Paddy harvesting starts in Punjab, Haryana; late rains improve sentiment

Newly harvested paddy has started arriving in the markets of Punjab and Haryana while late rains have helped boost the area under the crop to more than last year's levels, developments that bode well for the supplies of the staple grain and food inflation.

Scanty rains in the first half of the June-September monsoon season had threatened to hurt this year's farm output, which is critical to the overall economy in a country where more than half the workforce is employed in agriculture. But rains had picked up in the second half, and though still this season's average rainfall is 12% below what is considered normal, water levels in reservoirs are better than their 10-year average. Late rains are likely to help keep soil moisture longer, benefiting winter crops such as wheat.

According to agriculture ministry data, total crop plantings at 101.93 million hectares for the week ended September 26 were still 2% below last year's level. Rice plantings at 37.48 million hectares were more than last season's 37.42 million hectares, but areas under coarse cereals, oilseeds, pulses and sugarcane were less.

Early-sown basmati and other rice varieties have started reaching mandis in the two northern grain-bowl states, ahead of the procurement season that begins on October 1. Farmers have also started harvesting other summer crops of cotton, soyabean and pulses.

Regional basmati exporters have already entered the market and are buying the 1509 basmati variety at Rs 2,450 a tonnes, said Raj Sood, a trader from the Khanna mandi in Punjab.

According to officials at Food Corporation of India, the government's grain procurement agency, it estimates to procure 30.05 million tonnes of rice this year. Of this, it is expected to buy 8.2 million tonnes from Punjab, 4.35 million tonnes from Chhattisgarh and 4.1 million tonnes from Uttar Pradesh. As of September 1, the country had adequate stock of 21.7 million tonnes of rice in its buffer and strategic reserve.

Exporters are, however, concerned that with the discontinuation of a 3% interest subvention scheme, they will not be able to export the same quantity as they shipped last time. Gurnam Arora, joint managing director of Kohinoor Foods, said global prices were weak and an incentive was necessary for the industry.

Data from the India Meteorological Department showed that two-thirds of the country's 36 sub-divisions received normal to excess rainfall this monsoon season. The country's major 85 reservoirs were filled to 79% of their total capacity of 155.05 billion cubic metres, down from 85% last year, but better than the 10-year average of 76%.

Himachal Pradesh, Gujarat, Punjab, Rajasthan, West Bengal, Tripura, Uttarakhand, Madhya Pradesh, Andhra Pradesh, Kerala and Tamil Nadu have less water in the their reservoirs than last year, the Central Water Commission said. The rainfall deficit has been worst in Haryana and west Uttar Pradesh at 56%, followed by Punjab at 50%.

India Rice production in 2014 pegged at 88 million tonnes

As the four-month southwest monsoon season comes to an end on Tuesday, sowing of major kharif crops has picked up pace with the total area crossing 100 million hectares in 2014, a tad lower than last year's 104 million hectares.

Area under rice, the main foodgrain grown during the kharif season, was estimated at 37.48 million hectares, more than 37.42 million hectares in 2013, when India received normal rains. According to officials in the know, the incremental rise in paddy area is because of basmati planting.

Rice production is estimated to be 88.02 million tonnes in 2014, four per cent less than last year's figure, the agriculture ministry's latest data showed.

This showed the yield declined moderately during the period. The total kharif acreage this season was pegged at 101.92 million hectares, which is lower than the 104.46 million hectares acreage during the same time last year. Good retreating monsoon in some parts of north and central India boosted planting, officials said.

According to the government's first advance estimate, India's foodgrain production in 2014-15 kharif season is expected to fall by nine million tonnes to 120.27 million tonnes , compared to the same period last year, on account of uneven southwest monsoon in the first part of the 2014 season.

As on September 29, monsoon was about 12 per cent below normal, a big improvement from the 40 per cent deficit seen in July.

The biggest impact of erratic rains is expected to be on coarse cereals, pulses and groundnut.

The estimates show that coarse cereal production in the kharif season is expected to be around 27.05 million tonnes, against 31.25 million tonnes in 2013-14 - a fall of 13.4 per cent.

