10th february 2014 daily global rice e newsletter by riceplus magazine

10th February, 2014

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Artists, scientists celebrate Manansala’s legacy
‘Unli’ rice unsustainable
Nigerian market has huge potential for Pakistani products: Danladi
EU Forecasts Stagnant Rice Production with Imports Rising over Next Decade
Oryza Rice CurrencCAnalysis for Today – Currencies Little Changed
Weaker Currency May Boost Argentina Rice Exports in 2013-14
Australia Rice Production, Exports Forecast to Decline in 2013-14
India Government MY 2013-14 Rice Procurement May Decline to 32 Million Tons, Says USDA Post
USDA Post Increases Bangladesh MY 2013-14 Rice Production Forecast to 34.59 Million Tons
Conab Announces Brazil Paddy Rice Auction Results
India Exports 7 Million Tons of Rice in April – November 2013; Up 10% from Previous Year
India Winter Rice Crop Planting Area Reaches 2.6 Million Hectares; Up 38% from Last Year
Thailand Rice Sellers Lower Some of Their Quotes Today; Other Asia Rice Quotes Unchanged
Thailand Government Seeks Millers Help to Pay Rice Farmers
Oryza Quick Glance at World News
Oryza White Rice Index – Rice Quotes Continue to Zigzag Higher; Thailand Headed for Civil War
Oryza Global Rice Quotes

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NEWS DETAILS:
Artists, scientists celebrate Manansala’s legacy
Category: Science
08 Feb

2014

‗ASCIENTIST also produces masterpieces,‖ said Bruce Tolentino, deputy director general for communication
and partnerships of the International Rice Research Institute (IRRI). The best artists and scientists, according to
Tolentino, are ―the same kind of people‖ in terms of their unyielding commitment and dedication to their life‘s
work.These words marked the closing of a daylong event entitled Si Manansala at ang Masaganang
Ani(Manansala and a Harvest of Plenty, translated by creative writer Frank Hilario) held on January 29 at IRRI
in Los Baños, Laguna.
In commemoration of Philippine National Artist Vicente
Manansala‘s 104th birthday, the event launched a partnership
among IRRI, the Friends of Manansala Foundation Inc. (FMF),
the National Museum of the Philippines and the National
Commission for Culture and the Arts (NCCA).The partners are
exploring options to preserve and relocate to a more secure
viewing space IRRI‘s two mural-sized Manansala masterpieces,
declared as Important Cultural Properties of the Philippines by the
National Museum. The paintings are currently in the cafeteria and
dining room of the IRRI headquarters in Los Baños.The day‘s
activities included a special viewing of the paintings, on-the-spot
sketching and painting sessions with invited artists, an art market and a special exhibit of Manansala pieces, on
loan for the day from private collections.
Artists, art enthusiasts, members of the media and IRRI staff gathered at the IRRI cafeteria in the afternoon for
a standing-room-only symposium on the life, work and influence of Manansala in Philippine art.Proclaimed
National Artist in 1982, a year after his death, Manansala is known for his trademark transparent cubism. In
November 1984 the Manansala paintings at IRRI underwent preventive conservation. Production of limitededition prints of the two Manansala paintings at IRRI was also launched during the event.Maritess Pineda, FMF
president, shared stories about Manansala welcoming her and other admirers to his home, and how art became
the locus of friendships that lasted their whole lives. Of the two paintings, she said, ―It is such a great honor to
find such treasure in here at IRRI.

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‖National Scientist Ben Vergara, speaking as a trustee of the National Museum, revealed that the Manansalas
were already present when the institute was formally dedicated in 1962. Vergara has worked at IRRI for several
decades and was in attendance during the dedication.This little piece of history may have come as a surprise to
some in the audience, but perhaps not so much for those who know the origins of the institute.IRRI was
established with support from the Ford and Rockefeller Foundations, in partnership with the Philippine
government. The Rockefellers are known to be patrons of both the arts and sciences. David Rockefeller Jr., a
fourth-generation descendant of the prominent family, viewed the paintings during a recent visit to IRRI with
his wife, writer and filmmaker Susan Cohn Rockefeller.Nemesio Miranda, senior artist and head of the
Committee on Visual Arts of the NCCA, said during the symposium that he took his first art workshop under
Manansala, whom he calls ―Mang Enteng.‖Ronna Manansala, an artist in her own right, revisited her memories
as a granddaughter of the national artist, who advised that she should always produce the best work possible.
Dr. Ana Labrador, assistant director of the National Museum, shared her deep admiration for Manansala and
underscored the need for various organizations to collaborate in conserving important pieces of art.Students
from the neighboring Philippine High School for the Arts performed several folk dances inspired by the
Manansala paintings. Lucky guests took home paintings donated by visiting artists for a raffle.Artists who
graced the event included Hermes Alegre, Rey Arcilla, Lito Balagtas, Cee Cadid, Cris Cruz, Buds Convocar,
Ember Crisostomo, Fil de la Cruz, Anna de Leon, Rudolf Gonzales, Boy Mata, Nemesio Miranda, Francis
Nacion, Roel Obemio, Al Perez, Omi Reyes, Ephraim Samson, Aner Sebastian, Migs Villanueva and Joseph
Villamar. IRRI‘s own Paul Hilario, curator of Riceworld Museum, also donated a piece for the raffle

‘Unli’ rice unsustainable
By Joji Co
Philippine Daily Inquirer
10:01 pm | Saturday, February 8th, 2014
PINOY STAPLE Rice retailed in Zamboanga City. JULIE ALIPALA/INQUIRER MINDANAO
Rice, a political commodity and the staple of Filipinos and most
Asians, is the cheapest on the dining table compared with
viands.Most Filipinos cannot consider their meal complete without a
cup of rice. Some restaurants now offer unlimited rice to customers.
This shows how big Filipinos consume rice.In Japan, rice is
considered a valued commodity because it is not only consumed as
cooked rice but is also used to make sake. Other Asian countries use
rice instead of wheat to make noodles. In our country, we use rice to
make products like kakanin (rice cakes).

