29th september,2015 daily exclusive oryza rice e newsletter by riceplus magazine

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Daily Exclusive ORYZA Rice E-Newsletter Contents are published with permission of ORYZA.com

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Vol 5.Issue XIV

September 29, 2015

Daily Exclusive ORYZA Rice E-Newsletter

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Ancient Rice Varieties in India Before and

After Green Revolution

Sep 28, 2015

Efforts are on to blend the unique qualities of some ancient rice varieties through genetic

engineering into some popular rice varieties to obtain tasty, healthy, high yielding and low

duration varieties, according to local sources.

A number of ancient rice varieties, which were known for their health benefits and taste, have

lost their importance after the green revolution. A lot of importance is being given to increasing

production to feed millions of people. Thus hybrid varieties have replaced ancient rice varieties.

In order to revive these older rice varieties, a NGO called Devamirtham has decided to work

closely with farmers to bring put these varieties to use. As part of these efforts, the NGO

arranged an exhibition in Chennai, where nearly 25 ancient rice varieties were put up for sale.

Researchers are now planning to release these varieties for commercial use after testing their

nutritional properties. Experts say since ancient varieties yield very less, they need to be

genetically modified with popular varieties to produce rice varieties with nutritional qualities as

well other qualities such as high-yielding and low duration.

Changes to EU CAP Possible through Mid-

Term Review, Says Former Italian Minister

Sep 28, 2015

Most of the stakeholders are unhappy with the new Common Agricultural Policy (CAP) of the

European Union (EU) since it recommends a cut in the EU agricultural budget. While the

European Commission (EC) is planning to simplify the CAP at the end of this year, the EU

Parliament fears that a complete CAP reform would further cut down the EU agricultural budget.

However, Italy's former Minister of Agriculture noted that changes to the current CAP can are

possible in the mid-term review. Speaking at a workshop titled "Can the (new) CAP deliver on

sustainability?" in Milan, he noted that the new CAP is a hybrid policy that runs the risk of

displeasing all parties. He is also the former chairman of the Parliament's Committee on

Agriculture and Rural Development and current coordinator of the S&D group in the committee.

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He noted that the EC is underestimating problems and is finding temporary solutions for

structural problems. For instance, he said an aid package worth €500 million for supporting milk

and meat sectors, though positive, does not solve the problem completely. While the new CAP

recommends direct cash payments per hectare to farmers, the former Minister says there is a

need for more risk management instruments.

Other participants in the workshop noted that the mid-term review should also focus on including

certain measures to support younger farmers. They noted that due to the absence of proper access

to land and credit, young people are showing interest to enter the farming sector.

Responding to the speakers’ views, the Press Officer of the EC noted that the Commission has

approved the aid package after considering the price volatility. He also noted that the new CAP

focuses on benefits to the younger generation. The Commission is further evaluating new

measures related to addressing the ageing sector, including loans whose repayment would

depend on price performance, he added.

The new CAP accounts for only 37.8% of the EU's 2014-2020 budget compared to nearly 71% in 1984. It

reportedly places a greater emphasis on environmental measures, with up to 30% of the funding

granted to farmers who diversify production, rotate their land or maintain permanent pastures

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Indian Farmers Urge Government to Revise

MSP of Basmati Paddy to Cope with Falling

Prices

Sep 28, 2015

Farmers who had sown basmati 1509 variety are expressing concern that falling prices and lack

of buyers in the market are making their situation worse, according to local sources.

As the harvest is almost nearing completion, farmers are even more concerned about the storage

of their output. This year, the government directed the procurement agencies to buy basmati

1509 variety 'Grade A' at Rs.1,450 per quintal (around $218 per ton). However, most of the

traders are understood to be procuring the variety at much lower prices compared to the MSP.

Export demand for this variety is said to be falling due to higher moisture and breakage content.

Most of the farmers are forced to sell their output at around Rs.900-1,200 per quintal (around

$136-$181 per ton) fearing a lack of demand. The amount is inadequate to cover their input

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costs, according to local sources. Last year, the variety fetched around Rs.1,800-2,200 per

quintal (around $271-$331 per ton).

