2nd march,2015 daily global rice e newsletter by riceplus magazine

Daily Global Rice E-Newsletter by Riceplus Magazine

www.ricepluss.com R&D Section: Riceplus Magazine

Page 1

Contact for Newsletter Advertisement [email protected] Cell : +92 321 3692774

Indonesian government to control inflation optimally

Senin, 2 Maret 2015 16:57 WIB |

Jakarta (ANTARA News) - The Indonesian government will take various measures and efforts to

control inflation in 2015, in accordance with its target plan."We will do anything to control

Daily Global Rice E-Newsletter

February , 2015 V o l u m e 5, Issue I



Page 2


inflation," Coordinating Minister for Economic Affairs Sofyan Djalil said here on

Monday.According to Djalil, the government can control inflation because the price of rice is no

longer a problem.

The current stock of rice is sufficient to meet demand till the next harvest season in March and

April 2015.Djalil revealed that the State Logistics Agency (Bulog) will play a greater role

towards this end.Earlier, he feared that the rising price of rice in various regions could lead to a

sharp increase in inflation.To prevent this, the government has taken anticipatory measures

related to the procurement of commodities."As the price of rice can affect inflation significantly,

the government is determined to tackle the problem," he stated here on Tuesday.To curb the

rising price of rice, he noted, the government has distributed rice to the poor (raskin)."We asked

Bulog to conduct market operations," he affirmed.

Djalil acknowledged that the rising price of rice is a result of scarcity in its supply, although

Bulogs stock of 1.4 million tons of rice could be sufficient to meet demand for the next few

months.Therefore, the problem of delays in supply is expected to be resolved soon."We have

distributed as much as 300 thousand tons of rice to the poor. Bulog must ensure the supply," the

minister emphasized.

Furthermore, Djalil also pointed out that the government will take legal action against

perpetrators found stocking and reselling rice illegally.Although the price of rice has increased,

that of other food commodities has not. This raised suspicion that the surge in the price of rice

was caused by traders hoarding stocks of the commodity.Moreover, the Central Statistics Agency

(BPS) remarked that the rising price of staple foods such as rice, eggs, and other commodities

can increase inflation pressure in February 2015.

"The prices of rice and other commodities are still high. If we look at indicators, we will find that

the price of rice is still high. It (inflation) may increase in February," Deputy Head of

Distribution and Service Statistics of the BPS, Sasmito Hadi Wibowo, said here on Monday.

According to Wibowo, the harvest season will boost production and supply, which will, in turn,

lower the price of rice.In addition, Social Affairs Minister Khofifah Indar Parawansa noted that

the distribution of raskin can reduce rice prices by up to 60 percent."The timely and precise

distribution of raskin can reduce rice prices by 50 to 60 percent," the minister affirmed here on

Sunday.

Parawansa admitted that the governments raskin program had distributed only 45 percent of its

total target of national rice distribution due to late supply in some regions.The minister pointed

out that rice stock in all Bulogs warehouses are safe and adequate, and they also have the budget.

So there is no longer any reason for Bulog to not distribute raskin."The fluctuating prices of rice



Page 3


can be offset by the distribution of raskin," she stated.According to the minister, the budget

allocated for the raskin program was Rp18.8 trillion for 15.5 million targeted households, with

15 kilograms of rice per month for each household.

UU.A063/INE http://www.antaranews.com/en/news/97949/indonesian-government-to-control-inflation-optimally

High-Temperature Tolerance Enhancement Successful On

Tomatoes And Rice

Kathleen Lees [email protected]

First Posted: Mar 02, 2015 12:15 PM EST

High-Temperature Tolerance Enhancement Successful On Tomatoes And Rice (Photo :

Flickr/Andry Wright)

Researchers at Kobe University Graduate School of Agricultural Science

Functional Phytochemistry Laboratory in Japan have identified for the

first time that the (E)-2-hexenal, otherwise known as a plant-derived

chemical substance that can induce a plant's stress response from high

temperatures.Plants have high-temperature resistance that's switched off

during normal conditions. During the study, researchers hypothesized that

if certain chemical signals in the plants that switch the functions on could

be identified, then the plants' stress response to high temperatures could be

controlled artificially.

Previous research has shown that some plants' high-temperature resistance function works to

switch on when oxidative treatment is applied. Researchers believed that a chemical compound

that's generated through oxidation of fatty acids in plants by reactive oxygen triggers the switch.

Through their experiments, the researchers identified that the (E)-2-hexenal compoundacts as a

signal chemical.

Researchers examined the effects of the (E)-2-hexenal at cooperative farms and found their use

effective on cucumbers, rice and tomatoes."Acquired thermotolerance in plants in a non-

genetically modified way. It will be easier for this method to find acceptance in Japan where

consumers are less accepting of genetically-modified crops," the study stated, according to a

http://www.antaranews.com/en/news/97949/indonesian-government-to-control-inflation-optimally

http://www.scienceworldreport.com/reporters/kathleen-lees

mailto:[email protected]

http://www.sciencedaily.com/releases/2015/03/150302071014.htm



Page 4


news release. "Since the (E)-2-hexenal is a plant-derived chemical substance, its use as a spray

over farm produce will face little resistance from consumers."

