3rd february,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

Rice exports increase 3.5pc in six months

Tuesday, 03 February 2015 15:29

Posted by Parvez Jabri

Daily Global Rice E-Newsletter

February 03 , 2015 V o l u m e 5, Issue I



Page 2


ISLAMABAD Rice exports increased by 3.46 percent

during the first half of the current fiscal year compared to

the corresponding period of last year.According to data of

Pakistan Bureau of Statistics (PBS), the rice exports were

recorded at $976.784 from July-December (2014-15)

compared to the exports of $944.077 in July-December

(2013-14), showing an increase of 3.46 percent.

Among the rice commodities, the exports of basmati rice

increased by 2.63 percent by going up from $294.517 million last year to $302.265 during the

first six months of the current fiscal year.The exports of all other rice commodities increased by

3.84 percent during the period under review as it went up from $649.560 million last year to

$674.519 million in the current year, the PBS data revealed.Meanwhile, on year-on-year basis,

the over all exports of rice witnessed negative growth of 9.17 percent in December 2014

compared to the exports of December 2013.The rice exports in December 2014 were recorded at

$238.179 million compared to the exports of $262.219 million in December 2013.

On month-on-month basis, the rice exports in December witnessed increase of 7.68 percent when

compare to the exports of $221.197 million in November 2014.Among the rice commodities, the

exports of basmati rice decreased by 27.10 and 3.29 percent in December 2014 compared to

December 2013 and November 2014 respectively.Similarly, the exports of other rice

commodities decreased by 3.69 percent when compared to the exports of December 2014 and

increased by 10.58 percent when compared to November 2014, the PBS data revealed.

It is pertinent to mention here that the overall exports from the country during the first six

months of the current fiscal year were recorded at $12.073 billion compared to the exports of

$12.617 billion during the corresponding period of last year, showing negative growth of 4.31

percent.On the other hand, the imports into the country increased by 11.68 percent during the

first half of the current fiscal year by going up from $21.671 billion in July-December (2013-14)

to $24.203 billion in July-December (2014-15).

Copyright APP (Associated Press of Pakistan), 2015

http://www.brecorder.com/top-news/1-front-top-news/221822-rice-exports-increase-35pc-in-six-months.html

Chinese Firm Joins Local Rice Miller to Bolster Industry By KYAW HSU MON / THE IRRAWADDY| Tuesday, February 3, 2015

RANGOON — A Burmese rice milling company and the Chinese firm CAMC Engineering Co.

Ltd. have signed a joint venture Memorandum of Understanding to improve the quality and

capacity of rice milling operations in Burma, according to Thaung Win, the secretary of the

Myanmar Rice Millers Association.Members of the Myanmar Rice Millers Association formed

http://www.brecorder.com/top-news/1-front-top-news/221822-rice-exports-increase-35pc-in-six-months.html

http://www.irrawaddy.org/tag/kyaw-hsu-mon-the-irrawaddy



Page 3


the Myanmar Rice Mill Company in 2012 with the aim of supporting the development of

Burma‟s rice milling industry.

Both the Myanmar Rice Mill Company and its Chinese

partner enter into the joint venture aiming to boost Burmese

rice exports, in part by improving the quality of its rice as

well as the milling process. “It [the Myanmar Rice Millers

Association] is only a nonprofit organization so we can‟t do it

[joint ventures] directly, that‟s why rice millers formed the

company—so that they can work with foreign companies,”

said Thaung Win, who is also the director of the Myanmar Rice Mill Company.

“We‟re going to discuss the details of how we can form the JV company in line with the

Myanmar Investment Commission‟s rules,” he told The Irrawaddy on Tuesday, adding that the

MoU was signed late last month.Under the terms of the MoU, the joint venture will also provide

loans to rice millers and work to upgrade rice storage facilities that currently leave a large

portion of the nation‟s harvest susceptible to spoilage through exposure to humidity and other

elements, Thaung Win said.“If we can form the JV, we will invest equal shares and we can

support local rice millers.

That will include loans, technical support and rice quality control,” he said.“As we have very

old mills in our country, we need technical improvements from foreign investors. We do expect

that if we can control the quality of rice, the price of exported rice will also increase,” Thaung

Win said.According to a World Bank report in June, Burma could greatly increase its agricultural

exports if it improves the quality of rice by investing in the expansion and upgrade of domestic

rice mills.

