Monday, 6 October 2014

ASEAN integration seen to boost markets for Philippines organic rice produce

Prospects appear bright for the country’s organically-grown products with the integration by next year of the 10 member-states of the Association of Southeast Asian Nations (ASEAN).

Leo Cañeda, coordinator of the Department of Agriculture (DA)-led National Organic Agriculture Board, said producers of organic farm products could tap key cities or areas within ASEAN as primary target for market expansion when the region’s economic integration eventually rolls out.

He said products like organic high-value vegetables and rice produced in Region 12 or the Soccsksargen Region could take the lead in the export expansion.

The region comprises the provinces of South Cotabato, Sultan Kudarat, Sarangani, North Cotabato and the cities of General Santos, Koronadal, Tacurong, Kidapawan and Cotabato.

“There’s so much opportunities and advantages for our organic farmers in the ASEAN economic integration,” he said at the opening of the four-day 1st Soccsksargen Region Organic Agriculture Congress and Trade Fair here on Wednesday.


But Cañeda said organic farmers or producers should be prepared and equipped with the proper skills and knowledge so they can properly market their products in the ASEAN.

He specifically cited the proper quality standards and other related requirements for organic export products.

ASEAN created a special task force last year to lead the development and promotion of the region’s standards on organic agriculture.

The task force is specifically working on the crafting of a common standard agreeable to and recognized by the ASEAN member-states to facilitate the trading of organic products in the region.

Region 12 has around 50 hectares of palay areas that are mainly producing organic premium rice varieties for exports.

Last year, the area’s organic rice producers have started exporting black rice and other colored, long grained and aromatic rice varieties to the Middle East and Singapore.

DA Region 12 is currently working for the entry of locally-produced premium rice to major markets in Russia, Italy, United States and other parts of the Middle East.

Thailand Rice export volumes soar nearly 60% in first eight months

Rice exports in the first eight months of the year grew significantly, by almost 60 per cent year on year, to 6.59 million tonnes, thanks to strong demand in many markets and a high supply from government stocks, according to the Thai Rice Exporters Association.

The association reported that the value of rice exports also increased by 22.4 per cent year on year to Bt105.83 billion.

Chareon Charoen Laothamatas, president of the association, said demand had increased considerably since July this year, particularly for white rice in some African countries.

In the first eight months of last year, Thailand exported only 4.14 million tonnes of rice worth Bt86.47 billion.

In the JanuaryAugust period this year, Benin imported the most at 852,502 tonnes, followed by Nigeria with 474,561 tonnes, China with 432,220, Ivory Coast with 383,663 and South Africa with 335,529.

Brazil grain and feed update

2013/2014 rice production is estimated at 8.3 mmt, a 3 percent increase from the
previous year. 2014/2015 production is forecast up 2 percent to 8.5 mmt on increased area. In the state
of Mato Grosso the increased area is attributed to the need to cultivate rice first when converting
degraded pastureland for other crops.
Rice Trade: 2013/2014 imports are estimated at 700,000 mt and exports at 900,000 mt, in line with
yearly trends. In August, Brazil shipped 31,500 mt of paddy rice to Turkey, despite onerous taxes and
transport costs. The rice industry sees this as success in expanding their global market share. The top
two destinations for Brazilian rice in 2014 are Venezuela and Cuba with 141,523 and 78,424 mt
respectively thus far. These two countries have constituted one third of rice exports between January
and August 2014.

Rice Consumption: Consumption remains steady with a slight upward trend due to population growth.
Average per person consumption is 41-43 kg per year and has held steady in recent years. Population
growth is expected to slightly outpace decreases in per capita consumption.

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%.

Thursday, 2 October 2014

Heavy rain hits Mekong Delta Vietnam rice harvest

Prolonged rains over the past week in the Cuu Long (Mekong) Delta have severely affected the harvest and quality of the summer-autumn rice crop.

The delta is entering peak harvest time for the crop, but harvesting has been slow, as ripe rice plants have been toppled by heavy rains and wind.

Pham Thi Ngot, who cultivates 0.6ha rice in Tam Binh District in Vinh Long Province, said more than 70 per cent of her plants had collapsed and must be harvested by hand.

Ngot said she was also short of workers as demand for farm help was high this season.