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Indica variety
The Philippines like our Asean neighbors plants the indica variety (long grain) while Japan, Korea and Taiwan
use the japonica variety (medium to short grain).Sixty-percent of the country‘s population, especially those in
the rural areas, depends on the rice industry for livelihood.Rice consumption increases if the economy is bad as
this is the most affordable food to fill up the stomach and decreases as the economy improves because people
tend to eat more of dishes like meat, vegetables or fish.
Taken for granted
Rice is usually taken for granted because it is always available on the market. A customer would ask a waiter to
put in a doggy bag leftover dishes but uneaten rice, more often than not, would be left on the table to be
disposed of later by the restaurant.If consumers are educated on how hard it is for farmers to till the soil so they
can plant palay (unhusked rice) and on the process it takes to produce rice, attitudes toward rice would
change.That change would also save us millions of dollars spent on importing the staple to fill the gap between
production and consumption.
Top importer
We boast that we taught our Asian neighbors the science of planting rice through the International Rice
Research Institute and University of the Philippines Los Baños. Most of them are now exporters of rice but we
still remain an importer. We were rated the No. 1 importer in 2008 and have stayed on the list of Top 5
importing countries.The rice industry in the country is deteriorating instead of advancing because the real
problems are not being properly addressed. The economies of neighboring countries, especially Vietnam and
Thailand where we buy most of our imports, continue to grow partly due to their rice exports.Why do we need
to import rice for our buffer stock when every year, according to the Department of Agriculture, production has
been steadily increasing?
Channels
For a better understanding of the rice industry‘s situation let‘s start by looking at the channels or stages that
palay passes before it becomes cooked rice on the dining table.Farmers till the soil, plant palay and harvest
it.Assembly traders consolidate the farmers‘ produce on the farm to sell either directly to a rice mill or palay
trader as the farmers have limited logistics to transport their produce.Palay traders buy palay either from the
farmers or the assembly traders. Most of their warehouses are located near production areas. They buy and later
sell the palay to rice mills.Millers process the palay by removing the husk and polishing it to make the rice
white.Haulers transport the rice from the mill site to wholesalers (real rice trader).Market wholesalers keep big
stalls to stock some inventories.
Retailers sell directly to consumers.
Price fluctuation
The price of rice varies depending on the months—whether it‘s the harvest season or off-season harvest (lean
months). This is one factor that we should understand. Prices are low in the harvest season but gradually go up
during the lean months.In the harvest season, dried palay from the farm are milled immediately and some are
stored for milling during lean months. It is for this reason that prices of rice are low as fewer costs are incurred

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during processing.After the end of the harvest, most of the excess palay that were not milled are stored in
warehouses, resulting in additional costs when they are milled into rice.
These are the cost of money (interest), shrinkage (weight is reduced during storage) and cost of storage.These
add to the price of the rice milled from long-stored palay compared with the palay milled during the harvest
season. For every sack of palay milled during this period these cost factors are included until the next harvest
comes in.The variety, degree of milling (well-milled or regular), percentage of broken and whether it‘s aged
(laon) or new also determine the pricing.Rising fuel and electricity costs affect all the channels in the industry—
from production to delivery to markets, depending on the province and city.Prices in major producing provinces
are cheaper than in urbanized areas as the transport cost in the provinces is lower.
Antiquated
Inefficiency caused by the use of antiquated equipment often results in higher rice prices, depriving the farmers
of a better price for their palay.
Why are millers not improving or updating their equipment?
The first and foremost reason is government policy. Millers want to have a definite government policy (i.e. rice
importation) before investing in equipment, which entails big capitalization.Millers, as much as possible, want
to operate 24/7 to enable them to recoup their capital but with confusing government policies and direction
there are times when the mills operate only eight hours a day due to smuggling.Seldom or never has any
government agency mentioned any support for this dying sector. Warehouses, which store the produce of
farmers because the government doesn‘t have enough storage space, are sometimes raided for alleged hoarding.
It is a foolish business decision to hoard palay or rice since this commodity should be fast-moving. The more
you mill the faster you recover your capital.
Capital, labor-intensive
Milling is both capital- and labor-intensive. It also requires personal supervision by the owner because the palay
that is brought into warehouses for milling comes in different qualities—from high-moisture content to readyfor-mill quality.Variety also plays a vital role. Different varieties look similar but the differences depend on
what the farmers planted for the season and on the regions they came from.Price depends on these two major
factors. If the owner just lets an employee classify palay, he might end up milling bad grain or go bankrupt as
the palay that should be classified as class C is classified as class A through negligence or cheating.Worst if
palay is stored as it is only when the grain is milled that its quality comes out. A high price for palay and rice is
not beneficial to the rice milling industry and the country as businessmen will be needing more capital to
produce the same quantity as when the prices of palay and rice are lower.
Misconception
It is therefore a misconception that a higher price means more profit since the higher price limits your
capitalization, thereby reducing profit.
Although rice is part of agriculture, its dynamics are different from other produce. Unlike vegetables, which can
be sold as soon as these are harvested, palay undergoes a process before it is called rice.

