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Daily Global Rice E-Newsletter by Riceplus Magazine

Rice E-Newsletter
March 04 , 2015
V o l u m e 5, Issue I

Port gives rice exporters a cut in storage costs


Wed, 4 March 2015
Charles Rollet

In a bid to ramp up rice exports to 1 million tonnes in 2015, the Phnom Penh Autonomous Port
announced yesterday that rice stored in its warehouses would not be charge any fees for up to 18
days.The move comes after 2014s rice exports stacked up to 387,061 tonnes, according to the
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Agriculture Ministry, with Prime Minister Hun Sen admitting in December that the million-tonne
goal was unlikely.Song Saran, chief executive of Amru rice, said the ports move was a good
sign for rice exporters.
I think it will help push our exports, especially to China, he said, adding that storing rice at the
port currently costs about $1 to $2 per tonne for every two weeks.However, Saran said he
believed the 1 million tonne goal was still improbable due to high logistical and storage costs
outside Cambodia. Its one of the factors we cannot reach.

APEDA News

Market Watch
Commodity-wise, Market-wise Daily Price on 03-03-2015
Domestic Prices

Unit Price : Rs/Qtl

Product

Market Center

Variety

Min Price

Max Price

Rice
1

Cachar (Assam)

Fine

3000

3600

Chala (Kerala)

Other

2600

2625

Deogarh (Orissa)

Other

2000

3000

Amreli (Gujarat)

Other

1425

1650

Gumla (Jharkhand)

Other

2200

2700

Aklera(Rajasthan)

Other

1310

1430

Aroor (Kerala)

Other

5800

6000

Karanjia(Orissa)

Other

4000

4500

Haldwani(Uttrakhand)

Other

2800

5000

Aroor (Kerala)

Other

2200

2400

Banki (Orissa)

Other

1200

1500

Ateli(Haryana)

Other

1050

1150

Wheat

Apple

Brinjal

Source: agmarknet

for more products

Egg

Rs per 100 No.


Price on 03-03-2015

Product

Market Center

Price

Pune

285

Nagapur

267

Namakkal

255

Source: e2necc.com

International Benchmark Price

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Price on: 03-03-2015

Product

Benchmark Indicators Name

Price

Apricots
1

Turkish No. 2 whole pitted, CIF UK (USD/t)

6125

Turkish No. 4 whole pitted, CIF UK (USD/t)

4875

Turkish size 8, CIF UK (USD/t)

3625

Greek provincial, CIF UK (USD/t)

1552

Greek Vostizza, CIF UK (USD/t)

1666

DCE Corn Futures (USD/t)

363

NYSE Liffe Corn Futures (USD/t)

166

ITOCOM Corn Futures (USD/t)

199

Currants

Corn/Maize

Source:agra-net

for more products

Other International Prices

Unit Price : US$ / package


Price on 03-03-2015

Product

Market Center

Origin

Variety

Low

Onions Dry

High
Package: 50 lb sacks

Atlanta

Baltimore

Chicago

Mexico

Yellow

14

14.50

New York

Yellow

13

13

Nevada

Yellow

10.50

Cucumbers

Package: cartons film wrapped

Atlanta

Mexico

Long Seedless

12

12.50

Baltimore

Canada

Long Seedless

10

11

Miami

Honduras

Long Seedless

10

Grapes

Package: 18 lb containers bagged


1

Atlanta

Baltimore

Peru

Red Globe

28

30.50

Traders To Blame For Spike in Rice Prices, Says Official


By I MADE SENTANA and DEDEN SUDRAJAT
A farmer pulls an old fishing net over a rice field to protect it from birds in Cilacap, Central Java,
on March 2.Darren Whiteside/Reuters

