4th June,2014 Daily Global Rice E-Newsletter by Riceplus Magazine

8/12/2019 4th June,2014 Daily Global Rice E-Newsletter by Riceplus Magazine www.ricepluss.com

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TOP Contents - Tailored for YOU

Latest News Headlines

Govt to spend Rp 18.8 trillion on rice subsidies Thai rice exporters say top ranking regained The Thai Rice Exporters Association said it expects the country to export 9 million tonnes of rice

in 2014, 20 per cent more than the previously-estimated 7.5 million tonnes

Exporters call for creation of Rice Board Thai exporters raise 2014 rice export forecast to 9 mln tonnes Bangladesh grain imports likely to rise 22 pct in 2014/15-state buyer Nagpur Foodgrain Prices Open- June 04 CCC Announces Prevailing World Market Prices CME Group/Closing Rough Rice Futures

News Detail

Govt to spend Rp 18.8 trillion on rice subsidies

The Jakarta Post, Jakarta | National | Wed, June 04 2014, 8:41 AM

The government has decided to reform its rice for the poor (raskin) program for the 16th consecutive year by trialling

access to the program through the possession of a Social Protection Card (KPS).Safri Burhanuddin, the assistant

deputy of social benefits for the Office of the Coordinating Peoples Welfare Minister, said on Tuesday that under

the improved program, the government would only se ll subsidized rice to the bottom 25 percent of earners.The

raskin rice is meant to benefit poor and economically vulnerable households. It is not to supposed to be distributed tomiddle-class families, he said.

This year, the government is expected to spend about Rp 18.8 trillion (US$1.6 billion) on the program, which will

support 15.5 million qualifying households. Participating families would pay just Rp 1,600 per kilogram of


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commanding a lower price on world markets than other major exporters. The price is constrained by Thailand's

large stockpile and questions about quality due to holding the grain in storage for longer than usual.Rice

association data shows Thai 5-percent grade rice is fetching an average of $390 a ton compared with $405 a ton

for Vietnam and $435 a ton for India.

The Thai Rice Exporters Association said it expects the country to export 9

million tonnes of rice in 2014, 20 per cent more than the previously-estimated

7.5 million tonnes

BANGKOK: The Thai Rice ExportersAssociation on Wednesday raised the forecastfor rice exports as the end of the state pledgingscheme would help bring down prices.The

association said it expects the country to export9 million tonnes of rice in 2014. This is 20 percent more than the previously-estimated 7.5million tonnes.Rice exports fell in Thailand afterthe deposed government in October 2011 beganbuying rice from farmers at above market pricemaking export rates uncompetitive.Indiaovertook Thailand as the worlds top rice

exporter in 2012 as the scheme, which wasmeant to help poor farmers, caused a hike in export prices.

The price of Thai 5-per cent broken rice reached US$650 per tonne in October 2011 while India was selling thegrain overseas at far lower rates.The Thai grain is now selling at between US$380 and US$385, whileVietnamese rice costs US$400-US$405.Some 800,000 farmers were owed payment for months after the ricepledging scheme ran into financial trouble.The scheme ended in February this year.Thailands current militaryjunta began paying money owed to the farmers after it seized power in a coup. File photo: Thai farmers harvesrice in a field in Thailand's southern Narathiwat province. (AFP/MADAREE TOHLALA)

Exporters call for creation of Rice BoardPETCHANET PRATRUANGKRAI

THE NATION June 5, 2014 1:00 am


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THE THAI RICE Exporters Association (TREA) yesterday proposed to the National Council for Peace

and Order the setting up of an independent "Rice Board", comprising representatives from all involved

to set up rice management policies and development plans for promoting sustainable growth of the

industry.

The proposal was made following expectations that themilitary government would not intervene in the marketmechanism any longer, as it has created huge losses for thecountry as well as destroyed rice exporterscompetitiveness.The association also believes that Thailandwill reclaim its crown as the world's largest rice exporterthis year with expected export volume of 9 million tonneshigher than the previous projection in January of 7.5 milliontonnes due to the lower price of Thai rice and lower exportcompetition from India and Vietnam in the short run.

Association president Charoen Laothamatas said that to increase efficiency of the rice industry management andensure fair benefit to all involved, an independent Rice Board should be set up. The panel should be free fromthe impact of political changes so that the Thai rice industry could be developed without any intervention,despite changes in government.The panel should involve representatives from farmers, millers, local tradersexporters, academics, and representatives from government agencies. The panel should have full authority todraw up policies and increase the role of the market mechanism but should not intervene in the market system,he said.Charoen said that Thailand had learnt a valuable lesson from market intervention by setting a highpledging price. The government has faced huge losses from pledging and is left with enormous stockpiles, whilethe rice trading system has been destroyed.

