Executive Summary
On July 20, the Federal Service for Veterinary and Phytosanitary Surveillance of the Russian
Federation (VPSS) lifted the ban on Indian rice imports, although all imports must be
certified by Shriramsky Research Institute, the only Indian laboratory approved by VPSS.
Following the suspension of all rice imports in December 20061, renewal of imports from the
major traditional suppliers has depended on the VPSS’ country-by-country inspections of rice
production and handling chains. Imports remain banned from all countries that have not
consented to VPSS’ request to inspect their domestic rice production, transportation, storage,
and handling, including lists of chemicals, norms of application and practices of certification
of these chemicals by the government agencies. In January – May 2007, Russia imported
67,000 metric tons of rice, compared with 172,000 metric tons during the same period last
year. Along with the reduced rice import volumes, the number of suppliers decreased
significantly, with those granted market access depending entirely on VPSS’ inspections and
goodwill, as is demonstrated by the charts on page five of this report. Experts estimate that
the average price of rice in the domestic market increased by 30 percent compared with
prices in 2006. Furthermore, some types of rice, especially premium quality varieties,
disappeared from the market completely. Total 2007 rice imports are forecast to fall 50
percent from the previous year to 180,000 metric tons2.
Rice imports from the United States have been banned since September 2006.
Chronology of VPSS’ Activities Related to Rice Imports
In January – May 2006 rice was exported to Russia from twenty countries, with China, India,
Vietnam, Pakistan and Thailand as the main suppliers. In January – May 2007, fewer than
ten countries exported rice to Russia, with Thailand, Kazakhstan, India and Pakistan
accounting for more than 98 percent of the trade. Imports of rice from Vietnam and China
have almost ceased. The chronology of VPSS’ relations with the remaining supplying
countries, and monthly fluctuations in rice imports are discussed below.
China
According to the Russian press, Chinese authorities expressed willingness to invite VPSS
specialists to China in order to become acquainted with their phytosanitary service, but the
Chinese side required more precise information on the matter. Chinese rice exports to Russia
ceased in December 2006, and have not yet resumed. Chinese rice exports to other markets
have increased.
Vietnam
Vietnam has reportedly not responded to VPSS’ request for inspections, and their rice
exports to Russia have stopped completely. However, Vietnam is reportedly not in a hurry to
renew exports to Russia, due to tight supplies and export commitments to its Asian
customers.
Pakistan
In March 2007, VPSS detained a rice shipment from Pakistan ostensibly due to Khapra beetle
infestation, and VPSS banned imports of all plant products from Pakistan. Russian
authorities reported their intent to visit Pakistan for inspections. However, Pakistan’s
government reportedly cannot pay for the travel, and inspections have not yet taken place.
Rice trade with Pakistan was officially discontinued.
Thailand
Thailand was the first country for VPSS’s rice chain inspection.
In late November 2006, VPSS announced that Russia might ban rice imports from Thailand
because when it detected that pesticides exceeded 2.3 times the maximum allowable limit in
a 375 metric ton shipment to Omsk oblast.
On December 24, 2006, Sergey Dankvert, Head of VPSS, informed the Russian press that a
team of Russian inspectors had flown to Thailand for a week to study rice production and
methods of laboratory testing of rice. On January 10, 2007, Dankvert informed the press
that henceforth every lot of rice shipped from Thailand would be accompanied by certified
test results from one Thai government laboratory that had been accredited by VPSS.
Dankvert added that rice would be accepted from processing facilities that have been
inspected and approved by Russian inspectors.
India
On February 23, 2007, VPSS concluded inspection of India’s rice production and handling
chain, and demanded that India arrange for documentation to accompany each lot of rice,
showing whic h pesticides, in what doses, and what dates were used during the growing
season. VPSS allowed Indian rice imports into Russia with certificates from one authorized
laboratory (Sriramsky Research Institute), but warned that if this condition was not met, rice
imports might be halted May 1. In order to continue rice exports to Russia, VPSS required
that India must, “organize… their work regarding rice exports to Russia in such a way that
every shipment is accompanied by documented information about use of pesticides in the
growing and storing of rice, with doses applied and the date of the latest application.”
On April 29, 2007, VPSS imposed temporary restrictions on rice imports from India beginning
May 1, 2007, because India did not provide the required information on pesticide use and
government control of rice production.
In June 2007, VPSS banned import of rice, peanuts, and sesame seeds from India. All
licenses and permits previously issued were cancelled. Data on rice imports in June are not
yet available, but according to sources, these volumes were very small.
On July 25, VPSS published on its website that on July 10, 2007, VPSS and Indian
government authorities signed Minutes on their meeting relating to creation of a system of
safety control and guarantees for rice shipped from India to Russia. Based on these Minutes,
VPSS lifted the ban on imports of Indian rice. According to VPSS’ press-release, “rice,
shipped from India after July 20, 2007, is imported to the territory of the Russian Federation
based on the results of control-surveying measures on availability of valid import quarantine
permits, certificates, confirming safety of rice and quality, issued by Indian Shriramsky
Research Institute, and phytosanitary certificates.” According to the press, approbation of
other Indian laboratories for issuance of safety certificates for rice can be expected after
another VPSS examination trip to India.
Tuesday, 31 July 2007
Weak Dollar, Iran Send Price of Basmati Rice Up
Basmati rice prices have soared to historic highs in Saudi Arabia due to a decrease in supply from the previous harvest.
Manar Al-Baroudi, marketing manager of Tilda Company in Saudi Arabia, said the arrival of the Indian crop in October saw anxious buying activity amid low global stock levels.
“Initial panic buying led to traditional Basmati prices rising quickly to 30 percent over the previous season,” said Al-Baroudi. “Opening market prices started at 1,700 to 1,800 Indian rupees per quintal at auction. With such high prices many buyers remained cautious. However, by April prices at auction were soaring, achieving 2,200 Indian rupees per quintal. This represents an increase of 55 percent over 2005 prices.”
Al-Baroudi said that for Pusa & Super Basmati prices also climbed rapidly reaching 1,350 Indian rupees per quintal. This was 30 percent higher than last season and again buyers might have anticipated the market had peaked.
“In the space of approximately three weeks the value of the rupee appreciated by about 12 percent against the US dollar and this has now started to be reflected in the prices quoted by exporters,” Al-Baroudi said.
The situation in Pakistan is even more acute as rice shipments have rapidly declined and created shortages. According to market analysts, a widespread fear of an American food embargo has caused Iran to stockpile three years worth of consumption, paying in some cases almost double last year’s price. Most of the rice is being officially exported to Iran, but instances of smuggling have been reported by the English language daily Dawn.
An increase in the price of commodities has forced the government to ban the export of pulses from Pakistan. In the case of rice, prices in the local market have risen 50 to 75 percent and the country may soon be importing rice for the first time in its history to meet domestic demand.
With the next crop not due until November 2007 and the scarcity of Basmati, there will be increased incentives for unscrupulous traders to adulterate their rice with inferior and non-Basmati grains despite the fact this practice is outlawed in the European Union and other countries.
He added that price increases had already begun to filter through the supply chain on the back of the initial 30 percent rise observed at harvest time in October 2006.
Meanwhile, a report of the Ministry of Commerce and Industry a couple of days ago showed a rise in the prices of the major food items while the prices of red meat including locally-bred meat and sugar showed a slight fall in the second quarter of the year.
The consumer price index in the Kingdom rose by 0.2 percent in June compared to the previous month, the Saudi Press Agency reported. Because the riyal is pegged to the dollar, a weakening US currency can cause inflation in products and services, especially goods and services from the Euro zone.
Manar Al-Baroudi, marketing manager of Tilda Company in Saudi Arabia, said the arrival of the Indian crop in October saw anxious buying activity amid low global stock levels.
“Initial panic buying led to traditional Basmati prices rising quickly to 30 percent over the previous season,” said Al-Baroudi. “Opening market prices started at 1,700 to 1,800 Indian rupees per quintal at auction. With such high prices many buyers remained cautious. However, by April prices at auction were soaring, achieving 2,200 Indian rupees per quintal. This represents an increase of 55 percent over 2005 prices.”
Al-Baroudi said that for Pusa & Super Basmati prices also climbed rapidly reaching 1,350 Indian rupees per quintal. This was 30 percent higher than last season and again buyers might have anticipated the market had peaked.
“In the space of approximately three weeks the value of the rupee appreciated by about 12 percent against the US dollar and this has now started to be reflected in the prices quoted by exporters,” Al-Baroudi said.
The situation in Pakistan is even more acute as rice shipments have rapidly declined and created shortages. According to market analysts, a widespread fear of an American food embargo has caused Iran to stockpile three years worth of consumption, paying in some cases almost double last year’s price. Most of the rice is being officially exported to Iran, but instances of smuggling have been reported by the English language daily Dawn.
An increase in the price of commodities has forced the government to ban the export of pulses from Pakistan. In the case of rice, prices in the local market have risen 50 to 75 percent and the country may soon be importing rice for the first time in its history to meet domestic demand.
