7th february,2014 daily global rice e newsletter by riceplus magazine

7th February, 2014

Share developments
in RICE
and allied sectors,
Promote the Concept of
Knowledge Economy
Dear Sir/Madam,

YOUR IDEA has a great worth---JUST share it through
RICE PLUS

Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com
News and R&D Section mujajhid.riceplus@gmail.com
Cell # 92 321 369 2874

10000+ stakeholders of rice industry read & apply various ideas
and analysis written by the authors.
Be the part of Rice plus authors
Visit: www.ricepluss.com,www.publishpk.net
mujahid.riceplus@gmail.com
riceplus@irp.edu.pk
TOP Contents - Tailored for YOU
Latest News Headlines…










The uproar over Indonesia's rice imports
Vietnamese rice faces barriers in biggest markets
Vietnam likely to benefit from China’s cancelation of rice import deal with Thailand
Thai political crisis threatens budget, rice scheme, public works
EC threatens to sue over rice payments delay claims
Some Surin farmers getting compensated from rice scheme
Paddy production in West Bengal hit by floods
Nagpur Foodgrain Prices Open- Feb 07
Rice, lentil, loose soybean prices rise slightly

News Detail…
The uproar over Indonesia's rice imports
The Jakarta Post/Asia News Network
February 8, 2014, 12:06 am TWN

AKARTA -- The uproar in the last few days over alleged rice smuggling merely reinforces the fact that rice is a
politically charged commodity, and just how confusing the Indonesian government's policy is regarding this
national food staple.Many analysts and politicians have accused the Trade Ministry, which issues rice-import
licenses, of causing misery to farmers; and the issue became headline news in a number of media outlets when

Cell # 92 321 369 2874

Gita Wirjawan resigned as trade minister amid the debacle.This furor simply ignored the fact that the issue
concerns only about 16,500 tons of allegedly smuggled rice, compared to the national output of around 37
million tons last year and domestic consumption of 35 million tons.The country has enjoyed a modest rice
surplus over the last two years.
However, the current political approach to stimulating productivity through a price policy and non-tariff
barriers on imports has been fraught with difficulties and corruption.There is also a great deal of confusion
about the real level of rice prices, as many analysts and farmers' representatives have complained about low
prices.The dilemma is that allowing rice prices to continue to rise to give higher earnings to the farmers, as
several politicians and analysts have suggested, goes entirely against common sense and will instead only hurt
the majority of people, 80 percent of whom are net rice consumers.Data from the Central Statistics Agency
(BPS) shows that more than 75 percent of rice growers are net rice consumers. High prices hit the poorest even
harder because almost 30 percent of their household spending goes toward rice.Moreover, because of the
country's lengthy and porous coastline, which is close to several major rice-exporting ports in Thailand and
Vietnam, it is virtually impossible for Indonesia's domestic rice price to be maintained at a higher level than
border prices without encouraging smuggling.The present policy of controlling rice prices within an annually
reviewed range of floor and ceiling prices, to ensure fairness for both consumers and producers and making rice
imports only a contingency measure, is considered adequate.
But this price mechanism must be supported by a financially strong State Logistics Agency (Bulog) to enable it
to build up an adequate buffer in rice stocks, through domestic supplies or imports for market operations, to
stabilize prices.The biggest challenge is to ensure that Bulog has enough funds to make purchases whenever
needed to defend the floor price, and enough stocks to release to the market whenever prices rise too far above
the fixed ceiling.Bulog's market interventions, however, should be designed in such a way that price
fluctuations still allow for a fair profit margin for wholesalers and retailers. It makes no economic or political
sense for Bulog to manage more than 10 percent of national consumption as buffer stocks. The bulk of national
stocks should be held by private traders and farmers.

Vietnamese rice faces barriers in biggest markets
VietNamNet Bridge – Vietnamese rice is now “in danger,” finding it difficult to enter the three biggest export
markets. Meanwhile, though being welcomed in China, Vietnam keeps cautious about the market.

