Professional Documents
Culture Documents
Rice E-Newsletter
by Riceplus Magazine
November 30,2015
Vol 5, Issue XI
Daily Rice Global, Regional & Regional is shared by Ricepus Magazine-Newsletter is viewed
by international Rice related institutes and allied stake holders
1
www.riceplusmagazine.blogspot.com
Daily Global
Rice E-Newsletter
by Riceplus Magazine
News Detail...
Saudi Arabia consumes more Indian rice these days than Iran
By S V Krishnamachari
| Updated: November 30, 2015 17:48 IST
Labourers work at a rice mill on the outskirts of Agartala, capital of TripuraReuters file
Saudi Arabia continues to be the largest importer of rice from India, importing more than Iran
during the first six months of 2015-16, a trend that was first set last fiscal.Saudi Arabia imported
598,001 tonnes of rice valued at $527.16 million during the April-September period, as against
Iran which imported 361,474 tonnes of rice valued at $319.71 million.Till 2013-14, Iran was the
largest importer of rice from India, buying 15.32 lakh tonnes valued at $1.98 billion, but slipped
to second position, importing 10.04 lakh tonnes valued at $1.16 billion next year. Saudi Arabia
bought 11.48 lakh tonnes valued at $1.29 billion.In terms of overall rice exports, India exported
55.26 lakh tonnes valued at $ 3.17 billion, during the first six months of the current financial
year, with basmati accounting for $1.91 billion.Besides Saudi Arabia and Iran, other rice
Daily Global
Rice E-Newsletter
by Riceplus Magazine
importers include the UAE, Iraq and Kuwait.The details were given by Nirmala Sitharaman,
minister of state for commerce and industry, in the Lok Sabha on Monday.
http://www.ibtimes.co.in/saudi-arabia-consumes-more-indian-rice-these-days-iran-657363
ISLAMABAD: Rice exports from the country during the first four months of the current financial
year posted 10.78 percent growth as compared to the exports of the corresponding period last year,
as per Pakistan Bureau of Statistics (PBS) data published Thursday.
During the period from July-October 2015, about 898,603 metric tons of rice worth $339.92 million
exported as against exports of 657,420 metric tons valuing $306.89 million in the same period last
year.According to the PBS data, rice exports on month basis also grew by 24 percent during the month of
October as compared to the same month of last year. During October, about 347,685 metric tons of rice
worth $121.66 million was exported as compared to 22,948 metric tons valuing $9.493 million of the
same month last year.However, the data revealed that exports of basmati rice decreased by 31.22 percent
in the first four months of the current financial year and reached at 131,160 metric tons from 174,191
metric tons in the same period of the last financial year.
Daily Global
Rice E-Newsletter
by Riceplus Magazine
During the period under review, the country managed to earn $145.43 million by exporting the basmati
rice as against $11.319 million in the same period last year, the PBS data adds.Meanwhile, wheat exports
registered 100 percent increase, as about 1,061 metric tons of wheat was exported during the period from
July-October 2015 and earned $0.220 million.The data revealed that vegetable exports during the last four
months also witnessed an increase of 89 percent, as the country was able to export 195,659 metric tons of
vegetables of different kinds and fetched $56.779 million for the country.The vegetable exports during the
first four months of the last financial year were recorded at 85,420 metric tons, valuing $28.689 million,
the data revealed.
http://www.thenews.com.pk/Todays-News-3-353576-Rice-exports-post-10.78pc-growth-in-July-October
Daily Global
Rice E-Newsletter
by Riceplus Magazine
Each year, about 100,000 Iranians travel to Thailand. The Thai government will also speed up approval of
visas for Iranians. Visa applications run about 300-400 each day.To facilitate trade for both sides, the
Central Bank of Iran and the Bank of Thailand are developing banking and financial-transaction systems.