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Post-harvest facilities
The lack of post-harvest facilities like mechanical dryers and the use of antiquated milling technology are the
biggest factors that contribute to unnecessary wastage, and low palay and high rice prices.The national average
recovery of the antiquated rice milling industry is only 60 percent compared with 66 to 70 percent for modern
rice mills. What we are importing is not the shortfall in production but the wastage in the post-harvest
segment.If we use modern technology, we will be self-sufficient and might even have a surplus for export,
based on data on palay production and the per capita consumption of 115 kilograms. Our farmers are very able
and efficient compared with their counterparts in the Asean.
The government, through the National Food Authority (NFA), sells rice at a subsidized price. The NFA‘s
mandate is to help farmers by having a price support mechanism for palay and by subsidizing the price of rice
for the poorer sectors of our society.If the private sector offers a higher price for palay and the NFA buys only a
small volume of the country‘s harvest given its buying price is pegged at P18/kg, farmers would rather sell to
the private sector for a better price.
NFA buffer stock
As the agency needs to stabilize the price and supply, it resorts to importation for its buffer stock in this kind of
situation.Consumers should be made aware that the price of NFA rice is subsidized and in no way it is possible
for the private sector to produce rice at given price of palay at, say, P18/kg and rice at P28/kg retail.Mechanisms
should be put in place for the sale of NFA rice so that the main beneficiary are the poor.At present, anybody can
go to the market and buy NFA rice. Thus, even the rich, who don‘t need the subsidy, benefit from it.
Rich enjoy subsidy
For instance, some people who live in exclusive villages separate their rice consumption from their domestic
helpers. Instead of buying commercial rice for helpers, they buy the government-subsidized rice. As a result, the
government is also subsidizing the upper class. The purpose of the subsidy is to help families who cannot
afford the commercial rice.Some companies also take advantage of this scheme as they would buy NFA rice for
the rice allowance of their employees.
Byproducts
We should take note that the beneficiaries of this industry are not only the consumers but also the poultry, hogs
and fisheries sectors. Rice bran (darak), a byproduct of milling palay, is used as feeds for the animal and fishing
industry.Breweries also use brewer‘s rice (binlid), another byproduct, for brewing their beer. Lately, the husk
(ipa) is being used as fuel for biomass plants to produce electricity.Unabated rice smuggling has also adversely
affected the industry. It eats into the income of farmers because it lowers the prices of their produce. Smuggling
deprives the government of revenue needed to support the agriculture sector.
Also adversely affected are other allied industries since there is no byproduct to speak of if there is no
milling.Smuggling came into the picture when importation, exclusively done before by the NFA, was opened to
the private sector. Permits to import were recycled several times until such time that they are needed by the

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Bureau of Customs. As this crime constitutes a major blow to the industry and the economy, a proposal to
consider this economic sabotage, thereby making it a heinous crime, should be supported.Stopping smuggling,
improving post-harvest facilities, avoiding wastage on the table, eating only what we need and doing away with
―unli‖ rice at restaurants will help make us self-sufficient in rice.(Joji Co is president of Philcongrains, an
association of rice millers founded in 1950, and director of Samahang Industriya ng Agrikultura, an umbrella
organization of federations and sectors in the agriculture industry.)

Nigerian market has huge potential for Pakistani products: Danladi
Salim Ahmed

Saturday, February 08, 2014 - Lahore—The Nigerian High Commissioner in Islamabad Dauda Danladi has said
that Nigerian market has huge potential for Pakistan Rice, Textile products, Pharmaceuticals and Agricultural
machinery including tractors, therefore Pakistani businessmen should avail opportunities in these areas. The
High Commissioner was speaking at the LahoreChamber of Commerce and Industry on Friday. LCCI President
Engineer Sohail Lashari presented address of welcome while Chairman LCCI Committee for Pakistan-Africa
Trade Promotion Zafar Mehmood, LCCI former Executive Committee Member Rehmatullah Javaid also spoke
on the occasion.
The High Commissioner said that the President of Pakistan and the Chief Minister Punjab had promised to take
business delegations to Nigeria that would pave way for frequent business exchanges between the two
countries. Mr Dauda Danladi said that Chief Minister Punjab had formed a committee to finalise modalities for
a high-powered visit to Nigeria. The High Commissioner expressed the optimism that the trade between
Pakistan and Nigeria would get a new boost as both sides were planning to sign various trade-related
agreements including Preferential Trade Agreement very soon.
Speaking on the occasion, the LCCI President Engineer Sohail Lashari said that Pakistan‘s business
community was well aware of the market size of Africa and Nigeria could serve to be the best destination to
exploit the potential. The LCCI President said that the continuity of organizing Africa Show every year in
Lahore is a clear sign of LCCI‘s commitment towards bridging the gaps and upsizing the current level of two
way trade. Engineer Sohail Lashari said that it is encouraging to note that Nigeria is one of the major member
states of African Union and classified as an emerging market rapidly approaching to middle income status.
―By way of having good banking network and stock exchange, Nigeria seems fully poised to lead the
acceleration of Africa‘s economic development.‖ He said that the joint efforts in the form of organizing Africa
Show on regular basis from the last three years or so have started paying off.

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EU Forecasts Stagnant Rice Production with Imports Rising over Next Decade
Feb 07, 2014

European rice acreage is expected to remain nearly unchanged in the next decade with imports rising to keep
pace with increasing demand, according to the report "Prospects for Agricultural Markets and Income in the EU
2013-2023.‖The report predicts that rice acreage expansion is very unlikely, so any increase in production will
need to come from higher yields. It goes on to say that while the recent increase in yields has been modest,
yields may rise more going forward thanks to higher prices and rising domestic demand.EU forecasts a milled
rice production of 1.8 million tons already starting from 2014, after 1.7 tons in 2013, amid a bump in rice
acreage. After that, there‘s expected to be no variation in rice acre for the next decade. Imports are projected to
increase from present one million tons to 1.2 million tons by 2023, a consequence of growing consumption,
which is projected to rise from 2.6 million tons in 2013 to 2.9 million tons in 2023.
Tags: EU rice production, italy rice production

Oryza Rice CurrencCAnalysis for Today – Currencies Little Changed
Feb 07, 2014

U.S. dollar index was down -0.29% from the open today, when it traded at 80.675 at the close.
Euro was stronger +0.32% today by the close, trading around 1.3633 by end of day, after trading between an
intraday high of 1.3642 and low of 1.3552.
Thai baht was weaker -0.01%, trading at 32.800 at the close of business.
Indian rupee was stronger +0.16% at 62.2900.
Brazilian real was +0.11% stronger than the open at today‘s close, when it ended at 2.3792 reais per dollar.
Pakistan rupee was virtually unchanged at 105.3700.
Vietnamese dong was unchanged at 21105.
Mexican peso was -0.06% weaker today, when it traded at 13.2827 pesos per dollar by the close of business
today.
Chinese yuan was weaker -0.03%, trading at 6.0639.

