31st March , 2014
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Stemming The Tide of Rice Smuggling Into Nigeria Guangdong shows interest in boosting import of Pak rice How to stop rice smuggling? Price competitiveness is the answer – experts Rice exports surge by 22.5 percent during July-February period FCA set sugarcane, rice targets as 68.83mT, 2.786mT respectively Guyana to Export 200,000 Tons of Rice to Venezuela by August 2014 Nigeria Government Plans Rice Levy Fund to Support Production; Agriculture Minister Defends Import Tariff Hike Pakistan Basmati Rice Export Prices Decline to $1,348 Per Ton in February 2014; Down 2% from Previous Year Oryza Overnight Recap – Chicago Rough Rice Futures Little Changed Overnight as they Face Nearby Resistance at $15.500; Grains Begin Day Lower Ahead of Monday’s Crop Reports Thailand Rice Sellers Increase Some of Their Quotes; Other Asia Rice Quotes Unchanged Today India Average Wholesale Rice Prices Increase Sharply in March 2014 Iraq Allows Rice Imports from Thailand Rice Price Decline Could Fuel Farmer Protests in Thailand India Exports Rice Worth $5.6 Billion in April – December 2013 Oryza Afternoon Recap – Chicago Rough Rice Futures Finish the Week on Positive Note;Traders Make Last Minute Adjustments Ahead of USDA Report Due out Monday Passage of Water Bill to Improve Drought Contingency Plans, Say U.S. California Rice Growers Oryza Rice Currency Analysis for Today – India Rupee Up 0.7% PhilRice Urges Government to Reduce Rice Production Costs to Curb Smuggling Oryza White Rice Index – Plunging Thailand Rice Quotes Drag Global Index Lower PhilRice Urges Government to Reduce Rice Production Costs to Curb Smuggling
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NEWS DETAILS: Stemming The Tide of Rice Smuggling Into Nigeria Samson Echenim — March 30, 2014 Rice smuggling in Nigeria has become so commonplace that it appears like a legitimate trade to an average Nigerian. As the federal government moves to cut tariff on imported rice, there is also the need to narrow down on the land borders, SAMSON ECHENIM writes There is no gainsaying that food traders smuggle rice into the country from the borders without stopping to think that they are being engaged in a criminal act. To some of them, it is a lawful business, while others wilfully engaged in it at a larger scale, bringing in the staple food product in trailers, or crossing them through the waters from the creeks of Badagry and Agbara. The Nigeria Customs Service (NCS) defines smuggling not only as a forceful passage of imported goods through the borders, but also as false declaration and concealment of goods.Smuggling also refers to ―wilful under-payment of Customs duties, trafficking in prohibited or restricted goods and use of unapproved routes and ports.‖ Forging of Custom documents, touting in Customs goods and documents are also smuggling related crimes.Even with the very obvious activities of the Nigeria Customs Service (NCS), especially the various Federal Operation units (FOUs) and border commands of the trade facilitating agency, the business of rice smuggling is growing and appearing increasingly unabated. One obvious factor that is fuelling the ugly trend is the multiple entries and exits around the land borders, which are generally unchecked, in a manner that suggests that the country lacks the wherewithal to block these inimical and illegal exits. The other factor is the huge tariff placed on the product, after it was hiked to 110 per cent early 2013 from 50 per cent. Since that time, rice importers only use neighbouring ports, where the tariff is merely 10 per cent and find a means of smuggling the rice into Nigeria through the borders. Yet, there is the issue of inadequacy in local production of rice consumed by nearly all Nigerians, with a population of about 170 million.Nigeria’s yearly consumption of rice is about 5.5 metric tonnes. While 1.1 million tons is said to be produced locally, according to government sources, the country relies on importation to bridge the whopping gap of 4.4MT.But president of the Rice Millers, Importers and Distributors Association of Nigeria (RMIDAN) Mr Tunji Owoeye said 50 per cent of the imported rice was being smuggled into the country through the porous borders and that is being careful with figures. How We Got Here There was once a time when Nigerians could make do with the locally produced rice, such as the Ofada rice grown in the Western part of the country, the Abakaliki rice from the East and the local rice grown mostly in Niger State.As production declined due to a number of factors, including a drop in the farming population, the local rice became inadequate for the country’s ever growing population and then importation of the food
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product reared its head. The par-boiled rice imported from Europe is easy to cook and have no stones, compared to some of the locally made brands. This also contributed to the significant drift from consumption of local rice to the clean, but less nutritive imported parboiled rice.But in the last three years, the federal government rekindled interest in growing rice in the country. It began a number of rice production programmes under the Ministry of Agriculture and Rural Development targeted at boosting local production of rice and reduction of imported rice. In January 2013, the government announced a 110 per cent tariff on imported rice, with an intention to reduce importation of the product. Government made a blunder, as it did not appear to have considered the inevitable law of demand and supply and its forces. The people need the food, but it was available locally, or the local rice was grossly inadequate to feed the nation. Importers could still bring in the product legitimately, but the cost would be beyond the average Nigerian. So, they began to use neighbouring ports and smuggle in the product through the land borders. There is also high-level smuggling of the product through the creeks of Lagos and Port Harcourt.A shipping data from the Nigeria Ports Authority (NPA) would show a vessel bringing rice to Apapa Port, but such cargo never got offloaded at any of the Nigerian terminals throughout 2013, according to Mr Mark Walsh, ENL general manager for cargo operations. ENL manages Nigeria’s leading terminal for dry bulk and other food cargoes, including fish. The rice is off-loaded into smaller vessels and boats before the mother vessels are berthed and the product is crossed through the waters.―So, the parboiled rice is everywhere in the country– it is being sold in every market and in every food store in the country. Yet, none of it came in legally. Government is losing revenue that ought to have been raked in as duties and levies on imported rice and no one is asking any question,‖ said Walsh.An interaction with some of the traders at the Seme Border revealed a set of business people who do not understand the unlawful nature of the business in which they are involved. These traders are helped by experienced drivers who are old in the business of crossing prohibited goods, an act simply described as smuggling.―There is nothing wrong with me going to Cotonou to buy wares to sell in Nigeria. When I buy in Cotonou, I make good profit because they are cheaper there. Everybody eats rice and we don’t grow the product here,‖ said Roseline Umeh, a middle-aged woman who buys frozen chicken, rice, vegetable oil and soaps from Cotonou to sell in Nigeria. All these products are prohibited.Umeh said, sometimes, she used other routes around Seme, where she is helped by the locals. ―Customs people are wicked. If they see my goods, they will seize them. They are happy to put us out of business. They say we should not buy rice from Cotonou but we are not producing rice in Nigeria,‖ Umeh added.The Coordinator of the Trans-border Traders Association, Alhaji Mikky Okunola said villagers who joined smugglers to unleash mayhem at the Seme Border last year acted wrongly in sympathy with smugglers. This further suggests that the villagers are largely unaware of the criminality of smuggling.―So, these villagers do not know that the smuggling is a heinous crime and that those who do it are criminals of the State.―Rice smuggling is like a normal trade around here. People don’t see the crime in it and they always come against the Customs whenever there is a confrontation between the Customs and these smugglers. Some of the villagers even aid smugglers in their criminal act,‖ Okunola noted.
