19th february ,2016 daily exclusive oryza rice e newsletter by riceplus magazine

Daily Exclusive ORYZA Rice E-Newsletter

1

www.ricepluss.com www.riceplusmagazine.blogspot.com

February 19,2016 Vol 7,Issue II


2

Ghana Rice Farmers Complain of Lack of Buyers for Locally Produced

Rice

18-Feb-16

Ghana rice farmers are expressing concern that there are no buyers for locally produced

rice due to the influx of imported rice, according to Ghana News.

They noted that due to this, their incomes are impacted significantly and most of them are

forced to quit rice farming. They noted that they spent about 1,500 - 2,000 GHC per acre

(around 9 - 13 cents per hectare), and since there are no buyers for their rice, they are

forced to find other means of income to settle their bank loans and other debts.

They told reporters that they mainly face challenges from bad road network, delayed and

improper harvesting, threshing, drying and storage handling facilities. They noted that they

face a lot of difficulty in transporting their output to the nearby markets. The price of

locally produced paddy declined significantly due to an increase in imported rice.

They noted that consumers are of the opinion that local rice is not processed properly, does

not taste good and is full of stones and husk. “There is, therefore, the need to create

awareness on consumption of the local rice to enable farmers to make financial gains take

care of our families and reduce poverty,” said one of the farmers.

The Programme Coordinator of Peasant Farmers Association of Ghana (PFAG) urged the

government to set up good processing practices such as grading, labelling, milling and good

packaging to help consumers to develop appetite for local rice. She also urged the

government to improve market information on prices and other related things.

However, the government officials say farmers should voice their concerns to the

concerned Ministries. “We are not aware of this development therefore the farmers should

come together and officially communicate the issue to the ministry, so that we would be

able to deal with it,” the Deputy Minister of Food and Agriculture was quoted.


3

Ghana imports over a half of its annual rice consumption demand and the government is

planning to increase rice production by about 20% per annum over the next four years to

make Ghana self-sufficient in rice. USDA estimates Ghana rice production at about 300,000

tons (milled basis) in MY 2015-16 (October - September). The U.S. agency expects Ghana to

import 600,000 tons of rice in 2016 to meet consumption needs of around 930,000 tons.

Vietnam Rice Sellers Increase Some of Their Quotes Today; Other Asia

Rice Quotes Unchanged Feb 18, 2016

Vietnam rice sellers increased their quotes for 5% broken rice by about $5 per ton to around

$350-$360 per ton today. Other Asia rice sellers kept their quotes unchanged

today.

5% Broken Rice

Thailand 5% rice is indicated at around $360 - $370 per ton, about $10 per ton premium on

Vietnam 5% rice shown at around $350 - $360 per ton. India 5% rice is indicated at around $360

- $370 per ton, about $20 per ton premium on Pakistan 5% rice shown at around $340 - $350 per

ton.

25% Broken Rice

Thailand 25% rice is indicated at around $345 - $355 per ton, about $10 per ton premium on

Vietnam 25% rice shown at around $335- $345 per ton. India 25% rice is indicated at around

$325 - $335 per ton, about $15 per ton premium on Pakistan 25% rice shown at around $310 -

$320 per ton.

Parboiled Rice

Thailand parboiled rice is indicated at around $370 - $380 per ton. India parboiled rice is

indicated at around $350 - $360 per ton, about $55 per ton discount to Pakistan parboiled rice

last shown at around $405 - $415 per ton.

100% Broken Rice

Thailand broken rice, A1 Super is indicated at around $325 - $335 per ton, about $5 per ton

premium on Vietnam 100% broken rice shown at around $320 - $330 per ton. India's 100%

broken rice is shown at around $260 - $270 per ton, about $30 per ton discount to Pakistan

broken sortexed rice shown at around $290 - $300 per ton.


4

Rice Exporters to U.S. Must Register with India’s Plant Quarantine Organization, Says APEDA

Feb 18, 2016

The Agricultural and Processed Food Products Export Development Authority (APEDA) has

made it mandatory for all Indian rice mills/processing units exporting basmati rice to the U.S. to

register with India's plant quarantine organization, National Plant Protection Organization

(NPPO), to ensure quality rice exports to the U.S., according to Business Standard.

