1st August, 2014 Daily Global Rice E-Newsletter by Riceplus Magazine

Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.
com
News and R&D Section mujajhid.riceplus@gmail.com Cell # 92 321 369 2874

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August, 2014

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Latest News Headlines
Rice inspection is nearly completed
Indian rice revival to heal ravaged land
Sowing picks up as monsoon revives in July An area of 70.6
million hectares was sown under different crops till 1 Aug, up from
53.3 million hectares a week before Nikita Mehta
Kharif sowing gathers pace as monsoon deficit shrinks
Source: Iran Raises Import Duty on Indian Rice
FG, DANGOTE SIGN MOU ON $1BN RICE PROJECT
Rice Prices
Fortified U.S.-Grown Rice Included in Food Assistance
Programs
China talks over new rice deal

News Detail
Rice inspection is nearly completed
Friday, 01 August 2014 By NNT

Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com

31 July 2014 - The Prime Ministers Office stated
the inspection of rice stockpiles nationwide is nearly
completed. According to an online message of
Permanent Secretary of the Prime Ministers Office
M.L. Panadda Dissakul, the inspection process is
almost done and officials involved are compiling the
result to be forwarded to the Rice Policy Committee.
He stated the report would focus on the rice quality and the actual quantity of rice in
the warehouses.Meanwhile, the inspection team in Phichit has reported that they
found 47,000 tons of rice were missing from silos of KTB Agro Company in Bang
Moonnak District. The officials from the Public Warehouse Organization have
already filed a lawsuit against the company for breaching of contract.
Indian rice revival to heal ravaged land
India exported $3 billion worth of shrimp last year. The
nation's seafood industry is booming, but it's also
damaging the environment. Farmers in one community
are turning to an age-old practice to save their land.
At first glance, the town of Neendakara in the south
Indian state of Kerala looks like any other coastal
village. The single road leading into the hamlet is
surrounded by serene ponds. Coconut palms line the
water's edge and birds' calls fill the morning air. But
disguised behind this rustic charm is a harsh reality.Construction laborer Indira Ramanan points to a hut
covered in plastic sheets that are held in place with thick ropes. That used to be her house, but the family had to
move out when the brick walls started to crumble and the ceiling nearly collapsed."This house was completely
destroyed and now we're building a new one," she says, standing outside a partially complete two-room
building. "We can't finish the construction because there is no money."
Booming industry, crumbling lives


Most of the houses here have suffered the same fate. Ramanan's neighbor Saboo says you just have to taste the
powder from the crumbling plaster to find out what's behind the problem. The dust falling from the walls has an
unmistakable salty taste.

Prawn farming is now big business in the Indian state of Kerala
The source is right next door. Salty rectangular ponds extend as far as the eye
can see, each about half a meter deep and brimming with tiny shrimp
larvae.These ponds are part of Kerala's explosion in shrimp production over
the past decade. Local catch contributed to the more than $3 billion (2.2
billion euros) worth of shrimp that India exported last year.The seafood boom
has created millions of jobs and made some businessmen very rich. But it is
also causing widespread environmental damage - turning soil too salty for farming and contaminating
groundwater. Salt from the perennial ponds has permeated deep into the soil, and locals say it's now seeping
into buildings, damaging brickwork and wrecking homes.

Shrimp and rice side-by-side
Local residents think they may have a solution: reviving an ancient farming practice that was used over 50 years
ago. Back then, farmers would grow shrimp and rice on the same land - planting rice in the rainy season, and
converting the field into a shrimp pond for the rest of the year."It's a good model of an integrated farming
system, which has proved to be very paying here," said V. reekumaran, director of the government-run Vytilla
Rice Research Station nearby. The practice was called pokkali, named after a special variety of salt-tolerant
rice.To cultivate rice, the paddy needs to stay submerged in freshwater for two to three months after the planting
season. A portion of that rainwater percolates down into the soil, flushing out some of the salt and recharging
the water table.
There are also other benefits of growing rice, adds Sreekumaran. "It's actually a reservoir of good water that
replenishes the drinking water sources of the entire area," he said.

The rice solution?


However, hardly anyone plants rice these days because
it doesn't make nearly as much money as shrimp. Up
until the 1960s, there used to be 40,000 acres of
combined rice and shrimp fields. Now there are only
4,000 acres left, according to Sreekumaran.With sea
levels rising, saltwater intrusion is expected to increase
further in low-lying coastal areas. Farmers need to
adopt practices that can keep salinity in check, says
local activist Francis Kalathunkal, who's been lobbying
for government support to revive rice farming.After more than two years of campaigning by the local residents,
last the government year ordered shrimp businesses to plant rice in the rainy season. It was a big victory for
Kalathunkal, though it didn't last long.

