Brazil's grain crop is expected to reach 140.7 million tons in 2010, up 5.2 percent from last year, according to a projection released by the Brazilian Institute of Geography and Statistics (IBGE) on Thursday.
According to the projection, the cultivated area in the country would reach 48.1 million hectares, up 2 percent from 2009. The area cultivated for soybeans is to rise 5.8 percent from last year, while the areas cultivated for corn and rice are to fall 7.1 and 2.1 percent, respectively.
Rice, corn and soybeans would take up 81.4 percent of the cultivated area in Brazil.
The soybean crop is expected to reach 65.2 million tons, up 14.4 percent from 2009; the corn crop would reach 32.8 million tons, down 3.2 percent; and the rice crop 12 million tons, down 5 percent.
Production of other products would also increase in 2010, such as beans (17.9 percent), coffee (15.2 percent) and potatoes (1 percent). The production of peanuts, on the other hand, is expected to fall 10.6 percent, while the production of cotton would fall 1.1 percent.
The 2009 grain crop was estimated at 133.8 million tons, down 8.3 percent from 2008. Despite the decrease, the grain crop is the second highest ever registered.
Friday 29 January 2010
Rice price on rise in Bangladesh despite big stock
Rice price rose by five to 18 percent in last one month in spite of the 11.5 lakh metric tonnes of the grain in government stocks and projected Aman production of 1.3 crore tonnes.
Prices of fine rice now range from Tk 32 a kilogram to Tk 44, while medium quality and coarse rice prices range from Tk 26 to Tk 33 a kg, according to a Trading Corporation of Bangladesh report released on January 6.
Meanwhile, rising by 7 to 15 percent, flour now sells at Tk 22 to Tk 34 a kg, which was Tk 19 to Tk 32 a month back.
Agronomists say the price hike is basically driven by high international prices, especially as India and Philippines faced production shortfall in droughts and typhoons respectively late last year.
India lost 15 million metric tonnes of production while the Philippines imported 2.5 million metric tonnes of rice last year. Rice price in India remains $330 to $470 per tonne, while Thailand is not exporting rice at prices below $500 per tonne. India also maintains bans on rice export since 2007.
Agreeing to that Food and Disaster Management Minister Dr Abdur Razzaque said cold wave, which hampered milling of rice, also contributed to the rise.
"This price is not very intolerable and once the cold wave goes, market will be stable," he also said at a media briefing at his ministry.
He stressed starting open market sales to stable market if necessary saying the ministry already allocated 3,20,750 tonnes of rice for Food for Work and Test Relief.
Meanwhile, economist Dr Mahabub Hossain said present price of rice is acceptable provided that farmers get benefit from it, but traders' syndication may manipulate it in line with international prices.
He said rice situation now in domestic market is good and so there is no reason for any further price hike.
Domestic annual rice demand is 2.7 crore tonnes, while this fiscal year's production is projected at 3.2 crore tonnes, including 1.9 crore tonnes boro next season, Dr Hossain said.
On wheat price hike, Shahidul Islam, former director of the Department of Agriculture Extension, said wheat prices now depend largely on international market, as domestic wheat production declined to only 7 lakh metric tonnes from some 20 lakh tonnes a decade back.
Last year, the wheat prices increased by 20 percent late in November compared to September, mainly because of price developments in other markets, especially maize and rice, says Food Outlook -- a monthly Internet based newsletter of the Food and Agriculture Organization (FAO) released in December.
In November, the price of United States' wheat averaged $228 per tonne, up 14 percent from September.
Under such realities, experts suggested efficient supply chain management and to ensure good Boro production this season.
“As wheat price is low compared to rice in the international market, the government can import in bulk and use them for social safety net programmes,” Mahabub Hossain said.
Shahidul Islam said the government already announced subsidies in fertilizers and diesel, which was good, but a declaration of the rice procurement now -- to check any crisis -- can encourage farmers to grow more rice.
Food minister said his office was intensively monitoring the price spiral and intervened the market in any need.
“But, we also have to remember better prices work as incentives for farmers to grow more crops,” he said.
About wheat import in bulk, the minister said the government is importing three lakh tonnes. Besides at private level, around 16-17 tonnes of wheat was imported, Razzaque noted.
Prices of fine rice now range from Tk 32 a kilogram to Tk 44, while medium quality and coarse rice prices range from Tk 26 to Tk 33 a kg, according to a Trading Corporation of Bangladesh report released on January 6.
Meanwhile, rising by 7 to 15 percent, flour now sells at Tk 22 to Tk 34 a kg, which was Tk 19 to Tk 32 a month back.
Agronomists say the price hike is basically driven by high international prices, especially as India and Philippines faced production shortfall in droughts and typhoons respectively late last year.
India lost 15 million metric tonnes of production while the Philippines imported 2.5 million metric tonnes of rice last year. Rice price in India remains $330 to $470 per tonne, while Thailand is not exporting rice at prices below $500 per tonne. India also maintains bans on rice export since 2007.
Agreeing to that Food and Disaster Management Minister Dr Abdur Razzaque said cold wave, which hampered milling of rice, also contributed to the rise.
"This price is not very intolerable and once the cold wave goes, market will be stable," he also said at a media briefing at his ministry.
He stressed starting open market sales to stable market if necessary saying the ministry already allocated 3,20,750 tonnes of rice for Food for Work and Test Relief.
Meanwhile, economist Dr Mahabub Hossain said present price of rice is acceptable provided that farmers get benefit from it, but traders' syndication may manipulate it in line with international prices.
He said rice situation now in domestic market is good and so there is no reason for any further price hike.
Domestic annual rice demand is 2.7 crore tonnes, while this fiscal year's production is projected at 3.2 crore tonnes, including 1.9 crore tonnes boro next season, Dr Hossain said.
On wheat price hike, Shahidul Islam, former director of the Department of Agriculture Extension, said wheat prices now depend largely on international market, as domestic wheat production declined to only 7 lakh metric tonnes from some 20 lakh tonnes a decade back.
