12th june,2014 daily global rice e newsletter by riceplus magazine

12th June, 2014

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Experts question motivation behind China’s big rice purchases Paddy area unlikely to reduce in Punjab, Haryana despite weaker monsoon forecast Vigorous planting of rice, corn in 8 major regions Indonesia could double rice imports as election, El Nino loom Singapore rice imports Nigeria: Anambra to Embark On Mass Rice Production UPDATE 1-Indian monsoon rains weak after late arrival 5 reasons you can stop worrying about El Niño’s disastrous effect on Indian farmers Thai junta secures $1.5b loan for rice payments Nagpur Foodgrain Prices Open- June 12 Commerce mulling to attract more buyers in rice selling scheme FAO predicts Thailand could export more rice Stockpiling helps to boost rice farmers' profits El Niño Is Coming, And Food Prices Are Rising USA Rice Advocates Staying the Course on Dietary Guidelines Rice exporters' grouse US.-Grown Rice Fuels 'Wednesday Paella' Promotion in Top Export Market CME Group/Closing Rough Rice Futures Annual Rice Field Day promises to educate, coordinate producers

News Detail…

Experts question motivation behind China’s big rice purchases VietNamNet Bridge – Most Vietnamese exports to China, either through official channels or across the border, have been meeting obstacles, except for rice. Experts question why this is happening.

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Advisor to the Vietnam Food Association (VFA) Truong Thanh Phong said Chinese merchants have been stepping up rice imports from Vietnam recently. This has led to a domestic rice price increasing rapidly in recent weeks.The Can Tho port area in the Mekong River Delta is very bustling with over 30 ships going in and out. They ship rice to the border gates where rice is carried across to China.Chinese businessmen are buying as much as Vietnamese farmers can provide. The high supply has made domestic 5 percent broken price soar by VND200 per kilo to VND8,300 per kilo.

The phenomenon, in the eyes of the VFA advisor, is ―abnormal‖.Meanwhile, Vietnamese businessmen believe that Chinese merchants are trying to collect rice because of the tension escalating in the East Sea.However, no one can say for sure what the true reasons are. A report of VFA showed that the rice export volume across the border to China soared to 600,000 tons, a sharp increase of 50 percent compared with the same period of last year.―The domestic price has been escalating rapidly these days, while the upward trend will continue in the upcoming days, since ships are still awaiting rice,‖ Phong said.Vietnam witnessed a sharp decline of 20 percent in the export amount and export turnover in the first four months of the year.Therefore, the higher demand from China should be seen as good news for Vietnamese exporters.

If the Chinese high demand is maintained, Vietnam will be able to continue selling rice to China. This means that Vietnamese farmers would not have to worry about the sale of the summer-autumn crop rice they will harvest soon.However, rice exporters have also been warned that they could face very high risks if the Chinese suddenly stop importing rice from Vietnam.China unexpectedly became the Vietnam’s rice biggest importer one year ago. In 2013, Vietnam sold 2.2 million tons of rice through official channels to China, which accounted for 33 percent of the total amount of 6.6 million tons of rice exported to the country with 1.4 billion consumers.As such, China now consumes some 50 percent of Vietnam’s total output.

High risk: Vietnam loses markets Vietnamese rice experts have admitted that Vietnam has lost many important markets at the hands of direct rivals.After the global economic crisis, a lot of rice import countries began making heavier investments to produce food themselves to ease reliance on imports. Indonesia, for example, which imported 1.2-1.4 million tons of rice a year from Vietnam in the past, has stopped buying since 2012-2013.The Philippines, which imported 2 million tons of rice a year in the past, has announced that it would buy 500,000-1.2 million tons this year. Meanwhile, many contracts have been signed with Thailand – Vietnam’s biggest rival.Experts have warned that the loss of loyal markets and the increased reliance on China will bring high risks to Vietnam.

Mot The Gioi Tags:Vietnam,rice export,the Philippines,bidding,

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Paddy area unlikely to reduce in Punjab, Haryana despite weaker monsoon forecast Ikhhlaq Singh Aujla,TNN | Jun 12, 2014, 05.14 AM IST

CHANDIGARH: Forecast of below normal monsoons this year in northwest India is unlikely to change the cropping pattern of farmers in the country's grain bowl - Punjab and Haryana - in the current kharif season. The India Meteorological Department (IMD) has forecast that monsoons are likely to be 85% of the normal in northwest India.Punjab and Haryana are battling with crop diversification to reduce depletion of groundwater due to higher area under water-guzzling paddy crop. To irrigate their fields, farmers in both states draw groundwater using tubewells, which has lowered the water table to alarming levels, even if rainfall is deficient or scanty.As per the data prepared by the hydrology wing of Haryana agriculture department, groundwater in at least 68 of the 124 administrative blocks of the state has been declared as overexploited.

In Punjab, the situation is grimmer as 103 blocks out of 137 are overexploited as per data prepared by the Central Ground Water Board (CGWB).Weaker monsoons are likely to put further pressure on groundwater with farmers in Punjab and Haryana likely to draw more subsurface water to irrigate paddy fields. Transplantation of paddy, which is Punjab's biggest kharif crop, began on Tuesday. Punjab has a target of bringing 26.40 lakh hectares (ha) under rice cultivation as compared to 27.73 lakh ha in 2013. Target area for paddy this season in Haryana is 11.50 lak ha, which was 12.28 lakh ha in 2013.

Stating that there was no reason to panic due to deficient rainfall in the region, Punjab director of agriculture Mangal Singh Sandhu said, "We have assured irrigation in about 98% of the net sown area in the state so weaker monsoons are unlikely to impact farmers much. However, to save precious groundwater and help farmers in bringing down their input costs, we are putting thrust on direct seeded rice (DSR) and even motivating them to grow maize, which requires much lesser water. Maize seed is being offered to farmers on 50% subsidy. We hope to increase the maize acreage to 2 lakh ha this season as against 1.52 lakh ha in 2013."Meanwhile, Haryana agriculture department officials are planning to meet the experts of Chaudhary Charan Singh Agricultural University (CCSHAU), Hisar to draw a contingency plan to tackle poor rainfall in the state. "Crop-specific and region-specific plan will be made and farmers will be advised accordingly to tackle the likely shortage of rainfall this season," said a senior official of the state farm department.

