14th January,2015 Daily Global Rice E_Newsletter by Riceplus Magazine

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Daily Global Rice E-Newsletter

Rice coalition eyes Cuba

Daily Global Rice E-Newsletterwww.ricepluss.com

January 14, 2015Volume 5, Issue I

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Posted: Wednesday, January 14, 2015 12:00amFor Tri-County Newspapers

The USA Rice Federation has joined withmore than 25 prominent U.S. food andagriculture associations and companies toform a coalition that seeks to advance traderelations between the United States andCuba.The U.S. Agriculture Coalition forCuba formally launched at an event inWashington D.C. on Thursday that wasattended by Secretary of Agriculture TomVilsack, a bipartisan group of members ofCongress, and Missouri Gov. Jay Nixon.The

purpose of the USACC is to re-establishCuba as a market for U.S. food andagriculture exports and address liberalizingtrade between the United States andCuba.The coalition will work to end theembargo and allow for open trade andinvestment.

"We know the Cuban market for rice is nottheoretical. It is real, it is large, and it iscompelling," said Betsy Ward, president andCEO of USA Rice, in a statement. "Withrice imports valued at more than $300million, Cuba is the second largest importerof rice in the Americas. And there was atime when Cuba was our number one exportmarket we look forward to a return tothose days."The U.S. rice industry has beenadvocating for open trade and travel withCuba since the mid-1990s and was the firstU.S. commodity back in Cuba in 2001,exhibiting at the Havana Trade Fair, whichled to the first U.S. rice sale to Cuba in morethan 40 years.Throughout the last decade,USA Rice has sponsored numerous trademissions, led and participated in manyforums, here and in Cuba, and participatedin eight Havana InternationalFairs.Consequently, by 2004, U.S. rice salesto Cuba were valued at $64 million.

However, U.S. government policy changesreversed that trend, and by 2009, sales fell tozero, where they remain."We applaud the Obama Administration fortheir recent actions, and ask our leaders in

Congress to normalize trade with this nationthat we believe will once again become amajor market for U.S. rice," Ward said."Open trade with Cuba would be anenormous boon for U.S. rice farmers, andwe look forward to working with the Cubanrice industry so together we may supply theCuban people with high-quality, deliciousrice."

http://www.appeal-democrat.com/colusa_sun_herald/rice-coalition-eyes-cuba/article_f7e1e85c-9ba0-11e4-b1e4-5f49fac7ed5d.html

Japan skips food wheatpurchase tender this week Tue Jul 1, 2014 8:11am GMT

TOKYO, July 1 (Reuters) - Japan's Ministryof Agriculture skipped buying food qualitywheat via a regular tender this week. SinceJuly has 5 weeks, the ministry decided toskip a tender this week and planned to start aregular tender from the following week, anofficial at the bureau said on Tuesday.Japan,the world's sixth-biggest wheat importer,keeps a tight grip on imports of the country'ssecond most important staple after rice and

buys the majority of the grain for milling viatenders typically issued three times a month.(Reporting by Michio Kohno; Editing byAnupama Dwivedi)

http://af.reuters.com/article/commoditiesNews/idAFL4N0PC26520140701

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Thai govt aims to sell 17mtonnes of stockpiled riceover 2 years

BANGKOK, Jan 13 (Reuters): Thailand'sgovernment plans to sell around 17 milliontonnes of rice over the next two years fromstockpiles built up under the previousadministration's failed buying programme, thecommerce ministry said on Tuesday,announcing a new series of tenders.

Thailand was the world's top rice exporter fordecades until its grain became uncompetitive

under the buying scheme brought in by oustedformer Prime Minister Yingluck Shinawatraafter she won election in 2011.The scheme paidfarmers well above market rates for their cropsand the Finance Ministry, in its most recentestimate, said it caused losses of more than $15

billion to the state, although that would bereduced if grain is sold.