The report said that since economic and political reforms began in 2011, rice exports have

significantly risen, but in the past two years export volumes have leveled off at about 1.3 million

tons annually.The World Bank said much of the rice grown in Burma is of low quality and unfit

for export to high-value markets such as the European Union, where Burmese products are

exempt from import tariffs under a preferential trade scheme linked to Burma‟s “least developed

country” status.

Chit Khine, chairman of the Myanmar Rice Federation, said he welcomed the MoU.“Chinese

companies have been very interested to work in the rice industry for years, CAMC has also

worked here for years. That‟s why they have mutual understanding and believe they can improve

http://www.irrawaddy.org/wp-content/uploads/2015/02/RTR36HSH.jpg



Page 4


the rice industry,” Chit Khine said.“If we compare the quality of mills here and in Thailand, it‟s

quite different. We only have very low-quality mills in Myanmar,” he said.

The Myanmar Agribusiness Public Co. Ltd. (MAPCO), whose chairman is Chit Khine, is also

working with a foreign firm to improve the rice industry‟s competitiveness, entering into a joint

venture with Japan‟s Mitsubishi to build more rice mills, improve quality control measures and

increase exports.According to Myanmar Rice Millers Association figures, there are more than

2,000 mills nationwide, most of which operate at a capacity of 30 tons to 50 tons per day, with

few mills capable of outputting at the 200- to 300-ton level that is typical of more competitive

rice exporters.

Burma‟s agriculture sector is the country‟s largest employer and 70 percent of all Burmese live

in rural areas, but under the previous military regime agricultural productivity languished and

rice exports fell sharply compared with the 1960s.Image: Workers at a rice mill in the town of

Kyaiklat in Irrawaddy Division take a break from the day‟s labor in May 2012. (Photo: Reuters)

http://www.irrawaddy.org/business/chinese-firm-joins-local-rice-miller-bolster-industry.html

Japan Announces 7th SBS Tender in FY 2014

Announcement: 3 February 2015

Tender: 17 February 2015

Quantity:

Total 30,000 MT

Whole-kernel (brown or milled) 27,000 MT

Broken (milled) 3,000 MT

Shipping period: 15 August 2015

USA Rice Federation

CME Group/Closing Rough Rice Futures

CME Group (Preliminary): Closing Rough Rice Futures for February 3

http://www.irrawaddy.org/business/chinese-firm-joins-local-rice-miller-bolster-industry.html

http://r20.rs6.net/tn.jsp?f=0012viPIdLFuYlSjDIIencDobByEF5KYWg7JJvSFuzAg7O5XqVT7fMvZlgE3S_3rhnFSaJsCtsPPlTmxZ_dzv2xt6aGlXK85s2vKxEWA1hNLB5N_Jn6vka6CWH96oOQnde40jT7-KVSDNiCxoGaqq_b0mKw4IIafy2fRbQ9NVKkCgFQb-SoFi5BFbP7ncU0ntaL3ZlIuN9JfX5ToxOCzHstPwuDyZGVM2IbGwDHmq0ybEGdksKqiWJvrdmppDCghs-GWXk_D4kZaeCkX7_7MAY_QdMT9bwiqhof&c=suqWYjLDuXBPHlUFNJ4ljiToN9eKU92IMhPKgDG1U80TwrfjB5_loA==&ch=UcT1DpZaJkMtX9SpyoJ6CXxd8pAMPxiuqfYZXob8NgqDTZEp7p-PHg==



Page 5


Month Price Net Change

March 2015 $10.385 + $0.080

May 2015 $10.645 + $0.090

July 2015 $10.900 + $0.110

September 2015 $10.750 + $0.160

November 2015 $10.920 + $0.160

January 2016 $11.010 + $0.160

March 2016 $11.010 + $0.160

USA Rice federation

Rice Update Indonesia: In Search of Rice Self-Sufficiency

03 February 2015

|Indonesia Investments

Subjects |Rice Self-Sufficiency, Winarno Tohir, KTNA, Farmers and Fishermen's Society, Rice

Import, Rice Consumption,Rice Production, Rice Price, Rice Industry, Joko

Widodo, Farmers, Bulog, Raskin, Poverty, Rice

The price of rice in several Indonesian regions has risen by between 17 to 23 percent to IDR