Locals are hoping rice paddies will clean up their soil and water supply
Battle for rice
The farmers got about 30 tons of rice from the 120 acres that they planted - less than one fourth of the yield
from conventional rice fields 50 kilometers away. That only strengthened the opposition to rice."They could
preserve pokkali as part of history perhaps," shrimp businessman Nickson Edwin said as he inspected his ponds.
"But otherwise it doesn't make sense to grow rice here. It's just not profitable."The seafood industry has created
thousands of jobs here, and these businessmen are a wealthy and politically connected group. This year they
didn't hand over the fields to the rice farmers, despite protests from local residents.
'The soil is healing'
But Kalathunkal is not deterred. "If we consider the larger interests of society, will we only allow those entities
that produce profit to flourish and the rest has to flounder," he said."We will hold protests, go to the court, and
do everything we can to get action. This is the people's fight."Indira Ramanan from the village of Neendakara
says she is already seeing some benefits from rice that was planted in a field next to her house. Soil that was too
salty is gradually healing, she says."Nothing used to grow here for 25 years, but after just one year of growing
pokkali, tomatoes and flowers are taking root," Ramanan said, pointing to the small plants with white and
yellow flowers in her backyard."We won't agree to just shrimp farming anymore - it has to be both rice and
shrimp."


DW RECOMMEND
Sowing picks up as monsoon revives in July An area of 70.6 million hectares
was sown under different crops till 1 Aug, up from 53.3 million hectares a
week before Nikita Mehta

Cropwise, area sown under coarse cereals shows a decline of 26%, while the decline is 7% for rice, 15.5% for
pulses, 20.7% for oilseeds and 3.4% for cotton. Photo: Mint New Delhi: Indias July rain deficit narrowed to
10% of the long-term average for the month, marking a recovery from the driest June in five years, the India
Meteorological Department (IMD) said, as kharif crop sowing picked up in tandem. An area of 70.6 million
hectares was sown under different crops till 1 August, up from 53.3 million hectare a week before.
Sowing so far is 14% less than last years figurean area of 81.9 million hectares was sown by this time last
yearbut only marginally lower than the 73.4 million hectares sown in 2012. The June rain deficit was 43% of
the long-term average for the month. However, even though the monsoon rains gathered pace after mid-June,
over half the country has recorded deficient rainfall this season. After the poor rainfall in June, we were
anticipating poor sowing. Over the past few weeks many of the drier states received good rainfall, so there is
substantial improvement in sowing of kharif seeds across the country by end of July, said N. Chattopadhyay,
deputy director general, agricultural meteorology division, at IMD in Pune. The shrinking of the rainfall deficit
in July comes at a time when policymakers have been concerned about the impact of a below-average monsoon
on foodgrain production and inflation.
The June-September monsoon accounts for more than 70% of the annual
rainfall in India and irrigates crops grown on half the countrys farmlands.
Retail inflation, measured by the Consumer Price Index, slowed to a record in
June and Wholesale Price Index (WPI) decelerated to a four-month low the
same month, but there have been worries that sub-par rainfall could cause
prices to rise again and deter the central bank from lowering interest rates to
boost economic growth that slumped to sub-5% levels for two consecutive
years. Although the monsoon has shown signs of picking up, it does not necessarily mean a boost to agricultural
production, one economist warned. The overall amount of rainfall is not as important as when it comes and
how distributed it is, said Madan Sabnavis, chief economist at Care Ratings.
The delay in monsoon in certain parts of the country has already affected many crops. Agriculture ministry
data shows that area under cultivation of major crops like rice and pulses is much lower as compared to last
year. This shortfall will exert pressure on food inflation in the coming months. Cropwise, the area sown under