Production of pulses in the kharif season is expected to be 5.2 million tonnes against 6.02 million tonnes last year, while that of oilseeds is expected to be 19.66 million tonnes, down from last year's 22.40 million tonnes.

Meanwhile, the agriculture ministry data also showed that the area under cotton has also risen to 12.65 million hectares from 11.43 million hectares during the year ago period.

However, acreage of other major kharif crops as on September 26 is still lower than last year's level.

The area under coarse cereals currently stands at 18.23 million hectares, pulses at 10.10 million hectares, oilseeds at 17.75 million hectares, sugarcane at 4.87 million hectares and jute and mesta at 8.15 million hectares.

The area under these crops is still lower than the year-ago period because sowing operations got delayed due to late arrival of southwest monsoon. With kharif crops covered in less area, the overall production is expected to be affected.

Aiming to make up for the shortfall in some summer crops, the Centre had asked state governments to focus on 3.37 million hectares, which were left unsown due to delayed monsoon, during the rabi season.

The government has set a rabi production target of 94 million tonnes for wheat this year.

Northern India to Endure Scorching Heat and Drought Due to Weak Monsoon

The yearly advance of the southwest monsoon is vital to both people and agriculture across India and rest of the Indian subcontinent.
The normal onset of the southwest monsoon occurs during the second half of May across Myanmar before reaching southern India at the beginning of June.
This year the monsoon was actually several days ahead of schedule reaching Myanmar, but it has stalled over the Bay of Bengal during the past week.

As a result, the onset of the monsoon in southern India will likely be up to a week late across parts of the south, but the beneficial rains are forecast to increase during the second week of June.
The heaviest rains are expected to be focused from the western Ghats to the west coast during this time. Scattered rains are expected across the southeast.
With an El Nino expected to build during the second half of the year, rainfall across central and northern India could be impacted greatly.

As a result, the northward advance of the southwest monsoon is forecast to be delayed for most of central and northern India allowing temperatures to soar well above normal for much of the month of June.
Several long stretches of temperatures over 42 C (108 F) are possible in New Delhi and the surrounding region.
Long-range forecasts are for below-normal monsoon rainfall in these areas, stretching into neighboring Pakistan. Concerns continue to rise that a drought will develop across northwest India and Pakistan as a result of prolonged dry and hot weather followed by a weak monsoon.
India is a large supplier of rice and cotton globally, and these crops could suffer greatly as a result of the impending hot and dry conditions. According to Accuweather.com Commodity Weather Expert Jason Nicholls, "Both crop yields and quality are likely to be impacted by drought later this summer in northwest India and Pakistan."

Farther south, the monsoon should arrive before the full impact of the oncoming El Nino occurs. The best chance for a near-normal monsoon will be in the southwest.
With rainfall expected to be below normal for much of India during this monsoon season, any rainfall from tropical cyclones would be increasingly important.
The Bay of Bengal will likely produce several tropical cyclones during the summer months as a near-normal season is anticipated. Although flooding is always a threat from landfalling tropical cyclones, this will be offset by the positives of rainfall during a stretch of otherwise below-normal rainfall.

Fears over surplus rice sales in India, Thailand may be groundless

- Vietnam Investment Review - http://www.vir.com.vn/ -

16:19 | 07/03/2014
Fears over surplus rice sales in India, Thailand may be groundless
Agricultural expert chews over whether there is currently a price manipulation in the rice market.


Over the past two weeks local newspapers have reported that Thailand – a leading global rice exporter – is dumping their colossal stocks while Indonesia has also announced an even larger supply. This may cause the price of rice to tumble around the world and have a major impact on Vietnam’s exports.

At this point the Mekong Delta – Vietnam’s granary – has begun its major harvest season and the news from Thailand and India is likely to cast a pall over both the domestic and export markets.

Let’s go inside these assumptions.

First is the case of Thailand.

