India rice procurement crosses 10 mn tonnes so far

The Food Corporation of India (FCI), the nodal agency for procurement and distribution of food grains, has procured over 10 million tonnes of rice since October. "Rice procurement as on today stands at 100,83,026 tonnes," according to an official statement. The government had procured similar quantity of rice in the year-ago period. FCI and other state agencies have purchased 8.28 million tonnes from Punjab, 1.6 million tonnes from Haryana so far in 2010-11 marketing season (October-September). The rest has been purchased from Tamil Nadu, Andhra Pradesh, Kerala and Uttar Pradesh. The government''s rice procurement had declined in 2009-10 marketing season by seven per cent to 31.45 million tonnes due to a sharp fall in production by about 10 million tonnes, on account of a widespread drought in 2009. However, FCI officials are expecting better procurement this year as rice output is estimated to increase in 2010-11 crop year. In Kharif season, the country''s rice output is estimated at 80.41 million tonnes against 75.91 million tonnes in Kharif season last year. The sowing of rabi crops are in process.

Vietnam-Cambodia cooperate in rice marketing

The Cambodian Takmoa Agriculture and Industrial Development and the Vietnamese Thai Thinh Company have signed a US$22.4 million contract to plant 20,000ha of rice for export. The Thai Thinh Company will provide assistance and support for rice cultivation and processing for two Cambodian provinces, Kompong Cham and Kompong Svay. The two sides will develop a water drainage system in the area and build a rice processing factory capable of producing 500 tonnes of rice a day in January, 2011. Lim Kimkhun, Chairman of Cambodian Takmoa Agriculture and Industrial Development said that both sides will cooperate to produce 2 harvests a year with an average yield of 7 tonnes per ha and a target to export 200,000 tonnes of rice by 2012. The contract will also generate works for nearly 280,000 Cambodian farmers.

S. Korea rice output falls to 30-year low

South Korea's rice production fell to the lowest level in 30 years due to bad weather conditions and a steady decrease in the size of rice paddies, a government report showed Tuesday. The report by Statistics Korea said the country's rice production reached 4.29 million tons this year, down 12.6 percent from 4.91 million tons in 2009 and the lowest since 3.55 million tons in 1980, when cold weather devastated output. "Unseasonably cold weather in spring, and hot, overcast skies during the summer months seriously affected the yield of the staple grain," an official said. "This year's harvest was also hurt by several typhoons that hit the country." Reflecting the bad weather conditions, the average rice production for a 10-are paddy fell 9.6 percent to 483 kilograms this year from a record 534 kilograms last year when South Korea had a bumper crop harvest, helped by ideal weather and no typhoon damage. The report, meanwhile, showed the total area of rice paddies in the country falling 3.5 percent on-year to an all-time low of 892,000 hectares, as more farmland was converted for other uses. A hectare is equivalent to 10,000 square meters. The size of South Korea's farmland has been decreasing by a yearly average of about 2 percent, as the government eased restrictions on rural development and moved to build more roads and other industry-related infrastructures over paddies and fields.

Thailand Rice Price - Weekly

Domestic and export prices increased by 3-5 percent as foreign buyers stepped up their enquiries of Thai white rice for export to African markets. Additionally, rice millers and traders are holding stocks speculating that MY2010/11 main-crop rice production will likely decline significantly in flooded areas. However, exporters expect prices will likely ease over the next few weeks once the damage due to floods is assessed.

Vietnam Rice exports total $2.5 billion

Viet Nam has exported 6 million tonnes of rice this year, worth US$2.5 billion, reported the Viet Nam Food Association (VFA). The association said the export price of Vietnamese rice within the last two weeks increased sharply by between US$5 and $20 per tonne to $450 per tonne for 25 per cent broken rice and to $495 per tonne for 5 per cent broken rice. Head of the Ministry of Agriculture and Rural Development's Plantation Department Nguyen Tri Ngoc said the demand for rice by the end of this year would increase sharply while global supply would decrease, so traders should sign export contracts soon to capitalise on the opportunity. Domestic and international rice experts said the supply might increase next year because the Indian Government would resume exporting large quantities of rice. Therefore, export prices for rice would decrease during the next year. The Government issued a decree detailing the conditions for export rice trading to improve the quality of export rice and management. Under Decree 109/2010/ND-CP, eligible rice traders must have legal trading certification, one warehouse to store at least 5,000 tonnes of rice, one rice mill that can process at least 10 tonnes of rice per hour and will have to follow additional standards that will be mandated by the Ministry of Agriculture and Rural Development. Professor Vo Tong Xuan, a rice expert, said the decree would help increase the value of Vietnamese rice and improve the product's reputation globally. The country expects to export 6.5 million tonnes of rice this year, reported the association.

Philippines sets 2011 rice output goal at 17.4-M tons

The government has set a rice production goal of 17.4 million tons next year, nearly 9% higher than a revised target of 16 million tons in 2010, a senior official said on Monday. The Philippines, the world's biggest rice buyer, expects rice production to reach 19.2 million tons in 2012 before becoming self sufficient in its staple in 2013, Dennis Araullo, a grains program director at the Agriculture department, told reporters. Agriculture Secretary Proceso Alcala, meanwhile, said rice purchases for 2011 will not be more than half of the record imports of 2.45 million tons last year. For the first 9 months, domestic production of unmilled rice fell 15% from a year ago.

Philippines May Import Rice in Early 2011

The Philippines, the world’s biggest rice importer, may hold tenders for the grain in the first quarter of 2011, Agriculture Secretary Proceso Alcala said in a press briefing today. The Southeast Asian nation, which imported a record 2.47 million metric tons for this year, cut its rice production forecast this year to 16.02 million tons from 16.24 million tons due to storms that damaged crops. It’s still reviewing the volume, mechanics and timing of rice imports, Alcala said.

Thailand Rice harvest could be down 20%

This year's rice production is expected to drop by about 20 per cent due to the massive flooding in the country, Thai Farmers Association president Prasit Boonchoey said on Thursday. Mr Prasit said the country usually produces about 10 million tonnes of rice paddy per year. The extensive flood damage to rice fields is likely to cut the crop by about 20 per cent. The drop in production would not cause shortages of rice, either for domestic consumption or export, because the country still has a considerable amount of rice in stock. Mr Prasit said rice prices are still in a favourable direction. The price of paddy is currently 9,000 baht per tonne, up from 8,500 baht, due to concerns over production both inside the country and abroad, since other rice-producing countries including Vietnam, India and Pakistan have also been hit by natural disasters. Therefore, the price may rise to as much as 10,000 baht per tonne, but not as high as 15,000 baht as some people may hope, he said. "Tomorrow (Nov 12), there will be a meeting of all concerned to discuss prices and marketing," Mr Prasit said. Mr Prasit said the government's plan to provide financial relief for flood-hit farmers at the rate of 2,098 baht per rai was good, but authorities should watch out for people trying to make dishonest gains from this measure. He said some people who had not really suffered damage have registered for help, causing a delay in relief payments to those actually affected.

Drought likely to hit rice crop Vietnam

Insufficient rainfall is likely to affect the winter-spring rice crops across the country, the National Hydro and Meteorological Forecasting Centre said yesterday. Water levels in rivers in the north-central provinces would be less than last year's average levels by about 30 per cent. Those in the country's south-central and Central Highland provinces would be about 60 per cent less than last year's averages, said centre head Bui Minh Tang. "Drought and water shortages will spread extensively," said Tang. "Southern provinces will probably have to deal with salt water intrusions." The Red River's water level stabilised at 2.85m last month, said irrigation expert Dang Duy Hien. The river's average was usually about 2.91m. If the drought continued, about 650,000ha of winter-spring rice crops in the northern delta might be ruined, he added. The Ministry of Agriculture and Rural Development had asked northern provinces to reorganise their crops according to climate forecasts and recommended farmers plant dry crops such as corn or cashews, among others, that need little irrigation, said Deputy Minister Bui Ba Bong. "We should sow up to 60 per cent of land as soon as possible to avoid drought and salt intrusion early next year," Bong said. Vu Van Thang, head of the Irrigation Department, said provinces should develop drought mitigation plans as soon as possible and dredge canals and culverts to ensure irrigation of every field. "Additional pumps should be available when river levels drop too low," he said. The Department of Cultivation head Pham Dong Quang said provinces had been asked to save irrigation water for next year.

Philippines Rice stocks up by more than a quarter

THE COUNTRY'S rice inventory at the start of October was up by 26.79% to 3.15 million metric tons (MT) from 2.49 million MT in the same period last year, data from the Bureau of Agricultural Statistics (BAS) showed.

Thailand Cuts 2010/11 Main Rice Crop Forecast

Thailand, the world's biggest rice exporter, has cut the forecast for its 2010/11 main crop slightly to 22.3 million tonnes of paddy after the country was hit by floods, an Agriculture Ministry official said on Thursday. That was down from the previous forecast of 22.6 million tonnes and compares with output of around 23 million tonnes in normal years, Apichart Jongsakul told Reuters. "Flooding in some places in the central, low-lying areas has lasted longer than expected, damaging more of the rice output," Apichart said. The limited damage was in line with traders' estimates, most still expecting Thailand to produce more than than 22 million tonnes despite the flooding. The flooding hit Thailand's northeast and south, the country's main rice and rubber areas respectively, killing up to 203 people since October. Flood water still remained in at least 18 provinces. Harvesting of the country's main rice crop usually starts in November and finishes in late January. After finishing havesting, farmers in well-irrigated areas usually start planting a second, smaller crop that usually produces 5-7 million tonnes of paddy. However, traders and officials said recent flood water was likely to bring fertile alluvial soil to the flooded areas that could help boost the second crop. "We might have up to 8 million tonnes of paddy from the second crop," one trader said. Harvesting of this crop starts in late June.

Vietnam Mekong farmers relieved as floods finally arrive

Much-delayed floods have arrived in the Cuu Long (Mekong) Delta where many farmers rely on the seasonal inundation for their livelihood. Paddy fields near the one of the Mekong's two major tributaries, the Hau, or Rear River, that were beginning to dry are now submerged. The occupants of small boats ply the flooded plain to cast nets or harvest water lilies. "My children caught a considerable number of fish yesterday," said farmer Duong Van Ut from Can Tho City's Vinh Thanh District. "I was worried about my paddy fields that were polluted with pests and rubbish," he said. "The floods will restore my fields." The Co Do District's Tran Huu Thanh who had raised more than 6,000 fish in an underwater trap that was short of water said he was now able to release his charges into submerged fields where they can swim freely. Once there, they would grow quickly and gain up to 200 grammes. "I can feed them with my catch and save money that I would have had to spend on fodder," he said. Fish farmers Many farmers in the Co Do and Vinh Thanh Districts use the yearly floods to breed and then farm fish in their fields. The floods typically arrive from June to October each year and the farmers along the two major tributaries have been anticipating them for months. The waters deliver a army of fish from Cambodia's Tonle Sap Lake and alluvial deposits that help nourish paddy fields. This year's delay created difficulties for the southern delta's fishermen, farmers, fishing net merchants and boat-builders. "Without the floods, we have neither crops nor fish," explained Vinh Thanh District fish farmer Nguyen Thi Khinh. "But a delayed flood is better than no flood – we still have something to catch," she said. An Giang hydro and meteorological forecast centre director Vo Thanh warned that water in the Tien, or Front River, where the Mekong enters Viet Nam in the province's Tan Chau District, had peaked at just 3.2 metres. The level was below the record low of 1989, he said. Can Tho's University scientist Dr Duong Van Ni attributed the belated floods to storms in northern Cambodia.