Payment continues to be a problem in the rice industry MARCH 2, 2015 · BY STAFF WRITER ·

Dear Editor,

Essequibo rice farmers staged yet another protest on the main public road, demanding payment for

the last paddy crop which was sold to rice millers. The payment areas most affected are the

Essequibo Islands, West Demerara and Regions 5 and 6. Harvesting of the present crop has

commenced in Region Two, with some 31,500 acres expected to be harvested. There will be much

difficulty in payment because of deliberate neglect by millers.Under the current system millers

procure paddy from farmers below the minimum support price. This system is leading to increased

stocks in the warehouses of the millers. The government needs to intervene from time to time and

ensure that farmers are paid on time. Government could also introduce online payments to make the

transactions more transparent, as farmers have to wait four months to get their dues.

The payments for the paddy are directly deposited in the farmers’ accounts.In some instances farmers

are selling their paddy to rice millers at a lower price to avoid the long wait. Paddy payment for

farmers in Guyana has witnessed a steady decline since the ’90s. The sharp fall is due to problems

with the local and international marketing of our rice, as well as the quality of rice produced by some

millers, and it has serious implications for Guyana’s economic development. Over the past 5 years,

however, there have been no signs of a revival in terms of prompt payment and rice quality.Today

rice occupies the first position among Guyana’s agricultural crops with respect to foreign exchange.

First, labour costs are relatively high, and at the same time the expenses involved in purchasing

agricultural inputs are a heavy burden without payments being made on time.

Typically, farmers hire machinery from private sources, since not all of them own combine

harvesters and tractors with a harrow plough. Given the high costs of cultivation and reaping and the

modest yield levels, the price of paddy becomes an important determinant of profitability.The

minimum price for a bag of paddy was $1,500 last crop, and the maximum was $3,000 – a drop of

$1,000 on each grade. However, even $4,000 a bag is not remunerative enough for a farmer who is

primarily dependent on rice farming. Given government’s absence from effective participation in the

rice industry, rice farmers are left at the mercy of private dealers, mainly a group of modern rice

millers.

http://www.sciencedaily.com/releases/2015/03/150302071014.htm

http://www.stabroeknews.com/author/layout/



Page 5


Yours faithfully,

Mohamed Khan

Arkansas rice farmers, others get deadline from USDA

Posted: Mar 01, 2015 12:25 PM PSTUpdated: Mar 01, 2015 12:25 PM PST

LITTLE ROCK, Ark. (AP) - The U.S. Agriculture Secretary has

announced that Arkansas producers would get one more month to

update their farm information for new commodity safety-net

programs established in the 2014 farm bill.The February 27

deadline is now extended to March 31.Arkansas Rice Farmers

Chairman Dow Brantley says the extra month will help more

producers submit the most accurate information on their yield histories and base acreage.

Brantley also adds this will be the only deadline extension, and called on farmers who had been

waiting to submit their updates as soon as possible.The new programs are called Agricultural

Risk Coverage and Price Loss Coverage. Producers needing more information on the programs

can contact their local Farm Service Agency office or go to www.fsa.usda.gov/arc-plc .

(Copyright 2015 The Associated Press. All rights reserved. This material may not be published,

broadcast, rewritten or redistributed.)

2/28/2015 4:44:49 PM (GMT -6:00)

http://www.katv.com/story/28232467/arkansas-rice-farmers-others-get-deadline-from-usda

S.Korea buys 44,000 T of rice for May Mon Mar 2, 2015 1:49am GMT

SEOUL, March 2 (Reuters) - South Korea's Agro-Fisheries &

Food bought a total of 44,000 tonnes of non-glutinous brown rice

for May 31 arrival via tenders closed on Feb. 25, according to

the agency's website (www.at.or.kr).

Details of the purchase are as follows:

TONNES GRAIN TYPE SUPPLIER ORIGIN PRICE

22,000 Medium Brown Seomok Trading Corp U.S. $856

22,000 Short Brown Daewoo Int'l Corp China $870

http://katv.images.worldnow.com/images/6870833_G.jpg


http://www.fsa.usda.gov/arc-plc

http://www.katv.com/story/28232467/arkansas-rice-farmers-others-get-deadline-from-usda




Page 6


(Reporting By Brian Kim; Editing by Sunil Nair)

http://af.reuters.com/article/commoditiesNews/idAFL4N0W418T20150302

Palay farmgate price continues to fall

By Czeriza Valencia (The Philippine Star) | Updated March 1, 2015 - 12:00am

MANILA, Philippines - Farmgate price of palay (unmilled rice)

continued to fall in the second and third week of February,

according to the Philippine Statistics Authority (PSA).From the

monitoring period of Feb. 11 to 17, the average farmgate price of

palay fell 0.47 percent to P17.87 per kilogram from the previous

week. Year-on-year, this was lower by 5.90 percent.This

translated to price reductions in the wholesale and retain prices of

well-milled rice.The average wholesale prices of well-milled rice

at P38.90 per kilogram was 0.32 percent below the previous week’s quotation. Year-on-year, this was

higher by 3.29 percent.The average retail price of well-milled rice fell to P41.97 per kilogram week-on-

week. Year-on-year, however, this was higher by 4.54 percent.The average wholesale and retail prices of

regular-milled rice also declined.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1