Heavy winds and rain have toppled about half of 27,000ha of ripe rice in Vinh Long Province, according to the province's Department of Agriculture and Rural Development.

Le Quang Thao, deputy chairman of the Xuan Hiep Commune People's Committee in Vinh Long's Tra On District, said: "The quality of harvested rice has declined, as many of the seeds have germinated."

Delta farmers have also had trouble sundrying their rice because of the rainy weather. In addition, there are not enough dryers on hand.

In Can Tho City, although farmers have harvested more than half of the city's 40,000ha of rice, few traders have bought the grain, citing low quality.

Rice companies have urged farmers to reduce the size of fields and plant only high-quality varieties.

The remaining cultivation areas should be switched to other cash crops, they said.

In Kieng Giang Province, the country's rice-production leader, heavy rains have also hindered harvesting.

Kien Giang's pump stations have been operating at full capacity over the past several days to draw water out of rice fields.

In addition, the price of hiring a worker to harvest one hectare of rice has gone up to VND500,000 (US$24).

Kien Giang has planted 230,000ha of rice for this summer-autumn crop.

In Hau Giang Province, farmers have harvested more than 25,000ha of 76,600ha of the summer-autumn crop, according to the province's Department of Agriculture and Rural Development.

Because of rains, farmers have been unable to dry rice and, as a result, the grain has germinated, leading to lower selling prices, according to the province's Department of Agriculture and Rural Development.

Bangladesh rice output hits a record high

Rice production edged up to a new high last fiscal year due to an increase in yield in all three crops seasons for favourable weather and a more balanced use of fertiliser.
Production rose to 3.44 crore tonnes in fiscal 2013-14, from 3.38 crore tonnes a year ago, thanks to a record boro output.
Boro yield rose 1.6 percent year-on-year to 1.90 crore tonnes in fiscal 2013-14, according to a recent estimate by Bangladesh Bureau of Statistics.
Despite the rise in output, imports started to show an upward trend in fiscal 2014-15 that began in July. Some 4,840 tonnes of rice were imported during July to September 28, according to data from the food ministry. During July to September 18 last year, 990 tonnes of rice were imported.
"Maybe some importers are bringing in rice from neighbouring countries to reap price benefits," said Abul Bashar Chowdhury, chairman of Chittagong-based BSM Group.
This was another year of increased rice yield despite falling cultivable land to grow the staple.
The country stands well above its annual food grain consumption requirement of less than three crore tonnes, according to a study by Bangladesh Institute of Development Studies.
The research organisation estimated that the daily per capita food grain consumption was 509 grams, including rice at 462 grams.
As a result, retail prices of rice have remained stable in the past couple of months. One of the main reasons behind this is a high level of global production of rice and wheat.

Food grain prices have been the lowest in recent years worldwide, Chowdhury said.
Banking on higher production and increased public stocks, the government has decided to export 50,000 tonnes of rice to Sri Lanka under a special arrangement.
The government decision comes at a time when damage to aman seedlings due to recurrent floods is feared to affect production.
The Department of Agricultural Extension (DAE) said most farmers were able to replant the seedlings of the second biggest crop on their affected fields after the floods.
But recent floods in some districts have affected crops, mostly aman paddy, on 1.13 lakh hectares of land, said a senior official of the DAE, seeking anonymity.
The DAE targeted to bring 52.50 lakh hectares of crop land under aman cultivation. So far, 55.05 lakh hectares have come under transplantation, the official said.
"Farmers replanted more than 90 percent of the seedlings in the fields damaged by the floods. But the recurrence of the floods is more depressing," he said.
The DAE aims to ensure production of 1.34 crore tonnes of rice from aman cultivation. It also targets 24 lakh tonnes of the staple during the aus season by ensuring cultivation on 10.55 lakh hectares.
The US Department of Agriculture lowered its prediction on Bangladesh's rice harvest last month. It says Bangladesh may harvest 3.46 crore tonnes of rice in the current fiscal year, down from its previous projection of 3.48 crore tonnes.

Wednesday, 1 October 2014

Heavy rain hits Mekong Delta rice harvest

Prolonged rains over the past week in the Cuu Long (Mekong) Delta have severely affected the harvest and quality of the summer-autumn rice crop.