"We have set up a plan to sell 17.8 milliontonnes of rice within a two-year timeframe,"Chutima Bunyapraphasara, permanent secretaryat the ministry, told reporters.The aim is to sell10 million tonnes this year and 7 million in2016, she added.Terms of reference for a tenderfor 1 million tonnes would be announced on Jan.20, she said, adding that the ministry would holdtwo or three tenders from January to March.Theauthorities have held four, smaller tenders sincethe 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 beendone for larger amounts, of which 570,000tonnes had so far been shipped or was about to

be shipped this month, she added.An auditconducted after the military seized power in

May suggested that only 10 per cent of the grainin the stockpiles was of standard export quality.The buying scheme effectively lapsed in early2014 when political turmoil meant Yingluck'sgovernment was unable to pay farmers for their

grain.Thailand's parliament began animpeachment hearing against Yingluck onFriday over her role in the subsidy programme.Critics denounced it as a wasteful handout tosupporters of Yingluck and her brother ThaksinShinawatra, another former premier ousted bythe military.

The country exported around 10.8 million tonnesof rice in 2014, a record high, according to thecommerce ministry.Its previous record of 10.4

million tonnes was reported in 2011, after whichIndia took over as top exporter.Thailand isexperiencing drought in eight provinces, whichwill cut its 2015 off-season crop output by morethan 30 per cent, according to the latest reportfrom the Office of Agricultural Economics.Thesmaller harvest is unlikely to have a big impacton global prices, which are still under pressurefrom Thailand's stockpiles and bumper output inrival exporters India and Vietnam.

http://www.thefinancialexpress- bd.com/2015/01/14/75715

Officials prepare for riceexports 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) willsend a list of 10 rice exporting companiesand otherdocuments to China. The CCIC will hold

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talks between the Myanmar government,COFCO Group and the companies thatsigned the memorandum of understand withthe 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 ofMRF.At the invitation of China early thismonth, delegations from MRF, the RiceMillers' Association, Myanmar Rice &Paddy Traders Association, the Agriculture

and Irrigation Ministry and theCommerce Ministry talked with theirChinese counterparts about rice tradingagreements proposed in 2014 and finalisedthe deal.Negotiations between the MyanmarAgriculture and Irrigation Ministry andChina's Administration of QualitySupervision, Inspection and Quarantine havealso taken place.Myanmar is thriving to

export its world-class quality rice to China.Current exports are ofmediocre quality. World Bank studiesclaimed the price of rice in Myanmar is themost unstable among Southeast Asian riceexporting nations.The studies explained the40-per cent hike in Myanmar rice prices asthe result of weak market structures, pooraccessibility of information, limited productvariety and costly storage charges.In the2013- 14 fiscal year, Myanmars exports of1.1 million tonnes of rice earned US$400million; in 2014-15, Myanmar is expected toreap $500 million from 1.5 million tonnes inrice exports.

http://www.elevenmyanmar.com/index.php?option=com_content&view=article&id=8674:officials-prepare-for-rice-exports-to-china&catid=33:business&Itemid=356

Iraq submits a tender forthe purchase of 30 thousandtons of rice

Photo Credit:Reuters/Ajay Verma

The Iraqi Ministry of Trade announced onTuesday launching a tender to process the

ministry with an amount of 30 thousand tons ofrice to cover the requirements of the ration card,while economists justified it and said that

production would not fill the growing need forseveral 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 originsmust be from America, Uruguay, Argentina,Brazil, Vietnam and Thailand with thespecifications of " White Grain."The ministrysaid 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 initialinsurances by a bank guarantee or a check

certified for the General Company for GrainTrade in the ministry.Analysts and economists

believe that Iraq's move towards the globalmarket is to meet the needs of its population ofgrain for many economic conditions.

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The economist , Falah Hassan told "Shafaq News" that "Iraq has a great potential in the production of agricultural crops, but theconditions experienced in the country affectedlocal production significantly."He explained that"local production in Iraq began to diminish yearafter a year due to economic factors as well as

political factors , although it has recentlyimproved, but of course still modest in spite ofthe many possibilities that exist in Iraq."Hassanadded, "there has been a clear deficit in thecoverage of such crops as wheat barley and rice,so that Iraq covers domestic demand throughimports .. For example, rice needs large amounts

of water while Iraq is going through a crisis inirrigation projects and this is a big challenge dueto lower levels of Tigris and Euphrates rivers bythe impact of upstream countries "Turkey andSyria.

