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Global Rice E-Newsletter www.ricepluss.com
January 14, 2015 Volume 5, Issue I
Daily Global Rice E-Newsletter
Rice coalition eyes Cuba
Posted: Wednesday, January 14, 2015 12:00 am For Tri-County Newspapers
The USA Rice Federation has joined with more than 25 prominent U.S. food and agriculture associations and companies to form a coalition that seeks to advance trade relations between the United States and Cuba.The U.S. Agriculture Coalition for Cuba formally launched at an event in Washington D.C. on Thursday that was attended by Secretary of Agriculture Tom Vilsack, a bipartisan group of members of Congress, and Missouri Gov. Jay Nixon.The purpose of the USACC is to re-establish Cuba as a market for U.S. food and agriculture exports and address liberalizing trade between the United States and Cuba.The coalition will work to end the embargo and allow for open trade and investment. "We know the Cuban market for rice is not theoretical. It is real, it is large, and it is compelling," said Betsy Ward, president and CEO of USA Rice, in a statement. "With rice imports valued at more than $300 million, Cuba is the second largest importer of rice in the Americas. And there was a time when Cuba was our number one export market — we look forward to a return to those days."The U.S. rice industry has been advocating for open trade and travel with Cuba since the mid-1990s and was the first U.S. commodity back in Cuba in 2001, exhibiting at the Havana Trade Fair, which led to the first U.S. rice sale to Cuba in more than 40 years.Throughout the last decade, USA Rice has sponsored numerous trade missions, led and participated in many forums, here and in Cuba, and participated in eight Havana International Fairs.Consequently, by 2004, U.S. rice sales to Cuba were valued at $64 million.
However, U.S. government policy changes reversed that trend, and by 2009, sales fell to zero, where they remain. "We applaud the Obama Administration for their recent actions, and ask our leaders in Congress to normalize trade with this nation that we believe will once again become a major market for U.S. rice," Ward said. "Open trade with Cuba would be an enormous boon for U.S. rice farmers, and we look forward to working with the Cuban rice industry so together we may supply the Cuban people with high-quality, delicious rice." http://www.appealdemocrat.com/colusa_sun_herald/rice-coalition-eyescuba/article_f7e1e85c-9ba0-11e4-b1e45f49fac7ed5d.html
Japan skips food wheat purchase tender this week Tue Jul 1, 2014 8:11am GMT
TOKYO, July 1 (Reuters) - Japan's Ministry of Agriculture skipped buying food quality wheat via a regular tender this week. Since July has 5 weeks, the ministry decided to skip a tender this week and planned to start a regular tender from the following week, an official at the bureau said on Tuesday.Japan, the world's sixth-biggest wheat importer, keeps a tight grip on imports of the country's second most important staple after rice and buys the majority of the grain for milling via tenders typically issued three times a month. (Reporting by Michio Kohno; Editing by Anupama Dwivedi) http://af.reuters.com/article/commoditiesNews/i dAFL4N0PC26520140701
Thai govt aims to sell 17m tonnes of stockpiled rice over 2 years BANGKOK, Jan 13 (Reuters): Thailand's government plans to sell around 17 million tonnes of rice over the next two years from stockpiles built up under the previous administration's failed buying programme, the commerce ministry said on Tuesday, announcing a new series of tenders. Thailand was the world's top rice exporter for decades until its grain became uncompetitive under the buying scheme brought in by ousted former Prime Minister Yingluck Shinawatra after she won election in 2011.The scheme paid farmers well above market rates for their crops and the Finance Ministry, in its most recent estimate, said it caused losses of more than $15 billion to the state, although that would be reduced if grain is sold.
