40,000 MT of rice from India to reach SL

  • 40,000 MT of rice from India to reach SL COLOMBO (News 1st); The Ministry of Trade said that another 40,000 MT of rice imported via the Indian Line of Credit will reach Sri Lanka on Monday (11). The secretary to the Ministry of Trades, Bhadrani Jayawardena stated that the stock will be sold through Sathosa outlets as soon as it is received. 1kg of Nadu and Kekulu rice is sold at Rs.110/- and 1kg of Samba is sold at Rs.130/- through Sathosa. Meanwhile, the Association of Importers of Essential Commodities said that all essential commodities required by the people during the New Year season have been distributed throughout the island. The spokesman of the Association of Importers of Essential Commodities, Nihal Seneviratne said that there could be a slight shortage of milk powder. He also said that the prices of essential commodities will be reduced in the future.
     
     
     
     
  • Sri Lanka economic crisis pushes price of food items to ‘unbearable levels’, rice now selling at over Rs 200 per kg

  • Reeling under severe economic crisis, the Sri Lankan government is now forced to restrict the import of a host of essential commodities, including food items Sri Lanka economic crisis pushes price of food items to 'unbearable levels', rice now selling at over Rs 200 per kg Colombo: Sri Lanka is already under an unprecedented economic crisis and amid this people being burdened further as prices of food essentials are soaring high. Buying rice has become dearer in the island nation as the price of the foodgrain has risen to "unbearable levels" in the island nation. A report by Colombo Page mentioned consumers in Sri Lanka saying that the minimum price of a kilogram of rice in the general market has now surged Rs 200-240. Reeling under severe economic crisis, the Sri Lankan government is now forced to restrict the import of a host of essential commodities, including food items which has pushed the price of essentials such as milk powder and rice exceptionally high. Meanwhile, the Ministry of Trade says that rice is being sold at concessionary prices by wholesale network Lanka Sathosa outlets, it was learned from several CWE outlets that imported rice was not meeting the mounting demand. The report further said that Sathosa outlets in many parts of the country are in short supply of essential consumer items including rice, dried chillies and other items. In Sri Lanka, consumers have been demanding the government to take steps to reduce prices by importing rice or setting a control price. Sri Lanka is battling a severe economic crisis, with food and fuel scarcity affecting a large number of the people in the island nation. The economy has been in a free-fall since the onset of the COVID-19 pandemic, leading to the crash of the tourism sector. Sri Lanka is also facing a foreign exchange shortage, which has, incidentally, affected its capacity to import food and fuel. The country is facing long power cuts. The country is also witnessing protests over the government's handling of the worst economic crisis in decades. Yesterday, a protest was held outside the US Embassy in Colombo against the Sri Lankan government.  
  • India’s agri exports cross $50 bn in Covid-hit year; rice is top forex earner