8,500-9,000 per kilogram as rice production at the start of the year has not been able to meet rice

demand. In January 2015, Indonesian rice production stood at 2 million tons, whereas demand

reached 2.5 million tons. Inflation of rice is a sensitive issue in Indonesia because it jeopardizes

declining poverty rates as poorer segments of Indonesian society spend over half of their total

disposable income on food items, primarily rice.

http://www.indonesia-investments.com/about-us/item9

http://www.indonesia-investments.com/tag/item31?tag=5569

















http://www.indonesia-investments.com/business/commodities/rice/item183



Page 6


Winarno Tohir, Chairman of the Farmers and Fishermen's Society (KTNA), said that domestic

rice prices soared at the start of the year not only due to reduced output in January (partly the

result of floods in harvest areas) but also because the central government stopped distributing

subsidized rice to the poor (through itsRaskin program) in November.

This program was stopped by President Joko Widodo,

who assumed office in October 2014, as it was estimated

that about 30 percent of the subsidized rice went missing

before it could reach the 16 million poorest Indonesian

families. A preliminary investigation conducted by the

country‟s Corruption Eradication Commission (KPK)

signalled that state agency Bulog, which managed the

annual USD $1.7 billion Raskin program, did not run the

program efficiently. To support the poorest Indonesian families, the government now sends

electronic money (e-money) to the families‟ bank accounts.

However, Tohir said that current price pressures will ease starting from mid-February as rice

production is expected to touch 3.6 million tons this month. Rice production will further improve

in March and April as almost all Indonesian regions enter the harvest season. Therefore Tohir

does not believe that the government should intervene in the market to push rice prices down.

Rice Production Indonesia:

2008 2009 2010 2011 2012 2013 2014 2015

Indonesian Rice

Production¹ 60.3 64.4 66.4 65.4 69.1 71.3 70.6² 73.4²

¹ numbers are in millions of unmilled tons of rice

² indicates a forecast

Sources: Food and Agriculture Organization of the United Nations and

Indonesian Ministry of Agriculture

Reportedly, Indonesia holds the world‟s largest per capita rice consumption at about 140

kilograms of rice per person per year. Therefore, it is not surprizing that Southeast Asia‟s largest

economy is eager to reach self-sufficiency in consumption of this staple food crop (only having

succeeded in the mid-1980s and 2008-2009).

The current Joko Widodo administration has the ambitious target to reach rice self-sufficiency by

2017 through providing subsidized fertilizers and seeds to Indonesian farmers and by

rehabilitating one million hectares of tertiary irrigation channels for paddy production, but also



Page 7


by raising the government rice purchasing price (HPP) by roughly 10 percent to IDR 7,260 per

kilogram in January 2015.

Through this higher price, Indonesian rice farmers generate more income and are protected from

low market prices. The central government targets to increase domestic rice production by 4

percent to 73.4 million tons from an estimated 70.6 million tons last year. If this target is met,

then there will be no need for rice imports from Vietnam and Thailand. Last year, Bulog still

needed to import about 425,000 tons of rice to meet domestic demand. According to information

from the Indonesian Trade Ministry, Bulog currently holds 1.4 million tons of (commercial) rice

reserves, an amount which is sufficient for up to six months.

Poverty in Indonesia

Relative and absolute poverty have declined steadily in Indonesia over the past decade. Based on

the latest data from Statistics Indonesia (BPS) there were a total of 27.73 million Indonesians

categorized as poor, or 10.96 percent of the total population, in September 2014.

Indonesian Poverty and Inequality Statistics:

2006 2007 2008 2009 2010 2011 2012 2013 2014

Relative Poverty

(% of population) 17.8 16.6 15.4 14.2 13.3 12.5 11.7 11.5 11.0

Absolute Poverty

(in millions) 39 37 35 33 31 30 29 29 28

Gini Coefficient/

Gini Ratio - 0.35 0.35 0.37 0.38 0.41 0.41 0.41 -

Sources: World Bank and Statistics Indonesia

http://www.indonesia-investments.com/news/todays-headlines/rice-update-indonesia-in-search-of-rice-

self-sufficiency/item5277

PHL hybrid rice being studied for Papua New Guinea

cultivation

http://www.indonesia-investments.com/finance/macroeconomic-indicators/poverty/item301

http://www.indonesia-investments.com/news/todays-headlines/rice-update-indonesia-in-search-of-rice-self-sufficiency/item5277

http://www.indonesia-investments.com/news/todays-headlines/rice-update-indonesia-in-search-of-rice-self-sufficiency/item5277



Page 8


A PAPUA NEW GUINEA coffee company is testing hybrid rice from the Philippines for

cultivation in that country.

