16th June, 2014 Daily Global Rice E-Newsletter by Riceplus Magazine

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TOP Contents - Tailored for YOU
Latest News Headlines
Filipino minister accused of taking bribes in rice-contract deal with Vietnam
Price spike? Blame Aquino's rice policy, not smugglers--PIDS
Rice price hike not temporary as govt claims, says farmers group
Bulog prepares medium-quality rice for market operations
NFA says rice imports to arrive on schedule
Vietnam rice firm denies paying bribes to win Philippines rice contract
Palace predicts stable rice price in next 60 days
1,800 rice warehouses to be checked
Maritime spat to aid rice exporters
Rice gains steam on fresh bulk buying
Nagpur Foodgrain Prices Open- June 16
The crisis in Iraq: What you need to know
Gates Foundation funds production of 'smart rice' variety
Ghana: Farmer Applauds Govt for Banning Rice Importation
Ground Broken on West Sacramento Rice Facility
Birds, Rice, Crawfish, and Water: USA Rice Working with Experts to Strike a Balance
Heckle and Jeckle
Crop Progress: 2014 Crop 99 Percent Emerged
CME Group/Closing Rough Rice Futures
News Detail


Filipino minister accused of taking bribes in rice-contract deal with
Vietnam

VietNamNet Bridge The Philippines Minister of Agriculture Proceso Alcala has been accused of taking bribes
from the Southern Food Corporation (Vinafood 2) in exchange for the grant of a rice contract with the
Vietnamese rice exporter.

The Inquirer, a daily newspaper with a highest number of
readers, has quoted a source from the Metro Manila Vendors
Association (MMVA) as saying that Alcala and the former
director of NFA (National Food Authorities), Orlan Calayag,
was involved in the contract with Vinafood 2 to provide
800,000 tons of rice to the Philippines.As the rice export
agreement was signed a few weeks before Calayag left office,
MMVA believes that officials took full advantage of their last
days in office to arrange a contract to pocket big money.

According MMVA, the agreed shipping fee was $54 per ton, which is $30 per ton higher than the market price.
As such, the individuals could pocket up to $24 million for the 800,000 tons of rice imports.The time when the
contract was signed was also suspicious, in April, the peak harvesting season.MMVA has lodged a petition
about the matter to the Filipino inspection agency.VnExpress, a Vietnamese online newspaper, has quoted
Huynh The Nang, Vinafood 2s General Director as saying that Vinafood 2 is not involved in accusing the
Filipino officials.This is a Filipino internal affair which needs to be settled by the country. We will not give
any explanations related to the matter, Nang said.Nguyen Ngoc Nam, Deputy General Director of Vinafood 2,
has denied involvement in the accusation.

He said in Thoi bao Kinh te Saigon that the Philippines invited rice exporters from all over the world to an open
international bid. The winners were those who could offer products at the lowest reasonable prices.The
accusations may be a part of their internal disputes, Nam said. I can affirm that Vinafood 2 did not do this.In
April 2014, Vietnamese rice exporters won a bid to provide 800,000 tons of rice to the Philippines by offering a
low bid of $439 per ton CIF, which was $30 per ton lower than that offered by Cambodia and $35 per ton lower
than the Thai bid of $474 per ton.The representatives of the Vietnamese Ministries of Foreign Affairs,
Agriculture and Rural Development said they had not received any official information about the accusation.

However, they said Vietnamese agencies were willing to cooperate with the Filipino agencies in their
investigation.Vinafood 2 has been involved in a similar situation before. In 2001-2003, Indonesian newspapers
reported that Vinafood 2 gave the Indonesian Bureau of Logistics $1.5 million in return for the right to sell rice
to the country.However, Vinafood 2 then denied the accusation. In fact, the rice trade agreements between


Vietnam and Indonesia were signed at government levels in 2001. Vinafood 2 was the corporation the
government appointed to implement the rice export contracts.
Compiled K. Chi
Tags:rice-contract deal,rice export,philippines,
Price spike? Blame Aquino's rice policy, not smugglers--PIDS
By: Likha Cuevas-Miel, InterAksyon.com
June 16, 2014 1:49 PM
MANILA - Traders, rice cartels and smugglers
are easily the best people to blame for the
spiking rice prices but a research fellow at the
Philippine Institute for Development Studies
(PIDS) says the Aquino administration's rice
self-sufficiency program and import policy may
be the culprit for these recent price
increases.Economist Roehlano Briones in an
interview told InterAksyon.com that the recent
tightness in rice supply is a "carryover" of the
government's past policy."I don't think there is
sufficient stocks and we will fail to meet
production target this year," he said.Price
increases of P1-P2 a kilo is a "very historical
trend" and this year would be no different given
that the country will experience El Nino and harvest season has yet to commence."It's kind of odd to increase
our imports now when the government has failed to get its shipment target [from Vietnam]. It's a matter of
policy, [Philippine] government not being able to follow through. We have to probe into that since there seems
to be an implementation problem," said Briones, who was one of the panel of experts invited by Senate last year
during a rice price inquiry.

2013 rice supply
According to a policy study by Briones and Ivory Myka R. Galang, there was inadequate supply of the staple
starting mid-2013 because of government policy of reducing rice imports in line with its rice self-sufficienct
program."Such reduction was neither compensated for by a commensurate increase in domestic production nor
by a timely release from the buffer stock," the researchers said.In September last year, rice prices have gone up
by P1-P2 per kilo in public markets amid tight supply in warehouses. The Department of Agriculture, told
Senate during a budget hearing that smugglers, who were spreading rumors of rice shortage, were to blame for
the spike in prices. Senate then said DA could only assure rice supply but not the prices as this is dictated by
market forces as 95 percent of the stocks are in the hands of private sector."It is easy to blame rice traders and
smugglers for price manipulation, but it is another thing to produce evidence for this accusation. Price


manipulation would entail restriction of supply from all sources, including from outside the country, which is
not exactly consistent with the problem of rampant smuggling in the imagination of the public," Briones and
Galang said.
No price collusion
A rapid appraisal of the competition in
Philippine rice marketing done by Beulah dela
Pena and other PIDS studies showed that there
is "strong competition" at all levels of rice
supply chain. One study even stated that there is
no evidence to prove that there is indeed cartel
and this was consistent with data that showed
margins are small at two percent at most at
wholesale and five percent at retail."Even if
collusion exists, the ability of traders to
influence the market price is negligible," dela
Pena, a research fellow at PIDS, said. Briones
and Galang, on the other hand, suggested that
the more logical explanation in the changes in
the supply of rice is the sharp drop in imports.
Figures showed that the imports fell by 638,000
tons in 2013, in line with DA's Food Staples Sufficiency Programs where the Philippine government aims to be
100-percent rice self-sufficient by the end of last year.