  • According to the DGCI&S data, the export of wheat touched an all-time high at $2,118 million in 2021-22, growing 273% from the previous fiscal’s $567 million. agricultural reforms, Essential Commodities Act, farmers, agriculture sector India’s agricultural exports increased by about 20% to cross $50 billion for the year 2021-22, despite logistical challenges posed by the COVID-19 pandemic in the form of high freight rates, and container shortages, the Ministry of Commerce and Industry said. Agricultural and Processed Food Products Export Development Authority (APEDA), which works under the Ministry of Commerce and Industry, has scripted history by exporting agricultural and processed food products to the tune of $25.6 billion, which is 51% of India’s total agriculture exports of $50 billion, the ministry said. It has also surpassed its own export target of $23.7 billion for the financial year 2021-22 by registering shipments of $25.6 billion. Major exporting destinations were Bangladesh, UAE, Vietnam, USA, Nepal, Malaysia, Saudi Arabia, Indonesia, Iran, and Egypt. “The rise in export of agricultural and processed food products has been largely due to the various initiatives taken by Centre through APEDA such as organising B2B exhibitions in different countries, exploring new potential markets through product-specific and general marketing campaigns with the active involvement of Indian Embassies,” the ministry said. As per the ministry statement, the government organised more than 300 outreach programmes in collaboration with state governments for enhancing the exports of agricultural produce. “We have also created a products matrix for 50 agricultural products which have good scope for expanding our exports portfolios,” said Dr. M Angamuthu, Chairman, APEDA. As per the provisional figures released by the Directorate General of Commercial Intelligence and Statistics (DGCI&S), the agricultural exports have grown by 19.92% during 2021-22 to touch $50.21 billion. The growth rate is over and above the growth of 17.66% at $41.87 billion achieved in 2020-21. The cereal sector in APEDA exports contributes more than 52% share in 2021-22. Livestock products and other processed foods contribute 17 and 15% to APEDA export respectively in 2021-22.
    Source: Ministry of Commerce and Industry.
    According to the DGCI&S data, the export of rice was the top forex earner at $9,654 million during 2021-22, growing 9.35% from the previous year when it was $8,829 million. The export of wheat touched an all-time high at $2,118 million in 2021-22, growing 273% from the previous fiscal’s $567 million, while other cereals registered a growth of 53% by fetching $1,083 million in 2021-22 compared to the previous financial year when it was $705 million. Export of pulses reported a growth of 34% touching $358 million in 2021-22 from $265 million in 2020-21. Dairy products grew by 96% standing at $634 million in 2021-22 from $323 million in 2020-21, while buffalo meat registered a growth of just 4% as export of bovine meat increased from $3,171 million in 2020-21 to $3,303 million in 2021-22. Export of poultry products rose to $71 million in 2021-22 from $58 million in the previous year and sheep/goat meat export was up by 34% to $60 million in 2021-22 from $44 million in the previous year. Fruits and vegetables exports were up by 12% to touch $1,676 million in 2021-22 against $1,492 million in 2020-21, while processed fruits and vegetable exports were up by 7% to reach $1,202 million in 2021-22 against $1,120 million in the previous year. Exports of other processed food items grew by 34% during 2021-22 to touch $1,164 million against $866 million in 2020-21. The cashew exports also grew by 7% to $452 million in 2021-22 from $420 million in the previous year. Floriculture products reported a rise of 33% when they touched $103 million in 2021-22 from $77 million in 2020-21.
  • Nearly 25% increase in rice export bring relief to Haryana farmers, exporters

  • After heavy slump in export of rice in past about one and half years due to epidemic outbreak now farmers as well as rice exporters in Haryana state are having relief due to nearly 25% increase in rice export in past few weeks due to worldwide unrest as a result of war between Ukraine and Russia causing increase in demand of Indian rice. Information reveals, during year 2020-21nearly 16% drop in export of rice to various countries was witnessed. Farmers in Haryana grain markets are selling 1121 variety rice at the rate of Rs 4400 per quintal, Basmati rice at the rate Rs 4000 per quintal and 1509 variety rice at the rate ranging between Es 1600-1700 per quintal which is being sold at the rate ranging between Rs 3200-3300 per quintal at present. President of India Rice Exporters Association Vijay Setia told that Haryana state had export between 16 to 17 lakh ton rice of value worth Rs 16000 crore last year since there was nearly 16% drop in export due to unavoidable circumstances, whereas 25% growth in export has now been identified. Setia said in case Haryana state government had reduced market fee from 4% to 1% similar to being charged in Ghaziabad and Narela grain markets the export of rice would have increased to 20000 ton this year. Chairman of Haryana Rice Millers Association Jwail Singh told that demand of Basmati, 1121 and 1509 varieties rice has suddenly increased all over in the world due to present Ukraine-Russia war. Districts situated on G.T. Road belt which including Kurukshetra, Karnal, Kaithal, Panipat and Sonipat districts in Haryana are famous for production of paddy crop in the state in which Kuruksetra and Karnal districts are producing maximum quantity of Basmati, 1121 and 1509 variety rice being exported to large number of countries across the world including Saudi Arab, Iraq, Iran, Kuwait, Muscat, Dubai, Africa and Australia. Singla told that Saudi Arab is biggest buyer of all types of rice from our country. He said, the prices of Basmati being sold earlier at the rate Rs 3300-3500 per quintal is now being sold at the rate Rs 4400 per quintal, whereas 1121 variety rice earlier sold at the rate Rs 3500-3700 per quintal  presently being sold at the rate Rs 4100 per quintal. Similarly, 1509 variety rice earlier sold at the rate Rs 2500-2700 per quintal is available at the rate Rs Rs 4200 per quintal at present. In view of fast declining water level in underground in Haryana state government is offering beneficial schemes in case of change of crop pattern from paddy requires huge quantity to alternate crops consuming less quantity of water offering incentive of Rs 7000 each acre area.  
  • Rice Market Update: Uncertainty Remains Key Factor