Vigorous planting of rice, corn in 8 major regions CATEGORY: AGRI-COMMODITIES 12 JUN 2014 WRITTEN BY ALLADIN S. DIEGA

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A WEEK before weathermen officially declared the onset of the rainy season, the major agricultural regions in the country were already readying their lands for planting, according to the monthly regional agricultural situation report of the Bureau of Agricultural Statistics (BAS) for the month of May.In the Ilocos Region, farmers in the eastern and northern municipalities have already harvested their palay, while palay seeds for the next cropping are being distributed in some municipalities, even with the irrigation water level have continue to decrease due to very warm weather.

Well-placed irrigation in Ilocos Sur has allowed the areas to be planted with palay earlier than usual and the crops already are in reproductive stage, while in several municipalities, palay are in vegetative stage. The remaining municipalities are engaged in palay-seed sowing activities.In Ilocos Norte, harvesting of corn for both white and yellow were noted in seven municipalities. In Ilocos Sur, harvesting of yellow corn was still ongoing, with several municipalities still at the milking stage.In Pangasinan, harvesting of corn areas was already completed with an average yield of 5.51 metric tons per hectare, the BAS report said.In Bicol, farmers in Albay had started planting palay, with other municipalities into land preparation, while harvesting of corn areas are ongoing.In Occidental Mindoro, about 19,087 hectares of irrigated palay areas and 8,050 hectares of corn areas were harvested with an average yield of 4.3 metric tons (MT) and 4.38 MT, respectively.

In Romblon, lesser farm activities on crop production were undertaken due to intense dry weather.In Western Visayas, majority of municipalities are already into planting activities, with few engaged in harvesting palay, the BAS said.Most palay in Aklan, for instance, were harvested, while palay in other areas are on reproductive to maturing stages, while in irrigated and rainfed palay areas, land preparation are ongoing in the central and southern parts of Antique due to early onset of rain.Erratic harvesting of palay in Capiz is also ongoing and planting of palay was limited in rainfed areas because of lack of water supply, but farmers are already planting corn in several areas, according to the BAS report.Land preparation of palay farms was noted in Guimaras while scattered planting of palay through dry seeding was also observed.In Iloilo, plowing and cleaning of dikes have started, with dry seeding in rainfed palay farms being done.

Harvesting and planting of palay and sugarcane were noted in Negros Occidental.In Clarin, Bohol, seven hectares of palay farms were planted with Mestizo 20, a fast-growing variety.The early planting of irrigated areas was sponsored by Department of Agriculture (DA) in the Central Visayas region, as part of the rehabilitation effort for the provinces struck by an earthquake last year, according to the DA in a separate statement.The rehabilitation services came with insurance from the Philippine Crop Insurance Corp. and a sack of urea per hectare given free.In Sagbayan, Bohol, five hectares of irrigated palay areas were planted with white corn.Intermittent rains in Negros Oriental has allowed for the planting not only of palay and corn, but also sugarcane and banana, while first cropping of corn areas was noted province-wide.Areas in Siquijor province are also being planted with corn. .For Mindanao, only three regions have shown active agricultural activities, according to the Bas monthly update.The Zamboanga Peninsula is also planting corn and, at the same time, rice harvest was reported.Palay areas in Zamboanga City are ready for harvest with some municipalities preparing their land for planting. Corn areas were on vegetative to maturing stages in some areas.About a hundred hectares of the total irrigated palay areas and 700 hectares of upland palay areas were planted in Zamboanga del Norte. In Zamboanga Sibugay,

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land preparation was noted in rainfed and irrigated palay farms with transplanting in some irrigated palay areas were observed.

Corn farms in Sibugay were on vegetative stage.In the Soccsksargen region, particularly in South Cotabato, more farmers planted cassava instead of palay, to serve as an alternate crop for corn because of growing demand from private companies for industrial use, including for feed ingredients, in which both corn and cassava are used.The Caraga region has shown the most number of agricultural activities in the month of May.In Butuan City and Las Nieves in Agusan del Norte, land preparation of palay farms has started, while most palay areas in Buenavista and Nasipit were on maturing to harvesting stages.Farmers in Agusan del Sur are also harvesting their palay, while palay farms in the upper portion of NIS Canal in Bayugan City has started land preparation activities.

About 807 hectares and 334 hectares of irrigated and rainfed palay farms were harvested respectively in Alegria and Placer, Surigao del Norte.Palay farms in municipalities of the Dinagat Islands were also being planted with palay while the remaining municipalities are into land preparation, with several areas unable to till the soil for lack of water.Harvests of palay farms in Surigao del Sur in the month of May were completed, with harvests in some areas still ongoing. In Tandag City, 10 percent of the total palay farms were to be harvested until the first week of June. Other areas in the province are being tilled and readied for palay seed bedding activities, while in Madrid, most of the palay farms were already planted.Corn in Butuan City and Las Nieves, Agusan del Norte were on reproductive stages, while 18 hectares of traditional white corn were planted in the municipality of Tubay, with a hectare planted to modern open pollen corn varieties (OPV) at the vegetative stage.

In Agusan del Sur, most corn areas were on reproductive to maturing stages, and in Dinagat Islands, harvesting of modern OPV white corn in the municipality of Basilisa, Cagdianao and Libjo was noted by Bas, while most corn areas in the municipalities of Basilisa, Libjo, Dinagat and Cagdianao were on maturing stages.