Shafaq News 2015

https://www.zawya.com/story/Iraq_submits_a_tender_for_the_purchase_of_30_thousand_tons_

of_rice-ZAWYA20150114044000/

Nigeria: Govt AllegesSabotage of Rice Policy ByInvestors

By Femi Adekoya

FOREIGN investors who have exceeded their preferential allocation quotas for imports therebyincurring N36.56 billion debts payable to thenation's treasury are sabotaging the new rice

policy, the Federal Government saidyesterday.According to the Minister ofAgriculture and Rural Development, Dr.Akinwunmi Adesina, the Federal Governmentmay also wield its big stick on importers who

were re-bagging locally produced rice asimported one while receiving waivers forsuch.Besides, the Federal Government noted thatit had concluded plans to establish and manage a

National Domestic Rice Production Fund

(NDRP Fund) that would be used to supportfarmers and millers in expanding production andmilling operations in the relevant states of

previously intended investments by defectinginvestors.

The Fund is expected to be generated fromrecalled bonds from any of the 26 investors whodefaulted from their investment plans whileenjoying preferential allocation quotas under theDomestic Rice Production Performance Bond

amounting to $195 million or N35.3 billion.Already, the ministry, citing data from Nigerian Customs, identified Popular Farms andMills as well as other importers as responsiblefor exceeding their import quotas under the new

policy.

Furthermore, the ministry identified three othercompanies including Conti-Agro, CentralTrading and Export and African firms as havingimported 98,285 metric tonnes of rice withoutapproved quotas, thereby owing the treasury

N8.16 billion.A statement from the ministrystated that the companies without waiting fordetermination of the supply gap by the inter-ministerial committees or issuance of quotas hadimported 634,270.16 metric tonnes of finishedrice. This represents 56 per cent of the totalimported finished rice under the new policy as atDecember 3, 2014.

Adesina was quoted as saying: "Nigeria cannotlose any revenue due to the economy. Allcompanies who have imported rice above theirallocated quotas must pay fully the amounts dueto the treasury. With the devaluation of the

Naira, all hands must be on deck to ensure thatall leakages are blocked. Nigeria is not forsale."I will not be intimated, bought or

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corrupted. I will not sell my country to anyforeign company. The President has given us aclear matching order to make Nigeria self-sufficient in rice and we will fully achieve this.All who owe the Federal Government must pay

what they owe and Nigeria must lose no singlenaira. No amount of malicious representationwill derail the new policy.

"According to the Customs, the importers agreedto pay any duty and levy differential if theireventual quota allocation turned out to be lowerthan what they have imported."As at December3, 2014, Popular Farms and Mills had exceededtheir approved quota by 300,204.53 metrictonnes and Olam by 110,163.63 metric tonnes, a

combined total of 410,368.16 metric tonnes."

According to the new rice policy, Popular Farmsand Mills owes N19.379 billion in unpaid levieswhile Olam's indebtedness is N9.02 billion.Together, the two Asian companies owe thefederal Government about N28.39 billion.

"Rather than pay the levies owed, the two firmswrote letters to the Minister asking for a revisionof their rice import quotas; Olam asked for

400,000 metric tonnes rice import quota, tocover the quantities of rice that they had goneahead to import (or still desire to import)without any approved quotas or Domestic RiceProduction Plans (DRPP) as required, but a mereagreement with Nigerian Customs that theywould pay the duties due once the quotaallocations are out", the statement read in part.

The ministry expressed optimism of the nationalsupply gap of import grade rice declining from

the present 1.5 million metric tonnes to onemillion this year, with a further projected declineof 0.3 million MT in 2016 and zero in 2017when the country is expected to become self-reliant in rice production and when rice mills

purchased by investors become operational.

The ministry explained that the new rice policyhad stated that importation of brown or polishedrice should be limited to the national supply gapfor import-grade rice to be determined by aninter-ministerial committee chaired by the

Agriculture Ministry, with membership drawnfrom the Ministries of Finance, Industry, Tradeand Investment and the National PlanningCommission.

It added that rice import quotas were issued on aconditional basis to guarantee that the DRPPsare met to achieve Federal Government's goal ofrice self-sufficiency."Specific qualifying criteriato receive the quotas were stipulated and theyinclude: applying companies must be a

registered firm in the country and a member ofrelevant trade association; only new investorsofficially known to the Ministry via submissionof a DRPP will be allocated a quota; applyingcompanies must have a minimum plannedinvestment in rice production and processing of$10 million.