  • The true nature of long grain plantings continue to be debated in the U.S., with the USDA showing flat to last year, and the industry being confident of a 10-15% cut. Time will tell, but futures prices are showing a suspected cut in acreage, and paddy prices would support the same. Uncertainty of both the market and weather continue to hover over farmers. Meterorologists at Colorado State University are predicting an “above average” 2022 hurricane season that begins June 1. Nineteen storms are forecast for the Atlantic basin. Above-average sea surface temperatures and the lack of El Nino developing that would suppress hurricane activity by increasing vertical wind shear is the contributing factor.

    Prices for long grain milled are priced at or just above $650 pmt, whereas prices in South America are at least $100 pmt below that. South America is in the peak of their harvest season, with several questions swirling around the drought situation in Brazil. We know that Uruguay has crested the high point, and is on the downhill slope of the last 20% of their crop. Argentina is just ahead of them. Brazil and Paraguay are the big swings that will be coming to light in the next few weeks.

    In Asia, prices have held steady despite the inflationary rise that so many other commodities have seen. For more than a quarter now, prices in Thailand and Vietnam have oscillated around $400 pmt, while India and Pakistan have been around $360 pmt. This can in large part be attributed to India, who hasn’t slowed exports over the COVID-19 pandemic, and has been responsible for its third record crop in as many years.

    India’s farm subsidies, which many speculate have led to their record crop, has blunted the inflationary impacts of rice world-wide. With rice being the most basic food calorie for human consumption that prevents hunger for the poorest nations, this can be viewed as a positive in the global environment. However, India’s rice subsidy violations have put a burden on many rice producers around the globe; these violations were front-and-center this week with the World Trade Organization (WTO).

    India has been called out by the U.S. rice industry and others to stop creating an unfair playing field with their rice subsidy program. It is making rice from the United States and other origins uncompetitive on a global scale, and can have severe detrimental impacts on food security world-wide in the future.

    Prices on the ground show Texas in the lead at $17/cwt. Louisiana is strong at $15.25/cwt, while prices in Mississippi, Arkansas, and Missouri are fluctuation between $14.75-$15.75 based on variety and qualities.

    The weekly USDA Export Sales report shows net sales of 8,300 MT this week, a marketing-year low, down 51% from the previous week and 81% from the prior 4-week average. Increases primarily for Mexico (13,700 MT), Haiti (7,300 MT), Jordan (4,000 MT), the Dominican Republic (2,000 MT), and Honduras (1,500 MT), were offset by reductions primarily for Colombia (22,000 MT).

    Exports of 80,300 MT were up noticeably from the previous week and up 98% from the prior 4-week average. The destinations were primarily to Mexico (32,700 MT), Colombia (22,300 MT), Haiti (15,300 MT), El Salvador (4,100 MT), and Canada (2,000 MT).In the futures market, May 22 prices are down just over 1% this week to $16.010. May 23 contracts are about flat from last week, now at $16.615. Average Daily Volume registers at 411, down 23% from last week, while open interest is flat at 9,701.