Export ban on non-basmati rice, wheat to stay for now India

India is not looking to lift the export ban on wheat and non-basmati rice for now, the Commerce and Industry Minister, Mr Anand Sharma, has said. The export restrictions on these commodities were put in place a couple of years ago on the onset of high food inflation to ensure domestic availability. “As of now, there is no proposal to rollback the restrictions on exports of commodities including non-basmati rice and wheat. Basmati rice exports will continue to be allowed. An appropriate view will be taken once the monsoons are over,” Mr Sharma told a press conference after unveiling the annual supplement 2010-11 to the foreign trade policy 2009-14. Inflation Mr Sharma also highlighted that the current food price inflation implied that the Government needed to pay close attention to domestic availability. Food price inflation has remained in double digit for several months in a row despite the policymakers' assurances that they would get a handle over the situation and that wholesale price index (WPI)-based inflation would come down to 5-6 per cent level by end December this year. SEZ units To a query on tax breaks for special economic zones (SEZs) in the proposed Direct Taxes Code (DTC), Mr Sharma expressed confidence that the concerns of industry would be addressed when the final version of the DTC is sent to Parliament. “I have already discussed this with the Finance Minister and also with the Prime Minister. The Finance Minister is fully sensitive to our concerns and also the apprehensions of the industry and investors,” Mr Sharma said. He assured industry and investors in SEZs and SEZ units that their benefits will be fully protected and policy stability will be ensured when it comes to SEZs that have already been notified and those that will be notified before the DTC comes into force. The Commerce Secretary, Dr Rahul Khullar, later said that the Commerce Ministry was working on a “compromise solution” with the Finance Ministry on the issue of tax breaks for SEZ units in the proposed Direct Taxes Code regime. Mr Sharma said that the financial implications of the export incentives (bonus incentives and add on to focus product schemes) announced on Monday would be about Rs 1,050 crore. The Rs 1,050 crore will not be money voted as demand for grants through Parliament. “What we are doing here is issuing scrips as incentives. This is not in the nature of an expenditure. It is what is called tax expenditure — that is you are foregoing revenue and not actually spending any money. The tax expenditure is done through an executive order,” official sources said.

Heat wave to cut Cambodia rice harvest : FAO

Extreme heat due to lack of rains in the recent past threatens to cut rice harvest in Cambodia to levels unseen since 2006, FAO said. According to United Nations Food and Agricultural Organisation, production of rice is likely to fall 22 percent to 5.9 million unmilled tonnes this year compared with 7.8 million tonnes of paddy farmed in 2009. In a report the FAO said prospects for the season have been marred by drought conditions, which have been affecting the greater Mekong sub-region since late last year. Cambodian Centre for Study and Development in Agriculture enterprise said drought conditions were affecting only some parts of the country. The important thing is that farmers choose to grow rice from good seedlings and ensure proper use of fertiliser, it added. Cambodia’s department of Meteorology said late rains could reverse the drought. “We expect rain levels to be close to last year from the middle to the end of the rainy season, and rain will still fall until November,” it said in a forecast.

Vietnam Rice Price - Weekly

Export rice prices were still rising strongly last week. The Vietnam Food Association announced the guidance prices for 5 percent broken rice at $400 per ton and 25 percent broken rice at $370 per ton. Local paddy prices also increased further last week. However, in some provinces in the Mekong River Delta, the increases in paddy prices have slowed over the last two weeks.

Thailand Rice prices pick up as demand improves

* Rice prices are expected to rise by 6% to 7% this month or early next amid a resumption in foreign demand ahead of year-end festivals and lower supply due to climate change. Foreign purchase orders have already resumed, and a flood of orders is anticipated next month to serve the many year-end festivals, said Sumeth Laomoraphorn, the chief operating officer of CP Intertrade. More purchase orders from African markets are also likely after Ramadan. Mr Sumeth said other supporting factors were the impact from global warming and widespread drought that has led Russia to ban wheat exports. Hot, dry weather is also expected to cut the output and export capacity of Ukraine and other European nations. In addition, Mr Sumeth said lower output in Latin American countries, particularly Brazil, due to climate change is also expected to prompt them to increase their rice imports. "The Philippines, which is the world's leading rice importer, is also now facing inadequate rice production and will have to import as much as two million tonnes this year," he said. "If Vietnam, which has already secured massive advance purchase orders, fails to deliver on its commitments, opportunity will return to our grains." Vietnam expects to export 6.5 million tonnes of rice this year, 4 million of which have already been exported. Mr Sumeth said Vietnam's 2% depreciation of the dong last week was unlikely to improve the rice industry's export competitiveness very much. The currency devaluation would instead drive up inflation and interest rates, consequently raising production costs for Vietnamese producers, he said. "Prices for Thai rice have bottomed out and are now starting to improve due largely to shrinking world rice stocks after traders delayed their purchases over the past four or five months," said Mr Sumeth. "The second half will represent an opportunity for Thai rice exports, which are expected to reach 8.5-9 million tonnes." Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, also agreed the outlook was promising for Thai rice in the second half, particularly with several rice-producing countries such as Pakistan, the world's third-largest rice exporter, suffering from floods and other disasters. He said parboiled rice shipments would especially benefit from India's continued ban on non-basmati exports. Thai rice prices, the benchmark for Asia, climbed to their highest level in two months last week as delayed planting has reduced supply. The Thai Rice Exporters Association increased the price of 100% grade-B white rice by 3.7% from a week earlier to $479 a tonne, while 25% broken rice rose 3.2% to $423 a tonne. Thailand this year had exported 4.9 million tonnes of rice as of Aug 18, down by 8.65% year-on-year, for a value of $2.93 billion, down 5.17%. The global rice trade is estimated at 30 million tonnes of milled rice for the 2009-10 season, a slight increase of 2.6% from the previous season.

Pakistan Rice Exports to Fall by 1 Million Tons After Flood Destroys Crop

Pakistan’s rice exports will decline by 1 million metric tons this year after flooding destroyed as much as 20 percent of the crop, according to a trade group. “We won’t need to import rice,” Malik Jahangir, chairman of the Rice Exporters Association of Pakistan, said in a telephone interview from Lahore today. “Our exports usually average 4.5 million tons and will be about 3.5 million tons this year.” Pakistan produces 6.5 million tons of rice a year.

Vietnam Commerce Ministry set to release rice stockpile

The Commerce Minister is planning to release its stockpile of more than 500,000 tonnes of rice to both exporters and millers as it foresees a suitable outofharvest season and lower production in Vietnam. A rice trader said the ministry agreed with the private sector's proposal to purchase the government's rice stock. The Foreign Trade Department will shortlist qualified exporters and millers for the purchase, and set a price that includes depreciation costs. The source also said that the authorities believe it is fair to allow both exporters and millers to make offers. "Though it is not open bidding, if offers are selected transparently, there will be no questions," the source said. Both exporters and millers are interested in purchasing all types of rice, including the white, jasmine, Pathum Thani and sticky varieties. The source added that releasing the government's stock would give Thailand a better supply of rice over the next few months even though the harvest season has ended. According to the Thai Rice Exporters Association, the country's total rice export volume dropped by 7.55 per cent to 4.86 million tonnes from January until August 9. The price of jasmine rice in the export market rose from US$1,008 to $1,017 (Bt31,818.50 to Bt32,110) per tonne; while the Pathum Thani variety rose from $779 to $787; 100percent rice from $462 to $479; and sticky rice from $996 to $1,005. A senior official said the ministry was planning to release its rice stockpile to the private sector as well as through governmenttogovernment deals. "We try to gradually reduce our rice stock but we don't want to break it as big news for fear of the price falling. We prefer to see offers that are marked to market cost," the official said, adding that the ministry planned to reduce as much of the stock as it can to make way for the crop that will be harvested in early November. The government is also considering proposals from other countries that want to import Thai rice via government to government deals.

Cambodia planning to sell rice to Philippines

Cambodia will send an informal trade delegation to the Philippines next month to secure deals for rice exports. The world’s biggest importer has announced that its rice production dropped more than 10 percent in the first six months compared with last year. Sun Kunthor, vice chairman of the Supreme National Economic Council, said the Cambodian delegation would seek to leverage the Philippines’ growing demand for the staple crop. “We will go to the Philippines soon, and we hope the Philippines will buy rice from Cambodia because the country’s rice demand is big,” he said. Sun Kunthor was among those involved in drafting the Kingdom’s new policies aimed at boosting rice production and exports. Philippine production of the food staple has fallen 10.2 percent in the first half of the year, compared with a year earlier, Manila announced Tuesday. Officials from the archipelago said dry weather caused by El Niño resulted in parched crops, and may require imports to make up for the fall in production. The Philippines is considering plans to boost imports, which have already hit a record 2.47 million metric tonnes this year. A formal decision would be made by Friday next week, said Philippines Agriculture Secretary Proceso Alcala. Production is expected to decrease further. Bureau of Agricultural Statistics Director Romeo Recide said Tuesday that output may fall another 25.6 percent in the third quarter, a dramatic increase from the 3.7 percent slump forecast in May. However, he said that production could rebound by 30.3 percent in the last three months of the year. Prime Minister Hun Sen highlighted Cambodia’s plan to increasingly tap the Philippine market when he unveiled the Kingdom’s new rice policy earlier this week. Government advisor in charge of trade promotion Sok Siphana will lead a delegation to the Philippines for “informal negotiations”, with the intent to later enter into formal discussion over shipments, he said Tuesday. “The government is adopting policies to turn to overseas markets in order to boost rice exports because in the future, rice exports may become a key sector for the leapfrogging of Cambodia’s economic growth,” Hun Sen said Tuesday. A source close to the prime minister, who asked not to be named, said the plan included a trade delegation expected to visit the Philippines next month. The prime minister said informal exploration of the Philippine rice market was necessary to better understand its needs. “We want to know what kind of rice the markets need so that we are able to provide them supply which meets their requirements,” he said. Last month, Philippine agribusiness investment officer Pablito Villegas who took part in his country’s first trade mission to Cambodia in July, told Philippine news outlet GMA News TV that domestic buyers were looking to purchase between 200,000 and 300,000 tonnes of Cambodian rice. According to the Kingdom’s new rice policy, the government is seeking to export at least 1 million tonnes of rice to international markets by 2015. The news also comes as rice exports from Pakistan, the world’s third-largest exporter, are expected to fall after extensive floods damaged crops in areas accounting for 90 percent of agricultural output. Pakistan was expected to export 3.8 million tonnes of rice this year, more than 10 percent of the estimated global shipments of 30.4 million tonnes, according to the Food and Agriculture Organisation, which made the forecast in July, before the flooding. Sok Siphana could not be reached for comment yesterday.

