Weekly RICE News Updates 1 Jan-5Jan, 2013 Quarterly Riceplus Magazine (www.ricepluss.com)
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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.
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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.
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Bicol upland farming to boost nat’l rice production By Sally A. Atento,Wednesday 2nd of January 2013
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.
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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. 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.
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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 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
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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. 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
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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. 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 ď‚ˇ
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)
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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. 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
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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 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."
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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. 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
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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:
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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.
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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
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Vietnamâ€˜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. Vietnamâ€˜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.
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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, 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
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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. 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.
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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 todayâ€˜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. 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.
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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 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.
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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 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.
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*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*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 Oilâ€˜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 Shellâ€˜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.
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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 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.
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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. ―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
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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 97.6-percent 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 governmentâ€˜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. â€” BM, GMA News
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
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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 ď‚ˇ
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.
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.
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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. 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
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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: firstname.lastname@example.org, 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 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
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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.
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
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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 Asiaâ€˜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 needs of Indonesia, the Philippines, and
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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.
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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.
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.
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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 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 â€“ 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
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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 20day 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.
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*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. *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.
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*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 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
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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. 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
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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 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
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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. ―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.
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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 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.
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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.
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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. "LetĂ˘â‚Źâ„˘s not use up all of last year's import as this year's entire stock," he told Tempo.
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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 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. Itâ€™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 didnâ€™t receive the full import figure from India while Vietnam managed to fulfill the figure,â€• 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.
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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 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.
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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. "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.
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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 worldâ€˜s third-largest rice consumer after China and India. 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.
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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.
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