Last year, the wheat prices increased by 20 percent late in November compared to September, mainly because of price developments in other markets, especially maize and rice, says Food Outlook -- a monthly Internet based newsletter of the Food and Agriculture Organization (FAO) released in December.
In November, the price of United States' wheat averaged $228 per tonne, up 14 percent from September.
Under such realities, experts suggested efficient supply chain management and to ensure good Boro production this season.
“As wheat price is low compared to rice in the international market, the government can import in bulk and use them for social safety net programmes,” Mahabub Hossain said.
Shahidul Islam said the government already announced subsidies in fertilizers and diesel, which was good, but a declaration of the rice procurement now -- to check any crisis -- can encourage farmers to grow more rice.
Food minister said his office was intensively monitoring the price spiral and intervened the market in any need.
“But, we also have to remember better prices work as incentives for farmers to grow more crops,” he said.
About wheat import in bulk, the minister said the government is importing three lakh tonnes. Besides at private level, around 16-17 tonnes of wheat was imported, Razzaque noted.
Thailand to sell from stocks
The government is preparing to open bids to sell between 300,000 and 500,000 tonnes of rice in an attempt to bring down its high stockpiles.
Commerce Minister Porntiva Nakasai said a committee overseeing rice sales would meet next week to discuss the plan, with the maximum amount unlikely to exceed 500,000 tonnes.
The government is estimated to carry about 6 million tonnes of rice, 90% of which is new rice harvested from the 2008-09 season, with old rice from 2004-05 making up 10,000 tonnes.
Mrs Porntiva said the government's rice selling plan was unlikely to affect local rice prices, as rice prices have been high lately and the new bids would not be from overly large lots.
Chookiat Ophaswongse, the honorary president of the Thai Rice Exporters Association, agreed that now was an opportune time for authorities to shed state rice stocks, as world prices were strong and large volumes of paddy would not enter the market until the end of February and March when the country enters the second-crop season.
Mr Chookiat also urged the government to pay attention to opportunities to sell rice to Iran, Saudi Arabia and Malaysia.
Iran and Saudi Arabia each import about one million tonnes of rice a year and Malaysia about 900,000 tonnes.
Thailand recently secured an agreement to export up to 370,000 tonnes of duty-free rice to the Philippines as compensation for Manila's refusal to cut tariffs on the commodity
Commerce Minister Porntiva Nakasai said a committee overseeing rice sales would meet next week to discuss the plan, with the maximum amount unlikely to exceed 500,000 tonnes.
The government is estimated to carry about 6 million tonnes of rice, 90% of which is new rice harvested from the 2008-09 season, with old rice from 2004-05 making up 10,000 tonnes.
Mrs Porntiva said the government's rice selling plan was unlikely to affect local rice prices, as rice prices have been high lately and the new bids would not be from overly large lots.
Chookiat Ophaswongse, the honorary president of the Thai Rice Exporters Association, agreed that now was an opportune time for authorities to shed state rice stocks, as world prices were strong and large volumes of paddy would not enter the market until the end of February and March when the country enters the second-crop season.
Mr Chookiat also urged the government to pay attention to opportunities to sell rice to Iran, Saudi Arabia and Malaysia.
Iran and Saudi Arabia each import about one million tonnes of rice a year and Malaysia about 900,000 tonnes.
Thailand recently secured an agreement to export up to 370,000 tonnes of duty-free rice to the Philippines as compensation for Manila's refusal to cut tariffs on the commodity
Philippines to buy 584,000 MT unmilled rice locally
The National Food Authority aims to buy 584,000 tonnes of unmilled rice locally in 2010, just over half of its target last year, amid abundant stocks following hefty imports, a senior government official said Thursday.
The world's biggest rice buyer contracted to import a total 1.82 million tonnes of milled rice from four tenders in November to December, the bulk of them from Vietnam, and is using its option to order 25 percent more from those suppliers.
That would bring the country's 2010 rice imports to 2.27 million tonnes, for delivery between January and June, near the record 2.3 million tonnes it purchased in 2008.
''Our stocks are enough to tide us during the lean months from July to September,'' Romeo Jimenez, director at state-run NFA, told Reuters in a phone interview.
''I'm confident we won't need to do another tender in the first quarter unless there's a major calamity.''
Manila advanced rice imports for 2010 after strong typhoons hit major rice-growing areas in the main Luzon island in September and October, destroying 1.3 million tonnes of paddy rice.
Asian rice prices eased this week after the Philippine tenders ended, having gone up more than 21 percent last month from 2009 lows, when Manila held three import tenders for 600,000 tonnes in a span of three weeks.
Besides tenders, the Philippines also has the option to import rice via government-to-government arrangements, the last one bein done last year with Vietnam, for 1.5 million tonnes.
Manila has offered to buy 370,000 tonnes of rice a year tariff-free from Thailand in exchange for refusing to cut rice duty fully under a regional trade agreement, according to Thailand's commerce minister on Thursday.
The NFA said it bought 450,000 tonnes of paddy from local farmers in 2009, less than half of its target of 1.05 million tonnes, because of the destruction caused by the storms.
The world's biggest rice buyer contracted to import a total 1.82 million tonnes of milled rice from four tenders in November to December, the bulk of them from Vietnam, and is using its option to order 25 percent more from those suppliers.
That would bring the country's 2010 rice imports to 2.27 million tonnes, for delivery between January and June, near the record 2.3 million tonnes it purchased in 2008.
''Our stocks are enough to tide us during the lean months from July to September,'' Romeo Jimenez, director at state-run NFA, told Reuters in a phone interview.
''I'm confident we won't need to do another tender in the first quarter unless there's a major calamity.''
Manila advanced rice imports for 2010 after strong typhoons hit major rice-growing areas in the main Luzon island in September and October, destroying 1.3 million tonnes of paddy rice.
Asian rice prices eased this week after the Philippine tenders ended, having gone up more than 21 percent last month from 2009 lows, when Manila held three import tenders for 600,000 tonnes in a span of three weeks.
Besides tenders, the Philippines also has the option to import rice via government-to-government arrangements, the last one bein done last year with Vietnam, for 1.5 million tonnes.