The APEDA has issued a warning that basmati rice exports to the U.S. would be allowed only

from rice mills/processing units registered with NPPO effective April 1, 2016. The APEDA

reportedly noted that the NPPO would audit the plants of registered exporters before issuing

phyto-sanitary certificate for export of rice to the U.S.

Some exporters noted that the directive is to reduce rejections of Indian basmati rice

consignments by the U.S. phyto-sanitary authority. “This is perhaps an attempt to regulate the

market as consignments shipped to the US develop some issues related to pests or any other

things. Mandatory registration with NPPO will filter out opportunistic exporters, while genuine

ones would continue. This will help control the rate of rejection of consignments also,” said one

of the top basmati rice exporters in India.

The U.S. has sought such registration after it had detected cabinet beetle in basmati rice of Indian

origin in 2011-12. Trade sources told reporters that about 10-15% of basmati rice consignments

from India get rejected every year.

Though some exporters expressed concern that basmati exports to the U.S. would be impacted

due to the directive, an APEDA official ruled out such concerns. “Around 95 per cent of

exporters have already got registered with NPPO with basmati rice shipment happening in very

organised manner. Therefore, it his highly unlikely there will be any impact in terms of basmati

rice exports to the US with 10 per variation being common,” he was quoted.

The U.S. accounts for about 5% of India's total basmati rice exports. India exports about 100,000

tons of basmati and 25,000 tons of non-basmati rice to the U.S. every year.

The Executive Director of the All India Rice Exporters Association (AIREA) noted that the

development would prompt basmati rice exports to China as well, as China had also in the past

sought a standard operating system of basmati rice exporters in India.

Government of Angola Sets Up Body to Monitor Rice, Other Food Prices


5

The government of Angola has set up the National Council of Pricing to monitor prices of rice

and other food items such as sugar, milk, beef, fish and corn, which are subject to fixed prices,

amid increasing costs and reports of shortages of some food items, Bloomberg quoted the

government Gazette. It will in total monitor prices of 32 items, including transport fees, port &

airport tariffs.

The government will usually review the prices of these items annually.

As of February 16, 2016, Angola has adequate food reserves, according to the Radio Nacional

De Angola.

Angola is currently facing declining foreign exchange reserves due to declining oil prices as

crude oil accounts for about 90% of its export

Indian Court to Deal with Central State Madhya Pradesh’s Basmati GI

Plea Feb 18, 2016

The Agricultural and Processed Food Products Export Development Authority (APEDA) applied

with the GI Registry seeking exclusive (commercial) use of the basmati tag for rice grown within

the boundaries of Indo-Gangetic plain (including the Punjab, Haryana, (western) Uttar Pradesh,

Uttarakhand, Delhi and Jammu and Kashmir). India's central state Madhya Pradesh (MP) sought

for its inclusion in the GI tag application. When the Agriculture and Commerce Ministries as

well as the APEDA opposed the state's plea, it filed an application with the IPAB.

On February 5, 2016, the IPAB ordered the Chennai-based GI registry to grant GI certificate to

Indian basmati rice grown in Indo-Gangetic plains based on APEDA"s application, and sent back

the MP's petition to the Chennai-Registry asking it to pass an order within six months after

hearing to related parties. The Madhya Pradesh governemnt challenged the IPAB decision in the

Madras High Court.

The Counsel for MP requested for the proceedings to be carried out in the Court instead of the

Assistant Registrar of GI (ARGI) office. The Court reportedly adjourned the case to April 5,

2016 and directed the concerned authorities to file their replies by them.

In the meantime, the Court directed the APEDA not to take any "precipitating action" over

basmati rice produce from MP until a decision is taken on a petition it received from the central

Indian state, according to Business Standard.

The GI Registry reportedly granted the GI certificate to Indian basmati rice grown in Indo-

Gangetic Plains and APEDA has been recognized as the sole custodian for it. The certificate will

bar other countries and companies from using the 'basmati' tag.


6

EC May Propose to Temporarily Allow Use of Tricyclazole Fungicide in

EU Feb 18, 2016

The European Commission (EC) will soon present a proposal authorizing the temporary

inclusion of tricyclazole fungicide among those authorized in agriculture , used to contain the

rice blast disease, according to local sources.

The European Standing Committee on Plants, Animals, Food and Feed (PAFF), which examined

the draft regulation submitted by the EU opposing the authorization of the use of the tricyclazole

fungicide, in October 2015 could not block its use in the EU due to a lack of qualified majority.