According to the US Department of Agriculture (USDA) and the Thai Rice Exporters Association (TREA) statistics, following the government’s subsidy policy the Thai government bought over 55 million tonnes of paddy rice (equivalent to nearly 36 million tonnes of rice, three quarters of it white rice) at higher than market prices from October 2011 to February 2014.

Meanwhile the country only exported 10.3 million tonnes of white rice at prices averages $540 per tonne, meaning that Thailand is still holding onto stocks of nearly 16.5 million tonnes of white rice and about 5 million tonnes of glutinous and high-grade rice varieties.

Given this situation, early this year Thai acting Minister of Commerce unveiled a plan to sell one million tonnes of rice each month in the first quarter of 2014.

A USDA report showed that from the beginning of this year through February 13 there were only three public rice auctions in Thailand at which nearly 860,000 tonnes of rice were offered for sale.

The bid price was from 12-30 per cent lower than market price, fluctuating in the range of $322-$405 per tonne and only 100,000 tonnes was reportedly earmarked for export.

But the winning bid price and volumes have yet to be announced.

Also according to the USDA, by February 23 Thailand had only exported 464,000 tonnes of white rice, down 31 per cent against the same period 2013.

Therefore, the concern that Thailand was dumping its huge rice stocks remains most likely an assumption.

In the case of India, saying that Vietnamese rice can’t compete in the global market due to the fact that India has huge reserves of 32 million tonnes was baseless. Why?

It is likely because according to USDA reports from the time India resumed rice exports in September 2011, the government has never held a rice auction. It has consistently held wheat flour auctions.

This practice may suggest the Indian government is using its rice stocks to support the price subsidy policy for local consumers via a public distribution system.

The USDA has reasons to forecast that the demand for rice in India would rise by three million tonnes, leading to a two million tonne reduction of exports.

This year is the first that the Indian government has executed its law on food security, a promise made by the ruling party four years ago.

This means about 70 per cent of the population in rural areas and 50 per cent in urban areas will benefit from the government’s price subsidy, leading to a huge amount of rice being mobilised to serve the programme.

In other words, the reasons why Thailand and India are retaining their rice stocks are different and therefore equating them and linking them to Vietnam’s rice exports is not a fair assumption.

Top experts and government authorities need to step in to investigate whether Thailand is dumping its rice stocks to ensure stability in the domestic market. This is the only way to truly protect Mekong farmers’ best interests.

By Nguyen Dinh Bich, an agricultural expert

Rice Exports From India Climbing to Record on Mideast Demand

Rice shipments from India, the world’s largest producer after China, will probably expand to a record as buyers from Iran to Saudi Arabia boost purchases of aromatic basmati grain used in biryani and pilaf dishes.

Exports are set to increase 7.8 percent to 11 million metric tons in the 12 months through March from a year earlier, said M.P. Jindal, president of the All India Rice Exporters Association. Sales of basmati may jump 14 percent to 4 million tons as cargoes of non-basmati varieties advance 4 percent to 7 million tons, he said in a phone interview.

Shipments are increasing from India as Thailand, once the world’s biggest supplier, is also set to boost exports. The Southeast Asian country has built record stockpiles big enough to meet about a third of global import demand under a buying program that started in 2011. Farmers are demanding the government sell the reserves to pay for their crop.

“India has an edge over other countries because of quality and price competitiveness,” said Faiyaz Hudani, an associate vice president at Kotak Commodity Services Ltd., a Mumbai-based broker. “When the output is high and the pace of growth is stable, there is no cause of concern.”

Rising sales may benefit Indian shippers such as KRBL Ltd. (KRB), LT Foods Ltd. (LTFO) and Kohinoor Foods Ltd. (KFL)

India is targeting production of 106.3 million tons in the year through June, compared with a record 105.3 million tons in 2011-2012, according to the Agriculture Ministry. The harvest would add to global inventories estimated at 109 million tons in 2013-2014 by the London-based International Grains Council.

Thai Stockpiles

The price of Thai 5-percent broken white rice, a benchmark grade, fell 23 percent in 2013, the most in at least five years, and was at $460 a ton yesterday. A slump to $370 by March is possible as grain is offloaded from state granaries, according to Chareon Laothamatas, president of the Thai Rice Exporters Association. Rough-rice futures on the Chicago Board of Trade rose 0.6 percent to $15.625 per 100 pounds yesterday.