Tropical rice hybrids are seen as a sustainable way to boost yields. -- BW File Photo

Hybrid rice producer SL Agritech Corp. said in a statement yesterday

that PNG Coffee Ltd. wants to pioneer commercial production of

hybrid rice in its home country.Frisco M. Malabanan, a consultant of

SL Agritech, said “PNG Coffee Ltd is a coffee exporter and has vast

tracts of land” in Papua New Guinea.L Agritech said that a private

New Guinea company is already conducting a pilot test on growing various hybrid seeds.Village

Garden PNG Ltd. opened a demonstration farm for interested Papua New Guinea parties.

“We have already created massive awareness in PNG for hybrid rice. What we are proving is

that based on results, the rice can be grown there,” Mr. Malabanan said.“Some importers have

been saying the rice can‟t grow in PNG, but we‟re proving them wrong. Our rice grains are

already filled,” he added.Harvest of the pilot crops will be done in March, while yield is

expected to reach at least seven metric tons per hectare.Apart from PNG Coffee, government

officials particularly from Papua New Guinea‟s East Sepik province are also expressing interest

in rice production.

Joseph Yopy Yopy, board member of the Wosera Gawik district, has visited the farm.The

province has 200,000 to 250,000 hectares of land that may potentially be planted to hybrid

rice.SL Agritech Chairman Henry Lim Bon Liong noted that this makes the Philippines a

contributor to Papua New Guinea‟s agriculture sector.“We are happy that the Philippines is

becoming a part of the history of agriculture and rice sector in a country like PNG that really

needs to have a rice supply of its own,” said Mr. Lim.

SL Agritech said that land in PNG is barely touched by modern agriculture so rice may still be

grown organically or with little fertilizer.“The hybrid rice planting is also combining efficient

agriculture technologies with the „sprinkler‟ irrigation system that substantially saves on water,”

SL Agritech said, noting that the system was adapted from Australia.Unlike the Philippines,

PNG does not have national irrigation systems but it has source of fresh water from many

rivers.“PNG has been noting the significant contribution that the Philippines is making to its rice

sector despite the fact that it has its own National Agricultural Research Institute,” SL Agritech

said.



Page 9


http://www.bworldonline.com/content.php?section=Economy&title=phl-hybrid-rice-being-studied-for-papua-new-

guinea-cultivation&id=102053

EPA and Corps Withdraw WOTUS Interpretive Rule

WASHINGTON, DC -- Yielding to heavy criticism from farm groups, as well as government

personnel trying to operate under the rule, the Environmental Protection Agency and the Army

Corps of Engineers have withdrawn The Interpretive Rule, a controversial list of agricultural

conservation practices that would be exempted from the proposed Waters of the United States

(WOTUS) rule. Both agencies signed a memorandum of understanding on January 29 that

immediately withdrew the rule. The Interpretive Rule was released as a final rule in March 2014

along with the proposed WOTUS rule. Publicized as non-controversial, The Interpretive Rule

listed 56 conservation practices that, if completed to Natural Resources Conservation Service

standards, would be exempt from Clean Water Act permitting requirements.

"Unfortunately the list left out many practices,

including several used by rice producers, and

ostensibly added what many farmers consider

to be normal farming practices, such as fencing

and brush clearing, to the list," said Ben

Mosely, vice president of government affairs

for the USA Rice Federation, which had also

been critical of the rule. "While the withdrawal

of The Interpretive Rule is a step in the right

direction, we now turn our attention to the

proposed WOTUS rule itself that seeks to

clarify and expand the jurisdiction of the Clean

Water Act."

WOTUS is expected to be published as a final rule in March or April of 2015, and Mosely said

USA Rice has significant concerns, particularly with regard to the rule's proposed regulation of

irrigation ditches and canals, as well as making any water in a flood plain jurisdictional water

requiring permits to work in.