Alladin S. Diega

Indonesia could double rice imports as election, El Nino loom Tue Jun 10, 2014 8:32am GMT

By Michael Taylor JAKARTA, June 10 (Reuters) - Indonesia could more than double its rice imports this year to keep domestic food prices stable as an election looms and with a possible El Nino weather pattern on the horizon, industry officials and analysts said.The outgoing administration of President Susilo Bambang Yudhoyono could set aside its key self-sufficiency targets, importing as much as 1.5 million tonnes of rice to guard against spikes in food prices that could risk social unrest, they said.Bigger purchases by the world's fifth largest buyer of the grain would be good news for growers that typically supply the country such as Thailand and Vietnam.Bangkok wants to offload grain from a controversial stockpiling scheme at the heart of its recent political turmoil, while Hanoi is looking to follow up on its successful bid to supply 800,000 tonnes of rice to the Philippines.

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Singapore rice imports HA NOI (VNS) — A number of Singaporean businesses paid due attention to Vietnamese rice, especially Jasmine rice, and affirmed that they will continue to import the Vietnamese rice. The statement was made during a twoday working visit to Singapore early this week led by Deputy Minister of Industry and Trade Tran Tuan Anh.During the meeting with Singaporean businesses, Chairman of the Singapore Rice General Importers Association Andrew Tan stated that the volume of rice imported by Singapore from Viet Nam has surged four times during the 2008–13 period.

Vietnamese rice currently accounts for 28 per cent of Singapore's import market share.Tan noted that for the last few years, price of Vietnamese rice has been competitive and its quality has also improved significantly owing to the application of modern technology.Anh claimed that Singapore has remained a potential market for Vietnamese rice as all varieties of Vietnamese rice meet Singapore's standards.In addition to importing rice for domestic demands, Singapore is also considered an ASEAN commercial hub and a gateway for Vietnamese rice to enter Indonesia, the Philippines and a number of African markets, Anh added.

Singapore has remained one of Viet Nam's leading trade partners, with a bilateral trade of US$8.4 billion last year, of which $2.7 billion came from Viet Nam's exports to Singapore.Bilateral trade between the two countries in the first four months this year surged 21.2 per cent to nearly $3.3 billion, with agricultural produce of rice, pepper and seafood being Vietnamese staple key exports. — VNS Image:The number of rice imported from Viet Nam increased four times from 2008 to 2013 and now accounts for 28 percent of the rice market in Singapore. — Photo24h

Nigeria: Anambra to Embark On Mass Rice Production

BY BEATRICE ONUCHUKWU, 12 JUNE 2014

Awka — In what is seen as a practical demonstration of his administration's determination to fulfill his campaign promise of revolutionising agriculture in Anambra State through increased output in food production, self-sufficiency, wealth creation and job opportunities, Governor Willie Obiano has taken a giant step towards making the state a leading producer of rice in Nigeria.The governor gave the assurance that his administration would boost rice production in the state from the present 80,000 metric tons to 400,000 metric tons.

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Governor Obiano who made this known during the flag-off of the multi-billion naira Cache farm project, a commercial agricultural venture at Anaku, Ayamelum Local Government Area of the state, said the government had commenced the distribution of 120,000 metric tons of high-yielding rice specie to farmers for this year's planting season through their various cooperative societies which, he noted, would give the state over 300,000 metric tons of rice at harvest.The agro industry is a joint venture of the state government and a private investor, COCHEDS, with a landmass of 2,500 hectares of rice and a production capacity of 120,000 metric tons per annum in the first phase.

The governor pointed out that the importance of the event could be understood after examining its projected impact on the lives of the people, adding, "this enterprise will generate about 1000 full-time and seasonal jobs for youths and women across the entire rice value chain."The farm is expected to produce 8,000 to 12,000 metric tons of paddy rice per annum with an expected income of N400 million to N600 million per annum from paddy when fully developed. At an estimated market value of N140,000 per metric ton of processed rice, the expected income will be between N784 million to N1.176 billion per annum when the production and processing infrastructure are fully developed.

These estimates fall nicely into my campaign promise to Ndi-Anambra that we shall drive development through agriculture to create jobs, jobs, jobs, boost our domestic economy and shore up the revenue profile of the state," he said.He said the state government has already made an initiative commitment of N300 million in the partnership and has structured the venture to benefit thecommunity, the state and the country

UPDATE 1-Indian monsoon rains weak after late arrival Thu Jun 12, 2014 3:03pm IST

By Ratnajyoti Dutta NEW DELHI, June 12 (Reuters) - India's monsoon rains were 48 percent below average levels in the week to June 11, data from the weather office showed on Thursday, reflecting the late onset of the annual rains over the southern Kerala coast.During the initial days of the June-September wet season, summer crops such as rice, corn, soybean and cotton are not greatly affected by the quantity of rains. The distribution of rainfall in midJuly, after the monsoon covers the entire Indian landmass, is more important for their growth.India's farm sector accounts for 14 percent of its nearly $2 trillion economy.

Poor rains this year could hit the summer crops, raising food prices and pressuring economic growth that has nearly halved to below 5 percent in the past two years."We expect the weak phase to continue until the middle of next week," said a weather official who did not want to be named. Monsoons this year started on a weak note, arriving over India's southern coast about five days behind the usual date of June 1.India's weather office

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forecast below average rainfall in 2014, with a one in three chance of drought as a weather pattern often associated with drought in South Asia could emerge in the second half of the season.

El Nino, a weather phenomenon marked by warming of the temperature of the sea surface in the Pacific Ocean, could cause droughts in the Asia Pacific, including India."There could be a weak to moderate El Nino during the last week of July to early August, through it is still in a neutral condition," said L.S. Rathore, the head of the India Meteorological Department (IMD).IMD estimates that there is a 33 percent chance that the monsoon will be "deficient," defined as delivering rainfall of less than 90 percent of the long-period average (LPA).The weather office defines average, or normal, rainfall as between 96 percent and 104 percent of a 50-year average of 89 cm for the entire season.