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Argentine peso was +0.47% stronger, trading at 7.8409 pesos per dollar.
Tags: foreign exchange rates

Weaker Currency May Boost Argentina Rice Exports in 2013-14
Feb 07, 2014

Exporters in Argentina expect rice exports
in MY2013-14 (beginning April 2014) to
reach a record high of around 650,000 tons
(milled basis), up about 75,000 tons or 13%
from USDA official estimates of around
575,000 tons, and the highest since 201011, according to the USDA Post in
Argentina.Projections of higher rice exports
this year are mainly due to the recent
devaluation of the peso against the USD.
The Argentina peso was valued at around
6.21 per USD on December 16, 2013, but
has weakened about 30% to over 8 pesos
per USD on February 5, 2014. Weaker currency has made Argentina rice less expensive in the international

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market. ―As a result of the recent peso devaluation, Argentine rice became more competitive as the price paid
by buyers in dollar terms now allows them to make a profit on their exports,‖ the USDA Post in Argentina
says. Local exporters say most of the rice exports will reach Brazil, Chile, Iraq, and Iran. Argentina is entering
into several Central American countries and could expand exports to Peru, the USDA Post says. Most of the
rice produced in Argentina is exported. According to the USDA, Argentina‘s rice production in 2013-14 is
expected to reach around 975,000 tons, against a consumption of around 430,000 tons.
Tags: Argentina rice exports, Argentina rice production

Australia Rice Production, Exports Forecast to Decline in 2013-14
Feb 07, 2014

The USDA Post in Australia says that Australia‘s rice production is likely to decline to around 653,000 tons
(basis milled) in the marketing year 2013-14 (beginning March 2014), down about 4% from USDA official
estimates of around 680,000 tons and down about 22% from an estimated 835,000 tons produced in the

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previous year.―Continued lack of winter rainfall across rice production areas have led to persistent water
shortages in irrigation areas. Lack of rainfall and higher temperatures are likely to reduce plantings further,‖ the
USDA Post says. Rice area in MY 2013-14 is expected to decline to around 101,000 hectares, down about 11%
from around 114,000 hectares in the previous year.Domestic consumption is expected to reach around 350,000
tons in MY 2013-14, down about 11% from an estimated 392,000 tons in the previous year, while exports in
MY 2013-14 are forecast at around 500,000 tons, unchanged from the previous year.
Tags: Australia rice production, Australia rice exports

India Government MY 2013-14 Rice Procurement May Decline to 32 Million Tons,
Says USDA Post
Feb 07, 2014

Domestic rice procurement by the Indian government in the MY 2013-14 (October - September) is likely to
decline to around 32 million tons, down about 6% from around 34 million tons in the MY 2012-13 due to
relatively firm market prices this year, according to the USDA Post in New Delhi.Government procurement has
been slow since October 2013 in most Indian states except Chhattisgarh, Tamil Nadu and Madhya Pradesh,
according to the USDA Post. According to the Food Corporation of India (FCI), the government has procured
about 18.73 million tons of rice between October 2013 and mid of January 2014, down about 7% from around
20 million tons procured during the corresponding period in the MY 2012-13. FCI data shows that government
rice procurement in MY 2013-14 is slow in the states of Andhra Pradesh, Odisha, Uttar Pradesh and
Punjab.However, the USDA Post expects rice procurement to improve in the coming months as the market
prices are likely to decline from their current levels. Current market prices for common grade coarse grade
paddy rice range from Rs. 18,850 to Rs. 30,450 (about $305 - $490) per ton in most states.For the CY 2013, the
USDA Post expects the exports to touch 10.5 million tons based on the figures from official and private sources.
According to the USDA Post, the provisional shipment data from private sources indicate that India's rice
exports in January 2014 improved after weakening in November and December 2013. However, with domestic
prices falling in the recent months, more rice was shipped to Africa and other Middle East countries. India's
long grain Basmati rice exports to Iran had also slowed down between October and December 2013, but have
started improving, the USDA Post says.
Tags: India rice procurement, India rice exports

USDA Post Increases Bangladesh MY 2013-14 Rice Production Forecast to 34.59
Million Tons
Feb 07, 2014

Bangladesh's rice production in the MY 2013-14 (May 2013 - April 2014) is expected to increase to around
34.59 million tons, up about 2% from around 33.82 million tons produced in the MY 2012-13 due to better

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yields and good weather, according to the USDA Post in Dhaka.The USDA Post lowered its estimates for the
Aus (planted in March/April and harvested in June/July) crop by 90,000 tons to 2.41 million tons as the yields
were hurt by flash floods in northern districts, but it increased estimates for the Boro (planted in
December/January and harvested in May/June) crop by 280,000 tons to 18.78 million tons due to better yields
and good weather. The USDA Post kept its last quarter estimates for the Aman (planted in July/August and
harvested in November/December) crop at 13.4 million tons.Bangladesh's rice imports are expected to decline
to around 220,000 tons in MY 2013-14, down about 12% from USDA official estimates of 250,000 tons as the
new Aman rice crop is expected to be more price competitive than the imported Indian rice.
The local wholesale and retail prices in Dhaka increased last year due to strikes and road blockades since
summer 2013. In December 2013, the wholesale prices of rice increased by almost 40% and the retail prices
increased by around 24% from the previous year. Last year, many private importers preferred imported rice
over the local rice and by the end of December, 2013 the private sector imported nearly 202,000 tons, the
USDA Post says.The Bangladesh government rice stocks as of the last week of December 2013 stood at around
676,000 tons. In the MY 2013-14, the Government of Bangladesh (GOB) purchased 830,000 tons of Boro rice
and it plans to buy 300,000 tons of Aman rice by the end of February 2014. According to USDA Post, rice
stocks with the private sector (including farmers, millers and traders) are likely to be around 13 million
tons.Bangladesh‘s annual consumption of rice is estimated at around 34.6 million tons.
Tags: Bangladesh rice production, Bangladesh rice imports