Thailand may not be able to find enough buyers for its stockpiles because major importers in Africa and the Philippines increasingly prefer grain from Vietnam and India, according to Darren Cooper, a senior economist at the council.

“Thailand will try to dispose of the stockpiles at whatever price it gets,” said B.V. Krishna Rao, managing director of Pattabhi Agro Foods Pvt., an Indian exporter. Shipments may not be affected by rising Thai sales as the two countries catered to different markets, he said.

Basmati Demand

The U.S. Department of Agriculture expects Thai inventories to reach a record 14.7 million tons this year, compared with 6.1 million in 2010. Shipments will probably be 8.5 million tons, the USDA forecasts.

Basmati rice exports from India are climbing as Iran is building reserves, said Jindal at the exporters association. Sales to Iran jumped to 1.28 million tons in the nine months through December, exceeding the 1.07 million tons for whole of 2012-2013, according to the association. The country is India’s biggest buyer of basmati and imports 1.5 million tons annually.

“The price of basmati was good this year and overseas demand was more throughout the year from all countries including Iran and Saudi Arabia,” Jindal said on Feb. 4. “Exports to Iran are higher as it buys for keeping certain reserves.”

India supplies 65 percent of the overseas basmati rice market, while Pakistan accounts for the rest, according to the state-run Agricultural and Processed Food Products Export Development Authority. Saudi Arabia and Iran are the two major buyers of Indian basmati, while Africa is a major destination for non-basmati varieties.

India As rice bran oil gains traction, output rises

Even as consumer awareness remains a challenge for the rice bran oil, India’s rice bran oil production is growing by about 50,000 tonne every year, informed industry leaders here.

Of the total global production of around 12 lakh tonne of rice bran oil, India currently produces 9 lakh tonne per annum. However, with growing awareness and rising demand, the production is increasing by about 50,000 tonne per annum, claimed the Solvent Extractors’ Association of India (SEA).

“India has the potential to produce around 15 lakh tonne of rice bran oil. We are producing about 9 lakh tonne but only 3 lakh tonne goes for direct consumption. As the awareness rises, the production will increase too,” said B V Mehta, executive director, SEA at a press conference on Wednesday.

After India, Japan is the distant second in the production of rice bran oil with production of about 70,000 tonne per annum, followed by Thailand with around 60,000 tonne and China at only 50,000 tonne per annum of rice bran oil production.

However, the rice bran oil costs more than the conventional oils like sunflower or cottonseed oil. “The prices are higher by Rs. 10-15 per kg. So we can position this oil between the expensive olive oil and the conventional oils with greater nutritional benefits,” said Dr A R Sharma, chairman and managing director, Ricela Health Foods Ltd.

The rice bran oil has been recommended by the National Institute of Nutrition (NIN) for its nutritional properties. “The viscosity of rice bran oil is very light and is bland. Food cooked in this oil absorbs 15-20 per cent less oil, thereby reducing the chances of cholesterol,” said Dr Varsha, Founder chairperson, Indian Institute of Nutritional Sciences.

SEA has initiated a series of awareness programmes in big and small towns across India and to reach out to the maximum number of people with the benefits rice bran oil offers.

India's wheat, rice exports raise hackles at WTO

The US, Canada and Pakistan have questioned India's export of wheat and rice, suggesting that subsidized grains have been shipped out providing gains to local traders.

The queries at the World Trade Organization (WTO) come weeks after these countries reluctantly agreed to India's demand for renegotiating the agreement related to food subsidies that turned into a make-or-break issue at the Bali ministerial meeting in December.

The government has denied the suggestions and said that India is complying with all international norms. "We are on the right track," said a top government official, dismissing the charges.

India Rabi rice planting picking up

The coverage of rice, which had been trailing until the start of this month, has begun to gather pace. Rice has been sown on 15.26 lh, against 10.73 lh last year at this point of time.