Vietnam to ban rice export for some months

I have just heard the following: Vietnamese will start banning their export of white rice from October shipment onward. Until when I'm not sure. At least till the end of this year, supposedbly.

Egypt cuts rice crop area by nearly half

Egypt cut by almost half the amount of land it used to sow rice in 2010 versus the previous year, saving the country 5-6 billion cubic metres of water, the official state news agency MENA said on Thursday. The amount of land on which rice was grown was reduced to 1.2 million feddans (1.2 million acres) from 2.2 million last year, MENA said, citing the Water Resources and Irrigation Minister Mohamed Nasreddin Allam. Egypt, the Arab world's most populous nation, wants to reduce its domestic production of the water-intensive crop. Bread is the main staple for most Egyptians, and Egypt imports more than half its wheat needs. An official was quoted as saying this month that Egypt wanted to achieve 70 percent wheat sufficiency. But rice is still a popular staple food. Climate change threatens a fragile farm sector in Egypt and population growth may outstrip water resources as early as 2017. Under a 1929 agreement with the Nile Basin countries, Egypt is entitled to 55.5 billion cubic metres a year, the lion's share of the Nile's total flow of around 84 billion cubic metres. The North African country has been in dispute with other Nile Basin countries eager for a greater share of river water to support power generation projects and agricultural growth.

Pakistan Non-basmati rice production to fall almost 20%

Production of non-basmati rice will fall by about 15 to 20 per cent from previous estimates, estimate rice exporters. “We had expected nonbasmati rice cultivation to yield about 4.5 million tons this year but due to flooding in various parts of Sindh, where much of this kind of rice is grown, we are now expecting up to 800,000 tons to be lost,” said Chairman of Rice Exporters Association of Pakistan (Reap), Malik Jahangir, on Wednesday. Jahangir explained that Larkana, Jacobabad, Shikarpur and Dadu districts are the main areas in Sindh where non-basmati rice is cultivated. Large parts of these districts have been flooded in recent days. Irrigation officials have also warned that fresh flooding may also be witnessed in many of these areas. Many of the crops that were cultivated in these areas have been destroyed. Agricultural experts also fear that gushing waters have washed away the nutrient- rich top soil of many agricultural areas. They say that farmers may not be able to achieve high yields and in some of the worst affected areas, cultivate crops at all for the next few years. Cultivation of high-quality basmati rice has also been affected although not as badly as non-basmati varieties. “Most of the areas where basmati is grown are in Punjab and have not been affected significantly by the floods,” commented the Reap chairman. Meanwhile, prices of rice have increased in local markets during Ramazan. Supplies have been affected due to flooding, Reap officials said, adding that transportation from fields to mills and then to markets is difficult and more costly because of the flooding. Jahangir asserted that because of supply constraints, the price of basmati rice has increased by Rs10 to Rs70 per kilogramme in wholesale markets while rates of nonbasmati rice have risen by Rs5 per kilogramme. Last month, the United Nation’s Food and Agriculture Organisation (FAO) issued a report that said Pakistan would lead an increase in global rice exports. The FAO report had also predicted the country’s paddy production for 2010 to be about 10.2 million tons, 0.1 million tons higher than the previous year. The report had cited that non-basmati varieties of rice are leading export growth for the country. This means that downgraded estimates for production of non-basmati rice will also likely hurt the country’s export prospects. Experts point out that earlier in the year, non-availability of water had been a cause of concern for farmers. They say that while production of basmati rice will probably not suffer much, achieving record exports may not be a feat that can be accomplished, at least not this year.

India firm makes low offer in Bangladesh rice tender

Indian firm M. Sons Group made the lowest offer of $477.51 a tonne, including cost and freight, in a Bangladesh tender to buy 30,000 tonnes of non-basmati parboiled rice that opened on Thursday, a food official said. The tender was issued by the state grains buyer early this month, and shipment is within 40 days of signing the contract, which will take place after the cabinet committee's approval. The offer was $33.51 per tonne higher than the country's last tender that opened last week, in which the same firm submitted the lowest offer of $444 a tonne to supply a similar quantity of parboiled rice. The highest offer was $575 a tonne, made by the Thai firm Daow, the food official said. The government has doubled its planned rice imports for this year to 600,000 tonnes after wheat prices spiked due to export curbs in the drought-ravaged Black Sea region. Deals to ship around 345,000 tonnes of Black Sea wheat to Bangladesh have been cancelled so far. Chicago wheat futures hit a two-year high after Russia barred shipments in early August, and since then prices have fallen by more than 20 percent but are still well above levels before the surge. On Thursday, the Bangladesh state grains buyer issued one new tender to import 30,000 tonnes of parboiled rice and another to buy 50,000 tonnes of wheat, both with an offer deadline of Aug. 30. Bangladesh, the world's fourth-biggest rice producer, harvested a record high rice crop of more than 34.45 million tonnes in the year to June, but the government failed to procure enough rice locally. The government's food reserves have come under added pressure as it has started selling rice at subsidised rates to help the poor during the Muslim fasting month Ramadan and to contain food inflation, now running at nearly 11 percent. Besides issuing tenders, the government is also trying to buy grains through state-to-state deals to build buffer stocks, which stand at 700,000 tonnes against a target of 1.5 million tonnes. Bangladesh has signed a contract to import 100,000 tonnes of 15 percent broken rice with Vietnam's top rice exporter, Vinafood 2, at $389 per tonne, while negotiating to buy more rice from there, food officials said. India also has allowed the export of 300,000 tonnes of non-basmati rice and 200,000 tonnes of wheat to Bangladesh. Food security is a major concern for the government as nearly 38 percent of the country's population of more than 150 million still live on less $1 a day.

Thailand not worried by Vietnam Dong devaluation

The devaluation of Vietnam’s dong by another two per cent early this week will not have any appreciable impact on Thailand’s rice exports, Commerce Minister Porntiva Nakasai said on Thursday. “Vietnam is a major competitor for rice exports, but our neighbour now has no more rice for sale,” Mrs Porntiva said. The ministry would keep a close watch on the situation, particularly on the value of baht. The private sector had repeatedly expressed concern about its appreciation, she said. The private sector was worried that the baht might strengthens to 30 to the US dollar, a rise of seven to eight per cent. Businesses warned that such an appreciation would affect the country’s exports in the fourth quarter of the year, she said. The minister was confident that the Bank of Thailand was capable of keeping the baht value at a suitable level and that exports would grow by 20 per cent this year, as targeted. Dusit Nonthanakorn, chairman of the Thai Chamber of Commerce, said there is a possibility Vietnam would again devalue the dong the near future, although this would not have much impact on Thailand’s exports. “But the government must keep a close watch on the situation and try to stabilise the baht value at levels in line with the currencies of other Asian countries. By doing this, manufacturers’ trade competitiveness will not suffer,” Mr Dusit said.

Importation needed to solve Philippines' rice shortage

The Department of Agriculture said yesterday it is bent on importing rice to solve a shortage despite President Benigno Simeon Aquino III’s order to stop it, a report of the Philippine News Agency said. “We need to import rice badly because the grain output slid by 10.24 percent for the first semester,” Agriculture Secretary Proceso Alcala told reporters at the DA Central Office in Quezon City. Alcala said he is worried because if the wet cropping season does not produce much of the staple, the country may have a shortage and need new importations. The DA chief said the harvest was down to 6.62 million metric tons (MTs), down by 750,000 MTs from the output of 7.37 million MTs for the first semester of 2009. He admitted that unless the weather becomes kinder and if the intervention measures set in motion by the DA will not suffice, the country will have to import rice anew. However, he stressed the volume would not be in the vicinity of the 2.45 million MTs imported by the previous administration. The Philippines did not import rice in 1991, 1992, and 1994 but foreign purchases escalated from 2001 onwards. Alcala stressed El Niño was the culprit and explained the prolonged dry season was bad for rice, which is dependent on adequate rainfall and irrigation water to increase yield.

Chinese Demand Hikes Vietnam Prices

Vietnamese deputy Agriculture Minister Nguyen Thanh Bien has revealed that bulk orders for rice by Chinese traders are driving up rice prices in Vietnam. According to the Vietnam Food Association (VFA), Chinese traders have bought some 600,000 MT of Vietnamese rice since April. In the same period, the price of paddy rice rose from 3,500 dong (0.19 dollars) to 4,600 dong (0.25 dollars) per kilogram. China is not usually one of the major importers of Vietnamese rice, and rarely buys any later than May, Vietnamese media said. The higher Chinese demand is not expected to affect Vietnamese food security. The Ministry of Agriculture and Rural Development estimates the country will harvest some 39 million MT of paddy rice this year, and can export between 7.2 and 7.4 million MT of processed rice.

Bangladesh Seeking To Buy Vietnamese Rice

According to local media reports, the government of Bangladesh is sending an official delegation to Vietnam to lock-in supplies of rice in an attempt to offset defaults in wheat imports.

Iraq Issues Tender To Buy 30,000 MT rice

The Grain Board of Iraq has issued a tender to buy at least 30,000 MT of rice of any origin making it the fifth rice tender this year. Bidders are directed to submit heir offers latest by Aug. 15, and bids would be valid until Aug. 22. The last time Baghdad issued a rice tender was in July when it bought 150,000 MT. Some 120,000 MT were Thai rice purchased at $488.85 a ton and the remaining 30,000 MT were purchased from an Indian company called LMJ at $444/ton. The tender originally asked for 30,000 MT rice.