"We have set up a plan to sell 17.8 million tonnes of rice within a two-year timeframe," Chutima Bunyapraphasara, permanent secretary at the ministry, told reporters.The aim is to sell 10 million tonnes this year and 7 million in 2016, she added.Terms of reference for a tender for 1 million tonnes would be announced on Jan. 20, she said, adding that the ministry would hold two or three tenders from January to March.The authorities have held four, smaller tenders since the military seized power last May and have sold 681,740 tonnes for around 6.36 billion baht ($194 million), Chutima said. Government-to-government deals have been done for larger amounts, of which 570,000 tonnes had so far been shipped or was about to be shipped this month, she added.An audit conducted after the military seized power in
May suggested that only 10 per cent of the grain in the stockpiles was of standard export quality. The buying scheme effectively lapsed in early 2014 when political turmoil meant Yingluck's government was unable to pay farmers for their grain.Thailand's parliament began an impeachment hearing against Yingluck on Friday over her role in the subsidy programme. Critics denounced it as a wasteful handout to supporters of Yingluck and her brother Thaksin Shinawatra, another former premier ousted by the military. The country exported around 10.8 million tonnes of rice in 2014, a record high, according to the commerce ministry.Its previous record of 10.4 million tonnes was reported in 2011, after which India took over as top exporter.Thailand is experiencing drought in eight provinces, which will cut its 2015 off-season crop output by more than 30 per cent, according to the latest report from the Office of Agricultural Economics.The smaller harvest is unlikely to have a big impact on global prices, which are still under pressure from Thailand's stockpiles and bumper output in rival exporters India and Vietnam.
http://www.thefinancialexpressbd.com/2015/01/14/75715
Officials prepare for rice exports to China Published on Wednesday, 14 January 2015 16:15
To facilitate rice exports to China, the China Certification & Inspection Group (CCIC) will open an office in Yangon.
The Myanmar Rice Federation (MRF) will send a list of 10 rice exporting companies and other documents to China. The CCIC will hold
talks between the Myanmar government, COFCO Group and the companies that signed the memorandum of understand with the MRF over rice trading."Tasks for starting rice exports are currently on our plate. A meeting will be held this month. Wewill assist in opening the CCIC office, too," said Ye Min Aung, general secretary of MRF.At the invitation of China early this month, delegations from MRF, the Rice Millers' Association, Myanmar Rice & Paddy Traders Association, the Agriculture and Irrigation Ministry and the Commerce Ministry talked with their Chinese counterparts about rice trading agreements proposed in 2014 and finalised the deal.Negotiations between the Myanmar Agriculture and Irrigation Ministry and China's Administration of Quality Supervision, Inspection and Quarantine have also taken place.Myanmar is thriving to export its world-class quality rice to China. Current exports are of mediocre quality. World Bank studies claimed the price of rice in Myanmar is the most unstable among Southeast Asian rice exporting nations.The studies explained the 40-per cent hike in Myanmar rice prices as the result of weak market structures, poor accessibility of information, limited product variety and costly storage charges.In the 2013-14 fiscal year, Myanmar‘s exports of 1.1 million tonnes of rice earned US$400 million; in 2014-15, Myanmar is expected to reap $500 million from 1.5 million tonnes in rice exports.
http://www.elevenmyanmar.com/index.php?opti on=com_content&view=article&id=8674:officia ls-prepare-for-rice-exports-tochina&catid=33:business&Itemid=356
Iraq submits a tender for the purchase of 30 thousand tons of rice Photo Credit:Reuters/Ajay Verma
The Iraqi Ministry of Trade announced on Tuesday launching a tender to process the ministry with an amount of 30 thousand tons of rice to cover the requirements of the ration card, while economists justified it and said that production would not fill the growing need for several conditions. Iraq is one of the major importers of grain in the region to cover the ration card program that has been applied since the nineties of the last century. The Ministry of Trade stipulated that the origins must be from America, Uruguay, Argentina, Brazil, Vietnam and Thailand with the specifications of " White Grain."The ministry said in a statement reported for "Shafaq News" that " offers will be open up to 29/1/2015 but the presentations must be accompanied by an initial insurances by a bank guarantee or a check certified for the General Company for Grain Trade in the ministry.Analysts and economists believe that Iraq's move towards the global market is to meet the needs of its population of grain for many economic conditions.