With the next crop not due until November 2007 and the scarcity of Basmati, there will be increased incentives for unscrupulous traders to adulterate their rice with inferior and non-Basmati grains despite the fact this practice is outlawed in the European Union and other countries.
He added that price increases had already begun to filter through the supply chain on the back of the initial 30 percent rise observed at harvest time in October 2006.
Meanwhile, a report of the Ministry of Commerce and Industry a couple of days ago showed a rise in the prices of the major food items while the prices of red meat including locally-bred meat and sugar showed a slight fall in the second quarter of the year.
The consumer price index in the Kingdom rose by 0.2 percent in June compared to the previous month, the Saudi Press Agency reported. Because the riyal is pegged to the dollar, a weakening US currency can cause inflation in products and services, especially goods and services from the Euro zone.
Vietnam Rice Prices Unchanged; New Export Deals Not Allowed
Vietnamese rice export prices were mostly unchanged in the week to Tuesday as local companies won't be allowed to sign new export contracts in order to maintain domestic food security, said traders.
"The government isn't allowing companies to sign new export contracts because they have signed contracts to sell 4.5 million tons of rice so far this year, meeting the export target set by the prime minister in January," said a state trader with the Vietnam Food Association in Ho Chi Minh City.
The trader noted that as exporters still have to deliver nearly 1.8 million tons of rice by the end of the year, the price of exportable rice is expected to remain high in the coming weeks.
The trader said the authorities will impose the export limit to maintain food security for the country, after farmers reported that their paddy fields across the country have been attacked by harmful pests.
"The government isn't allowing companies to sign new export contracts because they have signed contracts to sell 4.5 million tons of rice so far this year, meeting the export target set by the prime minister in January," said a state trader with the Vietnam Food Association in Ho Chi Minh City.
The trader noted that as exporters still have to deliver nearly 1.8 million tons of rice by the end of the year, the price of exportable rice is expected to remain high in the coming weeks.
The trader said the authorities will impose the export limit to maintain food security for the country, after farmers reported that their paddy fields across the country have been attacked by harmful pests.
USDA report on Thailand
Export prices declined by $2-5/MT due to the weakening Thai baht. Iran concluded deals last
week for 130,000 tons of white rice under the Government-to-Government contract and around
60,000 tons with private exporters. Iran will reportedly send their own vessels to acquire the rice
and avoid the ongoing issue of tight vessel schedules. Overall container costs remain high and are
expected to increase in the coming months.
week for 130,000 tons of white rice under the Government-to-Government contract and around
60,000 tons with private exporters. Iran will reportedly send their own vessels to acquire the rice
and avoid the ongoing issue of tight vessel schedules. Overall container costs remain high and are
expected to increase in the coming months.
Russia hints at lifting ban on Pakistani rice
Russia has hinted at lifting the import ban on Pakistani rice and mangoes as a formal notification is likely to be issued during the visit of a Pakistani delegation to Russia in the second week of August.
Floods cause damage to rice crop in Sindh
There are chances of further increase in prices of all varieties of rice in the coming weeks after it was officially confirmed that monsoon rains had damaged the crop severely in Sindh, sources told Dawn on Wednesday.
The data collected by Sindh government and sent to the federal ministry of food, agriculture and livestock (Minfal) revealed that the damage to the crops caused by floods had brought down production by 200,000 tons in the province.
Sources said the Minfal had expressed its concerns over such huge damages to the crop in Sindh. They said the crop had also been damaged in Balochistan.
The data collected by Sindh government and sent to the federal ministry of food, agriculture and livestock (Minfal) revealed that the damage to the crops caused by floods had brought down production by 200,000 tons in the province.
Sources said the Minfal had expressed its concerns over such huge damages to the crop in Sindh. They said the crop had also been damaged in Balochistan.
India Farm Ministry notifies evolved basmati variety for export
The Agriculture Ministry has notified “Improved Pusa Basmati-1” in a move to popularise this evolved variety for export and augmenting farmers’ income. In the face of the Commerce Ministry’s continued reluctance to remove the embargo of one traditional parent clause in the definition of basmati rice for notification purposes for export and its proposal to delete adherence to Seeds Act, 1966, the Agriculture Ministry has come up with this notification. The Ministry of Agriculture notified on July 20 Improved Pusa Basmati-1, an evolved variety developed by the Indian Agricultural Research Institute.
Pusa basmati-1 today accounts for more than 60 per cent of basmati rice exports from the country and is likely that the newly notified ‘improved Pusa Basmati-1’ would increasingly replace the extant “Pusa basmati-1” in the coming years in view of its improved quality and competitiveness.
Pusa basmati-1 today accounts for more than 60 per cent of basmati rice exports from the country and is likely that the newly notified ‘improved Pusa Basmati-1’ would increasingly replace the extant “Pusa basmati-1” in the coming years in view of its improved quality and competitiveness.
Asian Rice:Prices Flat In Quiet Trade On Strong Local Markets
Asian physical rice export prices were unchanged at lofty levels Friday amid quiet trade on high domestic prices in Thailand and Vietnam, exporters said.
In Thailand, local prices were at high levels despite the ongoing harvest of a major crop. "We don't expect local prices to fall as the government is expected to extend its price intervention program for paddy," one exporter said. The current price support program for paddy, intended to keep local prices at profitable levels for farmers, will end in July, the exporter added.
A stable baht has also been working to prevent any price movement, exporters said.
Any price changes in the coming weeks will depend largely on the exchange rate, they added.
Thai 100% grade B was offered steady Friday at $340-$341 a metric ton, FOB, Bangkok, 5% broken at $326-$332/ton and parboiled 100% sortexed was offered at $333-$342/ton.
In Vietnam, prices were also unchanged Friday, due to strong demand in the local market, exporters said.
In Thailand, local prices were at high levels despite the ongoing harvest of a major crop. "We don't expect local prices to fall as the government is expected to extend its price intervention program for paddy," one exporter said. The current price support program for paddy, intended to keep local prices at profitable levels for farmers, will end in July, the exporter added.
A stable baht has also been working to prevent any price movement, exporters said.
Any price changes in the coming weeks will depend largely on the exchange rate, they added.
Thai 100% grade B was offered steady Friday at $340-$341 a metric ton, FOB, Bangkok, 5% broken at $326-$332/ton and parboiled 100% sortexed was offered at $333-$342/ton.
In Vietnam, prices were also unchanged Friday, due to strong demand in the local market, exporters said.
Wednesday, 25 July 2007
Floods inflict heavy loss on rice crop
Pre-monsoon and fresh spells of heavy downpour in the main rice-growing areas of Sindh are estimated to have damaged nearly 20 per cent of the standing crop, while in three districts of Balochistan, reports could not be compiled as flood waters have not yet receded, says a report compiled by the Ministry of Food, Agriculture and Livestock (MINFAL).
The damage due to floods caused by heavy rains is also expected to hamper rice production by nearly 100,000 tonnes this year and the estimate might swell, said Ali Baksh, a resident of Jaffarababad.
Residents of the three districts of Balochistan rely heavily on the rice crop as a staple food and fodder, said Bakhsh, depicting a grim situation of the area. The three districts namely Naseerabad, Jaffarabad and Jhalmagsi in Balochistan are solely farming districts and their people poverty-ridden. These people are now left high and dry at the mercy of the elements and concerned authorities for food, shelter and medical relief and their miseries presently cannot be comprehended, said Baksh.
Rice in Sindh was targeted to be sown on 1.4 million acres while in the three districts of Balochistan, it was to be sown on half a million acres; overall targeted cultivation was 2.5 million hectares with an estimated harvest of 5.7 million tons for 2007-08.
The damage due to floods caused by heavy rains is also expected to hamper rice production by nearly 100,000 tonnes this year and the estimate might swell, said Ali Baksh, a resident of Jaffarababad.
Residents of the three districts of Balochistan rely heavily on the rice crop as a staple food and fodder, said Bakhsh, depicting a grim situation of the area. The three districts namely Naseerabad, Jaffarabad and Jhalmagsi in Balochistan are solely farming districts and their people poverty-ridden. These people are now left high and dry at the mercy of the elements and concerned authorities for food, shelter and medical relief and their miseries presently cannot be comprehended, said Baksh.
Rice in Sindh was targeted to be sown on 1.4 million acres while in the three districts of Balochistan, it was to be sown on half a million acres; overall targeted cultivation was 2.5 million hectares with an estimated harvest of 5.7 million tons for 2007-08.
Vietnam Rice Prices Unchanged On Government Export Limits
Vietnamese rice export prices were mostly unchanged in the week to Tuesday as local companies have stopped offering new export contracts after Vietnam met its export target for the year, traders said.
Russia Resumes Rice Imports From India
Russia Friday resumed rice imports from India, the federal food quality watchdog Rosselkhoznadzor said Monday.
Rosselkhoznadzor said it had resumed issuing import quarantine certificates for Indian rice after signing a protocol with the Indian authorities providing for a system that ensures health safety of rice exported to Russia.