Insider report on Pakistan rice and flooding situation

This comes from one of my connections in Pakistan. Pakistan is facing severe rains and flood. The Indus river passing through the centre of the country has damaged communication means, properties and crops specially in province of Punjab and Sind, the rice growing areas. Further rains have been forecasted and will be continued till 1st week of September. Cotton, wheat and Pulses crops have damaged / destroyed. It is expected in the coming months prices of essential items will further rise while during the last 2 weeks prices of local rice market have increased by $ 30 - 40 PMT. The water level in Punjab have started falling and it is expected the situation will be clear within next 10days. Currently the big wave of flood water is passing through the Sind province reported some rice growing area Irri-9 and Irr-6 have also been effected by the flood water. The situation will be clear after falling of water level. NEWS FROM NET Pakistan Floods Destroy Crops Worth Billions By news desk on August 13,2010 Flood surges triggered by unprecedented monsoon rains have swept devastating low-lying areas of Punjab and Sindh provinces, the densely populated economic and agricultural heartland of Pakistan with estimates of around half a million MT each of wheat and sugar crops been totally destroyed. Pakistan's Finance Ministry said this week the floods would hit growth and this year's gross domestic product growth target of 4.5 percent would be missed, though it was not clear by how much. Growth was 4.1 percent in the last fiscal year. On damage to the rice crop, the farmers' association put the losses at about 200,000 MT of rice, an estimate also supported by a Singapore-based trading company. The United Nation's Food and Agricultural Organization (FAO) has also warned of serious threats to the livelihoods and food security of millions. The U.N. has started a $460 million appeal for aid on Aug. 11 and the U.S. has pledged $55 million in assistance. The U.K. allocated 16.8 million pounds ($26 million) and earmarked up to 31.3 million pounds for relief aid

Facts about Pakistan's key crops after floods

Massive floods in Pakistan that killed up to 1,600 people also destroyed crops over an estimated area of more than 1.6 million acres (647,497 hectares), farmers and industry officials say. The government says exact damage to crops is yet to be assessed. More damage is expected as the floods head southward. Following are some facts about the main crops. WHEAT STOCKS AND PROSPECTS FOR EXPORT Wheat stocks soared this year after a bumper crop of 23.86 million tonnes in 2009/10, and a carryover of 4.2 million tonnes from the previous crop when Pakistan harvested 24 million tonnes. In April, the government said after setting aside 1 million tonnes for strategic reserves, it still had a 2 million tonnes surplus which would be exported. But it had held back because of low prices in the international market before a recent rally. The floods have damaged up to 600,000 tonnes of wheat stocks, according to initial estimates. Traders say the country, Asia's third-largest wheat producer, still has ample stocks for export. Food ministry officials said this month wheat export was still under consideration, but the government was unlikely to make a decision until it had a complete assessment about the losses and prospects of the next crop. Pakistan banned wheat exports in 2007 because of shortages and high prices in the domestic market. COTTON IMPORTS TO GO UP Pakistan in April hoped to produce 14 million bales of cotton in the 2010/11 season, compared with about 12.7 million bales the previous financial year (July-June), when the country had to import about 2 million bales. This target is unachieveable now. The floods have damaged up to 2 million bales over an area of 700,000 acres (283,279 hectares), and traders say Pakistan will have to import up to 3 million bales to make up for the shortfall. A Pakistani cotton bale weighs 170 kg. Traders said buying will be mainly from the United States and India. Despite being the world's fourth biggest cotton producer, Pakistan annually imports between 1.5 million and 2 million bales to feed its textile industry. SUGAR DAMAGE BEING ASSESSED, IMPORTS LIKELY Pakistan has made a series of purchases in the international market this year following estimates its 2009/10 crop has produced little more than 3 million tonnes of white sugar against an annual demand of 4.2 million tonnes. Pakistan this month bought a total of 525,000 tonnes of sugar in two separate contracts. The next crop, due in November, was expected to produce about 3.8 million tonnes of white sugar before the floods struck. A farmer association official said last week the output of refined sugar would fall by 500,000 tonnes. A Food Ministry official said the extent of damage to the crop was still being assessed and it was centred in a relatively small area of about 100,000 acres (40,468 hectare) -- meaning less damage than the above estimate. Millers say Pakistan will need to import only if production falls below 3.6 million tonnes. SMALLER SURPLUS FOR RICE EXPORTS The floods have affected the rice crop over an estimated area of about 200,000 acres (80,937 hectare), which means an expected loss of about 200,000 tonnes of milled rice. A rice industry trader said the loss could be up to 15 percent of the total output target of 6 million tonnes the government had set for this year. Less output means Pakistan will have a smaller surplus for exports. Pakistan had a bumper crop of 6.7 million tonnes of milled rice in 2009/10 and exported about 4.5 million tonnes, traders say. But a U.S. Department of Agriculture attache in Pakistan said in a report last week that the country exported 3.75 million tonnes of rice in 2009/10. Attache reports are not official USDA data.Harvest of non-basmati rice begins in late September and the basmati harvest a month later.

India domestic rice price

Pusa-1121 (steam) ruled at Rs 5,000-5,150 a quintal. Pusa-1121 (sela) was quoted at Rs 4,000-4,050; while Pusa-1121 (raw) was quoted at Rs 5,000-5,150. Pusa (sela) variety was quoted at Rs 3,050 a quintal and Pusa (raw) ruled at around Rs 3,900. Basmati Sela ruled at around Rs 6,000 a quintal, while basmati raw was quoted at Rs 7,100. The Sharbati sela variety ruled at around Rs 2,800 and Sharbati steam was quoted at Rs 2,900-3,000. Permal (PR) sela was quoted at Rs 2,000-2,150; PR (raw) at Rs 2,060-2,250; and PR (steam) at Rs 2,210-2,350. Brokens such as Tibar ruled at Rs 3,450 a quintal, Dubar at Rs 2,800, and Mongra at Rs 2,000.

Rice Crop to Reach Record as India Farmers Boost Sowing to Counter Drought

India, the world’s second-biggest rice grower, may have a record harvest this year as increased planting offset drought in the east of the country. Production may total 100 million metric tons in the year ending June 2011, compared with 89.3 million tons a year ago, said Vijay Setia, president of All India Rice Exporters’ Association. Output was a record 99.2 million tons in the year ended June 30, 2009, according to the farm ministry. “It will be a bumper crop this year as overall rains have been good and the government has distributed hybrid and good quality seeds,” Setia said in a phone interview from the northern city of Karnal. A record harvest may prompt the government to lift a two- year-old restriction on exports at a time when global demand is expected to increase as surging wheat prices encourage buyers to switch to rice. Rice exports from Pakistan, the world’s third- largest shipper, are expected to slump after a flooding damaged crops in areas accounting for 90 percent of agricultural output. Indian farmers had planted 27.4 million hectares of rice (67.7 million acres) as of Aug. 13, compared with 25.1 million hectares a year earlier, the farm ministry said last week. The condition of the crop in 16 out of the 19 major rice-growing states is “normal,” the ministry said. Crop conditions are “poor” in Bihar and “satisfactory” in Kerala and West Bengal, the biggest grower, it said. “According to preliminary reports we expect a 75 percent loss in rice production,” Ashok Kumar Sinha, the Bihar state government’s agriculture production commissioner, said in an interview yesterday. “A real assessment will be made in a week as the dry spell is still continuing.” The harvest may not be affected by drought in Bihar, Jharkhand, West Bengal and eastern parts of Uttar Pradesh, Farm Minister Sharad Pawar said in New Delhi yesterday. Rainfall in the June-September monsoon, the main source of irrigation for the country’s 235 million farmers, was 4 percent lower than average as of yesterday, according to the state-owned weather bureau. Rain in Bihar was 29 percent lower than normal, and 31 percent deficient in West Bengal. The crop in West Bengal will be lower than the 14.8 million tons last year because of drought in 11 districts, Narendranath Dey, farm minister of the state, said by phone today. Food grain production in Jharkhand may be less than last year’s 2.2 million tons, said Deepak Singh, agriculture director with the Jharkhand government. Rice accounts for 85 percent to 90 percent of the grains in the state, he said. Rice futures in Chicago last month lost their premium over wheat for the first time since March 2008 as the worst drought in Russia in at least 50 years, dry conditions in Europe and rains in Canada curbed global wheat supply and pushed prices to the highest in almost two years. The price climbed to $16.27 per 100 pounds last December on concern that India may become a net importer for the first time in more than two decades and as the Philippines boosted imports after storm destroyed crops. Rice for November delivery traded at $11.17 at 5:47 p.m. Singapore time. Almost 700,000 hectares of standing crops in Pakistan are either underwater or destroyed by floods, the United Nations’ Food & Agriculture Organization said on Aug. 11. Pakistan was expected to export 3.8 million tons of rice this year, more than 10 percent of the estimated global shipments of 30.4 million tons, according to the FAO, which made the forecast in July, before the flooding. India won’t lift a ban on exports as it needs grains for supply to the poor at subsidized rates, Pawar said on Aug. 10. There are “prospects” to export wheat after a recent surge in global prices, Trade Secretary Rahul Khullar told reporters in New Delhi today. The government banned exports of all grades of rice except the aromatic Basmati variety in April 2008, to increase domestic supplies. The restriction remains in place as a drought in 2009 pared production by 10 percent in the year ended June 30. The country’s rice reserves on July 1 were 24.26 million tons, more than double the normal buffer of 9.8 million tons, according to data compiled by the state-run Food Corp. of India.

Thailand should release rice stocks

Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, said yesterday that Vietnam, which is a major rival, is expected to export about 3.2 million tonnes of rice in the second half of the year, down from 4 million tonnes in the first half. "The Thai government must take this opportunity to release rice, as there's a lower supply in the market," he said. The sales should be in small lots to minimise any impact on the market, he said. The price of rice in the world market is expected to climb after Vietnam hiked its export price because of lower production. Vietnam recently sold 200,000 tonnes of white rice to Bangladesh, while China is interested in purchasing 600,000 tonnes, leading the price for Vietnamese rice to bulge from US$350 a tonne last month to $390 [Bt12,400] this month. Manat Soiploy, director-general of the Foreign Trade Department, said the government planned to dispose of some of its rice inventory soon, but could not reveal details as that could panic the market. "The ministry has considered releasing rice in many channels. The method will ensure that the market price will not be affected sharply, as the government is one of the major rice holders," he said. Thailand is expected to export about 8.5 million tonnes of rice this year after shipping out about 4 million tonnes in the first half, he said.

Ample rice supply boosts Vietnam exports beyond annual target

Vietnam may ship 7 million tons of rice this year, 17 percent higher than the annual target, as there is ample supply of the grain, an agriculture official said. The country has harvested more than 26 million tons of paddy so far this year and is set to reap another 13 million tons in the remaining months, Nguyen Tri Ngoc, director of the Cultivation Department at the agriculture ministry, told the Vietnam Economic Times Monday. He said there would be sufficient rice for the domestic market even if 6.5-7 million tons of rice were exported this year. Local food companies have stocked around 1.4 million tons of rice, he added. Vietnam, the world’s second largest rice exporter after Thailand, had planned to export 6 million tons of the grain this year. So far, more than 4 million tons valued at around $2 billion have been shipped, according to official figures. Ngoc said there is no need to worry about rice supplies in Vietnam now, but the country is short on other grains used as animal feed. Vietnam still has to import huge amounts of corn and soya bean meal, he said.