"However, production targets were set at unreasonably high levels to achieve self-sufficiency by 2013.
The palay production target for 2013 was 20 million tons of paddy from a target of 18.5 million tons in 2012.
Since 2012, however, actual palay production fell far short of the target," the researchers said.

Local short supply, global oversupply
Although palay production hit 18.03 million tons, the balance of 439,000 tons, or an equivalent of 287,000 tons
of milled rice was not enough to counter the effects in the drop in imports, the study showed.Briones and
Galang noted that the farm gate prices in the second semester last year increased as farmers may have
anticipated the price of paddy rice would increase given the reduction in imports. Because of this, they hiked
production, which could explain the improvement in harvest during the fourth quarter last year.
"The farmers made a profit from their correct forecast. These trends were advantageous for the farmers but
clrearly not for the consumers who took the brunt of higher rice prices. With less imports, the country missed
taking advantage of the cheap rice available in the world market," the PIDS research fellows said.
Indeed, Dr. Sam Mohanty of the International Rice Research Institute (IRRI) last year said that globalrice prices
have been spiraling downward last year due to the excess production in major exporting countries like Thailand
and India. This year, he said, the global rice market would be able to handle moderate drought caused by the El


Nino phenomenon given the high rice stocks in Thailand, which is still reeling from its internal political
turmoil.

"The recent failure of Thailand to win the Philippine tender for 800,000 tons of rice is a good example of the
extent of competition in the rice market right now. Vietnams state-owned agencies Vinafood 1 and 2 were
awarded the contracts because of lower price quotations. Thailand is unlikely to obtain any relief in the
nearterm as the supply situation in both India and Vietnam is very good," Mohanty said.
Tariffication

Briones told InterAksyon.com that even if the world rice market would likely stable--despite the expected
drought in the country and in other rice-exporting nations--the Philippine government is still in a tight bind and
would not be able to take advantage of the lackluster prices."Rather than raising or dropping imports, ngayon pa
lang you slap tariffs on our shipments and leave the private sector to do its importation. The private sector is not
slow, they can bring in imports quickly and prices would go down," he said, adding that this is a well-known
feature of the international rice market.

By tariffication and letting the prices be dictated by market forces instead of the artificial pricing influenced by
government policy--or in this case, the National Food Authority--the Philippines can take easily stabilize its
local rice market.Tariffs instead of rice quotas, which the Philippines is still fighting for, would make imports
much cheaper than the locally produced rice. This, however, would hurt the local farmers, whom the DA has
been protecting all these years. For now, however, the Aquino administration has to contend with high prices
and very tight supply until it solves the problem with Vietnam and its dwindling rice stocks in both government
private sector warehouses. Filipinos may have to just grin and bear it.
Rice price hike not temporary as govt claims, says farmers group
By Delfin T. Mallari Jr.
Inquirer Southern Luzon
10:01 pm | Monday, June 16th, 2014
A man walks past at the commercial rice in front of a warehouse in Dagupan Street, Tutuban in Manila on
Sunday. Commercial rice prices are expected to go up by P1 to P2 per kilo during the lean months beginning
this June according to National Food Authority (NFA) said. NINO JESUS ORBETA/INQUIRER

LUCENA CITY, Quezon, PhilippinesThe militant farmers group
Kilusang Magbubukid ng Pilipinas (KMP) on Monday criticized the
National Food Administration (NFA) for allowing the P2 rise in the
per kilo price of rice, raising fear the increase would not be
temporary as claimed by the government.KMP chair Rafael Mariano,
in a statement, said the NFA should stop fooling the people as prices


never returned to their pre-price hike levels after successive increases in July and September 2013.Local rice
consumers also hit the government for allowing the two-peso price hike.What happened to the rice self-
sufficiency program of the government? Lydia Damasoa, a retired school teacher, asked the Philippine Daily
Inquirer at the city market here.

She said the P2 hike was unacceptable and unjust. Mariano blamed the rice cartels alleged manipulation for
the increase, accusing President Aquino of being the biggest protector of rice cartels for his failure to control
the prices of the primary food of Filipinos.The KMP leader dared Presidential Assistant on Food Security and
Agricultural Modernization Francis Kiko Pangilinan to rollback rice prices, dismantle the rice cartels and
push for the reversal of the governments agricultural trade liberalization policy.Mariano found as highly
questionable the Bureau of Agricultural Statistics statement that the countrys rice inventory was sufficient for
73 days.

Rice cartels are aware that rice in government bodegas (warehouses) are not enough and that the big bulk of
the stock inventory includes those already in the local market and households, he said.On Sunday, Malacaang
assured the public that the increase in rice prices would be temporary.The Department of Agriculture and the
NFA attributed the P2-increase to market forces or the movement of supply and demand, Communications
Secretary Herminio Coloma Jr. said.

Coloma said once the harvest and planting season starts, the supply of rice would increase and push down
prices.Last year, Agriculture Secretary Proceso Alcala repeatedly claimed that the country would be able to
produce 20 million metric tons of rice and that the country would meet its target of rice self-sufficiency.