coarse cereals showed a decline of 26%, while the decline is 7% for rice, 15.5% for pulses, 20.7% for oilseeds
and 3.4% for cotton. The delayed and weak rainfall led experts at the agricultural division of IMD and the
Indian Agricultural Research Institute to advise farmers to grow short-duration crops and practise intercropping
rather than grow single crops. While these crops are not the high-yielding variety, they are the better option
right now, said Chattopadhyay.
Rainfall picked up from 11 July, he said, ahead of the 15 July benchmark for monsoon rainfall. Contingency
crops, medium duration crops and intercropping have led to improvement in sowing. Of course, there are
some areas in Rayalaseema, Karnataka and Rajasthan, where farmers could not sow due to very poor rainfall.
There the damage has been done, Chattopadhyay said, adding that sugarcane farms are doing well while cotton
farmers have been told to grow medium duration desi cotton rather than BT cotton.
Monsoon will be normal over most parts of the country for the next 10-15 days, according to the Indian Institute
of Tropical Meteorology. It said the rains will move toward central India in the first week of August but with
weaker amplitude. While central, east, northeast and north India have shown recovery this month with showers
shrinking the rainfall deficit, north-west India still has a 34% deficit. Even after the improvement, the monsoon
rainfall at the end of July was more deficientat 22% of the averagethan in the last five years. In 2009 and
2012, two of the driest years recently, the monsoon deficit at the end of July was 19% of the average. There
has been improvement in rainfall in July. We expect rainfall in August to be 96% of the long period average as
we had forecast before. Normal rainfall is expected in August, said Sivanand Pai, head of the long-range
forecasting division at IMD, Pune. Meanwhile, El Nio has shown signs of weakening, said the Australian
Bureau of Meteorology, which has scaled down its El Nio Alert to El Nio Watch due to a cooling of some
parts of the Pacific Ocean.
El Nio is an abnormal weather phenomenon caused by thof the Pacific Ocean temperatures, which can lead to
sub-par rainfall or even drought in Asia. The US National Oceanic and Atmospheric Administration (NOAA)
said that while subsurface temperatures increased from January to March, these have weakened since April,
implying that the El Nio is not likely to be strong. IMD said that there is now a 50% chance of El Nio
developing during the monsoon, but NOAA maintains that the chance of El Nio developing is about 70%
during the corresponding Northern Hemisphere summer. Sayantan Bera and Remya Nair contributed to this
story.
Image :Cropwise, area sown under coarse cereals shows a decline of 26%, while the decline is 7% for rice,
15.5% for pulses, 20.7% for oilseeds and 3.4% for cotton. Photo: Mint


Kharif sowing gathers pace as monsoon deficit shrinks
Acreage in cotton, soyabean improves
BANGALORE/NEW DELHI, AUGUST 1:
With the monsoon deficit shrinking to 22 per cent, kharif
sowing in all crops has picked up. This has helped to make
up the acreage in key crops such as cotton, soyabean and
rice. However, the overall kharif acreage is still lower than
during the corresponding period a year ago.The total acreage
under kharif crops is up 31 per cent to 700.6 lakh hectares
(lh) as on August 1 against last weeks 533.2 lh, according
to the Agriculture Ministry data.
Pace of sowing
The increase in pace of sowings has reduced the deficit in
cotton acreage to some 3.4 per cent from the previous
weeks 27.4 per cent.
For soyabean, the acreage deficit stands reduced to 18.8 per
cent (29.3 per cent) and for rice the shortfall stands at 6.9
per cent (12.8 per cent). However, the acreage deficit
remains high for pulses at 19 per cent (39.3 per cent) and
coarse cereals at 25.8 per cent (43.4 per cent).
The deficit in total seasonal rainfall has come down to 22 per cent for the first half of the four-month monsoon
season.
Normal precipitation
The weighted rainfall across the country stood at 353.2 mm during the June 1-July 31 period against the normal
452.4 mm. Precipitation has been normal in 17 of the 36 meteorological sub-divisions, with 19 of them
witnessing deficient rainfall.
Though farmers have largely caught up with acreages despite delayed monsoon, follow-up showers in the
remaining monsoon period holds the key for a good harvest, experts said. The yields will be good this year
only if it rains in September and October as cotton requires rains during the flowering and fruiting stages, said
KR Kranthi, Director at the Central Institute for Cotton Research in Nagpur. Cotton has been planted on about
104.84 lh so far, against last years 108.54 lh.
More cotton acreage
The cotton trade is expecting an increase of 5-10 per cent in acreages this year as oilseed growers are expected
to switch to the fibre crop on better returns last year.Planting of soyabean is almost complete. There could be
some late stage planting in parts of Maharashtra and Rajasthan. Overall, we expect the acreage to be lower by