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The Seizures Are Not Enough Every month the Customs gather a mass of seized rice in 50kg bags, supported with monetary data of the seizures. The warehouse is full to the brim in December each year and the monetary value is indeed swollen. But this does not stop the flow of imported parboiled rice in Nigerian markets and not a dime is paid on the product as tariff.The Seme Area Command of the Nigeria Customs Service in reaction to recent incessant public inquiries on the rice question said in a statement that about 32,796 bags of rice were seized between January and December 2013. This according to the command, formed part of the N949.4 million duty paid value of rice seized by the Customs nationwide.―This figure could not have been achieved without our sustained enforcement drive and support of the comptroller-general of Customs, whose zero tolerance for smuggling has been our watchword,‖ the command said in the statement signed by its public relations officer, Mr Ernest Olottah.―To ensure full participation of all officers in the yuletide operations when rice smuggling is on the increase, the Controller cancelled all holidays and leaves. This paid off as we made single seizures of rice worth N12.5 million and N7.5 million at various times. ―Our close watch also beams on travellers who bring in bags of rice in what can be described as trickles under the pretext that they are meant for personal consumption. Intelligence reveals that such small quantities ranging between 25kg and 50kg per trip are stored in commercial quantity for onward shipment into markets,‖ Olottah said.The Customs also said its anti-smuggling drive now stretched to various swampy areas where vehicles could not access, in addition to the visible vehicular patrols and proper manning of its approved checkpoints.―We have increased foot patrol along the bush paths and raised our level of intelligence gathering for preventing, interdicting and uncompromising arrests of smuggling suspects. The Controller has set in motion a system that makes the fight against smuggling more inclusive. By meeting with traditional rulers, community chiefs, youth leaders, sister government organisations and all stakeholders in the border project, smugglers will in no distant time have no hiding place,‖ he added. Still Counting The Losses In 2012, Customs sources said Nigeria lost N32 billion to rice smuggling. But RMIDAN said the country loses about N36 billion in tax revenue to rice smuggling annually. The amount is the $11 million tax revenue per month due to smuggled rice imports, which the RMIDAN said it was capable of adding to the government coffers if rice smuggling and importation can be stopped. The President, RMIDAN, Owoeye, said in Abuja during the presentation of 150 operational vehicles to the NCS that the huge revenue loss to the country as well as the need to protect the N106 billion investment in backward integration by the association’s members made it imperative to donate the vehicles.―The quantum of rice being smuggled through our land borders from the Republic of Benin is increasing on a daily basis. An estimated 30,000 metric tonnes of rice is being smuggled on a monthly basis into Nigeria.―A survey in our local markets will attest to this fact as most of the rice products you see on display for sale are smuggled into the country through our land borders. By simple summation, 30,000MT is smuggled every month. This means that the Nigerian government would be losing over N3 billion worth of revenue monthly,‖ Owoeye said. Government Retraces Steps
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Recently, indications emerged that the federal government was getting tired of the rice import drama in which it has remained the sole actor, or at least the main actor, since it has brought in such other unpleasant characters as smugglers and unpatriotic officers of trade facilitating agencies in the last one year.Finance Minister and Coordinator of the Economy, Mrs Ngozi Okonjo-Iweala and the Minister Agriculture and Rural Development, Dr Akinwunmi Adesina have both said that the federal government had decided to embark on a downward review of the monstrous 110 per cent tariff placed on imported parboiled rice in January 2013. The Finance Minister dropped the hint at a recent meeting with the Manufacturers Association of Nigeria (MAN) in Lagos, where she also disclosed that consultations were going on between the President, Goodluck Jonathan, the Agriculture Minister and her ministry on the percentage of the review.Okonjo-Iweala said at the three-day ―Budget 2014 Jam‖ organised by the Ministry of Finance in collaboration with IBM Technology that the plan reduction in tariff on imported rice was to counter smuggling of the product, which had been robbing the government of some pretty amount of income.The unprecedented hike of tariff on rice was initially targeted at discouraging the importation of the product in order to create a ready market for locally produced rice. The Ministry of Agriculture is said to have embarked upon several rice producing projects with farmers in the northern part of the country. Adesina had also severally assured Nigerians that the country would become selfsufficient in rice by 2016 or thereabout. But till this day, the locally made rice is yet to enter markets in major cities of Nigeria, including Lagos, home for over 20 million Nigerians. Government may be coveting the revenue being lost to smuggled rice, but its decision to review the tariff on imported rice downward is also an indication of its admittance to a failed policy.―The 110 per cent duty encouraged smuggling from ports in neighbouring countries where the tariff is 10 per cent. It has indeed become necessary to review the 100 per cent duty and 10 per cent levy because the policy had created significant challenges, even though it had also led to increased local production of rice and created significant number of jobs, especially in the northern part of the country,‖ Okonjo-Iweala said.―We increased the tariff on imported parboiled rice, and it encouraged farmers to grow rice and we have grown over 1.1 million metric tonnes of rice, but we decided to bring it down because we see that it is not working as we want,‖ she added. Here Lies The Solution Obviously, in addition to the reality of the revenue loss the federal government has been nursing on imported rice in the last one year and the smuggling menace the situation has created, the government has also succumbed to pressure from stakeholders on the need to cut tariff on rice. However, to what extent the government intends to reduce the tariff becomes the next question. Even with the planned softening of the rice import policy, the borders remained closed to rice. ―No rice is allowed to come through the borders. The borders remained closed to rice importation,‖ said Mr Ernest Olottah, Customs spokesman for Seme Area Command of the Nigeria Customs Service. Stay up to date, follow us on Twitter; @LeadershipNGA
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Guangdong shows interest in boosting import of Pak rice March 30, 2014 lahore - Guangdong (China) grain sector has shown keen interest in enhancing the volume of import of rice from Pakistan and invited Pakistani rice growers to join hands with it in the larger benefit of the two countries.The Vice Chairman of Guangdong Grain Association Chen Yihe, leading a 16-member Chinese delegation, was talking to LCCI Vice President Kashif Anwar during a visit to the Lahore Chamber of Commerce and Industry. LCCI former President Shahzad Ali Malik also spoke on the occasion.