Manila has offered to buy 370,000 tonnes of rice a year tariff-free from Thailand in exchange for refusing to cut rice duty fully under a regional trade agreement, according to Thailand's commerce minister on Thursday.
The NFA said it bought 450,000 tonnes of paddy from local farmers in 2009, less than half of its target of 1.05 million tonnes, because of the destruction caused by the storms.
Intl buyers to talk rice with Cambodia producers
Rice buyers from Poland, Russia, Belgium and Pakistan plan to meet with Cambodian rice exporters in Phnom Penh on January 14 to discuss the possibility of exporting Cambodian rice to international markets.
Uth Rein, secretary general of the Cambodian Small and Medium Industries Association said the meeting was an introductory one to discuss the feasibility of Cambodian rice exports.
“We hope that the parties will reach an agreement in bringing Cambodian rice to European and global markets,” he said.
The discussion will be attended by around 30 representatives of local rice millers and exporters. Ny Lyheng, deputy general manager of Baitang Kampuchea Plc, one of the country’s biggest rice exporters, said it was a key opportunity for local producers to better understand the requirements of international buyers.
Cambodia has around 3 million tonnes of rice left over from its annual harvest for export, according to government figures. However, export channels have not been well-developed and the quality of milled rice is often deficient by international standards.
Uth Rein said Cambodian exporters were granted duty free access to European markets last August for between 5,000 tonnes and 7,000 tonnes of milled rice per month. Opening up the export channel required exporters to boost rice quality and streamline export processes, he said.
Two of the four companies set to attend the meeting – Schepens & Co from Poland and Belgium’s Agrotrade Melkumian & Gasior – have already successfully sourced rice from Cambodia.
Uth Rein, secretary general of the Cambodian Small and Medium Industries Association said the meeting was an introductory one to discuss the feasibility of Cambodian rice exports.
“We hope that the parties will reach an agreement in bringing Cambodian rice to European and global markets,” he said.
The discussion will be attended by around 30 representatives of local rice millers and exporters. Ny Lyheng, deputy general manager of Baitang Kampuchea Plc, one of the country’s biggest rice exporters, said it was a key opportunity for local producers to better understand the requirements of international buyers.
Cambodia has around 3 million tonnes of rice left over from its annual harvest for export, according to government figures. However, export channels have not been well-developed and the quality of milled rice is often deficient by international standards.
Uth Rein said Cambodian exporters were granted duty free access to European markets last August for between 5,000 tonnes and 7,000 tonnes of milled rice per month. Opening up the export channel required exporters to boost rice quality and streamline export processes, he said.
Two of the four companies set to attend the meeting – Schepens & Co from Poland and Belgium’s Agrotrade Melkumian & Gasior – have already successfully sourced rice from Cambodia.
Arab nations ask to set up rice processing outlets in Thailand
Middle Eastern countries, led by Saudi Arabia, are seeking permission from the government to set up rice processing factories in Thailand, Rice Department chief Prasert Kosalwit says.
Mr Prasert said yesterday the Arab countries had made the request through the Foreign Ministry.
It is the second attempt by Middle Eastern nations to use Thai soil for agricultural purposes.
Last year several Arab countries sought permission from the government to rent farm land to grow rice but they opted instead to invest in Thailand's neighbouring countries after the government turned down the proposal.
However, due to a shortage of skilled personnel and poor irrigation systems, rice productivity in neighbouring countries did not meet Middle Eastern investors' expectations, Mr Prasert said. He said if the government allowed
Middle Eastern investors to invest in rice processing factories here, the government should make sure their rice markets were not the same as the markets for Thai rice.
The government should prevent the Middle Eastern investors from competing with Thai rice processing businesses and stop Thai rice processing businesses from being sold to foreigners.
Mr Prasert said he was also concerned about the problems of mixed rice stocks.
High rice prices in Thailand had tempted some rice exporters to smuggle in rice from neighbouring countries where it is cheaper and mix it with Thai rice for export.
At the same time, Thai traders have handed Thai jasmine rice seeds to farmers in Cambodia, he said.
Mr Prasert said yesterday the Arab countries had made the request through the Foreign Ministry.
It is the second attempt by Middle Eastern nations to use Thai soil for agricultural purposes.
Last year several Arab countries sought permission from the government to rent farm land to grow rice but they opted instead to invest in Thailand's neighbouring countries after the government turned down the proposal.
However, due to a shortage of skilled personnel and poor irrigation systems, rice productivity in neighbouring countries did not meet Middle Eastern investors' expectations, Mr Prasert said. He said if the government allowed
Middle Eastern investors to invest in rice processing factories here, the government should make sure their rice markets were not the same as the markets for Thai rice.
The government should prevent the Middle Eastern investors from competing with Thai rice processing businesses and stop Thai rice processing businesses from being sold to foreigners.
Mr Prasert said he was also concerned about the problems of mixed rice stocks.
High rice prices in Thailand had tempted some rice exporters to smuggle in rice from neighbouring countries where it is cheaper and mix it with Thai rice for export.
At the same time, Thai traders have handed Thai jasmine rice seeds to farmers in Cambodia, he said.
Transgenic rice will hit India fields soon
Indian scientists are developing varieties of transgenic rice tolerant to water stress conditions, Ajay Parida, executive director, M.S. Swaminathan Research Foundation (MSSRF), has said.
Field trials of the rice variety that needs little water for cultivation were progressing at Kalpakkam, he told delegates at a plenary session on Biotechnology at the ongoing 97th Indian Science Congress here on Wednesday.
Dr. Parida said the MSSRF had developed other transgenic varieties of rice that were salt resistant and drought tolerant.
These varieties, impregnated with mangrove genes, were developed under the anticipatory research programme of the foundation, he said.
He said efforts were on to develop a new variety of rice with fortified iron content to address micro nutrient deficiency. The development of the rice with ferritin gene was in the regulatory stage.
Other transgenic varieties with heavy metal tolerance and accumulation characters were also in the pipeline.