The delta is entering peak harvest time for the crop, but harvesting has been slow, as ripe rice plants have been toppled by heavy rains and wind.

Pham Thi Ngot, who cultivates 0.6ha rice in Tam Binh District in Vinh Long Province, said more than 70 per cent of her plants had collapsed and must be harvested by hand.

Ngot said she was also short of workers as demand for farm help was high this season.

Heavy winds and rain have toppled about half of 27,000ha of ripe rice in Vinh Long Province, according to the province's Department of Agriculture and Rural Development.

Le Quang Thao, deputy chairman of the Xuan Hiep Commune People's Committee in Vinh Long's Tra On District, said: "The quality of harvested rice has declined, as many of the seeds have germinated."

Delta farmers have also had trouble sundrying their rice because of the rainy weather. In addition, there are not enough dryers on hand.

In Can Tho City, although farmers have harvested more than half of the city's 40,000ha of rice, few traders have bought the grain, citing low quality.

Rice companies have urged farmers to reduce the size of fields and plant only high-quality varieties.

The remaining cultivation areas should be switched to other cash crops, they said.

In Kieng Giang Province, the country's rice-production leader, heavy rains have also hindered harvesting.

Kien Giang's pump stations have been operating at full capacity over the past several days to draw water out of rice fields.

In addition, the price of hiring a worker to harvest one hectare of rice has gone up to VND500,000 (US$24).

Kien Giang has planted 230,000ha of rice for this summer-autumn crop.

In Hau Giang Province, farmers have harvested more than 25,000ha of 76,600ha of the summer-autumn crop, according to the province's Department of Agriculture and Rural Development.

Because of rains, farmers have been unable to dry rice and, as a result, the grain has germinated, leading to lower selling prices, according to the province's Department of Agriculture and Rural Development.

Thai government sells 70,000 T of rice from stocks in 2nd tender: official

The Thai government has sold another 70,000 tonnes of rice from the 140,000 tonnes it planned to sell in its second tender in September, a senior commerce ministry official said on Monday.
After the army took power in May and inspected rice stocks nationwide, state warehouses were estimated to hold around 18 million tonnes of rice, about a fifth of which was unlikely to be sold as it was believed to be missing and rotten.
The government said it aimed to sell around 100,000 tonnes of rice from stocks monthly, to gradually cut burdensome storage costs without depressing global prices.
"The 70,000 tonnes were awarded to 11 exporters who bid at prices close to market rates," said Duangporn Rodphaya, head of the commerce ministry's department of foreign trade, which oversees the government's sales of rice stocks.
The common grade Thai 5 percent broken white rice was offered at $440 per tonne.
In the first tender in August, the government sold 73,000 tonnes of rice out of 167,000 tonnes on offer, due to low bids.
Senior officials said the government is due to evaluate the quantity and quality of rice stocks next month to devise ways to deal with the grain and make up losses incurred by the previous government's money-guzzling rice buying scheme.
The rice support scheme helped bring former prime minister Yingluck Shinawatra to power in a landslide election in 2011 due to support from farmers, mostly in the remote areas of the country's northeast.
However, the scheme backfired when the government failed to sell rice to pay arrears to angry farmers, leading to months of protests that ended in a military coup in May.

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.

Thailand Commerce Ministry pushes for expansion of organic rice cultivation

The Commerce Ministry is planning to increase the market shares of Thai organic rice in both domestic and world markets, to resolve the problems of falling rice prices and tap the rising popularity for health products among consumers.

Director-General of the Department of Internal Trade (DIT) Jintana Chaiyawannakarn has gone down to inspect an organic rice production farm owned by the Farm Suk Company in Saraburi central province.

According to Ms. Jintana, the farm provides a model for other organic rice growers to boost quality of their produce. She also said that the demand for organic rice is continuously on the rise, as a number of consumers have become increasingly cautious about their health.

Meanwhile, Mr. Kan Traithong, the owner of Farm Suk, revealed that the capital cost for an organic rice farm is only around 3,000 baht per rai since the crop does not require pesticides or chemicals.

Organic rice currently fetches a price of up to 10,000 baht per ton in the market. The high demand, both in local and international markets, has made organic rice an attractive source of investment.