Chen Yihe said that the very objective of the visit was to look into the methodology and the technology being employed by Pakistani rice growers. He said that Guangdong rice importers had been doing business with their Pakistani counterparts for the last three years. In a statement issued here on Saturday, he indicated that Pakistan and Guangdong province could widely cooperate in agricultural development. He mentioned that in order to facilitate agricultural business development, technical innovation, ecological and resources sustainability, agricultural education, the two sides should sign the Memorandum of Understanding. Chen Yihe said that compared to other provinces in China, Guangdong is known to have the highest GDP, largest population, and the highest volume of international trade. He said that it was a rare opportunity for the rice growers in Pakistan to come forward and join hands with their Chinese counterparts. Speaking on the occasion, the LCCI Vice President Kashif Anwar said that China has a major role in the development process of Pakistan at governmental and business levels. Other than, at the governmental level the development of business holds prime importance as well.Pakistani businessmen are carrying out their major share of trade with China. We have a total worth of 6.7 billion US imports from China and 2.6 billion US $ exports to China totaling the total figure to 9.3 US billion dollars.Kashif Anwar said that the volume of trade can be increased by importing and exporting rice, cereals and grains to each other. He said that it is believed that agricultural techniques of China are far ahead and more developed as compared to Pakistan.He said that it would be a great favour if Pakistani farmers can be trained to start farming according
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to latest techniques and methods. Pakistan being an agrarian economy can benefit largely if the farming methods are improved and more advanced procedures are brought into practice. This will definitely increase the GDP share of agriculture in the overall GDP of the country.Newer seeds should be brought in the Pakistani market. Research and Development work should be shared.Joint collaboration of Pak China Rice growers and traders can add substantial volume to the Pak China trade. Knowledge sharing on agriculture techniques should be carried out.
How to stop rice smuggling? Price competitiveness is the answer – experts By Czeriza Valencia (The Philippine Star) | Updated March 29, 2014 - 12:00am MANILA, Philippines - How can rice smuggling be stopped? Experts yesterday said striving to make domestic rice prices competitive with the prices of imported rice and strict implementation of government policies governing rice trade would result in long-term solutions to smuggling woes in the industry.Dr. Fordeliza Bordey, a socioeconomic researcher at the Philippine Rice Research Institute (PhilRice) said that at the supply and demand aspect, rice smuggling persists in the Philippines because domestic rice prices are uncompetitive to those of neighboring Southeast Asian countries as production cost is higher.―Labor cost in the Philippines is high, comprising about 50 percent of the production cost. This is lower in other countries where farm mechanization rate is high,‖ she said during a forum on rice smuggling hosted by the Philippine Agricultural Journalists (PAJ) at the Coconut House in Quezon City yesterday.Bordey said the Philippines needs a strong mechanization program to lower the labor cost. Expenditures on other farm inputs like irrigation and fertilizer among others must also be lowered to reduce the cost of production per unit of Philippine-grown rice.The per kilogram production cost of palay in the Philippines is placed at P10 to P11 per kilogram while in Vietnam, the unit cost of production is currently placed at P5 to P6 per kilogram. In Thailand, the unit cost of production is placed at P8 per kilogram of unmilled rice. Business ( Article MRec ), pagematch: 1, sectionmatch: 1
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Lower production cost and more efficient postharvest techniques in Thailand and Vietnam enable these countries to sell rice at lower prices.The Philippines is also challenged by the larger rice production area Thailand and Vietnam has. ―Smuggling stems from the huge difference in the prices of local and foreign rice. This will be stopped when there is parity between local and foreign prices,‖ said Bordey.Rice smugglers naturally exploit this opportunity to profit from cheap foreign rice, especially now when there is confusion on the country’s rice importation policy.The Philippines is currently petitioning before the World Organization (WTO) to be allowed to impose a high tariff on rice imports until 2017 to enable the government to build the production capability of farmers. At its present state, the country’s rice industry would lose to competition with neighboring Southeast Asian countries when free trade is enforced in the region by 2015 and tariffs on rice imports are lowered to 35 percent.The Philippine’s special restriction on rice imports expired in June 2012. Several rice importers are arguing that because of the expiration of the QR, they no longer need to secure import permits from the National Food Authority (NFA) so long as they pay the duties.Under the Philippines’ commitment to the WTO, 350,000 metric tons (MT) of rice automatically gain access to the Philippine market under the Minimum Access Volume (MAV) scheme either as government-to-government tender or as country-specific quotas (CSQ). Imports within the MAV are levied a duty of 40 percent while a tariff of 50 percent is levied for out-quota imports. ―Because negotiations are still ongoing, this (policy) is not clear and rice smugglers use this as an excuse. The policy should be clarified by the government,‖ said Bordey. The WTO Committee on Trade and Goods is expected to meet in April, during which the country’s petition for the extension of its special restriction on rice imports would be taken up.Agriculture officials engaged in negotiations have expressed confidence that the Philippines would win the consensus of countries seeking market concessions in exchange for the QR extension.NFA spokesman Rex Estoperez, maintains, however, that while the QR extension is still on appeal, import permits continues to be are still required for rice imports. ―Our requirement is simple. All importations must have a permit, we coordinate with the Bureau of Customs on this,‖ he said during the forum.
He noted that under Republic Act 8178—also known as An Act Replacing Quantitative Import Restrictions on Agricultural Products, Except Rice, with Tariffs, Creating The Agricultural Competitiveness Enhancement Fund, And For Other Purposes—the agency has the sole mandate to grant import permits upon assessment of the domestic supply situation.Bordey said unregulated importation harms domestic rice prices both at the producer and consumer level.The NFA buys clean and dry palay at P17 per kilogram (kg), with additional incentives such as graduated delivery fee up to a maximum P0.50/kg; drying incentive fee of P0.20/kg; and Cooperative Development Incentive Fund assistance of P0.30/kg.
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Rice exports surge by 22.5 percent during July-February period March 28, 2014
Pakistan's rice exports have surged by 22.57 percent to $1.4 billion during July-February FY13-14 against $1.1 billion during the same period last year. Pakistan has exported some 2185753 thousand ton rice during July to February 2013-2014 against 2142303 thousand tons during the same period of FY 12-13. Basmati rice exports increased by 6.08 percent to $411.992 million during July to February-14 compared with $388.380 million during the said period of previous year. However, basmati exports quantity was reduced by 9.06 percent as it was some 366136 thousand tons during the said time period as against 402612 thousand tons during JulyFeb2012-2013. Similarly exports of non- basmati rice witnessed a massive surge as some $1.03 billion were earned during July to February against $794.723 million in the same period of last year. The non- basmati export quantity increased by 4.59 percent or 1819617 thousands ton in the said period compared with 1739691 thousands ton in the previous corresponding period. "Cost of doing business hit rice industry hard," a rice exporter said. He said that prices of fertilizers and power tariff increased manifold which has affected rice exports. The local prices of rice are higher as compared to international prices; the slight surge in value of rice export is just because of the exports of basmati rice, he added. Although the government claims to allocate a huge amount of subsidy to the farmers, but due to lack of transparency, almost all farmers remain deprived of subsidy "The Government's subsidy model is not farmer- friendly.", he added.