The economist , Falah Hassan told "Shafaq News" that "Iraq has a great potential in the production of agricultural crops, but the conditions experienced in the country affected local production significantly."He explained that "local production in Iraq began to diminish year after a year due to economic factors as well as political factors , although it has recently improved, but of course still modest in spite of the many possibilities that exist in Iraq."Hassan added, "there has been a clear deficit in the coverage of such crops as wheat barley and rice, so that Iraq covers domestic demand through imports .. For example, rice needs large amounts of water while Iraq is going through a crisis in irrigation projects and this is a big challenge due to lower levels of Tigris and Euphrates rivers by the impact of upstream countries "Turkey and Syria.
were re-bagging locally produced rice as imported one while receiving waivers for such.Besides, the Federal Government noted that it had concluded plans to establish and manage a National Domestic Rice Production Fund (NDRP Fund) that would be used to support farmers and millers in expanding production and milling operations in the relevant states of previously intended investments by defecting investors.
Š Shafaq News 2015
Furthermore, the ministry identified three other companies including Conti-Agro, Central Trading and Export and African firms as having imported 98,285 metric tonnes of rice without approved quotas, thereby owing the treasury N8.16 billion.A statement from the ministry stated that the companies without waiting for determination of the supply gap by the interministerial committees or issuance of quotas had imported 634,270.16 metric tonnes of finished rice. This represents 56 per cent of the total imported finished rice under the new policy as at December 3, 2014.
https://www.zawya.com/story/Iraq_submits_a_t ender_for_the_purchase_of_30_thousand_tons_ of_rice-ZAWYA20150114044000/
Nigeria: Govt Alleges Sabotage of Rice Policy By Investors By Femi Adekoya FOREIGN investors who have exceeded their preferential allocation quotas for imports thereby incurring N36.56 billion debts payable to the nation's treasury are sabotaging the new rice policy, the Federal Government said yesterday.According to the Minister of Agriculture and Rural Development, Dr. Akinwunmi Adesina, the Federal Government may also wield its big stick on importers who
The Fund is expected to be generated from recalled bonds from any of the 26 investors who defaulted from their investment plans while enjoying preferential allocation quotas under the Domestic Rice Production Performance Bond amounting to $195 million or N35.3 billion.Already, the ministry, citing data from Nigerian Customs, identified Popular Farms and Mills as well as other importers as responsible for exceeding their import quotas under the new policy.
Adesina was quoted as saying: "Nigeria cannot lose any revenue due to the economy. All companies who have imported rice above their allocated quotas must pay fully the amounts due to the treasury. With the devaluation of the Naira, all hands must be on deck to ensure that all leakages are blocked. Nigeria is not for sale."I will not be intimated, bought or
corrupted. I will not sell my country to any foreign company. The President has given us a clear matching order to make Nigeria selfsufficient in rice and we will fully achieve this. All who owe the Federal Government must pay what they owe and Nigeria must lose no single naira. No amount of malicious representation will derail the new policy. "According to the Customs, the importers agreed to pay any duty and levy differential if their eventual quota allocation turned out to be lower than what they have imported."As at December 3, 2014, Popular Farms and Mills had exceeded their approved quota by 300,204.53 metric tonnes and Olam by 110,163.63 metric tonnes, a combined total of 410,368.16 metric tonnes."
The ministry explained that the new rice policy had stated that importation of brown or polished rice should be limited to the national supply gap for import-grade rice to be determined by an inter-ministerial committee chaired by the Agriculture Ministry, with membership drawn from the Ministries of Finance, Industry, Trade and Investment and the National Planning Commission.
According to the new rice policy, Popular Farms and Mills owes N19.379 billion in unpaid levies while Olam's indebtedness is N9.02 billion. Together, the two Asian companies owe the federal Government about N28.39 billion.
It added that rice import quotas were issued on a conditional basis to guarantee that the DRPPs are met to achieve Federal Government's goal of rice self-sufficiency."Specific qualifying criteria to receive the quotas were stipulated and they include: applying companies must be a registered firm in the country and a member of relevant trade association; only new investors officially known to the Ministry via submission of a DRPP will be allocated a quota; applying companies must have a minimum planned investment in rice production and processing of $10 million.
"Rather than pay the levies owed, the two firms wrote letters to the Minister asking for a revision of their rice import quotas; Olam asked for 400,000 metric tonnes rice import quota, to cover the quantities of rice that they had gone ahead to import (or still desire to import) without any approved quotas or Domestic Rice Production Plans (DRPP) as required, but a mere agreement with Nigerian Customs that they would pay the duties due once the quota allocations are out", the statement read in part.