Indonesian Minister for Economic Affairs Hatta Rajasa
has requested the Ministries of Trade and Agriculture
to take a probe against the illegal rice imports from
Vietnam.According to the Vietnam News Agency, the

Cell # 92 321 369 2874

minister said there are some evidences about the importers’ license abuse.The request has been made following
the information that the illegal rice imports from Vietnam are being wholesaled in Cipinang or Baten province
in eastern Jakarta on January 30, estimated at 16,900 tons.The volume of rice was sold more cheaply than the
domestic products. Sources said the rice has been imported to Indonesia with the legal license granted by the
Indonesian Ministry of Trade.Hatta Rajasa emphasized that the Indonesian government never allows individuals
to import rice, and that it has authorized Bulog, an agency of the country, to import rice to stabilize the market
prices.
Therefore, it is highly possible that Vietnam’s rice has penetrated the Indonesian market through legal
channels.Prior to that, in October 2013, NFA, the Filipino food agency, warned that the contract on importing
120,000 tons of rice signed between the Filipino private import firms and the Southern Food Corporation
(Vinafood 2) is invalid, and that the imports will be blocked by the country’s customs agencies.According to
NFA, under the country’s national quota program, Filipino businessmen can only buy rice from Thailand, India,
China and Australia. The importers must obtain the special import licenses from NFA before they import rice
from other countries.Vietnam’s rice exports to the loyal markets of the Philippines, Indonesia and Malaysia
have dropped dramatically recently, thus leading to the sharp fall of the total rice exports.The rice exports to the
Philippines dropped by 63 percent in the first nine months of 2013, while the exports to Malaysia dropped by 35
percent.
Especially, Indonesia did not import rice from Vietnam. In the context of the sharp falls in the exports to the
loyal markets, the Vietnam’s rice production was “saved” by the strong rise in the exports to China. The export
volume to the market in 2013 was four times higher than that in 2012, about 1.6 million tons.China consumed
32 percent of Vietnam’s total rice exports, while African markets bought nearly 30 percent.However, Vietnam
has been warned against the reliance on China as the main export market. The unstable market would upset
Vietnam’s rice export strategy one day if Vietnam does not follow a reasonable business development plan.
Nguyen Dinh Bich, a well-known rice expert, on his article on Thoi bao Kinh te Saigon--while noting that
Vietnam had to lower the export prices sharply in 2013, which was a big bitterness, has warned that the same
scenario may repeat in 2014.The US Agriculture Department has predicted that the demand from the three
Vietnamese loyal markets would soar in 2014 to 4 million tons, while the demand from eight Asian big rice
importers would increase by 20.1 percent to 9.22 million tons. However, Bich commented that it would be not
easy to boost exports to the markets.
Dat Viet


Tags:rice exports,vietnamese rice,barriers,

Vietnam likely to benefit from China’s cancelation of rice import deal with Thailand
Last updated: Friday, February 07, 2014 12:00

Vietnam, the world’s second largest rice exporter, is likely to benefit from
China’s recent decision to cancel a deal to buy 1.2 million tons of rice from
Thailand, the Vietnam Food Association said.News website Saigon
Times quoted an unnamed association executive as saying Vietnam, which

Cell # 92 321 369 2874

missed its export target of 7-7.2 million tons last year, stands a big chance of boosting exports to China this year
because of its geographical proximity.The association forecast that other countries like Myanmar and Pakistan
would also try to take advantage of the cancelation, which was announced following a probe into the
transparency of rice deals between Thailand and China by Thailand’s National Anti-Corruption
Commission.But it also said China could ink another deal to buy rice from Thailand at lower prices.Vietnam
exported 6.6 million tons last year, down 15 percent from 2012, the year it surpassed Thailand to become the
world’s top exporter.Exports to China, both official and through border trade, exceeded 3.5 million tons.