Russia banned Indian rice imports on June 5 because of numerous infringements of health safety regulations by Indian rice growers and exporters. Russian experts have since visited India and inspected the use of pesticides, the conditions of rice storage, and the work of Indian laboratories.
India is the third largest supplier of rice to Russia. Russia consumes 650,000 metric tons of rice a year, with 350,000 tons imported. India supplied in 2006 48,000 tons of rice to Russia, 14.2% of Russia's total rice import.
Rosselkhoznadzor said it had resumed issuing import quarantine certificates for Indian rice after signing a protocol with the Indian authorities providing for a system that ensures health safety of rice exported to Russia.
Russia banned Indian rice imports on June 5 because of numerous infringements of health safety regulations by Indian rice growers and exporters. Russian experts have since visited India and inspected the use of pesticides, the conditions of rice storage, and the work of Indian laboratories.
India is the third largest supplier of rice to Russia. Russia consumes 650,000 metric tons of rice a year, with 350,000 tons imported. India supplied in 2006 48,000 tons of rice to Russia, 14.2% of Russia's total rice import.
Thai Rice Prices Down; Weakening Baht, Softer Local Market
Thai rice prices were lower in the week to Monday amid lackluster trade on a weakening baht and soft local market. However, prices are still high, keeping buyers away from the market,
exporters said.
"The exchange rate is getting better this week. Any change in prices will depend on the currency," said a Bangkok-based exporter. The Thai baht is likely to continue softening in the near term as the market awaits full details of new measures by the Cabinet tomorrow to curb the baht's recent strength. "The baht has gone very strong and the government needs to consider measures to protect us," another exporter said. The move comes after the baht hit a 10-year high against the U.S. dollar earlier this month.
In the local market, paddy prices were lower as fresh supply started to pour in, with no new orders for Thai rice partly because of the lack of confidence in the baht, exporters said.
However, local price discounts weren't enough to substantially reduce export prices due to the strong currency, they said.
Only regular buyers such as China and Iran have remained in the market. China
is a regular buyer of high-quality jasmine rice from Thailand.
Monday, Thai 100% grade B was offered at $340-$343 a metric ton, FOB Bangkok, compared with $347-$351 last week. 5% broken rice was offered at $336/ton, versus $337-$340/ton last week. Parboiled 100% sortexed was offered at $338-$339/ton, compared with around
$342 much of last week.
exporters said.
"The exchange rate is getting better this week. Any change in prices will depend on the currency," said a Bangkok-based exporter. The Thai baht is likely to continue softening in the near term as the market awaits full details of new measures by the Cabinet tomorrow to curb the baht's recent strength. "The baht has gone very strong and the government needs to consider measures to protect us," another exporter said. The move comes after the baht hit a 10-year high against the U.S. dollar earlier this month.
In the local market, paddy prices were lower as fresh supply started to pour in, with no new orders for Thai rice partly because of the lack of confidence in the baht, exporters said.
However, local price discounts weren't enough to substantially reduce export prices due to the strong currency, they said.
Only regular buyers such as China and Iran have remained in the market. China
is a regular buyer of high-quality jasmine rice from Thailand.
Monday, Thai 100% grade B was offered at $340-$343 a metric ton, FOB Bangkok, compared with $347-$351 last week. 5% broken rice was offered at $336/ton, versus $337-$340/ton last week. Parboiled 100% sortexed was offered at $338-$339/ton, compared with around
$342 much of last week.
LIBERIA: Too few rice seeds to sow
ONROVIA , 19 July 2007 (IRIN) - The difficulty in acquiring seed rice during the current planting season is having a negative effect on rice farming in rural Liberia where there has been a massive return of former internally displaced persons and refugees, agriculture officials told IRIN.
"One major problem affecting rice farming in Liberia after years of conflict is the availability of seed rice. Most often the seeds do not reach the farmers in time because we had to import them, since we are not producing them here", Liberia's Agriculture Minister Chris Toe said.
Toe said farmers should normally receive seed rice in February ahead of the rainy season.
"But because farmers receive the seed rice in June or July at the start of the rainy season, they find it difficult to plant during this period and, as a result, rice production is now on a lower scale", Toe said.
Rice is the staple diet in Liberia. However, rice planting is most commonly left to local farmers. Agriculture Ministry statistics indicate there is heavy reliance on small-scale subsistence farmers.
Joseph Boiwu, assistant representative of the UN Food and Agriculture Organization (FAO) in Liberia, told IRIN delays in getting seed rice to farmers, who are mostly returnees from displaced persons' and refugee camps, were due to logistical constraints with regard to importation.
Seed rice from Sierra Leone
"The FAO had to start importing 2,600 metric tonnes of seed rice from neighboring Sierra Leone in April this year. By June we completed transporting the seed rice to Liberia by trucks and ship… Far less than 600 tonnes were purchased locally", Boiwu said.
Boiwu said: "All stakeholders in the agriculture sector in Liberia reached a decision to ration seed rice; farmers are entitled to 25kg for each acre [2.4 hectares] of land."
Toe said, however, that the standard amount of seed rice required per 2.4 hectares is 1.2 metric tonnes.
Olun Kamitatu of Catholic Relief Service (CRS) in Liberia said in some instances there was a "seed rice shortfall" for local farmers before the planting season began.
"The problem existed in 2006… When the Ministry of Agriculture and non-governmental organisations plan to distribute seed rice to farmers, there is always a shortfall," she said.
Blame
Local farmers blame the delay in obtaining seed rice on the failure of the Agriculture Ministry and NGOs to plan ahead.
Boima Seh, a local rice farmer in Klay, Bomi County, 35km northwest of the capital, Monrovia, said: "Had the Agriculture Ministry and NGOs planned properly to get the seed rice to us during the dry season [around January or February] we would not have had this problem."
"I am to get my share of rice seed at the end of July, but how am I supposed to plant it? The rain has already started. My four acres [9.6 hectares] of land is wet at the moment."
John Jukon, head of a local group of rural farmers called Farmers Against Hunger, said: "Most of the farmers have begun eating their seed rice since they are unable to plant now".
"No one should expect a good rice season this year… Most farmers are upset by the delay in getting the seed rice," Jukon told IRIN.
Seed rice propagation sites
Toe said the government, in partnership with international donors, is establishing seed rice multiplication sites in all 15 counties of Liberia.
"The process has already started and we are hoping that by next year our farmers will have enough seed and we will not have to rely on imported seed, which would most likely be delayed due to transportation constraints," Toe said.
FAO statistics indicate there are currently 109 multiplication sites across the country.
Boiwu said FAO also hoped farmers would utilise the present seed consignment to ensure they had sufficient for the next planting season.
Kamitatu of CRS agreed that multiplication sites could resolve the problem.
"These sites would allow farmers to easily access seed rice at the community level", she said.
According to a Comprehensive Food Security and Nutrition Survey - jointly conducted by the Liberian government, international NGOs and the UN and released in September 2006 - 55 percent of farmers in 375 rural communities purchased their own seed rice for the 2006 planting season. Only 19 percent relied on seed rice from donors.
"One major problem affecting rice farming in Liberia after years of conflict is the availability of seed rice. Most often the seeds do not reach the farmers in time because we had to import them, since we are not producing them here", Liberia's Agriculture Minister Chris Toe said.
Toe said farmers should normally receive seed rice in February ahead of the rainy season.
"But because farmers receive the seed rice in June or July at the start of the rainy season, they find it difficult to plant during this period and, as a result, rice production is now on a lower scale", Toe said.
Rice is the staple diet in Liberia. However, rice planting is most commonly left to local farmers. Agriculture Ministry statistics indicate there is heavy reliance on small-scale subsistence farmers.
Joseph Boiwu, assistant representative of the UN Food and Agriculture Organization (FAO) in Liberia, told IRIN delays in getting seed rice to farmers, who are mostly returnees from displaced persons' and refugee camps, were due to logistical constraints with regard to importation.
Seed rice from Sierra Leone
"The FAO had to start importing 2,600 metric tonnes of seed rice from neighboring Sierra Leone in April this year. By June we completed transporting the seed rice to Liberia by trucks and ship… Far less than 600 tonnes were purchased locally", Boiwu said.
Boiwu said: "All stakeholders in the agriculture sector in Liberia reached a decision to ration seed rice; farmers are entitled to 25kg for each acre [2.4 hectares] of land."
Toe said, however, that the standard amount of seed rice required per 2.4 hectares is 1.2 metric tonnes.
Olun Kamitatu of Catholic Relief Service (CRS) in Liberia said in some instances there was a "seed rice shortfall" for local farmers before the planting season began.
"The problem existed in 2006… When the Ministry of Agriculture and non-governmental organisations plan to distribute seed rice to farmers, there is always a shortfall," she said.
Blame
Local farmers blame the delay in obtaining seed rice on the failure of the Agriculture Ministry and NGOs to plan ahead.