Wholesale prices of regular milled rice fell 0.21 percent to P35.74 per kilogram on the average from the

previous week. From the previous year, however, this was higher by 2.24 percent.The average retail price

of regular milled rice fell 0.24 percent to P38.38 per kilogram. Year-on-year, this was higher by 4.14

percent.The National Food Authority (NFA) announced early this month that it would intensify palay

procurement this year as the farmgate prices of unmilled rice have begun falling to P14 to P16 per

kilogram in several areas.NFA administrator Renan Dalisay said ―massive‖ procurements would be

conducted in Iloilo, Palawan, Sultan Kudarat, Antique and Isabela provinces.

http://www.philstar.com:8080/business/2015/03/01/1428687/palay-farmgate-price-continues-fall

NFA having difficulty buying palay

by Freddie C. Velez

March 1, 2015

Bocaue, Bulacan — Now that the harvest season of ―palay‖ is peaking in most rice-producing

provinces in Luzon, traders have affected the prices of the golden grain that the National Food

Authority (NFA) cannot sustain to procurements for its buffer stock.In a recent random check on

palay prices inside the Intercity Industrial Estate here, a major rice trading center of the country,

http://af.reuters.com/article/commoditiesNews/idAFL4N0W418T20150302

http://www.philstar.com:8080/author/Czeriza%20Valencia/

http://www.philstar.com:8080/business/2015/03/01/1428687/palay-farmgate-price-continues-fall

http://www.mb.com.ph/author/freddie-c-velez/



Page 7


the regular wholesale prices ranges halfway of P19 to P22 per kilo, reliant on its qualities and

varieties.With these aspects, sources said, the NFA cannot compete with the commercial grain

traders in acquiring palay stocks for their buffer stock requirements.Jun Cid, a palay classifier,

said the prices have already decrease to an average of R18 per kilo in the last week of January,

just as the palay harvest season is about to begin in major rice producing provinces of Northern

Luzon.

Last days of January this year, Simeon Sioson, president of the Federation of Central Luzon

Farmers Cooperative, revealed alleged rice smuggling in Mindanao that was perceived to have

pulled down the prices of locally-harvested palay.―The smuggled rice finds its way to local

markets in Metro Manila and Central Luzon that has caused local palay prices to go down even if

the peak rice harvest season has already ended,‖ Sioson said.Sioson also mentioned that palay

prices in the main crop harvest last November reached R25 per kilo and with the harvest season

about to begin has dipped to an average price of P18 per kilo in at the end of January.

http://www.mb.com.ph/nfa-having-difficulty-buying-palay/

Mid-South Farm & Gin Show Draws Record Crowd

Rice wins every time

MEMPHIS, TN -- The USA Rice Federation attended the 63rd annual Mid-South Farm & Gin

Show here over the weekend. Staff provided attendees with information about the U.S. rice

industry and activities conducted by USA Rice. Show officials reported record attendance

including rice producers from Arkansas, Louisiana, Mississippi, and Missouri who stopped by

the USA Rice booth."USA Rice's presence at the show gives staff an opportunity to meet with

rice producers as well as educate the general public about rice. We talk with more than 1,000

individuals and families each year and always enjoy making connections," said Randy Jemison,

director of field services in Louisiana.

In addition to exhibit booths and activities, the event includes agriculture updates and outlook

presentations. Carl Brothers, senior vice president of Riceland Foods, was on-hand to give a

market update for rice.The Mid-South Farm & Gin Show is one of the largest farm shows in the

region with attendees from all of the surrounding states in the Mid-South and Southeast. Four

hundred companies and organizations from 40 states and 15 countries took part in this year's

show. USA Rice received informational and product donations from Dainty Foods, Producers

Rice Mill, RiceTec, Riviana, and The Wright Group used as giveaways at its booth.

Contact: Amy Doane (703) 236-1454

Rice Leadership Visits Cuban Interest Section

http://www.mb.com.ph/nfa-having-difficulty-buying-palay/



Page 8


As customary in their final session in Washington DC, the newly graduated Rice Leadership

Class visited the Cuban Interest Section last week where they met with the Deputy Chief Juan

Lamigueiro. They were joined by USA Rice President & CEO Betsy Ward, USA Rice staffers

Marvin Lehrer and Chuck Wilson, and Terry Harris with Riceland Foods.From left: John

Compton, Wes Long, Rodd Dedman, Juan Lamigueiro, Marvin Lehrer, Betsy Ward, Joel

Stevens, Seth Fiack, Steven Schuler,

Mark Isbell, Chuck Wilson, and Terry Harris.