These crop varieties could help in phyto remediation of soil contaminated with heavy metals like arsenic or cadmium.
Dr. Parida said the MSSRF had taken defensive patents on all the varieties under development.
Responding to questions, he said field trials had demonstrated a 40 per cent increase in yield for saline-resistant transgenic rice. Biotechnology breeding methods in India were properly regulated, he said.
Head of the department of biotechnology, University of Kerala, G.M. Nair, who chaired the session, said the development of transgenic varieties that could withstand various kinds of adversity would make a sustainable green revolution possible in India.
Field trials of the rice variety that needs little water for cultivation were progressing at Kalpakkam, he told delegates at a plenary session on Biotechnology at the ongoing 97th Indian Science Congress here on Wednesday.
Dr. Parida said the MSSRF had developed other transgenic varieties of rice that were salt resistant and drought tolerant.
These varieties, impregnated with mangrove genes, were developed under the anticipatory research programme of the foundation, he said.
He said efforts were on to develop a new variety of rice with fortified iron content to address micro nutrient deficiency. The development of the rice with ferritin gene was in the regulatory stage.
Other transgenic varieties with heavy metal tolerance and accumulation characters were also in the pipeline.
These crop varieties could help in phyto remediation of soil contaminated with heavy metals like arsenic or cadmium.
Dr. Parida said the MSSRF had taken defensive patents on all the varieties under development.
Responding to questions, he said field trials had demonstrated a 40 per cent increase in yield for saline-resistant transgenic rice. Biotechnology breeding methods in India were properly regulated, he said.
Head of the department of biotechnology, University of Kerala, G.M. Nair, who chaired the session, said the development of transgenic varieties that could withstand various kinds of adversity would make a sustainable green revolution possible in India.
Nigeria Rice production up 29%
The nation's agricultural sector witnessed a marked improvement at the end of 2009 in food production as a result of various initiatives pursued by the government to revamp the sector.
The past year, which was the first year of the present administration, also saw a significant increase in government's investment in the sector, resulting in the provision of many facilities and initiatives that contributed to the growth in production towards achieving food security.
On top of the achievements were a remarkable 29 per cent increase in rice production and five per cent increase in maize production, while sorghum and millet production went up by 20 per cent each. Groundnuts and cowpea also recorded a three per cent growth rate each.
The past year, which was the first year of the present administration, also saw a significant increase in government's investment in the sector, resulting in the provision of many facilities and initiatives that contributed to the growth in production towards achieving food security.
On top of the achievements were a remarkable 29 per cent increase in rice production and five per cent increase in maize production, while sorghum and millet production went up by 20 per cent each. Groundnuts and cowpea also recorded a three per cent growth rate each.
Friday 22 January 2010
Unhusked rice price slightly down in Mekong Delta
Unhusked rice price in the Mekong River Delta has slightly reduced by around VND 50 – 100 a kilogram as against the previous week because Ben Tre, Soc Trang, Kien Giang provinces has started to harvest the winter-spring rice fields.
Price of unhusked rice sold to small traders has reduced to VND 5.400 – 5.500 a kilogram.
Many localities will simultaneously harvest a large amount of winter-spring rice in around 10 days so price of unhusked rice may keep reducing.
Iraqis welcome WFP role in state food aid system
Iraqis have welcomed a new partnership between the Ministry of Trade and the UN World Food Programme (WFP) to improve the state-run food aid system, which has been crumbling since the US-led invasion in 2003 because of insecurity, poor management and corruption. "Finally we've got someone who will help us," said Omar Khalid Al-Jabouri, a 43-year-old video games shop owner from Jihad, a suburb of western Baghdad. "We've been suffering since 2003 with the system's bad foodstuffs, which are not fit for human consumption, and delays in distribution and shortages of items." Under a 2010-2014 memorandum of understanding, WFP will offer consultation and training to Trade Ministry employees on how to buy, transport, store and distribute food items nationwide in a timely manner while maintaining quality. WFP will not be actively involved in any stage of the buying and distribution process. On 4 January, Safa-Eddin al-Safi, Iraq's acting trade minister, announced the partnership in a joint press conference with WFP Iraq country director Edward Kallon, describing it as "a major and important step on the path of improving the food rationing system". "This partnership aims to achieve the Ministry's goal of securing the food rationing system's items nationwide by making use of the WFP experience," Al-Safi said. Kallon said WFP's more than 40 years of experience in international food assistance would enable it to play a key role in helping improve the management of the food rations' supply chain. Optimism Iraqis asked were optimistic about the partnership, even calling for greater WFP involvement. "When it comes to the food rationing system, I prefer to leave it in the hands of WFP, from A to Z, because the Iraqi government has proved that it is unable to handle it properly," Kholoud Mohammed Amin, a 33-year-old hairdresser from New Baghdad, on the eastern side of the capital, told IRIN. Basra resident Ahmed Abbas Wali, a 53-year taxi driver, echoed Amin's call for giving WFP a greater role, and said that the government should pledge to compensate food aid recipients with money if they did not receive their parcel. "What is happening now is that we are buying the things from the market when the government can't distribute them. The government should pay citizens to buy the missing materials," Wali said. PDS food parcels Iraq's food rationing system, known as the Public Distribution System (PDS), was set up in 1995 as part of the UN's oil-for-food programme following Iraq's invasion of Kuwait in 1990. More than half of Iraq's 29 million residents depend on it, according to Trade Ministry statistics. Monthly PDS parcels are supposed to contain rice (3kg per person); sugar (2kg per person); cooking oil (1.25kg or one litre per person); flour (9kg per person); milk for adults (250g per person); tea (200g per person); beans (250g per person); children's milk (1.8kg per child); soap (250g per person); detergents (500g per person); and tomato paste (500g per person). Last year, former Iraqi trade minister Abdul-Falah al-Sudani was arrested and charged with corruption and embezzlement, mainly in relation to food imports for PDS parcels. The minister's brother and another official were also arrested while seven other officials, including another brother, who are all wanted for the same alleged offences, are still at large.