  • Sri Lanka crisis: India begins shipment of rice to crisis-hit island nation

  • The rice is being offered under a credit line of $1 billion to Sri Lanka announced by India recently towards the purchase of food, medicine and other essential commodities. Of this credit line, $150 million is earmarked for rice supplies to Sri Lanka.

    India begins shipment of rice to crisis-hit Sri Lanka India has commenced shipment of around 40,000 tonne of rice to Sri Lanka to help ease shortage of essential food commodities in the country facing an acute fiscal challenge and economic turmoil. According to B V Krishna Rao, president, Rice Exporters Association, India will provide 0.3 million tonne (mt) of rice to Sri Lanka over the next six months. “All the rice shipments to Sri Lanka will be carried out through ports such as Kakinada, Tuticorin, Chennai and other posts in the southern region,” Rao told FE. The rice is being offered under a credit line of $1 billion to Sri Lanka announced by India recently towards the purchase of food, medicine and other essential commodities. Of this credit line, $150 million is earmarked for rice supplies to Sri Lanka. “As of now, supply of around 40,000 tonne of rice to Sri Lanka has been finalised under the credit line. The first consignment of rice under this framework is expected to arrive in Sri Lanka in the coming days,” according to a statement by the High Commission of India, Colombo. Trade sources said India can ship rice to Sri Lanka within days while for other countries it would at least take a few weeks to export rice. This rice shipment from India is expected to bring down the price of grain in the island nation ahead of Sinhalese New Year, which will be celebrated on April 14. India is also expected to supply other agricultural commodities such as sugar and wheat to Sri Lanka in the coming months. According to a senior official, this assistance in terms of rice shipment is seen as ‘humanitarian measure to help the Sri Lankan people during a difficult time’. Sri Lanka has become a net importer of rice as its production sharply fell after it banned all chemical fertilisers in May 2021 for making the island nation’s agriculture sector to 100% organic cultivation. Following reports of a drop in production of various agricultural commodities because of the banning of fertiliser use, the Sri Lankan government partially lifted a ban on imports of fertiliser and allowed the private sector to import it. India has been the world’s largest rice exporter in the last decade — export earnings stood at a record $8.7 billion in 2020-21 and crossed $9.6 billion in 2021-22. India exported agricultural commodities such as onion, wheat, pulses, basmati rice and processed fruit products worth of $150 million to Sri Lanka in 2020-21.
  • Rice exporters face twin challenges after record 17-mt shipment

  • The number of vessels docked at Kakinada port, a major rice loading point on the eastern coast, fell to three from 10 last year (file image)

    Higher freight, return of Thailand to international market weigh on supplies from India

    Exporters of Indian non-basmati rice, after shipping close to 17 million tonnes in 2021-22, are facing the twin challenges of higher freight cost and the return of Thailand, a major supplier, to the international market in the current financial year. This may lead to a decline of 10-15 per cent in shipments, exporters said. As per the latest official data available till end-February for the financial year 2021-22, non-basmati shipments grew by around 40 per cent to 15.61 million tonnes, from 11.17 million tonnes a year ago. In dollar terms, non-basmati rice shipments were up 35.2 per cent at $5.551 billion in April-February 2021-22 against $4.105 billion a year ago. “We will be touching close to 17 million tonnes for fiscal 2021-22, a new record over the previous year’s 13 million tonnes,” said BV Krishna Rao, President, The Rice Exporters Association. The export data for March comes with a lag. The target for the year was 16 million tonnesr. On the outlook for the new financial year, Rao said high freight costs remain a concern and supplies from Thailand have resumed, posing a challenge to Indian exporters.