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JAKARTA, IndonesiaMarkups by traders not a supply
shortage were the primary cause of a recent spike in rice prices in
Indonesia, a government official has said, downplaying the
widespread effect of the increase.Sasmito Hadi Wibowo, a
deputy at Indonesias national statistics agency, said farmers
across the country sold their crops to middlemen as the harvest
season began in February for 2.1% less on average than in
January, at 4,922 rupiah ($0.38 cents) per kilogram.
The middlemen then sold the rice on to mills at 0.33% higher than in January, he added. The
mills raised their prices by 1% before selling the unhusked rice on to wholesalers, who charged
retailers 3% more per kilogram of rice than they had in January.The costs of moving through all
those hands was passed onto consumers, said Mr. Wibowo. In total, some consumers ended up
paying as much as 7% more for rice than in January, he said.Mr. Wibowo refuted media reports
that the price of rice rose 30% across the country, saying that such a spike happened only at a
few market places and it only affected the price of certain types of rice.
The highest increase was recorded in Jakarta,
where the average increase was 7%, said Mr.
Wibowo.The price spike raised alarm among
consumers in a country of 250 million people where
rice is considered a staple crop. As a local saying
goes, if you havent eaten rice, you havent had a
meal.This handout photo, taken and released on Feb.
25 by the presidential palace, shows Indonesian
President Joko Widodo (2nd R) speaking to State
Enterprise Minister Rini Soemarno (3rd R) and other officials during a visit to the Bureau of
Logistics (Bulog) warehouse.
President Joko Widodo has made achieving self-sufficiency in rice and several other key staples
one of the priorities of his administration. Following the increase last month, he ordered the
national logistics agency, known as Bulog, to release its 1.4 million ton of rice stocks to calm
prices.
Mr. Wibowo praised the governments decision not to import rice in response to the rice
inflation, since it was not due to a supply shortage, he said. Importation would only hurt the
farmers, he added.In recent years domestic rice production has increased growing from 31
million tons to 41 million tons between 2004 and 2014. But Indonesians are among the largest
consumers of rice in the world, eating an average of 130 kilograms of rice per person per year.In
order to meet demand from a growing population, the government has had to make up a supply
shortfall with imports almost every year since the early 1960s.

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http://blogs.wsj.com/indonesiarealtime/2015/03/03/traders-to-blame-for-spike-in-rice-pricessaysofficial/?KEYWORDS=agriculture&utm_source=USA+Rice+Daily%2C+March+4%2C+2015&
utm_campaign=Friday%2C+December+13%2C+2013&utm_medium=email

CME Group/Closing Rough Rice Futures


CME Group (Prelim): Closing Rough Rice Futures for March 3

Month

Price

Net Change

March 2015

$10.360

- $0.175

May 2015

$10.625

- $0.170

July 2015

$10.875

- $0.170

September 2015

$11.035

- $0.105

November 2015

$11.245

- $0.060

January 2016

$11.380

- $0.055

March 2016

$11.380

- $0.055

Gov't to hold 'Thai rice: Thainess' fair


BY LARRY BANKS ON 2015-03-04THAILAND
Govt to hold Thai rice: Thainess fair tomorrow
BANGKOK, 4 March 2015 (NNT) Thai government will begin the Thai rice: Thainess
rice fair tomorrow in accordance with the Prime Ministers policy to promote good quality
rice from Thai farmers, to increase product value and to support the farmers.Officials are
now working to prepare the area along the Phadung Krung Kasem canal in Bangkok, which is
the designated location that will host the Thai rice: Thainess fair, starting tomorrow
onwards.Food vendor booths, central stage, rice sprouts display, the exhibition on the Royal
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Familys contribution on rice development in Thailand, and the exhibition on rice technology are
the highlights at the event.
Activities in this event will include cultural performances, demonstrations of rice-related
traditions and farmers livelihood from the four regions of Thailand, as well as a workshop on
cooking rice. Cheap rice retailing will also be available at the fair.The event was initiated by the
Prime Minister Prayut Chan-o-cha to serve as a platform for good quality rice farmers from
communities to be able to promote their products in Bangkok. This fair will be a good
opportunity to create a direct connection between farmers and consumers, as well as increasing
the rice value which will help encourage farmers income and livelihood.
NNT 2015-03-04
http://news.thaivisa.com/thailand/govt-to-hold-thai-rice-thainess-fair/35092/

36,000 rice farmers in central Thailand are taking


alternative employments due to drought
BY LARRY BANKS ON 2015-03-04THAILAND

MOAC: 36,000 rice farmers in central region are taking alternative employments due to drought

BANGKOK, 4 Mar 2015 (NNT) According to the Ministry of Agriculture and


Cooperatives, about 36-thousand rice farmers in the central region are taking substitution
jobs offered by the government to compensate revenue loss as they are unable to do offseason farming due to widespread drought. Permanent Secretary of the Ministry Chawalit
Chukajon said that these farmers are residing in 26 provinces along the Chao Phraya and Mae
Klong Rivers which have been denied from irrigation water due to the severe drought.He also
claimed that state projects that are hiring farmers affected by the harsh weather condition are
now 50% completed.
Mr. Chawalit expected the projects to be concluded by the end of this month. These projects
involve canal dredging and water source development.As for the project to give a fund of 1
million baht to each of the 3,051 drought affected villages in 58 provinces, Mr. Chawalit
estimated that the funding would start to be poured into each Tambon in the second week of this
month.Meanwhile, Minister of Agriculture and Cooperatives Petipong Pheungbun Na Ayutthaya,
said royal rainmaking will soon be conducted in the North to help control smog and wildfires in
the region.