Boima Seh, a local rice farmer in Klay, Bomi County, 35km northwest of the capital, Monrovia, said: "Had the Agriculture Ministry and NGOs planned properly to get the seed rice to us during the dry season [around January or February] we would not have had this problem."
"I am to get my share of rice seed at the end of July, but how am I supposed to plant it? The rain has already started. My four acres [9.6 hectares] of land is wet at the moment."
John Jukon, head of a local group of rural farmers called Farmers Against Hunger, said: "Most of the farmers have begun eating their seed rice since they are unable to plant now".
"No one should expect a good rice season this year… Most farmers are upset by the delay in getting the seed rice," Jukon told IRIN.
Seed rice propagation sites
Toe said the government, in partnership with international donors, is establishing seed rice multiplication sites in all 15 counties of Liberia.
"The process has already started and we are hoping that by next year our farmers will have enough seed and we will not have to rely on imported seed, which would most likely be delayed due to transportation constraints," Toe said.
FAO statistics indicate there are currently 109 multiplication sites across the country.
Boiwu said FAO also hoped farmers would utilise the present seed consignment to ensure they had sufficient for the next planting season.
Kamitatu of CRS agreed that multiplication sites could resolve the problem.
"These sites would allow farmers to easily access seed rice at the community level", she said.
According to a Comprehensive Food Security and Nutrition Survey - jointly conducted by the Liberian government, international NGOs and the UN and released in September 2006 - 55 percent of farmers in 375 rural communities purchased their own seed rice for the 2006 planting season. Only 19 percent relied on seed rice from donors.
Thailand Jan 1-Jul 11 Rice Exports 4.29M Tons,+10.2% On Year
Thailand's rice exports from Jan. 1 to July 11 rose 10.2% on year to 4.29 million metric tons, the Commerce Ministry's Department of Foreign Trade said Friday. Rice exports from July 1-11 totaled 218,177 tons, up 26.7% on year.
The Department of Foreign Trade didn't provide a reason for the increase in exports.
Thailand is the world's largest rice exporter.
The Department of Foreign Trade didn't provide a reason for the increase in exports.
Thailand is the world's largest rice exporter.
US promoting Calrose in Japan
Japan opened its rice market only in 1995, and the government still tightly controls the inflow of foreign rice, keeping tariffs for rice at 770%.
Most of the 770,000 tons of rice Japan imports a year end up as foreign aid, processed for crackers or sitting in storage. Only a small amount reaches consumers in restaurants and supermarkets.
Recently, U.S. rice has been losing to cheaper Chinese rice, tumbling in market share from 70% of Japan's foreign rice a decade ago to 20%, according to the federation. "If given a fair opportunity in the Japanese market, Calrose rice will be accepted and successful," said USA Rice Federation official Christopher Crutchfield.
Most of the 770,000 tons of rice Japan imports a year end up as foreign aid, processed for crackers or sitting in storage. Only a small amount reaches consumers in restaurants and supermarkets.
Recently, U.S. rice has been losing to cheaper Chinese rice, tumbling in market share from 70% of Japan's foreign rice a decade ago to 20%, according to the federation. "If given a fair opportunity in the Japanese market, Calrose rice will be accepted and successful," said USA Rice Federation official Christopher Crutchfield.
Iraq Issues New Tender To Buy Rice
The Iraqi government has issued a new tender to buy rice, the Grain Board of Iraq said Wednesday.
It set the closing date for receiving bids from companies at 1000 GMT July 25. It didn't specify quantity, but according to the Iraqi Ministry of Trade, Baghdad needs to buy 1 million metric tons of rice every year.
Separately, a statement by the Ministry of Trade said two vessels laden with around 102,000 tons of Canadian hard wheat are expected to anchor at Um Qasr port in southern Iraq shortly. It gave no further details.
Iraq has issued several tenders to buy hard wheat and rice over the last few weeks as its stocks are running out, according to Iraqi traders. They said the Grain Board of Iraq found it difficult to conclude deals with international companies to buy the two commodities because of soaring prices.
Iraq needs to buy at least 3 million tons of hard wheat every year.
It set the closing date for receiving bids from companies at 1000 GMT July 25. It didn't specify quantity, but according to the Iraqi Ministry of Trade, Baghdad needs to buy 1 million metric tons of rice every year.
Separately, a statement by the Ministry of Trade said two vessels laden with around 102,000 tons of Canadian hard wheat are expected to anchor at Um Qasr port in southern Iraq shortly. It gave no further details.
Iraq has issued several tenders to buy hard wheat and rice over the last few weeks as its stocks are running out, according to Iraqi traders. They said the Grain Board of Iraq found it difficult to conclude deals with international companies to buy the two commodities because of soaring prices.
Iraq needs to buy at least 3 million tons of hard wheat every year.
Vietnam suspends signing of new rice export contracts
Under the regulation issued by the Government and the Ministry of Trade, rice exporters must register their contracts with VFA for confirmation, but the association has stopped dealing with rice export contracts since last weekend.
"The Government has not ordered a stop to rice export. However, the VFA must wait for instructions from the Government because the signed contracts have reached this year's target of 4.5mil tons," said Nguyen Thi Nguyet, secretary general of VFA.
She added that the Government would consider the issue in September and would make a decision after scrutinizing a survey on the country's rice production by the Ministry of Trade and the Ministry of Agriculture and Rural Development.
"The Government has not ordered a stop to rice export. However, the VFA must wait for instructions from the Government because the signed contracts have reached this year's target of 4.5mil tons," said Nguyen Thi Nguyet, secretary general of VFA.
She added that the Government would consider the issue in September and would make a decision after scrutinizing a survey on the country's rice production by the Ministry of Trade and the Ministry of Agriculture and Rural Development.
Indo-Pak basmati registration to take time
India is unlikely to find it easy clinching registration of geographical indication (GI) for basmati rice jointly with Pakistan, even if the process were to be speeded up.
Irked over a type of basmati called Super Basmati being exported by India to the EU, Pakistan’s Basmati Growers’ Association, has reportedly sought permission from Pakistan’s commerce minister Humayun Akhtar Khan to file a separate petition in New Delhi challenging the relevant notification of the Indian commerce department. That notification was issued on May 24, 2006 and approves the export of the Super basmati from India.
The alleged loss to Pakistani exports is $300-$500 million as a result of Indian traders exporting the Super variety. In December 2005, the Pakistani BGA applied for GI registration of Basmati to the trade mark registrar at Karachi.
However, according to reports in the Pakistani media, Rice Exporters’ Association of Pakistan opposed this, making India hopeful of a joint Indo-Pak registration of GI. In May, Commerce minister Kamal Nath asked Pakistan to speed up the process of joint filing for a GI for basmati.
He then wrote to the Pakistan government, seeking information from the neighbouring country on the locations to register the GI application, stating that India had already chosen members of the joint taskforce, while Pakistan had yet to do that. Pakistan has not enacted a legislation on GI, he pointed out.
The implication of Mr Nath’s letter was that Pakistan was dragging its feet on the issue because its basmati exports world-wide had taken a drubbing from India, particularly in the EU, due to its superior quality.
Irked over a type of basmati called Super Basmati being exported by India to the EU, Pakistan’s Basmati Growers’ Association, has reportedly sought permission from Pakistan’s commerce minister Humayun Akhtar Khan to file a separate petition in New Delhi challenging the relevant notification of the Indian commerce department. That notification was issued on May 24, 2006 and approves the export of the Super basmati from India.
The alleged loss to Pakistani exports is $300-$500 million as a result of Indian traders exporting the Super variety. In December 2005, the Pakistani BGA applied for GI registration of Basmati to the trade mark registrar at Karachi.
However, according to reports in the Pakistani media, Rice Exporters’ Association of Pakistan opposed this, making India hopeful of a joint Indo-Pak registration of GI. In May, Commerce minister Kamal Nath asked Pakistan to speed up the process of joint filing for a GI for basmati.
He then wrote to the Pakistan government, seeking information from the neighbouring country on the locations to register the GI application, stating that India had already chosen members of the joint taskforce, while Pakistan had yet to do that. Pakistan has not enacted a legislation on GI, he pointed out.
The implication of Mr Nath’s letter was that Pakistan was dragging its feet on the issue because its basmati exports world-wide had taken a drubbing from India, particularly in the EU, due to its superior quality.
Successful negotiation for expansion of jasmine rice market in China
A negotiation for an expansion of Hom Mali or fragrant rice and rice product market in China has been successful more than expected, according to Thailand's Foreign Trade Department.
Apiradi Tantraporn, the department’s director-general, said she had recently assigned her deputy Vijak Visetnoi to take a team of trade representatives to Xiamen, a coastal city in southeastern Fujian province of China, for the negotiation to expand the fragrant rice and rice product market there.
During the trip, many activities had been conducted to promote consumption and distribution of Thai jasmine rice in Wal-Mart Department Store.
In addition, an exhibition of the fragrant rice was organised in the city where rice ambassadors and media members paid much attention to the rice and its products such as rice oil and noodles. It led to a signing of six contracts with Chinese importers.