CME Group/Closing Rough Rice Futures

CME Group (Prelim): Closing Rough Rice Futures for March 2

Month Price Net Change

March 2015 $10.535 + $0.065

May 2015 $10.795 + $0.050

July 2015 $11.045 + $0.060

September 2015 $11.140 + $0.080

November 2015 $11.305 + $0.050

January 2016 $11.435 + $0.090

March 2016 $11.435 + $0.090

Rice prices in Jakarta begin to go down

Senin, 2 Maret 2015 22:08 WIB

Jakarta (ANTARA News) - The prices of rice in Jakarta, especially at the Mayestik and

Kebayoran Lama markets, have started declining by an average Rp200 per kilogram, according

http://r20.rs6.net/tn.jsp?f=001Ozh3SP-f5mxhhINuKyY-QLasAf6FTs8ruW25QxSTwVOYWICyUNxDREi8jb6sCR7mBdbZ_zt6qdPre2UOQiOIeBKP_fz2j-veyWhB4cfS5oCsLkRPJm2foUJhFcHbK6yhdFTKD4baYahy6F7HgJ65J8tWRsgSUBo9Wjdxd2r3hk-Em2S0bK9SW9jUWeTxMoa8VYYO3lSLK-T_Jwoj9-3eI9s0_hab_hMoJa8nMUi4lWMjuGu_X7nreptkMIOOPKt22_8wETmlT7JTodoKBPH0hGjGlJAMrMCMhaUg8tfzyAbhGS39Fo5m0AggrOc220IKIEoK4usYpI0QOVP708hZGLKj_z7jztotJcLWjtEPXaGKvmj0wrHSL2q3zlDCWGt2cxh_GnpQG6ny6LH_zW3GXQHZ6nLvPF_TsoehVHMxOMeAB8jCSytTvay6q38G3mLH8TGHP5pYKiicgVzOi2Ec5B_VYG9Rec2m&c=XnJCYZhKI6_IaYJiKdiPWCPrglRCoe3EigMt6qa_XJpVOndhEfjm-w==&ch=uWsVwhNPwjxoow9uozLxUKTzwyjpGgpqhVa_FKE1Q47jPKGz4W9agA==



Page 9


to traders."The price of rice here started to go down since yesterday (Sunday, March 1)," Fauzi, a

trader at the Mayestik market, said here on Monday.Based on Antaras observation, the rice types

whose prices began to decline at the Mayestik market included the IR I type (64), which declined

by Rp200 per kilogram from Rp10,000 to Rp9,800 per kilogram; IR II (64) that fell from

Rp9,500 to Rp9,000 per kilogram; and IR III (64) that dropped from Rp9,000 to Rp8,800 per

kilogram.

"Although the price fall is small, I hope it would continue until it reaches the normal level and

consumers are not burdened anymore," Fauzi added.He noted that the price had possibly gone

down due to a decrease in the price of rice at the Cipinang wholesale rice market."Market

operations conducted by state-owned logistics board Bulog must have possibly played a role in

bringing down the price," he added.The same also happened at the Kebayoran Lama market in

South Jakarta where the prices of rice begun to go down since Sunday. The average decrease in

the price of rice here is some Rp200 per kilogram."The average decrease is not too big, it is only

Rp200 per kilogram," remarked Johan, another trader at the Kabayoran Lama market.The types

of rice that saw a fall in their prices included IR I type (64) whose price dropped from Rp9,000

to Rp9,600 per kilogram.

The price of IR II (64) rice dropped from Rp9,400 to Rp9,200 and of IR III (64) declined from

Rp9,000 to Rp8,800.President Jokowi earlier inspected the rice warehouses of Bulog in

Kelapang Gading, North Jakarta, where he launched the rice for the poor (Raskin) program and

some market operations.The country has 1.4 million tons of rice stock, which will be adequate

until March-April when harvest season starts, the President revealed on the occasion."You

should not think we are short of rice stocks. We will always have enough stocks and we will

release it no matter how much will be the requirement," he remarked on Wednesday (Feb

25). Jokowi also promised to conduct market operations and distribute some 300 thousand tons

of rice in the market.

http://www.antaranews.com/en/news/97951/rice-prices-in-jakarta-begin-to-go-down

Businesses begin stockpiling rice in Mekong Delta

MARCH 2, 2015 BY SAIGON-GPDAILY LEAVE A COMMENT

Businesses have begun purchasing one million tons of winter spring rice in the Mekong

Delta on March 1 when the Prime Minister’s rice stockpiling decision took effect.

Hau Giang farmers reap winter spring rice (Photo: SGGP)

http://www.antaranews.com/en/news/97951/rice-prices-in-jakarta-begin-to-go-down

http://www.talkvietnam.com/author/saigon-gpdaily/

http://www.talkvietnam.com/2015/03/businesses-begin-stockpiling-rice-in-mekong-delta/#respond


www.ricepluss.com R&D Section: Riceplus Magazine Page

10


The Government has assisted businesses with 100

percent of bank loan interest rate in four months

to buy rice under the program from March 1 until

April 15.Rice prices were in down trend near the

lunar New Year Festival but have a bit increased

recently owning to the program.Specifically, a

kilogram of fresh rice fetches VND4,200-4,600 a

kilogram, up VND200-300 over it before Tet.