FCA set sugarcane, rice targets as 68.83mT, 2.786mT respectively * PASCO to procure 1.6 million tons wheat By Ijaz Kakakhel March 29, 2014
ISLAMABAD: The Federal Committee on Agriculture (FCA) fixed 68.83 million tons sugarcane production target for 2014-15 from an area of 1.167 million hectares. The rice targets for 2014-15 crops were fixed at an area of 2.786 million hectare and production at 6.81 million tons.Federal Minister for National Food Security and Research Sikandar Hayat Khan Bosan on Friday in a press conference said out of 6.81 million tons rice, Punjab will produce 3.5 million tons, Sindh 2.6 million tons, Khyber Pakhtunkhwa 0.1 tons and Balochistan 0.6 tons. The meeting also fixed the target of other crops including maaize, mash, chillies and tomatoes, he said.The minister said the government has not signed Non-Discriminatory Market Access (NDMA) with India and government would protect interest of farmers as will as other sectors. ―In-house deliberation is going on regarding the NDMA with India and the ministry also held discussion with farmers representatives about it,‖ he said while address a press conference after the meeting of the FCA.
The minister said our seed is sector very week but the passage of the new Seed Bill would help in ensuring quality seed. ―The present government is making efforts for the betterment of 97.5 percent small farmers in the country,‖ he said. He said that the government has enough stock of wheat and ready to cope with any untoward
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situation. The government has asked PASCO to procure 1.6 million tons wheat, he said.He said that following the directives of finance minister, the FCA will now be held after every three months instead of six months. The committee reviewed the performance of Rabi crops 2013-14 and fixed crops targets including Sugarcane, rice and other crops as well as discussed the position of supply of agriculture inputs for Kharif season 2014-15, he said. Representatives of provincial Agriculture Departments, Ministry of Finance, Pakistan Bureau of Statistics (PBS), Pakistan Space and Upper Atmosphere Research Communication, Indus River System Authority (IRSA), Pakistan Meteorological Department, State Bank of Pakistan (SBP), Zarai Taraqiati Bank Ltd (ZTBL), National Fertilizer Development Centre (NFDC), Chairman, Pakistan Agricultural Research Council (PARC), Agriculture Policy Institute, Federal Seed Certification and Registration Department, Department of Plant Protection, Federal Water Management, Pakistan Oilseed Development Board, PASSCO and senior officers of the Ministry of National Food Security and Research.The provincial representatives of agriculture department emphasised that adequate supply of urea and phosphate fertilizers during the Kharif must be ensured to achieve targets fixed. The committee was informed that irrigation water availability position for current Kharif season 2014-15 was estimated at 108.15 Million Acres Feet (MAF).The minister said that water availability during Kharif 2014-15 would remain satisfactory in view of the present position of the reservoirs and snowfall during the current winter. ―Kharif crops would only face five and eight percent‖, he said.
The committee was informed that quantity of certified seed for Kharif crops would be available at around cotton 40%, rice 81.3%, maize 39.6% while pulses 14.8% of their total requirements. The committee was informed that the availability of urea and DAP would be ensured during Kharif as per their requirements.He said the pesticide availability position during Kharif was reported satisfactory. The representative of banks informed that allocations of credit for agriculture had been substantially increased and 13% higher from previous year.
Guyana to Export 200,000 Tons of Rice to Venezuela by August 2014 Mar 28, 2014
Guyana is expected to sell about 200,000 to 250,000 tons of rice to Venezuela between now and August 2014, Guyana’s Agricultural Minister told local sources.During the last week of February, Guyana and Venezuela signed a Memorandum of Agreement (MoA) to renew the oil-for-rice deal (PetroCaribe Energy Cooperation Agreement). The Minister says that a team from the Guyana Rice Development Board (GRDB) is in Venezuela to finalize shipment of about 200,000 tons of rice in this year as part of the MoA. Shipments are expected to begin as soon as arrangements are finalized between the two countries. Guyana exported around 210,000 tons of rice (including 70,000 tons of white rice and about 140,000 tons of paddy) in 2013, according to local sources.The Guyanese government is also exploring new markets for its rice after the country produced 532,000 tons of rice in 2013, about 119,000 tons or 29% more than the targeted 413,000 tons. The Agriculture Minister
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says two shipments of rice have left to Haiti during the last two weeks and the country is also sending shipments to Jamaica, Europe and Trinidad shortly. The minister is hopeful of exporting between 470,000 to 490,000 tons of rice in 2014.According to the USDA, Guyana is expected to produce around 470,000 tons of rice in the MY 2013-14 and export about 345,000 tons. The country's rice consumption needs are estimated at 130,000 tons. Tags: Guyana rice exports, venezuela rice imports
Nigeria Government Plans Rice Levy Fund to Support Production; Agriculture Minister Defends Import Tariff Hike Mar 28, 2014
The Federal Government of Nigeria is planning to establish a rice levy fund to support local rice production, according to local sources.The Minister of Agriculture and Rural Development said the levy fund would be established from the proceeds generated from the new tariff on imported rice. He defended the new tariff policy and said that it was introduced to encourage local production and help boost investors’ confidence in local rice production.The minister said that Nigeria has the capacity to be self-sufficient in rice but is spending about N365 billion (around $2.2 billion) on importing rice. He said the new tariff policy is good for the country's local rice production adding that it has helped local rice production increase by 1.4 million tons in 2012 and produce 2.9 million tons in 2013.The Minister said that about 8,000 bags of rice were smuggled into Nigeria daily in 2013 from Benin Republic where the import duty is below 10% compared to 110% in Nigeria. He said that around 1.9 million tons of rice was smuggled into the country last year and criticized the Nigerian Customs Service (NIS) for not taking effective steps to curb rice smuggling. He said local communities along the borders are aiding the importers and asked the Customs to track such practices.Recently, Nigeria’s Finance Minister said the government will reverse the rice import policy to control smuggling of rice due to high tariffs. Nigeria currently imports nearly 3 million tons of milled rice annually since the locally produced rice of about 2.7 million tons is insufficient to fulfill the country's consumption needs of about 6 million tons, according to the USDA. Tags: Nigeria rice smuggling, nigeria rice imports
Pakistan Basmati Rice Export Prices Decline to $1,348 Per Ton in February 2014; Down 2% from Previous Year Mar 28, 2014