Thai political crisis threatens budget, rice scheme, public works
BY ORATHAI SRIRING
BANGKOK Fri Feb 7, 2014 12:42am EST
(Reuters) - Thailand's inability to form a new government has left the country facing a slow-burn budget crisis,
with a costly rice-buying scheme close to collapse and public investment plans that were meant to support the
flagging economy under threat.
Prime Minister Yingluck Shinawatra has led a caretaker administration since December, when she called a snap
election in a bid to end protests that have shut down parts of the capital and with it much of normal government
business.But the demonstrations have continued, and protesters were able to disrupt voting in enough places to
prevent a new administration being installed after the poll on February 2."The fiscal budget plan has not started
yet. We haven't seen this situation before," Manas Jamveha, director general of the Comptroller General's
Department, told Reuters."We have to wait for a new government and its policies before proceeding on a budget
framework."By law, a caretaker government can only embark on new spending with the approval of the
Election Commission and it cannot initiate projects that commit the incoming government.According to the
Budget Bureau, ministers should have set a budget outline by January 28 for the fiscal year starting in October.
Details should be thrashed out in April and the budget sent to parliament in May.But with the opposition
challenging the legality of the poll and dozens of by-elections needed to fill vacant seats, It may be weeks, or
even months, before Thailand has a proper government again.Most urgent is the rice-buying scheme, which was
a cornerstone of the populist platform that won Yingluck a landslide election victory in 2011 but in recent
weeks has all but collapsed due to cash problems.The cost of the scheme, which guaranteed farmers an above
market price, has fuelled protests in Bangkok. Big banks have refused to offer bridging loans to keep it afloat,
unconvinced the government has the authority to seek them.
Some farmers have not been paid for their rice for months and the scheme lapses at the end of February, when
the current crop ends. Similar schemes have been routinely rolled over for decades, but not this year."These

Cell # 92 321 369 2874

payment problems stem from the dissolution of parliament, which made it difficult under the framework of the
law to approve payments," Yingluck, who will almost certainly be declared the winner of the election if is not
annulled by the courts, told reporters on Wednesday. "Whether this scheme is extended or not is up to the next
government."The protest movement has been trying since November to force out Yingluck and install an
unelected administration to ram through political and economic reforms, with the objective of reducing the
influence of her brother, former premier Thaksin Shinawatra who was ousted in a 2006 coup.
GROWTH FORECAST SLASHED
Many government ministries have been closed for weeks because of the protests, with civil servants working
from home or back-up facilities. Many from the Commerce Ministry, for example, have relocated to a royal arts
and craft center north of Bangkok and on Monday officials held the monthly inflation briefing in a restaurant.As
protest numbers dwindled this week, some ministries have tentatively reopened.
But policymaking remains restricted.Brokerage Thanachart Securities has slashed its economic growth forecast
for 2014 to 2.0 percent from 3.2 percent because of the likely fall in government spending, as well as delays to
both public and private investment."Our expectation of a reduction in populist spending, especially on the
massive rice scheme, forces us to lower our consumption growth assumption this year from flat growth to
negative growth of 1.2 percent," said its head of research, Pimpaka Nichgaroon, noting that consumption in
Thailand accounts for around half of GDP.A centerpiece of the government's economic policy - set to increase
growth by one percentage point in a full year, it said - was a 2 trillion baht ($61 billion) infrastructure program
focused on mass transit and high-speed rail networks.
Ministers approved related borrowing in March 2013 but it was contested by the parliamentary opposition
because it was off-budget and the case has been mired in the courts. It now seems unlikely the work will begin
any time this year.State-owned Electricity Generating Authority of Thailand (EGAT), the country's largest
power producer and operator of the national grid, said this week a $515 million infrastructure fund might be
delayed if a new government was not formed soon. It needs the money for new power plants and transmission
lines.A planned power station in southern Krabi province must await approval from the next government.Public
investment and infrastructure account for about 30 percent of total cement demand, so big suppliers are
concerned."If the government is unable to approve new infrastructure projects, new public spending will not
happen. That will drag down the overall sector," said Kan Trakulhoon, chief executive of Siam Cement Pcl. ($1
= 32.7600 Thai baht)

Cell # 92 321 369 2874

(Additional reporting by Khettiya Jittapong, Amy Sawitta Lefevre, Apornrath Phoonphongphiphat, Kitiphong
Thaichareon and Boontiwa Wichakul; Writing by Alan Raybould; Editing by Alex Richardson)

EC threatens to sue over rice payments delay claims
February 7, 2014 4:18 pm
The Election Commission is threatening to sue anyone who claims the agency is responsible for the government's repeated
postponement of payments to farmers who sold rice to its price-support scheme.EC commissioner Somchai Srisuthiyakorn
dismissed claims Friday that the agency barred the government from seeking loans to finance the scheme. More than a
million farmers across the country are owed money under the scheme. "The EC has no mandate whatsoever on the issue,"
Somchai said. "It's just that the Constitution prohibits a caretaker government from incurring debts that will affect the next
government."