Traders have boosted purchase in Can Tho, Hau Giang, Dong Thap, and Vinh Long for the last

few days.Farmer Ngo Van Kha from Vi Thanh District, Hau Giang province said that the new

prices are acceptable.The busiest purchase is along the 40 kilometer road linking Can Tho and Vi

Thanh, where nearly 100 combined harvesters have continuously operated in fields.Leaders from

Can Tho, Dong Thap, An Giang, Tien Giang, Long An and Can Tho say that this year the rice

stockpiling program has been launched timely as farmers are entering peak harvest

season.Vietnam Food Association (VFA) has allocated rice volume for businesses to buy in each

province. The largest purchase will be 250,000 tons in An Giang, followed by Can Tho with

175,000 tons and Bac Lieu with 8,000 tons. The lowest volume is in Ca Mau with 2,400 tons.

2015 is the sixth year in a row VFA carries out the rice stockpiling program for the yearly largest

winter spring crop in the Mekong Delta.

Rice bags are transported to warehouse for stockpiling (Photo: SGGP)

The program is a Government’s intervention measure

in the rice market to prevent a price drop during peak

harvest time and ensurefarmers’ profit, Deputy

Minister of Agriculture and Rural Development Vu

Van Tam said at a meeting on the program’s

implementation in the delta yesterday.In addition to

the program, the Southern Food Corporation has won

a bid to export 300,000 tons of rice to the Philippines,

creating a better tendency in the rice market, he added.However, Deputy Chairman of VFA

Huynh The Nang said that tendency would not prolong because the Mekong Delta would have

http://static.talkvietnam.com/files/2015/03/hau-giang-farmers-reap-winter-spring-rice-photo-sggp-1642007-images236264-a.jpg

http://static.talkvietnam.com/files/2015/03/rice-bags-are-transported-to-warehouse-for-stockpiling-photo-sggp-1642007-images236270-c.jpg



11


up to five million tons of commercial rice by the second quarter. The number includes iventory

rice from last year and newly harvested rice.

http://www.talkvietnam.com/2015/03/businesses-begin-stockpiling-rice-in-mekong-delta/

NFA secures additional rice imports from Thailand, Vietnam

by Madelaine B. Miraflor

February 28, 2015

The Philippines has secured rice imports from Thailand and Vietnam after the two countries

presented competitive offers in a state-to-state deal that commenced on Friday, which involves

the purchase of a total of 500,000 metric tons (MT) of well-milled white rice supply.National

Food Authority (NFA) is importing 500,000 MT of rice to cater to the mandatory buffer stocking

requirement for the lean season that starts in July.

This requirement would be purchased through government-to-government (G2G) procurement

with countries that have procurement agreements with the Philippines such as Thailand,

Vietnam, and Cambodia.For this bidding, which is the first planned rice importation for this year,

only Thailand and Vietnam decided to participate.For the 15-percent brokens well-milled long

grain white rice, Thailand offered a selling price of $441 per MT for a total supply of 100,000

MT against a required minimum supply offer of 250,000 MT. The total offer price stood at

USD44.1 million.With an offer price that stood at USD110.62 million, Vietnam offered $442.50

per MT for a total supply of 250,000 MT.

For this, the winning bidder is supposedly Thailand for its offer price, which is lower, but since it

could not supply the entire supply needed by the Philippine government, Vietnam later on agreed

to match Thailand’s price offer.In its matched offer, Vietnam agreed to supply the remaining

150,000 MT for a price of P$441 per MT, with a total offer price of USD66.1 million.For the 25-

percent brokens well-milled long grain white rice, Thailand proposed to supply 100,000 MT for

USD421 per MT against the total supply needed by the government, which is also at 250,000

MT. The total price stood at USD42.1 million.

Vietnam, on the other hand, originally offered to supply the entire 250,000 MT but since it

priced it at a higher cost, it just decided to match the offer of Thailand, agreeing to supply the

remaining 150,000 MT at a price of USD353 per MT instead. In total, Vietnam will earn

USD63.15 million from the contract.The term of references orders the delivery of all the well-

milled white rice in two tranches from March to April.

http://www.mb.com.ph/nfa-secures-additional-rice-imports-from-thailand-vietnam/

http://www.talkvietnam.com/2015/03/businesses-begin-stockpiling-rice-in-mekong-delta/

http://www.mb.com.ph/author/madelaine-b-miraflor/

http://www.mb.com.ph/nfa-secures-additional-rice-imports-from-thailand-vietnam/



12


Thailand's rice basket shrivels amid drought of long-term

policy

Achara Deboonme

[email protected]

Twitter@Biz_TheNation March 3, 2015 1:00 am

Thailand's rice basket shrivels amid drought of long-term policy The tyranny of the hot season

has returned, as the temperature climbs towards a sizzling 40 degrees.Office workers are

complaining about the steamy commute to air-conditioned workplaces. They should spare a

thought for those who have to work under the blazing sun, including farmers, who are watching

their crops whither for lack of water - though they won't fetch much anyway at current

prices.Official statistics show that the country's major reservoirs have dropped to 57-60 per cent

capacity - near the levels of 2005 when one of Thailand's worst-ever droughts affected 71

provinces and caused nearly Bt8 billion in damage.