Bulog prepares medium-quality rice for market operations
The Jakarta Post, Jakarta | Business | Sat, June 14 2014, 1:09 PM
Yes, we have enough: Coordinating Economic Minister Chairul Tanjung (center), Trade Minister Muhammad Lutfi (left) and Agriculture Minister
Suswono (right) conduct a surprise inspection at the Cipinang Wholesale Market in East Jakarta on Friday. The inspection was intended to monitor
food supplies and food prices in the lead-up to Ramadhan. The State Logistics Agency (Bulog) is anticipating a spike in food prices ahead of
Ramadhan by readying supplies of medium-quality rice so that people will still be able to afford to buy the staple. (Antara/Muhammad Adimaja)
Business News
The State Logistics Agency (Bulog) says it is ready to supply
medium-quality rice to markets through market operations to keep
prices in check ahead of and during the fasting month and Idul
Fitri. Bulog head Sutarto Alimoeso said on Friday that its buffer
stock of around 321,000 tons of medium-quality rice would be
sufficient to meet the demand that usually picked up during the
season every year.In the worst conditions Ive experienced, the
demand was 200,000 tons at maximum. So, I am quite sure the


[buffer] stock is sufficient, he said, adding that Bulog had spent around 42,000 tons in buffer stock to date.

He also said Bulog would start market operations when rice prices increased by 10 percent within a week.Sutarto
was part of a government entourage, including Coordinating Economic Minister Chairul Tanjung, Trade Minister
Muhammad Lutfi, Agriculture Minister Suswono and State-Owned Enterprises Minister Dahlan Iskan, visiting the
Cipinang Wholesale Market, which supplies Greater Jakarta, in East Jakarta and a Bulog Jakarta warehouse in North
Jakarta.Bulog intervenes in the market by selling key food commodities, like rice, sugar and beef, which it procures
from domestic and foreign suppliers to help stabilize prices by selling the commodities below the market price.
Bulog now has total supplies of 1.9 million tons of rice at 600 warehouses in Indonesia, according to
Sutarto.According to a seller at Cipinang Market, the current price of medium quality rice IR-64 III at the market
was Rp 7,600 (64 US cents) per kilogram (kg), around Rp 200 higher than the normal price of Rp 7,400 per kg,
because of the lack of supply. The price of premium quality rice, however, was stable, thanks to its sufficient stock,
said the seller.Chairul said the government would take the necessary actions to help stabilize rice prices that kept
fluctuating every day.
Traders at the market asked for additional supplies of medium quality rice because they had enough premium rice
stock, Chairul said at a press conference at the Trade Ministry.Ive asked Bulog to supply [the market] within the
next one to two days.Chairul said rice stocks at Cipinang Market now stood at 20,000 tons, which were enough to
cover seven to 10 days of transactions.Meanwhile, Bulogs Jakarta warehouse, he said, had around 76,000 tons of
rice and it was enough to support

NFA says rice imports to arrive on schedule

Category: Agri-Commodities
13 Jun 2014
Written by Alladin S. Diega / Correspondent
THE 800,000-metric ton (MT) rice imports intended as the countrys buffer stock for this year will arrive on
schedule, the National Food Authority (NFA) said on Friday.The announcement was a reaction to media
reports and opinion columns creating malicious insinuations about alleged unscrupulous activities between the
cargo handler and agriculture and NFA officials that may delay or hamper the delivery of the rice import from
Vietnam, the agency said in its statement.NFA Spokesman Rex C. Estoperez denied claims the appointed
handler [cargo] is delaying the arrival of the rice from Vietnam, and that the handler is asking for a higher price.
Reports allege the fee for cargo handling was padded by as much as $30 per MT.Estoperez clarified that the
importation procedure has followed the provisions of Republic Act 9148, or the Government Procurement
Act.He added that the volume of rice to be imported were decided by an interagency committee and went
through a series of approval process.The unexpected demand for rice relief after a series of major calamities,


including Supertyphoon Yolanda (international codename Haiyan) that hit the country in 2013 was the primary
reason for the decision to import, according to Estoperez.He explained that the decision to import and its
guidelines were made in close coordination and cooperation with the Departments of Budget and Management,
Finance (DOF) and Trade and Industry.
The pre-bidding and actual bidding itself were witnessed by representatives from all bidders, as well as from the
embassies of Thailand, Vietnam and Cambodia, various government agencies such as the DOF, the Bangko
Sentral ng Pilipinas, Senate and House of Representatives, the Commission on Audit, farmers and farmer
organizations, civil society and the media, Estoperez added.The proceedings were even videotaped for
reference purposes.The agency spokesman said that one of the suppliers, Vietnam Northern Food Corp. I and
Vietnam Southern Food Corp. II (Vinafood) have not made any complaint about the cargo handlers, the fees,
or the contracts, which had already been executed between them.Estoperez explained that the NFA already
addressed Vinafoods concern on these issues when the latter asked for his agencys help.Last years handling
contract with the same supplier was for $32 per MT, which was actually decreased into $30 per MT for this
year, making the padding issue baseless, Estoperez said.
He also reported that as of June 9 of this year, more than half of the target rice imports, or 459,400 MT, were
already either delivered at the designated NFA warehouse or have arrived at the assigned local port, in transit or
currently loading.The agency expects the remaining balance of 340,600 MT would be fully delivered to NFA
warehouses on or before the end of August.Meanwhile, the total rice stock inventory for the month of May
stood at 2.52 million metric tons (MMT), which is 15.5 percent higher than last months inventory of 2.18
MMT, the Bureau of Agricultural Statistics (BAS) reported recently. The inventory, however, is below the
record in May 2013, with 2.61 MMT. Compared with the April rice stock levels in the households and in
commercial warehouses, the May level has increased by 11.6 percent and 53 percent, respectively, the BAS
said.However, the BAS noted that stocks in the NFA depositories, with 88.1-percent imported rice, decreased
by 10.1 percent.
An attached bureau of the Philippine Statistics Authority, the BAS said that year on year, stocks in the
households grew by 10.3 percent.It noted that stocks in commercial warehouses and in NFA depositories
dropped by 9.1 percent and 23.8 percent, respectively.Of the present stock level, 52.6 percent were with the
households, 28.9 percent in commercial warehouses and 18.5 percent in NFA depositories, according to the
BAS.The BAS added that total rice inventory for the month of May would be adequate for 74 days while stocks
in the households would be sufficient for 39 days.Rice stocks in commercial warehouses are enough for 21 days
while those with NFA depositories, for 14 days, according to the BAS
Vietnam rice firm denies paying bribes to win Philippines rice
contract
Monday, June 16, 2014 18:20


