high estimates for stocks in China, and we‘re worried that this might not be the case.‖ The FAO, the U.S. Department of Agriculture and the International Grains Council all have different estimates for rice inventories, according to Calpe.―We have no idea what the stocks are,‖ Calpe said. ―Even the definition of stocks is difficult. We‘re trying through AMIS to come up with a normalized method to improve the overall balances.‖ Shared Database The Group of 20 nations agreed last year to set up AMIS as a shared database of food stocks and crop forecasts, managed by the FAO, to increase market transparency and reduce price swings for agricultural commodities.

Calpe said fewer than 10 countries, including the U.S. and the Philippines, conduct ―serious‖ surveys to keep track of rice stockpiles, while countries in Europe as well as Japan lack accurate data.Estimates indicate China‘s stockpiles have been rising for eight years as per-capita consumption of rice declines and output continues to rise, according to Calpe. The FAO‘s analysts are questioning whether this is reasonable, because keeping stocks is expensive, she said.The FAO is working with China and other AMIS countries to improve the reliability of data, including rice consumed as food, the analyst said.Rice imports into China last year by private buyers were prompted by high domestic prices, which in turn may have been the result of the government‘s policy to keep large rice stocks, according to Calpe. The estimate for Chinese rice inventories may turn out to be correct, she said.―For eight years they‘ve been stockpiling in China,‖ Calpe said. ―China definitely can afford these things, but we need to have some evidence.‖

Asia Rice-Ample supply, competing exporters push prices lower Wed Jan 9, 2013 2:19pm IST

* Supply rises in India, Vietnam * Major exporters cut prices to attract buyers

87

* India becomes world's biggest exporter

By Apornrath Phoonphongphiphat BANGKOK, Jan 9 (Reuters) - Asian rice prices fell this week as supplies far exceeded demand, with top producers India, Pakistan and Vietnam competing with each other to attract business, traders said on Wednesday.

The 5 percent broken grade Vietnamese white rice was offered at $410 to $415 per tonne, down from last week's $420.

Common Indian and Pakistani grades were offered at $425 and $410 a tonne respectively, slightly lower than the $420 to $430 range of the previous week, the traders added.

"Export demand is sluggish, as rice supplies from Pakistan are available at least $10 per tonne cheaper than Indian supplies," said a Delhi-based trader.

Thai rice prices remained at a lofty $560 per tonne due to the government intervention scheme, further reducing exporters' chances of securing deals, especially as supplies from other countries were plentiful, traders said.

Vietnamese farmers are due to start harvesting next month the winter-spring rice crop in the Mekong Delta, the biggest of three crops grown in the area.

India, which maintains an unrestricted export policy, is expected to produce 99.5 million tonnes of rice in 2012/13, slightly lower than 104.3 million in the previous crop. It also has plentiful stocks of 34.4 million tonnes at government warehouses, against a target of 8.2 million.

India has taken the rank of the world's biggest rice exporter from Thailand for the first time since 1983, traders said. India's rice exports are expected to be around 8.5 million tonnes in the year to March 2013, an official of the All India Rice Exporters' Association.

The Thai government's policy of paying farmers higher-than-market prices of 15,000 baht ($490) per tonne of paddy has pushed prices to uncompetitively high levels and sharply reduced exports, leading to a huge inventories.

Traders forecast Thailand to have exported, at best, 6.8 million tonnes in 2012, below Vietnam's estimated 7.72 million.

No official export statistics are available from the Thai commerce ministry are available, as the data was removed from the ministry's website in October 2012 and officials refused to provide information.

Traders say the government was concealing the figures to stem questions about contracts it said it had signed to sell 7.3 million tonnes of rice to foreign governments, although all the supposed buyers denied having struck any deals. ($1=30.44 Thai baht) (Additional reporting by Ratnajyoti Dutta in NEW DELHI and HANOI newsroom; Editing by Miral Fahmy)

Commodities Buzz: Philippines Eying 17% Growth In Rice Output Capital Market / 11:42 , Jan 09, 2013 The Philippines Agriculture Department is keeping the rice production target for the current year at 21.12 million metric tons, enough to make the country self-sufficient in the staple. This is approximately 17% higher than the last year. Now that we reached [again] record-levels in rice production, it will be easier for us to reach our target volume for the year, Agriculture Rice Program director Dante Delima said in an interview Monday,

88

according to media reports. Delima said pending the release of official figures from the Bureau of Agricultural Statistics, Rice production in 2012 would likely reach 18 million MT, exceeding the original forecast of 17.8 million MT. Powered by Commodity Insights

Indonesia offers to buy 300,000 tons of rice from Myanmar YANGON, Jan. 9 — Indonesia has offered to buy 300,000 tons of rice from Myanmar and more amount will follow, official media reported Wednesday.The offer was made when demand for Myanmar rice in the Southeast Asian member country is on the rise, a commerce official was quoted by the New Light of Myanmar as saying.According to the official, Myanmar‘s rice export to Indonesia reached the peak between 2001-2002 and 2005-2006 but was almost none after 2005-2006 for various reasons.Myanmar could only export 2,125 tons of rice to Indonesia in the first three quarters of 2011-2012 but it sharply increased to 1.01 million tons in the same period of 2012-2013, he said.―If that rate continues, Myanmar‘s rice export would hit 1.2 million tons, a record high in 40 years,‖ he assumed.Myanmar, which was once a major rice exporter, exported more than 1 million tons before 1956.

Broken rice from Cambodia affects export Farmers harvest rice in Kandal province‘s Khsach Kandal district. Photograph: Heng Chivoan/Phnom Penh Post Exports of milled rice had fallen dramatically last year because of the poor quality of paddy rice, insiders said yesterday.

Milled-rice producers told the Post that a large amount of paddy rice broke.

From every 100 kilograms of paddy rice, 20 to 23 kilograms of milled rice were produced, Hun Lak, secretary of the Alliance of Rice Producers and Exporters of Cambodia, said.

Sen Rith, the president of Siem Reap province‘s rice millers‘ group, confirmed that a harvest of 100 kilograms of paddy rice was processed to slightly more than 20 kilograms last year, compared with 38 to 42 kilograms of milled rice in 2011.Hun Lak, general director of the milled-rice trading company Mekong Oryza, said some of the harvested paddy rice was too weak and broke, which had led to losses during processing.Because of those poor results, the Alliance of Rice Producers and Exporters of Cambodia had provided less capital for millers to buy paddy rice, he said.

Hun Lak said the alliance had previously provided about US$3 million in capital to rice-processing members. ―We can‘t buy big amounts of broken rice. We would lose a lot of profit,‖ he said.Sen Rith said there were not enough workers to harvest paddy rice when the season began late.As a result, farmers kept paddy rice in the sun and close to the water for many days, lowering the crop‘s quality, he said.―If farmers keep the harvest in the fields too long, the grains become brown and break,‖ Rith said.

According to the trade and promotion department of the Council for Development of Cambodia, companies exported 205,717 tonnes of rice in 2012, a rise of 1.9 per cent compared with the 201,899 tonnes exported in 2011.Keth Seng, secretary of state for the Ministry of Agriculture, Fishery and Forestry, said during a meeting earlier this month the price of Cambodian rice had dropped about 100 riel a kilogram on average.

Although rice traders cut their prices, the cost of transportation increased last year. In addition, rice-exporting countries such as India sold old stocks of rice, affecting the demand in Cambodia.

89

Finance to boost loan guarantee for rice-pledging scheme by Bt70 billion The Finance

Ministry is prepared to raise the loan guarantee for the rice-pledging scheme by Bt70 billion to Bt220 billion, according to an official of Bank for Agriculture and Agricultural Cooperatives (BAAC).

BAAC is carrying out the scheme, through a loan guaranteed by the ministry.

The Cabinet earlier approved the financial backup worth Bt150 billion.

Wanchai Siriwatanatrakul, a director in charge of government policies, said that the ministry will come up with additional guarantee for the pledging of rice in the 2012-2013 harvest season.

He noted that the guaranteed amount must be expanded as BAAC has spent Bt113 billion for the pledging of 7.54 million tonnes of rice. It is estimated that the Commerce Ministry would reap only Bt40.9 billion from the releases of stocks. "We are rushing the Commerce Ministry to quickly repatriate the sum to BAAC, so that we can use it for this harvest season. From the discussion with the Finance Ministry, it is possible that the ministry will need to expand the guaranteed amount while BAAC is waiting for the sum from the Commerce Ministry," Wanchai said.

UTCC: Rice exports set for another ugly year 

Published: 9/01/2013 at 12:00 AM,Newspaper section: Business

Thai rice exports will likely remain under pressure this year, exacerbated by the stronger baht and higher costs as a result of increased wages.

In 2012, Thai rice failed to compete with supplies from Myanmar and Cambodia as those countries sought to ramp up exports, said Aat Pisanwanich, director of the Center for International Trade Studies at the University of the Thai Chamber of Commerce (UTCC).

Overall Thai exports are forecast for single-digit growth this year, given the fragile economic recovery in the US, the EU and Japan.

In addition, the hike in the daily minimum wage to 300 baht nationwide will raise production costs and erode the price competitiveness of Thai products.Anticipated baht gains will also put pressure on Thai exports this year, said Mr Aat."Thai rice is expected to be hit hardest by those unfavourable factors, followed by garments and the processed and frozen shrimp industry, where they expect a labour shortage and higher labour costs," he said.

According to UTCC estimates, Thai shipments this year will reach between US$238 billion and $247 billion.

Mr Aat said Thai exports will be driven mainly by Asean and other Asian markets, which are expected to grow by 8.2% year-on-year.Export growth in the region will offset sluggish growth in the US market, whose shipments are expected to grow by 5.1%, plus a weak showing in the EU and Japan (3.6% and 3.1% respectively).Mr Aat called on the government to hasten assistance measures to ease the impact of higher wages, especially for small and medium-sized enterprises involved in garments, textiles, processed food and furniture."It's imperative that the government accelerate offering more tax incentives on raw material costs and a corporate income tax of 15% or less while providing soft loans," he said."We've already been told enterprises in several industries have been gradually shutting down due to the higher wages."He said deeper investigation is needed into whether the wage hike is the only factor in such closures.

90

India's Rice Shipments to Iran Delayed

By BIMAN MUKHERJI And DEBIPRASAD NAYAK NEW DELHI—India's rice exports to Iran are being held up due to payment-related and other delays, a senior Indian trade executive said Wednesday.The two countries launched a payment mechanism last June to skirt Western sanctions against Iran by essentially exchanging Iranian oil for a range of Indian goods, including rice, soymeal and pharmaceuticals. Indian oil importers deposit rupees into an Indian bank, while rice traders and other exporters withdraw funds once their shipments have been received.The problem is that official letters from an Iranian bank authorizing the release of payments for rice are "taking three to four months" from the date of delivery, said Vijay Setia, the former president of the All India Rice Exporters Association. Bureaucratic delays, including slow issuance of health certificates for the rice, are also holding up shipments, he said.