Conab Announces Brazil Paddy Rice Auction Results
Feb 07, 2014

Brazil's state agency, CONAB, offered about 44,817 tons of paddy from previous crop years, including 200809, in two different auctions and sold about 38,738 tons (equivalent to about 86% of paddy offered).In the first
auction, CONAB offered about 28,268 tons of paddy and sold about 22,999 tons at an average price of about
691 reals (about $290) per ton.In the second auction, CONAB offered about 16,549 tons of paddy and sold
about 15,739 tons at an average price of about 693 reals (about $291) per ton.
Tags: Conab paddy rice auction, Brazil rice production

India Exports 7 Million Tons of Rice in April – November 2013; Up 10% from
Previous Year
Feb 07, 2014

India‘s total rice (basmati and non-basmati) exports in April - November of the fiscal year 2013-14 (April 2013
- March 2014) have increased to around 7 million tons, up about 10% from around 6.39 million tons exported
during the corresponding period in the FY 2012-13, according to provisional data by the Agricultural and
Processed Food Products Export Development Authority (APEDA).

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At the current pace, India‘s total rice exports are expected to reach around 10.5 million tons in FY 2013-14, up
about 3% compared to around 10.15 million tons exported in FY 2012-13.In value terms, India‘s total rice
exports have increased sharply to around Rs. 91,243 crore (around $4.884 billion) during April – November
2013, up about 44% from around Rs. 202,846 crore (around $3.716 billion) in the same period in FY 2012-13.
In USD terms, value of rice exports grew by 31% during April – November 2013.India's basmati rice exports
have increased to
around 2.37 million
tons in April November 2013, up
about 11% from about
2.13 million tons
exported in the same
period in FY 2012-13.
In
value
terms,
basmati rice exports
surged
to
about
Rs.17,529
crore
(around
$2.962
billion) during the first
eight months of FY
2013-14, up about
56% from around
Rs.11,219
crore
(around
$2.055
billion) earned in the
same period in FY
2012-13. In USD
terms, India‘s basmati rice exports grew by 44% in April – November FY 2013-14.India‘s non-basmati rice
exports in April - November 2013 increased to around 4.65 million tons, up about 9% from around 4.26 million
tons recorded in the same period in FY 2012-13. In value terms, non-basmati rice exports earned about
Rs.11,595 crore (around $1.921 billion), up about 28% from around Rs.9,066 crore (around $1.661 billion) in
the same period in FY 2012-13. In dollar terms, non-basmati rice exports grew by 16% during the period.
Tags: India rice exports

India Winter Rice Crop Planting Area Reaches 2.6 Million Hectares; Up 38% from
Last Year
Feb 07, 2014

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Area under India's rabi (winter) rice crop planting stands at about 2.59 million hectares as of February 7, 2014,
up about 38% from around 1.88 million hectares recorded during the same time in 2013, according to the
Ministry of Agriculture.India‘s total rabi planting area (including rice and other grains) stands at about 65.42
million hectares, up about 6% from about 61.88 million hectares recorded during this time last year.
Tags: India rice planting area

Thailand Rice Sellers Lower Some of Their Quotes Today; Other Asia Rice Quotes
Unchanged
Feb 07, 2014

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Thailand rice sellers lowered their quotes for parboiled rice by about $5 per ton to about $450 - $460 per ton
today. Other Asia rice sellers kept their quotes mostly unchanged.
5% Broken Rice
Thai 5% rice (of new crop) is quoted around $435 - $445 per ton, about a $35 per ton premium over Viet 5%
rice shown around $400 - $410 per ton.
Indian 5% rice is quoted around $410 - $420 per ton, about a $20 per ton premium over Pak 5% rice quoted
around $390 - $400 per ton.
25% Broken Rice
Thai 25% rice (of new crop) is quoted about $390 - $400 per ton, about a $15 per ton premium over Viet 25%
rice shown around $375 - $385 per ton.
Indian 25% rice is quoted about $355 - $365 per ton, about a $10 per ton premium over Pak 25% rice quoted
around $345 - $355 per ton.
Parboiled Rice
Thai parboiled rice of the old crop is quoted around $450 - $460 per ton, down about $5 per ton from yesterday.
Indian parboiled rice is quoted around $395 - $405 per ton, about $10 per ton discount to Pak parboiled rice
quoted around $405 - $415 per ton.
100% Broken Rice
Thai broken rice, A1 Super, of the old crop is quoted around $310 - $320 per ton, about a $45 per ton discount
to Viet broken rice shown around $355 - $365 per ton.
Indian broken sortexed rice is quoted about $295 - $305 per ton, about a $25 per ton discount to Pak broken
sortexed rice quoted around $320 - $330 per ton.
Tags: Asia rice quotes, Thailand rice quotes, Vietnam rice quotes, Pakistan rice quotes, India rice quotes

