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June 30 ,2015

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Liberia Extends Suspension of Tariffs on


Rice Imports to Rein in Price Hikes
Jun 29, 2015

The government of Liberia has issued Executive Order No. 70 extending Executive Order No.
61, which suspends tariffs on rice imports, according to a news release on the government
website.The order, issued by the President on June 28, states that: "the Government of Liberia in
its desire to continue bringing relief to the public, is extending Executive Order No. 61,
suspending the import tariff on rice as classified under tariff Nos. 1006.30.00 (in packing of
more than 5kg or in bulk); 1006.30.00 (in packing of at least 5kg); and 1006.40.00 (broken rice)
under the Revenue Code of Liberia Act 2000." The Executive Order is said to be implemented
with immediate effect.
The news release says the extension of the Executive Order No. 61 is based on the findings of a
government assessment and evaluation of the causes of increases in the prices of various
strategic commodities. The government has recognized the need to curb the continuous increases
in the price of rice and make it affordable to the public.
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The order also states that: "there exists a need for exigent measures to achieve the desired
objective of easing the economic burden on the people of this country to enable access to the
staple food, and such measures cannot await long processes."The government earlier suspended
tariffs on rice imports through Executive Order Nos. 11, 19, 45 and 61 in the interest of public
According to latest data available with the FAO, in February this year, retail prices of imported
rice in the country's capital city stood at around 59,500 Liberian Dollar per ton (around $701 per
ton), up about 21% from their year-ago levels.Liberia produces only one third of the rice needed
for local consumption and imports the rest. The FAO estimates Liberia to import around 350,000
tons in 2015, while the USDA estimates the west African nation to import around 300,000 tons.
Average annual consumption of the country is around 450,000 tons, according to USDA.

Inadequate Infrastructure, Less Financing


Options and Labor Migration Undermining
Cambodia's Rice Export Capability, Say
Experts
Jun 29, 2015

Inadequate milling and storage facilities; meagre financing options and consequent bankruptcies
among small farmers; as well as recent migration of a number of male farmers to Thailand are all
undermining Cambodia's capability to increase its exports, local sources quoted experts as
saying.They noted that above factors are not allowing the country to achieve the one million tons
export this year. The country is not in a position to take advantage of the increasing demand from
China and the European Union due to these reasons. They added that the Cambodian exporters
are facing a stiff competition with Thailand and Vietnam rice exporters in terms of pricing as
they are in a position to lower prices they have better techniques and skills as well as government
support.
The experts also said that currently, Cambodia's rice surplus is not so high to increase exports.
Therefore they are urging the government to help farmers to increase production beyond the
sufficiency needs in order to be able to boost exports as well.A former Senior Adviser to the
Cambodia Rice Federation (CRF) noted that lesser financing options and high interest rates in
the country have forced many Cambodian farmers to flee to Thailand for jobs in attempt to avoid
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paying

arrears

to

micro

finance

institutions.

They say a silent crisis is going on in Cambodian rice fields, which is not in the interest of the
country. They warned that the country's rice sector cannot thrive if the government follows a
hands off "laissez faire policy".Meanwhile this year's production is likely to be impacted by dry
weather conditions and low rainfall across the rice growing regions.Cambodia exported about
243,025 tons of rice in the first five months of 2015 (January - May 2015), up about 64% from
about 148,262 tons rice exported in the same period last year according to the Secretariat of One
Window Service for Rice Export. Cambodia has exported about 387,100 tons of rice in
2014.USDA estimates Cambodia to export 1.1 million tons of rice (including official and
unofficial exports to Vietnam and Thailand through borders) in 2015, up about 10% from an
estimated 1 million tons in 2014.