Philippines may import rice this year

The government might have to import rice as the dry spell caused by the El Niño phenomenon reduced domestic rice production by about 10 percent in the first half of the year, the Department of Agriculture (DA) said Monday. Agriculture Secretary Proceso Alcala said 6.6-million metric tons of rice were produced in the first half of 2010 compared to the 7.3-million MT produced in the same period last year. The country may have to import rice this year due to the dismal rice output, he said. “We are studying this thoroughly, maybe the output of the first semester of 2011 will cover the decline. Within the next 10 days, we will make a decision on whether we need to import,” Alcala said in a press briefing Monday. According to DA officials, the drought delayed the planting of rice in the provinces, which led to the production slump. With the losses in the first semester of 2010, Alcala said it would be impossible to reach the rice production target of 17.4-million MT for this year. “For sure, we won’t be able to meet (it),” he said. But should the DA call for rice imports, it would have to be just half of the 2010 imports, Alcala said. “The projection is that by 2013, we will be sufficient. We might still import in 2011 and 2012, but it won’t be as much as in 2010,” he said. The Philippines—already the world’s top rice importer, has bought as much as 2.47-million MT of the commodity to fill its requirements for 2010. The importation of rice by the Arroyo administration in the past few years was criticized recently by some Aquino government officials who said it was a scam and a source of corruption. Much of the imported rice has been found undistributed in National Food Authority (NFA) warehouses. To address the glut in imported rice, NFA chief Lito Banayo said early this month the country would not issue tenders for the rest of the year. According to DA statistics, total agricultural production contracted by 2.59 percent, a disappointing result compared to 2009’s 1.49-percent growth. Of the four agricultural sectors—the other three are livestock, poultry and fisheries—the DA said the crops sector suffered the steepest decline at 6.72 percent. In its semester report, the DA said palay production was down by 10.24 percent, while corn declined by 24.59 percent.

China Floods Boost Pests, Threaten Rice Crops

China’s mid-season and late-season rice crops face increasing threats from pests after widespread floods this summer made conditions ideal for insects to breed, the Ministry of Agriculture said today. Twice the amount of pests as last year were detected among crops in provinces from southwestern Guizhou to eastern Zhejiang, the ministry said in a statement on its website. Delayed planting and hotter weather in August and September will also boost breeding, it said, without giving the extent of the damage. China’s early-season rice harvest may decrease by 2.4 percent from last year, or 800,000 metric tons, because of floods, state-owned China National Grain & Oils Information forecast Aug. 4. Total output may still gain 0.8 percent to 196.6 million tons as mid-season and late-season crops are projected to more than offset the losses, it said. The ministry has started a campaign to save crops after the State Council last week urged main farming areas to boost production, the statement said. The government allocated 155 million yuan ($23 million) in emergency funding to promote measures including the proper application of pesticide chemicals, the statement said. Early, mid and late-season crops make up 16.5 percent, 65 percent and 18.5 percent of the harvest, respectively, according to the grain center report. Traders in Vietnam, the second-biggest rice exporter, may have “unofficially” shipped about 600,000 tons to China this year across the nation’s northern border, according to the Vietnam Food Association. Most of the shipments were made from April to July amid signs of increased demand from China, Huynh Minh Hue, general- secretary of the association, said Aug. 16 by phone. Through official channels, Vietnam has shipped less than 100,000 tons to China this year, Hue said. China’s rice output may fall as much as 7 percent this year after floods, Li Qiang, managing director at Shanghai JC Intelligence Co., said this month.

Rising domestic prices in Vietnam threaten rice exports

Rice exporters are facing difficulties negotiating export prices due to domestic rice price increases, said the Viet Nam Food Association. The association said this increase had made farmers happy but brought concerns to exporters. The exporters would have more difficulty in confirming export contracts because they could not compete with rival countries. Over the last two weeks, rice prices have risen by VND500-1,000 per kilo to VND4,100-4,400 for low-quality rice, VND4,800 per kilo for medium-quality rice, and VND5,500 per kilo for high-quality rice. Increasing demand from China was a reason for the increase in domestic rice prices, the association said. If prices remain as they currently are, exporters would face losses based on the export contracts already signed, it said. The Ministry of Industry and Trade said exporters had created the problem for themselves as they had not correctly forecast market movements and some had deliberately under-cut rival companies with unrealistically low prices to win export contracts. The ministry said the exporters needed to unite to keep rice export prices at a high level to ensure the best interest of both exporters and farmers. Enterprises are continuing to purchase rice from farmers, according to a Government programme to stockpile an million-tonne temporary rice reserve. Forty-eight VFA member-enterprises have so far purchased 550,000 tonne. Exporters have signed contracts until the year-end to export 6.2 million tonnes of rice, the association said. Last month, they signed contracts to export 178,000 tonnes to Bangladesh. They expected this month to sign contracts for 220,000 tonnes of rice. Vietnamese exporters would also deliver by the end of this year 51,300 tonnes of rice according to already-signed contracts with the Philippines. In the first seven months of this year, the country exported a total of 4.1 million tonnes of rice, earning US$2.01 billion. This marked a year-on-year decline of 2.5 per cent in volume but a year-on-year increase of 3.4 per cent in value. A bright spot Tien Giang Food Co exported more than 150,000 tonnes of rice from January to August 16, earning a total turnover of US$41 million and meeting 60 per cent of this year’s target. Nguyen Quoc Truc, deputy director of the company, said the average export price was more than $400 for each 5 per cent broken-rice tonne, an increase of $70 compared to the same period of last year. Besides the traditional markets of the Philippines, Indonesia and Bangladesh, the company has also exported rice to the US. The company aims to meet this year’s export target of 250,000 tonnes of rice, and has invested more than VND94 billion ($4.9 million) to build warehouses for rice storage and agricultural product preservation for exports. Ensuring supplies The Cuu Long (Mekong) Delta province of Bac Lieu will ensure enough rice supply for local consumption as well as fulfilment of export contracts until the end of the year, a local official has assured. Bac Lieu is now harvesting 55,000ha of summer-autumn rice crop with an output of five tonnes per ha. When the summer-autumn crop harvest is completed, the province will continue growing this year’s third rice crop on an area of 50,000ha. The province’s rice output will exceed local consumption demand and export contract commitments from now until the end of the year, local officials said. They warned farmers not to stock rice because current prices are high, explaining they could fluctuate when the Delta provinces entered peak harvest period for the summer-autumn crop at the end of this month.

Vietnam paddy rice price rising

The price of unhusked rice in the Mekong River Delta has continued to rise because of a sharp increase in both demand and the price of rice for export. Currently, traders buy unhusked rice at VND 4,200 per kilogramme in An Giang, and Dong Thap provinces, an increase of VND 400 – 500 per kilogramme compared to late July. Local farmers now gain a profit of VND 13 – 15 million per hectare. According to the Vietnam Food Association, enterprises have signed contracts to sell 6.2 million tonnes of rice so far.

Vietnam Minimum rice price to remain unchanged

The Vietnam Food Association (VFA) decided June 3 to keep the minimum price for the purchase of Mekong Delta farmers’ summer-autumn rice harvests unchanged from last month at VND4,000 per kilogram. The price management mechanism will be flexible to encourage domestic sales and dispose of rice stocks, said VFA at a meeting held in An Giang Province in June 6. VFA member companies admitted that the consumption of summer-autumn rice would be slow. However, they said, it was necessary to start the buying now, otherwise, the situation will worsen and the region will again face the “bumper crop, low price” situation that hurt many farmers during the last winter-spring crop. In the last winter-spring crop, under Government instructions, VFA bought 1.5 million tons of rice from farmers at a minimum price of VND4,000 per kilogram to stabilize prices and help farmers profit by at least 30 percent. Farmers expect to harvest about eight million tons of unhusked rice in mid-June amid forecasts that prices will be low. According to VFA, some 712,000 tons of rice were exported in May while the target set for May was 650,000 tons. The delivery volume was the highest ever after beating the previous record delivery of 710,000 tons made in April 2009. The average export price was US$454.03 per ton, up US$42.54 over the same period last year. Rice exports surged sharply in April and May, to 1.4 million tons. However, rice stocks reduced only slightly as the exported rice was supplied from already available sources on the market. The stock left from the purchase of the last winter-spring rice harvests is now about 1.5 million tons.

Rice experts are set for crucial meet in Vietnam

Rice-producing countries, farmers, traders, exporters and importers will have an opportunity to learn more about rice businesses, new rice varieties, technology and market trends at the International Rice Congress 2010. This congress comes as farming area is declining, the effects of climate change are being felt, and global rice consumption is growing. The International Rice Congress 2010, the world's largest gathering of rice scientists, researchers and technology experts will be held from November 8-12 in Hanoi at the Vietnam National Convention Centre. Hosted by the Vietnamese Ministry of Agriculture and Rural Development of and organised by the International Rice Research Institute (IRRI), this year's theme is "Rice for Future Generations". Phuc Tuong, principle scientist, water science, of IRRI's Crop and Environmental Science Division, said it is expected that more than 1,000 visitors will participate in this event. Tuong, who is also chairman of the organising committee of IRC 2010, added that a number of conferences will be held parallel to the event. The International Rice Research Conference and the Rice for the Future Generation Conference will focus on how science can help farmers to grow rice efficiently with satisfactory yields. In addition, it will also look to ensuring that succeeding generations of farmers can grow rice. The International Rice Policy and Investment Conference is a new forum created to provide more |information to those who want |to invest in related rice businesses such as farm machinery and tools, farm technology and farm management. Rice exhibitions will allow farmers, companies related to the rice industry and researchers to present their products and innovations. And a ministerial roundtable |discussion will create a forum for the private sector to share ideas |with government officials and agriculture ministers from member countries. Here, both sides will exchange ideas on a variety of issues such as climate change, balancing prices, foreign direct investment, sustainable development and rice security in Asia. Finally, it is a good occasion to celebrate the 50th IRRI anniversary. "It has also created a great opportunity for IRRI to connect more with the private sector to seek more financial support. IRC is also a vehicle to drive our long-term objectives in providing knowledge and technology," said Tuong. Samarendu Mohanty, head and senior economist of the Social Sciences Division of IRRI, said the rice business needed to draw more investment into manufacturing plants for machinery, rice mills, and also into research and development. "The investment will improve production potential in rice-producing countries such as Laos, Cambodia, Burma, Vietnam and African nations where their production is still low," Mohanty said. Mohanty added that IRRI wants to see investment in the rice and agricultural sector put into improving yields and the rice-supply chain, rather than into purchasing land to grow rice for commercial purposes. "Investment in the agricultural sector has been declining for 20 years," said Mohanty.