"Basically, in order to qualify for a final quota allocation, all qualifying companies had to deposit a Domestic Rice Production Performance Bond ("the Bond") as a means of demonstrating a clear commitment to domestic investments in rice production and processing. For each investor, the Bond value will be equivalent to 30 per cent of the value of the quota received. This Bond must be secured at a qualifying bank approved by the Federal Ministry of Agriculture and Rural Development.
The ministry expressed optimism of the national supply gap of import grade rice declining from the present 1.5 million metric tonnes to one million this year, with a further projected decline of 0.3 million MT in 2016 and zero in 2017 when the country is expected to become selfreliant in rice production and when rice mills purchased by investors become operational.
"Investors' rice investment plans will be strictly monitored against key milestones. Failure to execute on these plans will lead to a 'call' on the Bond by the Ministry."The goal is to turn importers into local producers and that is being achieved. No one is hoodwinking anybody. A detailed assessment of existing rice millers, importers and new rice investors has also been undertaken", the ministry explained.
However, when The Guardian tried to reach some of the identified investors who have overshot their quotas, they stated that the Nigerian Customs was yet to communicate their financial obligation to them in terms of the excess imports, adding that they continue to await Customs' response to them.
This project will help rice producers conserve natural resources such as water, soil and waterfowl habitat, while having long-term positive impacts on their bottom line.
http://allafrica.com/stories/201501141088.html
Major Grant Awarded to Rice Industry, DU for Habitat Conservation Efforts From left: LA rice farmer John Owen,
USA Rice CEO Betsy Ward, and NRCS Chief Jason Weller WASHINGTON, DC -- Today Secretary of Agriculture Tom Vilsack announced approved grants from the first round of proposals to the new Regional Conservation Partnership Program (RCPP). The USA Rice Federation, Ducks Unlimited, Inc. (DU), and more than 40 collaborating partners are pleased that the "Rice Stewardship Partnership - Sustaining the Future of Rice" project was selected for support.
The RCPP application process was very competitive; less than half of all applications were awarded funding, and no proposal was fully funded. However, the USA Rice and DU national request was deemed to have significant merit, and the Natural Resources Conservation Service (NRCS) - the agency responsible for administering RCPP - awarded the partnership a grant of $10 million, one of the largest awards given under the program. "The Mississippi Alluvial Valley, Texas' and Louisiana's Gulf Coast, and California's Central Valley are critical landscapes for waterfowl and therefore ranked as some of DU's top priorities for habitat conservation," said DU President and Arkansas rice producer George Dunklin.A 2014 study conducted by DU scientists for The Rice Foundation demonstrated that rice agriculture provides 35 percent of the food resources available to migrating and wintering dabbling ducks in the regions where rice is grown in the United States. "U.S. rice farms are valuable, not just for the nutritious commodity they produce and their positive impact on the economy, but also as important contributors to the entire ecosystem, and today's announcement from NRCS and USDA recognizes that fact," said USA Rice
Federation Chairman Dow Brantley, an Arkansas rice farmer. "Wildlife and waterfowl depend on our farms as much as any of us do."