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The air contamination level in the area has already exceeded the standard mark by 120
microgram per cubic meter as measured on February 28th. Mr. Petipong claimed the majority of
the smog came from Myanmar.

Thailand Ready To Help Namibia In Rice Production


WINDHOEK, March 4 (BERNAMA-NNN-NAMPA) -- Rice exporters from Thailand have
stated their readiness to assist Namibia in identifying the right technology in the production of
rice."We are one of the biggest exporters of rice and we would like to help Namibia plant and
produce its own rice. If need be, we can also export rice to Namibia," the kingdom's ambassador
to Namibia, Voradet Viravakin, told Nampa.

Speaking after an audience with President Hifikepunye Pohamba at State House here Monday, at
the head of Thai business delegation, most of them rice exporters, he said Thailand had all the
technologies and expertise needed in planting and growing rice."We have helped Ghana to grow
its own rice and today that country is producing rice even for export," he said.Pohamba urged
Namibian and Thai businesses to co-operate in the field of trade."We want Thailand to teach us
how to grow rice. Namibians know how to eat rice but do not know how to produce rice,"
quipped Pohamba.
He said the land was available, but there was no expertise. Namibia is already producing rice at
the Kalimbeza project in the Zambezi Region, where three varieties of rice -- Supa, Irga and
Angola -- are being grown.The project covers a total area of 222 hectares, of which some
hectares are still under production. It was declared a national project by Pohamba in 2009,
indicating its potential to boost food security and assist with poverty reduction.
-- BERNAMA-NNN-NAMPA

Rice imports rise to four-year high


Sohel Parvez

Rice imports hit a four-year high as traders find foreign produce, mainly from India,
cheaper.Private traders imported 8.73 lakh tonnes of rice between July 1 and March 2, the
highest since fiscal 2010-11, according to food ministry data. The government did not import any
rice in the same period.It is because of the price difference between the Indian and Bangladeshi
rice. Indian produce is cheaper than ours," said Chitta Majumder, owner of Majumder Traders

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that has imported more than 80,000 tonnes
since July.Traders and millers said imports
soared in the current fiscal year due to a
zero-duty facility for rice import and higher
production of medium quality rice in India.
Majumder said a medium-quality rice variety
named Swarna, which is also grown locally,
is being imported in bulk due to low prices in India.His import cost for one kilogram of Swarna
stood between Tk 24.5 and Tk 25.20 yesterday -- lower than the wholesale price of local Swarna
at Tk 27, Majumder said.He, however, said increased imports have put millers in a tight spot as
the demand for locally grown coarse and medium quality rice has come down."Due to the slack
demand for local Swarna, I am making profits from imports, but at the same time, incurring
losses for my milled rice," he said.All the imports made so far this fiscal year were by the private
sector.
However, imports soared though the latest harvests of aman, aus and boro rice were
good.Bangladesh produced 3.44 crore tonnes of rice in fiscal 2013-14, up from 3.38 crore tonnes
a year ago, according to Bangladesh Bureau of Statistics.Production is higher than the domestic
food grain requirement of nearly three crore tonnes, according to an estimate by Bangladesh
Institute of Development Studies.Banking on the increased output, the government also shipped
25,000 tonnes of rice to Sri Lanka early this fiscal year.
Leaders of Bangladesh Auto, Major and Husking Mills Association, which has around 17,000
members, said they are demanding the government discourage imports to protect local millers
and farmers."The demand for locally grown fine rice remains good. But the demand for coarse
and medium quality rice has fallen and it can rise if the government imposes duty on imports,"
he said.In December last year, a parliamentary panel advised the food ministry to take steps to
discourage imports.Contacted by phone, Food Minister Md Qamrul Islam said the imported
amount is not so high compared to domestic production. He also said imposing duty on rice
imports is the jurisdiction of the commerce ministry.
Published: 12:00 am Thursday, March 05, 2015
Last modified: 1:01 am Thursday, March 05, 2015
TAGS: India cheaper Rice imports Chitta Majumder Majumder Traders

http://www.thedailystar.net/rice-imports-rise-to-four-year-high-67772

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Expo Pakistan 2015' opens new avenues for rice export: REAP
chief
March 04, 2015,RECORDER REPORT

Expo Pakistan 2015' has opened new avenues for the rice export as buyers of several countries
were gathered under a roof, said Rafique Suleman Chairman Rice Exporters Association of Pakistan
(REAP). Addressing a reception in honour of foreign delegations of Kenya, Indonesia, Malaysia and
Kuwait, he expressed hearted congratulations to S M Munir, Chief Executive and Rabiya Javeri,
Secretary Trade Development Authority of Pakistan (TDAP) for organising successful event of Expo
Pakistan 2015 at Expo Centre Karachi.