India Rice procurement tops 16 mt
Rice procurement by Food Corporation of India (FCI) and state agencies for 2009-10 crop marketing year has surpassed 16 million tonne and was estimated at 16.3 million tonne as on Tuesday.
Experts said timely announcement of the minimum support price (MSP) and aggressive strategies by state agencies is helping the government procure substantial quantities of rice from the market, outnumbering private traders and millers.
Last year, during the same period, FCI and others had purchased around 16.2 million tonne of rice from farmers.
This year, as usual Punjab and Haryana have contributed bulk of the total procurement with around 9.25 million tonne and 1.80 million tonne to the central pool.
The procurement in other key rice growing states such as Chhattisgarh (1.43 million tonne), Andhra Pradesh (1.10 million tonne) and Uttar Pradesh (1.53 million tonne) have also picked up pace in the last few weeks.
The government raised the minimum support price (MSP) of paddy by Rs 100 for this season, which now stands at Rs 950 for common variety and Rs 980 for Grade 'A'.
Officials said higher rice procurement by FCI will keep domestic prices under check. The government is aiming to procure around 26 million tonne of rice this year.
For offsetting the losses in kharif rice harvest, the government is planning to increase acreage under boro rice to 1.5 million hectare from around 1.2 million hectare in states such as West Bengal,
Orissa, Andhra Pradesh, Tamil Nadu, Bihar and Eastern Uttar Pradesh so that an additional 1 million tonne of the crop can be produced.
The central government starts its annual rice procurement in October and ends it around September. The grains are procured for buffer stocks and for supplying though the public distribution system (PDS).
A smaller quantity is also allocated for the armed forces. Last year the government procured more than 33.6 million tonne of rice, almost 15% more than last year, largely due to a bumper harvest of over 96 million tonne.
Cambodia Aims for 700,000 Tonnes 2010 Rice Exports
Cambodia could export as much as 700,000 tonnes of rice this year, exporters and government officials said on Wednesday, as the country steps up its efforts to become a leading shipper of the grain.
"I think we have the ability. We can do it," Chan Tong Yves, a secretary of state at the Agriculture Ministry, told Reuters, referring to the capacity to ship that volume of milled rice.
After decades of upheaval, the Southeast Asian country enjoyed a decade of relative stability and strong economic growth until the global crisis caused an economic contraction last year.
According to the U.S. Department of Agriculture, Cambodia exported 500,000 tonnes of rice in 2008. No figures are yet available for 2009.
Demand for Southeast Asian rice is growing from the Middle East and big importers such as the Philippines. Thailand is the world's biggest exporter, followed by Vietnam since India enforced a ban on rice exports in late 2007.
Ny Lyheng, deputy general manager of Cambodian rice export firm Baitang (Kampuchea) PLC, said efforts were being made to improve the quality of local rice in order to sell more, seeing potential in the European Union, United States, Canada, Australia, the Philippines and Russia.
He said the European market had been duty-free for Cambodian rice since last September, under the EU's "Everything But Arms" initiative aimed at supporting exports from poor countries.
"The world is paying attention to us because Cambodia is becoming an emerging rice market," Lyheng said.
He estimated that his Baitang company could contribute about 300,000 tonnes of the 700,000 tonnes Cambodia was forecast to export this year.
Philippines fall short of goal for palay procurement in 2009
THE GOVERNMENT fell 48.6% short of its already downscaled full-year palay procurement target at 453,312 metric tons (MT), data from the National Food Authority (NFA) showed.
In October last year, the NFA downscaled its original one million MT target to 881,302 MT as it factored in an estimated 1.3 million MT of palay lost to storms that hit starting end-September.
An NFA official attributed the purchase shortfall to farmers preferring to sell to private traders, who offered higher prices in the face of the storm production losses. "We were hoping to get our target, but after successive typhoons, prices of palay increased. So, farmers sold to private traders who offered higher prices," NFA Assistant Administrator Jose D. Cordero said in an interview.
In 2008, the agency bought a 29-year-high 685,300 MT of palay from local farmers, up from the 33,000 MT purchase in 2007. The previous record was 700,000 MT bought in 1979, NFA data show.
The state grain agency buys stocks with 14% moisture content for P17 per kilogram, but offers a lower price for stocks with higher moisture levels that do not exceed 24%.
Thursday 21 January 2010
India May Have Record Wheat Harvest on Crop Area, Cold Weather
The wheat harvest in India, the world's second-biggest grower, may exceed last year's record as farmers plant the crop to a bigger area and cold weather in the main growing regions improves yields, a government official said.
Production may be higher than 80.58 million metric tons gathered last year, said S.S. Singh, head of the state-owned Directorate of Wheat Research. Wheat, sown in October, accounts for 70 percent of the nation's winter-sown grain output.
A record crop for a second year may help Prime Minister Manmohan Singh make up for drought-damaged harvests of rice and oilseeds that's pushed food inflation to near an 11-year high. World wheat production, in comparison, is estimated to fall in 2010-11, causing a small drop in global stockpiles of the grain, the International Grains Council said last month.
Indian farmers planted wheat across 26.07 million hectares (64.4 million acres) as of Dec. 31, compared with 25.56 million hectares a year earlier, the farm ministry said Jan. 1. The area may exceed last year's 27.85 million hectares, Singh said in an interview today.
"Some unsown paddy area will be sown to wheat and sowing is still going on in Uttar Pradesh," he said, referring the country's northern state. "The cold wave is good for the crop and it will increase productivity."
Temperatures in north India, including the biggest wheat- growing states of Punjab and Haryana, last week fell as low as 0.3 degrees Celsius, the Press Trust of India reported, citing the weather office. The cold wave has so far claimed 120 lives, the agency reported today.
India Basmati export orders up 43.75% in April-Dec
Basmati rice export contracts during the first nine months of this fiscal crossed 23 lakh tonnes, posting 43.75 per cent growth, over 16 lakh tones in the same period previous year, on the back of high demand for the Pusa 1121 variety and lowe r benchmark price.
According to APEDA, in the entire 2008-09 fiscal, export contracts stood at 23 lakh tonnes.