From left: Donald Berken, Kevin Norton, Jeff Durand and Randy Jemison
Across the board Established in the 2014 Farm Bill, the RCPP competitively awards funds to conservation projects designed by collaborating partners."The USA Rice Federation, Ducks Unlimited, and all of our partners commend the USDA for their vision in creating partnership-driven conservation initiatives, and we especially appreciate each of the six state NRCS offices who were instrumental in crafting a competitive proposal," said Betsy Ward, President and CEO of USA Rice. "This is a giant step forward for conservation in ricelands with many more steps to come." "We applaud the many rice producers who integrate extra conservation measures into their rice production to maintain water quality and provide much-needed waterfowl habitat," said USDA NRCS Chief Jason Weller. "The partnership between DU, USA Rice, and USDA offers increased technical and financial assistance to help producers accomplish these goals on their land, and the tangible benefits to farmers, the environment, and all Americans will be felt for a long time."The Arkansas NRCS has scheduled a meeting Friday, January 16, to announce the state's RCPP project participants, and to invite local rice farmers to an informational session with RCPP Project Sponsors. All 50 states and Puerto Rico received NRCS funding for conservation projects and have scheduled similar events in the coming week. Contact: Michael Klein (703) 236-1458
Louisiana Rice Receives RCPP Funding
BATON ROUGE, LA The Natural Resources Conservation Service (NRCS) announced four new conservation projects today, two of which will directly benefit the state's rice producers."We set out to deliver conservation programs that would work on rice, waterfowl, water quantity, quality, and sustainability, and we've done just that," said Kevin Norton, the NRCS State Conservationist for Louisiana. "This is quite special, bringing big new resources to Louisiana that will translate into real conservation." The state received approximately $1.5 million for the three state conservation programs, and Norton says the lion's share is going to the Rice Stewardship Program in Southwest Louisiana, proposed collaboratively by Ducks Unlimited, the Louisiana Rice Growers Association, and others. That region represents about 70% of rice growing in the state, but rice producers in other areas of the state will be eligible to participate in the national USA Rice-DU RCPP program (see lead story above)."Rice is good for ducks and conservation is critical," said Alicia Wiseman, Rice Stewardship Program Coordinator for Ducks Unlimited Southern Region. "These
programs will help feed people, support families, and provide habitat for waterfowl." "This is a good day for Louisiana rice producers who are excellent stewards of the land, and play an important role in our state's economy and in helping to feed us all sustainably," said Jeff Durand, a Louisiana producer and co-chair of USA Rice's Conservation Stewardship Partnership who spoke at the event.The programs are continuing to take shape and develop and all rice RCPP programs are expected to be major areas of discussion at state meetings next month.
Contact: Michael Klein (703) 236-1458
California Rice Commission Secures StateSpecific RCPP Funding SACRAMENTO, CA - In a separate conservation proposal, the California Rice Commission (CRC) received an RCPP grant of $7 million. This program will support many of the same practices offered by the highly successful Waterbird Habitat Enhancement Program and efforts to develop a viable nesting cover crop system for idled ricelands."Having these additional resources should provide a big boost to our industry's longstanding wildlife conservation efforts," said Paul Buttner, Manager of Environmental Affairs for the CRC. "California ricelands provide habitat to nearly 230 wildlife species - millions of birds that fly along the Pacific Flyway, and the value of winter waterfowl habitat in California Rice is estimated at $2 billion."
Contact: Deborah Willenborg (703) 236-1444
Western Rice Belt Conference and Texas Rice Council Annual Meeting set for Jan. 21 PRESS RELEASE Posted: Wednesday, January 14, 2015 4:00 am PRESS RELEASE The annual Western Rice Belt Production Conference will be held on Wednesday, January 21, 2015 at the El Campo Civic Center. The conference will begin with an Early Bird Session on Precision starting at 7:30 am. Registration for the conference will begin at 8:00 a.m., with the remainder of the program to follow. After a catered lunch, provided by area agribusiness sponsors, the program will conclude around 2:00 pm. This joint effort of local rice committees, The Texas A&M AgriLife Extension Service, U.S. Rice Producers Association, and Texas A&M AgriLife Research will offer growers and others the opportunity to hear presentations from the top Extension and Research scientists from Texas and Louisiana as well as respected individuals from the rice industry. Topics and speakers will include: Rice Policy Update, Dr. Joe Outlaw; Rice Market Update, Dennis Delaughter; Localized Effect of Carryover Rice, Jay Davis; Rice Disease Mgmt Update, Dr. Don Groth; Pesticide Laws and Regs Update, Greg Baker; Groundwater Update, Neal Hudgins; and Insect Management in Rice, Dr. Mo Way. The Texas Rice Council will also conduct their Annual Meeting in conjunction with the 2015 Western Rice Belt Conference. The Texas Rice Council will conduct their producer elections during the lunch hour, following the announcement of the Rice