Thailand Government Seeks Millers Help to Pay Rice Farmers
Feb 07, 2014

Thailand‘s caretaker government is seeking the help of the Thai Rice Mills Association (TRMA) to help make
payments to farmers under the rice-pledging scheme, according to local sources.The government proposes that
the TRMA to accept pledging documents from rice farmers and pay at least around 50%-60% of the pledging
amount, according to the caretaker Deputy Commerce Minister. Farmers would return the money to the mills
with interest once farmers get the full payment from the Bank of Agriculture and Agricultural Cooperatives
(BAAC) and the government would bear the interest cost, he adds. The minister also says that the government
will seek permission from the Election Commission to use the 1.2 billion baht (around $36.5 million) from the
central budget funds to pay the interest. If the millers agree to the proposal, the government intends to
implement payment mechanism from February 2014.The TRMA says that millers are unlikely to reject the
government proposal, but there are concerns that banks and financial institutions may not release loans to
millers. Sources say that banks are concerned whether the caretaker government has the authority to spend
central budget funds towards payment of interest for farmers. The Thai Farmers Association says that the only
option left with the government is to free up stocks from its warehouses and speed up sales.Meanwhile, as a

Cell # 92 321 369 2874

relief measure to the farmers, the BAAC has agreed to extend the debt-moratorium to farmers by six months
and offer low-interest loans as well.
Tags: Thailand rice mortgage program, Rice farmer payments

Oryza Quick Glance at World News
Feb 07, 2014

Financial Times –
*IBM is exploring a sale of its semiconductor business in what would be its most significant strategic move
since it faced a financial crisis in the early 1990s. The U.S. technology giant has appointed Goldman Sachs to
sound out possible buyers for the business, according to people familiar with the matter.
*Ocwen Financial, the largest non-bank mortgage servicer in the U.S., faced another setback as New York‘s top
banking regulator halted indefinitely its plans to buy $39 billion of mortgage-servicing rights from Wells Fargo.
*The White House pointed the finger at Moscow after leaked recordings of its top diplomats discussing Ukraine
emerged on Thursday in an episode that threatens to embarrass Washington and inject fresh tension into
already-strained relations with Russia. In an audio clip posted on YouTube, voices resembling those of Victoria
Nuland, a U.S. assistant secretary of state, and Geoffrey Pyatt, ambassador to Ukraine, are heard talking by
telephone about how to resolve the stand-off in Kiev after two months of anti-government protests.
*ECB kept its benchmark main refinancing rate at 0.25% and ECB president Mario Draghi‘s insistence that
there remained little threat of deflation.
*EU officials have strongly criticized Turkey‘s approval of a law to toughen controls on internet access in the
latest sign of concern in Brussels about the direction the country – an EU aspirant – is taking.
*The ―bail-in‖ bonds issued by banks to absorb losses in the case of financial difficulty are much riskier than
first thought, Standard & Poor‘s has warned, as it announced plans to cut its ratings on the instruments.
*Malaysia still has a healthy trade balance, but the surplus came in a touch lower than expected for December.
The trade surplus was Rm 9.47 billion ($2.5 billion), against forecasts of 9.56 billion and down slightly on the
previous month.
*The Reserve Bank of Australia increased its forecasts for both GDP and inflation, implying the economy is
strong but that the central bank will not loosen policy out of fear of runaway price increases.
Wall Street Journal
*Apple Inc. has bought $14 billion of its own shares in the two weeks since reporting financial results that
disappointed Wall Street, Chief Executive Tim Cook said in an interview.
*Bank of Japan deputy governor, Kikuo Iwata, shrugged off the impact of recent global market turbulence
Thursday, saying the economy remained on track to exit deflation and offered no reason for the central bank to
roll out additional stimulus measures.
*Pakistan's government negotiators and a Pakistani Taliban-nominated committee met for the first time on
Thursday after months of delays, kicking off an attempt to open peace talks with the Islamist militant group.

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*The U.S. and Iran are staking out increasingly entrenched and opposing positions over Tehran's nuclear
program, threatening the prospects of a vital foreign policy initiative of President Barack Obama.
*Australia's conservative government is walking a fine line in proposing deep budget cuts as resource-rich
economy is slowing, Moody's Investors Service said.
*India approved a proposal by Vodafone Group to take full ownership of its local unit by paying around 100
billion rupees ($1.6 billion), as the U.K. mobile-phone company looks to expand in one of its key growth
markets.
*U.K.'s Prime Minister, David Cameron, planned to deliver a warning on Friday that the U.K.'s global stature
would be damaged if Scotland chose independence in a referendum in September.
*South Korea welcomed a decision by Virginia to back its position in a sea-naming dispute with Japan, the
latest flashpoint in deteriorating relations between Seoul and Tokyo. Japan expressed regret over the move.
Virginia's state legislature on Thursday voted to mandate the inclusion of the Korean name for the sea between
Japan and Korea in the state's school textbooks from July.
New York Times
*The yearlong effort to overhaul the U.S.‘s immigration laws, which had the support of President Obama,
Republican leaders and much of American business and labor, was seriously imperiled on Thursday when
Speaker John A. Boehner conceded that it was unlikely he could pass a bill.
*France's trade deficit with the rest the world fell by 6 billion euros last year to 61.2 billion euros, as imports
fell faster than exports, the Trade Ministry said on Friday.
*Spain's calendar-adjusted industrial output rose 1.7% year-on-year in December, data from the National
Statistics Institute showed on Friday, compared to a revised rise of 2.4% in November.
*U.S. employment likely rebounded in January after being held back by cold weather the prior month, which
would offer assurance that economic growth was not faltering. Nonfarm payrolls are expected to have increased
by 185,000 last month, according to a Reuters survey of economists, with the jobless rate seen holding at a fiveyear low of 6.7%.
*China's President Xi Jinping said Russia's Winter Olympics would be splendid, state media reported, a show of
support during a meeting with his Russian counterpart before Friday's official opening of the Games in Sochi.
*India's Supreme Court ordered state-run power producer NTPC Ltd on Friday not to disconnect power supplies
to distribution companies in the capital New Delhi until March 26, 2014, averting a potential blackout next
week.
Tags: World news