Basmati rice export is calculated on the basis of the export orders registered with APEDA as the data on actual shipments come much late.
"In the next three months, six to seven lakh tonne more contracts may be registered, taking the total export to 29-30 lakh tonnes," said the All-India Rice Exporters' Association former President, Mr Vijay Setia.
Asked about the actual shipments, he said below two per cent contracts may not be executed in the current fiscal as there is good demand for the Indian variety of the grain.
Mr Setia noted that the Pusa 1121 variety, which was declared as Basmati in 2008, has a share of 60-65 per cent in the overall exports.
Traders said the Pusa 1121 variety is being contracted at $1,500 a tonne. The export price was about $900 a tonne in October 2008, when the new crop started arriving in the market.Thailand Sets Rice Export Target of 9 Million Tons for 2010
The Department of Foreign Trade has set the rice export target for 2010 at nine million tons, a value of approximately 5.2 billion U.S. dollars.
The director-general of the Department of Foreign Trade, or DFT, Wichak Wisetnoi said his department has set the rice export target for 2010 at 9 million tons, which is worth about 5 to 5.2 billion U.S. dollars.
Last year, Thailand exported 8.57 million tons of rice, valued at five billion dollars.
Wichak expects rice prices to rise by another 20 to 30 percent. He said the average rice price at the end of 2009 was 584 dollars per ton.
According to the DFT director-general, Africa is the largest market, accounting for 55 percent of total rice exports from Thailand, followed by Asia, at 19 percent, the Middle East, with 11 percent, Europe, buying 7 percent, North America and Latin America combined import 6 percent of Thailand's total rice exports and Oceania, 2 percent.
The worldwide rice supply in 2010 is projected to be 432 million tons while the global consumption is estimated to increase by 0.31 percent to 436.84 million tons.
As for Thailand, 31.48 million tons of rice is expected to hit the local market this year. Of the total production, 23.4 million tons will be from in-season paddies and 8.24 million tons will come from off-season paddies.
Wichak observed that the global rice trade is expected to increase by 5.8 percent, or 30.35 million tons, due to the fact that many countries have increased their rice imports as a result of natural disasters and rising consumption.
The director-general of the Department of Foreign Trade, or DFT, Wichak Wisetnoi said his department has set the rice export target for 2010 at 9 million tons, which is worth about 5 to 5.2 billion U.S. dollars.
Last year, Thailand exported 8.57 million tons of rice, valued at five billion dollars.
Wichak expects rice prices to rise by another 20 to 30 percent. He said the average rice price at the end of 2009 was 584 dollars per ton.
According to the DFT director-general, Africa is the largest market, accounting for 55 percent of total rice exports from Thailand, followed by Asia, at 19 percent, the Middle East, with 11 percent, Europe, buying 7 percent, North America and Latin America combined import 6 percent of Thailand's total rice exports and Oceania, 2 percent.
The worldwide rice supply in 2010 is projected to be 432 million tons while the global consumption is estimated to increase by 0.31 percent to 436.84 million tons.
As for Thailand, 31.48 million tons of rice is expected to hit the local market this year. Of the total production, 23.4 million tons will be from in-season paddies and 8.24 million tons will come from off-season paddies.
Wichak observed that the global rice trade is expected to increase by 5.8 percent, or 30.35 million tons, due to the fact that many countries have increased their rice imports as a result of natural disasters and rising consumption.
Philippines NFA seeks more rice
THE National Food Authority (NFA) is seeking more rice than contracted for 2010 supply as the Philippines tries to secure rice reserves while world market supplies last.
Data from the NFA show that the agency wants a total of 455,189.26 tons in additional supply from six traders who won contracts at four tenders conducted for 2010 supply.
The grains authority wants 62,500 tons from the contracts from the Nov. 4 tender; 27,487.50 tons from the Dec. 1 tender; 118,563.175 tons from the Dec. 8 tender; and 146,638.592 tons from the Dec. 15 tender.
The Philippines filled the tender volume of 250,000 from its November 4 bidding but had to buy below target for the next three auctions held in December.
The Dec. 1 tender was for 600,000 tons but the NFA bought only 509,950 due to increased prices. For the Dec. 8 tender, also for 600,000, the NFA awarded contracts for only 474,252.70 tons.
For the Dec. 15 tender, the NFA awarded supplies for 586,554.37 tons, the highest among the three tenders for 600,000 tons. Vinafood2 got the single purchase contract for 146,638.59 tons.
Total awards have so far added up to 1.96 million tons, a little below the total tendered volume of 2.05 million tons.
If all the reorders are confirmed, the supply could actually go up to about 2.4 million tons.
Tuesday 19 January 2010
Philippines Seeks to Buy 25% More Rice from Suppliers
The Philippines asked suppliers to ship 25 percent more rice than contracted for purchases since November, an official said, as the nation seeks to avert food shortages after storms damaged last year's harvests.
The state-run National Food Authority, which has bought about 1.8 million metric tons of the grain since November for delivery this year, used its options to order an additional 450,000 tons, Marketing Director Romeo Jimenez said today.
"We haven't discussed any new tender because of the re- order," Jimenez said in a phone interview from Manila. The country may secure as much as 2.25 million tons if suppliers agree to sell at prices settled in the last quarter, he said. The volume is 7.4 percent of this year's global trade forecast by the U.S. Department of Agriculture at 30.35 million tons.
Rice prices have gained 21 percent in the past six months as storms damaged 1.3 million tons of crops in the Philippines and on concern India, the second-biggest grower, may become a net buyer this year. Companies that had won supply contracts from the National Food Authority may not agree to sell the additional volumes as prices have since climbed, forcing the Philippines to return to the market, Rakesh Singh, a trader at New Delhi-based Emmsons International Ltd., said by phone today.
"If that happens, they will be ready for another tender" of 500,000 tons, he said.
March-delivery futures advanced as much as 2.6 percent to $15.28 per 100 pounds on the Chicago Board of Trade and traded at $15.2 at 6:45 p.m. Singapore time. Prices surged to a record in 2008 as concerns over shortages prompted exporters including Vietnam and India to curb supplies, sparking food price riots from Haiti to Egypt.