Meanwhile, basmati rice exporters are blaming the state governments of Punjab and Haryana

(where most of the basmati is grown) and the Central government for not discouraging farmers

from sowing this variety. The exporters have reportedly requested farmers to sow basmati 1509

paddy after July 15 to lower the breakage content. But most of the paddy was sown before that

they said.

The 1509 variety was promoted among the farmers as a high yielding and short-duration variety.

It provides a yield of 6.25 tons per hectare compared to 5 tons per hectare provided by basmati

1121 variety. In 2013, farmers received about Rs.4,000 per quintal (around $603 per ton) for the

1509 variety.

However, exporters could not sell the variety to the overseas buyers due to high broken content.

Therefore this year, exporters and millers are unwilling to buy the variety and prices are

tumbling, say local sources.

Now, farmers are demanding a hike in the minimum support price (MSP) of the basmati paddy.

They are also warning to stage protests if the MSP is not increased. They say planting basmati

1509 has cost them about Rs.16,000 per acre (around $602 per hectare) on an average. "We

farmers expect at least Rs. 2,000 profit to survive and sustain our family. Otherwise, we will be

doomed," one farmer was quoted.

Thailand, Vietnam Rice Sellers Increase

Some of Their Quotes Today; Other Asia Rice

Quotes Unchanged

Sep 28, 2015

Thailand rice sellers increased their quotes for 5% broken rice, parboiled rice and Hommali rice

by about $5 per ton each to around $345-$355 per ton, $345-$355 per ton and $810-$820 per ton

respectively today. Vietnam rice sellers increased their quotes for 5% broken rice and Jasmine

rice by about $5 per ton each to around $335-$345 per ton and $455-$465 per ton respectively.

India rice sellers kept their quotes mostly unchanged. Pakistan rice sellers are out today due to a

national holiday.

5% Broken Rice

Thailand 5% rice is indicated at around $345 - $355 per ton, up about $5 per ton from Friday

and about $10 per ton premium on Vietnam 5% rice shown at around $335 - $345 per ton, up

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about $5 per ton from Friday. India 5% rice is indicated at around $355 - $365 per ton, about

$45 per ton premium on Pakistan 5% rice last shown at around $310 - $320 per ton.

25% Broken Rice

Thailand 25% rice shown at around $330 - $340 per ton, about $10 per ton premium on Vietnam

25% rice shown at around $320- $330 per ton. India 25% rice is indicated at around $315 - $325

per ton, about $25 per ton premium on Pakistan 25% rice last shown at around $290 - $300 per

ton.

Parboiled Rice

Thailand parboiled rice is indicated at around $345 - $355 per ton, up about $5 per ton from

Friday. India parboiled rice is indicated at around $340- $350 per ton, about $75 per ton discount

to Pakistan parboiled rice last shown at around $415 - $425 per ton.

100% Broken Rice

Thailand broken rice, A1 Super, indicated at around $305 - $315 per ton, at par with Vietnam

100% broken rice shown at around $305 - $315 per ton. India's 100% broken rice is shown at

around $300 - $310 per ton, about $25 per ton premium on Pakistan broken sortexed rice was

last shown at around $275 - $285 per ton.

FAO Estimates Cambodia Rice Exports to

Increase Sharply in 2015

Sep 28, 2015

The UN's Food and Agricultural Organization (FAO) estimates Cambodia's total rice exports

(including official and unofficial exports to Thailand and Vietnam) to reach about 1.2 million

tons in 2015, up about 6% from last year.

The FAO says the government's strategy to boost official exports through targeting new markets

is being reflected in the high pace of shipments so far this year. Direct milled rice exports

between January and August 2015 have reached about 342,136 tonnes, up about 50% from the

same period in the previous year.

The UN agency estimates 2015 total paddy rice production at around 9.18 million tons, down

about 1.5% from around 9.324 million tons in 2014. Planting of the main (wet) season paddy

crop began in June and will continue till October. Below-average rains between May and July

reportedly delayed planting operations. Around 189,122 hectares have been damaged due to dry

weather conditions. However, normal rains from August helped planting operations to pick up.

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The FAO estimates output from the main season crop to decline about 3% y/y to 7 million tons

in 2015 and output from the dry season crop to compensate for the losses from main season crop.