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Average Pakistan basmati rice export prices declined to around $1,348 per ton in February 2014, down about 2% from around $1,369 per ton in February 2013, and down about 3% from around $1,396 per ton in January 2014, according to the UN's Food and Agriculture Organization (FAO).FAO says that Pakistani basmati rice prices averaged around $1,372 per ton in the first two months of 2014, which is up about 1% from around $1,359 per ton during the same period in 2013. Tags: Pakistan basmati rice export prices, Food and Agriculture Organization (FAO)
Oryza Overnight Recap – Chicago Rough Rice Futures Little Changed Overnight as they Face Nearby Resistance at $15.500; Grains Begin Day Lower Ahead of Monday’s Crop Reports Mar 28, 2014
Chicago rough rice futures for May delivery are currently paused 0.5 cents per cwt higher overnight at $15.475 per cwt (about $341 per ton) as of 8:00am Chicago time. The other grains are seen lower this morning ahead of floor trading in Chicago: soybeans are currently seen marginally lower, wheat was paused about 0.8% lower, and corn is noted about 0.2% lower.U.S. stock index futures traded higher on Friday, with global shares boosted early in the day by hopes of monetary stimulus in China, the world's second biggest economy. Stock futures offered little reaction to government data that had personal spending and income up 0.3% in February. In addition, the University of Michigan will release its final business sentiment index for March at 9:55 a.m. U.S. stock index futures are currently trading about 0.2% higher, gold is currently trading about 0.3% lower, crude
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oil is seen trading about 0.5% higher, and the U.S. dollar is currently trading slightly lower at 8:00am Chicago time. Tags: chicago rough rice futures
Thailand Rice Sellers Increase Some of Their Quotes; Other Asia Rice Quotes Unchanged Today Mar 28, 2014
Thailand rice sellers increased their quotes for parboiled rice by about $5 per ton to about $405 - $415 per ton today. Other Asia rice sellers kept their quotes mostly unchanged. 5% Broken Rice Thai 5% rice (of new crop) is quoted around $375 - $385 per ton, about a $5 per ton discount to Viet 5% rice shown around $380 - $390 per ton. Indian 5% rice is quoted around $425 - $435 per ton, about a $25 per ton premium over Pak 5% rice quoted around $405 - $415 per ton. 25% Broken Rice Thai 25% rice of the old crop is quoted about $345 - $355 per ton, about a $5 per ton discount to Viet 25% rice shown around $350 - $360 per ton. Indian 25% rice is quoted around $365 - $375 per ton, about a $10 per ton premium over Pak 25% rice quoted around $355 - $365 per ton. Parboiled Rice Thai parboiled rice of the old crop is quoted around $405 - $415 per ton, up about $5 per ton from yesterday. Indian parboiled rice is quoted around $410 - $420 per ton, about $10 per ton discount to Pak parboiled rice last quoted around $420 - $430 per ton. 100% Broken Rice Thai broken rice, A1 Super, of the old crop is quoted around $305 - $315 per ton, about a $30 per ton discount to Viet broken rice shown around $335 - $345 per ton. Indian broken sortexed rice is quoted around $305 - $315 per ton, up about $5 per ton about a $25 per ton discount to Pak broken sortexed rice quoted around $330 - $340 per ton. Tags: Asia rice quotes, Thailand rice quotes, Vietnam rice quotes, India rice quotes, Pakistan rice quotes
India Average Wholesale Rice Prices Increase Sharply in March 2014
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Mar 28, 2014
Average monthly wholesale rice prices in India increased to around Rs.3,180 per quintal in March 2014, up about 16% from around Rs.2,731 per ton in February 2014, and up about 29% from around Rs.2,458 per quintal in March 2013, according to official sources.In terms of USD per ton, wholesale rice prices in India stand at around $530 per ton (using current exchange rates) in March 2014, up about 19% from around $444 per ton (using historical exchange rates) in February 2014, and up about 17% from around $452 per ton (using historical exchange rates) in March 2013. The average wholesale rice price for rice in January - March 2014 stands at around Rs.2,879 per quintal, up about 10% from around Rs.2,623 per quintal during the same period in 2013. However, in USD per ton terms, the average wholesale price in January - March 2014 of around $468 per ton (using historical exchange rates) is down about 4% from around $488 per ton during the same period in 2013, partly due to weakening of the Indian rupee against the USD in the second half of 2013.Average wholesale rice prices in India in March 2014 is the highest since at least January 2011. Local sources say that rice prices in India are up due to lower than
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expected production from the main rice crop (June – December) which was affected by weather disturbances last year. India's second rice crop (November – April) was also affected by unseasonal rains earlier this month in some parts of the country. Tags: India average wholesale rice prices
Iraq Allows Rice Imports from Thailand Mar 28, 2014
Iraq says that it is keen to purchase Thai rice and will allow Thailand rice exporters to participate in tenders to import rice, Thailand’s director-general Department of Foreign Trade told Bloomberg today.Iraq used to be a key market for Thailand, accounting for around 844,991 tons of Thailand’s total rice exports 2012, which was up about 35% from the previous year. However, Iraq stopped importing rice from Thailand after finding that
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some shipments had poor quality rice and the quantity was not as promised. Recently, the Iraq Grain Board said that it is purchasing rice from expensive origins in South America due to quality problems with Thai rice. Thailand’s director-general Department of Foreign Trade is in Iraq and claims that he has resolved the problems with the Iraq government. He says that a representative of the Iraq government will visit Thailand to verify rice quality in April. He also says that Iraq is keen to buy fragrant rice and parboiled rice from Thailand and Thailand may export at least 300,000 tons of rice to Iraqi government in the next two months.Rice production in Iraq is low and the country is expected to import around 1.35 million tons of rice in the calendar year 2014, according to USDA estimates. Tags: Thailand rice exports, Iraq rice imports
Rice Price Decline Could Fuel Farmer Protests in Thailand Mar 28, 2014