Half of India's farmland lacks access to irrigation, making many farmers particularly dependent on monsoon rains. The nation plans to expand irrigation coverage by at least a tenth by 2017 to cut its dependence on the seasonal rains.Rains in the coming two to three days are likely to be concentrated in India's western coastal regions where farmers favour cultivation of coffee and rubber, the weather official said. (Editing by Douglas Busvine and Muralikumar Anantharaman)

5 reasons you can stop worrying about El Niùo’s disastrous effect on Indian farmers

By Nidhi Nath Srinivas June 11, 2014 Nidhi Nath Srinivas is the chief marketing officer at the National Commodities and Derivatives Exchange

The Indian meteorology department says there is a 33% chance of a bad monsoon this year. That has immediately led to headlines predicting dire food inflation, human misery, and stalled economic growth.Not so fast. Here are five reasons that a poor monsoon resulting from the El NiĂąo phenomena might not be such bad news after all.First, take crop production. India plants paddy, corn, sugarcane, oilseeds, pulses, fruits, vegetables, and cotton in summer. The geographical and temporal distribution of rainfall is as important as its total amount. In the northern states of Punjab and Haryana, ample irrigation will take away the pain from deficit rainfall. In fertile Bihar, ground water is plentiful. The central Indian states of Maharashtra and Madhya Pradesh grow hardy crops such as lentils, pulses, cotton, and soy.

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Even a smattering of rain when these crops enter the growing phase can ensure a decent harvest. Water reservoirs are full with winter rain. Gujarat has a well-developed network of canals and micro-irrigation designed for ―more crop per drop.‖ And in southern India, the monsoon is expected to be normal. So a steep overall fall in crop production is unlikely.Two, food prices are unlikely to soar across the board.

The government has more than enough wheat and rice stocked to meet any shortfall in grains. There has been a good harvest of mustard seed–our most important oilseed—in March, along with chick peas, the largest pulse crop based on volume. Unsold sugar supply from last year and imports will smoothen any blips in the October harvest. And the domestic supply of palm oil and lentils is anyway buttressed by free trade. This year will be no different. Price signals from futures trading as well as hedging on the exchange will allow all stakeholders to correctly foresee and manage risk from price volatility.

The main culprits behind food inflation anyway are perishables like fruits and vegetables, milk and eggs. Their prices have been spiraling despite the good monsoon last year. This shows that other factors such as supply chain inefficiency and market access are just as critical.Thirdly, rural distress may be milder than expected. Over the last one year, crop prices have been bearish due to bumper harvests. This has hit returns on investment. Even the slightest improvement in price sentiment will bring cheer to farming families.

Livestock is another life line. Most farms rear milch cattle or chickens to bolster crop income. As long as animal feed is available, farmers will get good returns from rising demand for dairy and poultry. So, farming will continue to bring income. Crop insurance will be handy in case the rain deficit is high. Social safety nets such as the National Rural Employment Guarantee Act (an incomesupport program launched in 2005) and the National Food Security Mission will ensure no one sleeps hungry.

Most importantly, the number of people dependent on agriculture will reduce once growth in sectors such as manufacturing, construction, and infrastructure picks up in response to new government policies. This shift will certainly

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ease the pressure on rural incomes. Between 2005 and 2012, when the non-agricultural economy grew at an average 9.4% a year, new jobs pulled out 37 million workers from the fields. The effect on agriculture is instant.

The fourth reason is that rainfall is just one factor behind the rise in India’s agricultural GDP. Farm GDP is bolstered by public and private investment in agricultural infrastructure and mechanization. It also grows with crop prices. Even in the drought year of 2009, farm sector growth was 0.8%. Investment in agriculture can continue to significantly improve its growth prospects.Last but not the least, the farm sector contributes about 14% of India’s nearly $2 trillion economy, Asia’s third biggest. So, even if agriculture does dip, the slack can be picked by heightened activity in services and manufacturing sectors.

On the revenue side, the performance of agriculture will have only an indirect impact on public finances, as agricultural income is exempt from tax.Truth is, deficit rains need not bring the Indian economy down to its knees. 2013-14 was the best year yet for rains since 1995. But it did not lead to accelerated growth in GDP or to a decline in food prices. The reverse should also be true.What matters ultimately is the right policy. As long as the government has an adequate Plan B for rain-fed agriculture, keeps an eye on food supply, spreads the social security net wide, and zealously boosts investment in other sectors of the economy, the poor monsoon will be just a blip on an otherwise great year for India. Droughts and rising prices have lost their power to scare us. We know we can handle them.

Views are personal. We welcome your comments at ideas@qz.com.

Thai junta secures $1.5b loan for rice payments Thursday, Jun 12, 2014 BANGKOK - Thailand's military government has secured a loan of 40 billion baht (S$1.5 billion) to help pay money owed to rice farmers under a controversial state rice-buying scheme, the second loan it has secured, a senior Finance Ministry official said on Thursday.The military government that seized power on May 22 has acted fast to resolve the problem of the money owed to farmers, with a state farm bank using

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its reserves to begin making payments.

Three banks won a bid to provide the loan, for three years with an average annual interest rate of 2.2705 per cent, Chularat Suteethorn, head of the ministry's public debt management office, told reporters.The rate is much lower than a yield of 2.46 per cent on three-year government bonds on Wednesday. "It's the second time in history that we got a borrowing rate lower than a yield on government bonds with the same maturity," Chularat said.

The state-run Government Savings Bank (GSB) will lend 20 billion baht, Bank of Ayudhaya will provide 10 billion baht and Bank of Tokyo-Mitsubishi UFJ will give 10 billion baht, she said.The money must be given to the ministry on June 19, Chularat said after the auction, at which 11 banks had offered to lend a combined 114 billion baht.Earlier this month, the ministry tendered for a 50 billion baht loan, 12 banks offered a total 145 billion baht, and the GSB won the bid at a rate of 2.1792 per cent.The borrowing will help cover total arrears of about 90 billion baht that had been owed to about 800,000 farmers.

They were left unpaid for months because a caretaker government did not have the authority to get funds from the central state budget and banks proved unwilling to lend to it.The military now has the power to secure funds. It has made paying the farmers one of its priorities.The GSB suffered big withdrawals of cash in February when some depositors protested against its decision to lend 5 billion baht to a state farm bank so the government of Prime Minister Yingluck Shinawatra could pay some farmers.The savers had been unwilling to see their money used to help the government while others worried the loan would somehow destabilise the bank.The bank called back the loan and its president resigned.