Payments should be easier to make in the near future.Thailand will have a greater possibility of exporting
rice to Iran. Iran demands about 1 million to 1.5 million tonnes of imported rice each year.Initially,
Thailand through both government and private exporters should be able to ship about 200,000 tonnes of
rice to Iran next year. Iran has been buying rice from India and Pakistan.After 53 Thai companies
participated in a business-matching function with Iran, $7.2 million (Bt260 million) worth of immediate
purchase contracts were clinched.
http://www.nationmultimedia.com/business/Thailand-Iran-target-bilateral-trade-of-$1-2-bn-wi30273770.html
Daily Global
Rice E-Newsletter
by Riceplus Magazine
Rising rice prices following Vietnam's sales to the Philippines and Indonesia have contributed to a 0.31
percent gain in the country's November food prices, the first month-on-month rise since February 2015,
the government said.China, the biggest buyer of Vietnamese rice, imported 199,350 tonnes from its
southern neighbour in October, up 81 percent from a year ago, Chinese customs data shows.This brought
China's total purchases from Vietnam in the first 10 months of 2015 to nearly 1.6 million tonnes, up 42
percent from a year ago.Overall, Vietnam's rice exports in January-November rose 3.6 percent from a
year ago to 6.24 million tonnes, the Agriculture Ministry said on Wednesday.
China and several buyers in the Middle East have also been buying small lots of Thai rice, traders
said.Thai 5-percent broken grain was unchanged at $360-$365 on Wednesday, FOB basis."All the rice
needed for holidays like Christmas and New Year's Day has already been bought months earlier," said a
trader in Bangkok, adding that the sale slump was expected to last until early January 2016.In another
development, Indonesia was expected to sign a memorandum of understanding soon with Pakistan on rice
imports, the Jakarta Post reported last Thursday without giving any details on price or volume.
http://pakissan.com/english/news/newsDetail.php?newsid=30248
Daily Global
Rice E-Newsletter
by Riceplus Magazine
http://www.bworldonline.com/content.php?section=TopStory&title=Additional-rice-importsnow-expected-to-be-&145much-lower&8217-than-first-estimated&id=119321
TEMPO.CO, Jakarta - Trade Minister Thomas Lembong has instructed state logistics agency,
BULOG, to intervene in the rice market by using the government's rice reserves to bring rice
prices under control. The instruction was contained in Trade Ministry's Decree No. 944/MDAG/SD/11/2015, which instructs BULOG to sell off its' rice reserves at Rp7,500 per kilogram
in Java, or Rp7,600 per kilogram outside Java. The letter - dated November 13, 2015 - also puts a
cap on retail prices in the market. The instruction stated that prices cannot exceed Rp8000 per
kilogram over BULOG's prices, and that the cap will be effective until prices have gone down.
That said, the Decree does not specify how much rice reserves have been set aside for the
interventions, which will be done across the archipelago - with priorities given to areas where
rice prices have fluctuated way above the average.
Through the Decree, government asks BULOG's deputies to work together with provincial and
district heads to coordinate the intervention, and to report the result of the intervention to the
Trade Ministry,the Coordinating Ministry for the Economy, as well as the Agricultural Minister
as the Head of the Food Security Council. According to the Trade Ministry's Basic Goods Price
Daily Global
Rice E-Newsletter
by Riceplus Magazine
Surveillance System on Monday, November 30, rice prices have reached around Rp10,602.21
per kilogram - up from last month's average that stood at Rp10,436.76 per kilogram.
http://en.tempo.co/read/news/2015/11/30/056723533/Trade-Ministry-Orders-Bulog-to-Stabilise-RicePrices
Daily Global
Rice E-Newsletter
by Riceplus Magazine
According to Djarot, such a condition would not occur if the decision to import rice was made
earlier. Therefore, Bulog would have more time to plan the distribution.Djarot revealed that the
rice imports had increased Bulogs stock to 1.3 million tons. However, the government was still
concern with crop failures caused by this years El Nino. Djarot added that the government had
considered importing more rice from other countries.Rice imports from Pakistan have been
considered, but no agreement has been reached yet, Djarot explained.
http://en.tempo.co/read/news/2015/11/29/056723214/227000-Tons-of-Rice-Imported-from-Vietnam
Daily Global
Rice E-Newsletter
by Riceplus Magazine
promising rice lines from VNUA.The technology, which can be applied to other crops such as soybeans,
sorghum and maize as well as vegetables, helps to improve the quality of agricultural products. VNS
Scientists visit a new rice variety field in Nam Dan District, Nghe An Province. Vietnamese and Japanese
researchers have completed an international project to develop a new rice variety that is disease- and
insect-resistant with a high-yield, short-growth duration. Photodangcongsan.vn
http://vietnamnews.vn/society/279221/japan-vn-developing-new-rice-resistant-to-disease-bugs.html
Rice exports from Vietnam may increase 14 percent in the first quarter as the strongest El Nino
in almost two decades shrivels crops in some countries, spurring importers to build
reserves.Shipments will jump to 1.3 million metric tons in the three months ending March from
1.14 million tons a year earlier, said Tran Tuan Anh, Vietnams deputy minister of industry and
trade. The worlds third-biggest exporter is already seeing a spurt in demand, he said in an e-mail
on Nov. 25. October rice shipments surged 43 percent to 859,000 tons from a year earlier, the
highest level since July 2012, government data show.