around five per cent this year, said Rajesh Agarwal, spokesperson for the Soyabean Processors Association of
India.So far, soyabean has been planted on over 95.39 lh against 117.33 lh last year.
(This article was published on August 1, 2014)
Source: Iran Raises Import Duty on Indian Rice
August 01, 2014 - 17:27
TEHRAN (Tasnim) Iran has decided to impose higher tariffs on rice shipments imported from India, Indian
local sources announced.Based on reports, the duty on Irans rice imports from India, mainly of the basmati
variety, jumped from 22% to 40% in July.Tehrans decision has seemingly stirred unease among New Delhi
officials, who fear the move could have a great impact on Indias basmati rice exports.Iran is an important
destination for Indias rice and constitutes about 30% of the Asian countrys total basmati rice exports, Indian
sources say.
India is at the same time a big customer of Irans crude oil. In 2012, as Western
sanctions disrupted dollar payments to Iran, New Delhi started settling part of
its oil debt to Iran in rupees and Iran was using those to buy goods from India.
That trade in rupees gave India an edge over other rice suppliers such as
Pakistan and Brazil who do not have such huge debts with Tehran and quickly the
south Asian country established a near-monopoly in exports.Now following a rise
in import duty on Indias basmati rice, a senior official at the All India Rice
Exporters Association (AIREA) said he believed the move is part of Irans
attempts to gradually scale down imports and become self-sufficient in rice
production.But it would be a major blow to Indian basmati rice exports to Iran, he
added.

FG, DANGOTE SIGN MOU ON $1BN RICE PROJECT
AUGUST 1, 2014 BY OKECHUKWU NNODIM, ABUJA
Dangote Industries Limited on Friday announced a $1bn (N165bn) investment for commercial rice farming
and modern integrated rice mills to be run by the firm in Nigeria.The President and Chairman, Dangote Group,
Mr. Aliko Dangote, announced his firms investment plan at the headquarters of the Federal Ministry of
Agriculture and Rural Development in Abuja.Dangote, who led a delegation from his firm to the ministry, later
proceeded to the Presidential Villa for the signing of a Memorandum of Understanding with the Federal
Government.He told ministry officials and journalists that the move to invest in rice production was aimed at
developing Nigerias economy through agriculture.
He said the investment would further boosts the Federal Governments drive to attain food sufficiency in
Nigeria, adding that in the next fours years Nigeria will become an exporter of rice.Dangote said once his rice
industry starts producing the staple food, the price of the locally produced rice will be definitely cheaper than


the imported ones and this will create room for a lot of investments in the sector.He said, With rice as a major
staple, we have placed total sufficiency in rice production as a major priority for our country and key value
chain for our economy.Todays signing ceremony marks a revolutionary tipping point by the Dangote Group
to make Nigeria a net exporter of rice within the next few years as well as boosting inclusive wealth creation
and employment generation.
The Groups boss stated that his firm had acquired farmlands in Edo, Jigawa, Kebbi, Kwara and Niger states
totalling 150,000 hectares to be used for the commercial production of rice paddy.He noted that his industry
will establish two state of the art large scale rice mills each with a capacity to mill 120,000 metric tons of rice
paddy, bringing total capacity to 240.000MT, with plans to double the figure in two years.With this installed
capacity, the project will become the largest integrated rice mill in Africa, Dangote said.In his remarks, the
Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, stated that the Dangote farms and
mills were expected to significantly boost small-holder rice production in the regions through a nucleus and out-
grower farming model.
This, he said, would directly transform livelihoods in rural Nigeria as the sites selected were rice-growing
communities that will be supported by Dangotes provision of agro-inputs, training and marketing linkages to
improve community-farming.He said employment opportunities for at least 8,000 Nigerians will be created by
the massive investment.Akinwumi said, This investment by Dangote Industries is transformational for Nigeria
and the rest of Africa. Nigeria has no business importing rice. Our goal is to become self-sufficient in rice and
become a global powerhouse in food and agriculture markets.Through this billion dollar commitment, Aliko
Dangote, Africas leading businessman, has clearly attested to the policies and approach that the Federal
Government has undertaken to transform the nations agricultural sector.The minister assured the delegation
that the Federal Government would stop the smuggling of foreign rice into Nigeria from neighbouring
countries.According to him, his ministry would ensure that no individual sabotages the drive to make Nigeria an
exporter of rice.We will end smuggling because we cannot mortgage our future and I want to assure you that
government is looking at this issue critically, Adesina said.
Rice Prices
as on : 31-07-2014 08:10:24 PM
Arrivals in tonnes;prices in Rs/quintal in domestic market.