The European Food Safety Authority (EFSA) also noted that the present tests conducted on the

tricyclazole fungicide are not sufficient to block its use in the EU. However, it said it cannot

comment on the extent of the maximum residue limits (MRLs) of tricyclazole in imported rice,

as it does not have enough data to determine all the effects on humans and the environment, as

required by Reg. 1107 / 2009.

The fungicide is used around the world and to forbid its use in Europe is said to result in

the blocking of imports of Asian rice

Government of Myanmar Urged to Prepare Rice Reserves This Year to

Make Up for Likely Production Shortfalls Feb 18, 2016

The officials of the Myanmar Rice Federation (MRF) are urging the government to prepare rice

reserves in anticipation of drought conditions in the country, according to Irrawaddy News.

The Vice-Chairman of the MRF noted that due to likely extended dry conditions and water

shortages, they are expecting rice shortages and increase in prices. Since the country's annual

paddy harvest runs from around June-July until September-October, the government should

consider storing rice between April and May, he said.

Weather specialists are reportedly forecasting dry weather conditions during the first six months

of this year. They are predicting temperatures above 40 degrees Celsius in major rice-growing

regions, including Magwe, Pegu and Irrawaddy divisions. One of the former weather forecasters

in the country warned that the country needs to prepare for some of the highest temperatures yet

this summer.


7

Local sources noted that the government may start procuring rice for reserves. They noted that

the Ministry of Commerce had prepared over 40 warehouses for the storage of rice in Rangoon,

Mandalay and Irrawaddy divisions, as well as Arakan State.

Ghana Rice Farmers Complain of Lack of Buyers for Locally Produced

Rice Feb 18, 2016

Ghana rice farmers are expressing concern that there are no buyers for locally produced rice due

to the influx of imported rice, according to Ghana News.

They noted that due to this, their incomes are impacted significantly and most of them are forced

to quit rice farming. They noted that they spent about 1,500 - 2,000 GHC per acre (around 9 - 13

cents per hectare), and since there are no buyers for their rice, they are forced to find other means

of income to settle their bank loans and other debts.

They told reporters that they mainly face challenges from bad road network, delayed and

improper harvesting, threshing, drying and storage handling facilities. They noted that they face

a lot of difficulty in transporting their output to the nearby markets. The price of locally

produced paddy declined significantly due to an increase in imported rice.

They noted that consumers are of the opinion that local rice is not processed properly, does not

taste good and is full of stones and husk. “There is, therefore, the need to create awareness on

consumption of the local rice to enable farmers to make financial gains take care of our families

and reduce poverty,” said one of the farmers.

The Programme Coordinator of Peasant Farmers Association of Ghana (PFAG) urged the

government to set up good processing practices such as grading, labelling, milling and good

packaging to help consumers to develop appetite for local rice. She also urged the government to

improve market information on prices and other related things.

However, the government officials say farmers should voice their concerns to the concerned

Ministries. “We are not aware of this development therefore the farmers should come together

and officially communicate the issue to the ministry, so that we would be able to deal with it,”

the Deputy Minister of Food and Agriculture was quoted.


8

Ghana imports over a half of its annual rice consumption demand and the government is

planning to increase rice production by about 20% per annum over the next four years to

make Ghana self-sufficient in rice. USDA estimates Ghana rice production at about 300,000

tons (milled basis) in MY 2015-16 (October - September). The U.S. agency expects Ghana to

import 600,000 tons of rice in 2016 to meet consumption needs of around 930,000 tons.

Oryza U.S. Rough Rice Recap - Prices Oscillate with Futures; Farmers

Waiting on Iraq Feb 19, 2016

The U.S. cash market was slightly weaker today with offers from resellers oscillating with the

futures market as farmers remain on the sidelines.

Analysts note that many farmers are waiting to see the results of the latest Iraqi tender before

pricing the rest of their crop hoping that they buy a large chunk from the U.S. leading to higher

prices.

Oryza U.S. Rough Rice Recap - Prices Oscillate with Futures; Farmers

Waiting on Iraq Feb 19, 2016

The U.S. cash market was slightly weaker today with offers from resellers oscillating with the

futures market as farmers remain on the sidelines.

Analysts note that many farmers are waiting to see the results of the latest Iraqi tender before

pricing the rest of their crop hoping that they buy a large chunk from the U.S. leading to higher

prices.