Poster Contest.For more information, contact the Texas AgriLife Extension office in Matagorda County 979-245-4100 or Wharton County 979-532-3310, or go tohttp://wharton.agrilife.org and click on Events to view a flyer for the Rice Conference. 2 CEU‘s (1 L&R and 1 IPM) for TDA Pesticide Applicators will be awarded at this event. CCA hours have been applied for and will be offered pending approval. http://www.yourhoustonnews.com/friendswood/living/westernrice-belt-conference-and-texas-rice-council-annualmeeting/article_cb18ba90-5b4a-53f3-8e3910fb8992b503.html?utm_source=USA+Rice+Daily%2C+January +14%2C+2015&utm_campaign=Friday%2C+December+13%2C+ 2013&utm_medium=email
Compete on quality India should not oppose Pakistan's bid to call its rice basmati Business Standard Editorial Comment | New Delhi January 13, 2015 Last Updated at 21:38 IST
India's bid to protect its basmati-rice growers through getting a geographical indications (GI) registration has come up against formidable hurdles. These come not just from basmati growers in Pakistan, but also Madhya Pradesh, which it did not list among traditional basmati-growing regions. TheAgricultural and Processed Food Products Export Development Authority (Apeda) wants to thwart other countries from selling their scented rice as basmati globally. Many attempts have been made in the past by foreign rice-trading companies to confuse consumers by using
similar-sounding names, such as Jasmati and Kasmati. Apeda has spent crores of rupees on court cases abroad to preserve the basmati epithet for the typical Indian long-grained, nonsticky aromatic rice. The GI registration at home would strengthen its case in international litigation.Apeda's woes are rooted in the fact that it has sought the GI status for basmati grown only in the contiguous region spanning Punjab, Haryana, Himachal Pradesh, western Uttar Pradesh, Uttarakhand, Delhi, and parts of Jammu and Kashmir. Madhya Pradesh's rice industry has claimed that its state is also located in the Indo-Gangetic belt, part of which is suited for basmati cultivation. Pakistan's Punjab and adjoining regions, especially the foothills of the Himalayas, are well known for producing basmati rice which, in fact, is the main competitor of the Indian basmati in the international market. The Geographical Indications Registry, which grants the GI status, had observed in an order issued in December 2013 that it was duty-bound to guard the interests of producers of all the areas from where a product came. Apeda is, however, now contesting this plea in the Chennaibased Intellectual Property Appellate Board (IPAB). Technically, the GI label is meant to set apart a product whose quality, reputation and other traits are attributable to its geographic origin. This definition applies perfectly only to the desi basmati, such as
Basmati 370, whose photosensitive nature allows it to be grown only in a region having a particular day-length during the basmatigrowing season. That limits basmati cultivation to only the northwestern part of undivided India. However, the new evolved basmati types, including the high-yielding dwarf and semi-dwarf varieties, are, by and large, not photosensitive and can, thus, be grown in areas outside the traditional basmati belt as well.
Buffalo meat exports have overtaken those of basmati rice for the first time. Both fall in the
category
agriculture/processed
exports, with the latter dominating the scene for the last several years. According to Commerce Ministry data, India exported buffalo meat worth $3.22 billion in the April to November period of the ongoing financial year [2014/15], up over 16 per cent from corresponding
These varieties have now almost totally replaced the desi basmati in the domestic and export markets. It would, therefore, be unfair to deny them basmati status irrespective of where they are grown.It was indeed Pakistan's folly that it did not accept India's offer in the past to jointly seek global GI registration for basmati. Now that Pakistan's basmati industry has, on its own, come forward for similar cooperation, Apeda should not drag its feet. India can compete with Pakistan in the global basmati bazaar on the basis of quality. A denial of Islamabad's claims may not, in any case, withstand the scrutiny of the World Intellectual Property Organization.
of
period
of
last
year
(2013/14).In the same period, the figure for basmati rice remained unchanged at $2.96 billion. Basmati rice exports in 2013/14 was $4.87 billion as compared to buffalo meat's $4.35 billion. Buffalo meat exports saw a phenomenal growth of 31 per cent in quantity and 36 per cent in value last year (2014).Among the top export destinations were Vietnam, Malaysia, Egypt, Thailand and Saudi Arabia.Russia has recently opened up its market for Indian buffalo meat and four plants have been certified by Russian authorities. It is interesting to note that all this has
Source with thanks:The Business Standard
Buffalo meat beats basmati rice in export market
happened within the first year of Prime Minister Narendra Modi tenure.As BJP's Prime Ministerial candidate prior to the elections last year, Modi, in his election campaigns, had attacked the then Congressled UPA government for promoting a 'Pink
Ajay Modi 2015 | 17:08 IST
Last
Updated: January 14,
Revolution' by encouraging meat exports.