    Govt needs to help

    “Last year, Thailand did not have a good crop due to bad weather. But this year, they have made a comeback and are giving a good fight,” Rao said, adding that Indian shipments will be lower this year by 10-15 per cent. “We are unlikely to maintain 17 million tonnes unless the Government helps other countries buy more rice, like it did for Sri Lanka,” Rao added. Freight rates have moved up from last year as fuel costs have surged, triggered by the Russia-Ukraine conflict. Rao said the higher vessel rates have forced buyers, mainly in Africa, to adopt a wait-and-watch approach. Freight rates have gone up from around $90 per tonne to around $140, while rice prices are largely stable. “The buyer is not keen on paying the extra $50 and would wait for vessel prices to come down,” Rao said. This is reflected in the decline in the number of vessels docked at the Kakinada port, one of the major rice loading points on the eastern coast. “Usually, at least 10 vessels in Kakinada were being loaded last year around this time. Now there are only three.” Trade sources said Indian rice shipments are already slowing, going by the numbers in February, when non-basmati shipments fell 1.4 per cent to 1.618 million tonnes (1.641 million tonnes a year ago). Free-on-board (FOB) parboiled rice from Indian ports is quoted at $365 per tonne ($370-380) . White rice prices are hovering at $335-340 per tonne, at around last year’s levels. Broken rice prices have moved up from $270 per tonne FOB to $315-320. “Only broken rice prices have moved up as it is witnessing good demand due to high corn prices,” Rao said. The demand for brokens, which is used for feed ingredients, is from China, Indonesia and Africa among other regions.
  • Food grains heading to rice mills in the midst of uncertainty

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    In the face of uncertainty over procurement of paddy cultivated in the ongoing rabi by the government, farmers have already started moving the harvested crop to private rice mills and selling it well below the minimum support price of ₹1,960 a quintal for fine variety that was more easily marketable. The movement of stocks was only in the case of early crop, which was sown immediately after the season began, while the harvest of late sowings will take another week, sources said.  They added that the millers came forward to purchase the fine variety at over ₹2,000 a quintal initially but the rates dropped to less than ₹1,900 in the last couple of days. At some places, it was even ₹1,750 a quintal.
     

    Drop in prices

    The drop in prices was attributed to stepped up arrivals at mills which resulted in farmers waiting for their turn for two or three days to dispose of the stocks. The initial arrival of crops that were harvested a fortnight ago which were in smaller quantities fetched good prices for farmers. On the other hand, the Food Corporation of India has refused to accept custom milled rice of 2020-21 rabi season after March 31 though the State government wanted the deadline to be extended by two months.
     

    Union Minister of State for Tourism G. Kishan Reddy said that the State government was yet to meet its target of 2020-21 rabi despite several reminders. The Centre will keep its commitment to the State for 2020-21 rabi but not the corresponding season which has triggered the stand-off with the State.

  • India invokes peace clause for 3rd time as rice subsidies exceed cap

  • India has for the third time invoked the peace clause for exceeding the 10% ceiling on support it offered its rice farmers. The country informed the WTO that the value of its rice production in 2020-21 was $45.56 billion while it gave subsidies worth $6.9 billion, which comes out to 15.14% as against the permitted 10%. The peace clause protects India's food procurement programmes against action from WTO members in case the subsidy ceilings are breached. New Delhi had first invoked the clause in 2020 when it became the first country to do so. New Delhi told the WTO on Friday the stocks under the programme are acquired and released to meet the domestic food security needs of India's poor and vulnerable population, and not to impede commercial trade or food security of others.
  • Asia rice: India rates unchanged, Vietnam prices fall on rising supplies