Rice exports to Iran in the fiscal year ending March 31 will likely fall to about 700,000 metric tons from around 1.0 million tons last year, Mr. Setia said. Iran imports mainly basmati, a premium rice grade, from India.Another rice exporter said payments for most shipments haven't been delayed. The problem is with shipments to new Iranian buyers, he said.Mr. Setia said stronger demand from Iraq for Indian rice—around 300,000 to 350,000 tons compared with 250,000 tons last year—will likely partially offset reduced exports to Iran. Iraq also buys mainly basmati rice from India.India became the world's top rice exporter last year after the government lifted a three-year ban on non-basmati rice exports in September 2011.Mr. Setia said the country is likely to maintain its ranking this year, despite a reduction in output that resulted from dry conditions last year.

Rice farmers root for new variety to boost production Ms Christine Anyango Awuor winnows rice in Bunyala. Rice farmers have asked the Ministry of Agriculture to certify a new high-yielding rice variety.

Photo/FILE

By Everline kewo,Posted Tuesday, January 8 2013 at 17:56 IN SUMMARY  Bunyala Irrigation Scheme rice farmers said the new variety known as Supa rice is high-yielding, matures faster, uses less fertiliser, water and pesticides as compared to others varieties.  Supa rice which was bought by some traders from Uganda and Tanzania and planted in fields in Bunyala for the first time saw farmers triple their production Rice farmers have asked the Ministry of Agriculture to certify a new high-yielding rice variety.Bunyala irrigation scheme rice farmers said the new variety known as Supa rice is high-yielding, matures faster, uses less fertiliser, water and pesticides as compared to others varieties.Some farmers planted the new variety and

91

have reaped the benefits this season, said Western Kenya irrigation schemes‘ public relations officer Michael Congo.

Mr Congo said Supa rice which was bought by some traders from Uganda and Tanzania and planted in fields in Bunyala for the first time saw farmers triple their production.―I tried out the new species in my one acre of rice field just to assess whether it would bring good yields and to what I least expected, I harvested 42 bags of rice,‖ said Mr Congo who is also a rice farmer in the scheme.Rice consumption in the country is estimated at 300,000 metric tonnes compared to a production capacity of 45,000-80,000 metric tonnes. It is the country‘s third staple food after maize and wheat.

As compared to Basmati, IR, BW and ITA rice varieties which are susceptible to diseases and require a lot of water and fertiliser, Supa is disease-resistant and can tolerate salty water. ―Supa rice is environmental friendly given that it requires fewer inputs unlike other varieties which must be sprayed often, the yields are also high and it also has an aroma taste, making it taste sweet,‖ said Mr Peter Wekesa, an outgrower in the region.The variety has received backing of the Bunyala rice growers and small scale farmers in the region say National Irrigation Board (NIB) and Kenya Agricultural Research Institute (Kari) should allow schemes to grow the new species they say will enhance rice production in the country and cut down on bulky import of cheap Pakistan rice.

Supa rice takes 90 days to mature unlike other varieties which take 120 days to mature.Besides, Mr Wekesa says the variety is resistant to weeds and forms ratoons —new shoots that sprout from the main plant. This leads to increased yields per acre.Mr Wekesa said if certified by NIB, most farmers are likely to abandon the local varieties and adopt the new one.National Irrigation Board senior schemes manager for western, Laban Kiplagat said the board is already carrying out research in conjunction with Kari on the rice variety.

10th January, 2013

Texas rice farming towns struggle without water

By By Ramit Plushnick Masti on January 09, 2013 EAGLE LAKE, Texas (AP) — Tom Kallina has no fields to till, plant or flood. But his business depends on Texas' rice industry and the likelihood that farmers won't get irrigation water for a second consecutive year threatens to destroy it, along with hundreds of others in his area.

Three-quarters of Texas' rice crop comes from the Colorado River basin, an area that hovers above the national poverty rate and offers few alternatives for employment.

Farmers struggled last year after the agency that oversees and manages Central Texas reservoirs cut off their irrigation supply following a historic drought. With the drought now two years old, the agency voted Tuesday to withhold irrigation water again if Lakes Buchanan and Travis remain below a certain level on March 1.

The decision affects generations-old rice farms, along with myriad businesses that support, rely and contribute to the industry that brings $1 billion into the state annually.

Kallina owns Area Rice Marketing, an Eagle Lake business that acts as a broker between rice farmers and commercial buyers. In an average year, Kallina analyzes and markets about 15,000 acres of rice. Last year, he did only 2.500 acres, and while he also has a rice storage and drying facility, the income from that is not enough to supplement the rapidly failing marketing business.

"I am trying to keep it open by taking money out of my lifelong savings," Kallina said. But with three children in college, "I have to decide at what point in time that stops."

Half-jokingly, he asked friends gathered at a local restaurant if they might be able to hire him to sell crop

92

insurance, and called it "surreal" when during lunch his son, a student at Texas A&M University, emailed him a link with a job posting at the College Station school.

The drought dominates conversation at Tony Taco's restaurant in Eagle Lake, where more than half the 3,700 residents get some income from the rice industry and nearly everyone knows each other. Those gathered Tuesday for the weekly fajita buffet talked about who was drilling wells, who was taking on side jobs and, ultimately, which of them might make it.

"I'm not worried about me. I'm more worried about him," said farmer Craig Guthman, pointing at Kallina.

Guthman noted that he and other farmers can squeak by with crop insurance, which covers about half their losses. Last year, he grew nothing on his 900 acres. Without water, this year will be the same. The insurance won't go a third year though, so like many others, he is paying about $400,000 to drill a well that will allow him to grow about 350 acres of rice even without water from the Lower Colorado River Authority, an investment that will take 20 years of farming to cover.

Chewing on a toothpick, the burly man was baffled by a question about whether a well is a sound investment.

His father and uncle grow rice on 2,000 acres. His grandfather and great-grandfather did the same.

"We're going to farm. It's a culture. It's what we do," explained Tom Kelley, whose family has been farming in Eagle Lake since 1897. But Kelley also sells crop insurance on the side and recently opened a smokehouse in town.

Farmers have been growing rice in Eagle Lake, a town about 65 miles southwest of Houston, since 1897. They flood their fields, called paddies, because the water helps the rice grow in the clay-like soil and deters pests.

They have helped make Texas the fifth-largest rice grower in the nation, and many feel they are disproportionately shouldering the burden of the drought because they draw from the same reservoirs that supply Austin and its suburbs.

"Rich people shouldn't build mansions in the desert," declared Arthur Etheridge, who sells John Deere equipment in Eagle Lake. "Those lakes were built for agriculture, not recreation."

Clara Tuma, a spokeswoman for the LCRA, said in an emailed statement that the agency understands the difficulties of the drought for people in the lower Colorado River basin, but farmers pay less for water than others and the understanding is that during a drought they are the first to be cut off.

The agency, she added, is committed to increasing the region's water supply and is considering adding reservoirs in the rice-farming areas.

Kubota putting down roots in China for Japanese rice production Kubota Corp., Japan's largest manufacturer of farm machinery, plans to enter China's vast rice sector by supplying Japanese seed rice and

93

nurturing production there of an essentially Japanese product.

The company wants to give China's middle class access to premium Japanese rice at a significantly lower price than that exported from Japan. In the longer term, Kubota wants to increase sales of its equipment to Chinese farmers.

Kubota plans to begin exporting seed rice to China around 2014. Farmers would obtain it through local production associations and then receive instruction from Kubota in how to plant and raise it the Japanese way.

It is expected that early harvests would be distributed mainly to Japanese restaurants in China.

Kubota said it already has experience of teaching farmers in countries such as Thailand.

The company will also consider establishing a trading firm to sell rice seed in China. It forecasts possible harvests there worth 10 billion yen ($110 million) by 2018.

In January, Kubota began assembling tractors in Jiangsu province, aiming to produce 10,000 units annually.

"If Japanese rice becomes a significant share of China's agricultural output, demand for Japanese-style tractors will increase," said Yasuo Masumoto, chairman and president of Kubota. "We will be watching closely how we are received, and spot when is best to start new business."

Kubota said if Chinese consumers acquire a taste for lower-priced locally-grown Japanese rice, it could lead to demand for exports of the higher-priced product from Japan itself.

But observers noted the possibility that the cheaper Chinese crop from Japanese seeds will be shipped instead to Japan and thereby damage Japan's domestic rice sector.

"If China acquires a taste for locally produced Japanese rice, consumers there will begin to recognize the value of rice grown in Japan," said an official at Japan's agriculture ministry. "We hope there will be protections against the rice seed falling into others' hands and it will all lead to the revitalization of Japanese agriculture."

Market forces drum up rice imports Agencies | 2013-1-10 23:18:02

By Agencies China became one of the world's biggest importers of rice in 2012. According to a recent article in the Wall Street Journal (WSJ), statistics from the United States Department of Agriculture (USDA) show that China imported 2.6 million tons of milled rice in 2012, a record high and well above the 575,000 ton total the country imported in 2011.

Some analysts pin the surge in imports on the growing demand for rice among Chinese consumers. If this demand holds up - and many predict it will - the global rice market could be on the cusp of a major transition period.

Of course, it may also be the case that the prices of Chinese-grown rice are just higher right now than prices for similar products in the global market.

94

Indeed, the average price of rice imported from Vietnam into China was only $410 per ton in the middle of December, while rice produced here in China was $650 per ton during the same time, the WSJ reported.

The author is a consultant from Anbound Consulting.

Ample supply, competition push rice prices lower Thursday, January 10, 2013 From Print Edition BANGKOK: Asian rice prices fell this week as supplies far exceeded demand, with top producers India, Pakistan and Vietnam competing with each other to attract business, traders said on Wednesday.

The 5 percent broken grade Vietnamese white rice was offered at $410 to $415 per ton, down from last week‘s $420.

Common Indian and Pakistani grades were offered at $425 and $410 a ton respectively, slightly lower than the $420 to $430 range of the previous week, the traders added. ―Export demand is sluggish, as rice supplies from Pakistan are available at least $10 per ton cheaper than Indian supplies,‖ said a Delhi-based trader.

Thai rice prices remained at a lofty $560 per ton due to the government intervention scheme, further reducing exporters‘ chances of securing deals, especially as supplies from other countries were plentiful, traders said.

Vietnamese farmers are due to start harvesting next month the winter-spring rice crop in the Mekong Delta, the biggest of three crops grown in the area.

India, which maintains an unrestricted export policy, is expected to produce 99.5 million tons of rice in 2012/13, slightly lower than 104.3 million in the previous crop. It also has plentiful stocks of 34.4 million tons at government warehouses, against a target of 8.2 million.

India has taken the rank of the world‘s biggest rice exporter from Thailand for the first time since 1983, traders said. India‘s rice exports are expected to be around 8.5 million tons in the year to March 2013, an official of the All India Rice Exporters‘ Association.The Thai government‘s policy of paying farmers higher-than-market prices of 15,000 baht ($490) per ton of paddy has pushed prices to uncompetitively high levels and sharply reduced exports, leading to a huge inventories.