The Philippines raised its budget for the Dec. 15 tender 21 percent to 18.525 billion pesos ($403 million), after prices surged, allowing the government to buy 586,554 tons from offers that day, the biggest purchase of four tenders last quarter.
Vietnam wins successive bids for big rice export deals
The Southern Food Corporation (Vinafood 2), a big rice exporter, has "gained a great victory" in the bidding opened by the Philippines to choose a rice supplier.
With the first round of bids on November 4, 2009, Vinafood 2 obtained the contract to export 150,000 tons of 25 percent broken rice out of the 250,000 tons the Philippines offered to purchase at $480 per ton. The delivery will be made in January 2010.
During the next two bids, Vietnam won the right to provide 300,000 tons at the higher price of $620 per ton on average. As such, Vietnam's rice price increased by $140 per ton after one month.
Vinafood 2 also won the latest bid to provide 600,000 tons of rice to the Philippines. Though the price was lower than the December 8 bid, the price level was still regarded as "satisfactory" at above $600 per ton.
Vietnam has thus won all the biggest contracts for rice export, while Thailand, Pakistan and Singapore only made smaller deals.
Before opening bids, the Philippines announced its budget for rice purchases and the price at which they planned to purchase rice. This caused difficulties for rice buyers, because rice exporters offered to sell at higher prices. The Philippines had to adjust its budget and the volume of rice it purchased due to escalating rice prices.
The Philippine government purchased an amount of rice necessary until May 2010, when the presidential election will take place. The Government wants to be sure that there will be no sudden rice price fluctuations.
Some question why Thailand was not really interested in the bids. In 2009, Thailand's rice export volume was modest at 8.5-8.6 million tons. Meanwhile, rice stocks in Thailand are known to be quite large, at nearly six million tons.
Having kept a close watch over rice exports for many years, Nguyen Dinh Bich from the Trade Research Institute commented that it is very difficult to forecast rice prices for 2010 at this moment.
If rice stays at the current level into 2010, this means that Vietnam has won big deals. If the price goes up, Vietnam will lose big because it has sold rice cheaply.
The price at which Vietnamese companies sold rice to the Philippines is high enough to make a profit. The exporters sold rice at 10,500-11,000 dong per kilo, while they purchased rice from processing companies at below 8,000 dong per kilo. In fact, the rice volume to be delivered to the Philippines was purchased before, when the domestic rice price at only 6,000 dong per kilo.
The inventory stands now at some 1.4 million tons that will be used for deliveries in the first quarter of 2010. As such, Vietnamese rice exporters profit well from the signed export contracts.
Nevertheless, price levels may be too low if the rice price on the world market increases in 2010. A rise in rice prices depends on whether India will import rice. It is clear that India has a huge demand for rice, and, if the country imports rice, this will lead to big changes.
To date, available information has led to contradictory forecasts about whether India will import rice in 2010. Economic analysts suspect that the possibility of India importing rice in 2010 is very high. If so, the world's price may skyrocket and this may be the scenario that Thai rice exporters expect. This also explains why Thai exporters did not join the bids to export rice to the Philippines
Chairman of Thai Rice Exporters Chookiat Ophaswongse believes that the rice price would rise and added that he was very surprised when Vietnam demanded less than $700 per ton.
With the first round of bids on November 4, 2009, Vinafood 2 obtained the contract to export 150,000 tons of 25 percent broken rice out of the 250,000 tons the Philippines offered to purchase at $480 per ton. The delivery will be made in January 2010.
During the next two bids, Vietnam won the right to provide 300,000 tons at the higher price of $620 per ton on average. As such, Vietnam's rice price increased by $140 per ton after one month.
Vinafood 2 also won the latest bid to provide 600,000 tons of rice to the Philippines. Though the price was lower than the December 8 bid, the price level was still regarded as "satisfactory" at above $600 per ton.
Vietnam has thus won all the biggest contracts for rice export, while Thailand, Pakistan and Singapore only made smaller deals.
Before opening bids, the Philippines announced its budget for rice purchases and the price at which they planned to purchase rice. This caused difficulties for rice buyers, because rice exporters offered to sell at higher prices. The Philippines had to adjust its budget and the volume of rice it purchased due to escalating rice prices.
The Philippine government purchased an amount of rice necessary until May 2010, when the presidential election will take place. The Government wants to be sure that there will be no sudden rice price fluctuations.
Some question why Thailand was not really interested in the bids. In 2009, Thailand's rice export volume was modest at 8.5-8.6 million tons. Meanwhile, rice stocks in Thailand are known to be quite large, at nearly six million tons.
Having kept a close watch over rice exports for many years, Nguyen Dinh Bich from the Trade Research Institute commented that it is very difficult to forecast rice prices for 2010 at this moment.
If rice stays at the current level into 2010, this means that Vietnam has won big deals. If the price goes up, Vietnam will lose big because it has sold rice cheaply.
The price at which Vietnamese companies sold rice to the Philippines is high enough to make a profit. The exporters sold rice at 10,500-11,000 dong per kilo, while they purchased rice from processing companies at below 8,000 dong per kilo. In fact, the rice volume to be delivered to the Philippines was purchased before, when the domestic rice price at only 6,000 dong per kilo.
The inventory stands now at some 1.4 million tons that will be used for deliveries in the first quarter of 2010. As such, Vietnamese rice exporters profit well from the signed export contracts.
Nevertheless, price levels may be too low if the rice price on the world market increases in 2010. A rise in rice prices depends on whether India will import rice. It is clear that India has a huge demand for rice, and, if the country imports rice, this will lead to big changes.
To date, available information has led to contradictory forecasts about whether India will import rice in 2010. Economic analysts suspect that the possibility of India importing rice in 2010 is very high. If so, the world's price may skyrocket and this may be the scenario that Thai rice exporters expect. This also explains why Thai exporters did not join the bids to export rice to the Philippines
Chairman of Thai Rice Exporters Chookiat Ophaswongse believes that the rice price would rise and added that he was very surprised when Vietnam demanded less than $700 per ton.