The government should no longer set up any subsidy project as it has destroyed both farmers and traders.Hepointed out that without subsidy measures, the government could save at least Bt45 billion to Bt50 billion tohelp farmers with other long-term measures such as reducing the cost of production.To manage rice output inthe upcoming harvest season second crop and the 2014-15 main crop harvest season, Charoen said thegovernment could negotiate for selling rice in the futures market on export overseas so that farmers will haveexact market and gain stable rice price.TREA honorary president Korbsook Iamsuri said that Thailand needs tohave a clear roadmap to develop the rice industry from upstream to downstream with no politicalintervention.She said that the current National Rice Policy Committee has no efficiency to manipulate the rice

industry, as it comprises only representatives from the government sides.


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The National Rice Policy Committee should be under the Rice Board as the board would not depend on politicsand would focus only on industry development.The Rice Board could be set up under the Act so that in futurepoliticians would not intervene in the rice industry as in the past, she added.Chookiat Ophaswongse, honorarypresident of the association, said that Thai rice exports this year would reach 9 million tonnes, worth about

US$4.75 billion (Bt150 billion).Export volume has increased largely this year as the price of Thai rice has fallengradually because the market is aware that the Thai government holds giant stockpiles and needs to releasethem continuously.

The export value will not increase as much as the volume due to the low price of Thai rice. The average priceper tonne of Thai rice is expected at $510 a tonne, compared with $620 a tonne last year, saidChookiat.However, the price of Thai rice has already bottomed out in recent months. The association foreseesthat the price of Thai rice is expected to increase slightly in the following months by about 10 per cent or $20-30 a tonne. Vichai Sriprasert, another honorary president, said the pledging project had not only created hugelosses to the country, but also destroyed farmers in the long run. The price of paddy rice in the local market hasdropped sharply from Bt11,000 a tonne during pledging to only Bt7,000 a tonne now.

Thai exporters raise 2014 rice export forecast to 9 mln tonnes

20130702_ThaiRice.jpg

Reuters

Wednesday, Jun 04, 2014

BANGKOK- The Thai Rice Exporters Association said on Wednesday it expected the country to export 9

million tonnes of rice in 2014, up from its forecast of 7.5 million tonnes madeearly this year."It is because the current Thai government doesn't have anyintervention programme and that allows the market mechanisms to work freely.As a result, Thai rice prices have gone lower than those of competitors,"Charoen Laothamatas, president of the association, told Reuters.Thailandexported 6.6 million tonnes in 2013, down from 6.9 million tonnes in 2012when the country lost its crown as the world's biggest rice exporter to

India.Exports slumped after the government of former Prime Minister Yingluck Shinawatra started buying ricefrom farmers at a price way above the market level from October 2011, which made export pricesuncompetitive.

Bangladesh grain imports likely to rise 22 pct in 2014/15-state buyer(Reuters) - Bangladesh's grain imports are likely to rise 22 percent to 1.1 million tonnes in the financial yearbeginning in July, the head of the state grains buyer said on Wednesday.The state grains purchasing agency wil


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import 900,000 tonnes of wheat and 200,000 tonnes of rice in the 2014/15 year to ensure food security, said AhmedHossain Khan at the Directorate General of Food.

In addition, the government will procure 1.5 million tonnes of rice locally."This target has been set for the comingfiscal year but it may be changed depending on the food situation," Khan told Reuters.In the current fiscal year, the

state buyer imported 900,000 tonnes of wheat, including 200,000 tonnes in a government-to-government deal withUkraine, but no rice was imported. (Reporting by Ruma Paul; Editing by Muralikumar Anantharaman)

Nagpur Foodgrain Prices Open- June 04

Wed Jun 4, 2014 3:22pm IST

Nagpur, June 4 (Reuters) - Gram and tuar prices in Nagpur Agriculture Produce andMarketing Committee (APMC) recovered strongly here on renewed demand from local millers amidweak supply from producing regions because of pre-monsoon rains in parts of Vidarbha. Sharp risein gram on NCDEX, weak overseas arrival and reported demand from South-based millers also

boosted prices, according to sources.* * * *

FOODGRAINS & PULSESGRAM* Desi gram declined further in open market on lack of demand from local traders amidrelease of stock from stockists.