Indonesia and the Philippines are among nations importing rice after dry weather induced by the
strongest El Nino since the record event in 1997-98 hurts crops. Prospects for the event to further
strengthen may prompt buyers to secure supplies before prices run up as the United Nations
Food & Agriculture Organization predicts a decline in global rice output in the 2015-16 season
with consumption surpassing production.Rice supply and stockpiles will decline, and demand
for imports will rise because of unfavorable weather conditions, Anh said. The El Nino event
occurring this year and prolonging into 2016 will affect production in many countries, especially
Thailand, Indonesia, and the Philippines.Rough-rice futures on the Chicago Board of Trade
have rallied 29 percent from the lowest level in more than eight years in May on concern that the
El Nino will shrink global harvest. The contract for delivery in January closed at $12.13 per 100
pounds on Wednesday.
Output Decline
10
Daily Global
Rice E-Newsletter
by Riceplus Magazine
Production in Thailand may decline to the lowest in 19 years as dry weather may prompt the
worlds top exporter to further restrict plantings to preserve water supply. The Philippines is
monitoring rice production closely to see whether theres need to import more on El Nino after
purchasing 750,000 tons from Vietnam and Thailand for delivery from November to March
2016. Indonesia this month agreed to import 1.5 million tons from Vietnam and Thailand and is
in talks with Cambodia and Myanmar for additional supplies, according to state-run food
company Bulog.
Vietnams paddy rice output may increase 0.3 percent to 45.1 million tons this year,
VietnamPlus reported in September, citing the Agriculture Ministry. Exports may climb to 7
million tons in 2016 from 6.2 million tons this year, according to the U.S. Department of
Agriculture.Boosting rice exports will still be a challenge for Vietnam as Thailand is looking to
draw down the stockpiles it accumulated under a state purchase plan, Anh said. Major importers,
especially in Southeast Asia, are also diversifying supply sources and boosting domestic
production, he said.Thailand has about 13.7 million tons of rice in state stockpiles after the
military government sold 5 million tons, Chutima Bunyapraphasara, permanent secretary for
commerce, said Nov. 16.
http://www.bloomberg.com/news/articles/2015-11-27/el-nino-shrinking-rice-crop-worldwide-to-spurvietnamese-sales
Over 1 million rai of off-season rice farming in Chao Phraya River Basin
BANGKOK, 30 November 2015 (NNT) Water management for the Chao Praya River
Basin continues to be challenging with decreasing water inflows, while all sides have been
urged to conserve water consumption during this drought season.
The four major dams in the Chao Phraya River Basin currently contain an accumulated water reserves at
10,891 million cubic meters. The amount of water flowing into these dams has continued to decline, with
7.35 million cubic meters inbound, against a consumption rate of 15 million cubic meters per day.Water
reserves available for usage are reported to be at 4,195 million cubic meters.From 1 November 2015 until
now, 419 million cubic meters of water has been used, with 13 percent allocated to the Chao Phraya River
Basin. This drought seasons water allocation plan dictates that 2880 million cubic meters can still be
allocated for usage for the remainder of the season.
Although the water consumption has proceeded according to plan, farmers have cultivated a total of 1
million rais of off-season rice, and are at risk of suffering water shortages in the near future if off-season
rice farming continues to expand.However, the Royal Irrigation Department and related agencies have
continued their task in providing knowledge and understanding to the farmers and water users, so that the
limited supply of water is sufficient for consumption and ecosystem conservation throughout the dry
11
Daily Global
Rice E-Newsletter
by Riceplus Magazine
season; until the early rainy season next year.All sectors have been asked to use water as sparingly as
possible so that this years drought crisis can be overcome.
http://news.thaivisa.com/thailand/over-1-million-rai-of-off-season-rice-farming-in-chao-phraya-riverbasin/122907/
While Vietnam is among the worlds top rice exporters, many consumers in some southern
markets now prefer several types of Cambodian rice to the domestically grown produce.