Traders forecast Thailand to have exported, at best, 6.8 million tons in 2012, below Vietnam‘s estimated 7.72 million.

No official export statistics are available from the Thai commerce ministry are available, as the data was removed from the ministry‘s website in October 2012 and officials refused to provide information.

Traders say the government was concealing the figures to stem questions about contracts it said it had signed to sell 7.3 million tons of rice.

Q1 rice export forecast to be stagnant Thursday, January 10,2013,21:16 (GMT+7)

By Thai Hang - The Saigon Times Daily HCMC – Since export orders fall short while supply is abundant, rice export in the first quarter is forecast to be more difficult than in previous years.

Challenges emerge early At a conference on Monday to review its performance in 2012 and outline a plan for 2013, the Vietnam Food Association (VFA) said rice export would be more challenging this year due to the lack of both government-togovernment and commercial contracts. So far, Vietnam has only signed a contract to export over 200,000 tons of 5% broken rice to Malaysia with delivery scheduled for April 2013.

95

VFA chairman Truong Thanh Phong predicted Vietnam could only export rice to China this quarter, while the Philippines would likely start importing in April and Malaysia later this year. Therefore, rice export will slow down in the first quarter given the tough competition with India and Thailand.

VFA estimated some 7.6 million tons of rice would be available for export this year, not counting the unsold volume in 2012. The total export volume of 2013 is forecast at 7.5-7.6 million tons, lower than last year‘s figure.

In the first quarter alone, rice exports will likely reach 1.4 million tons, including 400,000 tons in January, 400,000 tons in February and 600,000 tons in March.

The U.S. Department of Agriculture forecast global rice trade in 2013 would be around 36.1 million tons, or 6.22% lower than 2012. Though rice output will just pick up 0.06% against 2012, the volume in stock will be large, whereas demand will stay low, leading to a decline in global rice trade.

Bright spots in export markets According to VFA, China will continue to import much this year with a quota of 2.66 million tons of long-grain rice and 2.66 million of low- and average-grade rice. However, because of larger output in 2013 and Chinese yuan depreciation against the U.S. dollar, the neighboring country will likely import more slowly.

China was the largest rice importer of Vietnam in 2012. Apart from China, Indonesia and the Philippines, Vietnam will have a chance to export rice to Japan with its market recently reopened to Vietnam.

Nguyen Van Tien, general director of An Giang Import Export Company (Angimex), said his firm had won a bid to export 30,000 tons of long-grain rice out of the total 182,000 tons that Japan‘s Ministry of Agriculture, Forestry and Fisheries called for.

Since late 2012, Japan has invited bids to import an additional 72,000 tons with more requirements for quality.

Vietnamese enterprises are pursuing this bid package.

In addition to Angimex, An Giang Plant Protection Joint Stock Company last year exported over 300 tons of broken rice to Japan.

Japan has imported Vietnamese rice since 2003, and Angimex was chosen back then, said Tien. However, in 2007, the participation of too many exporters made it hard to control chemical residues in rice, prompting Japan to stop importing rice from Vietnam.

In 2011, the agriculture ministry and relevant agencies of Japan collected samples of Vietnamese rice for testing. As Vietnamese rice passed the test, Japan decided to reopen its market to Vietnam.

However, rice exported to this market has to satisfy more than 500 quality requirements. ―This market prefers high-grade rice. If local enterprises can establish long-term business relations, rice export value will increase,‖ said Tien. ―To do so, it is a must to control chemical residues from the stage of farming to improve the safety and reduce testing and production costs,‖ he suggested.

Govt plans production of 1.3m tonnes of rice in four months WEDNESDAY, 09 JANUARY 2013 00:00 EDITOR BUSINESS SERVICES -BUSINESS NEWS The Federal Government is planning to facilitate the production of 1.3 million tonnes of rice through dry season farming this year, an official has said.

The Director, Field Station, in the Federal Ministry of Agriculture and Rural Development, Daniel Kakwi, disclosed this to the News Agency of Nigeria (NAN) in Jos Wednesday.

Kakwi said that the feat would be achieved through the Flood Recovery, Food Production and Expanded Dry Season Farming Programmes.

He explained that the Flood Recovery Food Production Plan, with a target to produce 880,000 tonnes of rice, would be complemented with the Expanded Dry Season Food Production. ``The two programmes will produce a total of 1.3 million tonnes of rice.‘‘ According to him, the Federal government had procured more than 14,300 tonnes of rice seed currently being

96

distributed to farmers across the country for dry season farming. ``We have mobilised from within and outside Nigeria more than 14,300 tonnes of rice seed. That is enough to plant 300,000 hectares of rice farmlands. If properly utilised, we shall produce 1.2 million tonnes of rice grain, plus an additional 420,000 tonnes to be produced in the northwestern part of the country.‘‘ He added that 500,000 tonnes of maize grains would also be produced under the dry season farming programme.

Besides, the flood recovery food production initiative, the ministry has commenced the distribution of 5,000 pumps to farmers for dry season farming. ``With the changing weather patterns, efforts are being made to develop policies that will protect farmers from the impact of climate change, especially droughts and floods. ``The Federal Ministry of Agriculture is also working out plans to scale up weather-index crop insurance schemes for farmers that will enable them to recover quickly from the effect of flood‖, he said.

FG TO BAN RICE IMPORTATION IN 2015 ...As 2,000 Farmers In Niger State Get 6,000 Bags Of Fertilizer Free For Dry Season Farming The Federal Government has expressed desires to ban rice importation in 2015 to boost local production to meet domestic consumption as well as export demands.

The Minister of state for Agriculture, Alhaji Bukar Tijani made this declaration today while rolling out 2012/2013 rice dry season cultivation programme at Majin Gari, Badeggi, in Niger state.

The Minister however gave out three bags of fertilizers at 50% subsidy for 2000 selected farmers that would participate in dry season rice farming in Niger state, as the Niger state governor, Dr. Babangida Aliyu promised that his administration would offset the balance of the remaining 50% to the lucky farmers, all in a bid to encourage massive rice production in the state.

Alhaji Tijani explained that the dry season farming was a special federal government intervention programme aimed at boosting rice production to reduce the likely effect on food supply due to the rice farms lost to flooding in 2012 adding that the programme was in tandem with federal government desire to ban rice importation by 2015.

Similarly, Dr. Aliyu expressed the delight of his government towards the federal government special programme designed to assist farmers in embracing dry season rice production in Niger state, assuring that his government would pay the balance of the 50% subsidy on the fertilizers that would be given to the farmers..―We believe it is mere coincidence that the federal government is rolling out this programme at this time, after the floods that devastated our rice farm lands last year.

We are also pleased that out participating farmers and stake holders will receive free seeds and 50% support from the federal government on the cost of fertilizers and other farm inputs, while Niger state will also pay the balance of 50% of the same items‖, he said.

Governor Aliyu called on farmers generally to embrace dry season farming in Niger state, as the state government is committed to creating the enabling environment for irrigation farming to boost agriculture production in Niger state adding that the state has established the Niger state Rice Investment Consortium Project as a special platform to accelerate rice production in line with the federal government rice transformation plan.

97

Myanmar Offers Rice to Indonesia Thursday, 10 January, 2013 | 19:46 WIB TEMPO.CO, Yangon, MYANMAR: Indonesia is offered to purchase 300 thousand tons of rice from Myanmar.

As cited from local media, the New Light of Myanmar, yesterday, the country's Trade Ministry said the offer is related to the increasing demand for Myanmar rice from ASEAN countries.

According to the Trade Ministry, Myanmar's rice exports to Indonesia reached its peak in 2001-2002 and 20052006. However, since then Myanmar almost stopped exporting rice to to Indonesia due to various reasons.

In the third quarter of fiscal year 2011-2012, Myanmar only exported 2.125 tons of rice to Indonesia. In the same period in fiscal year 2012-2013, it surged to 1.01 million tons. With the volume increase rate, it is estimated that Myanmar's rice exports to Indonesia could reach 1.2 million tons, the highest in 40 years.

Myanmar is the main exporter of rice. Prior to 1956, the country had exported more than 1 million tons of rice.

NFA-2 meets 66 percent of rice procurement program target in 2012

By Merlito G. Edale, Jr.,SANTIAGO CITY, Isabela, Jan 10 The National Food Authority (NFA) 2 has met 66 percent of its 2012 rice procurement target.

The agency bought 1.2 million bags of palay last year, short of its 1.8 million bags target.of palay in 2012.

These are now stocked at the different NFA warehouses in the region. NFA-2 director Danilo Pastrana said the target was not fully attained as farmers sold their palay to private traders who bought their goods at prices higher than that of NFA. Pastrana said that even the agency did not meet the procurement target, he assured that the buffer stock of rice in the region is enough until March this year or until the harvesting season. The agency has made measures to meet the target like mobile procurement at far flung places in the region and used the procurement subsidy fund from the provincial government of Isabela to encourage Isabela famers to sell their palay to NFA, The buying price of NFA is pegged at P17 per kilo and the provincial government gives P1 per kilo support price subsidy sold to NFA. He said the province of Isabela has the highest palay sold to the NFA that has a total of 600 thousand bags procured last year. (PIA - Isabela)

10th Janaury,2013

Hybrid Seeds Can Increase India Rice Production by 20%, Says Study By news desk on January 09,2013

India‘s rice production could increase by up to 15-20% or to around 120 million tons annually if more farmers in the country shift to growing hybrid rice, according to a study by the Netherlands-based Rabobank.China is the world‘s largest producer of rice and India the second. However, China produces about 143 million tons of rice annually from about 30 million hectares under rice cultivation, while India‘s 43 million hectares produce only about 100 million tons of rice per year. The gap clearly lies in the higher yield and use of hybrid rice, in which China is miles ahead of India.

According to Rabobank, the area under hybrid rice cultivation in China stands at around 50% or about 15 million hectares of the total rice acreage in the country, compared to about just 3-5% or about 2 million hectares of total area under rice cultivation in India. However, popularity of hybrid rice is growing significantly among

98

rice farmers in India, with hybrid rice acreage surging almost 58% in the last three years from 1.285 million hectares in 2008-09 to an estimated 2.030 million hectares in 2011-12.

The Rabobank study added that the low use of hybrid seeds in rice cultivation in India presents an opportunity for large multinational seed companies and advised such companies to continue acquiring local seed companies with a good local germplasm base to increase the popularity of hybrid rice cultivation in the country.

Bangladesh Domestic Paddy Rice Prices Drop 7% Year-on-Year By news desk on January 09,2013

Domestic paddy rice prices in Bangladesh declined to Tk 32 per kilogram (about $395 per ton) on December 31, 2012, down about 7% year-on-year, according to the Trading Corporation of Bangladesh (TCB).

According to the UN‘s Food and Agriculture Organization (FAO), Bangladesh‘s 2012 paddy rice production is estimated to reach 51.3 million tons (about 34.2 million tons, basis milled), up about 1.2% from around 50.7 million tons of paddy (about 33.8 million tons, basis milled) produced in 2011.