India asks Russia to lift ban on rice, groundnut

India is mounting pressure on Russia, a growing importer of farm products, to lift the ban on rice and peanuts from the country imposed early this year and accept bovine meat tested in Indian-Government certified labs.

It has also invited officials from the country’s quality control department to visit India later this month to inspect the quality of rice and buffalo meat being exported from the country. With Russia emerging as a major buyer of farm products, especially of bovine meat and processed food, India wants it to remove existing restrictions hindering exports from India.

“We have just started the process of establishing a toe-hold in Russia’s fast growing market for farm produce and have run into quality issues. We hope to sort these out soon,” a Commerce Department official told Business Line.

India’s export of rice to Russia increased five times to $25 million in April-December 2012 compared to $4.5 million in the same period of the previous year before breaks were applied by the Russian Federal Service for Veterinary and Phyto-sanitary Surveillance (FSVPS) on exports in February this year.

The country placed a temporary ban on import of both rice and peanuts from India following detection of Khapra Beetle in Indian rice consignments.

“Strong measures have been taken since then by the National Plant Protection Organisation (NPPO) India in conformity with terms of a MoU signed with Russia in 2009,” the official said.

The NPPO has withdrawn the authority of the two officials issuing phyto-sanitary certification to Russia and suspended accreditation of the two pest-control organisations for fumigation of export consignments to Russia. It has also issued an advisory to all phyto-sanitary certification authorities directing them to be cautious and vigilant in carrying out inspection of exports to Russia. “We have now asked Russia to reconsider the ban. Detailed investigation in both cases of non-compliance is already underway and details would be shared with Russia soon,” the official said.

Inida Bullish trend continues in rice market

Uptrend in the rice market continued on Saturday with prices of aromatic rice moving up by Rs 50-100 a quintal. Non basmati varieties remained unchanged on moderate buying.

Amit Chandna, proprietor of Hanuman Rice Trading Company, told Business Line that the domestic demand for aromatic and non-basmati rice is good currently and the market may continue to rule firm around current levels for the next few days.

Markets sentiments are still largely positive and traders expect that market may witness some good buying in next few weeks, he said.

In the physical market, Pusa-1121 (steam) went up by Rs 100 to Rs 8,200 a quintal, while Pusa-1121 (sela) improved by Rs 50 and quoted at Rs 7,150 a quintal.

Pure basmati (raw) quoted at Rs 9,000 a quintal. Duplicate basmati (steam) traded at Rs 7,100 a quintal, Rs 100 up.

For the brokens of Pusa-1121, Dubar improved by Rs 100 and quoted at Rs 4,100, Tibar up by Rs 50 and sold at Rs 4,950 while Mongra was at Rs 3,100 a quintal, up Rs 100.

On the other hand, after witnessing an uptrend earlier this week, non-basmati varieties remained unchanged. Sharbati (steam) quoted at Rs 5,400, while Sharbati (sela) was at Rs 5,050 a quintal.

PR-11 (sela) sold at Rs 3,400-3,450 while PR-11 (Raw) quoted at Rs 3,100-3,150 a quintal. Permal (raw) sold at Rs 2,500 a quintal while Permal (sela) went for Rs 2,400 a quintal.

PR14 (steam) sold at Rs 3,200 a quintal. According to the trade experts, PR14 (steam) may witness an uptrend in coming weeks and may increase by Rs 200 a quintal.

India Minimum statutory prices for rice, cotton to be increased

The commission for agriculture costs and prices has recommended no increase in the minimum statutory prices (MSP) of red gram, black gram and sunflower. The Commission has recommended revision of MSP of rice by Rs 60 per quintal and by Rs 100 per quintal for cotton.

The union government released the details of the recommendations of the commission recently.

If the proposed prices come into effect, normal rice would be purchased at Rs 1,310 per quintal. The A grade rice, which attracts higher price would have MSP of Rs 1,340 per quintal.

India domestic rice prices

Domestic demand, coupled with fresh trade enquires, kept aromatic and non-basmati rice firm on Monday.