Rice farmers in Thailand are planning to step-up their protests now against declining rice prices in the country, according to Reuters.Rice farmers are waiting for payments under the rice mortgage program for several months and are already carrying out protests demanding immediate payments. They are also hit by low prices due to the discontinuation of the rice mortgage program (which used to pay farmers about 40% above market rates) in February 2014. According to sources, paddy rice prices in the local market have fallen by almost 63% to 5,500 baht (around $170) per ton since the discontinuation of the rice mortgage program, compared to 15,000 baht (around $460) per ton paid by the government. However, farmer woes have multiplied this month due to release of rice from the government stockpile and increasing supplies from the second crop (January - June) harvest estimated at around 8-10 million tons of paddy. Traders say the price of the common grade 5% broken white rice declined to around $390 per ton early this week, down about 5% from around $410 last week. The government has so far sold over 1.2 million tons of rice in auctions and direct sales from the beginning of March. It plans to sell around one million tons of rice every month, and local reports say that the government is also selling rice through secret channels at lower than market prices.Farmers say they have no option but to prolong their protests and are urging the government to control falling prices. They know that the government has no plans for farmers, but say that only protests could highlight their problems. Tags: Thailand rice prices, Thailand rice mortgage program
India Exports Rice Worth $5.6 Billion in April – December 2013 Mar 28, 2014
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India has exported rice worth around $5.6 billion during April – December 2013, with most of the rice exported to Iran and Saudi Arabia, according to official sources. At the current pace, India’s rice export value in the full fiscal year 2013-14 (April – March) is expected to reach around $7.5 billion, which is up around 21% from total rice exports worth $6.21 billion in FY 2012-13.The Middle East remains India’s biggest rice market in FY 2013-14. India has exported rice worth around $1.55 billion to Iran in the first nine months of FY 2013-14, which is already about 28% more than India’s rice exports worth around $1.2 billion to Iran in full fiscal year 2012-13. India’s rice exports to Saudi Arabia stand at around $721.5 million in April – December 2013, compared to around $753 million worth rice exports in the full FY 2012-13. India’s other major rice export destinations in April - December 2013 include Benin (about $463 million), UAE (about $223 million), Iraq (about $219 million), Kuwait (about $170 million), Senegal (about $153.6 million), Yemen (about $143 million), South Africa (about $141 million). India’s rice exports to Nigeria have declined significantly this year. India exported rice worth a mere $28.7 million to Nigeria during April – December 2013, which is down about 91% from rice worth around $339.4 million exported in full fiscal year 2012-13. However, India’s rice exports to Benin and Cameroon (both neighbors of Nigeria) continue to surge. India has exported rice worth around $463 million to Benin in April – December 2013, which is already up about 93% from rice exports worth around $240.93 million in full fiscal year 2012-13. India has exported rice worth around $86.3 million to Cameroon during April – December 2013, which is up about 13% of rice exports worth around $76.5 million in full fiscal year 2012-13. Tags: India rice exports
Oryza Afternoon Recap – Chicago Rough Rice Futures Finish the Week on Positive Note;Traders Make Last Minute Adjustments Ahead of USDA Report Due out Monday Mar 28, 2014
Chicago rough rice futures for May delivery settled 4 cents per cwt (about $1 per ton) higher at $15.510 per cwt (about $342 per ton). Rough rice futures remain on the offensive and managed to squeeze out a gain for the week despite a nearly 20 cent per cwt (about $4 per ton) selloff on Tuesday. Steady gains following Wednesday morning’s dip near $15.250 per cwt (about $336 per ton) were enough to erase early losses and see prices break through multiple layers of technical and psychological resistance, noted between $15.400 and $15.500 per cwt (about $340 and $342 per ton). These gains have returned the market to technically supportive territory, between the 20-day moving average and the upper Bollinger band, which provides a positive outlook for market direction in early trading next week. The bulls managed to log a 8.5 cent per cwt (about $2 per ton) gain on the week, with prices moving from $15.425 per cwt (about $340 per ton) at the close last Friday to today’s settlement price of $15.510 per cwt (about $342 per ton). Traders expect increased volatility on Monday as the market reacts to the release of key USDA reports. The other grains finished the day with mixed results; soybeans closed unchanged at $14.3650 per bushel; wheat finished about 2.1% lower at $6.9550 per bushel, and corn finished the day unchanged at $4.9200 per bushel.
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U.S. stocks climbed on Friday, lifting the Dow industrials into positive terrain for the week, after data had U.S. consumer spending rising and signals from Europe and China prompted thoughts of stimulus from overseas. A report Friday had consumer spending rising 0.3% in February after climbing by a revised 0.2% in January. Income rose 0.3% last month after rising by the same margin in January. In a speech reported by state media on Friday, China's premier indicated the Beijing government was prepared to take action to bolster the world's second biggest economy, saying the government would gradually roll out targeted measures to help economic activity. After a 150-point leap, the Dow Jones Industrial Average was lately up 85.54 points, or 0.5%, to 16,349.77. The S&P 500 advanced 10.62 points, or 0.6%, to 1,859.66, with energy and consumer discretionary rising the most and telecommunications and utilities hardest hit among its 10 major industry groups. The Nasdaq Composite climbed 22.03 points, or 0.5%, to 4,173.24. Gold is trading about 0.1% lower, crude oil is seen trading about 0.5% higher, and the U.S. dollar is seen trading about 0.1% higher at about 1:00pm Chicago time.Thursday, there were 297 contracts traded, up from 265 contracts traded on Wednesday. Open interest – the number of contracts outstanding – on Thursday decreased by 4 contracts to 7,946. Tags: chicago rough rice futures, U.S. rice prices, U.S. rice market
Passage of Water Bill to Improve Drought Contingency Plans, Say U.S. California Rice Growers Mar 28, 2014
Water has been a hot-topic in the U.S. state of California this year. Winter precipitation was below recent norms and most of the state has been in severe to extreme drought conditions for the last few months. That’s why the recent passing of the Sacramento Valley Rice Waste Discharge Requirement (WDR) is so important for rice growers in the state, who mostly grow medium-grain rice.The Central Valley Regional Water Quality Control Board passed the WDR after just 15 minutes, but the plan was 6 years in the making. Among the provisions are special allowances if the industry plants less than 300,000-350,000 acres due to drought. In such a case, growers will be allowed a one-year delay in ground water monitoring and also for the annual farm evaluation that’s required (which determines whether their practices are protective of water quality and meet industry performance standards). Tags: Drought, U.S. rice production, California rice, medium grain rice, california drought
Oryza Rice Currency Analysis for Today – India Rupee Up 0.7% Mar 28, 2014
U.S. dollar index was up +0.08% from the open today, when it traded at 80.180 at the close. The Euro was stronger +0.07% by the close, trading around 1.3750 by end of day, after trading between an intraday high of 1.3773 and low of 1.3705. Thai baht was stronger +0.02%, trading at 32.505 at the close of business.