India Average Wholesale Rice Prices Decline


Sharply in June 2015
Jun 29, 2015

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India average wholesale rice prices declined sharply in June 2015 after continuously increasing
for three consecutive months from March to May. The decline can be attributed to increasing
supplies in the domestic market due to a declining export demand.Planting for India's
main/kharif rice crop (June December), which began last month, has been good enough
throughout the month of June due to above-average rains recorded in most of the rice-growing
regions. However, as of June 26, the total planted area at around 2.328 million hectares slightly
lagged by about 7% from last year.Average monthly wholesale rice prices in India declined to
around Rs.2,657.50 per quintal in June 2015, down about 8% from around Rs.2,903.67 per
quintal in May 2015, and down about 8% from their year-ago levels of around Rs.2,901.95 per
quintal.
In terms of USD per ton, wholesale rice prices in India stand at around $419 per ton (using
current exchange rates) in June 2015, up about 8% from around $455 per ton (using historical
exchange rates) in May 2015, and down about 13% from around $483 per ton (using historical
exchange rates) in June 2014. Indias average prices are likely to increase if Indias production
is dampened by a moderate drought-inducing El Nino weather pattern, which is expected to
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persist between July and September. Weather bureaus in Australia and Japan are forecasting an
intensifying El Nino weather pattern, which is already causing dry conditions in South East
Asian countries, including Thailand, North Korea, Indonesia and the Philippines.
The government of India is monitoring the impact of El Nino on monsoon rains in the country,
which have been so far unaffected by the phenomenon. USDA estimates India's 2015-16
(October - September) production at around 104 million tons, up about 1.5% from an estimated
102.5 million tons in 2014-15. It estimates India's 2015 rice exports at around 10.2 million tons,
slightly up from an estimated 10.15 million tons in 2014.

India Basmati Rice Growers Advised to Plant


Pusa 1509 After July 15 to Avoid Breakage
Jun 29, 2015

Farmers in India's two main basmati rice growing states Punjab and Haryana have been advised
to plant Pusa basmati 1509 variety after July 15 to avoid incidence of breakage, according to
local sources.Government officials noted that since transplanting of basmati 1509 seeds before
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July 15 is said to lead to a high incidence of broken content and moisture content during milling,
the two state governments are carrying out a campaign to educate farmers about the ill-effects of
early transplanting the seeds. Rice exporters have been complaining of low or no acceptability in
the export market if there is higher content of brokens and moisture in the seeds.
One of the leading basmati rice exporters that they had faced huge losses during the last season
due to this reason. "We want that crop should be sown after July 15, which should be ready by
October," he was quoted as saying.Basmati 1509, which has been developed by the Indian
Agricultural Research Institute (IARI), is popular among the farmers of both Punjab and Haryana
for its high yield and short duration.The IARI Principal Scientist said: "We have always been
saying that transplantation of 1509 variety should start from July 20 onwards and it can be
transplanted till August 10. Then it will have good aroma and will have no broken rice issue."
About 300,000 hectares in Punjab and about 250,000 hectares in Haryana were used to plant
basmati 1509 variety last year.Total basmati area in Punjab is about 800,000 hectares and
600,000 hectares in Punjab and Haryana respectively. Punjab and Haryana have targeted 2.65
million hectares and 1.2 million hectares under paddy for current Kharif season.

Global Rice Quotes


June 29th, 2015
Long grain white rice - high quality
Thailand 100% B grade 375-385
Vietnam 5% broken
350-360
India 5% broken
385-395
Pakistan 5% broken
375-385
Myanmar 5% broken 415-425
Cambodia 5% broken NQ

U.S. 4% broken
450-460
Uruguay 5% broken
565-575
Argentina 5% broken 555-565
Long grain white rice - low quality
Thailand 25% broken 345-355
Vietnam 25% broken 330-340
Pakistan 25% broken 335-345
Cambodia 25% broken NQ

India 25% broken


350-360
U.S. 15% broken
440-450
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Long grain parboiled rice