Contact: Steve Hensley (703) 236-1445

USA Rice Federation

Crop Insurance Programs Targeted in New Obama Budget

Proposal

WASHINGTON, DC -- Yesterday President Obama released his proposed fiscal year 2016

budget, which was slated as a means to provide tax breaks for the middle class and increase

http://www.bworldonline.com/content.php?section=Economy&title=phl-hybrid-rice-being-studied-for-papua-new-guinea-cultivation&id=102053

http://www.bworldonline.com/content.php?section=Economy&title=phl-hybrid-rice-being-studied-for-papua-new-guinea-cultivation&id=102053


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

10


spending on government programs, with spending cuts and tax increases just sufficient to control

the nation's deficit. Among the areas targeted for cuts in the agricultural community was the new

crop insurance program.

The President's budget cuts nearly $16 billion from crop insurance over the next ten years,

mostly through premium subsidy reductions for revenue policies including harvest price options.

Secretary of Agriculture Tom Vilsack supports the President's recommendation and attributes the

need to cut crop insurance to falling commodity prices and the realization that the 2014 Farm

Bill will likely be more expensive than originally thought."I'm taking a look at the next 12 to 18

months and what we see is clearly the possibility that payouts could be $1 [billion] to $1.5 billion

higher than anticipated," Vilsack said.

With commodity prices low throughout the United

States, Representative Mike Conaway (R-TX), chairman

of the House Agriculture Committee, called the Obama

budget an "ill-timed proposal" that would "jeopardize the

ability of producers to insure their crops in a climate of

collapsing crop prices."USA Rice Federation Rice

Producers' Group Chairman John Owen echoed

Conaway's sentiment, saying "Looking for budget

savings through additional cuts to crop insurance

programs not only jeopardizes the individual farmer's economic viability, it impacts the food

security of our country."

Contact: Evan Spencer (703) 236-1476

Vietnam to export 240,000 tons of rice to Malaysia

Thanh Nien News

Farm hands harvest rice outside the Mekong Delta city of Can Tho. Photo credit: Bloomberg

Japanese rice brings prosperity, stability to Vietnam farmers

Vietnam's rice subsidies benefit foreign consumers, not local producers: experts

Vietnam will sell 240,000 tons of five-percent-broken rice to Malaysia, local media reported

Tuesday.The rice will begin arriving in April, according to Lam Anh Tuan, director of Thinh

Phat Company.The firm, based in the Mekong Delta province of Ben Tre, is one of many that

will help fill the contract. Tuan told Thoi Bao Kinh Te Saigon Online that the recent deal would

prove more lucrative than prior foreign contracts, but declined to disclose specific

numbers.Oryza, an international journal on rice science, cited unidentified Vietnamese exporters

as estimating that the deal was struck at around US$385 per ton.

Vietnam‟s five-percent broken rice price hit roughly $360 per ton toward the end of last week,

compared to $405 per ton being paid for Thai rice, $400 per ton being paid for Indian rice, $415



11


per ton for Burmese rice, and $360 per ton for Pakistani rice, according to Oryza.Traders in the

Mekong Delta said the deal was unlikely to help increase the price of Vietnamese rice given how

small the deal is and that it is expected to take eight months to complete.Malaysia ranked as

Vietnam's third-biggest rice buyer in 2014 after China and the Philippines.The nation bought

470,000 tons of Vietnamese rice last year.

http://www.thanhniennews.com/business/vietnam-to-export-240000-tons-of-rice-to-malaysia-

38356.html

Rice Federation Votes, Approves Export Fee

BY KANG SOTHEAR | FEBRUARY 3, 2015

The newly formed Cambodia Rice Federation (CRF) voted Monday to require its members pay

an export fee of $0.50 per ton of long-grain white rice and $1 per ton of fragrant rice in order to

raise money for educating farmers and marketing Cambodian rice overseas, according to Sok

Puthyvuth, the federation‟s president.“Finally our members decided on the fee. After this, we

will prepare plans and programs,” Mr. Puthyvuth said.

He said CRF needs $777,000 to implement its “action plan,” which includes television

advertisements, coordinating seed production and raising awareness about potential crop

issues.“Previously when we had ideas, we always needed to ask for help from other

organizations, which makes our work slow because we needed to wait for…approvals,” Mr.

Puthyvuth said.un Yeng, secretary-general of CRF, said about 25 to 30 percent of the money

would be used for CRF operations, including staff salaries, while the rest would be used to

develop an international market for rice exporters.