This year, the Agriculture and Agricultural Cooperatives Ministry estimates the drought will

affect 16.17 million rai of farmland in 58 provinces, including 12.61 million rai in the Northeast,

the region least covered by the national irrigation system.Over half of our working-age

population is in the agricultural sector, yet for decades the irrigation system has expanded at a

snail's pace.The latest figures show that in 2012, only 29.57 million rai, or 9.22 per cent of

Thailand's landmass, was irrigated.That represents only a slight increase on the 28.35 million rai

in 2009.That year, as the Royal Irrigation Department celebrated its 107th anniversary, its chief

unveiled a plan to expand the irrigated area by 6 million rai by 2020.

He explained that Thailand's reservoirs had a combined capacity of 52,741 million cubic metres -

only 70 per cent of the annual demand of 73,788 million m3. Without new investment, the

shortfall could hit 34,183 million m3 in 2019.The root of this longstanding problem lies in the

fact that policymakers treat irrigation as a political tool, channelling budgets to temporary

projects that only address short-term hurdles. No government has ever embarked on a grand-

scale project to tackle long-term problems. Irrigation plans were included in the Yingluck

government's Bt350 billion water-management plan, but it was the 2011 flood that sparked its

creation, not drought.The junta scrapped that plan and drew up a new strategy, expected to cost

about Bt900 billion over 10 years.

However, last month the Cabinet refused to green-light the comprehensive strategy, approving

only some of its projects for this fiscal year and keeping the budget to Bt50 billion. Prime

Minister Prayut Chan-o-cha admitted that the limited budget available meant only urgent projects

could be carried out this year, though the 10-year strategy remained in place.The Cabinet



13


resolution received wide media coverage, but not so the attacks from the Engineering Institute of

Thailand (EIT), which is adamant that the strategy and the investment for this year do not meet

the national interest.The EIT's academic network criticised the strategy for ignoring public views

and failing to address the root problems. Warning that the plan carried more negative

consequences than the Yingluck government's version, it vowed not to rubber stamp the project.

Pramote Maiklad, former chief of the Royal Irrigation Department, remarked that "The NCPO's

version is not a real strategic plan, but rather the annual budget allocation plan."With the global

economy still fragile thanks to the slowdown in China and difficulties in the euro zone and

Japan, Thailand's exports are expected to remain sluggish. TMB Analytics anticipates a 1 per

cent growth rate this year, following two years of contraction. In this scenario, economists agree

that domestic demand should play a bigger role in driving the economy. Yet, they are also

concerned about lower crop prices, which will reduce farmers' income. Couple that with

Thailand's high household debt of 85 per cent of GDP, and there are doubts about how much

farmers and consumers in general can spend.

As part of its economic stimulation programme, the government plans cash handouts for

farmers.While that move is welcomed by Federation of Thai Industries chairman Supant

Mongkolsuthree, he said last week that what are truly needed are mid- to long-term solutions to

help farmers lift productivity and lower production costs.

I guess that he might not like the Commerce Ministry's Blue Flag project either. The project,

which sells products at ad-hoc markets at about 30 per cent below their market price, reaches

relatively few people but costs over Bt100 million annually. It will require a budget of Bt241

million this fiscal year.If farmers' income were to climb in a sustainable way, they would be able

to spend more and perhaps also save more. But as things stand, their finances are at the mercy of

capricious Mother Nature.

And no matter who is in power, their problems remain neglected.Thailand can no longer afford

to handle problems as they arise. We need to start thinking "out of the box" and forge long-term

strategies.Thai nationalists have enjoyed success in guarding our tiny petroleum reserves. They

should also push for a reform agenda to deal with drought. If the problems aren't addressed in a

sustainable and comprehensive way, millions of our farmers will likely need government support

when they get old and can't work in the fields. Then, the moaning from taxpayers will only get

louder.

http://www.nationmultimedia.com/opinion/Thailands-rice-basket-shrivels-amid-drought-of-lon-

30255170.html

Indian rice exports to plunge as Thailand offloads stocks

http://www.nationmultimedia.com/opinion/Thailands-rice-basket-shrivels-amid-drought-of-lon-30255170.html

http://www.nationmultimedia.com/opinion/Thailands-rice-basket-shrivels-amid-drought-of-lon-30255170.html



14


A Thai farmer loads paddy onto a truck.

MUMBAI/BANGKOK, MARCH 2:

India's rice exports will struggle to compete with

cheaper cargoes from No.1 seller Thailand in 2015 as

Bangkok looks to offload grain from its huge state

stockpiles, industry officials and traders said. B.V.

Krishna Rao, managing director of leading Indian rice

shipper Pattabhi Agro Foods Pvt Ltd, said the

country's exports could plunge by a fifth this year to 8

million tonnes, with some other industry officials in

the country making similar warnings.