Thailand parboiled 100% stxd 365-375

Pakistan parboiled 5% broken stxd


395-405
India parboiled 5% broken stxd 360-370

U.S. parboiled 4% broken


555-565

Brazil parboiled 5% broken


570-580

Uruguay parboiled 5% broken NQ

Long grain fragrant rice


Thailand Hommali 92%
815-825
Vietnam Jasmine
475-485

India basmati 2% broken


NQ

Pakistan basmati 2% broken


NQ

Cambodia Phka Mails NQ

Brokens
Thailand A1 Super
315-325

Vietnam 100% broken 310-320

Pakistan 100% broken stxd


290-300
Cambodia A1 Super
NQ

India 100% broken stxd


280-290
Egypt medium grain brokens NQ

U.S. pet food 350-360

Brazil half grain


NQ

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

Myanmar to Boost Aromatic Rice Exports to


Singapore, U.S.
Jun 29, 2015

Myanmar is planning to increase aromatic rice exports to Singapore and the U.S., Xinhua News
Agency quoted sources from the Myanmar Rice Federation (MRF).The country produces both
short and long-term aromatic rice varieties, according to the MRF. It produces two types of
fragrant rice - Lone Thwal Hmwe and Paw San.The country is particularly planning to increase
exports of the aromatic rice variety Paw San, which is grown in limited quantities in the regions
of Ayeyawady Delta, Bago and some parts of Sagaing Regions in monsoon, said the MRF
sources. Last year, Myanmar exported 20 tons of Paw San rice to the U.S.
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In June, a delegation from the European Union (EU) visited Myanmar to discuss the country's
ability to export fragrant rice to the EU in the mid- to long-term. The General Secretary of the
MRF reportedly told the delegation that Myanmar can grow both short and long grain aromatic
rice through the contract farming system and can meet the EU demand. The MRF ViceChairman told local sources that aromatic rice farmers should be encouraged to increase
production of Paw San in the light of increased export demand.
He noted that farmers usually don't show interest in exporting Paw San as it fetches a good price
locally itself. The export price of Paw San is currently in the range of $900 per ton.Myanmar's
rice exports have been increasing consistently for the last three years, according to the Ministry
of Commerce. Myanmar exported about 1.7 million tons of rice in FY 2014-15, about 1.2 million
tons of rice in FY 2013-14 and about 1.4 million tons of rice in FY 2012-13.The government is
keen on increasing rice exports to around 3 million tons over the next few years and has
prioritized rice in its National Export Strategy (NES), which it launched earlier this year.

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Laos Rice Production May Decline Due to


Dry Weather in Upland Areas, Flash Floods
in North-East
Jun 29, 2015

Laos rice production is likely to decline this year due to two simultaneous and contradicting
weather patterns in the country, Xinhua News Agency quoted the state run Vientiane Times.Dry
weather conditions and less rainfall are disrupting planting preparations in the country's upland
areas. Many farmers are understood to have postponed their planting operations with hope of
receiving rains soon. If this situation persists, rice output may decline thereby pushing up local
prices.On the other hand, unprecedented flash floods in the country's north-east Huaphan
province due to heavy rains last week are understood to have damaged several hectares of paddy
fields.
In the prior week a grasshopper plague reportedly affected crops in the northern province of
Luang Prabang.Considering the present weather conditions, the country's paddy production is
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expected to fall below estimated 4.2 million tons, according to local sources. The unforeseen
development is likely to spoil plans of Laos to increase rice production and begin exports this
year.The UN's FAO estimates Laos 2015 paddy rice production to increase about 3% y/y to
around 3.4 million tons. USDA estimates Laos 2015 paddy production to decline about 4% y/y
to around 2.5 million tons in 2015.

Thai Government Encourages Farmers to


Purchase Main Rice-Crop Insurance to
Contain Drought-Related Losses
Jun 29, 2015

The government of Thailand is encouraging farmers to buy main rice-crop insurance to reduce
losses from harvest failure caused by natural disasters, according to local sources.Especially in
the light of ongoing drought conditions, the government has announced that it would subsidize
the farmers' premiums up to 80%. Last year farmers in around 112,000 hectares purchased main
rice-crop insurance. This year, the government is expecting around 240,000 hectares to be
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insured this year. About seven insurers are offering main rice-crop insurance through the Bank
for Agriculture and Agricultural Cooperatives (BAAC) between May 6 - August 14, 2015,
according to the President of the Thai General Insurance Association (TGIA).
He noted that the IGIA would request the National Catastrophe Insurance Fund to reinsure some
main rice-crop insurance to support local insurers and encourage more farmers to insure their
crops.Separately, the BAAC announced that it would suspend interest and principal payments for
drought-hit farmers.In this backdrop, the honorary president of the Thai Rice Exporters
Association (TREA) told local sources that rice prices, which have been declining for the last
few months are likely to increase due to drought.
He noted that the production levels in India and China would mainly dictate rise in global rice
prices. The trend would be evident by August, when they start harvesting their crops.As for Thai
rice, he said increased demand for parboiled rice from Nigeria and Benin prompted higher
exported in May. He also noted that winning the upcoming 250,000 rice import tender by the
Philippines is important for Thailand. The Philippines is yet to announce the timing of the
tender.Meanwhile, the Commerce Ministry is planning to meet with rice exporters, millers and
traders to discuss about the falling domestic rice prices.