Oryza White Rice Index – Rice Quotes Continue to Zigzag Higher; Thailand Headed for
Civil War
Feb 07, 2014

Cell # 92 321 369 2874

The Oryza White Rice Index, a weighted average of global white rice export quotes, ended the week at $463 per
ton, down about $1 per ton from a week ago, up about $3 per ton from a month ago and down about $27 per ton
from a year ago.According to the International Grains Council (IGC), global rice trade will increase about 4%
or about 1.3 million tons in 2014 from 2013. IGC says the boost is due to higher shipments to Far East Asia

Cell # 92 321 369 2874

(especially China, Indonesia, the Philippines, South Korea, Bangladesh, Japan, and Malaysia), which are
predicted to increase about 15% year-to-year. This would be good news for Thailand to clear its rice stocks, if
the political situation can hold out long enough.
The other major unknown is India. There are two potential risks to its rice export flow: a weather-caused crop
loss as a result of El Nino or some other phenomenon, and pressure on the nation to reduce subsidizes which
have contributed to higher production and record rice and wheat exports.
Thailand
Thailand 5% broken rice is today shown about $440 per ton, unchanged from a week ago, up about $20 per ton
from a month ago and down about $115 per ton from a year ago.
The Thai Rice Exporters Association has predicted Thai rice exports will increase about 0.9% in 2014, reaching
7.5 million tons valued at $4.5 billion. This is slightly lower than the Commerce Ministry‘s estimate of 8
million tons and quite a bit lower than the USDA‘s forecast of 8.5 million tons. Some exporters are skeptical
that it will increase this much, pointing to decreased buyer confidence, and increased competition with
traditional exporters such as India and Vietnam and emerging exporters such as Myanmar and Cambodia. In
2013, Thailand exported only 6.6 million tons of rice, about 1.8% less than the previous year.
China‘s government this week announced that it will not be following through with the agreement to buy 1.2
million tons of rice from Thailand signed on November 20, 2013. Local sources say that the cancellation will
not impact private exports to China.
Protests in Thailand continue, as farmers await payment. Some farmers are asking for their rice, instead of
awaiting payment that they fear won‘t come anytime soon, and the opposition leader threatened a ―Robin
Hood‖-like effort whereby they would steal back rice to give to the farmers. Being pressed by banks to repay
loans, and lacking the funds from their paddy, there have been instances of farmers taking drastic measures,
including suicide, making the fiasco even more devastating for Thailand and the Thai people. Meanwhile, the
caretaker government has asked for help from the Thai Rice Mills Association to pay rice farmers and has also
blamed the dissolution of parliament as being the reason farmers are still unpaid. The political future of
Thailand remains uncertain. The protests prevented many voters from casting their choice in the election
Sunday, so the caretaker government there remains stagnant and online commentators are saying February 7,
2014 will later be called the day Thailand‘s social war began.

India
India 5% broken rice is today quoted about $415 per ton, unchanged from a week ago, up about $10 per ton a
month ago and down about $25 per ton from a year ago.
For the period April-November 2013, India exported about 7 million tons of rice, an increase of about 10%

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from the same period in the previous year, according to data by the Agricultural and Processed Food Products
Export Development Authority. Exports during that period also increased in value to about Rs. 291,243 (about
$4.884 billion), up about 44% from the same period the previous year.
According to the USDA Post in New Delhi, rice procurement by the Indian government may decline to about
32 million tons for the MY 2013-14 (October-September). This is about 6% less than 2012-13.
Planting for India‘s rabi (winter) rice crop has reached about 2.6 million hectares as of February 7, an increase
of about 38% from the same time in 2013.
In a meeting of the WTO‘s Committee on Agriculture, India denied allegations by the U.S., Pakistan, and
Canada that it has been subsidizing rice and wheat grains. With Indian rice and wheat seeming to flood the
export markets, the nation‘s food programs are being called into question and could face increasing resistance
from competition nations.
The Solvent Extractor‘s Association of India (SEA) claims that India can produce 1.5 million tons of rice bran
oil per year, while it currently only produces about 900,000 tons of the oil. India produces about 75% of total
global production, which is only about 1.2 million tons. If global demand for rice bran oil increases, India is
posed to dominate the new market. Thailand and Japan have both shown interest in importing rice brain oil
from India, but current government policy in India does not allow for the export of edible oil in bulk.
Vietnam
Vietnam 5% broken rice ended the week at $405 per ton, unchanged from a week and a year ago, but down
about $5 per ton from a month ago.
The State Audit Board (BPK) in Indonesia will investigate the import of about 16,000 tons of non-specialty rice
from Vietnam in 2013, according to local sources. Specifically, they will seek to find out whether the rice was
imported legally, whether it led to state losses, and whether the regulations of the trade and agriculture
ministries were correlated.
Pakistan
Pakistan 5% broken rice is today shown about $395 per ton, unchanged from a week and a month ago, and
down about $30 per ton from a year ago.
Brazil
Brazil 5% broken rice is today shown about $665 per ton, unchanged from a week ago and down about $20 per
ton from a month ago.
The Brazilian paddy rice index maintained by CEPEA was about 36.54 real per 50 kg as of February 4, down
just slightly from the previous week.

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CONAB announced the results of its February 7 auction. They sold about 23,000 tons of paddy at an average
price of 691 reals (about $290) per ton and they sold about 15,700 tons at an average price of 693 reals (about
$291) per ton.