Some rice businesses in the southern province of Tien Giang have begun sourcing rice from
Cambodia to distribute to Ho Chi Minh City and neighboring localities, instead of that grown in
Vietnams Mekong Delta, known as the countrys granary.Trung, who runs a major rice firm in
the province, said he sells an average of 500 metric tons of Cambodian rice on a monthly
basis.He always comes to Cambodia to directly buy paddy there, and the rice processing and
packaging are done at his own facility.So I can ensure competitive prices and good quality for
the produce, he said.
Many Tien Giang-based rice businesses say consumers in southern Vietnam are fond of four
types of Cambodian rice, namely Sa Mo, Sa Ri, Mong Chim and Soc Mien, even though there is
nothing special about their flavor and aroma.Cambodian rice fetches stable prices, so you do not
have to worry about suffering losses, Nguyen Thi Tim, a Tien Giang rice seller, said.The
demand for Cambodian rice is also growing so it sells easier than the domestic grain.Kiet, who
runs a rice-husking plant in Tien Giang, explains that the four most popular types of Cambodian
rice in Vietnam are winter rice, which requires longer growing duration than the summer grain so
there are only two crops per year.The short-grain Cambodian rice is less sticky when cooked,
so those who do not like sticky and aromatic rice will prefer it, he added.
His explanation is supported by Do Thi Mui, who runs two rice stores in Phan Thiet, the capital
of the south-central province of Binh Thuan.The cooked Cambodian rice is soft and not sticky,
which is easy to eat and digest, therefore largely enjoyed by local eateries and those doing heavy
physical work, Mui said.Many eateries that sell cooked rice in Long An Province and Tien
Giang admit that they can reap bigger profits by selling Cambodian rice over Vietnamese grain,
as most consumers prefer soft to sticky rice.Nguyen Thi Kieu Nga, a rice seller in Long An, also
located in the Mekong Delta, said farmers usually do not use pesticide on the winter rice crops,
which helps the Cambodian grain to win new customers.Professor Vo Tong Xuan, a seasoned
rice expert, confirmed that many Vietnamese consumers are eating Cambodian rice as the grain
is cleaner than that grown in Vietnam, thanks to the sparse use of insecticides.
12
Daily Global
Rice E-Newsletter
by Riceplus Magazine
Many officials in the Vietnamese provinces bordering Cambodia have told me that they choose
Cambodian or Thai rice for safety reasons, he said.This illustrates the importance of growing
rice under best practice methods such as VietGAP or GlobalGAP.People now eat for their
health, not for a full stomach.Last year Vietnam exported 7.5 million metric tons, but the figure
this year is expected to be only 6.7 million metric tons, according to the Ministry of Agriculture
and Rural Development.In the Jan-Oct period, the countrys rice export reached 5.03 million
metric tons, according to the Vietnam Food Administration.
tuoitrenews.vn/.../in-riceexporting-vietnam-consumers-growing-fond-of
Sushil Goyal
Tribune News Service
Sangrur, November 27
The farmers have been waiting for the payment in respect of their paddy crop which they had sold to
government procurement agencies about 15 days ago in local grain market and nearby procurement
centres.It is learnt that the state governments procurement agencies could not make the payments to the
arhtiyas during the past about 15 days as the Central government has not released the funds for the
purpose.As per information, all five government procurement agencies, namely Pungrain, Markfed,
Punsup, Warehouse and Punjab Agro, have yet to make the payment to the tune of Rs 70 crore to the
arhtiyas of the Sangrur district so far. During this paddy season, these agencies had procured paddy worth
over Rs 2,350 crore in Sangrur district while the agencies had already made payments to the tune of over
Rs 2,280 crore to the arhtiyas.
Pardeep Singla, an arhtiya of Sangrur grain market, said he was yet to receive the payment, worth Rs 95
lakh, from three procurement agencies Punjab Agro, Pungrain and Markfed though his Rupay
Card had been swiped about 15 days ago by these agencies to make the payment. He said due to the nonpayment of dues, the arhtiyas had been facing problems as the farmers were demanding money from
them.The accountant of an arhtiya of Sangrur grain market said their firm was yet to receive about Rs 2
crore from the procurement agencies for the paddy crop of farmers, sold to agencies more than a fortnight
ago. He said the procurement agencies had swiped their Rupay card but amounts had not been credited
into their bank accounts so far.The District Food Supply Controller (DFSC), Sangrur, Manish Narula,
said the payments would be credited into the accounts of arhtiyas by Monday or Tuesday as the Central
government had released funds for the purpose. He said in Sangrur district, the government procurement
agencies had already made 97% payment of the procured paddy to the arhtiyas.