In the first five months of this year, Thailand’s rice exports totaled 3.3 million tonnes. Of this, 1.19 million tonnes are jasmine rice.
The rice exports to China totaled 174,894 tonnes. Of this, 118,059 tonnes are jasmine rice.
Apiradi Tantraporn, the department’s director-general, said she had recently assigned her deputy Vijak Visetnoi to take a team of trade representatives to Xiamen, a coastal city in southeastern Fujian province of China, for the negotiation to expand the fragrant rice and rice product market there.
During the trip, many activities had been conducted to promote consumption and distribution of Thai jasmine rice in Wal-Mart Department Store.
In addition, an exhibition of the fragrant rice was organised in the city where rice ambassadors and media members paid much attention to the rice and its products such as rice oil and noodles. It led to a signing of six contracts with Chinese importers.
In the first five months of this year, Thailand’s rice exports totaled 3.3 million tonnes. Of this, 1.19 million tonnes are jasmine rice.
The rice exports to China totaled 174,894 tonnes. Of this, 118,059 tonnes are jasmine rice.
Pakistan falls 3% short of rice export target
Pakistan fell short to achieve the rice export target for the fiscal year 2006-07 due to the low production and non-availability of surplus quantity for exports.
The export target for 2006-07 was fixed at $1.27 billion but only $1.2 billion was achieved reflecting a loss of $7 million. While the export target for 2005-06 was $1 billion and $1.5 billion was achieved, resulting in an increase of $5 million.
During the fiscal year 2006-07 the export of rice went down by 4,00,000 tonnes in terms of quantity and 3 percent value wise, Chairman of the Rice Exporters Association of Pakistan (REAP) Aziz Maniya said. Mr Maniya said that the next rice export fiscal year target would be easily achieved if the weather and water supply conditions remain feasible.
In the last fiscal year around 2.3 million tonnes of rice was exported. The short crop is the main reason for not achieving the target, although the exporters have still managed to emerge good results, he added. Mr Mania said it is expected that for this year the government will set a target of $1.35 as compared to $1.27 billion target of 2006-2007.
According to Chairman REAP, this year the average price of basmati is $1,100 per tonne, rising from $650 per ton last year from November 2006. Similarly, IRRI-6 is exported at $300 per tonne which was $215 per tonne at the start of the season,” he added.
This year a large quantity of Basmati rice was exported in UAE and Iran while IRRI-6 was exported in African countries, as exports this year have increased to Iran, both through formal and informal channels, he added.
This year a six percent shortage has been recorded in rice production globally. Since November 2006, the international prices of Basmati rice have surged by 35 to 40 percent due to crop shortage in leading rice producing countries. As in this season China, Thailand, Vietnam, India and Sri Lanka have reported crop shortage particularly in coarse rice.
Due to the increase in demand the price is rapidly rising in the international market and Pakistani exporters are exporting those stocks as well that should have been sold locally that is why the local prices are rising.
Previously price of Super Basmati was Rs 40 per kg, Irri-9 from Rs 25 to Rs 30 and Irri-6 from Rs 18 to Rs 20. Currently Super Basmati is being sold at Rs 65-75 per kg, Irri-9 from Rs 35 to Rs 42 and Irri-6 for Rs 24-30.
In East European region Indian has a very strong hold and to compete them Rice Exporters Association of Pakistan (REAP) has to work hard as in the international market every year demand of Basmati rice is rapidly increasing. Some rice traders dealing in domestic grain market complained that unchecked exports of rice had created shortage in the domestic market, and this had pushed up prices. Currently, all rice exports are handled by the private sector, which exported more than three million tonnes because of lower production in India, Pakistan’s main competitor.
The export target for 2006-07 was fixed at $1.27 billion but only $1.2 billion was achieved reflecting a loss of $7 million. While the export target for 2005-06 was $1 billion and $1.5 billion was achieved, resulting in an increase of $5 million.
During the fiscal year 2006-07 the export of rice went down by 4,00,000 tonnes in terms of quantity and 3 percent value wise, Chairman of the Rice Exporters Association of Pakistan (REAP) Aziz Maniya said. Mr Maniya said that the next rice export fiscal year target would be easily achieved if the weather and water supply conditions remain feasible.
In the last fiscal year around 2.3 million tonnes of rice was exported. The short crop is the main reason for not achieving the target, although the exporters have still managed to emerge good results, he added. Mr Mania said it is expected that for this year the government will set a target of $1.35 as compared to $1.27 billion target of 2006-2007.
According to Chairman REAP, this year the average price of basmati is $1,100 per tonne, rising from $650 per ton last year from November 2006. Similarly, IRRI-6 is exported at $300 per tonne which was $215 per tonne at the start of the season,” he added.
This year a large quantity of Basmati rice was exported in UAE and Iran while IRRI-6 was exported in African countries, as exports this year have increased to Iran, both through formal and informal channels, he added.
This year a six percent shortage has been recorded in rice production globally. Since November 2006, the international prices of Basmati rice have surged by 35 to 40 percent due to crop shortage in leading rice producing countries. As in this season China, Thailand, Vietnam, India and Sri Lanka have reported crop shortage particularly in coarse rice.
Due to the increase in demand the price is rapidly rising in the international market and Pakistani exporters are exporting those stocks as well that should have been sold locally that is why the local prices are rising.
Previously price of Super Basmati was Rs 40 per kg, Irri-9 from Rs 25 to Rs 30 and Irri-6 from Rs 18 to Rs 20. Currently Super Basmati is being sold at Rs 65-75 per kg, Irri-9 from Rs 35 to Rs 42 and Irri-6 for Rs 24-30.
In East European region Indian has a very strong hold and to compete them Rice Exporters Association of Pakistan (REAP) has to work hard as in the international market every year demand of Basmati rice is rapidly increasing. Some rice traders dealing in domestic grain market complained that unchecked exports of rice had created shortage in the domestic market, and this had pushed up prices. Currently, all rice exports are handled by the private sector, which exported more than three million tonnes because of lower production in India, Pakistan’s main competitor.
Basmati price increase in the Gulf
For some time UAE importers of rice have been seeking retail price increases to reflect increases in wholesale prices.
The Ministry of Economy said it would not condone any substantial increases as it was an important part of most people's diet. According to importers, the price of Basmati rice from India and Pakistan was becoming prohibitive and as such importers were threatening to stop bringing in this most popular of all varieties of rice.
The Ministry of Economy said it would not condone any substantial increases as it was an important part of most people's diet. According to importers, the price of Basmati rice from India and Pakistan was becoming prohibitive and as such importers were threatening to stop bringing in this most popular of all varieties of rice.
Wednesday, 18 July 2007
Pakistan's Rice Production Seen Falling 2 PCT Next Fiscal Yr
Pakistan's rice production in the next financial year 2007-08 has been estimated to fall 2 per cent to 5.4 million tons from 5.5 million in the current fiscal year.
The Food & Agriculture Ministry has taken several incentives to boost rice production in the country especially Basmati.
There is rising demand for Basmati across the world for its fragrance and good taste.
The area under Basmati cultivation increased by 1489.0 million hectares with 2666.40 million tons production estimated this year as compared to total area of 1474.24 million hectare and total production of 2493 million tons in fiscal 2006-07.
Per hectare yield rose from 2209kg per hectare to 2442kg per hectare.
The Food & Agriculture Ministry has taken several incentives to boost rice production in the country especially Basmati.
There is rising demand for Basmati across the world for its fragrance and good taste.
The area under Basmati cultivation increased by 1489.0 million hectares with 2666.40 million tons production estimated this year as compared to total area of 1474.24 million hectare and total production of 2493 million tons in fiscal 2006-07.
Per hectare yield rose from 2209kg per hectare to 2442kg per hectare.
USDA report on Thai rice
Despite a slight domestic price slowdown from increasing second-crop harvest supplies, export
prices for most grades of rice rose by $2-3/MT due to the continued strengthening Thai Baht.
The Thai Baht reached a new high of 33.7 baht/$U.S., as compared to the strengthening 34
baht/$U.S. last week. Iran and Iraq are still buying Thai rice regularly, but import demand from
African and European countries has been quiet due to concerns over high freight costs. Current
freight costs of bulk vessels, particularly to African countries, are still high despite a recent 10
percent cost reduction from the previous week. Although freight costs for container vessels
seasonally increase by almost double, particularly to Europe, freight costs this year remain much
higher. Trade sources allege vessel owners are attempting take advantage of the relative high
demand for their vessels.
prices for most grades of rice rose by $2-3/MT due to the continued strengthening Thai Baht.
The Thai Baht reached a new high of 33.7 baht/$U.S., as compared to the strengthening 34
baht/$U.S. last week. Iran and Iraq are still buying Thai rice regularly, but import demand from
African and European countries has been quiet due to concerns over high freight costs. Current
freight costs of bulk vessels, particularly to African countries, are still high despite a recent 10
percent cost reduction from the previous week. Although freight costs for container vessels
seasonally increase by almost double, particularly to Europe, freight costs this year remain much
higher. Trade sources allege vessel owners are attempting take advantage of the relative high
demand for their vessels.