Vietnam to Hold Coffee, Rice Export Volumes Steady

Vietnam, the world’s second-largest rice exporter and second-biggest producer of robusta coffee, aims to maintain its current export volumes of both commodities during the next decade, the country’s minister of agriculture and rural development said. “Our strategy in the next 10 years is to improve the quality and to add more values to the commodities to increase the export values, rather than concentrate on raising the volumes,” Cao Duc Phat said in an interview today at the World Economic Forum in Ho Chi Minh City. The volume of Vietnamese rice exports rose 25 percent last year to 5.95 million tons, while their value fell 8 percent from the previous year to $2.66 billion, according to the General Statistics Office in the capital, Hanoi. Vietnam ranks second in rice exports after Thailand. Vietnam’s export volumes of robusta -- one of the world’s two main commercial varieties of coffee, along with arabica -- rose 10 percent to 1.17 million tons, with their value dropping 19 percent to $1.7 billion. Brazil is the world’s top robusta producer, followed by Vietnam. The State Bank of Vietnam, the nation’s central bank, has devalued the dong, the country’s currency, twice since November. The dong has weakened 5.7 percent since Nov. 25, including that month’s devaluation, according to Bloomberg data. The Southeast Asian nation expects its economy to grow this year by between 6.5 percent and 7 percent, up from 5.3 percent last year, Prime Minister Nguyen Tan Dung said today.

Philippines' 11 of 16 regions to register palay-production cuts in Q2

OF the 16 major rice-producing areas in the Philippines, 11 regions will suffer production cuts in the second quarter of the year, according to the survey conducted by the Bureau of Agricultural Statistics (BAS). In its May round of “Rice and Corn Situation Outlook,” the attached agency of the Department of Agriculture (DA) noted that Western Visayas will suffer the biggest decline in paddy -rice production at 60 percent to 75,225 metric tons (MT). The BAS noted that the second-biggest production decline will be posted by Calabarzon at 37 percent to 75,746 MT. Of the 11 regions that will register slashes in production, the Zamboanga Peninsula will suffer the least as paddy-rice production could go down by only 4.7 percent year-on-year to 54,510 MT. “Insufficient water supply from irrigation and rains due to El Niño resulted in unrealized planting intentions,” said the BAS in its report. For the April-to-June period, the BAS forecasted a contraction in area harvested by 6.2 percent and a drop in yield by 3.4 percent year-on-year. Other regions that will suffer paddy-rice production declines during the period include the Cordillera Autonomous Region, Ilocos, Cagayan Valley, Calabarzon, Mimaropa, Bicol, Central Visayas and Soccsksargen. The agency noted that palay production for April to June could decline by 9.4 percent year-on-year to 3.11 million metric tons (MMT). For January to September, paddy-rice production is expected to contract by almost 1 MMT to 9.999 MMT from 10.89 MMT registered in the same period last year. Meanwhile, the BAS projected that 12 out of 16 corn-producing regions in the country will also post production declines during the period. Cagayan Valley, one of the major sources of corn in the Philippines, is expected to cut back production by almost 80 percent year-on-year to 70,950 MT. A year ago, the region produced 341,399 MT of corn. Another major source of corn, Soccsksargen is also projected to post a production decline of 42.7 percent year-on-year to 120,942 MT. Corn production for the entire Philippines during April to June will settle at 816,941 MT, lower by 36.83 percent year-on-year, according to the BAS. “Area harvested may contract from 455,000 hectares to 322,000 hectares due to unrealized planting intentions resulting from insufficient water supply. Yield is expected to drop from 2.84 MT per hectare last year to 2.54 MT per hectare this year,” said the BAS. For January to September, the country’s corn production is expected to go down by 17 percent year-on-year to 4.64 MMT. Production of yellow corn, the main ingredient used for animal feeds, is expected to contract by almost 24 percent to 2.96 MMT.

Vietnam Nearly 2.7 million tonnes of rice exported in five months

Over 700,000 tonnes of rice were exported in May, bringing the total amount of exported rice in the first five months to nearly 2.7 million tonnes worth around US$1.2 billion. These figures were released by the Vietnam Food Association (VFA) at a meeting held in An Giang province on June 3, to review the rice export over the first five months and plan for rice export in June and rice consumption in the summer-autumn crop. The VFA said that Vietnam’s export price of 5% broken rice is currently put at US$370 per tonne, an around US$30 per tonne increase over early April this year. According to the VFA, 700,000 tonnes of rice will be exported in June, making up 3.35 million tonnes in exported rice volume in the first six months, about 300,000 tonnes lower than that of the same period last year.

Droughts and floods threaten in vietnam next rice crop

Experts have warned of difficult times for the upcoming rice crop, from now to the end of the year, with serious droughts threatening the crops on the front end and severe flooding looming on the back. Director of the Central Hydro-meteorology Forecasting Centre Bui Minh Tang made the above statement at a meeting to review the results of the winter-spring rice crop and to launch plans for the summer-autumn crop. He also said that other obstacles, including the threat of the black dwarf stunted disease and shortages of hybrid rice varieties, would seriously affect the productivity of crops from now to the end of the year. According to Tang, the average rainfall from the beginning of this year to present had decreased 20 to 30 per cent in some areas compared to last year, while it had increased from 60 to 70 per cent in other areas. Rain in some areas couldn’t meet both the demands for agriculture production and irrigation work. Currently, water levels in the Hoa Binh, Tuyen Quang and Son La irrigation lakes were at dead levels. In the future, the sunny weather would continue, especially in some northern and central provinces. It was forecast that the average temperature for this year could reach a record high. However, due to the long-lasting drought, storms and tropical low pressure zones would come later than in other years, near the end of the harvest. Central and north-central provinces would have to take measures to cope with the lack of water at the beginning of the crop and with flooding at the end of the crop, Tang said. Regarding measures to cope with diseases, director of Red river delta Thai Binh Province’s Department of Agriculture and Rural Development Nguyen Huu Rong said that the province would plant 45,000ha of rice, an increase of 6,000ha compared to the winter-spring crop. All seeds will be treated with chemical substances before being sowed. Director of the Department of Cultivation Nguyen Tri Ngoc said that for rice crops in low-lying areas that could be affected by flooding, or for those with unstable productivity, farmers should shift to other kinds of crops. For the Song Hong (Red River) Delta, where 70,000 to 80,000ha of rice were planted in low-lying areas, farmers should plant rice varieties with high trunks and good water resistance. Minister of Agriculture and Rural Development Cao Duc Phat said that provinces needed to be well-prepared to carry out preventative measures against the black dwarf stunted disease and to protect against floods near the end of the harvest. Apart from proper conduction of irrigation systems in order to have effective solutions for drought and flood prevention, provinces needed to ensure that they had enough water pumps at pumping stations, and extra pumps to cope with severe flooding, Phat said. Despite difficulties such as drought and black dwarf stunted disease outbreaks, the winter-spring crop still harvested 5.5 million tonnes of rice, equal to last year’s same crop, according to deputy director of the Cultivation Department Pham Dong Quang. Many provinces had started to plant hybrid rice varieties, which accounted for the good yields, including central Thanh Hoa, Nghe An and Ha Tinh provinces. The hybrid rice variety had a high quality and could adapt to a wide range of conditions. It also gave high productivity rates. MARD has targeted foster rice production for the coming crops to fulfil the year’s goal of producing 38 tonnes of rice.

Rice stock rises by nearly a fourth, but corn drops

DESPITE a prolonged dry spell that cut palay production by 11% in the first quarter, the country’s rice inventory at the start of May was up by 24% from a year earlier, data from the Bureau of Agricultural Statistics (BAS) show. However, corn stock dropped 16% as of May 1 from the same period last year, the same data showed. Rice inventory increased to 3.32 million metric tons (MT) last May 1 from 2.68 million MT, year on year. The inventory was also 20% more than the 2.77 million MT at the start of April, the data show. Of the 3.32 million MT, 33% was in households, 14% in commercial warehouses and 53% in depositories of the National Food Authority (NFA). When compared with inventory from the previous year, household inventory was down by 6.4% while commercial warehouse stock was up by 3.6%. Meanwhile, NFA stock, of which 83% were imported rice, increased by 65% to 1.756 million MT from 1.063 million MT last year, according to the data. The May 1 inventory was estimated to be enough to supply the country’s daily needs of 36,300 MT for 93 days, the data show. "The bulk of the rice stock is due to the rice imports last year that have already arrived," NFA spokesman Rex C. Estoperez said in a telephone interview yesterday. The Philippines has ordered 2.45 million MT of rice this year, 2.25 million MT of which was bought by the government and are being shipped in tranches until this month, and the remainder is being brought in by private firms until Sept. 15. "We have a very good inventory of rice. We are ready for the lean months that is expected to start in July [and end in September]," said Mr. Estoperez. Palay production decreased by 11% to 3.49 million MT for the first quarter of 2010 from 3.94 million MT in the same period last year. The Department of Agriculture projected further decrease of 9% in second-quarter production to 3.11 million MT from 3.43 million MT last year, according to the department’s first-quarter report released last May 17. Palay production in the third quarter is seen to decrease by 4% to 3.39 million MT from 3.52 million MT from last year. Meanwhile, corn inventory as of May 1 went down by 16% to 195,000 MT from 232,000 MT in the same period last year. Corn inventory was also lower by 19% from April’s stock of 240,000 MT. Twenty-three percent of corn stock was held by households, 56% by commercial warehouses and 21% in NFA warehouses. BAS data showed a 43% decrease in corn stock in households and a 29% decrease in stock in commercial warehouses, year on year. There were no recorded corn stock in NFA warehouses in May last year. Corn production dropped by 16.8% to 1.6 million MT in the first quarter of 2010 from 1.92 million MT last year due to El Niño. Production was projected to decrease in the second quarter by 37% to 820,000 MT from 1.3 million MT for the same period last year, according to the Agriculture department’s first-quarter report. Moreover, the department projects a 6% decrease in corn production for the third quarter to 2.22 million MT from 2.37 million MT last year.