The Nation

Some Surin farmers getting compensated from rice scheme
Date : 7

2557

SURIN, 7 February 2014 (NNT) – 21 branches of Thailand's Bank for Agriculture and Agricultural
Cooperatives (BAAC) located within 17 districts in Surin Province, have now transferred much of the money
from the rice pledging scheme implemented during the 2013/2014 harvest season, according to the bank. Mr.
Pairoj Rungpanarat, Assistant Director of the BAAC Surin branch, said the bank has already made 21,000
payments totaling 1.8 billion baht. Furthermore, the Surin BAAC Office has just received an additional 155
million baht to be transferred to the 21 branches in Surin, and the money will later be transferred to clients
involved in the rice pledging scheme.
Presently, there are 94,000 payments that have been made available to clients of the Surin branches of BAAC,
but some of the clients have still not contacted their branches, which the Surin Internal Trade Office has
confirmed. Meanwhile, other farmers have continuously brought their warehouse receipts to the BAAC to
receive their money from the bank, although their turn to get paid has not yet arrived. The Surin branch of
BAAC still owes 6.8 billion baht to more than 70,000 farmers that had joined the scheme.

Paddy production in West Bengal hit by floods
Namrata Acharya | Kolkata

Cell # 92 321 369 2874

Paddy production in West Bengal is likely to be lower by 10-15% this year due to crop damage on account of
extended rainfall and floods. Consequently, paddy prices are at a record high level this year, higher than the
minimum support price.In 2012-13, the state produced 15.3 million tonnes (MT) ofrice, an increase of 5.5%
over the previous year.Overall paddy production in the state is likely to be
about 5-10% lower than last year’s production on account of crop damage,
according to Pranab Chatterjee, professor at Bidhan Chandra Krishi
Viswavidyalaya.“Last year the rainfall persisted till the flowering period,
which has dragged down the average productivity,” said Rajoshri Kundu pf
Mali Agrotech.Against the normal productivity of nearly five to six tonne
per hectare, this year paddy productivity has been no more than 4.6 tonne
per hectare.Paddy prices of the commonly sold paddy are ruling at nearly Rs
1400 per quintal, against the MSP of Rs 1310 per quintal. Prices of fine variety is ruling between Rs 1500-1900
per
quintal,
against
the
average
price
of
Rs
1500
per
quintal.
This year, the districts which were affected by floods included high rice-productivity districts of Bardhaman,
Hooghly, Birbhum and Nadia. Burdwan, Birbhum, Nadia and Hooghly have the highest productivity and
account for about 27% rice acreage and 32% production.Rice production in West Bengal is spread across three
seasons---aus, aman and boro. Of these, thekharif rise aus and aman) account for about 70% of the state’s
production.
Boro Cultivation

While Aman or summer crop was damaged on account rainfall, Boro or winter cultivation could be higher on
account of high ground level water retention and ample supply of water from Damodar Vally
Corporation. “This year Boro rice could be grown over 15 lakh hectare, which against 9 lakh hectare due to
good prices and weather condition,’” said Chatterjee.While districts like Bankura, Bardhman and Birbhum are
likely to benefit from water supply from Kangsabati and Mayurakshi, areas where lift irrigation is in vogue
(Nadia), higher ground level would be beneficial for paddy cultivation, said Kundu.
However, high input prices have prompted many small growers to shift to alternative crops.“While acreage for
winter crop could be higher than last year, unprecedented rise in cost of electricity, fertilizer, labour and diesel,
have prompted many small farmers to go for jute cultivation instead of paddy, said Ramprasad Biswas, Gotra
Krishi Samavayi Samiti, Burdwan.“Per unit price of electricity has gone up from 50 paise to Rs 5 per unit in the
last four to five years. Similarly, fertilizer and diesel prices have gone up more than three times. On the other
hand, rise in paddy prices have not risen proportionately, which paddy cultivation unviable,” said

Cell # 92 321 369 2874

Biswas.However, paddy production during the Boro season is about 4.5 million tonnes--minuscule compared to
the peak production months.West Bengal accounts for 14-16% of India’s rice production.