As a result of consecutive good harvests, improved public rice distribution and availability of cheaper Indian rice across the border, prices of the grain remained suppressed at about Tk 28 to Tk 29 per kilogram (about $345 to $360 per ton) in the last half of 2012. However, local farmers say that traders buy paddy from them at much lower prices than the market price and the government support price of Tk 28 per kilogram (about $345 per ton).

Low prices have caused much distress to rice farmers in the country, with many of them considering switch to other crops to avoid loss and for better returns. The government allowed exports of aromatic rice in May last year to make space for new arrivals of rice. The government plans to allow exports of a small quantity of nonaromatic rice soon to help improve rice prices.

Vietnam Loads 73,000 Tons to Cuba; 34,500 Tons to Africa; Loading 115,000 Tons to Indonesia, 352,00 Tons to Malaysia By news desk on January 09,2013

Loading of Vietnam rice consignments headed mostly to Africa of about 107,500 tons was completed during December 20 - 30, 2012, while loading of about 322,500 tons of rice to mostly Indonesia and Malaysia have begun on January 1 at the Saigon Port, in Ho Chi Minh City, according to shipping industry sources in Vietnam.

Details of loading follow: Loaded – About 73,000 tons headed to Cuba, while another 34,500 tons are headed to other African destinations.

Loading – About 115,100 tons of rice are headed to Indonesia, while another 35,200 tons are headed to Malaysia.

Thailand, Vietnam Rice Sellers Increase Some of Their Quotes; India, Pakistan Rice Sellers Keep Indications on Hold By news desk on January 09,2013

Thai rice sellers increased their quotes for parboiled rice by about $5 per ton to about $565 - $575 per ton today.

Viet rice sellers increased their quotes for broken rice by about $5 per ton to about $350 - $360 per ton. Indian and Pak rice sellers kept their quotes unchanged.

99

Thai 5% rice is quoted around $545 - $555 per ton, about a $135 per ton premium over Viet 5% rice shown around $410 - $420 per ton. Indian 5% rice is quoted around $430 - $440 per ton, about a $20 per ton premium over Pak 5% rice shown around $410 - $420 per ton.

Thai 25% rice is quoted about $530 - $540 per ton, about a $155 per ton premium over Viet 25% rice indicated around $375 - $385 per ton. Indian 25% rice is quoted about $385 - $395 per ton, about a $35 per ton premium over Pak 25% rice shown around $350 - $360 per ton.

Thai parboiled rice is quoted around $565 - $575 per ton, up about $5 per ton from yesterday. Indian parboiled rice is quoted around $420 - $430 per ton, about a $30 per ton discount to Pak parboiled rice shown around $450 - $460 per ton.

Thai broken rice, A1 Super, is quoted about $515 - $525 per ton, about a $165 per ton premium over Viet broken rice shown around $350 - $360 per ton, up about $5 per ton from yesterday. Indian broken sortexed rice is quoted about $340 - $350 per ton, about $10 per ton premium over Pak broken sortexed rice indicated around $330- $340 per ton.

Thailand Rice Exports May Decline in 2013 Due to Higher Labor Costs, Stronger Baht By news desk on January 09,2013

The price competitiveness of Thai rice is likely to further decline in 2013 due to the government‘s decision to hike daily minimum wage to 300 baht (about $9.8), according to the opposition party and other experts.

In 2012, Thailand‘s total rice exports declined about 39% to around 6.9 million tons, mainly due to high prices of Thai rice driven by the government rice mortgage program.

Protesting the minimum wage hike that is in effect from January 1, a Democratic Party leader said that Thailand lost its status as the world‘s largest rice exporter in 2012 due to the government‘s populist rice mortgage program. Now, the sudden hike in minimum wages across the nation will increase production costs, besides causing shortage of labor in the villages, he said.

The director of the Center for International Trade Studies at the University of the Thai Chamber of Commerce (UTCC) said that Thai rice exports will be the worst hit by the hike in minimum wage. He added that the anticipated baht gains this year will also dissuade buyers from importing rice from Thailand.

USDA Post Increases India 2012-13 Rice Export Forecast 10% to 8 Million Tons By news desk on January 09,2013

The USDA Post in India says in its latest report that India‘s rice exports in the marketing year 2012-13 (May to April) is likely to reach 8 million tons, up about 10% from the USDA official estimates of around 7.2 million tons.

Higher rice exports will be driven by strong export demand and relatively competitive prices this year. The Post said that despite the recent hike in domestic prices of basmati rice, demand remains steady. "Exports of Indian non-basmati rice remain very price competitive and export prospects for Indian raw rice are likely to improve in the next few months as supplies from other countries become tighter," the Post added.

The Post retained official estimates of 99 million tons for rice production in 2012-13, but reduced the forecast for rice consumption in India in 2012-13 from USDA official estimates of around 95.2 million tons to around 94.6 million tons.

Last year, India became the world‘s largest rice exporter for the first time in recorded history, helped by consecutive bumper harvests and a huge surplus accumulated due to three-year ban on rice exports. The country exported around 10.4 million tons of rice (including 3.48 million tons basmati, and 6.9 million tons nonbasmati) in 2011-12. However, India‘s rice exports are likely to drop about 20-30% in 2013 due to higher domestic prices and higher supplies in the international market.

100

U.S. Rice Market Looking For More Sales to Iran

By Oryza News on January 09,2013

U.S. cash rice market activity remains limited as cash prices hold steady going into Fridays USDA reports. This will be the first time that the USDA will release both the WASDE report and the Rice Stocks report at 11:00 a.m. Central time as compared to the normal 7:30 a.m. Central time release, which has some analysts concerned about how this will affect futures trades and cash activity although others believe that the impact will be limited.

As of now, most market participants are well aware of the recent long grain milled rice cargo (#2-4%) that traded to Iran a couple weeks back and many analysts believe that there could be at 1 or more cargoes in the works. If this is the case, we could see domestic prices steadily increase, especially if Colombia buys another cargo from the U.S. as many suspect that they will do during the first half of 2013 however the big question remains: How will the recently signed trade agreement between Vietnam and Haiti impact U.S. rice exports to Haiti?

As of today, most offers from farmers held steady near $15.00 per cwt (about $331 per ton) for JanuaryFebruary-March delivery for 50 lbs of head rice while offers from resellers were unchanged at slightly more attractive levels which generated limited buying interest. Meanwhile, bids from most mills and exporters could be found around $14.45 per cwt (about $319 per ton) for the same delivery period, however it was reported that buyers were willing to pay as much as $15.00 per cwt (about $331 per ton) for prompt delivery of high milling rice.

Going forward, analysts will look at tomorrow export sales numbers to see if their suspicions were indeed correct; that the U.S. sold more than 1 cargo of long grain milled rice to Iran

Water Supply Likely Cut-off for U.S. Texas Rice Farmers for Second Consecutive Year By news desk on January 09,2013

Water supply for rice cultivation for farmers in the Texas state of the U.S. is likely to be cutoff for the second year in a row, to ensure sufficient water

supply for the residents of Austin amidst a prolonged drought that is threatening to become the worst in the region‘s history.

After a board meeting yesterday, the Lower Colorado River Authority (LCRA) said that water from the Highland Lakes should be withheld from most farmers this year if water storage in the two reservoirs by

101

March 1, 2013 is below 850,000 acre-feet, or about 42% of the total capacity, which is the same yardstick used to withhold water supply to Texas rice farmers last year. ―We‘re in the middle of a drought that could end up being the worst in recorded history,‖ said LCRA General Manager Becky Motal. ―This drought has been painful for everyone, but LCRA is committed to protecting the water supply of the City of Austin and the other communities and major industries throughout the basin.‖ Several rice farmers in the region see the decision as a devastating blow to their livelihoods and future, despite having the first right on water from the reservoirs.

The LCRA board said it understands the distress the move is likely to cause to rice farmers in the region, but a strict adherence to the 2010 water management plan could lead to release of water for the first crop of 2013, but it could be cut off before the crop is complete. This would be disastrous to farmers and wastage of water already used for irrigation, said LCRA. ―LCRA must continue to make difficult decisions to responsibly manage the water supply during this painful time,‖ Motal said.

A Quick Glance at World News - What the Financial Times, Wall Street Journal and New York Times Are Reporting Today By news desk on January 09,2013

Financial Times – *The U.S. Energy Information Administration predicted that net imports of liquid fuels, including crude oil and petroleum products, would fall to about 6m barrels per day in 2014, their lowest level since 1987 and only about half their peak levels of more than 12 million during 2004-07. *Hugo Chavez will not be attending the inauguration of his third term as Venezuela‘s president on Thursday, according to officials, clearing the way for a constitutional showdown with opponents. *Alcoa, the aluminum producer, expects global demand for the metal to grow 7% this year, representing only a modest pick-up from last year‘s rise of 6%. *Wesley Wang, a former analyst for the $14 billion hedge fund SAC Capital, has named 20 people who traded on inside information, including some subjects of the U.S. government‘s wide-ranging investigation who are yet to be charged, according to prosecutors. *AIG, the U.S. insurer, which received the biggest of all the government bailouts during the financial crisis, may sue the U.S. government over the terms of the deal. On Wednesday, the company‘s board will consider joining a lawsuit launched in 2011 by Hank Greenberg, AIG‘s former chief executive, which demands $25 billion in compensation for the dilution inflicted on shareholders when the Federal Reserve Bank of New York took a 79.9% stake in return for $182 billion in loans and guarantees. *The Obama administration is considering leaving no U.S. troops in Afghanistan after 2014 when the current mission is due to end, White House officials said on Tuesday. *Eurozone total unemployment hit a fresh record of 11.8% in November; official statistics showed on Tuesday, highlighting the dire state of the bloc‘s economy in spite of hopes for a gradual recovery this year. *Nuclear experts in the U.S. and Middle East have raised concerns about the security of up to 50 tons of unenriched uranium in Syria amid fears that civil war could put the stockpile at risk.

Wall Street Journal *KKR & Co. has agreed to invest $200 million in Vietnamese sauce maker Masan Consumer Corp., marking the largest investment to date in Vietnam by a private-equity firm. *A German bank, DVB Bank SE, gave up plans to raise $500 million in the U.S. bond markets Tuesday, a sharp contrast to the recent investor clamor for corporate debt and a rare case of an announced offering being pulled.

102

*Merger-and-acquisition activity will likely strengthen in Australian, Investment bankers said, as resurgence in commodity prices prompts new interest in Australian resource assets. The domestic stock market, which rose to a 19-month high of 4750.70 on Monday but slipped back to 4690.20 on Tuesday, could break 5000 this year, sparking a revival in IPOs, especially in resources and real estate, they added. *On the heels of Google Inc.'s agreement with U.S. regulators to limit how it can wield its technology patents, the Internet search company dropped a pending patent claim against Microsoft Corp. *Australian authorities downgraded the wildfire threat posed by extreme heat conditions across the country Wednesday as cooling temperatures allowed emergency services to bring a string of blazes under control.