13
Daily Global
Rice E-Newsletter
by Riceplus Magazine
http://www.tribuneindia.com/news/punjab/paddy-growers-await-payment-from-procurementagencies/163864.html
Rice, which used to be a Korean staple eaten three times a day, has lost so much of its appeal that
South Korea is now stuck with a huge rice surplus of 1.36 million tonnes after a record bumper
crop this year.With South Koreans eating less and less rice - only 9.6 times a week according to a
recent study - the government is now trying to create new rice-based products in a bid to increase
consumption.The latest is rice-based penne pasta, after rice bread and rice noodles. But habits
may be hard to change as people have become used to eating such products made from wheat.
http://www.straitstimes.com/asia/east-asia/seoul-seeks-ways-to-deal-with-huge-rice-stockpile
14
Daily Global
Rice E-Newsletter
by Riceplus Magazine
The price of rice has declined in Ghanaian markets within the last week of November.It dropped
by 9 percent to close the week at an average price of GHS 25.00 for one small bag of 5kg
(imported-Unclesam). This was followed by Maize which made a 5 percent drop to close the
week at GHS 4.00 per olunka. Yam (Pona) also followed with 4 percent drop to close the week
at GHS 3.60 and Soya bean dropped by 2 percent to close the week at GHS 6.40 per olunka.
Cassava (Gari) and Groundnut dropped by a percentage point each to close at GHS 4.40 and 12
.90 per olunka respectively. Esoko Ghana reported that tomato gained 4 percent to close the
week at GHS 11.70 per medium size tomato tin. Cowpea followed with 2 percent gained to
close the week at GHS 7.80 per olunka and Cassava (fresh tubers) also gained a percentage point
to close the week at 3.60 per 3-4 tubers. The other commodity prices remained the same.On the
various markets, the price for an olunka of maize dropped by 20 percent in Dambai to close the
week at GHS 4.00, by 16 percent in Bawku to close the week at GHS 3.00 and by 2 percent in
Kumasi to close the week at GHS 5.00; in the other markets the price remained the same.
Techiman
A medium size tomato tin, full of fresh tomatoes lost 11 percent in Techiman to close the week
at GHS 11.50. The commodity however made some gains in Kumasi and Dambai.
Kumasi
In Kumasi, it gained 14 percent to close at GHS 9.10 and in Dambai by 76 percentage to close
the week at GHS 7.90. In the other markets prices remained the same.
http://www.ghanaweb.com/GhanaHomePage/business/Price-of-rice-declines-in-Ghanaian-markets396883
15
Daily Global
Rice E-Newsletter
by Riceplus Magazine
The Dh140 million facility will have a storage capacity of 50,000 tonnes of rice, the statement
said.
business@thenational.ae
http://www.thenational.ae/business/economy/new-abu-dhabi-rice-mill-to-start-operations-next-year
Product
Price
4875
4375
3625
2514
2440
887
691
518
Apricots
Raisins
White Sugar
Source:agra-net
Market Watch
Commodity-wise, Market-wise Daily Price on 30-11-2015
Domestic Prices
Product
Market Center
Variety
Maize
16
Min Price
Max Price
Daily Global
Rice E-Newsletter
by Riceplus Magazine
Kottur (Karnataka)
Local
1295
1526
Dahod (Gujarat)
Yellow
1525
1580
Palthan (Maharashtra)
Yellow
1325
1600
Dehgam (Gujarat)
Other
1165
1330
Jajpur (Orissa)
Other
1410
1500
Bareta (Punjab)
Other
1700
2450
Batala (Punjab)
Other
1600
2200
Kolhapur (Maharashtra)
Other
600
1400
Other
2500
3000
Palayam (Kerala)
Other
3000
3300
Nagpur (Maharashtra)
Other
600
900
Shillong (Meghalaya)
Other
1600
1800
Paddy(Dhan)
Guava
Cauliflower
Source:agmarknet.nic.in
Egg
Rs per 100 No
Price on 30-11-2015
Product
Market Center
Price
Ahmedabad
397
Mysore
375
Namakkal
357
Source: e2necc.com
17
Daily Global
Rice E-Newsletter
by Riceplus Magazine