Wholesale rice prices increased in most of the markets in August due to increased export

demand. Concerns about damage to the 2015 main season crops due to prolonged dry weather

also pushed prices during the month. However, prices were below their year-ago levels,

according to the FAO.

Italian Paddy Rice Acreage Increases About

3.5% in 2015-16 Crop Year

The Italian paddy rice acreage in 2015-16 (September - August) reached around 227,329 hectares, up about 3.5% from around 219,532 hectares in the previous crop year, according to data provided by Ente Nazionale Risi, the National Agency for Rice.

The Ente Nazionale Risi data shows that the paddy rice growing area in Pavia, Vercelli and

Novara reached around 80,127 hectares, 69,709 hectares and 33,001 hectares respectively.

The 2015-16 acreage for round varieties increased about 8.1% y/y to around 56,946 hectares; the

acreage for medium varieties increased about 56.4% y/y to around 1,183 hectares; and acreage

for Long A varieties increased about 20.4% y/y to around 125,832 hectares. However, the

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acreage for Long B varieties declined by about 36.5% y/y to around 35,080 hectares.

Harvesting is continuing in most of the fields, according to local sources. "Regularity and

consistency of water availability exercised undoubtedly a crucial impact on production," noted

an agronomist. However, he stated that results are not so good in areas where there were no

adequate irrigation facilities during the important phases of plant growth. The final impact will

be known after the completion of harvests, he said.

Japan May Allow Access to Over 100,000

Tons of U.S. Rice Under Deal

Sep 28, 2015

Japan may provide access to more than 100,000 tons of U.S. rice under a rice deal, but that

would be divided between a new country-specific tariff-rate quota (TRQ) and an additional

informal allocation of Tokyo's existing WTO TRQ, Inside U.S. Trade quoted the congressional

sources.

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Under the TPP deal, Japan is planning to allow 50,000 tons of duty-free rice imports from the

U.S. and gradually increase up to 70,000 tons. Japan will reportedly increase imports from the

U.S. by 2,000 tons from the fourth year of the agreement.

In addition to the above, Japan may agree to informally allocate between 45,000 - 50,000 tons of

its annual WTO TRQ, which is currently 682,000 tons (on a milled basis). However, these

imports have to pass through the Japan's Ministry of Agriculture, Forestry and Fisheries (MAFF)

rather than being sold directly to end users. It is understood that the new quota will be

administered through the simultaneous buy-sell (SBS) system, under which the MAFF buys rice,

stores and sells it for low-value uses like feed or flour.

The U.S. producers are, however, seeking improvements to the quality of access to the Japan rice

market rather than just elimination of tariffs or increase in quotas.

Indonesian President Rules Out Rice Imports

Sep 28, 2015

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The Indonesian President has ruled out rice imports this year citing adequate stocks to fulfil the

local consumption demand, according to local sources. The President's statement is contradicting

the Vice-President's statement that the country is importing around 1.5 million tons of rice from

Thailand and Vietnam to ensure adequate stocks in the country.

The President who visited rice fields in Karawang told local sourced that Indonesia's rice stocks

currently stand at 1.7 million tons and another 200,000 - 300,000 tons would be added during the

harvest period in October and November. He noted that "the rice reserve is quite safe" though El

Nino is likely to continue till the end of this year.

He noted that the government will again calculate the impact of the extending drought conditions

on potential harvest failures across the country to arrive at the exact reserves. “Our priority is to

ensure adequate supply, smooth distribution and affordable prices of rice. We will conduct

widespread market operations this week to help push down the prices,” he was quoted as saying.

The state logistics agency Bulog reportedly did not comment on the President's statement on

imports. Earlier, it anticipated a need to import rice in March/April next year.

The country's statistics agency BPS, which estimated Indonesia to produce around 75.5 million

tons or paddy rice, is also in the process of re-evaluating the estimates taking into effect the

impact of drought.

The President is keen on achieving self-sufficiency in rice production and avoid imports.