Emergency alerts remain for five locations across New South Wales, Australia's most populous state and fires continued to burn in Victoria, Tasmania and in the Australian Capital Territory, where the federal government is based. *Ireland is still paying too much for borrowing in the bond markets in light of its tough clampdown on budgets, the head of its central bank said Tuesday, as the country sought investors for its first bank-run bond since the 2010 bailout. *Spain announced plans on Tuesday to issue a record amount of government bonds (worth about €121.3 billion or $158.53 billion) this year, kicking off Thursday with an auction that investors and analysts say will likely benefit from a recently improved market appetite for riskier euro-zone debt. *Poland‘s monetary policy council is widely expected to cut the benchmark rate by 0.25% to 4.0% on Wednesday in order to give the slowing economy a boost, but markets and analysts have already set their sights on deeper easing in coming months.

New York Times*India slammed archrival Pakistan on Wednesday over a firefight in the disputed territory of Kashmir in which two of its soldiers were killed, and said the mutilation of one of the bodies was "inhuman.‖ *The Japanese Foreign Ministry summoned China‘s ambassador on Tuesday after Chinese ships entered Japanese-controlled waters for 13 hours, a prolonged incursion that seemed to escalate a standoff over a group of disputed islands. *Colombia‘s chief prosecutor‘s office has opened a preliminary criminal investigation into former President Álvaro Uribe over allegations he sponsored a deadly far-right militia as a regional governor in the 1990s. *China's securities regulator is requiring underwriters and auditors of all applicants for domestic initial public offerings to re-examine their financial statements as part of efforts to boost the quality of listed companies, four sources with knowledge of the plan told Reuters on Wednesday. *U.K. business leaders, including Virgin Group founder Richard Branson and WPP chief executive Martin Sorrell, warned Prime Minister David Cameron in a letter to the Financial Times on Wednesday that he risks hurting Britain's businesses if he proposes to exit the E.U. *Apple Inc's Chief Executive Tim Cook is meeting with partners and government officials in China on his second visit to the firm's second-largest market in less than a year. *The Chinese company, Hanergy Group's, that bought Miasole, a California producer of thin-film solar panels, says it can make a success of the emerging technology where others have suffered huge losses.

Oryza Rice Recap – All Eyes on China Rice Demand for 2013; The Next Shoe to Drop?

Analysts Warn Emerging Markets Will Suffer Destruction That Will Rival the 2008 Market Crash in Developed Economies

By Oryza News on January 09,2013

103

Global rice quotes were mostly unchanged today and most Asia origins remain at a steep discount to U.S. and South American quotes. Asia has ‗suffered‘ a supply overhang for years thanks to bumper crops and Thailand‘s hopes to inflate rice prices were somewhat thwarted with India‘s return to the non-basmati rice export market.

Meanwhile, the U.S. and South America have seen rice prices supported by restricted production has rice fights for acreage with soy.

Firm soy prices this summer and autumn were leading some rice farmers to say they would cut back on rice acreage as prices, while supportive, were still low compared to soy. However, soy futures prices have declined about 20% since peaking this past autumn meaning rice acreage in the U.S. and South America may not be reduced this coming crop year as much as previously thought.

Meanwhile, as the Americas are potentially facing improved rice production, reducing bullish support for rice prices, Asia‘s luck luster market may finally rebound – not due to a crop failure in India or the Thailand rice scheme, but perhaps from increased import demand from China. FAO economist Conception Calpe says that China‘s rice stocks, consisting of about half the world‘s rice stocks, may be lower than has been estimated. She concedes that this data is difficult to verify in China and in developed countries including Japan and Europe and less than 10 countries, including the Philippines and the U.S., have ―serious‖ surveys to record rice stocks.

The above graph with data estimated by USDA, shows rising year-end global rice stocks over the last decade thanks mostly to rising stocks in China, India, and Thailand (the list of countries are those with estimated rice stocks of half a million tons or higher while the world total includes these and all other countries as well). With China consisting of such a huge percentage of world rice stocks, a change to China‘s estimated balance sheet would have major global implications. A small percentage swing in China‘s rice imports ripples out to a huge percentage change in global rice import demand. This would be welcome news to exporting origins including the U.S. which has longed hope of shipping rice to China.

While rice quotes show potential for perking up on Chinese demand, the international economy could face challenges if emerging markets – a rising and relatively steady source of global demand throughout the 2008 economic crisis – stumble.

Business Insider argues that emerging markets are a bubble originating over a decade ago when China entered the World Trade Organization (WTO). China‘s manufacturing growth and India‘s offshoring and information technology (IT) boom spurred rapid economic growth and urbanization. This lead to increased commodities demand from resource-rich nations like Brazil and Russia, spurring economic growth there and leading to what Goldman Sachs economist Jim O‘Neill termed the ‗BRICs‘ (Brazil, Russia, India, and China). Then, this economic growth rippled out to other emerging nations like Indonesia and South Africa and acted a sort of backstop against faltering demand from within the Eurozone.

Since the mid-2000s, and even more following the implosion of developed economies in 2008, emerging markets have enjoyed an influx of investment. This investment was made more easily thanks to increased liquidity provided by lose monetary policy in the U.S., UK, Europe, China, and Japan. Brazil last year ―suffered‖ so much foreign investment its currency rallied, threatening to strangle its export-based economy (a higher Brazilian real would make the price of Brazilian goods more expensive on global markets).

104

China has long been called a bubble for several years and in 2011 the IMF warned of ―signs of overheating‖ for global emerging markets. With emerging markets running so hot for so long – exporting and consuming rising amounts of commodities – commodity-heavy developed economies are now also at risk of overheating. Economists see the potential for property bubbles to burst in Australia, Canada, and parts of Northern and Western Europe. Other developing nations across the world are also projected to be suffering from property bubbles that could burst including across much of Asia and parts of South America. Besides bank financing, the ―shadow banking system‖ continues to grow throughout the world, making monitoring the value of collateral against the size of debt outstanding very difficult. This means there may be even more dominoes ready to fall than we realize.

The Business Insider predicts: Emerging market economies and investment assets are experiencing a bubble of enormous proportions as their investors and consumers make the very same mistakes that the West made just a few short years ago.

The Emerging Markets Bubble will pop when the bubbles in China and commodities prices pop and may lead to a crisis like the 1997 Asian financial crisis in the best-case scenario and a global depression in the worst-case, but highly likely scenario. Singapore and Hong Kong, with their finance and real estate-heavy island economies, may experience a similar fate to Iceland and Ireland in the 2008 financial meltdown.This time isn‘t different.

Oryza Afternoon Recap – Chicago Rough Rice Futures Mark Slight Gains, Trading Volume Depressed Ahead of USDA S&D Update

By Oryza News on January 09,2013

Chicago rough rice futures for March delivery settled 3 cents per cwt (about $1 per ton) higher at $15.235 per cwt (about $336 per ton). Rough rice futures remain lifeless, finishing the day with modest gains after another session of vastly reduced trade volume. Outside markets provided little directional support as U.S. grains finished almost unchanged as flat oil prices failed to prop up commodities prices. Market participants appear to feel well positioned ahead of Friday‘s WASDE update and expectations are for another day of quiet trading tomorrow and Friday morning ahead of the reports release. U.S. grains finished mostly lower today; soybeans finished the day about 0.1% lower at $13.8550 per bushel; wheat finished down about 0.7% at $7.4550 per bushel; and corn finished the day about 0.8% higher at $6.9425 per bushel.

U.S. were modestly higher across the board Wednesday, lifted by industrials, after Dow component Alcoa kicked off the fourth-quarter earnings season on a positive note. The Dow Jones Industrial Average was higher after sliding in the last two sessions. The S&P 500 and the Nasdaq also advanced. Among key S&P sectors, health care and industrials gained, while energy declined. U.S. stock markets are currently trading about 0.3% higher, Gold is trading down about 0.6%, crude oil is currently trading unchanged on the day, and the U.S. dollar is trading about 0.3% higher at about 2:00pm Chicago time.

Looking to the daily continuation chart of Chicago rough rice futures for March delivery, there was little action to be noted today. Despite a higher close the market failed to break through yesterday‘s high of $15.285 per cwt (about $337 per ton). Although the market was able to close above nearby support around $15.200 per cwt (about $335 per ton), the bears were able to drag prices below yesterday‘s session low of $15.190 per cwt (about $335 per ton). Today‘s reduced trade volume and tight trading range provides little indication of tomorrow‘s market direction. The day‘s trading range is noted as $15.175-$15.260 per cwt (about $335-$336 per ton).

Tuesday, there were 297 contracts traded, down from 473 contracts traded on Monday. Open interest – the number of contracts outstanding – on Tuesday rose by 91 contracts to 14,463.

105

Oryza Rice Currency Analysis for Today – Mexico Peso Rallies 0.62%; Euro Investors Await Tomorrow's ECB Rate Announcement

By Oryza News on January 09,2013

U.S. dollar index was up +0.21% from the open today, when it traded at 80.813 at the close.

Euro retraced -0.15% to around 1.3062 by end of day. The Euro fell again today ahead of the ECB interest rate decision tomorrow. Although there is no change in rate expected, investors remained sidelined while most of the FX majors remain in consolidation mode, watching key macro events.

Thai baht closed the day +0.08% stronger, trading at 30.39 at the close of business today.

Indian rupee was +0.46 stronger, when it traded at 54.7550 by session end.

Brazilian real was +0.04% stronger than the open at today‘s close, when it ended at 2.0408 reais per dollar.

Pakistan rupee was +0.14% stronger at the close today, when it traded at 97.2900.

Vietnamese dong was unchanged from the 20,840 dong per dollar open, at the close of business today.

Mexican peso recovered today, in the order of +0.62% by the close, and continues to remain ―strong,‖ trading below the 13 peso per dollar pivot, at 12.7246 pesos per dollar by the close of business.

Chinese yuan was -0.03% weaker today at the close, when it traded at 6.2261.

Argentine peso was -0.09% weaker from the open, when it closed at 4.9360 pesos per dollar today.

Oryza Overnight Recap – Chicago Rough Rice Futures Slightly Higher as Possible Chinese Bean Sales Support U.S. Grains By news desk on January 09,2013

Chicago rough rice futures for March delivery were trading up 3.5 cents per cwt (about $1 cents) at $15.240 per cwt (about $336 per ton) as of 9:00am Chicago time. Rough rice futures are currently seen a touch higher after a very quiet overnight trading session. Total trade volume in the active March contract is noted as a dismal 35 contracts as of this writing. The other grains are seen higher this morning as a result of possible Chinese bean sales overnight and as traders rebalance holdings ahead of Friday‘s USDA S&D update. Outside markets are seen as supportive of U.S. grain prices this morning, with U.S. stocks higher as earnings season got off to a positive start with Alcoa reporting better than expected results after the market close yesterday. As of this writing the grain complex is trading higher: soybeans are trading up about 0.2%, wheat is trading up about 0.5%, and corn is seen about 0.5% higher.