Lower exports will leave more rice in Indian hands, piling pressure on already-bulging storage

and raising the spectre of grain getting damaged in temporary silos.But competition among the

world's top two exporters will drag further on prices that have fallen 5 per cent since the start of

October. That's good news for African nations like Nigeria and Senegal that are typically major

buyers of Asian rice."The Thai government's efforts to sell rice from its own warehouses has

been putting pressure on global prices and limiting Indian exports," said Rao.Thailand will open

a tender to sell around 1 million tonnes of rice in March, as it tries to shift over 17 million tonnes

of rice built up under a controversial subsidy scheme. It aims to sell 10 million tonnes in 2015

and 7 million next year.Indian exporters can compete with private Thai traders, but not with the

government as it can cut prices to generate demand for old stock, said M. Adishankar, executive

director at Sri Lalitha, a major rice exporter in southern India.

In the latest tender, Thailand sold 5-percent broken rice from old stocks for $236 to $378 per

tonne, although the market price for new crops was around $415. India has recently offered the

same grade at around $400."The government's rice is old and has been stored for a long time so

its value depreciates accordingly ... there is always a price gap between new rice and old rice,"

said an official at the Thai Rice Exporters Association, who declined to be identified.

India, which lost the top rice exporter spot in 2014, could see its shipments of non-basmati or

common grade rice fall by nearly a quarter to 5 million tonnes in 2015, while exports of aromatic

basmati could drop over 14 percent to 3 million tonnes, Rao said.Basmati sales have also been

hit after top buyer Iran suspended imports late last year to support local farmers, although one

exporter expected shipments to restart in April.Rice inventories at India's state-run agencies had

jumped to around 25 million tonnes by Feb. 1, nearly double the targeted level, government data

shows.

(This article was published on March 2, 2015)

http://www.thehindubusinessline.com/industry-and-economy/agri-biz/indian-rice-exports-to-

plunge-as-thailand-offloads-stocks/article6951066.ece

http://www.thehindubusinessline.com/industry-and-economy/agri-biz/indian-rice-exports-to-plunge-as-thailand-offloads-stocks/article6951066.ece

http://www.thehindubusinessline.com/industry-and-economy/agri-biz/indian-rice-exports-to-plunge-as-thailand-offloads-stocks/article6951066.ece



15


Rice cultivation banned on left bank of Indus Sunday, March 01, 2015

Karachi

The Sindh government announced on Saturday that it was banning rice cultivation in the

command areas of the canals lying on the left bank of the Indus River to control water-logging

and salinity.This decision was made at a meeting presided over by Chief Minister Qaim Ali

Shah. It was attended by National Assembly opposition leader Khursheed Shah, MNA Syed

Asghar Shah, MPAs Sardar Imdad Ali Pitafi, Syed Murad Ali Shah and Syed Sarfaraz Shah,

Board of Revenue senior member Shahid Gulzar Shaikh, the irrigation secretary and the Sukkur,

Mirpurkhas and Shaheed Benazirabad commissioners and deputy commissioners.

The chief minister said the perennial canals at Guddu, Sukkur and Kotri barrages had a lengthy

command area of more than 150 to 350 kilometres and water shortage persisted at their tail-

end.―These canals are meant for dry kharif crops. But rice cultivation in the command areas of

these canals had further aggravated the water shortage because paddy crop required a lot of

water,‖ he added.He added that because of rice cultivation, the sub-soil water level had elevated

and caused water-logging and salinity to dangerous proportions, destroying the entire green belt

on the left bank of the Indus River.Khursheed Shah said there was a dire need for changing the

crop pattern. Otherwise, he added, the entire left bank strip of the province would turn into lakes

of saline water.MPA Sardar Ahmed Ali Pitafi said climatically Sindh had the distinction to

cultivate early kharif crops but the irrigation department released water in the canals and

distributaries very late.

Therefore, he added, growers were left with no choice but to grow rice. ―Rice cultivation is easy

and it does not require hard labour and extra care. That is why the growers prefer to cultivate

rice,‖ he noted.MNA Syed Sarfraz Shah and MPAs Syed Murad Ali Shah and Nasir Shah, who

own farms on the left bank command areas, said water-logging had destroyed fruit orchards in

the area.The chief minister said the problems of the command areas of the perennial channels,

especially the Ghotki Feeder Canal, the Rohri Canal, the Nara Canal, the Khairpur Feeder East

and the Khairpur Feeder West, had to be addressed on an urgent basis.―The Sindh government

has spent millions on the installation, maintenance and operation of tube-wells to control the

water table,‖ he added.

We will pay more attention to rice value chain" – Minister

Government would pay more attention to the development

of the rice value chain for mass production of rice to reduce

its imports, according to Mr. Fiifi Kwetey, Minister of Food

and Agriculture.He said the Ministry of Food and

Agriculture was fully behind initiatives that aimed at

developing the rice value chain and assured that all investors

and communities involved in developing rice fields,

especially the Nasia-Nabogo valley, would be given a fair

http://www.thenews.com.pk/TodaysPrintWriterName.aspx?ID=4&URL=News%20Desk

http://www.thenews.com.pk/TodaysPrintWriterName.aspx?ID=4&URL=News%20Desk



16


deal.Mr Kwetey said this in a speech read on his behalf during the Ghana Commercial

Agriculture Project (GCAP) Investor Conference in Tamale.The Investor Conference organized

by the GCAP was meant to introduce to participants, the Nasia-Nabogo valley rain-fed rice

production and opportunities available to whet investor interest in the project.