Government of China Plans to Clear Old Rice Stocks from Reserves Feb 18, 2016

The government of China is planning to clear the old rice and corn stocks and has asked local

grains administrations to recommend potential buyers of the stocks, Bloomberg quoted reliable

sources.

Sources told reporters that ethanol, feed and starch producers are some potential buyers.


9

Central government agencies are understood to be finalizing volumes and prices for sales.

The previous attempt by the government to sell rice stocks from reserves did not attract higher

number of bidders due to high prices and quality concerns.

Thailand 2015-16 Secondary Rice Crop Acreage Declines by Half Due to

Drought, Says Minister Feb 18, 2016

Thailand's 2015-16 secondary rice crop (January - June) acreage declined by about half to around

800,000 hectares due to extending drought conditions, Bloomberg quotes Minister for

Agriculture and Cooperatives.

Water levels in the country's dams stood at around 3.2 billion cubic meters as of February 15,

2016 compared to around 6.8 cubic meters on November 1, 2015. Authorities have been

discouraging rice farmers to avoid planting for the secondary rice crop due to insufficient water

supplies.

Accordingly, the country's rice output from the secondary crop is expected to drop significantly.

The Minister told reporters that plans for the country’s 2015-16 main rice crop (May -

December) will be complete by around April.

In a recent report, the USDA Post forecast Thailand's MY 2015-16 (January - December 2016)

paddy rice production at around 24 million tons, down from last year's 29.4 million tons. It

forecast Thai off-season paddy production to decline about 57% y/y to around 3.1 million tons.

Thai Rice Pledging Scheme Lacked Proper Accounting and Auditing

Systems, Said Witnesses Feb 18, 2016

Witnesses who were present at the Court on February 17, 2016, to testify against the former

Prime Minister told judges that the scheme lacked appropriate accounting system leading to

loopholes in disbursements of the state budget, according to local sources.

The Chairwoman of the Auditing Committee under the Federation of Accounting Professions

said that the accounting of the scheme failed to adopt the double entry system, which clearly

shows all the expenses and debts. The scheme also lacked periodical accounting procedures and

so auditors could not get a clear picture of its financial status at any given time, she said. The

auditor also noted that accounts were prepared by some state agencies concerned with the


10

scheme such as the Bank for Agriculture and Agricultural Cooperatives (BAAC) or Public

Warehouse Organisation (PWO).

She also noted that some of the rice stockpiles pledged under the scheme were lost and the

depreciation cost of the stockpiled rice reached about 34 billion baht (around $956 million).

A National Anti-Corruption Commission (NACC) member, who previously chaired a

subcommittee auditing the rice-pledging scheme under the Yingluck administration, noted that

the previous government misspent money drawn from rice sales. This had shouldered a lot of

burden on Finance Ministry, she said.

Meanwhile, the former Premier told reporters that she would continue her legal fight in the rice

pledging case. She stated that though problems were at the execution level, she was being

targeted. "I have the duty and responsibility to fight on. All eyes are on me. I assure you I've

never thought of fleeing," she was quoted.

The former Prime Minister is facing charges of dereliction of duty in preventing multi-billion

dollar graft in running the controversial rice pledging scheme introduced by her government in

October 2011. The scheme is estimated to have caused losses to the extent of about 500 billion

baht (around $14 billion) to the government. If proved guilty in the present case, she may have to

face imprisonment for ten years.

Salt Water Intrusion to Affect Vietnam's Rice Output and Exports, Say

Experts Feb 18, 2016

Experts have warned that increasing salt water intrusion in Vietnam is likely to impact the

nation's rice production and exports significantly, Bloomberg quoted local sources.

Speaking at a meeting in Hanoi, the former Director of The Institute of Agricultural Science for

Southern Vietnam noted that the increased salt water intrusion is partly due to dams upstream

built by China and Laos. He warned that the situation is affecting Vietnam's Mekong Delta and

will be worsening.