TUAR* Tuar gavarani and tuar Karnataka firmed up in open market on renewed seasonal demandfrom local traders amid tight supply from producing belts.

* Moong Chamki shot up in open market on renewed demand from local traders amid thinsupply from producing regions.

* In Akola, Tuar - 4,100-4,300, Tuar dal - 6,300-6,500, Udid at 6,500-6,800,Udid Mogar (clean) - 7,600-8,100, Moong - 8,000-8,200, Moong Mogar(clean) 9,200-10,000, Gram - 2,400-2,600, Gram Super best bold - 3,300-3,600for 100 kg.

* Wheat, rice and other commodities remained steady in open marketin thin trading activity, according to sources.

Nagpur foodgrains APMC auction/open-market prices in rupees for 100 kg

FOODGRAINS Available prices Previous closeGram Auction 2,300-2,520 2,280-2,460


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Gram Pink Auction n.a. 2,100-2,600Tuar Auction 5,000-5,200 4,800-4,900Moong Auction n.a. 5,200-5,500Udid Auction n.a. 4,300-4,500

Masoor Auction n.a. 2,600-2,800Gram Super Best Bold 3,850-4,000 3,850-4,000Gram Super Best n.a.Gram Medium Best 3,500-3,700 3,500-3,700Gram Dal Medium n.a. n.a.Gram Mill Quality 3,300-3,400 3,300-3,400Desi gram Raw 2,500-2,650 2,600-2,700Gram Filter new 3,200-3,400 3,200-3,400Gram Kabuli 8,500-10,500 8,500-10,500Gram Pink 7,700-8,100 7,700-8,100Tuar Fataka Best 6,400-6,600 6,400-6,600

Tuar Fataka Medium 6,200-6,300 6,200-6,300Tuar Dal Best Phod 5,700-5,900 5,700-5,900Tuar Dal Medium phod 5,300-5,600 5,300-5,600Tuar Gavarani 4,350-4,450 4,300-4,400Tuar Karnataka 4,250-4,350 4,200-4,300Tuar Black 7,600-7,900 7,600-7,900Masoor dal best 6,200-6,400 6,200-6,400Masoor dal medium 6,000-6,200 6,000-6,200Masoor n.a. n.a.Moong Mogar bold 9,600-10,200 9,600-10,200Moong Mogar Medium best 8,900-9,400 8,900-9,400Moong dal super best 9,000-9,400 9,000-9,400Moong dal Chilka 8,800-9,200 8,800-9,200Moong Mill quality n.a. n.a.Moong Chamki best 8,200-9,500 8,000-9,100Udid Mogar Super best (100 INR/KG) 8,200-8,500 8,200-8,500Udid Mogar Medium (100 INR/KG) 6,800-7,600 6,800-7,600Udid Dal Black (100 INR/KG) 5,700-6,000 5,700-6,000Batri dal (100 INR/KG) 4,000-5,000 4,000-5,000Lakhodi dal (100 INR/kg) 3,000-3,100 3,000-3,100Watana Dal (100 INR/KG) 3,350-3,450 3,350-3,450Watana White (100 INR/KG) 3,600-3,700 3,600-3,700Watana Green Best (100 INR/KG) 4,900-5,400 4,900-5,400Wheat 308 (100 INR/KG) 1,200-1,600 1,200-1,600Wheat Mill quality(100 INR/KG) 1,300-1,600 1,300-1,600Wheat Filter (100 INR/KG) 1,300-1,500 1,300-1,500Wheat Lokwan best (100 INR/KG) 2,000-2,150 2,000-2,150


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Wheat Lokwan medium (100 INR/KG) 1,700-1,800 1,700-1,800Lokwan Hath Binar (100 INR/KG) n.a. n.a.MP Sharbati Best (100 INR/KG) 2,800-3,000 2,800-3,000MP Sharbati Medium (100 INR/KG) 2,200-2,700 2,200-2,700

Wheat 147 (100 INR/KG) 1,100-1,400 1,100-1,400Wheat Best (100 INR/KG) 1,700-2,000 1,700-2,000Rice BPT (100 INR/KG) 3,600-4,000 3,600-4,000Rice Parmal (100 INR/KG) 1,900-2,100 1,900-2,100Rice Swarna old (100 INR/KG) 3,000-3,200 3,000-3,200Rice HMT (100 INR/KG) 3,800-4,100 3,800-4,100Rice HMT Shriram (100 INR/KG) 4,600-5,400 4,600-5,400Rice Basmati best (100 INR/KG) 10,400-13,900 10,400-13,900Rice Basmati Medium (100 INR/KG) 7,300-10,000 7,300-10,500Rice Chinnor (100 INR/KG) 5,500-5,800 5,500-5,800Jowar Gavarani (100 INR/KG) 1,300-1,500 1,300-1,500