Rice Futures Fall to 20-Month Low as Demand for U.S. Grain Ebbs

Rice futures fell to a 20-month low in Chicago as demand for supplies from the U.S. declines and production increases. Last month, Iraq bought 90,000 metric tons from Thailand and Vietnam, the world’s biggest exporters. The price at $350 a ton was $100 less than U.S. supplies, said Dennis DeLaughter, the owner of Progressive Farm Marketing Inc. in Edna, Texas. Today, futures tumbled 3.9 percent, the most since January 2009. “When you have a lack of demand, you have a day like we had today in the futures market,” Delaughter said. “The U.S. is just too high. That means we have to go lower. The futures are being led by world demand, and it’s just not there.” Rice futures for July delivery fell 45.5 cents to $11.105 per 100 pounds on the Chicago Board of Trade. Earlier, the price touched $11.06, the lowest level since Sept. 14, 2007. The most- active contract has dropped 25 percent this year. Favorable weather boosted crop prospects in the U.S., the fourth-biggest exporter behind Pakistan. “Most of the crop in Texas looks good, and in Arkansas, it looks good,” said DeLaughter, a rice grower. “Everything we’ve been hearing about the crop is that it looks great.”

India FCI to sell 3 mt of foodgrain at discount

Following a government order, the Food Corp of India (FCI) will sell three million tonnes of food grains at discounted rates during the Jun-Nov period, an FCI official today said. According to the current order, wheat rates have been fixed at Rs 845 per 100 kg as against Rs 1,080 earlier, and rice at Rs 1,185 per 100 kg from its previous minimum support price of Rs 1,455. Last month, a ministerial panel headed by Finance Minister Pranab Mukherjee had declared an ad-hoc allocation of three million tonnes of food grains for sale to ration card holders from June onwards. Accordingly, the government has earmarked 1.69 million tonnes of wheat and 1.38 million tonnes of rice to be sold through the targeted public distribution system during May 31-Nov 30, the official said. Earlier, in January-February, the government had made an allocation of 2.55 million tonnes of wheat and one million tonnes of rice, but states had lifted just 4,20,000 tonnes of wheat and 5,02,000 tonnes of rice from this allocation till May 28. “The earlier scheme was valid till June 1, but in the latest order it has been discontinued and replaced with the new scheme. The sale price has also been reduced and we are expecting better response to the current scheme,” he said. As on May 1, FCI’s foodgrain stocks stood at around 60 million tonnes—33.7 million tonnes of wheat and 26.2 million tonnes of rice, way above the buffer norm requirement.

In India rice Paddy MSP could be hiked marginally

Vietnam to export 700,000 tonnes of rice in June

The Board of Management of the Vietnam Food Association (VFA) will export 700,000 tonnes of rice in June, bringing the total export volume in the first two quarters to 3.35 million tonnes, 300.000 tonnes less than in the same period last year. Despite the signing of large export contracts, Vietnam still has plenty of rice stockpiled as its delivery is being affected by rainy weather. Speaking at a VFA meeting in An Giang on June 3 to review exports in the first five months, VFA Secretary General Huynh Minh Hue said businesses exported 712,007 tonnes of rice in May at an average price of US$417.74 per tonne. In the first five months, Vietnam exported 2.689 million tonnes of rice at an average price of US$454.03 per tonne, US$42.54 higher than the average price in 2009. The VFA Board of management and businesses expressed concern that the Ministry of Finance has not yet set a price for the 2009-2010 winter-spring crop, which may present a problem for the association and its members. According to the VFA, even though rice prices are seeing a slight rise, farmers will have trouble selling their rice due to a slow-down in the market and the low quality of the summer-autumn rice.

India gets permission to export Basmati rice to China

India will soon be exporting its sweet-smelling rice to China, which recently gave its nod for Indian Basmati to enter its markets. "We have finally got permission to export Basmati to China. This is a new thing," said a high ranking Indian official in Shanghai. The issue of Basmati's exports was raised at the last meeting of the Joint Economic Forum in China last January, which had focused on ways to address market access and trade imbalance. So far, the Gulf region has been the biggest market for Basmati rice, but Indian government has been looking to diversify markets to other countries such as China. India's Ambassador to China, S Jaishankar said efforts were being made to improve the profile of Indian products in China. "We are focusing on trade promotion in 17 different cities in China with special focus on IT, pharmaceuticals, agricultural and engineering products," he said. The bilateral trade has grown exponentially in the last ten years - though there was a slight dip last year to $43.2 billion due to the global recession. But, in the last six months, trade has again picked up and increased by 60 per cent, compared to the same period last year. India's exports to China have also risen by 75 per cent, but they have mainly been raw products, like minerals, cotton and cotton yarn. Besides Basmati, India is aiming to increase exports of other agricultural items such as mangoes and okra. "We have been in negotiation for two years for export of okra," an Indian official said. Indian President Pratibha Patil Sunday met chief of Shanghai Communist Party, Yu Zhengsheng, where the issue of improving the trade balance came up. According to Foreign Secretary Nirupama Rao, the senior Chinese leader also stressed the need for balancing trade. She said Yu conveyed that this imbalance was "not good" for China in the long term and assured Patil that the Chinese government was giving serious thought to the problem. President Patil also raised the issue of setting up of Chinese banks in India. There were 11 Indian banks operating in China, with four of them - State Bank of India, Bank of India, Canara Bank and Bank of Baroda - having full-fledged offices. On the last day of her six-day trip, Patil will be addressing businessmen and entrepreneurs at the China Business Forum Monday.

Monsoon arrives but no decision yet on support price

The South-West monsoon has arrived in Kerala. The Met Office is sanguine about the monsoon as atmospheric conditions are said to be developing favourably. After the unkind decline in precipitation last year which resulted in sharp fall in kharif output (especially rice, coarse cereals and oilseeds), farmers are eagerly awaiting the onset of monsoon to begin their sowing operations. But the tragedy is that the Ministry of Agriculture is still grappling with a final decision on minimum support price (MSP) for kharif crops, although rains are almost knocking at the door. The anxiety in the air and among peasants is hardly shared by those in Krishi Bhawan. It is unclear what is holding up the decision and announcement. This correspondent tried to speak with no less than four senior level officials in the Ministry. Almost everyone was out attending meetings - surely not the same meeting. At least one senior official was said to be travelling. A middle-level official, who, for obvious reason should remain unidentified confessed that no decision has been taken on MSP. He was unsure when the decision would be made. Prodded to guess if the announcement about MSP would be made in the next few days, he regretted his inability to mention a timeframe. The India Meteorological Department has forecast a normal South-West monsoon for this year. The high and mighty in the Government including the Prime Minister have laid great hope on monsoon rains to augment domestic farm output and rein in food inflation.

Flood tolerant paddy can make Bangladesh rice exporting nation

Renowned rice scientist and country manager of IRRI-Bangladesh Dr MA Bari has said the country can export rice in near future after meeting its own demand through expanded farming of flood tolerant variety paddies. Bangladesh can produce an additional 60-lakh tonnes of paddy annually to ensure its food security by brining all 12 lakh hectares potential low-lying and flood-prone lands under farming of four such variety paddies amid adverse impacts of climate changes, he said. He said this while distributing seeds of flood tolerant variety paddies among the farmers of sadar union, Belgachha, Halokhana, Mogalbasa, Kanthalbari, Panchgachhi, Jatrapur and Ghoghadaho unions at Bhogdanga union office premises in Kurigram on Saturday. NGO Solidarity organised the seed distribution ceremony with the assistance of International Rice Research Institute (IRRI) and Inter Co-operation with its executive director and valiant freedom fighter Harunur Rashid Lal in the chair. Officials of Solidarity, local farmers, public representatives, member of Technical Working Group of Cereal Systems Initiatives for South Asia and Staff Reporter of BSS Mamun Islam, BSS Kurigram Correspondent Abdul Khalek Faruk, addressed. Dr Bari said Bangladesh goes to large-scale countrywide farming of epoch-making flash-flood tolerant variety paddies from this season after official release of two varieties of the seeds to ultimately produce an additional six million tonnes paddy annually. Distribution of 50 tonnes seeds of Swarna Sub1, BR11 Sub1, IR64 Sub1 and Sambamasuri Sub1 flood-tolerant variety paddies among 25,000 farmers in 21 districts throughout the country has now been nearing completion, he said. A total of 2,000 hectares land would be brought under farming of these paddies in these districts under six agriculture zones this season and the same will also be cultivated on demonstration plots in Rajshahi and Jessore zones to attract the farmers. He urged the farmers to preserve their seeds after harvests of the paddies and suggested all partner NGOs and organisations for taking necessary steps to commercially produce, preserve and distribute quality seeds of these paddies in future. On the other hand, the farmers expressed their happiness following release of the seeds of flood tolerant Swarna Sub 1 as BRRI dhan 51 and BR 11 Sub 1 as BRRI dhan 52 varieties last month by the technical committee of the National Seed Certification Board. Harunur Rashid Lal said his organisation Solidarity successfully cultivated these submergence variety paddies last year and has taken an extended programme for its farming in all nine upazilas in Kurigram during this Aman season. "We are now completing distribution of 4,560 kg seeds of these four flood tolerant entries among 2.280 farmers to bring a total of 304 hectares land under the farming of these paddies in Kurigram this season," he said. It is possible to produce additional two lakh tonnes rice annually in Kurigram alone through farming of these paddies on 40,000 hectares that go under flash-flood water and remain inundated for 10-16 days every year damaging huge Aman paddies, he added. He said that the farmers are now preparing to cultivate these paddies, which can sustain 10 to 17 days submergence under flash flood waters paving the way for producing five tonnes paddy per hectare in the vast flash flood prone areas. Dr Bari said, scientists of BRRI, IRRI, Central Rice Research Institute and Norendra Dev University of Agriculture Technology of India and University of California (UC, Davis & Riverside) developed and validated the epoch-making technology. Bill & Melinda Gates Foundation (BMGF) have been providing financial assistances through IRRI to increase seed productions and disseminate the technology under its Stress Tolerant Rice for Poor Farmers in Africa & South Asia (STRASA) programme. Preparations of seedbeds and transplantation seedlings of all four Sub 1 entries will be completed by July 30 to start harvest with the short duration IR 64 Sub 1 from the end of September and the total harvest will end along with traditional T-Aman, Dr Bari said.

Malaysia Rice imports to continue if too costly to grow own

Malaysia may continue to import rice if the cost of expanding the “Rice Bowl” areas in the country is higher than the cost of importing the commodity. Deputy Minister of Agriculture and Agro-based Industry Datuk Mohd Johari Baharum said currently, the country was importing 30 per cent of the rice needs and the government was studying from the various aspects whether imports would be continued or otherwise. “We are studying whether to produce 100 per cent of our rice consumption or to continue importing 30 per cent of the national consumption,” he told reporters after closing the Kedah Regional Development Authority (KEDA) Meeting the Clients Day programme at Napoh, here yesterday. At the moment, he said, emphasis would be given to efforts at upgrading the areas under the Muda Agricultural Development Authority (MADA) to produce better quality rice. “Under the 10th Malaysia Plan, the ministry is allocating RM140 million to upgrade the areas under MADA. It includes giving compensation to residents because the rivers and canals in the MADA area are located on their land,” he said. Meanwhile, Johari, who is also the member of parliament for Kubang Pasu, said KEDA would build a “Rest and Service Area” (RSA) at Keda Napoh to enable visitors to the area to rest as there was no rest area there currently. The project, costing about RM5 million, would be implemented in June and expected to be ready next year, he added.