Baht and freight cause concern amongst Thai exporters
Thai rice prices were up sharply in the week to Monday, as a strong baht worked to boost prices and keep offers at high levels, exporters said.
"The exchange rate is the main problem. It's getting bad for the exporters as prices are about $10 a (metric) ton higher today free on board basis from a week ago," an executive at a large exporting firm said. "We're unlikely to make any new deals at current lofty prices. Buyers are running away to Vietnam or adopting a wait-and-see stance," the executive said. The U.S. dollar last week weakened to THB33.18, the U.S. unit's lowest level since August 1997.
Exporters also expressed concerns over rising freight rates caused by a shortage of vessels and a stronger baht. Some ocean freighters require additional payments if exporters load more than
14 tons per container, another exporter said. "Normally we can load as many as 21 tons in a container but now freighters are blaming us for such heavy weight and charging extra," the exporter said. Freight costs have increased to about $100/ton, up from $50-$60/ton at the
beginning of the year.
Monday, Thai 100% grade B was offered at $347-$351 a metric ton, FOB Bangkok, and 5% broken rice was offered at $337-$340/ton. These prices are higher by around $10-$13/ton from a week earlier. Parboiled 100% sortexed was offered at $342-$346/ton, compared with $334/ton
last week.
"The exchange rate is the main problem. It's getting bad for the exporters as prices are about $10 a (metric) ton higher today free on board basis from a week ago," an executive at a large exporting firm said. "We're unlikely to make any new deals at current lofty prices. Buyers are running away to Vietnam or adopting a wait-and-see stance," the executive said. The U.S. dollar last week weakened to THB33.18, the U.S. unit's lowest level since August 1997.
Exporters also expressed concerns over rising freight rates caused by a shortage of vessels and a stronger baht. Some ocean freighters require additional payments if exporters load more than
14 tons per container, another exporter said. "Normally we can load as many as 21 tons in a container but now freighters are blaming us for such heavy weight and charging extra," the exporter said. Freight costs have increased to about $100/ton, up from $50-$60/ton at the
beginning of the year.
Monday, Thai 100% grade B was offered at $347-$351 a metric ton, FOB Bangkok, and 5% broken rice was offered at $337-$340/ton. These prices are higher by around $10-$13/ton from a week earlier. Parboiled 100% sortexed was offered at $342-$346/ton, compared with $334/ton
last week.
Friday, 13 July 2007
Nigeria failed 2006 rice production target
Nigeria failed to meet its target of 5 million tonnes of local rice production in 2006 because of lack of consistency in government policies, the main growers group said on Wednesday.
A top official said in January that Nigeria had cut its annual rice imports to half a million tonnes due to a significant rise in local production over the last three years due to the success of the government initiative.
Before the drop, Nigeria was the world's biggest importer of parboiled rice, mainly from Thailand and India.
The association of Rice Millers, Importers and Distributors of Nigeria said in an open letter to former President Olusegun Obasanjo in November that the decline in rice imports was not due to rising local production but to an increase in smuggling. The association had said about a third of the rice imported into Nigeria was smuggled from neighbouring Benin, depriving the government of 24 billion naira in annual duties.
Nigeria delayed an outright ban on rice imports in 2006 and slashed duty to 50 percent from 120 percent.
Analysts say a blanket ban is not likely in the near future because rising local consumption has outmatched production, which the say is hampered by obsolete farming methods, smuggling and low private sector participation.
India Government Bans Imports Of Genetically Modified Rice
The import of rice in India is permitted only if the exporter is able to furnish a certificate from the competent government authorities from country of export that the exported rice is GM free," the government said in a statement dated Tuesday.
India allows regulated trials for GM-rice but none of these types have been released for commercial cultivation.
Such trials have also been stopped in those regions, where Basmati rice is grown, known for its unique aroma, grain length and cooking properties. Basmati, one of the world's costliest rice types, is grown only in some parts India and Pakistan.
Thai and Viet Prices Up Sharply
Asian physical rice export prices were up sharply Thursday despite quiet trade, with a strong baht boosting prices in Thailand, exporters said.
"The currency is getting so bad for the exporters - prices are so much higher today," one Bangkok-based exporter said.
Local prices are quite steady as farmers are beginning to harvest a major crop, the exporter said. As current prices are at lofty levels, most buyers aren't likely to make new deals, exporters said.
Thai 100% grade B was offered steady Thursday at $350-$351/ton, FOB, Bangkok, the 5% broken at $340-$342/ton and parboiled 100% sortexed at $349-$351/ton. These prices are higher by $8-$10/ton from prices offered Wednesday.
In Vietnam, prices also rose Thursday despite the ongoing harvest because of strong demand from exporters who need to fill outstanding contracts.
"A new crop is coming, but fresh supply isn't enough to fill existing demand in the local market," one exporter said. Prices aren't likely to fall until around the end of July, when farmers would have harvested most of their crop, the exporter said.
Thursday, 12 July 2007
Thai Prices Steady At High Levels On Strong Baht
Asian physical rice export prices were steady at high levels Wednesday from Friday, despite thin trade in Thailand, as a strong baht was working to support offers, exporters said.
"Buyers are running away to Vietnam. We haven't had any inquiries," one Bangkok-based exporter said.
At current prices, it's unlikely Thai exporters will be able to sell huge quantities of rice, exporters said.
"Our prices aren't competitive compared to Vietnam; how can we attract buyers back into the market?" a second exporter said.
While farmers have begun harvesting a major crop, which could put pressure on local prices, exporters aren't likely to offer any price discounts, exporters said.
"The exchange rate is the main problem," the first exporter said.
Thai 100% grade B was offered steady Wednesday at $340-$341/ton, FOB, Bangkok, the 5% broken at $332-$336/ton and parboiled 100% sortexed at $335-$341/ton. These prices are largely unchanged from those offered last Friday.
In Vietnam, prices were steady despite the ongoing harvest of a major crop on strong global demand, exporters said.
While current prices are also high, Vietnam prices are more attractive compared to Thai offers, one exporter said.
Stronger Baht Limits Thai Rice Export Prospects
BANGKOK (Dow Jones)--Some buyers have temporarily halted purchase of Thai rice because of higher prices while others have switched to cheaper sources of supply such as Vietnam, Chookiat Ophaswongse, President of the Rice Exporters' Association of Thailand, said in an interview Wednesday.
Consistently high local prices for Thai rice this year will slow rice trade and slash the country's export volume below targeted levels, Chookiat said.
"Rice exports this year is expected to be not more than 8 million metric tons (given the high prices in the domestic market)," Choookiat told Dow Jones Newswires.
The Thai government originally set a rice export target of 8.5 million to 9 million tons for 2007, an increase from 7.5 million tons exported in 2006.
Chookiat said Thai rice prices are expected to stay at the current high level, or even rise further through the rest of the year due to the strengthening baht and higher freight rates.
"The baht's appreciation is eating into rice exports growth and shrinking margins (for) local exporters," he said. The Thai baht has gained about 7% against the dollar so far this year. The
dollar was trading around THB33.25 at 0620 GMT Wednesday, hitting 10-year low, versus THB33.48 at Tuesday's close.
The baht's sharper gains, particularly when compared with currencies of other rice exporting countries in the region, has been a cause of concern for Thai exporters. The Vietnamese dong, for example, has mostly been stable against the U.S. dollar, making Vietnamese exports more competitive.
Domestic prices in Pakistan to go up
Rice prices are expected to increase in the domestic market on the back of growing export demand of the commodity and a shortfall of almost 2.5 percent of the crop as rains have damaged paddy-growing areas of the province.
Traders and exporters of the commodity told Daily Times on Wednesday that the rising interest of foreign buyers in mixed varieties of Basmati and Irri-6 has contributed to the increase in the rice price at the local markets.
They said that due to better prices offered by international buyers, exporters availed the opportunity and enhanced their exports rather than selling the commodity in the domestic market.
"We are exporting rice to Dubai, Saudi Arab, East, South Africa and West African countries, USA and other states on better rates," said.Haji Majeed, an exporter.
Super Basmati export price ranges between $800 to $860 metric tonne, while varieties of Irri range between $298-$300 a tonne, he said.
Mr Majeed said that mixed varieties of export quality rice ranged between $550 per metric tonne to $850 per metric tonne, thus it gives a better price to the exporters.
The country exported around 866,715 metric tonnes Basmati rice during July-May 2007 stood as compared to 749,057 metric tonne in the same period last year.
During July-May 2007, the export of all other qualities of rice stood at 2065,560 metric tones.
While in May 2007 alone, the export of all other qualities was 155,417 metric tonnes and Basmati exports stood at 98,028 metric tonnes.
Domestically, rice of different qualities is available between Rs 35 per kg to Rs 75 per kg at the retail level. The country is likely to face a shortfall of around 2.5 percent yield of rice this season, in all different varieties of Basmati rice, Irri, growers said.