U.S. stocks extended their gains Wednesday, recovering from two days of declines, after Dow component Alcoa kicked off the fourth-quarter earnings season on a positive note. The Dow Jones Industrial Average rallied after sliding in the last two sessions. The S&P 500 and the Nasdaq also rose. U.S. stocks are currently trading up about 0.4%, gold is currently trading down about 0.1%, crude oil is trading up about 0.4%, and the U.S. dollar is currently trading about 0.3% higher at 9:00am Chicago time.

11th January 2013

China may step up rice imports from India: US think-thank 11 JAN, 2013, 04.25PM IST, PTI

"China's total rice import was 2-3 million tonnes from Vietnam and India last year. I can't say how much rice has been imported from India but definetly some quantity has been imported for the first time after a gap of many years," US- based International Food Policy Research Institute (IFPRI) Director General Shenggen Fan said at an event here.

106

NEW DELHI: China may enhance rice import from India in coming years in the wake of rise in cost of farm production, an expert said today.

"China's total rice import was 2-3 million tonnes fromVietnam and India last year. I can't say how much rice has been imported from India but definetly some quantity has been imported for the first time after a gap of many years," US- based International Food Policy Research Institute (IFPRI) Director General Shenggen Fan said at an event here. India emerged as the world's largest rice exporter in 2012 beating its Asian counterpart Thailand with shipment of around 10 million tonnes. "It is just a beginning and China's rice import from India could enhance in the coming years with cost of labour, water and land increasing. Also, it is cheaper to import foodgrains from India instead of providing subsidies to farmers," he said. As far as wheat is concerned, the country is buying largely from the US, Canada and Australia and not from India. "However, there is scope for import as India has a massive stocks of rice and wheat," he said on the sidelines of a function here.

India has sufficient rice and wheat stocks due to bumper production. Last year, rice and wheat output was at record 104.32 million tonnes and 93.90 million tonnes, respectively. On poverty level in Asian countries like India and China, Fan said, "The region as a whole is not on track in meeting the millennium development goal (MDG) of cutting the rate of undernourishment by half between 1990 and 2015." Only in the southeastern Asia, the trend is on the MDG target, he said, adding that food and nutrition insecurity continues to be an important challenge in Asia.

"India accounts for some 217 million or a quarter of all undernourished people globally. As a result, India is likely to miss the MDG target," he said. Innovations in agri-technologies, institutions and policy are to be improved to address the challenges of food and nutritional insecurity in Asia, he added. Emphasising that investment in agri-research have substantially reduced rural poverty by stimulating farm growth and reducing food prices, Fan said: "The research finding shows that for every rupee invested in agri-research in India, Rs 13.5 is returned.

"Therefore, Indian government should increase investment in agriculture, rural infrastructure and education as these have high payoffs in terms of raising smallholder farmers' productivity and incomes," he added.

Doubling investment in agriculture research and output maximising scenario results in 261 million people moving out of poverty globally by 2025, IFPRI observed.

PH may have enough rice to feed growing population Written by James Konstantin Galvez,Published on 12 January 2013 The government is currently pushing for a review of its rice sufficiency data, citing that the expected recordhigh palay (unmilled rice) production in 2012 is ―already enough‖ to cover consumption requirements of the 95.8 million Filipinos.

Dante Delima, Department of Agriculture assistant secretary and National Rice Program coordinator, said that they would start by February 2013 the review of rice sufficiency targets in line with the latest population and per capita consumption data provided by the National Statistics Office.

For 2012, Delima said that palay production is likely to reach 18.03 million metric tons (MT) to 18.05 million metric tons, higher than 17.98 million MT forecast of the Bureau of Agricultural Statistics. Meanwhile, the total population of the Philippines as of May 10, 2010 was placed around 92.337 million based on the 2010 Census of Population and Housing. The census counts up to the barangay level were made official with the signing by President Benigno Aquino 3rd of Proclamation No.362 in March 2012.With a 1.90-percent annual growth rate,

107

the country‘s total population is now estimated at about 95.8 million with per capita rice consumption placed at 115 kilos. At this rate, annual rice consumption is pegged at 11.02 million MT, he added.―If we compare the population rate with our production of 18.03 million MT, minus the 351,763MT seed requirement for planting, our total rice equivalent at 65 percent recovery rate is around 11.492 million MT… more than enough to supply our food requirement,‖ Delima said.

At present, the National Rice Program is using 119 kilos per capita under its rice self-sufficiency roadmap. But even at the current consumption rate, Delima said that the country still have a surplus in rice production as compared to the actual population.

Delima, however, said that consumption requirement excludes the rice wastage and use in other purpose other than food, saying that the review will confirm their estimates.―That is why is important that we conduct a review of all the figures/data with regard to our consumption. This will confirm that we are already sufficient in our rice production,‖ he said.

The DA official said that the government may still import about 100,000MT of rice this year to be used as buffer stock, noting that the government needs to secure at least a 90-day rice supply to ensure stable prices.―Traditionally, we are only required to have at least 30-day buffer stock. But for security proposes, we have hiked our rice stock requirement to about 90 days. This will help the National Food Authority [NFA] to stabilize prices and ensure that we have enough supply of rice should there be calamities,‖ he said.

As of December 2012, the BAS said that country‘s rice stock inventory was pegged at 2.61 million metric tons, enough for the next three months.It added that the household stocks would last for 39 days, while stocks in commercial warehouses would last for 20 days and those in NFA depositories would be good for 18 days.

Thai finance minister rejects extra loans for rice pledging scheme Friday, 11 January 2013By MCOT BANGKOK, Jan 10 – Deputy Prime Minister/Finance Minister Kittiratt Na-Ranong has stood firm that the government‘s loan ceiling of Bt150 billion for the highly-criticised rice pledging scheme and the Bt480 billion loan limits for state enterprises will not be expanded.

He said the rice pledging scheme has used up the available loans and the government disagreed with some state enterprises seeking additional loans to finance the programme.

The state enterprises‘ Bt480 billion in loans represent 20 per cent of the national expenditure – the maximum permitted by law.

Urging a speedy release of rice under the plan to enable cash flow, Mr Kittiratt said government agencies responsible for the rice pledging scheme should effectively manage revenue and expense under the governmentapproved Bt240 billion fund for the 2012/2013 harvest year.

The Bank of Agriculture and Agricultural Cooperatives (BAAC) said it has issued Bt113 billion loans for the purchase of 7.5 million tonnes of rice in the 2012/2013 harvest year as it awaits a new injection of Bt150 billion from the Finance Ministry.Wanchai Siriwatanatrakul, director of the BAAC State Policy Department, said the

108

Finance Ministry has so far forwarded Bt55 billion loans to the BAAC for the rice programme and the balance will be gradually handed over to the BAAC. He said the Commerce Ministry has informed the BAAC that it will pay Bt20 billion to the bank soon, adding that a total of Bt85 billion should be fully paid to the bank by the end of this year.

LT Foods seeks more time to ship rice to Indonesia NEW DELHI, JAN. 10:

LT Foods Ltd has sought more time from Indonesian Government agency Bulog to deliver rice shipments.The company had bagged a deal from Bulog in October to supply 30,000 tonnes of rice by December 25 but couldn‘t execute the shipments in time due to lengthy procedures in awarding the contract.

The Indian rice exporter has already shipped out 21,000 tonnes to Indonesia and the remaining 9,000 tonnes are lying at the Kandla Port.―We have sought an extension in the contract till end-January to deliver the shipment,‖ said S. Venkatesh, Head of International Business at LT Foods Ltd. The exporter has nominated vessels to carry the rice cargo and is waiting for Bulog to approve them.Though the tender was awarded in October-end, other formalities such as the verification of stocks by Bulog at the exporter‘s warehouses, issue of contract letter and opening of line of credit took another month, leaving less time for the shipments. LT Foods has raised this issue through the Governments and trade channels both in Indonesia and India.

In 2012, the company shipped 3.2 lakh tonnes of rice to customers in Russia, South Africa, East Africa and Indonesia.

LT Foods‘ stock ended about a per cent lower at Rs 60.10 on the Bombay Stock Exchange on Wednesday.

Nigeria to import 100 rice mills from China: official 14:20 January 11, 2013

The Nigerian Ministry of Agriculture is to import 100 rice mills from China, having signed an agreement with the Nigerian Export and Import Bank as well as the Central Bank of Nigeria, an official said on Friday.

Nigeria's Rice Value Chain Team leader Olumuyiwa Osiname told reporters here that the mills will ensure local rice is processed to meet international standard and strategically made available in all the 36 states in the West African country, with each state getting at least two rice mills.

"The states with higher rice production would get more than two mills," he said, adding that the first 40 mills would be installed before mid-year.

"Most of them are not long grains and then, they are not being processed right," he said in reference to the types of rice and their processing.

"The manual processing like parboiling and soaking, sometimes give the rice odor, which many consumers do not like. There are technologies now that can process the rice the same way as they process in India or Thailand.

We will take the stones off, we will take the smell off, we will polish and repackage," he added.

Osiname said the Nigerian government had already provided farmers with improved seeds to boost rice production in the country, noting the seeds were distributed to farmers to ensure that paddy for the mills were of

109

good quality. This would make the locally-grown rice to be globally accepted, he said further.

He said the total rice production expected under Nigeria's Agricultural Transformation Agenda (ATA) by 2015 was 5.1 million tons of milled rice. "When the 5.1 million tons is added to about 1.3 million tons being produced by farmers who did not join the ATA, the total national production of milled rice would amount to 6.4 million tons," he said.

Vietnamese succeeds in making cosmetics materials from rice bran VietNamNet Bridge – Nguyen Duc Tien, a scientist from the Agricultural Electromechanical Post-harvesting Technology Institute and his associates have successfully invented the technology to make Gamma Oryzanol from rice bran. Gamma Oryzanol can be used to make medicine, cosmetics and anti-aging supplements for women.

Collecting hundreds of micro-nutrients from bran It is estimated that the amount of rice bran discharged by the rice processing establishments in Vietnam is up to 45 million tons, which has been used as the animal feed. Since rice bran usually gets mold during the storage, its nutrients have not been fully exploited.

Besides the nutrients like protein, lipid, glucocide or vitamins, rice bran contains a very important substance – gamma orizanol, an important antioxidant collected from plants, which can help treat ulcers, particularly stomach ulcers, reducing the amount of fat in the blood, helps increase the blood circulation, reduce body fat, prevent the penetration of ultraviolet rays, preventing skin pigmentation.

Gamma Oryzanol from rice bran has been used widely in manufacturing medicine, cosmetics and anti-aging supplements for women, which are especially good to reduce the symptoms in women's menopause and postmenopause period. The products can also be used as supplements to help develop muscles in the body, increase strength.