Thailand Rice Price - Weekly

Domestic and export prices declined slightly by 1-2 percent due to quiet foreign demand and a weakening Thai Baht. Farmers selling their supplies in this period will gain from the price insurance scheme as market prices are above the benchmark prices.

Australia has rice bumper crop

Rice growers have almost finished harvesting their best-yielding crop in years with production heading towards 200,000 tonnes and the average yield on completed crops around 11 tonnes to the hectare. The harvest looks set to more than triple last year’s 63,000 tonnes and is a big improvement on the 19,000 tonnes produced in 2008, which was the smallest since 1928. It is still well below the average annual crop of around 1.2 million tonnes before the drought set in from 2002.

Uruguay Rice harvest 1.15 million tons

Uruguay's rice harvest reached 1.15 million tons; good prospects for
next crop Uruguay's 2010 harvest of clean, dry rice reached 1.15 million
tons with an average yield per hectare of 7.094 kilos. Total area
planted was 161.900 hectares according to Uruguay's Ministry of
Agriculture Statistics Office.
Crop and yields are below those of the last four years which averaged
8.000 kilos per hectare. Late and abundant rainfall last November
delayed 18% of the area to be planted until December which caused
problems during seeding time, says the report based on a poll taken
between April 20 and 30.
An estimated 94.000 hectares (almost 58% of the rice area) won't be
planted for the next crop because of crop rotation. The land will be
left for pasture to feed livestock.
Regarding next year's harvest all farmers interviewed said they would
repeat rice although a few had yet to decide what area. However assuming
similar planting intentions to this year the total area for the
2010/2011 crop could reach 198.000 hectares, the largest in the last
twelve years (1998/1999).
This has been boosted by a more regular rainfall than when the previous
poll in April 2009.

Iraq buys Vietnamese rice in second tender this month

IRAQ, one of the world's largest importers of wheat and rice, has bought

90,000 tonnes of Vietnamese rice after a tender was issued more than two
weeks ago, an Iraqi grain board official said on Thursday.

"The rice tender has been set to buy 60,000 tonnes from Vina Food
Company and 30,000 tonnes of rice from VIP, an Iraqi-Vietnamese
company," said Hassan Ibrahim, director general of the Iraq Grain Board.
"The purchase was on FOB terms."

Falling rice prices revive demand for OPEC-like cartel

Asian benchmark rice prices are set to fall further due to swelling

supplies, reviving prospects of an OPEC-like cartel of key producers,
the head of a leading Indian rice trading firm said on Thursday.

The idea of an OPEC-like cartel failed to take off after initial
deliberations two years ago when the world faced an acute shortage of
the staple, driving benchmark prices in Thailand to a record high of
$1,000 a tonne.

"I now see a possibility of an alliance of producers like Thailand,
Vietnam, China and India, among others. It will bring stability in
prices which are heading southward," Karan A Chanana, managing director
of the Amira group, a leading rice producer, told Reuters in an interview.

A body of key rice producing nations will help stave off expected fall
in prices in both India and Asia, said Chanana, also a former
secretary-general of the All India Rice Exporters' Association .

The price of 100 B grade Thai white rice RI-THWHB-P1, at $460 per tonne,
has fallen more than a quarter since the middle of December, and traders
in the Thailand, the world's top exporter, say prices are expected to
drop further due to swelling supplies in the region. See [ID:nSGE64P0B5]

EXPORT BAN

While forming a consortium of producers would arrest a sharp drop in
Asian prices, lifting a two-year old ban on exports of non-basmati rice
would help India avoid a glut.

"The government must allow exports of non-basmati rice after the monsoon
season to avoid any excess stock. There is a case for non-basmati
exports now," Chanana said.

The government prefers to watch the progress of monsoon before easing
trade curbs, as the annual June-September rains irrigate 60 percent of
the country's farms.

India, the world's second-biggest producer of the grain, clamped down on
exports of common grades of rice in 2008, joining other leading
producers in their protectionist measures to bolster domestic supplies.

India has also fixed a floor price of $900 per tonne for exports of

Vietnam To Sign Deals To Export 4.6m Tons Of Rice Says Vietnam Food, Association

Vietnamese firms expect to sign contracts to export a total 600,000 tons

of rice to African countries in May, raising the country's total rice
export volume under contracts to 4.6 million tons, said Pham Van Bay,
vice chairman of the Vietnam Food Association.

In the first 20 days of May, local firms had signed deals to sell nearly
400,000 tons to Africa, for US$350 a ton of 5% broken rice, FOB, up
US$20/ton from April.

A delegation of the Vietnam Southern Food Corporation, or Vinafood 2,
has arrived in Brazil to seek opportunities to boost rice export to the
South American market.

Brazil plans to import more than one million tons of rice, giving
chances to Vietnamese rice firms as India and Thailand, two of the
world's biggest rice exporters, are unlikely to supply.

Vietnam plans to export six million tons of rice in 2010, of which 3.3
million tons will be delivered in the first half.

Bangladesh Rice output may drop 7% a year

Rice productivity could decline by 7.4 percent every year until 2050 due

to changing weather.

A study report projects that lost agricultural productivity could amount
to a total loss of $3 billion every year (Tk 210 billion) totalling $121
billion in lost GDP during a 45-year period between 2005 and 2050.

The report on investment in agriculture for higher growth, productivity
and adaptation to climate change projects a likely scenario under the
current weather patterns and finds that the total economy-wide impact in
terms of lost GDP during the period could go up to a staggering $121
billion.

Authored by M Asaduzzaman, research director of Bangladesh Institute of
Development Studies along with Claudia Ringler and James Turlow from the
International Food Policy Research Institute, and Shafiqul Alam from the
agriculture ministry, the report states that climate change also has
broader economy-wide implications.

The study estimates that this would cost Bangladesh $26 billion in terms
of lost agricultural GDP over the 45-year period, equivalent to $570
million per year, "an average annual 1.15 percent reduction in total GDP."

But given Bangladesh's dependence on agriculture, especially in terms of
employment and contribution to GDP, with over 50 percent of the labour
force engaged as farm labourers and accounting for a fifth of the
national GDP, the economy-wide impact of lost agricultural productivity
is quite staggering.

The paper was presented at the first technical session of the two-day
Bangladesh Food Security Investment Forum that began on Wednesday in Dhaka.

Devoting much space and emphasis on climate change the report states
that existing climate variability can have pronounced detrimental
economy-wide impacts. "Future climate change will exacerbate these
negative effects."

Earlier in the morning, prime minister Sheikh Hasina inaugurated the
forum, organised by the Bangladesh government.

Mahbub Hossain, executive director of BRAC, pointed to the

India Rice output may exceed 100 mn tonnes

Rice production of the country may cross 100 million tonnes in the

2010-11 crop year provided there is normal monsoon, Planning Commission
member, Mr Abhijit Sen, said on Wednesday.

"Rice output is likely to be over 100 million tonnes this year if Met
department's monsoon forecast comes true," Mr Sen told reporters on the
sidelines of a function.

If production crosses 100 million tonnes, it will be a new record
surpassing the earlier high of 99.18 million tonnes in 2008-09 crop year
(July-June).

Rice production declined to 89.31 million tonnes in 2009-10 crop year
owing to severe drought, which hit almost half of the country.

Sharing his views on allowing wheat and rice export Sen said, "India can
export wheat next year but no subsidies should be provided. If rice
export is allowed then it should be with export tax on the commodity."

The government had banned wheat export in early 2007 and rice export in
April 2008 to increase domestic supplies and curb prices.

According to official estimates, the country has harvested a record
wheat crop of 80.98 million tonnes in 2009-10 crop year (April-June)
against 80.68 million tonnes in the previous year. Though there is a ban
on wheat and non basmati rice export, the government has allowed the
shipments in small quantities to neighbouring countries and African
nations on diplomatic grounds.

Delivering the 17th Dr B P Pal Memorial lecture today, Mr Sen pointed
out that there is a huge gap in technology reaching agricultural fields.
He suggested the government research body Indian Council of Agricultural
Research to identify villages to prove the success of their technology.

"Gap between lab and fields is a great worry for us. If agriculture
needs to keep moving, we must focus on technology that not only
increases yields but also farmers income," he said.

Mr Sen also observed the country's agriculture is running on subsidies,
which is problematic in the long run as it can "mess up with incentives".

Vietnam Rice Price - Weekly

Rice price offers from exporters remained at low levels last week

because of low buying demand. However, both local paddy and export
prices are expected to increase shortly since the crop harvest has been
completed.

Paddy prices have remained unchanged for over two weeks due to weak
demand from export market.

Thailand develops premium rice to compete vs Vietnam

Thailand, the world's top rice exporter, must expand its shares of the

market for premium-grade grain because it is losing out to Vietnam in a
Southeast Asian price war for lower-quality white rice, a senior
official said.

Thailand aimed to produce an extra 160,000 tons of premium-grade white
rice in the current 2010-11 crop, expanding planted area by around
64,000 hectares, said Prasert Gosalvitra, director-general of the rice
department in the Agriculture Ministry.

"The 160,000 tons is a conservative figure as we will not only increase
plantations but also increase our yield as well," Mr. Prasert told
Reuters on Monday.

Thailand currently produces around seven million tons of premium
fragrant rice out of total annual production of 30 million-32 million
tons. Premium-grade fragrant rice was quoted at $900 per ton this week.

Simple white rice grades were quoted at around $435-$465 per ton,
traders said. That is down by about a quarter this year and well under
half the record high of $1,080 per ton set in April 2008.

Thailand's fragrant rice is popular, but output is limited as it can be
grown only once a year.

The 10-member Association of Southeast Asian Nations (ASEAN) implemented
a free trade deal on rice this year.

This has cut import tariffs on rice to zero, and Vietnam has seized the
opportunity to export more grain to member countries due to its
competitive prices.

The Philippines, the world's biggest rice importer, has been a big
customer. It has ordered a record 2.45 million tons of rice for this
year, of which more then 90% will come from Vietnam.

Vietnamese 5% broken grade white rice was at $360 per ton this week,
well below the same grade of Thai rice at $435 per ton, exporters said.
"We can't compete with Vietnam on white rice any more. We need to go
upmarket, where I think we can do well as Vietnam can't produce
premium-grade rice," said Chookiat Ophaswongse of the Thai Rice
Exporters Association.