Nagpur Foodgrain Prices Open- June 12 Thu Jun 12, 2014 2:40pm IST Nagpur, June 12 (Reuters) - Gram prices in Nagpur Agriculture Produce and Marketing Committee (APMC) reported higher on renewed demand from local millers amid tight supply from producing regions. Notable rise in gram on NCDEX, weak overseas arrival and upward trend in Madhya Pradesh pulses also helped to push up prices, according to sources. * * * * FOODGRAINS & PULSES GRAM * Gram varieties ruled steady in open market here on subdued demand from local traders amid ample stock in ready position.

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TUAR * Tuar Fataka best and medium varieties recovered in open market on increased demand from local traders amid restricted supply from millers. * Batri dal and Lakhodi dal firmed up in open market on increased marriage season demand from local traders amid thin supply from producing regions. * In Akola, Tuar - 4,100-4,300, Tuar dal - 6,000-6,200, Udid at 6,500-6,800, Udid Mogar (clean) - 7,600-8,100, Moong - 7,400-7,800, Moong Mogar (clean) 8,800-9,500, Gram - 2,100-2,200, Gram Super best bold - 3,100-3,400 for 100 kg. * Wheat, rice and other commodities remained steady in open market in thin trading activity, according to sources.

Nagpur foodgrains APMC auction/open-market prices in rupees for 100 kg FOODGRAINS Available prices Previous close Gram Auction 2,000-2,352 1,970 -2,250 Gram Pink Auction n.a.

2,100-2,600 Tuar Auction 3,500-4,145 3,500-4,100 Moong Auction 4,600-5,000 4,400-4,600 Udid Auction n.a.

4,300-4,500 Masoor Auction n.a.

2,600-2,800 Gram Super Best Bold 3,700-3,800 3,700-3,800 Gram Super Best n.a.

Gram Medium Best 3,300-3,500 3,300-3,500 Gram Dal Medium n.a. n.a.

Gram Mill Quality 3,100-3,200 3,100-3,200 Desi gram Raw 2,200-2,300 2,200-2,300 Gram Filter new 2,900-3,100 2,900-3,100 Gram Kabuli 8,200-10,200 8,200-10,200 Gram Pink 7,300-7,900 7,300-7,900 Tuar Fataka Best 6,300-6,600 6,300-6,500 Tuar Fataka Medium 6,100-6,300 6,100-6,200 Tuar Dal Best Phod 5,600-5,800 5,600-5,800 Tuar Dal Medium phod 5,200-5,500 5,200-5,500 Tuar Gavarani 4,200-4,300 4,300-4,400 Tuar Karnataka 4,100-4,200 4,150-4,250 Tuar Black 7,600-7,900 7,600-7,900 Masoor dal best 6,000-6,200 6,000-6,200 Masoor dal medium 5,800-6,000 5,800-6,000

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Masoor n.a. n.a.

Moong Mogar bold 9,400-10,000 9,400-10,000 Moong Mogar Medium best 8,800-9,200 8,800-9,200 Moong dal super best 8,100-8,500 8,400-9,000 Moong dal Chilka 8,200-8,800 8,200-8,800 Moong Mill quality n.a. n.a.

Moong Chamki best 7,800-9,000 7,800-9,000 Udid Mogar Super best (100 INR/KG) 8,200-8,500 8,200-8,500 Udid Mogar Medium (100 INR/KG) 6,800-7,600 6,800-7,600 Udid Dal Black (100 INR/KG) 5,700-6,000 5,700-6,000 Batri dal (100 INR/KG) 3,800-4,800 3,900-4,900 Lakhodi dal (100 INR/kg) 2,900-3,000 3,000-3,100 Watana Dal (100 INR/KG) 3,350-3,450 3,350-3,450 Watana White (100 INR/KG) 3,700-3,800 3,700-3,800 Watana Green Best (100 INR/KG) 5,000-5,400 5,000-5,400 Wheat 308 (100 INR/KG) 1,200-1,500 1,200-1,500 Wheat Mill quality(100 INR/KG) 1,450-1,550 1,450-1,550 Wheat Filter (100 INR/KG) 1,200-1,400 1,200-1,400 Wheat Lokwan best (100 INR/KG) 1,900-2,200 1,900-2,200 Wheat Lokwan medium (100 INR/KG) 1,600-1,800 1,600-1,800 Lokwan Hath Binar (100 INR/KG) n.a. n.a.

MP Sharbati Best (100 INR/KG) 2,500-3,200 2,500-3,200 MP Sharbati Medium (100 INR/KG) 2,000-2,400 2,000-2,400 Wheat 147 (100 INR/KG) 1,100-1,300 1,100-1,300 Wheat Best (100 INR/KG) 1,500-1,800 1,500-1,800 Rice BPT (100 INR/KG) 2,800-3,200 2,800-3,200 Rice Parmal (100 INR/KG) 1,600-1,800 1,600-1,800 Rice Swarna old (100 INR/KG) 2,600-2,800 2,600-2,800 Rice HMT (100 INR/KG) 3,600-3,800 3,600-3,800 Rice HMT Shriram (100 INR/KG) 4,200-5,000 4,200-5,000 Rice Basmati best (100 INR/KG) 10,400-13,900 10,400-13,900 Rice Basmati Medium (100 INR/KG) 7,300-10,000 7,300-10,500 Rice Chinnor (100 INR/KG) 4,500-5,200 4,800-5,500 Jowar Gavarani (100 INR/KG) 1,300-1,500 1,300-1,500 Jowar CH-5 (100 INR/KG) 1,600-1,700 1,600-1,700 WEATHER (NAGPUR) Maximum temp. 42.4 degree Celsius (108.3 degree Fahrenheit), minimum temp.

28.7 degree Celsius (81.6 degree Fahrenheit) Humidity: Highest - n.a., lowest - n.a.