Vietnam is a big rice producer and exporter. It has been throwing away big amounts of rice bran discharged from the rice processing, while it still has to import Gamma Oryzanol to make medicine and cosmetics. There has been no production workshop in Vietnam which can make out Gamma Oryzanol product, while the Gamma Oryzanol put into production are the imports from Japan, China and some other countries.Having realized the benefits of Gamma Oryzanol and the importance of the development of the technology to make Gamma Oryzanol, Tien and his colleagues have followed a research work relating to the issue and has build up the process of making Gamma Oryzanol from rice bran – a very cheap material.

By-products need to be fully exploited According to Tien, the process of making Gamma Oryzanol comprises of 12 steps. In the pilot production period, Tien and his colleagues could make 568 grams of Gamma Oryzanol products with the purification level of 68.5 percent from 120 kilos of rice bran.

They also collected 5.8 kilos of soap embryo, which is used to make soap, and then make 10 liters of herbal

110

soap from 2 kilos of soap embryo.

Gamma Oryzanol has also been utilized in making supplement food and cosmetics, including lotion and hair cream.

Regarding the production costs of Gamma Oryzanol, Tien said it costs VND1.9 million to churn out one kilo of Gamma Oryzanol which has the same quality with the Gamma Oryzanol now being sold at VND7 million in the market. The figures can prove the high economic efficiency of the production process.

In Vietnam, the exploitation of active biological substance from rice bran, the popular and easily found material, remains open.

The scientific research work by Tien and his associates has been applauded by scientists, because it allows making Gamma Oryzanol the demand for which has been increasing high from food processing, medicine and cosmetics production. The research work would pave the way for the development of the industry of exploiting biological active element from farm produce. After the pilot production period, Gamma Oryzanol would be manufactured in an industrial production scale

11th January,2013 Rumor Mill Says China Stockpiling Rice to Prepare for World War III By news desk on January 10,2013 The dramatic rise in rice imports by China in recent years have puzzled many, including senior economists at the UN‘s Food and Agriculture Organization (FAO), as it is not a demand-supply problem that China is trying to address.

In 2012, China‘s rice imports grew almost four times from around 600,000 tons imported in 2011 to over 2 million tons, prompting the FAO to make an upward revision in its April 2012 report. The FAO said in the report, ―The upward revision to world imports stems largely from heightened forecasts for...China which has been very active buying rice since January.‖ However, it was puzzling to note that the report went on to add, ―World stocks at the end of seasons in 2012 are foreseen to rise by over 8 percent (11.7 million tonnes) to 152.8 million tonnes. Increases are expected to be widespread and especially marked in China.‖ Oryza contacted senior economist Ms. Calpe Concepción at FAO‘s Rome headquarters to ask how can a country both import record high volumes of rice and also end up with record carryover stocks. She said in May 2012, ―Given official statistics showing large production increases for several years and evidence (from household surveys) of falling per caput consumption along with slow population growth, it is inevitable that the excess supply ends in carryover stocks. In addition, government agencies are reported to have purchased much rice in recent months, which will also tend to beef up the country‘s inventories. However, I believe, no one can really tell how much rice is held in stocks by China.‖ Almost a year later, the uncertainty over rice stocks in China continues. Yesterday, Ms. Calpe told sources, ―It‘s very difficult to get any clue about the stocks. Even developed countries have problems, it‘s general. FAO has very high estimates for stocks in China, and we‘re worried that this might not be the case.‖ China is the world‘s largest producer of rice. In 2012, China‘s rice production increased for the third consecutive year, reaching about 140.4 million tons, just sufficient to meet its domestic needs.

However, some observers say that China‘s rice imports are a part of a grand strategy. A commodity market news website (marketdailynews.com) claims that China is stockpiling not just rice, but also milk powder, iron,

111

gold and other items to build food stocks and diversify its cash assets into physical goods for fear that the value of its Western currency reserves will crash sooner than later. China could also be preparing to wage a war against the U.S., the website claims. It says, ―Governments around the world are stockpiling food, supplies, precious metals and arms, suggesting that there is foreknowledge of an impending event [World War III].‖

Thailand Rice Sellers Increase Some of Their Quotes; Vietnam Rice Sellers Lower Some of Their Quotes; India, Pakistan Rice Sellers Keep Indications on Hold By news desk on January 10,2013 Thai rice sellers increased their quotes for broken rice, A1 Super, by about $5 per ton to about $520 - $530 per ton today. Viet rice sellers lowered their quotes for 5% broken rice by about $5 per ton to about $405 - $415 per ton. Indian and Pak rice sellers kept their quotes unchanged.

Thai 5% rice is quoted around $545 - $555 per ton, about a $140 per ton premium over Viet 5% rice shown around $405 - $415 per ton, down about $5 per ton from yesterday. Indian 5% rice is quoted around $430 $440 per ton, about a $20 per ton premium over Pak 5% rice shown around $410 - $420 per ton.

Thai 25% rice is quoted about $530 - $540 per ton, about a $155 per ton premium over Viet 25% rice indicated around $375 - $385 per ton. Indian 25% rice is quoted about $385 - $395 per ton, about a $35 per ton premium over Pak 25% rice shown around $350 - $360 per ton.

Thai parboiled rice is quoted around $565 - $575 per ton. Indian parboiled rice is quoted around $420 - $430 per ton, about a $30 per ton discount to Pak parboiled rice shown around $450 - $460 per ton.

Thai broken rice, A1 Super, is quoted about $520 - $530 per ton, up about $5 per ton from yesterday and about a $170 per ton premium over Viet broken rice shown around $350 - $360 per ton. Indian broken sortexed rice is quoted about $340 - $350 per ton, about $10 per ton premium over Pak broken sortexed rice indicated around $330- $340 per ton.

India Rice Exports to Iran Estimated to Decline 30% in 2012-13, Say Exporters By news desk on January 10,2013 India‘s rice exports to Iran in the year ending March 31, 2013 are expected to decline to about 700,000 tons, down around 30% from about 1 million tons exported in 2011-12, according to Indian rice exporters.

The decline in Indian exports to Iran is mainly due to higher domestic production in Iran last year. In the Iranian year 2011-12 (March 20 to March 19), Iran‘s paddy rice production is estimated to reach about 2.4 million tons, against a consumption of around 2.8 million tons. The Iranian government has said that it hopes to achieve ricesufficiency in 2012-13 and the surplus rice that is being imported will be used as buffer stocks.

India, the United Arab Emirates (UAE) and Pakistan are the main suppliers of rice to Iran. Most of India‘s rice shipments to Iran comprise basmati rice. Indian rice exporters say that higher demand for Indian basmati in Iraq (up about 50,000 from last year‘s 250,000 tons) will partially offset the decline in rice exports to Iran.

Thailand Government Requires $7.2 Billion for 2012-13 Rice Mortgage Program; Pledging 75% Higher from Last Year By news desk on January 10,2013

112

The Thai government is keen to increase the loan guarantee from the sanctioned Bt150 billion to Bt220 billion (about $6 billion) to help purchase paddy rice form farmers under the second year of the rice mortgage program (October 2012 – September 2013).According to government sources, the state-run Bank for Agriculture and Agricultural Cooperatives (BAAC) has already spent Bt113 billion (over $3.7 billion) to purchase about 7.54 million tons of paddy (about 5 million tons, basis milled) from farmers in the first phase of the rice mortgage program 2012-13 that end in February. The quantity of paddy pledged under the program is about 75% higher than the same period last year, according to sources.

It is estimated that of the 113 billion baht (over $3.7 billion) spent by the BAAC under the rice mortgage program, about 40 billion baht (about 1.3 billion) was funded by release of rice from government stocks.

Pakistan May Grant India ‗Most Favored Nation‘ Status in January By news desk on January 10,2013

The Pakistan government is likely to grant the belated Most Favored Nation (MFN) status on India within this month, which will make way for trade of several items including rice across the border, according to local sources.

India granted the MFN status on Pakistan in 1996 under World Trade Organization (WTO) obligations, but Pakistan has failed honor its obligations as a WTO member before the December 31 deadline due to opposition by agriculture, textile and some other groups.

The groups opposed to MFN status for India say that influx of highly subsidized rice from India will hurt the returns of local farmers. Recently the President of Pakistan‘s Basmati Rice Growers Association (BGA) told Oryza that farmers will continue to oppose MFN to India until their concerns are addressed.

However, sources in Pakistan‘s Commerce Ministry said that such problems will be resolved and what has been agreed in principle will soon be made official. Sources said that the Pakistani government wants to improve relations with its neighbor and the process of granting MFN to India is likely to be complete in the next few weeks.

Nigeria Targets 1.3 Million Tons Rice Production in Dry Season By news desk on January 10,2013

The Nigerian government is targeting to increase rice production by helping farmers grow an additional 1.3 million tons of rice in the dry season (January to April), which will boost the country‘s total rice production to reach a record 4 million tons in 2013.

According to local sources, the government has initiated two programs to increase rice production this year: Flood Recovery, Food Production Program and Expanded Dry Season Farming Program. About 880,000 tons of rice is targeted to be grown under the Flood Recovery Food Production Plan, while rest of the targeted volume of rice is expected to be grown under the Expanded Dry Season Farming Program.

According to officials in the Agriculture Ministry, the government has begun distribution of about 14,300 tons of high-quality seeds across the country for dry season rice farming which is expected to cover around 300,000 hectares. The government is also distributing about 5,000 water pumps to help farmers irrigate their paddy fields.

Nigeria produces about 2.8 million tons of rice annually, but it also imports around 2.5 to 3 million tons of rice per year. The African country is targeting rice-sufficiency by 2015, and aims to increase production to over 6.5 million tons in three years. Currently, most of the rice cultivation in Nigeria is rain-fed and is carried out between May and December.

113

U.S. Rice Sellers Head to Sidelines, Hopeful Ahead of USDA Reports

By Oryza News on January 10,2013

The U.S. cash rice market was muted today as most sellers stayed on the sidelines ahead of tomorrow's USDA WASDE report and Rice Stocks Report, showing U.S. rice stocks as of December 1. Most analyst do not expect any surprises for the rice market however others are concerned about volatility in the other grains considering that the corn market has made limit moves on 5 of the last 7 January WASDE report release dates.

As of today, most offers from farmers could still be found around $15.00 per cwt (about $331 per ton) for January-February-March delivery for 50 lbs of head rice while offers from resellers fell with the future market to more attractive levels, attracting little interest.

Meanwhile, bids from most mills and exporters held steady near $14.45 per cwt (about $319 per ton) for the same delivery period although there was nothing traded at these levels. Analyst insist that it will take at least $15.00 per cwt (about $331 per ton) to get farmers to sell their rice, especially in advance of tomorrow‘s reports which some are hopeful will be friendly to rice.

In the meantime, today the USDA reported that for the week ending on January 3, U.S. rice exporters sold 40,400 tons, which was 24% lower than last week and 53% lower than the prior 4-week average, with the primary destinations including: 20,800 tons to Taiwan, 14,900 tons to Canada, 12,300 tons to Turkey, 6,300 tons to Haiti and 4,500 to Panama.