Nagpur Foodgrain Prices Open- Feb 07
Fri Feb 7, 2014 3:20pm IST
Nagpur, Feb 7 (Reuters) - Tuar prices in Nagpur Agriculture Produce and Marketing Committee
(APMC) suffered heavily on lack of demand from local millers amid poor quality arrival. Easy
condition in Madhya Pradesh tuar prices and release of stock from stockists also pushed down
prices, according to sources.
*

*

*

*

FOODGRAINS & PULSES
GRAM
* Desi gram recovered in open market on renewed demand from local traders amid tight
supply from producing regions.
TUAR
* Tuar gavarani and tuar Karnataka reported down in open market in absence of buyers
amid profit-taking selling by stockists at higher level. Reports about good overseas
arrival also pushed down prices.
* In Akola, Tuar - 4,100-4,200, Tuar dal - 6,200-6,400, Udid at 6,000-6,300,
Udid Mogar (clean) - 7,000-6,200, Moong - 8,000-8,200, Moong Mogar
(clean) 9,400-9,600, Gram - 2,600-2,700, Gram Super best bold - 3,600-3,800
for 100 kg.
* Wheat, rice and other commodities remained steady in open market in thin trading
activity, according to sources.
Nagpur foodgrains APMC auction/open-market prices in rupees for 100 kg
FOODGRAINS
Gram Auction
Gram Pink Auction
Tuar Auction
Moong Auction
Udid Auction

Available prices Previous close
n.a.
2,600-2,800
n.a.
2,100-2,600
3,900-4,000
4,300-4,380
n.a.
4,400-4,600
n.a.
4,300-4,500

Cell # 92 321 369 2874

Masoor Auction
n.a.
2,600-2,800
Gram Super Best Bold
3,800-4,200
3,800-4,200
Gram Super Best
n.a.
Gram Medium Best
3,600-3,750
3,600-3,750
Gram Dal Medium
n.a.
n.a.
Gram Mill Quality
3,350-3,450
3,350-3,450
Desi gram Raw
3,150-3,250
3,100-3,200
Gram Filter Yellow
n.a.
n.a.
Gram Kabuli
7,900-10,300
7,900-10,300
Gram Pink
7,700-8,100
7,700-8,100
Tuar Fataka Best
6,400-6,600
6,400-6,600
Tuar Fataka Medium
6,000-6,200
6,000-6,200
Tuar Dal Best Phod
5,800-6,000
5,800-6,000
Tuar Dal Medium phod
5,300-5,600
5,300-5,600
Tuar Gavarani
4,000-4,100
4,100-4,200
Tuar Karnataka
4,100-4,200
4,200-4,300
Tuar Black
7,000-7,200
7,000-7,200
Masoor dal best
5,300-5,400
5,300-5,400
Masoor dal medium
5,000-5,200
5,000-5,200
Masoor
n.a.
n.a.
Moong Mogar bold
9,600-9,900
9,600-9,900
Moong Mogar Medium best
8,800-9,200
8,800-9,200
Moong dal super best
8,500-8,800
8,500-8,800
Moong dal Chilka
7,800-8,200
7,800-8,200
Moong Mill quality
n.a.
n.a.
Moong Chamki best
7,400-7,800
7,400-7,800
Udid Mogar Super best (100 INR/KG) 7,100-7,400
7,100-7,400
Udid Mogar Medium (100 INR/KG) 5,400-6,200
5,400-6,200
Udid Dal Black (100 INR/KG)
4,500-4,700
4,500-4,700
Batri dal (100 INR/KG)
3,850-4,650
3,800-4,600
Lakhodi dal (100 INR/kg)
3,000-3,100
3,000-3,100
Watana Dal (100 INR/KG)
3,250-3,350
3,250-3,350
Watana White (100 INR/KG)
3,200-3,300
3,100-3,200
Watana Green Best (100 INR/KG) 4,200-4,500
4,200-4,500
Wheat 308 (100 INR/KG)
1,800-1,900
1,800-1,900
Wheat Mill quality(100 INR/KG) 1,880-1,925
1,880-1,925
Wheat Filter (100 INR/KG)
1,750-1,950
1,750-1,950
Wheat Lokwan best (100 INR/KG) 2,100-2,550
2,100-2,550
Wheat Lokwan medium (100 INR/KG) 2,050-2,150
2,050-2,150
Lokwan Hath Binar (100 INR/KG) n.a.
n.a.