Jowar CH-5 (100 INR/KG) 1,600-1,700 1,600-1,700

WEATHER (NAGPUR)Maximum temp. 42.4 degree Celsius (108.3 degree Fahrenheit), minimum temp.26.9 degree Celsius (80.4 degree Fahrenheit)Humidity: Highest - 69 per cent, lowest - 27 per cent.Rainfall : 0.0 mmFORECAST: Partly cloudy sky. Maximum and Minimum temperature likely to be around 45 and 25degree Celsius respectively.

Note: n.a.--not available

(For oils, transport costs are excluded from plant delivery prices, butincluded in market prices.)

Farm Bill Enrollment Decisions Made Easier with Online Educational Tools

Looking for answers online.

(USDA photo)

WASHINGTON, DC -- Last week, Agriculture Secretary Tom Vilsack announced that the U.S. Department of

Agriculture (USDA) is awarding $6 million to universities and cooperative state extension services to develop online

decision tools and other education materials and to train extension personnel to educate producers about key farm bill

programs. The goal is to help farmers and ranchers make sound decisions about base reallocations, yield updates, and

what 2014 Farm Bill programs make the most sense for their specific situation.


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The Agricultural and Food Policy Center (AFPC) at Texas A&M, the Food and Agricultural Policy Research Institute

(FAPRI) at the University of Missouri, and the University of Illinois will share $3 million to develop and launch

educational tools to assist farmers and ranchers in making enrollment decisions for the Agriculture Risk Coverage (ARC)

program and the Price Loss Coverage (PLC) program. "Helping farmers and ranchers understand new Farm Bill programs

and what the programs mean for their families is one of USDA's top priorities," said Vilsack. "With the resources we'reproviding, university experts will help ensure farmers and ranchers are highly educated as they make critical decisions

about new programs. The new tools will empower farmers and ranchers to select the plan that best fits their unique

needs."

"For many years, the USA Rice Federation and AFPC have been collaborating on economic and farm policy analysis for

the rice industry," said Reece Langley, USA Rice vice president of government affairs. "We appreciate the strong

working relationship our industry has with AFPC and are pleased they will be part of the team developing this important

decision making tool for producers. We look forward to working with them to ensure that our members utilize this

valuable tool." Langley said producers can find a helpful worksheet on the AFPC website that will need to be filled in

prior to using the educational tool.

Contact: Lauren Echols, (703) 236-1444

CCC Announces Prevailing World Market Prices

WASHINGTON -- The Department of Agriculture's Commodity Credit Corporation todayannouncedthe

following prevailing world market prices of milled and rough rice, adjusted for U.S. milling yields and location,

and the resulting marketing loan-gain (MLG) and loan deficiency payment (LDP) rates applicable to the 2013

crop, which became effective today at 7:00 a.m., Eastern Time (ET). Prices are unchanged from the previous

announcement.

World Price MLG/LDP Rate

Milled

Value

($/cwt)

Rough

($/cwt)Rough ($/cwt)

Long-Grain 17.52 11.50 0.00

Medium-/Short-Grain 17.18 11.76 0.00

Brokens 12.00 ---- ----


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This week's prevailing world market prices and MLG/LDP rates are based on the following U.S. milling yields

and the corresponding loan rates:

U.S. Milling Yields

Whole/Broken

(lbs/cwt)Loan Rate

($/cwt)

Long-Grain 57.94/11.23 6.65

Medium-/Short-Grain 63.26/7.45 6.58

The next program announcement is scheduled for June 11.

CME Group/Closing Rough Rice Futures

CME Group (Preliminary): Closing Rough Rice Futures for June 4

Month Price Net Change

July 2014 $14.225 - $0.325

September 2014 $13.935 - $0.200

November 2014 $14.060 - $0.200

January 2015 $14.190 - $0.200

March 2015 $14.345 - $0.205

May 2015 $14.345 - $0.205

July 2015 $14.345 - $0.205

4th June,2014 Daily Global Rice E-Newsletter by Riceplus Magazine

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