"Basically, in order to qualify for a final quotaallocation, all qualifying companies had todeposit a Domestic Rice ProductionPerformance Bond ("the Bond") as a means ofdemonstrating a clear commitment to domesticinvestments in rice production and processing.For each investor, the Bond value will beequivalent to 30 per cent of the value of thequota received. This Bond must be secured at aqualifying bank approved by the FederalMinistry of Agriculture and Rural Development.

"Investors' rice investment plans will be strictlymonitored against key milestones. Failure toexecute on these plans will lead to a 'call' on theBond by the Ministry."The goal is to turnimporters into local producers and that is beingachieved. No one is hoodwinking anybody. Adetailed assessment of existing rice millers,importers and new rice investors has also beenundertaken", the ministry explained.

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However, when The Guardian tried to reachsome of the identified investors who haveovershot their quotas, they stated that the

Nigerian Customs was yet to communicate theirfinancial obligation to them in terms of the

excess imports, adding that they continue toawait Customs' response to them.

http://allafrica.com/stories/201501141088.html

Major Grant Awarded toRice Industry, DU forHabitat ConservationEfforts

From left: LA rice farmer John Owen,

USA Rice CEO Bet sy Ward, and

NRCS Chief Jason Weller

WASHINGTON, DC -- Today Secretary ofAgriculture Tom Vilsack announced approvedgrants from the first round of proposals to thenew Regional Conservation Partnership Program(RCPP). The USA Rice Federation, DucksUnlimited, Inc. (DU), and more than 40collaborating partners are pleased that the "RiceStewardship Partnership - Sustaining the Futureof Rice" project was selected for support.

This project will help rice producers conservenatural resources such as water, soil andwaterfowl habitat, while having long-term

positive impacts on their bottom line.

The RCPP application process was verycompetitive; less than half of all applicationswere awarded funding, and no proposal wasfully funded. However, the USA Rice and DUnational request was deemed to have significantmerit, and the Natural Resources ConservationService (NRCS) - the agency responsible foradministering RCPP - awarded the partnership agrant of $10 million, one of the largest awardsgiven under the program.

"The Mississippi Alluvial Valley, Texas' andLouisiana's Gulf Coast, and California's CentralValley are critical landscapes for waterfowl andtherefore ranked as some of DU's top prioritiesfor habitat conservation," said DU President andArkansas rice producer George Dunklin.A 2014study conducted by DU scientists for The RiceFoundation demonstrated that rice agriculture

provides 35 percent of the food resourcesavailable to migrating and wintering dabblingducks in the regions where rice is grown in the

United States.

"U.S. rice farms are valuable, not just for thenutritious commodity they produce and their

positive impact on the economy, but also asimportant contributors to the entire ecosystem,and today's announcement from NRCS andUSDA recognizes that fact," said USA Rice

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Federation Chairman Dow Brantley, anArkansas rice farmer. "Wildlife and waterfowldepend on our farms as much as any of us do."

Across the board

Established in the 2014 Farm Bill, the RCPPcompetitively awards funds to conservation

projects designed by collaborating partners."TheUSA Rice Federation, Ducks Unlimited, and allof our partners commend the USDA for theirvision in creating partnership-drivenconservation initiatives, and we especiallyappreciate each of the six state NRCS officeswho were instrumental in crafting a competitive

proposal," said Betsy Ward, President and CEO

of USA Rice. "This is a giant step forward forconservation in ricelands with many more stepsto come."

"We applaud the many rice producers whointegrate extra conservation measures into theirrice production to maintain water quality and

provide much-needed waterfowl habitat," saidUSDA NRCS Chief Jason Weller.

"The partnership between DU, USA Rice, and

USDA offers increased technical and financialassistance to help producers accomplish thesegoals on their land, and the tangible benefits tofarmers, the environment, and all Americanswill be felt for a long time."The Arkansas NRCShas scheduled a meeting Friday, January 16, toannounce the state's RCPP project participants,and to invite local rice farmers to aninformational session with RCPP ProjectSponsors. All 50 states and Puerto Rico received

NRCS funding for conservation projects and

have scheduled similar events in the comingweek.

Contact: Michael Klein (703) 236-1458

Louisiana Rice ReceivesRCPP Funding

From left: Donald Berken, Kevin Norton, JeffDurand and Randy Jemison

BATONROUGE, LA -The Natural

ResourcesConservation

Service (NRCS)announced four

newconservation projects today, two of which willdirectly benefit the state's rice producers."We setout to deliver conservation programs that wouldwork on rice, waterfowl, water quantity, quality,and sustainability, and we've done just that,"said Kevin Norton, the NRCS StateConservationist for Louisiana. "This is quitespecial, bringing big new resources to Louisianathat will translate into real conservation."