Oryza Afternoon Recap - Chicago Rough


Rice Futures Tumble as Market Lacks
Buying Interest as Market Eyes Large
Carryover; Wheat Continues to Add Weather
Premium
Jun 29, 2015

Chicago rough rice futures for Sep delivery settled 16 cent per cwt (about $4 per ton) lower at
$10.085 per cwt (about $222 per ton). The other grains finished the day with mixed results with
the only component to make a distinct move being wheat, which continues to add to recent gains;
Soybeans closed about 0.6% lower at $9.8000 per bushel; wheat finished about 2.7% higher at
$5.8350 per bushel, and corn finished the day about 0.1% higher at $4.0225 per bushel.U.S.
stocks fell more than 1.5% on Monday, following a decline in global markets on the escalating
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Greece debt crisis. S&P downgraded Greece to "CCC-" and said in a Reuters report that the
probability of the country exiting the euro zone is now about 50%. Earlier, a Greek official told
Reuters in midday trade ET that the country will not pay its loan due to the International
Monetary Fund on Tuesday.
In addition to capital controls in Greece, Puerto Rico's governor said the commonwealth cannot
pay its debt of about $72 billion. Mainland Chinese markets entered bear market territory, with
the Shanghai Composite closing 3.3% lower on Monday despite initial attempts at gains
following the central bank's rate cut over the weekend. Concerns over Greece hit global markets
hard, with stocks in France and Germany closing more than 3% lower. Asian stocks also fell
overnight, with Japan's Nikkei off 2.9%. The Dow Jones Industrial Average traded down 236
points, or 1.32%, at 17,709. The Dow transports traded more than 1% lower. The S&P 500
traded down 29 points, or 1.38%, at 2,072, with financials leading nine sectors lower and utilities
the only advancer. The Nasdaq traded down 79 points, or 1.55%, at 5,001. Gold is trading about
0.5% higher, crude oil is seen trading about 2.2% lower, and the U.S. dollar is seen trading at
about 0.7% lower at about 1:00pm Chicago time.Friday, there were 2,198 contracts traded, up
from 1,703 contracts traded on Thursday. Open interest the number of contracts outstanding
on Friday decreased by 222 contracts to 9,711.

Thai Supreme Court Begins Trial Against 21


Individuals in G2G Rice Case; 19 Plead
Innocence
Jun 29, 2015

The Criminal Division for Holders of Political Officers of


Thailand's Supreme Court has begun trial against 21
individuals, including the former Commerce Minister and
the former Deputy Commerce Minister, former DirectorGeneral of the Department of Foreign Trade, three civil
servants and 15 others, for their alleged corruption in
government-to-government (G2G) rice deals with two
Chinese companies, according to local sources.The Office
of the Attorney-General (OAG) filed the charges against
the 21 individuals based on the advice of the National Anti-Corruption Commission (NACC),
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which assured that there was adequate evidence to bring the case to trial.The NACC earlier noted
that the accused 21 persons apparently helped two Chinese companies, which were reportedly
not authorized by the Chinese government, to seal G2G contracts for about 1.2 million tons of
rice with the Thai government without participating in a bid. They are said to have violated the
Criminal Code, the Public Competitive Bidding Act and the Anti-Corruption Act.If found guilty,
the 21 individuals, including the former Commerce Minister, may face life imprisonments as
well as a fine of up to 35.2 billion baht (around $1.1 million).
The Supreme Court had granted bail to the former Commerce Minister in the present case at 20
million baht (around $593,190) and barred him from leaving the country without its
permission.Former Commerce Minister and 18 other accused have reportedly pleaded innocence
in the G2G rice case. They have been allowed to submit a written tesimony to the court by
August 31 and the Court is to examine the evidences on September 29, 2015.