An executive at the state-owned Vinafood 2 has denied
allegations that the company bribed a Philippine official to
secure a contract for 700,000 tons of rice, news website Thoi
Bao Kinh Te Saigon (Saigon Times) reported.Nguyen Ngoc
Nam, vice director-general of Vinafood 2, made the denial
following reports published by www.oryza.com, an international
journal on rice science, on June 12.The website cited local
sources as saying that the Philippines Agriculture Secretary
allegedly struck a "midnight deal" with Vinafood 2 in April to secure a contract to supply 700,000 tons of 15-
percent broken white rice between May and August of this year.

Based on a complaint from the Metro Manila Vendor's Association (MMVA), the Office of the Ombudsman
questioned the Agriculture Secretary over his alleged involvement in the Vietnam rice import deal.The MMVA
alleged that the Agriculture Secretary and the former National Food Authority (NFA) Chief facilitated "a deal
that would pay them handsomely in illegal kickbacks".Nam said the Philippines had invited rice exporters from
all over the world to an open international bid.
Suppliers were supposed to be selected based entirely on the lowest price offered.On April 15, two state-owned
Vietnamese companies Vinafood 1 and 2 won deals to supply a total of 800,000 tons of rice to the
Philippines (Southeast Asia's biggest importer of the grain) for over three years, after submitting the lowest
prices.Vinafood 2 submitted offers ranging from $436.50 to $441.25 per ton and won contracts to supply
700,000 tons of rice, the NFA said.Vinafood 1 offered to sell $436 per ton to ship a total of 100,000 tons of the
staple grain.Meanwhile, Cambodian companies offered a price of $469 and Thai companies offered $474 per
ton.
According to the Vietnam Food Association, Vietnam had exported more than 2.6 million tons of rice, fetching
over $1.118 billion, by June 12.
Image:A farmer ties up a sack of rice in Dong Thap Province. Photo credit: Thoi Bao Kinh Te Saigon
Thanh Nien News
Palace predicts stable rice price in next 60 days

Category: Economy
16 Jun 2014


Written by Butch Fernandez
MALACAANG assured griping consumers on Monday that the price of rice, considered a basic staple in most
Filipino households, will stabilize soon.Communications Secretary
Herminio B. Coloma Jr. projected that fluctuating rice prices,
which recently increased by P2 more per kilo, will be stable in the
next two months but stopped short of anticipating a rollback.At a
Palace briefing on Monday, Coloma reported that the National
Food Authority (NFA) is closely monitoring rice trading in the
markets.The NFA is watching the recent rice price adjustments
and according to them this was brought about by market forces,
he said, noting that its also due to low season in rice supply.But
he added they expect rice prices in the markets to stabilize when
large shipments of imported rice start arriving within the next 60
days.

The Palace official issued the assurance amid mounting complaints from consumers after retail prices of well-
milled rice, for instance, rose to P42.19 per kilo and milled rice to P38.93 per kilo.Coloma added the
Department of Agriculture, as well as the Department of Trade, are also closely monitoring price movements of
garlic and ginger in public markets.There are suggested retail prices for these products and we will not allow
overpricing or unreasonable price increases, he said, even as the price of garlic reportedly rose to as much as
P300 per kilo recently. Because we are talking here of prime commodities, the government is constantly
monitoring the situation to ensure that consumers interests are protected.

In Photo: A rice-stall operator is busy beefing up his rice stocks at a Paraaque City market amid a reported
spike in the retail price of rice by as much as P2 per kilo. Government authorities attributed the price hike on the
account of lean harvest, notwithstanding the recent importation of rice by the National Food Authority. (Nonie
Reyes)

1,800 rice warehouses to be checked

Petchanet Pratruangkrai

The Nation June 14, 2014 1:00 am

Team to check on size, quality of stock to allay rumours of 2.9m tonnes missing.The military government set up
a 100-strong taskforce yesterday to inspect more than 1,800 warehouses nationwide to ensure transparency
about the size and quality of the state rice stock.Interior Ministry deputy permanent secretary Panadda Diskul,
who is acting PM's Office permanent secretary, announced the setting up of the taskforce after chairing a
meeting of the subcommittee overseeing inspections.The inspection team will consist of representatives from


the PM's Office, the Army, police, Interior, Commerce and Agricul-ture ministries, and the National Anti-
Corruption Commission (NACC).

The move comes in the wake of uncertainty over government stockpile levels after two years of the
controversial rice-pledging project by the ousted Yingluck Shinawatra government. The Finance Ministry's
auditing committee has reported that about 2.9 million tonnes of rice is missing, creating a huge loss for the
country. But the Commerce Ministry insists no rice is missing and that there had been a misunderstanding
during the delivery of rice from mills to warehouses. The Commerce Ministry said there was about 13 million
tonnes of rice stockpiled, with 4 million tonnes awaiting shipment to private rice traders under government-to-
government contracts. There is a rumour that some rice stocks have deteriorated in quality so the junta
government needs to manage stockpiles efficiently.The taskforce is scheduled to start its work this month, with
no advance information to be given to local officers. To ensure efficiency in the investigation, the PM's Office
and the Commerce Ministry will train the taskforce members.

Panadda said the government was confident of obtaining a more accurate stockpile figure because many
agencies had joined the investigation to ensure transparency.The Commerce Ministry has ordered the
suspension of government-to-government rice shipments during the investigation.Panadda said the investigation
report would be submitted to the committee on rice policy chaired by the National Council for Peace and Order
(NCPO) chief General Prayuth Chan-ocha. If there are signs of corruption, the wrongdoers need to face legal
action, she said. Prayuth said yesterday that the NCPO would not continue with the controversial rice-pledging
scheme, and whether it is continued in the future remains to be seen.