“[M]ostly, we will use the funds to help push the sale of rice,” he said.Last year, rice exports

reached 387,061 tons, well short of the government‟s goal of exporting 1 million tons this year.

[email protected]

Correction: A previous version of this article incorrectly stated that CRF members would be

required to pay $0.75 per ton for both long-grain white rice and fragrant rice.

https://www.cambodiadaily.com/business/rice-federation-votes-approves-export-fee-77253/

https://www.cambodiadaily.com/author/kang-sothear/

mailto:[email protected]

https://www.cambodiadaily.com/business/rice-federation-votes-approves-export-fee-77253/



12


World Rice Production 2014/2015

January 2015

This month the United States Department of Agriculture (USDA) estimates that the World Rice

Production 2014/2015 will be 475.47 million metric tons, around 0.23 million tons more than the

previous month's projection.

Rice Production last year (*) was 476.96 million tons. This year's 475.47 estimated million tons

could represent a decrease of 1.49 million tons or a 0.31% in rice production around the globe.

Rice Production by Country

(Values in Metric Tons)

China: 144,500,000

India: 102,000,000

Others: 38,459,000

Indonesia: 36,500,000

Bangladesh: 34,600,000

Vietnam: 28,250,000

Thailand: 20,500,000

Philippines: 12,200,000

Burma: 12,150,000

Brazil: 8,300,000

Japan: 7,700,000

United States: 7,068,000

Pakistan: 6,500,000

Cambodia: 4,900,000

Egypt: 4,500,000

Korea, South: 4,240,000

Nepal: 3,100,000

Next Update will be February 10, 2015.

https://www.worldriceproduction.com/?gclid=CLex8L-NyMMCFdMatAodREQARQ

Politics No More Foreign Rice,Tomato in Nigeria If Buhari

Becomes President

Discussion in 'Political News' started by Jules, Yesterday at 8:35 AM.

Muhammadu Buhari, presidential candidate of the All Progressives Congress, APC has promised

to stop importation of rice and tomato if elected President of Nigeria; PUNCH reports. Buhari

made the promise in a meeting with the Organised Private Sector in Lagos. The ban he said is to



13


enhance local production of the products.''How can Nigeria be

importing virtually everything? How can we be importing even

tomatoes? If I am elected, basic items like rice and tomatoes,

which we have the capacity to produce, will be banned from

being imported'', Buhari said. The investors meeting had all the

key members of the APC in attendance and was hosted by the

Lagos State Governor, Mr. Babatunde Fashola.

#Fashola #APC #Lagos #Buhari

http://www.nigerianbulletin.com/threads/no-more-foreign-rice-tomato-in-nigeria-if-buhari-becomes-

president.107459/

Thai Rice Exporters Expect Exports To Drop To 10 Mln Tonnes

This Year

BANGKOK, Feb 3 (Bernama) -- The Thai Rice Exporters Association (TREA) expects this

year's rice exports to drop to 10 million tonnes, worth US$4.95 billion, compared with 11.06

million tonnes, valued at US$5.43 billion, exported in 2014.The lower exports was due to

increased competitiveness in the rice market, fluctuation in the exchange rate and lack of clear

strategies to increase development of Thai rice, said TREA President Chareon Laothammatas.

He said the price of Thai rice was still high compared with that offered by other rice exporters

and buyers had a wide variety to choose from Myanmar and Cambodia.The strengthening baht

and the weakening of other currencies has also resulted in the price of Thai rice increasing

US$25 per tonne in January.He expressed concern that countries like Nigeria, which usually buy

rice from Thailand, may turn to other rice producers to source their supply.

-- BERNAMA

http://www.bernama.com/bernama/v7/bu/newsbusiness.php?id=1105922

Several negative factors face rice exports this year, industry

group says

PETCHANET PRATRUANGKRAI

THE NATION February 4, 2015 1:00 am



14


WITH no monetary policy to facilitate exports, higher competition among rice-exporting

countries and a lack of development in the rice industry to lower production costs, Thai rice

shipments will face a tougher time in the coming years, despite the plan to release huge

quantities from government stocks."Thailand's rice will face a tougher export market due to

higher competition, fluctuating exchange rates and no clear strategy to increase development of

Thai rice," Charoen Laothamatas, president of the Thai Rice Exporters Association (TREA), said

yesterday.