Rainfall : 0.0 mm

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FORECAST: Partly cloudy sky. Rains or thunder-showers likely towards evening or night. Maximum and Minimum temperature likely to be around 39 and 28 degree Celsius respectively.

Note: n.a.--not available (For oils, transport costs are excluded from plant delivery prices, but included in market prices.)

Commerce mulling to attract more buyers in rice selling scheme BANGKOK, 11 June 2014 (NNT) -- The Ministry of Commerce has confirmed its plan to sell out more rice under the mortgage scheme in the near future.

Permanent Secretary for Commerce Srirat Rasathapana said after her meeting with rice millers, exporters and executives of the Agricultural Futures Exchange of Thailand (AFET) on Tuesday that the ministry was waiting for the green light by the National Council for Peace and Order.Mrs. Srirat said the meeting also discussed how to promote rice auctions through AFET and other channels. Previous rice auctions by AFET drew only a few numbers of bidders, causing rice to earn lower prices than expected.Therefore, the ministry is mulling over strategies to attract more buyers to AFET rice auctions by improving its information system and offering greater incentives for the participants.

FAO predicts Thailand could export more rice Wednesday, 11 June 2014By MCOT

BANGKOK, June 10 -- The United Nations Food and Agriculture Organisation (FAO) has predicted that world rice production would slightly rise this year due to higher demand, prompting Thailand to export more rice in the second half of this year.Thailand's Office of Agricultural Economics (OAE) secretary-general Anan Lila said that FAO has forecast total world rice production for 2014/2015 at some 501.1 million tonnes, an increase of 0.8 per cent from the previous year, as the main rice producers of China, India, Bangladesh, and Vietnam would be able to produce more rice.Thailand, meanwhile, would see lower rice production from the out-ofseason rice, due to severe drought.However, as the world rice price lowers, demand for rice will rise, prompting the world rice market to sell around 39.3 million tonnes worth of rice this year, an increase from last year's 37.2 million tonnes, a rise of about 5 per cent.

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Pulling up world rice stocks from 174.8 million tonnes to 180.9 million tonnes, this would signify that the world food stability index has also risen from 35.7 to 36.0 for 2013/2014. FAO said that most of the rice would be from Pakistan, Thailand and Vietnam, while Indian and United States's stocks might see a decline.FAO forecasts that the world market demand for rice will pave the way for Thailand to export more rice in the latter half of this year and could help push Thailand into becoming the world's number one rice exporter once again.

Stockpiling helps to boost rice farmers' profits VietNamNet Bridge – A Government programme to create a temporary stockpile of one million tonnes of rice from the winter-spring crop has ensured that many farmers in the Cuu Long (Mekong) River Delta earned profits, a meeting heard yesterday (June 11) in Long An Province.

To prevent prices from falling during the peak rice harvest season, the Government tasked food companies with buying one million tonnes starting on March 15, fully subsidising loan interest for more than half of their loans' six-month tenure.Vo Thanh Do, deputy head of the Agro-Forestry and Fisheries Processing and Salt Industry Department, said by April 30 companies had bought 995,494 tonnes.He said that in early March, when the winter-spring rice crop reached the peak harvest season, prices had slumped, but thanks to the stockpile programme, paddy prices have gone up by VND100200 per kilogramme, enabling farmers to enjoy profits of at least 30 per cent.

"Based on the average production cost of the winter- spring crop estimated by the Ministry of Finance, the difference between the cost and purchase price ranged from 35.3 to 40.6 per cent."However, Do, as well as many other delegates at the meeting, agreed that relevant ministries and agencies, local authorities, and companies need to develop closer co-operation to improve the programme's efficacy.They also agreed that temporary inventories are merely a short-term measure, and in the long run the country must create incentives for rice export and consumption.But Deputy Minister of Agriculture and Rural Development Vu Van Tam said that in the short-term there is no better measure to ensure profits for farmers.

The ministry is implementing a series of long-term programmes, including restructuring the agricultural sector with a focus on shifting to other food crops on low-yield rice fields and creating links between rice businesses and farmers, he said.Replying to a question about whether the Government would adopt the programme also for the summer-autumn crop, Tam said his ministry would keep a close eye on the market, and would urge the Government to do so if prices fall during harvest.The harvest of the summer-spring crop has jut begun, and prices are stable, he said.Nevertheless, he urged the Viet Nam Food Association and localities to be prepared so that they can start to buy immediately if the Government decides to go ahead.Nguyen Phu Hoa, deputy head of the Import-Export Department, called on food companies to strengthen links between rice production and

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consumption and expand trade promotions in both traditional and new markets, especially difficult markets like the US, South Korea, Iraq, and Japan.

Pham Van Bay, deputy chairman of the Viet Nam Food Association, said the country exported about 2.3 million tonnes of rice in the first five months of the year, down 16 per cent year-on-year.The Ministry of Industry and Trade, the association, and businesses have organised and would continue to organise business trips to market rice, he said, adding that exports to Mexico and South Korea have shown positive signs recently.

Rising demand Viet Nam's rice exports hit 585,500 tonnes worth US$248.7 million last month, the highest volume in the past nine months, thanks to a rising demand from Chinese importers.According to data from the Viet Nam Food Association (VFA), in May, the Asian market - including China - was Viet Nam's largest rice importer, accounting for 398,200 tonnes, or 68 per cent of total volume.African and American markets followed with imports of 87,300 and 78,200 tonnes, respectively.With May's results, the country shipped 2.34 million tonnes of rice in the first five months this year worth $1.07 billion.

VFA attributed the hike to a sharp rise in imports from Chinese traders, saying that rice exports via border trade in the first five months this year reached 600,000 tonnes, up more than 50 per cent against the same period last year.VFA estimated that Vietnamese rice exporters will ship roughly 6.2 million tonnes of rice this year, compared to the forecast of 6.5 to 7 million at the beginning of the year due to loss of some traditional markets in Africa to Thai traders, who have sold rice at cut-rate prices to clean up their stockpiles.