Thai rice update
Despite steady domestic prices at high levels, export prices declined slightly due to the Thai baht weakening to 33.2 baht/$. Thai rice exporters reportedly received some enquiries from foreign buyers who are normally customers of Vietnam.
Bangladesh Govt extends ban on rice export
The government has extended the ban on rice export to six more months, a commerce ministry statement said on Thursday.
The period on the restriction expires on Thursday. The new extension will be effective from Friday, the statement said.
The government extended the ban in June.
The previous caretaker government, for the first time, imposed the ban on rice export following the hike in the prices of the staple, it added.
The period on the restriction expires on Thursday. The new extension will be effective from Friday, the statement said.
The government extended the ban in June.
The previous caretaker government, for the first time, imposed the ban on rice export following the hike in the prices of the staple, it added.
More wheat, rice and pulses sown this rabi in India
The rabi (winter sowing) season shows signs of improvement in production of wheat, rice and pulses.
'Data received from states reveals that sowing of rabi crop is progressing well,' said an agriculture ministry statement here Friday.
The worst monsoon in nearly four decades and unexpected floods in some parts of the country had spoiled the country's kharif season, pushing up food prices.
The acreage in the sowing of wheat, rice and pulses this rabi season is higher compared to last year, according to data released by the agriculture ministry.
As on Dec 31, 2009, wheat has been sown in 260.71 lakh hectares, compared to only 255.62 lakh hectares in 2008.
Rice has been sown in 4.55 lakh hectares, while in 2008, rice was sown in only 3.61 lakh hectares.
Pulses have been sown in 125.60 lakh hectares till Dec 31, while in 2008, it was sown in 120.84 lakh hectares.
However, the sowing of coarse cereals shows a dip. It has been sown in only 60.94 lakh hectares while in 2008, it was sown in 64.81 lakh hectares.
Last week, Finance Minister Pranab Mukherjee said it was a major challenge for the government to check inflation in the short-to-medium term.
Opposition parties had stalled parliamentary proceedings over spiralling food prices, resulting in the adjournment of the Lok Sabha for a day during the winter session this month.
'Data received from states reveals that sowing of rabi crop is progressing well,' said an agriculture ministry statement here Friday.
The worst monsoon in nearly four decades and unexpected floods in some parts of the country had spoiled the country's kharif season, pushing up food prices.
The acreage in the sowing of wheat, rice and pulses this rabi season is higher compared to last year, according to data released by the agriculture ministry.
As on Dec 31, 2009, wheat has been sown in 260.71 lakh hectares, compared to only 255.62 lakh hectares in 2008.
Rice has been sown in 4.55 lakh hectares, while in 2008, rice was sown in only 3.61 lakh hectares.
Pulses have been sown in 125.60 lakh hectares till Dec 31, while in 2008, it was sown in 120.84 lakh hectares.
However, the sowing of coarse cereals shows a dip. It has been sown in only 60.94 lakh hectares while in 2008, it was sown in 64.81 lakh hectares.
Last week, Finance Minister Pranab Mukherjee said it was a major challenge for the government to check inflation in the short-to-medium term.
Opposition parties had stalled parliamentary proceedings over spiralling food prices, resulting in the adjournment of the Lok Sabha for a day during the winter session this month.
Gene rice on its way in China
Genetically modified rice cleared for commercial sale could be growing on Chinese farms as early as next year, making China the first country to allow commercial cultivation of GM strains. The field trials required for any new variety are now under way, following official safety clearance November.
Two varieties, called Huahui 1 and Bt Shanyou 63, received clearance and should be launched within the next two years. Both contain "Bt" proteins from the Bacillus thuringiensis bacterium to protect them against the rice stem borer, the most serious rice pest in China.
"I expect that large-scale production of these two insect-resistant rices will occur in 2011 in Hubei province, one of the major rice production regions in China," says Jikun Huang, director of the Center for Chinese Agricultural Policy of the Chinese Academy of Sciences in Beijing.
If all goes well in Hubei, Huang expects rapid commercial approval elsewhere in China. He brushes aside the idea that the GM varieties may damage trade by contaminating exports, pointing out that exports account for less than 1 per cent of the country's total rice production.
Previous experimental field trials of GM rice varieties in China, including the two now poised for commercialisation, showed that they benefited poor farmers and decreased their exposure to harmful pesticides.
Bob Zeigler, director of the non-profit International Rice Research Institute (IRRI) in Los Baños, the Philippines, is optimistic about the future of GM rice, saying that GM technology can deliver unique traits that are otherwise unobtainable. This year, farmers in India and the Philippines have begun receiving a flood-tolerant rice developed at the IRRI which is non-GM but was developed using knowledge from GM studies.
Two varieties, called Huahui 1 and Bt Shanyou 63, received clearance and should be launched within the next two years. Both contain "Bt" proteins from the Bacillus thuringiensis bacterium to protect them against the rice stem borer, the most serious rice pest in China.
"I expect that large-scale production of these two insect-resistant rices will occur in 2011 in Hubei province, one of the major rice production regions in China," says Jikun Huang, director of the Center for Chinese Agricultural Policy of the Chinese Academy of Sciences in Beijing.
If all goes well in Hubei, Huang expects rapid commercial approval elsewhere in China. He brushes aside the idea that the GM varieties may damage trade by contaminating exports, pointing out that exports account for less than 1 per cent of the country's total rice production.
Previous experimental field trials of GM rice varieties in China, including the two now poised for commercialisation, showed that they benefited poor farmers and decreased their exposure to harmful pesticides.
Bob Zeigler, director of the non-profit International Rice Research Institute (IRRI) in Los Baños, the Philippines, is optimistic about the future of GM rice, saying that GM technology can deliver unique traits that are otherwise unobtainable. This year, farmers in India and the Philippines have begun receiving a flood-tolerant rice developed at the IRRI which is non-GM but was developed using knowledge from GM studies.
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