Although Pakistani rice was already popular in the world market, however that exhibition had
provided another platform to explore new markets, he said. "Expo Pakistan 2015 provided good
opportunity to introduce Pakistani rice to foreign delegates and we will get very positive results
of this event," he added. Chairman REAP said rice had not been included in the Preferential
Trade Agreement (PTA) between Pakistan and Indonesia, which was a big hurdle in increasing
exports to Indonesia, hoping that after inclusion of Pakistani rice in PTA bilateral trade among
two countries could be enhanced.
Talking about the trade with Kenya, he said rice and tea were two major commodities being
traded between Kenya and Pakistan. He urged TDAP to continue those types of efforts to
increase the country's exports. Senior Vice President, FPCCI, Abdul Rahim Janoo said Pakistan
enjoyed very friendly relationship with GCC countries and Pakistan was importing huge quantity
of oil products. He said for first time a huge number of foreign delegations attended Expo
Pakistan which showed the confidence of foreign investors on government and its policies. Local
business community was also satisfied with the steps taken by government towards the
improvement of trade and business in Pakistan, he added.
On the occasion, High Commissioner of Pakistan to Kenya Rafiuzzaman Siddiqi, Consul
General of Indonesia in Karachi Hadi Santoso, Honarary Consul of Kenya in Karachi Hanif
Janoo, Senior Vice President, FPCCI Abdul Rahim Janoo, Commercial Secretary of Pakistan
Embassy in Indonesia Maria Kazi, Commercial Secretary of Pakistan in Malaysia Wajihullah
Kundi and others were also present.
The Business Recorder

Thailand won 200,000-tonne G2G rice sale deal with the Philippines
BY LARRY BANKS ON 2015-03-04THAILAND

BANGKOK, 4 March 2015 (NNT) Thailand won a government-to-government rice bidding


contest to sell 200,000 tones of rice to the Philippines, one of the biggest rice buyers in the
world, Commerce Minister Gen Chatchai Sarikulya revealed.The Philippines called the auction
to buy a total of 500,000 tonnes of new rice, with Thailand winning to deliver 200,000 tonnes
and Vietnam to deal with the rest.

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Half of the Thai rice to be delivered will be 15% broken white rice, and the other half will be
25% broken white rice.Gen Chatchai said the rice deal would benefit Thailands rice production
cycle as Manila has set the delivery date in March and April, allowing Thailand to release a great
amount of rice in a short period. This is expected to help accelerate the release of new rice which
is to come out in late-March.
http://news.thaivisa.com/thailand/thailand-won-200000-tonne-g2g-rice-sale-deal-with-thephilippines/34894/

CCC Announces Prevailing World Market Prices


WASHINGTON, DC -- The Department of Agriculture's Commodity Credit Corporation today announced the
following prevailing world market prices of milled and rough rice, adjusted for U.S. milling yields and location, and
the resulting marketing loan-gain (MLG) and loan deficiency payment (LDP) rates applicable to the 2014 crop,
which became effective today at 7:00 a.m., Eastern Time (ET). Rough rice prices are decreased $0.08 per cwt for
long grain and medium/short grain.
MLG/LDP
Rate

World Price
Milled Value
($/cwt)

Rough
($/cwt)

Rough ($/cwt)

Long-Grain

15.48

10.03

0.00

Medium-/Short-Grain

15.10

10.17

0.00

Brokens

9.34

----

----

This week's prevailing world market prices and MLG/LDP rates are based on the following U.S. milling yields and
the corresponding loan rates:
U.S. Milling Yields
Whole/Broken
(lbs/cwt)

Loan Rate
($/cwt)

Long-Grain

57.21/12.55

6.64

Medium-/Short-Grain

61.89/8.83

6.51

The next program announcement is scheduled for March 11.