Price on 30-11-2015
Product
Market Center
Origin
Variety
Low
Onions Dry
High
Package: 40 lb cartons
Atlanta
Peru
Yellow
24
26
Chicago
Nevada
Yellow
22
25
Dallas
Washington
Yellow
27.50
27.50
Carrots
Atlanta
California
Baby Peeled
20
20.75
Dallas
Arizona
Baby Peeled
17
18.50
Philadelphia
California
Baby Peeled
15
16
Apples
Atlanta
Washington
Red Delicious
24
26.50
Dallas
Washington
Red Delicious
25.75
26.25
Miami
Washington
Red Delicious
22
23
Source:USDA
Product
Price
2100
2000
1800
Garlic
Ginger
18
Daily Global
Rice E-Newsletter
by Riceplus Magazine
4600
5100
3000
2905
2598
2075
Sultanas
Source:agra-net
Market Watch
Commodity-wise, Market-wise Daily Price on 28-11-2015
Domestic Prices
Product
Market Center
Variety
Min Price
Max Price
Manjeri (Kerala)
Other
2800
3800
Srirampur (Assam)
Common
2950
3200
Fine
2600
2800
Rajkot (Gujarat)
Other
1690
2250
Sangli (Maharashtra)
Other
1700
3500
Other
1590
1730
Manjeri (Kerala)
Other
2700
2900
Barnala (Punjab)
Other
3500
4000
Other
2000
2500
Rice
Wheat
Mousambi
Carrot
19
Daily Global
Rice E-Newsletter
by Riceplus Magazine
Chala (Kerala)
Other
3700
3750
Jalgaon (Maharashtra)
Other
1800
2200
Ahmedabad (Gujarat)
Other
1000
1500
Source:agmarknet.nic.in
Egg
Rs per 100 No
Price on 28-11-2015
Product
Market Center
Price
Pune
390
Chittoor
373
Hyderabad
353
Source: e2necc.com
Price on 25-11-2015
Product
Market Center
Origin
Variety
Low
Potatoes
High
Package: 50 lb sacks
Atlanta
Idaho
Russet
15.50
15.50
Chicago
Idaho
Russet
11
Miami
Washington
Russet
13
14
Cucumbers
Atlanta
Mexico
Long Seedless
14
14
Dallas
California
Long Seedless
17
18.50
Detroit
Canada
Long Seedless
10
12
Grapefruit
1
Florida
Red
20
24
25
Daily Global
Rice E-Newsletter
by Riceplus Magazine
Detroit
Florida
Red
20
21
Philadelphia
Florida
Red
14
16
Source:USDA
21
Daily Global
Rice E-Newsletter
by Riceplus Magazine
Month
Price
Net Change
January 2016
$11.905
- $0.050
March 2016
$12.170
- $0.055
May 2016
$12.465
- $0.050
July 2016
$12.725
- $0.045
September 2016
$12.560
- $0.090
November 2016
$12.560
- $0.090
January 2017
$12.560
- $0.090
Rice exports from Vietnam may increase 14 percent in the first quarter as the strongest El Nino
in almost two decades shrivels crops in some countries, spurring importers to build reserves.
Shipments will jump to 1.3 million metric tons in the three months ending March from 1.14
million tons a year earlier, said Tran Tuan Anh, Vietnams deputy minister of industry and trade.
The worlds third-biggest exporter is already seeing a spurt in demand, he said in an e-mail on
Nov. 25. October rice shipments surged 43 percent to 859,000 tons from a year earlier, the
highest level since July 2012, government data show.
Indonesia and the Philippines are among nations importing rice after dry weather induced by the
strongest El Nino since the record event in 1997-98 hurts crops. Prospects for the event to further
strengthen may prompt buyers to secure supplies before prices run up as the United Nations
Food & Agriculture Organization predicts a decline in global rice output in the 2015-16 season
22
Daily Global
Rice E-Newsletter
by Riceplus Magazine
with consumption surpassing production.Rice supply and stockpiles will decline, and demand
for imports will rise because of unfavorable weather conditions, Anh said. The El Nino event
occurring this year and prolonging into 2016 will affect production in many countries, especially
Thailand, Indonesia, and the Philippines.Rough-rice futures on the Chicago Board of Trade
have rallied 29 percent from the lowest level in more than eight years in May on concern that the
El Nino will shrink global harvest. The contract for delivery in January closed at $12.13 per 100
pounds on Wednesday.