Sugarcane
grower
Nilesh
Kadam
has
abandoned plans to buy a tractor. He doesn't have enough money, like many farmers hit by erratic weather and sliding prices for the cotton, soybean and rubber they produce. Naturally, there was a fear among meat
Tougher times in rural communities spell
processors that exports will take a hit if the
bad news for Prime Minister Narendra
BJP-led NDA coalition came to power. This,
Modi, who swept to power last May with a
however, has not happened. The government
promise of "better days" - new jobs and
has made no hostile move towards this
development to lift hundreds of millions of
sector and exports continue to boom.The
Indians out of poverty.
country has successfully built an enviable
"I was expecting a hike in cane prices this
reputation
and
year, but mills are paying 20 per cent less
competitive exporter of buffalo meat. So far,
than last year. I don't have enough money to
there has been no incidence of livestock-
buy even a motorcycle, let alone a tractor,"
related diseases such as foot and mouth
says
disease from any of the importing nations.
farmer.It's not just the weather gods and
of
being
a
reliable
the
29-year-old
Maharashtrian
capricious markets that are to blame for the Source with thanks:Business Today
hardship besetting Kadam's village of
Rural India slowdown threatens Modi's promise of "better days"
Padali, 280 kilometres south of Mumbai. A
Rajendra Jadhav, Nivedita Bhattacharjee and Suvashree
Chaudhury Mumbai/New
Delhi/Padali Last Updated: January 15,
shift in government spending ordered by Modi is also hitting rural consumers and the industries
that
serve
them."Rural
consumption was one of the pillars holding up growth," said Aditi Nayar, senior economist at Icra, the Indian arm of ratings agency Moody's. She expects weak demand in rural areas to have contributed to a slowdown in economic growth in October-December from 5.3 per cent in the previous quarter.Tractor maker Mahindra & Mahindra is idling its factories
for a few days a month after sales slid by
policies, firms that profited from booming
nearly a third towards the end of last year.
rural demand are struggling due to the
Consumer goods firms and auto makers
sudden slowdown.Rajesh Jejurikar, chief
have also reported weak sales.More than
executive of the farm equipment and two-
800 million of India's 1.25 billion people
wheeler division at Mahindra & Mahindra,
live in the countryside, accounting for 35 per
said delayed rains, poor crops and reduced
cent of the economy. Modi's Bharatiya
disposable incomes had hit tractor sales at
Janata Party (BJP) faces the verdict of voters
the market leader.Trends show a striking
towards the end of this year in Bihar, a large
divergence between town and country sales
state in the Hindi belt where many of the
of
rural poor live. West Bengal and Tamil
popular in the countryside - fell 3.5 per cent
Nadu are among major states that go to the
in December while scooters, ridden mainly
polls in 2016.
by city dwellers, leapt 24 per cent from a
two-wheelers:
motorcycles
-
more
year earlier, industry figures show. WELFARE CUTBACKS Seeking to woo rural voters, the last
GLOBAL COMMODITIES FALL
government raised grain purchase prices,
Modi's shift from policies that support
bailed out indebted farmers and promised
demand to ones boosting investment and
100 days paid labour a year to anyone who
productivity have also coincided with a
wanted
steep
it.The
measures
boosted
the
fall
in
global
prices
of
farm
spending power of rural consumers and
commodities, making imports cheaper and
cushioned business from a fall in urban
hitting Indian exports."Exports of many
demand after the 2008 financial crisis.
commodities have become less lucrative and
Eventually, though, they stoked inflation
in some cases unfeasible," said Faiyaz
and forced the Reserve Bank of India (RBI)
Hudani at Kotak Commodity Services.The
to hike interest rates.To cap inflation and
government's ability to ramp up spending on
state borrowing, Modi has limited rises in
roads, railways and irrigation projects that
farm support prices to below the inflation
would benefit rural India is, meanwhile,
rate and scaled back the jobs scheme.
hobbled by budget constraints.