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Indian rupee was stronger +0.71%, closing at 59.8900. Brazilian real was virtually unchanged at the close of trading today, trading at 2.2585 reais per dollar. Pakistan rupee was -0.03% weaker at 98.0835. Vietnamese dong was weaker -0.02% at 21008. Mexican peso was stronger +0.07% today, when it traded at 13.0725 pesos per dollar by the close of business. Chinese yuan was stronger +0.01%, trading at 6.2125. Argentine peso was weaker -0.01% at 8.0009 pesos per dollar. Tags: foreign exchange rates
PhilRice Urges Government to Reduce Rice Production Costs to Curb Smuggling Mar 29, 2014
A socioeconomic researcher from the Philippines Rice Research Institute (PhilRice) under the Department of Agriculture (DA) has urged the Philippines government to take steps to reduce production costs of palay (paddy rice) to curb smuggling, according to local sources.The PhilRice researcher says that higher production costs are leading to higher domestic prices vis-à-vis the prices of imported rice. He cites the examples of other Southeast Asian countries such as Thailand and Vietnam, which have reduced production costs and labor costs by implementing farm mechanization. Because of their increased planting area and more postharvest techniques, they can offer rice at much lower rates for international buyers, he says. The PhilRice researcher also says that while the cost of producing palay in the Philippines is P10 per kilogram (around $222 per ton), it is only P5 per kilogram (around $111 per ton) in Vietnam and P8 per kilogram (around $178 per ton) in Thailand. He adds that the labor cost is very high in the Philippines and accounts for about 50% of the production costs. He says that there should be parity between local prices and foreign prices to avoid smuggling which occurs because of the huge difference in the prices of local and foreign rice.The Philippines is planning to import 800,000 tons of rice via an open tender before the lean season (July - September) to maintain buffer stocks and control inflation. The USDA estimates the Philippines to import about 1.4 million tons in 2014, while the UN’s FAO expects it to import about 1.2 million tons. Tags: Philippines rice smuggling, Philrice, Philippines rice production costs
Oryza White Rice Index – Plunging Thailand Rice Quotes Drag Global Index Lower
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Mar 28, 2014
The Oryza White Rice Index, a weighted average of global white rice export quotes, ended the week at about $451 per ton, down about $6 per ton from a week ago, down about $10 per ton from a month ago and down
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about $30 per ton from a year ago. Higher export quotes from India and Pakistan were more than made up for with falling indications in Vietnam and Thailand. Thailand rice quotes fell about $25 per ton this week for highquality white rice. Indications were unchanged in the Americas; quotes there remain at steep premium to Asian rice as supplies are limited. Cheap ocean freight and cheap Asian rice has allowed more shipments to make it to the Western Hemisphere but the economics of this trade flow are likely to be temporary and phytosanitary concerns and consumer tastes are unlikely to allow this to be a permanent feature of the global market. Global export data shows that with Thai rice export quotes at par with the rest of Asia, Thailand’s rice export pace is up from last year, allowing the nation to slowly claw back some of the market share it has lost to India, Vietnam, and Pakistan in recent years amid the Thai rice scheme. The International Grain Council (IGC) released its March 2014 report on rice. The IGC projects 2013/14 global rice production at about 473.6 million tons slightly higher than the 473.2 million tons it projected in February, citing higher production in countries including: Brazil (8.7 million tons, up from 8.5 million tons projected last month) and China (142.3 million tons, up from 142.0 million tons). The Council also raised its projection for India’s rice export tonnage to 9.8 million tons in 2013/14, up from a February estimate of 9.7 million tons; Thailand exports are projected at about 7.8 million tons; Vietnam at 7.1 million tons; Pakistan at 3.4 million tons; and the U.S. at 3.4 million tons. Global imports are projected at 38.7 million tons for 2013/14, up from a February estimate of 38.5 million tons; the higher projection is due to expectations for higher import demand from China, the Philippines, and Indonesia in Asia, and Nigeria and Cameroon in Africa. Thailand Thailand 5% broken rice is today shown at about $380 per ton, down about $25 per ton from a week ago, down about $50 per ton from a month ago, and down about $160 per ton from a year ago. The Office of Agricultural Economics (OAE) estimates that paddy rice production in Thailand will reach about 38.8 million tons in 2014, unchanged from 2013, despite a 2% decline in planted acreage. Thailand’s Department of Foreign Trade sent representatives to Iraq this week to encourage Thai rice exports to the country. Thailand faces concerns about the quality of their stockpiled rice and the weight of exports, which Iraq complained about later in 2013 before halting Thai rice imports. Thailand’s director-general Department of Foreign Trade told Bloomberg today that issues have been resolved and that Iraq is interested in purchasing Thai rice and will allow Thailand to participate in upcoming tenders. Thailand is facing further concerns with its potential future exports and the status of the ASEAN Economic Community. Thai rice exporters of Hommali fragrant rice are worried about increased competition from Cambodia Jasmine rice and other neighboring countries once the free trade under the ASEAN Economic Community takes effect. Trying to get ahead of the change, some Thai millers are seeking to operate in Cambodia. India
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India 5% broken rice is today shown at about $430 per ton, up about $5 per ton from a week ago, up about $10 per ton from a month ago and down about $15 per ton from a year ago. The decline in rice prices may ignite local protests by rice farmers who have not been paid for their pledged paddy and are now facing worse market conditions. Rice millers in Chhattisgarh, India, are threatening an indefinite strike starting April 1 if the government doesn’t change its decision to extend the duration for mandatory custom milling from 2 months to 6 months. As many as 1,500 rice millers may protest in what is India’s sixth-largest rice producing state. Iran has revised the accepted level of arsenic content in basmati rice from 150 parts per million (ppm) to 120 ppm, according to local sources. This change has caused India’s basmati rice exports to Iran to drop temporarily. Iran is the largest importer or basmati rice, accounting for about 32% of India’s total basmati exports in FY 2012-13. Vietnam Vietnam 5% broken rice today quoted at about $385 per ton, down about $10 per ton from a week ago, down about $15 per ton from a month ago and down about $10 per ton from a year ago. The Philippines will tender to buy 800,000 tons of 15% broken white rice via an open tender set for April 15, according to Reuters. Vietnam is expected to win the bulk of this tender with Thailand expected to win the rest. Thailand fears that Vietnam lower its minimum export price (MEP) for 25% white rice in order to win the Philippines’ tender. Earlier this month, the Vietnam Food Association (VFA) lowered the MEP for low grade rice (25% - 100% brokens) to $355 per tons from the previous floor price of $365 per ton to help Vietnamese rice remain competitive against Thai rice. Vietnam exported about 859,119 tons of rice January 1- March 20, down about 41% from 1.45 million tons exported during the first quarter of 2013; the average price is about $432 per ton fob. Pakistan Pakistan 5% broken rice is today quoted at about $410 per ton, up about $5 per ton from a week ago, up about $10 per ton from a month ago and down about $20 per ton from a year ago. The Pakistan rupee continues to strengthen against the U.S. dollar, rising about 7% so far this month. A stronger rupee firms quotes and makes Pakistani rice less competitive on the global market. Exports to China could slow if the rupee continues to strengthen. On the upside, part of the rupee appreciation is said to be due to foreign investment in infrastructure including roads and electrical power, which should yield productivity gains in the long run. Average Pakistan basmati rice export prices declined to around $1,348 per ton in February 2014, down about 2% from around $1,369 per ton in February 2013, and down about 3% from around $1,396 per ton in January 2014, according to the UN's Food and Agriculture Organization (FAO). FAO says that Pakistani basmati rice prices averaged around $1,372 per ton in the first two months of 2014, which is up about 1% from around