The government of Ghana secured a $100 million credit from the World Bank and a grant of $45

million from the USAID to implement the GCAP projects mainly in the Accra Plains and the

Savannah Accelerated Development Authority (SADA) zones for crop production scheduled to

be completed over a five-year period.Mr Kwetey said the investor conference marked a

milestone in the work of GCAP, which had the opportunity to outdoor an innovative approach by

establishing an Agricultural Growth Pole (AGP) in the SADA zone.He said adoption of the

growth pole strategy had the potential for accelerating economic growth and support social

progress through efficient utilization of natural and agricultural resources in line with the

potentials of SADA.He said now that GCAP had selected one of the agricultural growth poles for

attention there was the need for government to support to ensure that it served as development

corridor that remained focused for developing the rice value chain.

Mr Alabi Bortey, the Project Co-ordinator of GCAP said, GCAP was currently seeking investors

to invest in commercial agriculture business in rice production on the 10,000 hectare arable land

at the Nasia-Nabogo valley in the Savelugu/Nanton Municipality of the Northern Region.

He said strong emphasis would be on the involvement of farmers from neighbouring

communities within the Nasia-Nabogo valley and assured investors who wish to cultivate rice

within the GCAP demarcated area in the Nasia-Nabogo valley area of support through a

matching grant scheme based on eligibility criteria.Mr Bortey said GCAP would support

investors with the construction of water retention structures to ensure availability of water

throughout the cropping season and that the investors would be expected to integrate smallholder

farmers into the inputs, outputs and farm equipment services on a continual basis for at least five

years.He announced that the project was also inviting contractors wishing to bid for the design

and construction of the irrigation infrastructure to be constructed and called on all to support the

project to succeed, saying, ―Let us together create an environment that would increase rice

production and productivity‖.

http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=348574

Rice exports to plunge as Thailand offloads grain from

its stockpiles

By Reuters | 2 Mar, 2015, 12.15PM IST

http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=348574



17


"The Thai govt's efforts to sell rice from its own warehouses has been putting pressure on global

prices and limiting Indian exports," said Rao.

ET SPECIAL:

MUMBAI/BANGKOK: India's rice exports will struggle to compete with cheaper cargoes from

No.1 seller Thailand in 2015 as Bangkok looks to offload grain from its huge state stockpiles,

industry officials and traders said. B.V. Krishna Rao, managing director of leading Indian rice

shipper Pattabhi Agro Foods Pvt Ltd, said the country's exports could plunge by a fifth this year

to 8 million tonnes, with some other industry officials in the country making similar warnings.

Lower exports will leave more rice in Indian hands, piling pressure on already-bulging storage

and raising the spectre of grain getting damaged in temporary silos.

But competition among the world's top two exporters will drag further on prices that have fallen

5 percent since the start of October. That's good news for African nations like Nigeria and

Senegal that are typically major buyers of Asian rice. "The Thai government's efforts to sell rice

from its own warehouses has been putting pressure on global prices and limiting Indian exports,"

said Rao. Thailand will open a tender to sell around 1 million tonnes of rice in March, as it tries

to shift over 17 million tonnes of rice built up under a controversial subsidy scheme. It aims to

sell 10 million tonnes in 2015 and 7 million next year.

Indian exporters can compete with private Thai traders, but not with the government as it can cut

prices to generate demand for old stock, said M. Adishankar, executive director at Sri Lalitha, a

major rice exporter in southern India.

In the latest tender, Thailand sold 5-percent broken rice from old stocks for $236 to $378 per

tonne, although the market price for new crops was around $415. India has recently offered the

same grade at around $400. "The government's rice is old and has been stored for a long time so

its value depreciates accordingly ... there is always a price gap between new rice and old rice,"

said an official at the Thai Rice Exporters Association, who declined to be identified. India,

which lost the top rice exporter spot in 2014, could see its shipments of non-basmati or common

grade rice fall by nearly a quarter to 5 million tonnes in 2015, while exports of aromatic basmati

could drop over 14 percent to 3 million tonnes, Rao said. Basmati sales have also been hit after

top buyer Iran suspended imports late last year to support local farmers, although one exporter

expected shipments to restart in April. Rice inventories at India's state-run agencies had jumped

to around 25 million tonnes by Feb. 1, nearly double the targeted level, government data shows.

http://economictimes.indiatimes.com/topic/rice

http://economictimes.indiatimes.com/topic/exports

http://economictimes.indiatimes.com/topic/Thailand

http://economictimes.indiatimes.com/topic/Bangkok

http://economictimes.indiatimes.com/definition/stocks

2nd march,2015 daily global rice e newsletter by riceplus magazine

Documents

prices of rice

rice prices

rising price of rice

tons of rice

reselling rice

current stock of rice

daily global rice enewsletter

indonesian government