The lower production will be due to rains in lower part of Sindh and Punjab at the time of sowing of the crop, which might affect the production.
The shifting area to sugarcane crop, because of better price offered by the millers to the growers last year also remained a contributor to the lower yield of rice.
Chairman of the Sindh Abadgar Board, Abdul Majeed Nizamani said that the rice belt comprising of districts Larkana, Qambar-Shahdadkot, Jacobabad Shikarpur and parts of Dadu, irrigated by the Kotri Barrage, on the right bank of the Indus River were the worst sufferers.
The region produces different varieties of rice, including Basmati and Irri-6 on an area almost 450,000 producing almost 1,412,000 tonnes of rice.
Over an area of 80,000-90,000 acres of highly fertile land in these districts has been damaged as waters have inundated paddy fields.
At the same time he complained that the Sindh irrigation department had blocked most of its canals located on the left bank of the Indus River. This was causing shortage of irrigation water in the area.
Wednesday, 11 July 2007
Thailand, Vietnam discuss co-operation
Thailand and Vietnam, the world's two top rice exporters, yesterday began three days of talks on co-operation in the rice trade in hopes of ending a price war and increasing prices to farmers. The meeting followed an accord signed last year in which the two countries' rice trade groups agreed to meet more frequently to exchange information and expand investment in their countries.
Officials from Laos, Cambodia, and Burma have also joined their Thai and Vietnamese counterparts in the discussions in Halong Bay to collaborate to improve the image and quality of Southeast Asian rice. The five countries control about 45% of the global rice trade.
Participants would share ideas on market trends for the second half of the year and discuss non-tariff barriers imposed by buying countries, said Chookiat Ophaswongse, president of the Thai Rice Exporters Association, Chookiat Ophaswongse, president of the Thai Rice Exporters Association and head of Huay Chuan, one of Thailand's largest rice exporters, said many Thai
businessmen want to hear details from the Vietnam Food Association, which invited Thai operators to invest in warehouses and related facilities.
Some rice traders such as Thailand's CP Group expressed interest in the investments but were still uncertain about local regulations and incentives.
The meeting would also consider whether to accept Pakistan as a member. Thai exporters are concerned that Pakistan's different grain types and trade circumstances make it incompatible.
Meanwhile, Mr Chookiat has expressed concern over rising transport charges caused by a shortage of ships and a stronger baht. He said some ocean shippers required additional payments if exporters load more than 14 tonnes per container.
''Normally, we can load as many as 21 tonnes in a container but now shipowners are blaming us for such heavy weight and extra expense is the result.''
Mr Chookiat added that expenses have increased to about US$100 per tonne, from $50-60 a tonne, while the strong baht has made Thai rice be more expensive.
At a 34 baht per US dollar, the FOB (free on board) price of 100% B-Grade white rice this week was $341 a tonne, up from $338 quoted last week. Hom Mali fragrant rice rose to $579 from $574 per tonne.
The vessel shortage might deter the country's plan to ship a total of 8.5 million tonnes this year.
Tuesday, 10 July 2007
Vietnam's Rice Exports To Ivory Coast Seen To Rise
HANOI, July 10 Asia Pulse - Vietnam has a great opportunity to boost rice exports to Ivory Coast in the coming years thanks to its growing demand and taste for Vietnamese rice, said the Ministry of Trade.
In the first 11 months of 2006, Vietnam shipped 213,000 tonnes of rice worth US$53 million to the African country that imported a total of 900,000 tonnes last year.
According to the ministry, Pakistan also planned to import rice from the Southeast Asian nation in order to stabilise the domestic market amidst a lean harvest in the country this year.
Vietnamese rice is currently exported for $305 per tonne, up $45 over the same period last year, said the ministry.
Statistics released by the General Statistics Office shows that Vietnam - the world's second largest rice exporter after Thailand - shipped abroad 2.3 million tones of rice worth over $731 million in the first half of 2007, year-on-year decreases of 9 per cent in volume and 5.6 per cent in turnover.
Rice Prices Seen At $360/Ton By 2008-09, Then Decline-OECD
LONDON (Dow Jones)--Global rice prices are expected to rise in the short term due to increased dependency on imports by producers such as China and Indonesia, the Organization for Economic Cooperation and Development and U.N. Food and Agriculture Organization said Wednesday in their Agricultural Outlook for 2007-16.
In the longer term, prices will start a "gradual decline," the report said.
The two groups predict rice prices will rise to $360.3 a metric ton in 2008-09, but then start to decline in subsequent years to hit $326/ton by 2016-17.
The report said the average price between 2001-02 and 2005-06 has been $238.4/ton.
Rice prices rose in the past decade due to a decline in global stocks and increased rice trade, the report said. Asian producers' demand for imports increased along with demand in Turkey and the Middle East.
Imports will continue to increase due to changes in trade policy in some OECD countries, the report said. Scaled back import duties in the E.U. and an enlarged quota in South Korea will spur imports, the report said.
The main exporters will remain in Asia, principally Thailand, Vietnam and India, the report said. Only moderate export growth is expected in the U.S.
Vitenam USDA weekly report
Vietnam 2007 rice production revised down slighly. Post also revised export forecast down to 4.7 million metric tons in 2007.
Iraq buys over 100,000 tonnes of Thai rice
Iraq has bought between 100,000 and 150,000 tonnes of Thai rice at prices ranging between $417 and $423 a tonne C&F, and the rice is for July/August shipment, trade sources said on Thursday. The sources also added that the purchases were brought under a nominal tender to buy up to 30,000 tonnes of rice that closed on May 30.
Iraq's rice imports are estimated at around 87,000 tonnes each month.
Other trade sources say Iraq has at least 100,000 tonnes of outstanding contracts since December last year that have not been delivered, including 60,000 tonnes of Thai rice and 30,000 tonnes of U.S. rice.
Thai Prices Continue To Rise On Strong Currency
Asian physical rice export prices were offered mostly higher Thursday despite thin trade as a stronger baht in Thailand compelled suppliers to hike offers, exporters said.
In Thailand, the market was mostly quiet as most buyers were sidelined by high prices.
"We have no other reason (for the higher prices) but the stronger currency. This is getting really bad for business," one Bangkok-based exporter said. In fact, local prices have remained stable over the last few weeks and are expected even to go down on an increase in supply as farmers are about to harvest a major crop.
"Many exporters have speculated that prices will go down with the arrival of a new crop. Instead, prices are higher," a second exporter said.
APEDA moots amendment to basmati rice export rules
The Agricultural and Processed Food Products Export Development Authority (APEDA) has proposed to bring amendment to the Export of Basmati Rice (Quality Control and Inspection) Rules 2003 to notify Basmati 320 as a land race or traditional basmati variety in an unseemly hurry that might be detrimental to the conservation of real land race or traditional varieties
of basmati being exported by India.
of basmati being exported by India.
The notification of Super Basmati as "approved and evolved basmati" last year only to export and not for domestic trade or otherwise has evoked the ire of Islamabad since Super was a variety developed by Pakistan in as much as it has decided to contest India's claim legally here.
Since super basmati itself was the combination of Basmati 320 (traditional variety) and IRR 662 (non-basmati rice variety), APEDA is now notifying Basmati 320 as a land race variety or traditional variety after notifying its offspring as basmati last year.
Sources keen to keep the scientific and research interests of maintaining the pure brood stock of basmati told Business Line here that Basmati 320 has seldom been documented by the Biodiversity Management Committee charged with conservation of Land Races or in the Plant Varieties Registry maintained in line with the Protection of Plant Varieties and Farmers' Rights Act, 2001.
Indian Basmati export adulteration unveiled
For five years, Indian traders have been passing off a lesser quality rice, CSR 30, as Basmati, in key markets like the US, Canada and the EU. And this with the full knowledge of the trade and the government. In the process, the rice exports enjoy the duty exemption accorded to pure Basmati in the EU, thousands of consumers get duped both in the domestic and export markets,
and the stock of traditional grain gets depleted on Indian farms.
and the stock of traditional grain gets depleted on Indian farms.
CSR 30 has only 80% of traditional Basmati aroma and is shorter and broader - but is as grainy and tasty when cooked. Its presence in Basmati export consignments to the EU was brought up in May by European Commission DG Jesus Zorrila, in a meeting with India's government-cum-trade delegation to Brussels.
EU laws take a stringent view of fraudulent activities on the Basmati front and the EC regulation No. 972/2006 provides for the introduction of a control system based on DNA analysis at the border and transitional arrangements for imports of Basmati rice pending that. In London, the
delegation had to countenance similar queries.
An alert on the Basmati hoax was put out by key world rice newsletters in June. "A DNA rice authenticity verification service in India has concluded that more than 30% of the Basmati rice sold in the retail markets of the US and Canada is adulterated with inferior quality grains," the June 19 Oryza newsletter said. It referred to a survey in public interest conducted by
Ricesearch, a state-of-the-art DNA testing facility set up by Tilda, exporter of premium Basmati that has a major footprint in the US, Canada,the UK and west Asian markets.