US
U.S. 4% broken rice ended the day at about $580 per ton, down about $10 per ton from a week ago, $15 per ton
from a month ago and 32 per ton from a year ago.
According to the USDA, total rice production in the U.S. for 2013 was about 6.6 million tons (milled
equivalent), a decrease of about 8.3% from 2012, in which 7.2 million tons were produced. During the same
period, average paddy rice prices increased by about 6.2% to about $340.24 per ton from $320.22 per ton in
2012.
On Tuesday, the U.S. Senate passed the new five-year farm bill with a vote of 68 to 32. President Obama is
expected to sign the bill Friday. USA Rice supports the current bill.
Chicago rough rice futures were up and down this week, reaching a low of about $15.25 per cwt (about $336
per ton) on Monday afternoon. They gradually regained strength and finished the week around $15.35 per cwt.

Other Markets
Cambodia 5% broken rice today quoted about $455 per ton, unchanged from a week ago and down about $10
per ton from a month ago. In January, Cambodia exported 21,536 tons of rice, according to data from the
Secretariat of One Window Service of Rice Export Formality (SOWS-REF) – slightly under last year‘s monthly
average, which isn‘t unusual for January.
Uruguay and Argentina 5% broken rice today quoted about $630 per ton, unchanged from a week and a month
ago, up about $20 per ton from a year ago.
The USDA Post in Mexico has increased its prediction for Mexico‘s total rice production for MY 2013-14
(October to September) to 196,000 tons of paddy (about 133,000 tons, basis milled). This is an increase of
about 4% from the official USDA estimate provided earlier.
The USDA Post has increased its prediction for Turkey‘s rice imports for MY 2013-14 (September-August)
from 280,000 tons to 330,000 tons, an increase of about 18%. The increase is likely due to drought conditions
and high domestic products.
The International Rice Research Institute (IRRI) in the Philippines is developing a new variety of rice that will

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be tolerant of flooding, drought, and salty water. This ―3-in-1‖ climate-resilient rice variety will also provide
good yields.
The National Food Authority (NFA) in the Philippines has begun accepting applications from private importers
for the import of 163,000 tons of well-milled rice from Thailand (98,000 tons), India (25,000 tons), China
(25,000 tons), and Australia (15,000 tons). The import is under the 2014 Minimum Access Volume – Country
Specific Quota program.
According to local sources, the Philippines government will shift its focus from rice self-sufficiency to other
high-value agricultural crops, concerning some who worry the country‘s problems with rice smuggling and rice
imports will only be exacerbated by this refocus.
According to the Bureau of Agriculture Statistics (BAS), average domestic rice prices in the Philippines were
about 4%-5% higher in 2013 than in 2012.
Myanmar announced it will export 6,000 tons of rice to Japan in May. The country is trying to boost highquality exports to Japan, China, Africa, and the EU.
The second (dry season) rice crop in Laos is behind schedule with only about 44,100 hectares planted, well
below the 126,000 target for this time. Poor irrigation systems and alternative cash crops are the cause.
Iraq purchased about 70,000 tons of rice from Argentina and about 30,000 tons of rice from Uruguay.
Iraq received an offer of $1,479 per ton CIF for at least 15,000 tons of Indian basmati rice in its tender which
closed February 2.
South Korea will purchase about 78,334 tons of non-glutinous rice in an international tender with applications
due February 20.
Italy will consider a new bill to update its rice labeling system. The current bill was instituted in 1958, and
millers and seed breeders are disagreeing about the changes recommended this month.
Rice farmers in Bangladesh have voiced concerns that increasing production costs and a bumper crop will lead
to decreased returns this year. Rice production in Bangladesh is expected to increase for MY 2013-14 to about
34.59 million tons, an increase of about 2% from MY 2012-13.

The USDA Post in Australia predicts that rice production there will be around 653,000 tons (basis milled) in
the marketing year 2013-14, about 4% less than earlier predictions and about 22% less than the previous year‘s
production.
Tags: Oryza White Rice Index (WRI)

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Oryza Global Rice Quotes
February 7th, 2014
Long grain white rice - high quality
Thailand 100% B grade
450-460
Vietnam 5% broken 400-410
↔
India 5% broken
410-420
↔
Pakistan 5% broken 390-400
↔
Cambodia 5% broken 450-460
↔
U.S. 4% broken
575-585
↔
Uruguay 5% broken 625-635
↔
Argentina 5% broken 625-635
↔

↔

Long grain white rice - low quality
Thailand 25% broken 390-400
↔
Vietnam 25% broken 375-385
↔
Pakistan 25% broken 345-355
↔
Cambodia 25% broken
420-430
India 25% broken
355-365
↔
U.S. 15% broken
550-560
↔

↔

Long grain parboiled rice
Thailand parboiled 100% stxd
450-460
Pakistan parboiled 5% broken stxd 405-415
India parboiled 5% broken stxd
395-405
U.S. parboiled 4% broken
660-670
↔
Brazil parboiled 5% broken 590-600
↔
Uruguay parboiled 5% broken
NQ ↔

↓
↔
↔

Long grain fragrant rice
Thailand Hommali 92%
945-955
Vietnam Jasmine
555-565
↔

↔

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India basmati 2% broken
1515 -1525
Pakistan basmati 2% broken NQ ↔
Cambodia Phka Malis 895-905
↔

↔

Brokens
Thailand A1 Super
310-320
↔
Vietnam 100% broken
355-365
Pakistan 100% broken stxd 320-320
Cambodia A1 Super 365-375
↔
India 100% Broken stxd
295-305
Egypt medium grain brokens NQ ↔
U.S. pet food 470-480
↔
Brazil half grain
345-355
↔

↔
↔
↔

Medium grain milled
U.S. Calrose 4% broken
Egypt medium grain 6%

620-630
NQ ↔

↔

All prices USD per ton, FOB vessel, oryza.com

For Advertising SPECS & RATES

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

Cell # 92 321 369 2874

10th february 2014 daily global rice e newsletter by riceplus magazine

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10th february 2014 daily global rice e newsletter by riceplus magazine