For now, he said, the NCPO would focus on helping farmers cut costs and increase production. Separately, NACC
member Prasart Pongsivapai said the commission had not yet considered the request filed by Yingluck's lawyer asking the
NACC to investigate another eight witnesses from her side in the case of negligence related to the rice-pledging scheme
that she is facing. He said he was not sure if the request would be on the NACC meeting agenda next week.
Maritime spat to aid rice exporters
By Zaw Htike | Sunday, 15 June 2014
Growing tensions in the South China Sea in recent months is leading China to shun Vietnam for its rice
imports, opening the door for Myanmar exporters, according to traders.
A worker crouches at Myanmar Nyunt rice mill in Pyapon township, Ayeyarwady Region. Photo: Aye Zaw
Myo
Much of Myanmars official exports currently go to African countries, but
with Thai exporters dropping prices in those markets since the May 22 coup,
Myanmar exporters are looking to grow market share closer to home.Chinas
demand for Myanmar rice through the Muse border crossing has increased
about 30 percent this year on previous levels, said U Myo Thura Aye, a rice


trader and former joint secretary of the Myanmar Rice Federation.I think this trend will continue for some
time, he said.China represents the largest export opportunity for Myanmars rice traders, a June 11 World
Bank report titled Myanmar: Capitalising on Rice Export Opportunities said.The rice trade with China is legal
from Myanmars point of view, but generally unofficial from Chinas standpoint.For Myanmar to be able to sell
rice directly to importers in southeast China in addition to exporting informally over the border, it needs to
negotiate a sanitary and phyto-sanitary agreement (SPS) with Beijing, the report said.China imported 41.75
percent of Vietnams total rice exports in the first four months of 2014, according to a May 6 report from
Xinhua news agency, but Myanmar rice traders said they have seen an increase in orders from China as South
China Sea tensions rise and the worlds second-largest economy shuns importing from its adversary
Vietnam.Myanmar ought to move quickly to reach an agreement allowing official rice exports to China, said U
Chit Khaing, chair of the Myanmar Rice Federation (MRF).The MRF urges the Ministry of Agriculture and
Irrigation to discuss with Chinese officials to make the market legal but we need to be able to produce
quality rice at a standard accepted by the Chinese government, he said.Some experts say access to the Chinese
market is quite complicated, and not just a matter of national agreements.Ministry of Commerce economics
advisor U Maung Aung said the ministry has been in discussions with China to legalise rice exports, but the
process is complicated by different Chinese provinces having their own standards, rules and regulations.
U Myo Thura Aye said Myanmar exporters are now selling about 3500 tonnes a
day, whereas it had been about 2500 tonnes a day before the recent South China
Sea spat.As Chinas demand has increased, rice prices have also gone up. But
transportation costs are rising too, so it is difficult to make a profit from it, he
said.Standard 25pc broken rice is fetching $443 to $449 a tonne at the border,
while higher quality 5pc broken is selling for $490 to $497 a tonne.U Thauk
Kyar, central executive member of the Muse Rice Traders Association, said that
the recent increase in volumes and prices is likely to stay for the time being, as
he sees sustained interest from four or five southern China provinces.Myanmar
was once one of the worlds largest rice exporters, but has been hampered by
poor production and trade links in recent years, focusing generally on low-
quality exports. Thailand, the US, India, Vietnam and Pakistan make up the
worlds largest exporters.Myanmar exported 1.6 million tonnes of rice in the
2012-13 fiscal year, more than it has accomplished in 46 years, according to
insiders. Myanmar has big ambitions to increase its exports to 4 million tonnes
by 2019-20, but is currently limited by production capacity.U Myo Thura Aye
said that if Chinese buyers were to increase its demand to 5000 tonnes a day,
Myanmar would not be able to meet it with current capacity.Myanmar is not in
a position to export much more rice because it cannot produce much more, he
said.Still, experts say that though there may be a temporary reduction in China
purchasing Vietnamese rice because of political problems, it is unlikely to
translate into a permanent situation.World Bank economist Sergiy Zorya said that Vietnam is a competitive
exporter and China is a price-sensitive market, so the Chinese government will think pragmatically in this
regard.


OUR CORRESPONDENT
KARNAL, JUNE 16:
The rice market witnessed a mixed trend with Pusa-1121 and DB rice varieties improving by 100-250 a
quintal on Monday, while all other aromatic and non-basmati varieties ruled firm at their previous levels.Amit
Chandna, proprietor of Hanuman Rice Trading Company, told Business Line that fresh buying by bulk buyers
mainly pushed Pusa-1121 and DB varieties back in to positive territory. Bulk buyers have taken good advantage
by buying at those levels, he said.
Trade may continue to witness a range-bound trend, said trade sources. It is unlikely to see any major alteration
in coming days and market may continue to rule around current levels with marginal alteration following low
market sentiments, said market sources.
In the physical market, Pusa-1121 (steam) improved by 250 to 8,850 a quintal, while Pusa-1121 (sela)
quoted at 7,100, up 100.
Pure Basmati (raw) quoted at 12,000. Duplicate basmati (steam) went up by 200 to 7,000. Pusa-1121
(second wand) was at 6,700, Tibar at 5,800, while Dubar at 5,000 a quintal.
In the non-basmati section, Sharbati (steam) sold at 4,300, while Sharbati (sela) quoted at 4,000. Permal
(raw) sold at 2,100, Permal (sela) at 2,300, PR-11 (sela) sold at 2,400 while PR-11 (raw) at 2,500. PR14
(steam) sold at 2,600 a quintal.
(This article was published on June 16, 2014)
Nagpur Foodgrain Prices Open- June 16
Mon Jun 16, 2014 3:27pm IST
Nagpur, June 16 (Reuters) - Gram prices in Nagpur Agriculture Produce and
Marketing Committee (APMC) reported higher on good demand from local millers amid restricted supply from producing
regions. Healthy rise on NCDEX, upward trend in Madhya Pradesh gram prices and reports about delay in monsoon
arrival in Vidarbha also helped to push up prices, according to sources.