Rice, which has rallied in the last one week, ruled firm at previous quoted levels as trade enquiries supported the market, said Amit Chandna, Proprietor of Hanuman Rice Trading Company.

Rising retail demand has turned the market sentiment positive and prices are likely to rule around current levels this week, he added.

Prices of aromatic varieties have increased by Rs 200-500 a quintal while the non-basmati varieties have gone up by Rs 70-400 over the last one week.

Traders expect that market may rule range-bound but within a positive territory, said market experts.

In the physical market, Pusa-1121 (steam) sold at Rs 8,200 while Pusa-1121 (sela) quoted at Rs 7,150.

Pure basmati (raw) quoted at Rs 9,000. Duplicate basmati (steam) traded at Rs 7,100.

For the brokens of Pusa-1121, Dubar quoted at Rs 4,100, Tibar sold at Rs 4,950 while Mongra was at Rs 3,100.

Similarly, non-basmati varieties remained unchanged. Sharbati (steam) quoted at Rs 5,400, while Sharbati (sela) was at Rs 5,050.

PR-11 (sela) sold at Rs 3,400-3,450 while PR-11 (raw) quoted at Rs 3,100-3,150.

Permal (raw) sold at Rs 2,500 while Permal (sela) went for Rs 2,400 . PR14 (steam) sold at Rs 3,200.

Iran cuts rice import

Iran's Customs Administration reported that the country imported 1.289 million tons of rice worth over $1.3 billion in the past Iranian calendar year, which ended March 20.

The figures show 14.96-percent decrease in terms of weight, and 4.21-percent increase in terms of value, the ISNA News Agency reported.

The rice import accounted for 2.03 percent of Iran's total imports.

India with 870,000 tons of rice (worth $943 million) was the main exporter of rice to Iran. India's share of exports accounted for 67.46 percent of Tehran's total rice imports.

The United Arab Emirates and Pakistan with 13.15 percent and 10.45 percent respectively were the other main exporters of rice to the country.

India internal rice market prices

A steady trend prevailed in the rice market with prices of aromatic and non-basmati varieties maintaining their previous levels on Thursday.

Amit Chandna, proprietor of Hanuman Rice Trading Company, told Business Line that moderate buying kept the price unchanged. Retail buyers are purchasing limited quantity following too much volatility in the market. Traders expect the market to witness some good levels in days to come by as market sentiments are still largely positive, he said.

In the physical market, after witnessing an uptrend earlier this week, aromatic and non-basmati varieties remained unaltered.

Pusa-1121 (steam) sold at Rs 6,700-6,800 a quintal while Pusa-1121 (sela) went for Rs 5,800.

Pure basmati (raw) quoted at Rs 8,000. Duplicate basmati (steam) traded at Rs 5,500-5,600.

Sharbati (steam) quoted at Rs 4,300 while Sharbati (sela) was at Rs 4,175.

PR-11 (sela) was sold at Rs 2,550-2,650 while PR-11 (raw) quoted at Rs 2,550-2,600. Permal (raw) sold at Rs 2,200-2,300 while Permal (sela) went for Rs 2,150-2,300.

PADDY ARRIVALS

About 2,000 bags of PR variety arrived and went for Rs 1,150-1,200, Sharbati arrived with a stock of around 1,500 bags and quoted at Rs 2,100-2,135. About 1,000 bags of Sugandha 999 went for Rs 2,600-2,700.

About 5,000 bags of Pusa-1121 arrived and quoted at Rs 3,000-3,250 a quintal.

Declining Indian rice prices affects rice export

Rice Exporters Association of Pakistan (REAP) has expressed concern over the alarming decline of Pakistani Basmati rice exports in the wake of declining rates of Indian rice.

REAP urged the government to take appropriate measures for the betterment of Basmati rice exports. The government should particularly take action against the elements dumping Basmati rice and causing artificial price hike in local markets.

Jawed Ali Ghori Chairman REAP informed due to increased tariffs of electricity and gas, millers have to run their mills on diesel generators, which was multiplying their operational cost and for this reason prices of Basmati rice have increased by 15 percent.