Arrivals Price

Current
%
change
Season
cumulative
Modal
Prev.
Modal
Prev.Yr
%change
Rice


Junagarh(Ori) 626.60 922.35 3381.86 2200 2200 4.76
Alipurduar(WB) 600.00 1.69 11489.80 3250 3250 10.17
Kalahandi(Dharamagarh)(Ori) 58.29 14.16 109.35 2100 2200 -
Khatra(WB) 39.00 5.41 5027.00 2500 2550 6.38
Jamshedpur(Jha) 25.00 NC 3609.00 2820 2830 0.71
Bampada(Ori) 20.00 NC 385.00 2400 2500 9.09
Sandila(UP) 9.00 -10 2111.70 2000 2000 4.17
Kalyanpur(Tri) 7.00 250 40.50 2500 2600 -
Lakhimpur(UP) 6.40 -5.88 478.40 2170 2120 11.28

Fortified U.S.-Grown Rice Included in Food Assistance Programs

WASHINGTON, DC -- Last month, the U.S. Department of Agriculture (USDA) published final commodity
requirements for milled rice intended for use in international food aid programs that included several recommendations
from the USA Rice Federation, such as rinse-resistant technologies or a "rice-premix" that are "sourced from U.S.
companies."
Food aid formulations and ways to enhance the nutritional value or
micronutrient availability of food aid products is a top priority for
USDA. USA Rice's Food Aid Subcommittee submitted comments
supporting the inclusion of rinse-resistant coated rice grains and all
nutritionally similar technologies that are readily available in the
domestic market. Several other rice industry companies and groups
also submitted comments. Nutritionally dense foods are vital for
recipients of food aid and thus a very important criterion for
donors. Fortified rice has been available in the U.S. for decades
and now with the USDA commodity requirements changes, it can
be included in international food assistance programs.


"Since October 2013, more than 75,000 MT of rice has been programmed in Title II, PL 480, Food for Education or Food
for Peace programs," said Jamie Warshaw, chairman of USA Rice's Food Aid Subcommittee. "USA Rice looks forward
to continuing to be able to provide a nutritious and desirable food product to consumers throughout the world."
Contact: Sarah Moran, (703) 236-1457
China talks over new rice deal
Other countries set to agree G-to-G contracts
Published: 31 Jul 2014 at 07.19 .Newspaper section: Business
Writer: Phusadee Arunmas & Wichit Chantanusornsiri
Thailand is in talks with China to sell 1 million tonnes of rice through a government-to-government (G-to-G)
deal and vows to secure more sales through similar contracts with buyers including Indonesia, the Philippines,
Malaysia and countries in Africa and the Middle East. Commerce permanent secretary Chutima
Bunyapraphasara said the Commerce Ministry is also poised to sell state rice stocks via a general auction in
early August.She said the new rice deal with China had nothing to do with a deal for 1 million tonnes agreed by
the previous government with the Chinese government.

Under the previous deal, Thailand has delivered only 100,000 tonnes, with 900,000 tonnes yet to follow.The
new deal with China will include all types of Thai rice that will be newly harvested, she said.With the new
harvest about to be supplied to the market, we are now closely working with the private sector to beef up state
rice sales and exports, said Ms Chutima.We have set a target of shipping 3-4 million tonnes of state rice
stocks and project the countrys overall rice exports will exceed 8 million tonnes this year including those
handled by exporters.However, Ms Chutima insists the governments rice sales will be handled over a suitable
period. She said rice sales would be delayed during a period of massive new supplies to curb any impact on
market prices.The military regime this month declared it would restart sales of state rice stocks in August,
vowing to move an average of 500,000 tonnes a month and dispose of the existing 18-million-tonne surplus
within three years.This will be done mainly through four channels: general auctions, G-to-G deals, direct sales
and the Agricultural Futures Exchange of Thailand.

The regime is also committed to revising sales conditions to make them flexible and based on the quality of
grain while avoiding selling state stocks on a whole-warehouse basis.In the event of a dispute or questions about
the quality of rice sold, buyers would be allowed to negotiate with authorities.The previous governments rice-
pledging scheme, which pledged prices at 40-50% above market prices, suffered many setbacks.The scheme is
estimated to have cost the country 500 billion baht, while many officials are suspected of being involved in
corruption. Former prime minister Yingluck Shinawatra already faces a criminal charge on abuse of authority
for her failure to stop the scheme despite heavy losses and corruption.The National Anti-Corruption
Commission charged her and sent the case to the Office of the Attorney-General to indict her in the Supreme
Courts Criminal Division for Holders of Political Positions.Meanwhile, finance permanent secretary Rungson
Sriworasat has suggested using 100,000 tonnes of rotten rice in state stockpiles as a raw material in the
production of ethanol.Mr Rungson, who is also a board member of PTT Plc, said he had already discussed the
idea with executives of the national oil and gas conglomerate, and they agreed it was viable.

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