Global Rice Quotes

September 29th, 2015

Long grain white rice - high quality

Thailand 100% B grade 355-365 ↔

Vietnam 5% broken 330-340 ↓

India 5% broken 355-355 ↔

Pakistan 5% broken 305-315 ↓

Myanmar 5% broken 410-420 ↓

Cambodia 5% broken 415-425 ↔

U.S. 4% broken 530-540 ↔

Uruguay 5% broken 535-545 ↔

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Argentina 5% broken 530-540 ↔

Long grain white rice - low quality

Thailand 25% broken 330-340 ↔

Vietnam 25% broken 315-325 ↓

Pakistan 25% broken 285-295 ↓

Cambodia 25% broken 400-410 ↔

India 25% broken 315-325 ↔

U.S. 15% broken 500-510 ↔

Long grain parboiled rice

Thailand parboiled 100% stxd 345-355 ↔

Pakistan parboiled 5% broken stxd 415-425 ↔

India parboiled 5% broken stxd 340-350 ↔

U.S. parboiled 4% broken 570-580 ↔

Brazil parboiled 5% broken 545-555 ↔

Uruguay parboiled 5% broken NQ ↔

Long grain fragrant rice

Thailand Hommali 92% 805-815 ↓

Vietnam Jasmine 450-460 ↓

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 830-840 ↔

Brokens

Thailand A1 Super 305-315 ↔

Vietnam 100% broken 305-315 ↔

Pakistan 100% broken stxd 275-285 ↔

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Cambodia A1 Super 355-365 ↔

India 100% broken stxd 300-310 ↔

Egypt medium grain brokens NQ ↔

U.S. pet food 335-345 ↔

Brazil half grain NQ ↔

All prices USD per ton, FOB vessel, oryza.com

Oryza U.S. Rough Rice Recap - Prices

Continue to Firm amid a Lack of Farmer

Selling; Harvest 69% Complete

Sep 29, 2015

The U.S. cash market was slightly firmer today rallying in tandem with a stronger futures

market. Analysts note that farmers are not very interested in marketing their rice at the current

price as most expect prices to continue to increase as the market looks to ration smaller domestic

supplies.

In the meantime, the USDA estimates that as of September 27, 69% of the crop had been

harvested which was 12% ahead of this time last year and 6% ahead of the previous 5-year

average. As of now, the USDA estimates that 72% of the rice crop in Arkansas had been

harvested compared to 35% in California, 98% in Louisiana, 76% in Mississippi, 48% in

Missouri, and 98% in Texas.

Thailand, Vietnam Rice Sellers Increase

Some of Their Quotes Today; Other Asia Rice

Quotes Unchanged

Sep 28, 2015

Thailand rice sellers increased their quotes for 5% broken rice, parboiled rice and Hommali rice

by about $5 per ton each to around $345-$355 per ton, $345-$355 per ton and $810-$820 per ton

respectively today. Vietnam rice sellers increased their quotes for 5% broken rice and Jasmine

rice by about $5 per ton each to around $335-$345 per ton and $455-$465 per ton respectively.

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India rice sellers kept their quotes mostly unchanged. Pakistan rice sellers are out today due to a

national holiday.

5% Broken Rice

Thailand 5% rice is indicated at around $345 - $355 per ton, up about $5 per ton from Friday

and about $10 per ton premium on Vietnam 5% rice shown at around $335 - $345 per ton, up

about $5 per ton from Friday. India 5% rice is indicated at around $355 - $365 per ton, about

$45 per ton premium on Pakistan 5% rice last shown at around $310 - $320 per ton.

25% Broken Rice

Thailand 25% rice shown at around $330 - $340 per ton, about $10 per ton premium on Vietnam

25% rice shown at around $320- $330 per ton. India 25% rice is indicated at around $315 - $325

per ton, about $25 per ton premium on Pakistan 25% rice last shown at around $290 - $300 per

ton.

Parboiled Rice

Thailand parboiled rice is indicated at around $345 - $355 per ton, up about $5 per ton from

Friday. India parboiled rice is indicated at around $340- $350 per ton, about $75 per ton discount

to Pakistan parboiled rice last shown at around $415 - $425 per ton.

100% Broken Rice

Thailand broken rice, A1 Super, indicated at around $305 - $315 per ton, at par with Vietnam

100% broken rice shown at around $305 - $315 per ton. India's 100% broken rice is shown at

around $300 - $310 per ton, about $25 per ton premium on Pakistan broken sortexed rice was

last shown at around $275 - $285 per ton.

29th september,2015 daily exclusive oryza rice e newsletter by riceplus magazine

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