Cell # 92 321 369 2874

MP Sharbati Best (100 INR/KG) 3,100-3,600
3,100-3,600
MP Sharbati Medium (100 INR/KG) 2,500-2,900
2,500-2,900
Wheat 147 (100 INR/KG)
1,600-1,700
1,600-1,750
Wheat Best (100 INR/KG)
1,700-1,800
1,650-1,750
Rice BPT (100 INR/KG)
3,000-3,500
3,000-3,500
Rice Parmal (100 INR/KG)
1,800-1,950
1,800-1,950
Rice Swarna old (100 INR/KG) 2,600-2,900
2,600-2,900
Rice Swarna new (100 INR/KG)
2,300-2,500
2,300-2,500
Rice HMT new (100 INR/KG)
3,800-4,200
3,800-4,200
Rice HMT Shriram (100 INR/KG) 4,800-5,000
4,800-5,000
Rice Basmati best (100 INR/KG) 11,000-13,500
11,000-13,500
Rice Basmati Medium (100 INR/KG) 6,300-7,600
6,300-7,600
Rice Chinnor (100 INR/KG)
5,600-5,800
5,600-5,800
Rice Chinnor Medium (100 INR/KG) 5,200-5,500
5,200-5,500
Jowar Gavarani (100 INR/KG)
1,400-1,600
1,400-1,600
Jowar CH-5 (100 INR/KG)
1,700-1,800
1,700-1,800
WEATHER (NAGPUR)
Maximum temp. 32.5 degree Celsius (90.5 degree Fahrenheit), minimum temp.
15.5 degree Celsius (59.9 degree Fahrenheit)
Humidity: Highest - n.a., lowest - n.a.
Rainfall : nil
FORECAST: Mainly clear sky. Maximum and Minimum temperature likely to be around 34 and 15 degree
Celsius respectively.
Note: n.a.--not available
(For oils, transport costs are excluded

Rice, lentil, loose soybean prices rise slightly
FE Report

Vegetable prices increased while onion prices witnessed further reduction on Friday compared to that of the
previous week.Lentil and loose soybean prices increased slightly during the period, rice prices maintained
higher trend while other commodity prices were stable, traders said.Prices of many of the vegetables including
cauliflower, cabbage, bottle gourd, pumpkin, green banana, turnip, papaya, chick pea, bean, leaf vegetable etc
increased this week--- by Tk3-5 at per kg, per piece or at per bunch compared to that of last week.A cauliflower

Cell # 92 321 369 2874

was sold at Tk20-25 per piece which was priced between Tk15-20 last week, retailers at key kitchen markets in
the capital said. Prices of brinjal, potato, carrot, tomato, cucumber (khiroi variety), chilli prices were stagnant on
the day.
Bitter gourd (ustha variety) price witnessed a massive rise as per kg was sold at Tk70-80---a Tk20-25 increase
at per kg compared to that of last week."Excluding potato, prices of all the produces increased at farm level
which forced traders to raise prices a little bit," Balaram Sarker, a wholesaler at Rayer Bazar in the city
said."Per kg papaya costs us Tk7-8 last week which has increased to Tk10-11 this week," he said. Onion prices
came down by Tk3-4 at per kg this week and were sold at Tk24-25 (imported) and Tk25-26 (local), traders
said.Rice prices maintained a higher trend as coarse rice Swarna varieties were sold at Tk35-36 per, Brridhan28 varieties at Tk40-42 per kg, Miniket at Tk44-50 per kg on the day. Following increase in prices of bottled
soybean, loose soybean prices also increased.Per litre was sold at Tk 108-110 this week which was Tk106-108
last week. Prices of lentil were Tk118-120 (Nepalese) and Tk106-108 (local) per kg-Tk6-8 increase at per kg
compared to that of last week.

For Advertising SPECS & RATES
Contact: Advertising Department
Mujahid Ali
mujahid.riceplus@gmail.com
+92 321 369 2874

Cell # 92 321 369 2874

7th february,2014 daily global rice e newsletter by riceplus magazine

Recomendados

Recomendados

Más contenido relacionado

Último

Último (20)

Destacado

Destacado (20)

7th february,2014 daily global rice e newsletter by riceplus magazine