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$1,359 per ton during the same period in 2013. Brazil Brazil 5% broken rice is today shown at about $665 per ton, unchanged from a week and a month ago. The Brazilian paddy rice index maintained by CEPEA increased to around 33.75 real per 50 kilograms as of March 24, 2014, up from around 33.69 real per 50 kilograms recorded a week earlier on March 17, 2014. In terms of USD per ton, the index stood at around $290.97 per ton on March 24, 2014, up about 1% from around $287.89 per ton seen on March 17, 2014. Harvest is just under half complete and farmers are said to be holding stocks in anticipation of higher paddy prices. The USDA Post predicts Brazil rice exports to decrease to about 900,000 tons in MY 2014-15 (April 2015March 2016). This is about 5% less than the previous year, when the government was trying to reduce its rice stocks. The Post also anticipates exports will continue to shift away from Africa and the Middle East and towards Central American countires such as Nicaragua, Costa Rica, and Venezuela. Argentina’s Ministry of Agriculture reports that Argentina has exported about 50,873 tons of rice in January 2014, about 38% more than in January 2013. That includes 23,059 tons to Brazil and 20,951 tons to Senegal. Uruguay and Argentina 5% broken rice is today shown at about $625 per ton unchanged from a week ago and down about $5 per ton from month ago. A survey by the Association Correntina Rice Planters and Grain Exchange Entre Rios forecasts that rice planting area in Argentina will increase to about 231,806 hectares in 2013-14, up about 1.6% from the previous year. US U.S. 4% broken rice is today quoted at about $585 per ton, unchanged from a week ago and up about $5 per ton from a month ago and down about $50 per ton from a year ago. Northern Peru is experiencing drought conditions that may increase the country’s reliance on rice imports from the U.S., according to local sources. Some estimates predict a 40% (about 800,000 tons) decline in Peru’s rice production in 2014-15. Although current phytosanitary protocol is not in place for the U.S. to export to Peru, U.S. Rice Federation representatives are working to lift the ban by the end of this year. This week the USDA reported that cumulative net export sales for the week ending on March 20, totaled 7,700 tons, which was 94% lower than last week and 91% lower than the prior 4-week average. Increases were reported for the following destinations including: 3,200 tons to Mexico, 1,500 tons to Canada, 700 tons to The Dominican Republic, 400 tons to Australia, 300 tons to Singapore. There were also decreases of 100 tons reported for Bahamas. Nets sales of 2,000 tons for 2014/2015 were reported for Taiwan. U.S. rice exporters
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shipped 93,800 tons, which was 20% higher than the previous week and 3% higher than the prior 4-week average. The primary destinations included: 47,200 tons to Mexico, 12,600 tons to Turkey, 12,500 tons Japan, 7,300 tons to Haiti, and 2,500 tons Honduras. Chicago rough rice futures for May delivery closed the week at $15.510 (about $342 per ton), not far from where they closed Monday at $15.520 (about $342.16 per ton) but marginally higher than the $15.425 (about $340 per ton) at close Friday, March 21. Prices midweek dropped slightly, reaching a low of $15.265 (about $336.50 per ton) before recovering on Thursday and Friday. Other Markets: Cambodia 5% broken rice is today shown at about $455 per ton unchanged from a week and a month ago. Taiwan completed its first 2014 Country Specific Quota Simultaneous Buy-Sell (SBS) tender for 10,000 tons of U.S. origin rice and 2,000 tons of Thai origin rice on March 18, according to the USDA Post in Taipei. Separately, the Taiwan Agricultural Research Institute (TARI) has released a locally developed nutritious and high-yielding rice hybrid known as ―Tainung Sen Glutinous 24,‖ an indica strain of purple sticky rice with good resistance to rice blast.
Rwanda is considering rice import barriers such as heavy taxes to boost domestic rice production in the country, where imported Asian rice is much cheaper than locally produced products. Another African country, Nigeria, is also looking to boost domestic production – by encouraging the development of private rice processing facilities. Nigeria’s anti-import policies result in an estimated 85% of food and agriculture products shipped to Benin eventually winding up in Nigeria through informal cross-border trade. Nigeria is looking to achieve rice self-sufficiency by 2015, according to local sources, and the informal trade entering the country is challenging this goal. In its new National Export Strategy, Myanmar will include rice as a national export item. The government plans to increase rice exports to 3 million tons over the next five years, from 1.6 million tons of rice in FY 2012-13 (April-March). Rice imports into China during January and February were about 338,700 tons of rice, which is about 20% less than the same period in 2013, according to the General Administration of Customs of China (GAC). However, the bulk of those imports came in February 2014, during which 139,000 tons were imported, an impressive 15% more than February 2013. Paddy rice production in Colombia may drop 3% from MY 2013-14 to 1.86 million tons in MY 2014-15 (April-March), according to the USDA Post. The decline is anticipated despite increased dry-land rice area planting and is due to weather, production inefficiencies, slow technology adoption, high input costs, poor infrastructure, and possible fungus.
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The USDA Post also anticipates that Ecuador’s milled rice production in MY 2014-15 (April-March) will increase 3% from MY 2013-14 to 787,000 tons in MY 2014-15 due to new rice varieties and good weather. Tags: Oryza White Rice Index (WRI)
PhilRice Urges Government to Reduce Rice Production Costs to Curb Smuggling Mar 29, 2014
A socioeconomic researcher from the Philippines Rice Research Institute (PhilRice) under the Department of Agriculture (DA) has urged the Philippines government to take steps to reduce production costs of palay (paddy rice) to curb smuggling, according to local sources.The PhilRice researcher says that higher production costs are leading to higher domestic prices vis-à-vis the prices of imported rice. He cites the examples of other Southeast Asian countries such as Thailand and Vietnam, which have reduced production costs and labor costs by implementing farm mechanization. Because of their increased planting area and more postharvest techniques, they can offer rice at much lower rates for international buyers, he says.The PhilRice researcher also says that while the cost of producing palay in the Philippines is P10 per kilogram (around $222 per ton), it is only P5 per kilogram (around $111 per ton) in Vietnam and P8 per kilogram (around $178 per ton) in Thailand. He adds that the labor cost is very high in the Philippines and accounts for about 50% of the production costs. He says that there should be parity between local prices and foreign prices to avoid smuggling which occurs because of the huge difference in the prices of local and foreign rice.The Philippines is planning to import 800,000 tons of rice via an open tender before the lean season (July - September) to maintain buffer stocks and control inflation. The USDA estimates the Philippines to import about 1.4 million tons in 2014, while the UN’s FAO expects it to import about 1.2 million tons. Tags: Philippines rice smuggling, Philrice, Philippines rice production costs
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