The state received approximately $1.5 millionfor the three state conservation programs, and

Norton says the lion's share is going to the RiceStewardship Program in Southwest Louisiana, proposed collaboratively by Ducks Unlimited,the Louisiana Rice Growers Association, andothers. That region represents about 70% of ricegrowing in the state, but rice producers in otherareas of the state will be eligible to participate inthe national USARice-DU RCPP

program (seelead storyabove)."Rice isgood for ducksand conservationis critical," saidAlicia Wiseman,Rice Stewardship Program Coordinator forDucks Unlimited Southern Region. "These

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programs will help feed people, supportfamilies, and provide habitat for waterfowl."

"This is a good day for Louisiana rice producerswho are excellent stewards of the land, and playan important role in our state's economy and inhelping to feed us all sustainably," said JeffDurand, a Louisiana producer and co-chair ofUSA Rice's Conservation StewardshipPartnership who spoke at the event.The

programs are continuing to take shape anddevelop and all rice RCPP programs areexpected to be major areas of discussion at statemeetings next month.

Contact: Michael Klein (703) 236-1458

California RiceCommission Secures State-Specific RCPP Funding

SACRAMENTO, CA - In a separateconservation proposal, the California RiceCommission (CRC) received an RCPP grant of$7 million. This program will support many ofthe same practices offered by the highlysuccessful Waterbird Habitat EnhancementProgram and efforts to develop a viable nestingcover crop system for idled ricelands."Havingthese additional resources should provide a big

boost to our industry's longstanding wildlifeconservation efforts," said Paul Buttner,Manager of Environmental Affairs for the CRC."California ricelands provide habitat to nearly

230 wildlife species - millions of birds that flyalong the Pacific Flyway, and the value ofwinter waterfowl habitat in California Rice isestimated at $2 billion."

Contact: Deborah Willenborg (703) 236-1444

Western Rice BeltConference and Texas RiceCouncil Annual Meeting set

for Jan. 21 PRESS RELEASEPosted: Wednesday, January 14, 2015 4:00amPRESS RELEASEThe annual Western Rice Belt ProductionConference will be held on Wednesday,January 21, 2015 at the El Campo CivicCenter. The conference will begin with anEarly Bird Session on Precision starting at7:30 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 ExtensionService, U.S. Rice Producers Association,and Texas A&M AgriLife Research willoffer growers and others the opportunity tohear presentations from the top Extensionand Research scientists from Texas andLouisiana as well as respected individualsfrom the rice industry. Topics and speakerswill include: Rice Policy Update, Dr. JoeOutlaw; Rice Market Update, DennisDelaughter; Localized Effect of CarryoverRice, Jay Davis; Rice Disease MgmtUpdate, Dr. Don Groth; Pesticide Laws andRegs Update, Greg Baker; GroundwaterUpdate, Neal Hudgins; and InsectManagement in Rice, Dr. Mo Way.

The Texas Rice Council will also conducttheir Annual Meeting in conjunction withthe 2015 Western Rice Belt Conference. TheTexas Rice Council will conduct their

producer elections during the lunch hour,following the announcement of the Rice

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Poster Contest.For more information,contact the Texas AgriLife Extension officein Matagorda County 979-245-4100 orWharton County 979-532-3310, or gotohttp://wharton.agrilife.org and click on

Events to view a flyer for the RiceConference. 2 CEUs (1 L&R and 1 IPM)for TDA Pesticide Applicators will beawarded at this event. CCA hours have beenapplied for and will be offered pendingapproval.

http://www.yourhoustonnews.com/friendswood/living/western-rice-belt-conference-and-texas-rice-council-annual-meeting/article_cb18ba90-5b4a-53f3-8e39-10fb8992b503.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 | NewDelhi

January 13, 2015 Last Updated at 21:38 IST

India's bid to protect its basmati-ricegrowers through getting a geographicalindications (GI) registration has come upagainst formidable hurdles. These come not

just from basmati growers in Pakistan, butalso Madhya Pradesh, which it did not listamong traditional basmati-growing regions.TheAgricultural and Processed FoodProducts Export DevelopmentAuthority (Apeda) wants to thwart othercountries from selling their scented rice as

basmati globally. Many attempts have beenmade in the past by foreign rice-tradingcompanies to confuse consumers by using

similar-sounding names, such as Jasmati andKasmati.