Ironically, BEDF and Apeda as well asExport Inspection Council, which issues the authentification certificate, are likely to be aware that CSR 30 now dominates Basmati area in key states. A November 2006 satellite-based acreage estimation by the Birla Technical Services annually for Apeda reveals that in kharif 2006, at 70,489 hectare, it covered 197% of the land
covered by HBC 19 in Haryana, where big exporters source a big chunk of their produce. That translated to 229% of the production (at 2,22,759 tonne) of notified varieties (97,365 tonne).
Overall, in the Basmati-growing regions of Punjab, Haryana, Uttar Pradesh, Uttaranchal and Jammu & Kashmir, however, CSR 30 accounted for a total of 2,59,181 tonne in 2006 compared to the traditional Basmati produce of 5,37,174 tonne, i.e., 48% of the total produce. This was sufficient to have raised alarm bells in official quarters who certify rice exports as Basmati.
The adulteration issue could, even while significantly downmarking the heritage association with Indian Basmati, impact attempts ostensibly being made by the Centre to register the Geographical Identification (GI) of Basmati. GI registration would allow all evolved varieties similar to the traditional Basmati and grown in the specified region (11 in all, with six
traditional and five evolved varieties) for similar duty exemptions. However, traders would have to pay the same price to the farmer here for all the varieties labelled Basmati. Currently, traders typically pay Rs 700 less per quintal of CSR 30 paddy to the farmer compared to the price for
traditional Basmati variety, even while passing off the two varieties as the same abroad.
Agri scientists and geneticists, meanwhile, are worried that the high premium placed on the traditional Basmati by traders even while they pass of the extensive research-backed hybrids varieties as land race or pureline rain, will take away from decades of hard scientific work that went into ceation of the evolved varieties.
India, Pakistan rice traders to hold talks over Basmati rice
As Pakistan reportedly plans to take legal action against India over a dispute on patenting of Super Basmati rice, rice exporters of both the countries will meet in New Delhi on July 18 to discuss the prospects of joint registration and a joint export strategy.
Wednesday, 4 July 2007
China to buy more fragrant rice
Negotiations for an expansion of Hom Mali or fragrant rice and rice product market in China has been successful more than expected, according to Thailand's Foreign Trade Department.
In the first five months of this year, Thailand’s rice exports totaled 3.3 million tonnes. Of this, 1.19 million tons are jasmine rice. The rice exports to China totaled 174,894 tonnes. Of this, 118,059 tons are jasmine rice.
In the first five months of this year, Thailand’s rice exports totaled 3.3 million tonnes. Of this, 1.19 million tons are jasmine rice. The rice exports to China totaled 174,894 tonnes. Of this, 118,059 tons are jasmine rice.
Vietnam Rice Prices Unchanged On High Demand, Strong Supply
Vietnamese rice export prices were mostly unchanged in the week to Tuesday as export demand and local rice supplies rose in tandem, traders said.
In Ho Chi Minh City and the Mekong Delta region on Tuesday, traders quoted indicative prices for high-quality 5% broken rice at $303 per metric ton, while the 25% broken grade was going for $285/ton, both unchanged from levels a week ago.
Pakistan Basmati export to UAE
Not only has an artificial and exorbitant increase in prices of rice led to the imposition of a cap or limited the amount of money that can be charged for each kilogram of rice by the UAE, it has resulted in a decline of exports, putting Pakistani exporters in a difficult situation, according to
leading traders of this commodity.
leading traders of this commodity.
They said that prices of all varieties of Pakistani rice have become unaffordable in major international markets. Irri-6 25 percent broken, the cheapest variety of Pakistan's coarse rice, mainly exported to African countries, has now crossed the level of $295 per ton thus surrendering the market to Thai origin rice.
Local rice exporters pointed out that many rice importers in UAE have ceased placing new orders to their suppliers from Pakistan owing to high prices of non-basmati rice in general and Basmati in particular. As a result, exports of Pakistan's Basmati in particular and other rice in general have decreased considerably.
The UAE is one of the major traditional markets of Pakistani Basmati rice. It imported 231,056 tons, for $117,216,964, during 2005-06, while from July 2006 to May 2007 about 205,913 tons, worth $125,890,697, Basmati was exported to UAE.
As a result of sudden price increase in Pakistan's local market, export cost prices of Basmati rice have soared considerably, which is badly affecting sales in established Pakistani Basmati markets.
This price hike and costly imports of Basmati into UAE also affected this important market and forced the importers to raise their prices. The vigilance monitoring of local authorities alerted their high-ups to come into action and their local Municipality (Baldiya) issued directives to fix
ceiling prices in UAE market up to maximum level of UAE Dhs.115 per 39 kg bag which is far below the prevailing market price of Super Basmati rice in Pakistan at present.
This fixation of price ceiling has created panic among leading importers of Pak Super Basmati who have stopped placing further orders to their counterparts in Pakistan. This restriction of ceiling price is only on Pakistani Super Basmati rice largely being sold under 'Sinnara' brand, while such restriction has not been imposed on Indian Basmati.
According to market sources, Indian Basmati brands wholesale prices are for 'Tilda' 20 kg bag at UAE Dhs. 220 to 240, 'India Gate' 20 kg at Dhs.200, 'Kohinoor' 20 kg at Dhs.180.
This important issue was brought to the notice of Rice Exporters Association of Pakistan (REAP) and relevant ministries in March 2007 but no tangible solution has been evolved yet. This price restriction is harming rice exports from Pakistan due to high prices here in Pakistan.
Shrewd importers have started playing with quality with the connivance of their suppliers, thus ruining the perception of Pakistani Basmati rice in consumers' mind at the one hand and providing chance to anti-lobby to speak ill against Pakistan Basmati, on the other. The tragic side of the story is that neither the government of Pakistan nor the Reap is prepared to cope
with the situation.
One of the leading exporters to UAE told Business Recorder that he was incurring huge financial losses owing to this price restriction as he has no option except to sell below cost just to keep alive the brand in the UAE market which has maximum market share.
Another leading rice exporter to UAE said that this ceiling price is a conspiracy against Pakistan Super Basmati rice which was dominating UAE market and decision has been imposed only on Pakistan origin while Indians are selling their brands at higher prices without any restriction. On the other hand, Indian government and the Indian rice exporters both are active in the UAE to defame Pakistani Basmati rice.
They are offering free testing of Pakistani blended rice - exported from Pakistan on the name of pure basmati rice on the directives of the UAE importers - just to influence on UAE government to ban the import of Pakistani Basmati rice in the UAE so that they could enjoy free market hold.
"This is another dilemma of price hike being faced by us", he said, and demanded that the Government of Pakistan should crackdown hoarders and speculators who have artificially increased prices in the domestic market which now creating problems for them in export sales.
"Our new crop of Basmati is 6 months away and if this price hike persists, we apprehend that we may lose important market share of Basmati owing to our higher local cost and resultantly steep decline in rice exports are expected in near future," another leading rice exporter said.
Pakistan to increase Basmati output
Official sources reported that area under Basmati cultivation has been increased by 1489.0 million hectare and 2666.40 million tons production has been prepared to produce this year as compared to the total area of 1474.24 million hectare and total production of 2493 million tons in 2006-07.
Tuesday, 3 July 2007
Thai hervest to increase supply
BANGKOK (Dow Jones)--Thai rice prices were little changed in the week to Monday as outstanding contracts kept local suppliers busy and farmers prepared to harvest a new crop, exporters said.
Some buyers are making inquiries but stayed on the sidelines because of high prices, exporters said. "Buyers want to buy, but they think current prices are not attractive enough," said a second exporter.
Rice supply in Thailand is expected to improve from this month as farmers will be harvesting the second crop, which exporters hope will soften prices and spur buying in the market. Exporters said some buyers could be waiting for prices of exportable rice to fall as farmers start their harvesting activities before making new deals. Until the new crop arrives in the market, adjustments in export prices will be determined by the exchange rate, exporters added.
Monday, Thai 100% grade B was offered $1 lower at $334/ton compared to $335/ton last week, FOB Bangkok, while 5% broken was offered steady at $327-$329/ton. Parboiled 100% sortexed was offered at around $332-$333/ton, $2-$3 higher than last week.
Some buyers are making inquiries but stayed on the sidelines because of high prices, exporters said. "Buyers want to buy, but they think current prices are not attractive enough," said a second exporter.
Rice supply in Thailand is expected to improve from this month as farmers will be harvesting the second crop, which exporters hope will soften prices and spur buying in the market. Exporters said some buyers could be waiting for prices of exportable rice to fall as farmers start their harvesting activities before making new deals. Until the new crop arrives in the market, adjustments in export prices will be determined by the exchange rate, exporters added.
Monday, Thai 100% grade B was offered $1 lower at $334/ton compared to $335/ton last week, FOB Bangkok, while 5% broken was offered steady at $327-$329/ton. Parboiled 100% sortexed was offered at around $332-$333/ton, $2-$3 higher than last week.
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