Output Decline
Production in Thailand may decline to the lowest in 19 years as dry weather may prompt the
worlds top exporter to further restrict plantings to preserve water supply. The Philippines is
monitoring rice production closely to see whether theres need to import more on El Nino after
purchasing 750,000 tons from Vietnam and Thailand for delivery from November to March
2016. Indonesia this month agreed to import 1.5 million tons from Vietnam and Thailand and is
in talks with Cambodia and Myanmar for additional supplies, according to state-run food
company Bulog.Vietnams paddy rice output may increase 0.3 percent to 45.1 million tons this
year, VietnamPlus reported in September, citing the Agriculture Ministry. Exports may climb to
7 million tons in 2016 from 6.2 million tons this year, according to the U.S. Department of
Agriculture.Boosting rice exports will still be a challenge for Vietnam as Thailand is looking to
draw down the stockpiles it accumulated under a state purchase plan, Anh said. Major importers,
especially in Southeast Asia, are also diversifying supply sources and boosting domestic
production, he said.
Thailand has about 13.7 million tons of rice in state stockpiles after the military government sold
5 million tons, Chutima Bunyapraphasara, permanent secretary for commerce, said Nov. 16.
A women uses a hand-pump to fill drinking water on the outskirts of Amritsar in Punjab, India,
November 15, 2015.
REUTERS/MUNISH SHARMA
23
Daily Global
Rice E-Newsletter
by Riceplus Magazine
then, God forbid, people will leave farming to become labourers at railways stations."With more
than two-thirds of the 1.25 billion population living off the land, water scarcity could affect the
majority and hit long term food supplies.
As world leaders meet in Paris next week to agree a deal on cutting greenhouse gas emissions,
India says climate change is already hurting the agriculture and water sectors, and the impact is
amplified by poverty and a heavy reliance on farming.Locally, officials are trying to change
farming habits and enforce stricter rules on water usage."We are encouraging crop
diversification; we are going for pulses," said Amit Kishore, chief development officer in
Rampur, a farm belt city in Uttar Pradesh."We have been trying to convince farmers to shift to
horticulture as well, but the uptake has not been satisfactory."Four out of Rampur's six
administrative areas are so-called "dark zones", with 80 percent or more of groundwater
exhausted. In those zones, the practice of boring wells has been banned this fiscal year.Without
urgent action, the region risks going the way of Punjab and Haryana, two parched states where
the groundwater has sunk even further.Some farmers in those states now need to dig 300 feet (91
metres) for water, compared to five feet (1.5 metres) in the 1960s, according to research by a
local government scientist.
"RICE SELLS"
Prime Minister Narendra Modi has urged farmers to use water wisely, advocating a "per drop,
more crop" approach that includes water-saving methods like drip irrigation.Yet his 18-monthold government has also boosted incentives to grow water-intensive rice, wheat and sugarcane
that India exports, at the expense of crops like oilseeds or pulses that it has to import.Little
wonder some farmers in the northern farming belt are ignoring the advice of local officials."We
grow rice because that is what sells," said Babu Ram Saini, standing by a pond in Jiwai Jadid
village in Rampur.
"Productivity for lentils is so low that we'll not be able to sustain ourselves without massive
government support," he said.Some experts are advocating tougher measures to force more
efficient use of water. Wastage is encouraged by the supply of free or subsidized power which
boosts politicians' popularity."We have been trying to tell farmers that if you continue growing
rice, more places are going to become dark zones," said V.K. Mishra, a regional head of the
Central Soil Salinity Research Institute in Uttar Pradesh's capital Lucknow."We should make a
law that you can't grow rice in areas where the water table is very low."Rice covers 62 percent of
Punjab's area under cultivation, up from 10 percent in 1970.
The expansion of rice has been similar in neighbouring Haryana.Though the droughts have hit
crops, India still produces more rice, wheat and sugar than it consumes, drawing accusations
from the World Trade Organization that stockpiling to provide cheap grain to the poor unfairly
distorts trade."It is quite natural for our farmers to go for rice and cane when both power and
water are almost free," said economist Gulati, adding that selling such produce abroad is like
exporting "precious water for free".
(Additional reporting by Mayank Bhardwaj in NEW DELHI; Editing by Mike Collett-White)
http://in.reuters.com/article/2015/11/28/india-water-crops-rice-pulses-idINKBN0TG10S20151128
24