Rice During January 1 June 25, 2015


Jun 29, 2015

Vietnam exported about 2.45 million tons of rice in January 1 - June 25, 2015, down about 19%
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from about 3.015 million tons of rice exported in first half of 2014, according to data from the
Vietnam Food Association (VFA). Average rice export price so far in this year stands at about
$419 per ton (FOB), down about 3% per ton from about $431 per ton recorded during same last
year.
During June 1-25, 2015, Vietnam exported about 368,547 tons of rice, down about 45% from
about 671,174 tons rice exported in full month of June 2014, and down about 30% from about
525,742 tons rice exported in full month of May 2015. Average export prices in so far in June
stands at about $412 per ton, down about 3% per ton from a year and a month ago.

Thailand Expects Greater Interest for Fourth


Rice Auction in First Week of July 2015
Jun 29, 2015

The government of Thailand is expecting a greater


interest from private bidders for the fourth rice auction
that has been planned on July 7, according to local
sources.The Deputy Director-General of the Foreign
Trade Department told local sources that they are
expecting a good response in the fourth auction based
on the sales in the third auction, in which the Ministry
auctioned about 1.06 million tons of rice and sold
about 840,000 tons (about 80% of auctioned rice).
Demand in the rice markets remains high. So the auction comes at the right time and it seems to
have no negative impact on the whole rice market," she was quoted as saying.The Commerce
Ministry is putting up around 1.39 million tons of rice consisting of 14 types of rice from 156
government stockpiles, 107 warehouses under the Public Warehouse Organization (PWO) and
49 Marketing Organization for Farmers warehouses in 32 provinces across the country.The
Commerce Ministry sold about 2.94 million tons of rice in the first seven auctions since it took
power, raising about 30.2 billion baht (around $894 million).The Thai military government
currently holds over 16 million tons of rice in its warehouses and is planning to sell about 10
million tons this year about six million tons next year.

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Vietnam Rice Quotes Mixed Today; India,


Pakistan Rice Sellers Lower Some of Their
Quotes
Jun 29, 2015

Vietnam rice sellers increased their quotes for 5% broken rice and 25% broken rice by about $5
per ton each to around $350-$360 per ton and $330 - $340 per ton respectively; and lowered
their quotes for Jasmine rice by about $5 per ton to around $475-$485 per ton today. India rice
sellers lowered their quotes for parboiled rice by about $5 per ton to around $360-$370 per ton.
Pakistan rice sellers lowered their quotes for 100% broken rice by about $5 per ton to around
$290-$300 per ton today. Thailand rice sellers kept their quotes mostly unchanged
today.
5% Broken Rice
Thailand 5% rice is indicated at around $365 - $375 per ton, about a $15 per ton premium on
Vietnam 5% rice shown at around $350 - $360 per ton, up about a $5 per ton from Friday. India
5% rice is indicated at around $385 - $395 per ton, about $10 per ton premium on Pakistan 5%
rice shown at around $375 - $385 per ton.
25% Broken Rice
Thailand 25% rice is shown at around $345 - $350 per ton, about a $15 per ton premium on
Vietnam 25% rice shown at around $330- $340 per ton, up about a $5 per ton from Friday. India
25% rice is indicated at around $350 - $360, about $15 per ton premium on Pakistan 25% rice
shown at around $335 - $345 per ton.
Parboiled Rice
Thailand parboiled rice is indicated at around $365 - $375 per ton. India parboiled rice is
indicated at around $360 - $370 per ton, down about a $5 per ton from Friday and about a $35
per ton discount to Pakistan parboiled rice shown at around $395 - $405 per
ton.
100% Broken Rice
Thailand broken rice, A1 Super, is indicated at around $315 - $325 per ton, about $5 per ton
premium on Vietnam 100% broken rice shown at around $310 - $320 per ton. India's 100%
broken rice is shown at around $280 - $290 per ton, about a $10 per ton discount to Pakistan
broken sortexed rice shown at around $290 - $300 per ton, down about a $5 per ton from Friday.

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