On the other hand due to lower prices of Indian rice, Pakistan was facing 53 percent decline during the last six months of current fiscal year 2012-13 as compared of last fiscal year 2011-12.

Pakistan has exported 239,764 metric tonnes of Basmati rice valuing $233 million during July 2012 to December 2012, whereas for the same period in last year, we had exported 506,904 metric tonnes valuing $440 million. He claimed during the last six months, Pakistani rice was not getting good price from Iranian importers and for the same reason exports to Iran via Quetta Border has shown 66 percent decline. In addition tender of rice from Qatar government has been awarded to India due to their lower prices. He was worried Pakistan has not getting new orders from Oman, Abu Dhabi and Doha.

Indian rice for CARs via Pakistan

FOR quite sometime it was expected that Pakistan will ultimately become a conduit for the export of Indian goods to Afghanistan and Central Asian Republics in addition to in Pakistan and that is now becoming a reality. A report in this newspaper Sunday revealed that the Indian rice exporters are eyeing export of Rice to Central Asian Republics through Pakistan to capture the vast market.

The price of Indian rice for export purposes is slightly lower than Pakistani rice because of concessions given by the government. A Pakistani rice exporter has disclosed that some visiting Indian exporters were found searching for ways to tap markets in the region and were interested to export their commodity to CARs through Pakistani land route which costs less. Though presently there is no agreement to allow the transportation of Indian goods through Pakistan to other countries but there is concern in the business community that when the MFN comes into operation, India would certainly seek this facility. Though Pakistan has delayed the grant of the MFN status to India together with the abolition of the negative list for trade due to reservations of various industries but ultimately this would be done at some point of time. Pakistani rice has superior quality and due to short distance, the country is competitive but if Indian rice export was allowed through the transit facility, Pakistani rice would lose its competitiveness. We are not against facilitating Indian goods to other countries but at the same time Pakistan will have to watch its own interests on core issues. Pakistan has suffered a lot in the past and there is consensus that national interests must be kept in view while granting MFN status and other facilities to the neighbouring country.

india Rice procurement up by 5% so far this marketing season

Rice procurement has increased by 5 per cent to 16.05 million tonnes so far in 2012-13 marketing year that started in October, even as rice output is estimated to decline during Kharif season.

Food Corporation of India (FCI), the nodal agency for procurement and distribution of foodgrains, had bought 15.36 million tonnes of rice in the corresponding period of 2011-12 marketing year, according to an official data.

Rice production is estimated to fall at 85.59 million tonnes in the Kharif season of 2012-13 crop year (July-June) from 91.53 million tonnes.

Punjab has contributed maximum to the total procurement where FCI and other state agencies have procured 8.54 million tonnes of rice till date in 2012-13 marketing year (October- September) against 7.66 million tonnes in the year-ago period.

Procurement in Haryana has reached 2.57 million tonnes till date, whereas Chhattisgarh and Andhra Pradesh have contributed 1.74 million tonnes and 1.39 million tonnes, respectively.

India internal rice market prices

Some fresh buying coupled with low availability of stocks pushed a few aromatic and non-basmati varieties up by Rs 50-300 a quintal on Monday.

After witnessing a fall in prices of Pusa-1121 varieties last week, bulk buyers have taken good advantage by buying at those levels, said Tara Chand Sharma, Proprietor of Tara Chand and Sons.

Traders expect that rice price may increase further in near future following low availability of stocks, he said.

In the physical market, Pusa-1121 (steam) and Pusa-1121 (sela) went up by Rs 300 each and sold at Rs 6,700-6,800 and Rs 5,800 a quintal, respectively.

Pure basmati (raw) quoted at Rs 8,000. Duplicate basmati (steam) traded at Rs 5,500-5,600.

Sharbati (steam) increased by Rs 100 and quoted at Rs 4,300, while Sharbati (sela) was at Rs 4,175, up Rs 75.