Malaysia has also stocked up on rice from Thailand to meet demands this year, while Indonesia, another important market for Viet Nam, has yet to see demand for imported rice.Analysts believe that the loss of traditional markets will force Vietnamese exporters to be more active in diversifying their markets, and focus on improving their products' quality.In recent years Vietnamese aromatic rice and glutinous rice have seen an increase in output and market share. Aromatic rice is now a strong product of Viet Nam.Over the first five months this year, Viet Nam exported over 400,000 tonnes of aromatic rice, up more than 40 per cent year on year.Aside from efforts by businesses to boost their exports, the Government needs to provide support for the establishment of areas that specifically produce high-quality rice, experts said.

Source: VNS Tags:Stockpiling,high-quality rice,Mekong Delta,paddy prices,imported rice, Image: Viet Nam's rice exports hit 585,500 tonnes worth US$248.7 million last month, the highest volume in the past nine months. — Photo phapluatvn

El NiĂąo Is Coming, And Food Prices Are Rising CHRIS PASH YESTERDAY AT 3:26 PM

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Food prices are starting to rise with expectations that the El Niño weather event will arrive this year.The World Bank says there’s been a recent rise in grain prices despite good supply.―The adverse weather conditions and the associated uptick in food prices at the start of the year have been linked to the El Niño phenomenon, which can inflict heavy damage on crops,‖ the World Bank says in its latest Global Economic Prospects report.

Australia’s Bureau of Meteorology and the US National Oceanic and Atmospheric Administration gives a 65%– 70% likelihood this could be an El Niño year.Global yields of rice, which grow at 1.7% per a year in normal years, grew only 0.7% during the five strong El Niño years.Growth in wheat yields experienced similar declines, from 2.1% to 1.4%.

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From a regional perspective, El Ni単o tends to inflict considerable damage to mainly rice and wheat crops in South America, mainly rice in South East Asia and wheat in Australia.Wheat production in Australia grew at 10.3% during the past five decades but experienced a 27% decline during the strong El Ni単o years.

El Nino conditions generally result in below average winter/spring rainfall over southern and inland eastern Australia, while southern Australia typically experiences warmer days.The Bureau of Meteorology says the tropical Pacific Ocean remains on track for El Nino in 2014 with just over half of the climate models surveyed by the Bureau suggesting El Nino will become established by August.An El Nino ALERT remains in place, indicating at least a 70% chance of an El Nino this year.

Image: A wheat field near Parkes in New South Wales. Ian Waldie/Getty Images

USA Rice Advocates Staying the Course on Dietary Guidelines Still the goal

WASHINGTON, DC -- Last week, USA Rice and members of the Grain Chain submitted a letter to the Dietary Guidelines Advisory Committee (DGAC) strongly urging the continuance of the current recommendation that Americans consume six servings of grains daily, with at least half as whole grains. The DGAC is composed of nationally recognized health and nutrition experts and makes recommendations to the Secretaries of Agriculture and Health and Human Services as those agencies form our nation's nutrition policies.

USA Rice and the Grain Chain say the current recommendation's goal is still valid for the 2015 Dietary Guidelines since Americans have yet to achieve the current whole grains recommendation. The Grain Chain also advocated for continued recognition of the valuable role of enriched grains in a healthy diet, a key component of which is fortification with folic acid. "Earlier this year, USA Rice submitted new nutrition research to the DGAC confirming the role of rice in a healthy diet," said Katie Maher, USA Rice domestic promotion manager. "But this year's DGAC is looking beyond nutrition to sustainability, and the U.S. rice industry is in a unique position because rice has a great story to tell in both areas.

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"Maher says not only is rice nutritious and part of a healthy diet, but over the past twenty years, American rice farmers have substantially increased yields while reducing inputs such as land, energy, and water use - without the use of genetic modification. Together with the Grain Chain, USA Rice provided information about U.S. rice industry sustainability as measured in the 2010 Rice Foundation study and 2012 Field to Market study, as well as several conservation studies showing that rice farming has a unique relationship to wetlands and wildlife habitat.

Last month, the Grain Chain held meetings with the U.S. Department of Agriculture and U.S. Department of Health and Human Services to discuss the grain industry's unified position to maintain the 2010 Dietary Guidelines for Americans (DGA) recommendation for grains and to raise the visibility of the Grain Chain and its members with key policy makers.USA Rice will continue to work through the Grain Chain coalition, and independently, to monitor and support whole grain and enriched white rice in the development of the 2015 DGA. The DGA, which serves as our national nutrition policy, is updated every five years to reflect the latest scientific nutrition findings.

Contact: Katie Maher, (703) 236-1453

Rice exporters' grouse June 12, 2014 RECORDER REPORT

Appreciation of the rupee has caused a lot of frustration among the exporters, constraining them to make certain demands on the government. Chela Ram, Senior Vice Chairman of Rice Exporters Association of Pakistan (Reap), while addressing the media at Karachi Press Club, deplored the fact that their plight was completely ignored in the Finance Minister's budget speech wherein he failed to mention the word "rice" at all. "Rice exporters were expecting some relief package in the budget for 2014-15 as they had suffered huge losses owing to rapid appreciation of the rupee value, resulting in losing their traditional markets to Indian and Thai rivals, but the Finance Minister did not come up with any relief for this vital sector," he lamented. If the government fails to provide relief in the form of subsidy or cut in power rates, a large number of rice units will close down.

Speaking on the occasion, former Chairman Reap, Javed Ghouri said that rice sector was badly damaged by poor law and order situation and its processing units were unable to operate normally, which increased their costs and rendered them uncompetitive, especially when the Pak rupee was rising. According to him, rice export sector had never asked for any favours from the government in the past but the situation had now changed. "If there was no support, rice industry will shut down," he warned. He also stressed that the government should provide rice seed on subsidised rates, deduct all taxes and levies including EOBI, WWF and social security through banking channels in order to eliminate corruption and provide "one window" facility to rice export sector as exporters were not ready to come in direct contact with the government departments who harass them.