CME Group/Closing Rough Rice Futures


CME Group (Prelim): Closing Rough Rice Futures for March 4

Month

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Price

Page
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Net Change

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March 2015

$10.465

+ $0.105

May 2015

$10.725

+ $0.100

July 2015

$10.975

+ $0.100

September 2015

$11.145

+ $0.110

November 2015

$11.305

+ $0.060

January 2016

$11.435

+ $0.055

March 2016

$11.435

+ $0.055

Dry Winter Weather Worries Rice Farmers


Lesley McClurg
Tuesday, March 3, 2015 | Sacramento, CA | Permalink
Farm on Pleasant Grove Road, Pleasant Grove CA.
Brian Baer / California Rice Commission
California rice farmers are worried that if doesn't rain or snow soon
they will have to fallow fields again this year. The rice crop was
down nearly 25% in 2014. But, it's not just the drought that's
hurting growers. Market competition from states like Louisiana and
Arkansas is also increasing. Ryan Schohr is a sixth generation rice
farmer in Butte County. Last year he fallowed more than half of his
fields because of the drought. He worries about this year and
next. "The drought is certainly really impacting the decisions we
make with the level of employees, the amount of equipment we'll be utilizing to help prepare the
soil to plant our crops. All those things are very dynamic at this point," says Schohr.
The drought is only one dark market force. Tim Johnson is the president of the California Rice
Commission. He says rice grown in Arkansas and Louisiana is penetrating the market and
driving the price down. He stresses that the quality of southern rice is lower, but some markets
are willing to sacrifice on flavor to save money."The world knows that the quality of the rice
grown in California is very very high. But, for especially countries that import rice sometimes
price is the predominating factor."Johnson cites Turkey, Taiwan and Micronesia as examples of
countries who are buying southern rice instead of calrose.
http://www.capradio.org/43701?utm_source=USA+Rice+Daily%2C+March+4%2C+2015&utm
_campaign=Friday%2C+December+13%2C+2013&utm_medium=email
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Consumers: Health Foods like Rice are Worth Every Penny


ARLINGTON, VA -- A recent
Global Health and Wellness Survey conducted by Nielsen
showcased the willingness of younger consumers to put their
money where their mouth is -- literally. Nielsen, a top global
information and measurement company that provides insight into
current consumer trends, found consumers are making a conscious effort to incorporate natural
foods into their diets in lieu of processed, artificial ingredients.
Fred Zaunbrecher (l) and
Byron
Holmes
know
promotion
opportunities
when they see them

This is good news for the rice industry, as U.S.-grown rice is sodiumand cholesterol-free, contains no trans fats or saturated fats, is glutenfree, and the least allergenic of all grains. These health features are
what consumers are seeking out and are happy to pay for. "The
outreach we do with registered dietitians is precisely designed to
capitalize on thesetypes of findings," said Fred Zaunbrecher, a
Louisiana rice farmer and chairman of the USA Rice Federation's
Domestic Promotion Committee. "We put a lot of effort into
positioning rice as the answer for this influential audience, and this
survey shows we got the questions right - the questions people are asking dietitians - namely, 'I
have health concerns, whatshould I be eating?'"
The obesity epidemic has worsened over the last few decades, with nearly half of global
respondents to Nielsen's Global Health and Wellness Survey reporting that they consider
themselves overweight. In spite of this statistic, or perhaps because of it, consumers are
becoming motivated to embrace foods, like rice, that promote good health and combat
disease. The "clean eating" craze has resonated with consumers and they are willing to pay top
dollar for these important health attributes.
The Global Health and Wellness Survey also revealed that consumers are looking for practical
foods that fulfill their nutritional needs. According to the study, more than 30 percent of
participants want foods that are high in protein, contain whole grains, or are fortified with
vitamins or minerals. U.S.-grown rice easily meets these criteria as it is nutrient dense and
contributes more than 15 vitamins and minerals including folate, iron, and zinc.
"There is a tremendous opportunity for food manufacturers and retailers to lead a healthy
movement by providing the products and services that consumers want and need," said Susan
Dunn, executive vice president, Global Professional Services, Nielsen. "While diet fads come
and go over time, innovative, back-to-basics foods that taste good, are easy to prepare, and
provide healthful benefits will have staying power."The U.S. rice industry agrees. "Healthy rice
bowls are fast, easy, delicious, and budget-friendly, and we think here to stay," said Zaunbrecher.
"You start with U.S.-grown rice and add other nutritious foods such as vegetables, poultry, lean
beef, seafood, and beans. It's a win-win situation."
Contact: Colleen Klemczewski (703) 236-1446

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