U.S. rice exporters shipped 104,800 tons, which was roughly double last week and 11% higher than the prior 4week average. The primary destinations included: 31,400 tons to Mexico, 26,000 tons to Japan, 22,300 tons to Turkey, 14,700 tons to Haiti, and 3,500 tons to Canada.

A Quick Glance at World News - What the Financial Times, Wall Street Journal and New York Times Are Reporting Today By news desk on January 10,2013

Financial Times *Morgan Stanley is to cut 1,600 jobs in one of its most prominent businesses in the latest example of a Wall Street investment bank axing staff to reduce expenses. The job cuts amount to about 6% of the total headcount in the bank‘s institutional securities group, which helps companies‘ complete big mergers and acquisitions and trades bonds and stocks on behalf of clients. *Chinese exports and imports rebounded strongly in December, pointing to solid economic growth both in China and abroad. Exports rose by 14.1% from a year earlier, the fastest in seven months and well above November‘s 2.9% pace and Imports increased by 6% in December from a year earlier after flat lining in November. *U.S. President Barack Obama has chosen Jack Lew, his chief of staff and a longtime Democratic aide and budget expert, to replace Tim Geithner as Treasury secretary, according to people familiar with the situation. *BATS Global Markets, the third-largest U.S. stock exchange operator by volume, has alerted traders that its systems have executed hundreds of thousands of transactions that may have violated securities rules. *Wall Street‘s ―fear index,‖ Vix index that tracks investor expectations of market volatility, has tumbled to a fresh 5½-year low, touched 13.2 points on Wednesday, as investors turn increasingly positive on the outlook for global stock markets.

114

*Robert Khuzami, the enforcement director of the top U.S. securities regulator, has announced he is stepping down after a four-year tenure marked by aggressive insider trading investigations and criticism for his response to the U.S. financial crisis. *Syria struck a deal on Wednesday to release 2,130 of prisoners in exchange of 48 Iranians captured by rebels, Turkish negotiators said. *The FTSE 100 on Wednesday hit its highest point since May 2008, rising above the 6,100 level it last reached when oil was at $135 a barrel and Lehman Brothers was four months away from collapse.

Wall Street Journal*Google Inc. Executive Chairman Eric Schmidt said he told North Korean officials that they must drop barriers to global Internet access if they hope to develop their economy. *American International Group Inc. decided Wednesday to pass on a shareholder lawsuit that accuses the U.S. government of unfairly burdening the company during its financial-crisis rescue, in a move that could snuff out a brewing controversy for the insurer. *Japan's Prime Minister Shinzo Abe, who returned to power with a pledge to "revive Japan," has started taking steps to build up the nation's defense and diplomatic position to counter China's rise—a move that could add to tensions between the two. *Ailing Indian carrier, Kingfisher Airlines Ltd., aims to start limited operations by the end of March and remains confident of securing a deal with an investor soon, its chairman said late Wednesday. *U.S. President Barack Obama is considering taking executive action to stem gun violence, Vice President Joe Biden said Wednesday, suggesting that some federal gun regulations will change even if support does not materialize in Congress. *India summoned Islamabad's envoy in New Delhi on Wednesday to address claims that Pakistan's military killed two Indian soldiers and decapitated one of the corpses after a firefight in the divided Himalayan region of Kashmir. *Canadian Prime Minister Stephen Harper's government promised to push new oil pipelines to the Pacific—a gateway to thirsty Asian markets—after Washington early last year rejected a pipeline expansion to boost Canadian exports to the U.S. *The OECD Wednesday showed consumer prices in its 34 member countries rose 1.9% in the 12 months to November, compared with 2.2% in the 12 months to October. November's decline followed three straight months of increases and brought the rate back to July's level.

New York Times *Credit Suisse said on Thursday it is selling its exchange-traded fund business to U.S. rival Black Rock Inc. for an undisclosed price.

115

*President Mahmoud Abbas of the Palestinian Authority met on Wednesday in Cairo with Khaled Meshal, the political chief of Mr. Abbas‘s rival, Hamas, but it was unclear if they were able to overcome any of the

differences that have fueled a bitter five-year feud. *Egypt‘s largest ultraconservative Islamist party elected a new leader on Wednesday after the previous one broke away to form his own political group, following months of infighting. *A former analyst, Wesley Wang, at SAC Capital Advisors who has become a crucial informant in the government‘s insider trading investigations avoided prison on Wednesday after a judge sentenced him to probation. *Tesco, the world's third largest retailer, named Chris Bush as managing director of the British business, as it showed signs of a revival in its home market with a rise in underlying Christmas sales. *Iran‘s central bank disclosed Wednesday that the annual inflation rate hit 27.4% at the end of 2012, one of the highest rates ever quoted by Iranian authorities.

Oryza Overnight Recap – Chicago Rough Rice Futures Seen Slightly Lower as USDA Reports Reduced Export Sales By news desk on January 10,2013 Chicago rough rice futures for March delivery were trading down 2.5 cents per cwt (about $1 cents) at $15.210 per cwt (about $335 per ton) as of 9:00am Chicago time. Rough rice futures are seen a touch lower after trading either side of unchanged overnight. Trade volume remains extremely light as all eyes are focused on tomorrows USDA S&D update. Despite impressive export shipments of over 104,000 MT being reported this morning traders appear unimpressed. The other grains a fairing a little better this morning and are seen mostly higher.

Outside markets are supportive of firmer U.S. Agriculture prices as crude prices are seen firmer and the U.S. dollar softer. As of this writing the grain complex is trading higher: soybeans are trading up about 0.2%, wheat is trading up about 0.7%, and corn is seen about 0.4% higher.

U.S. stocks gained at the open Thursday, as a strong export data from China coupled with upbeat comments from the ECB on the euro zone trumped a weaker-than-expected jobless claims report. The Dow Jones Industrial Average opened higher after posting a modest gain in the previous session. The S&P 500 and the Nasdaq also rose at the open. Most key S&P sectors were in positive territory, led by financials and techs. U.S. stocks are currently trading up about 0.3%, gold is currently trading up about 1.1%, crude oil is trading up about 1.1%, and the U.S. dollar is currently trading about 0.7% lower at 9:00am Chicago time.

USDA today reported in the week ending January 3, U.S. rice exporters sold 40,400 MT for the 2012/13 marketing year, down 24% from the previous week and 53% from the prior 4-week average, including 20,800 MT to Taiwan, 14,900 MT to Canada, 7,300 MT to Turkey, and 4,500 MT to Panama. During the same week U.S. exporters shipped 104,800 MT, up noticeably from the previous week and up 11% from the prior 4-week average, including 31,400 MT to Mexico, 26,000 MT to Japan, 22,300 MT to Turkey, 14,700 MT to Haiti, and 3,500 MT to Canada Oryza Rice Currency Analysis for Today – Euro Rallies Nearly 1.5% on Upbeat ECB Comments

By Oryza News on January 10,2013

U.S. dollar index was down -1.03% from the open today, when it traded at 79.731 at the close.

Euro ralied +1.46% to around 1.3254 by end of day, climbing the most in 5 months against the dollar as ECB President Mario Draghi said the economy should gradually recover, adding that the decision to refrain from

116

cutting interest rates was unanimous. Investors were encouraged after Draghi gave a positive outlook and expressed confidence the region's financial crisis is being resolved. The European economy is expected to return to health during the present year as the region‘s bond markets stabilized following three years of market turmoil.

Thai baht closed the day +0.41% stronger, trading at 30.25 at the close of business today.

Indian rupee was +0.33 stronger, when it traded at 54.5750 at the close of business today.

Brazilian real was +0.58% stronger than the open at today‘s close, when it ended at 2.0290 reais per dollar.

Pakistan rupee was -0.03% weaker at the close today, when it traded at 97.3200.

Vietnamese dong was unchanged from the 20,840 dong per dollar open, at the close of business today.

Mexican peso recovered further today, in the order of +0.80% by the close, and still continuing to remain ―strong‖, trading way below the 13 peso per dollar pivot, at 12.6213 pesos per dollar by the close of business.

Chinese yuan was +0.03% stronger today at the close, when it traded at 6.2245.

Argentine peso was -0.04% weaker from the open, when it closed at 4.9381 pesos per dollar today

Oryza Afternoon Recap – Chicago Rough Rice Futures Slide Ahead of USDA S&D and Rice Stocks Reports Due out Tomorrow

By Oryza News on January 10,2013

Chicago rough rice futures for March delivery settled 12.5 cents per cwt (about $6 per ton) lower at $15.110 per cwt (about $333 per ton). After trading mostly sideways overnight the rough rice futures market came under consistent and aggressive selling pressure to close sharply lower on the day. Traders says specs have returned to the market to place last minute bearish bets on tomorrow's USDA S&D and rice stocks reports. Some industry experts feel that the active bears continue to eye large Asian rice stocks as a reason to add to short holdings. The other grains turned negative in late session trading despite a softer U.S. dollar and continued strength in crude markets as a result of positive remarks from European leaders. Soybeans finished the day about 0.4% lower at $13.7975 per bushel; wheat finished down about 0.1% at $7.4450 per bushel; and corn finished the day about 0.7% higher at $6.9875 per bushel.

U.S. stocks traded near session highs in volatile trading Thursday, with the S&P 500 trading near a five-year closing high, following a strong export data from China and upbeat comments from the ECB on the euro zone.

Still, trading volume was light as investors hesitated to jump in ahead of next week's flurry of earnings reports.

The Dow Jones Industrial Average traded in positive territory, after posting a modest gain in the previous session. The Dow has been trading in a narrow 60-point range. The S&P 500 and the Nasdaq were also higher.

The S&P hovered near its five-year closing peak of 1,466.47. All key S&P sectors turned positive, led by financials and energy. U.S. stock markets are currently trading about 0.5% higher, gold is trading up about 1.1%, crude oil is currently trading up about 0.9%, and the U.S. dollar is trading about 1% lower at about 2:00pm Chicago time.

Looking to the daily continuation chart of Chicago rough rice futures for March delivery, after two consecutive session of flat trade the bears returned to the market and have dragged prices back below the 10-day moving average which is noted at $15.190 per cwt (about $335 per ton). The market remains trapped in bearish territory between the lower Bollinger band and the 20-day moving average which are seen at $14.940 and $15.386 per cwt (about $329-$339 per ton) respectively. The lower Bollinger band acts as the current price objective and could provide momentum to a market that may test recent a recent multi-week low of $14.900 per cwt (about $328 per ton). A negative sloped 20-day moving average, as well as MACD histogram confirms a short term bearish trend. Today‘s trading range is noted as $15.110-$15.260 per cwt (about $333-$336 per ton).

Wednesday, there were 208 contracts traded, down from 291 contracts traded on Tuesday. Open interest – the number of contracts outstanding – on Wednesday rose by 28 contracts to 14,491.

117

For Magazine Subscription & Advertisement Contact: Mujahid Ali Cell: 92+321-369 2874 mujahid.riceplus@gmail.com

118