* * * *

FOODGRAINS & PULSES
GRAM
* Gram varieties showed weak tendency in open market here on poor demand from
local traders amid profit-taking selling by stockists at higher level.


TUAR
* Tuar varieties quoted down in open market on lack of demand from local traders amid
healthy supply from millers.

* Moong varieties sharp downfall in open market on poor buying support from local
traders amid good supply from producing belts.

* In Akola, Tuar - 3,800-4,100, Tuar dal - 5,700-6,000, Udid at 6,500-6,800,
Udid Mogar (clean) - 7,600-8,100, Moong - 7,200-7,600, Moong Mogar
(clean) 8,600-9,300, Gram - 2,000-2,200, Gram Super best bold - 3,000-3,300
for 100 kg.

* Wheat, rice and other commodities remained steady in open market
in thin trading activity, according to sources.

Nagpur foodgrains APMC auction/open-market prices in rupees for 100 kg

FOODGRAINS Available prices Previous close
Gram Auction 2,050-2,500 2,130-2,500
Gram Pink Auction n.a. 2,100-2,600
Tuar Auction n.a. 3,700-4,170
Moong Auction n.a. 4,600-5,000
Udid Auction n.a. 4,300-4,500
Masoor Auction n.a. 2,600-2,800
Gram Super Best Bold 3,500-3,600 3,700-3,800
Gram Super Best n.a.
Gram Medium Best 3,100-3,300 3,300-3,500
Gram Dal Medium n.a. n.a.
Gram Mill Quality 2,800-2,900 3,000-3,100
Desi gram Raw 2,500-2,800 2,500-2,800
Gram Filter new 2,900-3,100 2,900-3,100
Gram Kabuli 8,200-10,200 8,200-10,200
Gram Pink 7,300-7,900 7,300-7,900
Tuar Fataka Best 6,100-6,400 6,300-6,600
Tuar Fataka Medium 5,900-6,100 6,100-6,300
Tuar Dal Best Phod 5,500-5,700 5,600-5,800
Tuar Dal Medium phod 5,100-5,400 5,200-5,500
Tuar Gavarani 4,100-4,200 4,300-4,400
Tuar Karnataka 4,000-4,100 4,150-4,250
Tuar Black 7,400-7,700 7,600-7,900
Masoor dal best 6,000-6,200 6,000-6,200
Masoor dal medium 5,800-6,000 5,800-6,000
Masoor n.a. n.a.
Moong Mogar bold 8,900-9,600 9,100-9,800
Moong Mogar Medium best 8,300-8,700 8,600-9,000


Moong dal super best 7,600-8,000 7,900-8,400
Moong dal Chilka 7,700-8,300 8,000-8,500
Moong Mill quality n.a. n.a.
Moong Chamki best 7,800-9,000 7,800-9,000
Udid Mogar Super best (100 INR/KG) 8,200-8,500 8,200-8,500
Udid Mogar Medium (100 INR/KG) 6,800-7,600 6,800-7,600
Udid Dal Black (100 INR/KG) 5,700-6,000 5,700-6,000
Batri dal (100 INR/KG) 3,800-4,800 3,800-4,800
Lakhodi dal (100 INR/kg) 2,900-3,000 2,900-3,000
Watana Dal (100 INR/KG) 3,350-3,450 3,350-3,450
Watana White (100 INR/KG) 3,700-3,800 3,700-3,800
Watana Green Best (100 INR/KG) 5,000-5,400 5,000-5,400
Wheat 308 (100 INR/KG) 1,200-1,500 1,200-1,500
Wheat Mill quality(100 INR/KG) 1,450-1,550 1,450-1,550
Wheat Filter (100 INR/KG) 1,200-1,400 1,200-1,400
Wheat Lokwan best (100 INR/KG) 1,900-2,200 1,900-2,200
Wheat Lokwan medium (100 INR/KG) 1,600-1,800 1,600-1,800
Lokwan Hath Binar (100 INR/KG) n.a. n.a.
MP Sharbati Best (100 INR/KG) 2,500-3,200 2,500-3,200
MP Sharbati Medium (100 INR/KG) 2,000-2,400 2,000-2,400
Wheat 147 (100 INR/KG) 1,100-1,300 1,100-1,300
Wheat Best (100 INR/KG) 1,500-1,800 1,500-1,800
Rice BPT (100 INR/KG) 2,800-3,200 2,800-3,200
Rice Parmal (100 INR/KG) 1,600-1,800 1,600-1,800
Rice Swarna old (100 INR/KG) 2,600-2,800 2,600-2,800
Rice HMT (100 INR/KG) 3,600-3,800 3,600-3,800
Rice HMT Shriram (100 INR/KG) 4,100-4,900 4,100-4,900
Rice Basmati best (100 INR/KG) 10,400-13,900 10,400-13,900
Rice Basmati Medium (100 INR/KG) 7,300-10,000 7,300-10,500
Rice Chinnor (100 INR/KG) 4,500-5,200 4,800-5,500
Jowar Gavarani (100 INR/KG) 1,300-1,500 1,300-1,500
Jowar CH-5 (100 INR/KG) 1,600-1,700 1,600-1,700

WEATHER (NAGPUR)
Maximum temp. 38.7 degree Celsius (101.6 degree Fahrenheit), minimum temp.
27.1 degree Celsius (80.7 degree Fahrenheit)
Humidity: Highest - n.a., lowest - n.a.
Rainfall : 0.1 mm
FORECAST: Partly cloudy sky. Rains or thunder-showers likely towards evening or night. Maximum and Minimum
temperature likely to be around 41 and 27 degree Celsius respectively.
Note: n.a.--not available
(For oils, transport costs are excluded from plant delivery prices, but included in market prices.)
KARNAL, JUNE 16:


The rice market witnessed a mixed trend with Pusa-1121 and DB rice varieties improving by 100-250 a
quintal on Monday, while all other aromatic and non-basmati varieties ruled firm at their previous levels.
Amit Chandna, proprietor of Hanuman Rice Trading Company, told Business Line that fresh buying by bulk
buyers mainly pushed Pusa-1121 and DB varieties back in to positive territory. Bulk buyers have taken good
advantage by buying at those levels, he said.Trade may continue to witness a range-bound trend, said trade
sources. It is unlikely to see any major alteration in coming days and market may continue to rule around
current levels with marginal alteration following low market sentiments, said market sources.
In the physical market, Pusa-1121 (steam) improved by 250 to 8,850 a quintal, while Pusa-1121 (sela)
quoted at 7,100, up 100.
Pure Basmati (raw) quoted at 12,000. Duplicate basmati (steam) went up by 200 to 7,000. Pusa-1121
(second wand) was at 6,700, Tibar at 5,800, while Dubar at 5,000 a quintal.
In the non-basmati section, Sharbati (steam) sold at 4,300, while Sharbati (sela) quoted at 4,000. Permal
(raw) sold at 2,100, Permal (sela) at 2,300, PR-11 (sela) sold at 2,400 while PR-11 (raw) at 2,500. PR14
(steam) sold at 2,600 a quintal.
(This article was published on June 16, 2014)
The crisis in Iraq: What you need to know
J un. 16, 2014

With deaths in the hundreds and no foreseeable end to the violence caused by the Islamic State of Iraq and the
Levant (ISIL), here are the answers to the important questions on the state of Iraq.
Who are the ISIL?
The Islamic State of Iraq and the Levant (ISIL) ?? also called Islamic State of Iraq and Syria (ISIS) ?? began
as an offshoot of al-Qaeda and its Syrian counterpart Juhbat al-Nursa. ISIL left al-Qaeda following
disagreements over Syria and is often called "too extreme" for its parent group.
What has happened so far?


ISIL has been successful in capturing much of the northern Iraqi territory over the past week. Monday, forces
seized Tal Afar, a potential key in connecting the Islamic states of Iraq and Syria, as it continues to move
toward the capital of Baghdad. Tal Afar joins Mosul, the country's second-largest city, Tikrit, Saddam Hussein's
hometown, and a number of other prominent cities under ISIL control.Pictures released by ISIL show the
execution of Iraqi soldiers and massacred civilians. There are no confirmed death tolls at this time, although it is
likely in the hundreds.
How did the conflict begin?
Iraqi Prime Minister Nouri al-Maliki, a Shiite, took power in 2006 and largely left out many Sunnis from
ascending in the political ranks, leaving religious strife as the centerpiece of this disagreement. In the past, al-
Maliki has also been criticized for his alleged "spoils system" approach in promoting his political allies to posts
in the military. Many cite his regime and rapid promotion process as the chief reason behind an under-prepared
Iraqi military after President Obama's withdrawal of all American troops in 2011.
What is Iraq's response?
The Iraqi military has made attempts to keep ISIL at bay but has failed to reclaim the cities ISIL been taken.
Recently, al-Maliki gave an impassioned speech calling for Iraqi citizens to fight to reclaim "every inch" of the
captured land.
How is the United States involved?
On Monday President Obama ordered 275 U.S. military servicemembers
to deploy to Iraq to provide support and security for U.S. personnel and
the U.S. Embassy in Baghdad. Obama also said the troops are equipped
for combat and will remain in Iraq until the security situation becomes
such that they are no longer needed. Last week, Obama ruled out ground
troops in Iraq. But Secretary of State John Kerry, in a recent Yahoo!
News interview, announced that the administration is pursuing every
possible option, including working with Iran to reach an end to this conflict.
Some officials are evacuating the U.S. Embassy in Baghdad, while the State Department has issued a warning
for all Americans traveling to Iraq. U.S. naval forces moved into the Persian Gulf on Saturday.Defense


Secretary Chuck Hagel ordered the USS George H. W. Bush aircraft carrier, accompanied by a missile cruiser
and destroyer into the Gulf, as military options are still being weighed.Follow USA TODAY for updates as the
story continues to develop.
Contributing: Jim Michaels, USA TODAY
Image: Demonstrators al-Qaeda flags in front of the government headquarters in Mosul. / AP

Gates Foundation funds production of 'smart rice' variety
Monday, 16 June 2014 12:46
STRASA was initiated seven years ago and the first two phases was funded with US$20 million. (Image source: Christopher Lance/Flickr)

The Bill and Melinda Gates Foundation is providing funds worth US$32.7mn for the production of the
third phase of International Rice Research Institute (IRRI)'s stress tolerant rice for Africa and South
Asia (STRASA) over a period of five years

IRRI has been developing various varieties of 'smart rice' over
the last few years, which have been accessed by 10mn
farmers, mainly in Africa and South Asia. According to the
Philippines-based organisation, majority of the 10mn are
among the world's poorest and most disadvantaged.STRASA
was initiated seven years ago, and the first two phases were
funded with about US$20mn. In mid-May 2014, over 250
participants from South Asia and Africa held STRASAs
inception and planning meeting in New Delhi, India, where
agriculture secretaries from India, Bangladesh and Nepal
joining the opening session.
Among the climate-smart rice varieties developed by IRRI is Swarna-Sub1- a flood tolerant variety bred from a
popular Indian variety, Swarna. Climate-smart rice varieties are made to especially thrive in environments
affected by flooding, drought, cold temperatures, and soils that are too salty or contain too much iron that leads
to iron toxicity.Partners of the project responsible for each of its major objectivesdrought, submergence,
salinity or sodicity, and seed multiplication and disseminationwill report on their respective progress in the
first two phases and plan for the third.
Abdelbagi Ismail, IRRI scientist and STRASA project leader, said, Under the past phases of the project, 16
climate-smart rice varieties tolerant of flood, drought, and salinity were released in various countries in South


Asia; about 14 such varieties were released in sub-Saharan Africa. Several more are in the process of being
released."In addition to improving varieties and distributing seeds, the STRASA project also trains farmers and
scientists in producing good-quality seeds. Through the projects capacity-building component, 74,000
farmersincluding 19,400 women farmersunderwent training in seed production.The project has also
influenced regional policies through enhanced cross-border sharing of information. This has helped facilitate the
faster release of climate-smart varieties and the broader sharing of seeds in Asia and sub-Saharan Africa,
especially among poor farmers who are most affected by climate change.