He noted that due to a decline in water levels in rivers, about 339,200 hectares of paddy are

likely to be affected. He added that rice plants can survive in water with up to 2 grams of salt per

litre, but this year, salinity has reached up to 10 grams per litre. More than 200,000 tons of rice

worth at least 1 trillion

Vietnamese dong (around $44.64 million) has already been damaged, he said.The Deputy

Director of the National Centre for Hydro-Meteorological Forecasting noted that: "saltwater has

intruded 90 kilometres inland in some places due to low river levels, reaching places it had not

for the last 90 years."Agriculture Ministry officials noted that this year's saltwater intrusion will


11

affect around a fifth of crops across the Mekong Delta. But, experts noted that though salt water

intrusion may not affect food security, it is likely to impact the country's exports.

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Fall

Back below $11.00/cwt as Outside Markets Fail to Provide Support Feb 19, 2016

Chicago rough rice futures for Mar delivery settled 18 cents per cwt (about $4 per ton) lower at

$10.860 per cwt (about $239 per ton). The other grains finished the day lower; Soybeans closed

about 0.3% lower at $8.8275 per bushel; wheat finished about 1.3% lower at $4.6850 per bushel,

and corn finished the day about 0.5% lower at $3.6975 per bushel.

U.S. stocks traded mostly lower Thursday, stabilizing after their largest three-day gain since

August, as investors eyed oil prices and corporate news. U.S. crude oil futures came off session

highs and struggled to hold gains after weekly crude inventories rose by 2.1 million barrels. WTI

traded flat around $30.65 a barrel as of 1:55 p.m. ET. As of intraday trade Thursday, the major

U.S. averages were on track for weekly gains of about 3% or more. European stocks came off

highs, while in Asia the Nikkei 225 and Hang Seng surged more than 2%.

The Shanghai composite was a touch lower but held gains of 3.6% for the week so far. In

economic news Thursday, weekly jobless claims came in at 262,000. The Philly Fed index came

in at minus 2.8 for February. The index has held in negative territory since September. In

afternoon trade, the Dow Jones industrial average declined 33 points, or 0.2%, to 16,420. The

S&P 500 traded down 6 points, or 0.36%, to 1,919, with financials leading eight sectors lower

and utilities and telecommunications advancing. The Nasdaq composite traded down 35 points,

or 0.8%, to 4,498. Gold is seen trading about 1.7% higher, crude oil is seen trading about 0.1%

higher, and the U.S. dollar is seen trading about 0.2% higher at about 1:30pm Chicago time.

Wednesday, there were 1,107 contracts traded, down from 2,658 contracts traded

on Tuesday. Open interest – the number of contracts outstanding – on Wednesday

decreased by 18 contracts to 13,133

Global Rice Quotes

February 19th, 2016

Long grain white rice - high quality

Thailand 100% B grade 365-375 ↓

Vietnam 5% broken 345-355 ↓

India 5% broken 360-370 ↔

Pakistan 5% broken 340-350 ↔

Myanmar 5% broken 415-425 ↔

Cambodia 5% broken 425-435 ↔

U.S. 4% broken 460-470 ↔

Uruguay 5% broken 440-450 ↔

Argentina 5% broken 430-440 ↔


12

Long grain white rice - low quality

Thailand 25% broken 345-355 ↔

Vietnam 25% broken 335-345 ↔

Pakistan 25% broken 305-315 ↓

Cambodia 25% broken 405-415 ↔

India 25% broken 325-335 ↔

U.S. 15% broken (sacked) 440-450 ↔

Long grain parboiled rice

Thailand parboiled 100% stxd 365-375 ↓

Pakistan parboiled 5% broken stxd NQ ↔

India parboiled 5% broken stxd 350-360 ↔

U.S. parboiled 4% broken 480-490 ↔

Brazil parboiled 5% broken 520-530 ↔

Uruguay parboiled 5% broken NQ ↔

Long grain fragrant rice

Thailand Hommali 92% 680-690 ↔

Vietnam Jasmine 410-420 ↓

India basmati 2% broken NQ ↔

Pakistan basmati 2% broken NQ ↔

Cambodia Phka Mails 750-760 ↔

Brokens

Thailand A1 Super 325-335 ↔

Vietnam 100% broken 320-330 ↔

Pakistan 100% broken stxd 285-295 ↓

Cambodia A1 Super 345-355 ↔

India 100% broken stxd 260-270 ↔

Egypt medium grain brokens NQ ↔

U.S. pet food 280-290 ↔

Brazil half grain NQ ↔

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

Exclusive News have been shared with written permission of ORYZA.com with thanks

Documents

19th february ,2016 daily exclusive oryza rice e newsletter by riceplus magazine