Apeda has spent crores of rupees on court

cases abroad to preserve the basmati epithetfor the typical Indian long-grained, non-sticky aromatic rice. The GI r egistration athome would strengthen its case ininternational litigation.Apeda's woes arerooted in the fact that it has sought the GIstatus for basmati grown only in thecontiguous region spanning Punjab,Haryana, Himachal Pradesh, western UttarPradesh, Uttarakhand, Delhi, and parts ofJammu and Kashmir. Madhya Pradesh's riceindustry has claimed that its state is alsolocated in the Indo-Gangetic belt, part ofwhich is suited for basmati cultivation.

Pakistan's Punjab and adjoining regions,especially the foothills of the Himalayas, arewell 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 inan order issued in December 2013 that itwas duty-bound to guard the interests of

producers of all the areas from where a product came. Apeda is, however, nowcontesting this plea in the Chennai-

based Intellectual Property Appellate

Board (IPAB).

Technically, the GI label is meant to setapart a product whose quality, reputationand other traits are attributable to itsgeographic origin. This definition applies

perfectly only to the desi basmati, such as

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Basmati 370, whose photosensitive natureallows it to be grown only in a region havinga particular day-length during the basmati-growing season. That limits basmati

cultivation to only the northwestern part ofundivided India. However, the new evolved basmati types, including the high-yieldingdwarf and semi-dwarf varieties, are, by andlarge, not photosensitive and can, thus, begrown in areas outside the traditional

basmati belt as well.

These varieties have now almost totallyreplaced the desi basmati in the domesticand export markets. It would, therefore, beunfair to deny them basmati statusirrespective of where they are grown.It wasindeed Pakistan's folly that it did not acceptIndia's offer in the past to jointly seek globalGI registration for basmati. Now thatPakistan'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. Adenial of Islamabad's claims may not, in anycase, withstand the scrutiny of the WorldIntellectual Property Organization.

Source with thanks:The Business Standard

Buffalo meat beats basmatirice in export market

Ajay Modi Last Updated: January 14,

2015 | 17:08 IST

Buffalo meat exports have overtaken those

of basmati rice for the first time. Both fall in

the category of 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 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.Russiahas 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

happened within the first year of Prime

Minister Narendra Modi tenure.As BJP's

Prime Ministerial candidate prior to theelections last year, Modi, in his election

campaigns, had attacked the then Congress-

led UPA government for promoting a 'Pink

Revolution' by encouraging meat exports.

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Naturally, there was a fear among meat

processors that exports will take a hit if the

BJP-led NDA coalition came to power. This,

however, has not happened. The government

has made no hostile move towards this

sector and exports continue to boom.The

country has successfully built an enviable

reputation of being a reliable and

competitive exporter of buffalo meat. So far,

there has been no incidence of livestock-

related diseases such as foot and mouth

disease from any of the importing nations.

Source with thanks:Business Today

Rural India slowdownthreatens Modi's promise of

" "better daysRajendra Jadhav, Nivedita Bhattacharjee and

Suvashree Chaudhury Mumbai/New

Delhi/Padali Last Updated: January 15,

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.

Tougher times in rural communities spell

bad news for Prime Minister Narendra

Modi, who swept to power last May with a

promise of "better days" - new jobs and

development to lift hundreds of millions of

Indians out of poverty.

"I was expecting a hike in cane prices thisyear, but mills are paying 20 per cent less

than last year. I don't have enough money to

buy even a motorcycle, let alone a tractor,"

says the 29-year-old Maharashtrian

farmer.It's not just the weather gods and

capricious markets that are to blame for the

hardship besetting Kadam's village of

Padali, 280 kilometres south of Mumbai. Ashift 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

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for a few days a month after sales slid by

nearly a third towards the end of last year.

Consumer goods firms and auto makers

have also reported weak sales.More than

800 million of India's 1.25 billion people

live in the countryside, accounting for 35 per

cent of the economy. Modi's Bharatiya

Janata Party (BJP) faces the verdict of voters

towards the end of this year in Bihar, a large

state in the Hindi belt where many of the

rural poor live. West Bengal and Tamil

Nadu are among major states that go to the polls in 2016.