An estimated 140,000 tonnes of seed of such varieties were produced between 2011 and 2013. These seed
releases are estimated to have reached over ten million farmers, covering over 2.5 million hectares of rice land.
said Ismail. This is double the initial target of 5 million farmers reached.IRRI collaborates with more than 550
partners in getting climate-smart rice varieties to farmers in South Asia and Africa. These partners include
national agricultural research and extension programs, government agencies, non-government organizations,
and private sector actors, including seed producers.
Mwangi Mumero

Ghana: Farmer Applauds Govt for Banning Rice Importation

16 JUNE 2014
Alhaji Suhiyini Ziblim, a Ghanaian rice farmer and seller on Sunday said government's ban on rice importation
through the borders of the Ivory Coast has given a boost to local rice production in the country.He said: "Since
October last year when the ban was imposed on the importation of rice from la Cote d'Ivoire, local rice
production and sales has risen about 40 percent, a situation that is encouraging to local rice farmers to yield
dividends for their year-long toil."Alhaji Ziblim who was speaking in an interview with the Ghana News
Agency in Accra, said the ban on the importation had also curbed the perennial smuggling of the commodity
into the country as some people took advantage of the practice to smuggle large tons thereby selling it cheaper
to stifle the initiative of local farmers.
In October last year, government through the Ministry of Trade and Industry banned the inland importation of
rice through the West African borders, especially through the Ivory Coast, because the rice from those countries
was comparatively cheaper thereby rendering the local rice farmers redundant.As a result, the consumption of
local rice had risen about 40 percent according to the farmers in the last seven months, an indication that such
figures could be doubled in years to come to give the farmers and local sellers the benefits of their hard
work.Alhaji Ziblim wondered why this ban was not imposed so many years back, adding "I am sure if these
measures were taken long time back, the local rice industry would have grown to feed all of us in this country
and to feed other external markets.


"He appealed to the Ministry of Trade and Industry to also impose such bans on other commodities in line with
government's policy to reduce the importation of rice, tomatoes, oil, onions and other commodities to give a
lifeline to farmers in the country to prove their worth."The ban I believe will also drastically check smuggling
as the government was denied millions of cedis as a result of smuggling and tax evasion," Alhaji Ziblim
added.He, however, called on colleague farmers and Millers to ensure good processing practices and good
packaging that would sustain the appetite of consumers to increase their demand for local rice and other
commodities. GNA
Ground Broken on West Sacramento Rice Facility

A project that will bring a few hundred jobs to West Sacramento is officially under
way. The Shinmei Company of Kobe, Japan, broke ground this morning for a $10 million
factory to make rice buns.Shinmei will manufacture gluten-free rice buns with local
products and is seeking certification for organic, kosher and halal.The factory is expected to
be 28,000-square-feet on 6 acres of land in the Southport Business Park. It's supposed to
open March of 2015 and approximately 150 construction jobs will be generated. The
factory itself is supposed employee well over 100 people.The facility is the first in the
United States for the company. West Sacramento was primarily chosen as the location because of its proximity
to rice fields.
Birds, Rice, Crawfish, and Water: USA Rice Working with Experts to Strike a
Balance Heckle and Jeckle
Cousins, maybe, but still a serious problem CROWLEY, LA - Blackbirds can have a major negative impact on
rice farms - following behind tractors seeding fields and eating the seeds. In some cases the loses are so great,
entire fields must be completely replanted. Against this backdrop, southern state rice researchers, staff from
Arkion Life Sciences, and the USA Rice Federation met in Louisiana at the LSU Ag Center last week to discuss
the blackbird issue.
Arkion, which produces the non-lethal rice seed treatment/protectant AV-1011 (Anthraquinone) attended and
gave a presentation on where in the process they were in obtaining a full registration label for the product and
what work still was needed to satisfy U.S. EPA data requirements."It's apparent from the meeting that the states
have a serious need for this seed treatment to be moved from a limited, annually applied-for Section 18 use to
full Section 3 label registration as quickly as possible," said Steve Hensley, USA Rice's senior director for
regulatory affairs who attended the meetings.USA Rice staff also met with LSU Ag Center staff on fungicides,
toured the facility, met with rice growers and Extension staff on irrigation systems and crawfish production, and
attended a grower dinner hosted by Louisiana Rice Mill.


Contact: Steve Hensley (703) 236-1445
Crop Progress: 2014 Crop 99 Percent Emerged
WASHINGTON, DC -- Ninety-nine percent of the nation's 2014 rice acreage has emerged, according to today's
U.S. Department of Agriculture's Crop Progress Report.
Rice Emerged, Selected States
Week Ending
State
June 15,
2013
June 8,
2014
June 16,
2014
2009-2013
average
Percent
Arkansas 98 98 100 98
California 94 75 95 82
Louisiana 100 99 99 100
Mississippi 98 91 96 99
Missouri 99 97 100 99
Texas 100 100 100 96
Six States 97 93 99 96


CME Group/Closing Rough Rice Futures
CME Group (Preliminary): Closing Rough Rice Futures for June 16

Month Price Net Change
July 2014 $14.665 + $0.155
September 2014 $14.150 - $0.020
November 2014 $14.345 - $0.005
January 2015 $14.490 - $0.005
March 2015 $14.650 UNCH
May 2015 $14.650 UNCH
July 2015 $14.410 + $0.100

For Advertising SPECS & RATES
Contact: Advertising Department
Mujahid Ali
mujahid.riceplus@gmail.com
+92 321 369 2874

16th June, 2014 Daily Global Rice E-Newsletter by Riceplus Magazine

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