The association expects Thailand to ship out 10 million tonnes of rice valued at US$4.95 billion

(Bt160 billion) this year, falling from last year's 11.06 million tonnes worth $5.43 billion.Thai

rice is still expensive, while the market has a greater variety of sources to choose from, including

Myanmar and Cambodia.The government should put in place a monetary policy to facilitate the

export sector, since the baht's volatility has handicapped Thai rice sales in the global market,

Charoen said.While the baht is strengthening, other countries are taking measures to weaken

their currencies.

Thai rice has gone up by $25 per tonne, because of the baht appreciating from 33 to 32.20

against the US dollar last month.With fluctuating currencies and lower oil prices, some countries

will shun Thailand and turn to cheap rice from other sources, he said.

Nigeria, which is the Kingdom's largest rice customer, could switch to India or other countries

because the price of Thai rice has skyrocketed, while Nigerians have lower purchasing power

because of the low price of oil, a key export commodity in that West African country.Korbsook

Iamsuri, honorary president of the association, said the government should closely monitor

currencies and focus on weakening the exchange rate, since exports are still the country's major

economic engine.

High production costs

To raise Thai export competitiveness, weakening the currency would help, as well as lowering

the interest rate to help small traders. With high production costs, Thailand's rice-export

competency will continue to drop, she said.In the latest study by the Agriculture Ministry, the

cost of |production for the main rice crop was Bt10,800 per tonne and for |the second crop

Bt9,100, while the market price is about Bt8,500. Vietnam's production cost is Bt3,500-

Bt4,000.The TREA called for long-term and sustainable measures to help lower the production

costs for farmers.

For this year, it sees Thailand continuing to be the world's largest rice exporter, as it has plenty

of inventory, while its price is not too high now that the elected government has been overthrown

and its subsidy measure has ended.Besides negative factors, some positive factors for Thai rice

exports are droughts, which will cause rice output to fall 30 per cent for this year's second crop,

and government-to-government deals.On average, Thai 5-per-cent white rice will be quoted at

$405 per tonne.



15


This could be marked up or down slightly this year on swings in the baht's value. The

comparable price in Vietnam is about $355, while India's rice is $380.However, the TREA

anticipates that the government will be able to release only about 3 million tonnes of rice from its

stocks, which would be much lower than the target of 10 million tonnes.

Chookiat Ophaswongse, honorary president of the TREA, said the government would not be able

to release huge volumes as expected because of tougher competition in the market, while the

export sector would not grow as strongly as last year.According to the US Department of

Agriculture, Vietnam is expected to export 6.7 million tonnes this year, up from 6.5 million

tonnes in 2014. India is projected to export 8.7 million tonnes, down from 10.5 million tonnes.

China will still be the world's largest importer, buying about 4.3 million tonnes of rice this year

from overseas, up from 3.9 million tonnes last year.Next will be Nigeria with 3.5 |million tonnes,

up from 3 million tonnes last year, and the Philippines with 1.7 million tonnes, the same as last

year.

http://www.nationmultimedia.com/business/Several-negative-factors-face-rice-exports-this-ye-30253308.html

Nigeria: 120,000 Rice Farmers to Receive Ges Fertiliser in

Kano

Kano--No fewer than 120, 000 rice farmers in Kano State are to receive subsidised fertiliser for

irrigation from the Federal Government under the Growth Enhancement Scheme, GES.Alhaji

Garba Bichi, the Secretary of All Farmers Association of Nigeria, AFAN, made this known

yesterday in Kano in an interview with the News Agency of Nigeria, NAN.

Bichi said the distribution of the assorted fertilisers and seeds had commenced in 48 designated

redemption centres across the 44 local government areas of the state.

According to him, each farmer will have two bags of NPK and a bag of Urea fertilizer, as well as

25kg of rice seed at the subsidized rate of N9,000."The distribution will commence today

(Monday) at all the redemption centres in the state on receipt of short message service alert on

their handsets", he said.

http://allafrica.com/stories/201502030936.html

http://allafrica.com/stories/201502030936.html

3rd february,2015 daily global rice e newsletter by riceplus magazine

Documents

exports of rice

exports of basmati rice

islamabad rice exports

rice commodities

capacity of rice

burmese rice

overall exports

current year