WELFARE CUTBACKS

Seeking to woo rural voters, the last

government raised grain purchase prices,

bailed out indebted farmers and promised

100 days paid labour a year to anyone who

wanted it.The measures boosted thespending power of rural consumers and

cushioned business from a fall in urban

demand after the 2008 financial crisis.

Eventually, though, they stoked inflation

and forced the Reserve Bank of India (RBI)

to hike interest rates.To cap inflation and

state borrowing, Modi has limited rises in

farm support prices to below the inflationrate and scaled back the jobs scheme.

He wants to invest savings in infrastructure

and skills to boost India's long-term

growth.While inflation has eased with these

policies, firms that profited from booming

rural demand are struggling due to the

sudden slowdown.Rajesh Jejurikar, chief

executive of the farm equipment and two-

wheeler division at Mahindra & Mahindra,

said delayed rains, poor crops and reduced

disposable incomes had hit tractor sales at

the market leader.Trends show a striking

divergence between town and country sales

of two-wheelers: motorcycles - more

popular in the countryside - fell 3.5 per cent

in December while scooters, ridden mainly by city dwellers, leapt 24 per cent from a

year earlier, industry figures show.

GLOBAL COMMODITIES FALL

Modi's shift from policies that support

demand to ones boosting investment and

productivity have also coincided with a

steep fall in global prices of farmcommodities, making imports cheaper and

hitting Indian exports."Exports of many

commodities have become less lucrative and

in some cases unfeasible," said Faiyaz

Hudani at Kotak Commodity Services.The

government's ability to ramp up spending on

roads, railways and irrigation projects that

would benefit rural India is, meanwhile,hobbled by budget constraints.

Aides to Finance Minister Arun Jaitley have

advised him to loosen fiscal deficit targets in

next month's budget to create room to

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invest. It's not clear, though, whether he will

do so as that could delay a growth-boosting

interest rate cut by the central bank.Since his

general election triumph, the BJP has racked

up a series of gains in state polls - including

in Maharashtra. But Kadam, who voted for a

rival party, isn't convinced and says the

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."(Reuters) http://businesstoday.intoday.in/story/rural-india-slowdown-poses-threat-modi-promise-of-better-days/1/214619.html

Functional and healthyGM foods have largemarket potential

By Nathan Gray+ 14-Jan-2015Last upda ted on 14-Jan-2015 at 14:55 GMT potential, says new research.

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

potential.Led by Hans De Steur of Ghent

University, the team behind the research said

various GM crops with health benefits have been

developed with notable examples including

rice enriched with pro-vitamin A (also known as

'Golden Rice') and folate-enriched rice,

developed at Ghent University.

Fifteen years after the development of 'Golden

Rice', which was the first GMO with health

benefits, the developers of such transgenic

bioforti fied crops have little reason to celebrate,

said the team. To date, none of these GMOs are

approved for cultivation, unlike GMOs with

agronomic traits. Despite these regulatory

hurdles, six major staple crops have been

successfully biofortified with one, or more,

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

premiums ranging from 20% to 70%.

This differs from GMOs with farmer benefits,

which are only accepted by consumers when

they are offered at a discount, said the

team.Experts from the Infant Nutrition Council

(Aus-NZ), Malaysian Dieticians Association andEuromonitor will discuss how Apac countries

differ in their infant formula needs, and how to

best market their products within Asias strict

regulatory framework. The team added that

although GM foods with health benefits are not

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a panacea for eliminating malnutrition, they do

offer a complementary and cost-effective

alternative when other strategies are less

successful or feasible.

Source: Nature Biotechnology

Voume 33, Pages 25 29, doi :10.1038/nbt.3110

"Status and market potential of transgenic

biofortified crops"

Authors: Hans De Steur, et al

CCC Announces Prevailing World Market Prices

WASHINGTON, DC -- The Department of Agriculture's Commodity Credit Corporation today announced thefollowing prevailing world market prices of milled and rough rice, adjusted for U.S. milling yields and location, andthe 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 previousannouncement.

World Price MLG/LDPRate

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 andthe corresponding loan rates:

U.S. Milling YieldsWhole/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.

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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