Seen objectively, complaint of Reap is fully justified. Normally, rice exporters purchase paddy from growers almost three months in advance and the price is also set at that time, keeping in view the domestic conditions and the prices prevailing in the international market, assuming, of course, that the parity of the Pak rupee would fluctuate in a narrow range. However, the rupee appreciation was so rapid this year that it rose to Rs 98 to a

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dollar from Rs 110 in a short period of time, inflicting huge losses to rice exporters. Such losses could only be partly neutralised if the government could provide subsidy to the exporters and certain other facilities like a cut in the power rates.

Nevertheless, such facilities could only be provided at a great cost and very selectively since there is hardly any space in the budget and power sector is already burdened with huge losses, necessitating huge amount of subsidies from the Federal budget. Coming to the "one window" facility and collection of various taxes and levies through banking channels in order to reduce harassment of the tax collecting machinery, the request could be considered favourably but it needs to be stressed that the real solution does not lie in the acceptance of such demands but vast improvement in the working of the tax machinery itself.

The government, nonetheless, seems so helpless in removing corruption from the system that the Finance Minister had to recognise this fact in the recent budget speech, and in order to eliminate the possibility of harassment and corruption, had to simplify sales tax regime for retailers in Tier II, envisaging 5 percent sales tax for retailers having electricity bills of Rs 20,000 per month and 7.5 percent for those with higher electricity bills. Such a mechanism would eliminate the contact between the retailers and tax officials.

The problem caused by the fast appreciation of the rupee is not limited to the rice exporters but extends through the whole foreign sector. Finance Minister seems to be obsessed with maintaining rupee parity below Rs 100 to a dollar, without realising that there is always a trade-off between various economic policies and his choice seems to be frustrating for the exporters and unsustainable in the long run. Overvaluation of the rupee in the exchange market would reduce the level of exports, encourage imports and induce domestic savers to keep their liquidity in foreign exchange. All of this would continue to keep the foreign sector under pressure. On the other hand, one-off receipts, privatisation proceeds and foreign borrowings through Eurobonds etc could fill the external sector gap temporarily but cannot be regarded as long-term solution of the structural disequilibrium in the current account.

All in all, we would urge upon the Finance Minister not to be unduly concerned with the rupee rate in the exchange market and let the Pak currency find its own value without outside intervention. Of course, State Bank could buy and sell the foreign exchange in the market but such an activity should be undertaken to remove excessive fluctuations in the rupee rate and discourage speculators from manipulating the market to enrich themselves. It is only through such a policy of free-floating exchange rate that exporters could be kept reasonably satisfied and current account position of the country could be improved on a sustainable basis.

S.-Grown Rice Fuels 'Wednesday Paella' Promotion in Top Export Market In-store display Come and get it!

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MEXICO CITY, MEXICO -- USA Rice has begun a promotion campaign with Sanborns, one of the largest restaurant chains and most recognizable brands in Mexico. The promotion, dubbed "Wednesday Paella", is being conducted at all 198 Sanborns restaurants nationwide that serve more than 2 million customers per month and use one ton of U.S. rice each day. In-restaurant displays urge customers to make Wednesday "Paella Wednesday" and promote the fact that U.S.-grown rice is used. The promotions, which started in May, will continue throughout the year. "These activities will help us promote U.S. rice to new and varied audiences," says Brian King, USA Rice's Chairman of the Western Hemisphere Promotion subcommittee.

"By partnering with a renowned restaurant chain in Mexico, we are able to encourage greater consumption of U.S. rice."

Casa de los Azulejos Meet me at Sanborns...for paella!

Sanborns is a chain of department stores, restaurants, and coffee shops in Mexico, founded in 1903 and with a rich history. Its most famous location, and flagship store, is in Mexico City, the 16th century House of Tiles, or "Casa de los Azulejos", which is a major Mexico City tourist attraction and national monument. Sanborns exclusively purchases U.S. rice from IPACPA and Schettino, the largest millers/packers in Mexico.

Contact: Sarah Moran, (703) 236-1457

CME Group/Closing Rough Rice Futures CME Group (Preliminary): Closing Rough Rice Futures for June 12

Month

Price

Net Change

July 2014

$14.420

+ $0.295

September 2014

$14.135

+ $0.260

November 2014

$14.325

+ $0.290

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January 2015

$14.455

+ $0.270

March 2015

$14.610

+ $0.270

May 2015

$14.610

+ $0.270

July 2015

$14.610

+ $0.270

Annual Rice Field Day promises to educate, coordinate producers Thursday, June 12, 2014 12:00 am The 40th annual Eagle Lake Rice Field Day is scheduled to begin at 4 p.m. June 24 at Wintermann Rice Research Station on Farm-to-Market Road 102, just north of Eagle Lake.The field day will offer an opportunity for producers to tour the research station, making stops along the way to hear about weed management, variety testing, disease management and insect management, said Kara Matheney, Texas A&M AgriLife Extension Service agent for Washington County.The annual educational event is planned and coordinated by the Colorado County Rice Committee, comprised of local producers who meet throughout the year to identify topics for the event that are relevant and applicable to producers in the area, she said.Area agribusiness continues to provide crucial sponsorship to support this event so that all who are interested in attending can do so free of charge, Matheney said .―The evening program will be at the Eagle Lake Community Center and will feature Dr. Joe Outlaw, AgriLife Extension economist and co-director of the Agricultural and Food Policy Center at Texas A&M University,‖ she said. ―Dr. Outlaw will discuss decision aids and programs in the farm bill.‖Also on the agenda for the evening program is Dwight Roberts, president and CEO of the U.S. Rice Producers Association.A catered meal will be provided after the tour at the Eagle Lake Community Center, where the evening program will continue.Two Texas Department of Agriculture continuing education units will be offered to licensed pesticide applicators who attend the tour and evening program.

For more information, contact the Wintermann Rice Research Station at (979) 234-3578 or the AgriLife Extension office for Colorado County at (979) 732-2082.

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