Similarly, all PR varieties went up by Rs 50 a quintal. PR-11 (sela) sold at Rs 2,550-2,650 while PR-11 (raw) quoted at Rs 2,550-2,600. Permal (raw) sold at Rs 2,200-2,300 while Permal (sela) went for Rs 2,150-2,300.

PADDY ARRIVALS

About 2,000 bags of PR variety arrived and went for Rs 1,125-1,150; Sharbati arrived with a stock of around 2,000 bags and quoted at Rs 2,100-2,130.

About 5,000 bags of Pusa-1121 arrived and quoted at Rs 3,000-3,200 a quintal.

India: Power, water shortage to hit rabi paddy in AP

Paddy farmers in Andhra Pradesh are going to have a tough time in rabi season too. Lack of water in all the major reservoirs and severe shortage of power will make it difficult for the farmers to go for water-intensive paddy crop this time.

The Government officials have been advising the farmers to shun paddy this time and go for maize and other crops that require less water.

The sowing patterns so far clearly indicate a steady growth in the non-paddy crops. Paddy was sown in 88,000 hectares, just 50 per cent of the normal figure of 1.76 lakh ha. This is less than the last year’s position of 1.27 lakh ha. The State grows paddy in 15 lakh ha in the rabi season.

“Farmers in all the regions in the State are advised to raise irrigated maize and sunflower as an alternative rice as the groundwater turning scarce,” an official of Ministry of Agriculture said.

Yerneni Nagendranath, President of Farmers’ Federation of Andhra Pradesh, admits that the season was not favourable to grow paddy. “The Government has been claiming that it will give power for seven hours. But going by the availability, it is unlikely that we get not more than four hours. So, it is good for farmers either to avoid paddy or reduce the acreage in proportion to the availability of water and power,” he told Business Line on Sunday.

The Government had not released water under Nagarjunasagar and Sriramsagar in the kharif season. This situation is likely to continue in the rabi season too, if the levels in the reservoirs are any indication.

The storage level at Nagarjunasagar stands at 162 tmc (thousand million cubic feet ) as against 182 tmc recorded last year. The Sriramsagar reservoir reports 50 tmc (66 tmc).

India internal rice prices

The rice market witnessed a mixed trend on Monday. Prices of aromatic and sharbati varieties witnessed an uptrend while PR varieties declined on reduced offtake.

Expectations of an increase in demand pushed aromatic and sharbati varieties upwards, said Amit Chandna, proprietor of Hanuman Rice Trading Company. While slack demand coupled with the arrivals of new rice in the market dragged PR varieties down, he added.

“It is unlikely to see any major alteration in the prices of aromatic and non basmati rice this week,” said Amit Chandna.

In the physical market, Pusa-1121 (steam) went up by Rs 300 and sold at Rs 6,300-6,400 a quintal while Pusa-1121 (sela) sold at Rs 5,350 , Rs 50 up.

Pure basmati (raw) improved by Rs 250 and quoted at Rs 7,250 while pure basmati (sela) sold at Rs 6,600 a quintal, up Rs 100. Duplicate basmati (steam) traded at Rs 5,000-5,100.

On the other hand, PR-11 varieties eased by Rs 100, PR (sela) sold at Rs 2,450-2,550 while PR-11 (Raw) quoted at Rs 2,500. Price of Permal (raw) went down by Rs 50 and sold at Rs 2,050-2,200 while Permal (sela) went for Rs 2,100-2,200 , Rs 100 down.

Sharbati (steam) improved by Rs 200 and quoted at Rs 4,000 while Sharbati (sela) was at Rs 3,900 , up Rs 400.

PADDY ARRIVALS

About 15,000 bags of PR variety arrived and went for Rs 1,150-1,200 a quintal, Sharbati arrived with a stock of around 5,000 bags and quoted at Rs 1,750-1,850 , around 5,000 bags of DB variety arrived and sold at Rs 2,550-2,800.

About 20,000 bags of Pusa-1121 arrived and quoted at between Rs 2,750 and Rs 3,000, pure basmati paddy arrived with a stock of around 3,000 bags and sold at Rs 3,200-3,600.