He wants to invest savings in infrastructure
Aides to Finance Minister Arun Jaitley have
and skills to boost India's long-term
advised him to loosen fiscal deficit targets in
growth.While inflation has eased with these
next month's budget to create room to
invest. It's not clear, though, whether he will
potential.Led by Hans De Steur of Ghent
do so as that could delay a growth-boosting
University, the team behind the research said
interest rate cut by the central bank.Since his
various GM crops with health benefits have been
general election triumph, the BJP has racked
developed – with notable examples including
up a series of gains in state polls - including
rice enriched with pro-vitamin A (also known as
in Maharashtra. But Kadam, who voted for a
'Golden
rival party, isn't convinced and says the
developed at Ghent University.
patience of rural voters is being tested. "During the campaign, Modi was saying better days are coming. Where are the better days?" the young Maharashtrian farmer asks. "He has made things worse for us."
Rice')
and
folate-enriched
rice,
―Fifteen years after the development of 'Golden Rice', which was the first GMO with health benefits, the developers of such transgenic biofortified crops have little reason to celebrate,‖ said the team. ―To date, none of these GMOs are
(Reuters) http://businesstoday.intoday.in/story/rural-indiaslowdown-poses-threat-modi-promise-of-betterdays/1/214619.html
approved for cultivation, unlike GMOs with
Functional and healthy GM foods have large market potential
successfully biofortified with one, or more,
agronomic traits.‖ Despite these regulatory hurdles, six major staple crops have been
vitamins or minerals.Now the research team has ‗convincingly demonstrated‘ that there is a strong market potential for such products – showing that consumers are willing to pay more for GM food with health benefits, with
By Nathan Gray+ 14-Jan-2015 Last updated on 14-Jan-2015 at 14:55 GMT
premiums ranging from 20% to 70%.
potential, says new research.
which are only accepted by consumers when
The
new
data,
published in Nature Biotechnology, suggests that while the majority
of
developments in genetically modified crops provide no additional health benefit to the consumer, those that do have good market
―This differs from GMOs with farmer benefits, they are offered at a discount,‖ said the team.Experts from the Infant Nutrition Council (Aus-NZ), Malaysian Dieticians Association and Euromonitor will discuss how Apac countries differ in their infant formula needs, and how to best market their products within Asia‘s strict regulatory framework.The team added that although GM foods with health benefits ‗are not
a panacea‘ for eliminating malnutrition, they do offer
a
complementary
and
Voume 33, Pages 25–29, doi:10.1038/nbt.3110
cost-effective "Status and market potential of transgenic
alternative when other strategies are less
biofortified
successful or feasible.
crops"
Authors: Hans De Steur, et al Source: Nature Biotechnology
CCC Announces Prevailing World Market Prices WASHINGTON, DC -- The Department of Agriculture's Commodity Credit Corporation today announced the following prevailing world market prices of milled and rough rice, adjusted for U.S. milling yields and location, and the resulting marketing loan-gain (MLG) and loan deficiency payment (LDP) rates applicable to the 2014 crop, which became effective today at 7:00 a.m., Eastern Time (ET). Prices are unchanged from the previous announcement. MLG/LDP Rate
World Price
Milled Value ($/cwt)
Rough ($/cwt)
Rough ($/cwt)
Long-Grain
16.76
10.63
0.00
Medium-/Short-Grain
16.19
10.90
0.00
Brokens
10.11
----
----
This week's prevailing world market prices and MLG/LDP rates are based on the following U.S. milling yields and the corresponding loan rates: U.S. Milling Yields Whole/Broken (lbs/cwt)
Loan Rate ($/cwt)
Long-Grain
55.83/12.59
6.50
Medium-/Short-Grain
62.39/7.92
6.50
The next program announcement is scheduled for January 21.
CME Group/Closing Rough Rice Futures CME Group (Prelim): Closing Rough Rice Futures for January 14 Month
Price
Net Change
January 2015
$10.985
- $0.255
March 2015
$11.150
- $0.295
May 2015
$11.405
- $0.280
July 2015
$11.635
- $0.275
September 2015
$11.210
- $0.275
November 2015
$11.290
- $0.070
January 2016
$11.590
- $0.040
March 2016
$11.590
UNCH