  • BENGALURU/BANGKOK/HANOI/MUMBAI/DHAKA: Export prices of rice in India were unchanged this week amid prospects of increased supplies and an appreciation in the rupee, while an increase in stocks weighed on rates in Vietnam. Top exporter India’s 5% broken parboiled variety was quoted at $367 to $370 per tonne this week, unchanged from the last week. “Since the government has extended subsidised food grain distribution by six months, local supplies will rise and prices will remain under pressure,” said an exporter based at Kakinada in southern state of Andhra Pradesh. Vietnam’s 5% broken rice was offered at $400-$415 per tonne on Thursday, down from $415-$420 per tonne a week ago. “Domestic supplies are rising thanks to output from the winter-spring harvest,” a trader based in Ho Chi Minh City said, adding that quality has been affected due to prolonged rain during the harvest time. Preliminary shipping data showed 72,000 tonnes of rice were scheduled to be loaded at Ho Chi Minh City port during the first week of April, with most of the grains were heading to the Philippines and Africa. Vietnam’s rice exports in the first quarter are estimated to have increased 24% from a year earlier to 1.475 million tonnes, raising revenue by 10.5% to $715 million. Thailand’s 5% broken rice prices narrowed to $408-$410 per tonne this week, from $408-$412 quoted a week ago. Overseas demand for Thai rice has been muted due to insufficient ships and high freight rates, traders said. Prices, however, remained high on domestic demand for broken rice used for animal feed due to logistic problems with imports, a Bangkok-based rice trader said. The supply situation remains unchanged with the new harvest entering the market this week, traders said. In Bangladesh, domestic prices of rice rose for the week, despite good crop and reserves, as inflation in February hit the highest since October 2020.
  • FCI won’t procure parboiled rice, States can do so: Centre

  • The Centre, however, clarified that the States could procure parboiled rice for consumption within the State. Image for representational purpose only. (File Photo) HYDERABAD: Dashing all hopes of the State government, the Centre has once again made it clear that the Food Corporation of India (FCI) would not procure parboiled rice from any State, including Telangana. The Centre, however, clarified that the States could procure parboiled rice for consumption within the State. In a written reply to BJP MP Dushyant Singh on procuring surplus parboiled rice during Question Hour in Lok Sabha on Wednesday, Union Minister of State for Consumer Affairs and Food and Public Distribution Sadhvi Niranjan Jyoti said that after meeting State’s requirement for Targeted Public Distribution System (TPDS) and Other Welfare Schemes (OWS), only the excess/surplus stocks procured by the State government/its agencies were handed over to the FCI in central pool in the form of raw or parboiled rice to meet the overall consumption requirement of the country as per the Memorandum of Understanding (MoU) signed between the Central government and Decentralised Procurement (DCP) States. “Due to burgeoning stock level of parboiled rice in the central pool, the States were informed that FCI will not be in a position to accept parboiled rice during Kharif Marketing Season (KMS) 2021-22. However, a State can procure parboiled rice for consumption within that State. In the last few years, procurement of parboiled rice in the deficit parboiled consuming States like Jharkhand, Kerala and Tamil Nadu has increased resulting in lesser movement of parboiled rice from surplus to deficit States,” the Minister said. Ethanol policy In its action plan for Rabi Marketing Season 2022-23, the FCI suggested the State govt to adopt a good ethanol policy as broken rice is suitable for the production of ethanol. The FCI also asked the State to enhance its storage capacities like Punjab and Haryana. 
  • Despite rising recognition, Pokkali farmers seek help

  • Pokkali rice from central Kerala, a grain variety that has a geographical indication (GI) tag in 2007, has now become a part of India’s postal stamps.
    Express News Service
    KOCHI: Pokkali rice from central Kerala, a grain variety that has a geographical indication (GI) tag in 2007, has now become a part of India’s postal stamps. In an event organised by Kadamakudy Nellulpathaka Padasekhara Samithi in Kochi, the stamp was released to the public in the presence of Vypeen MLA K N Unnikrishnan, District Collector Jafar Malik and Post Master General of Central Kochi Mariamma Thomas.  The move will help popularise pokkali, a unique rice variety that can grow in saline waters, said K A Thomas, secretary of Kadamakudy Nellulpathaka Padasekhara Samithi. He said the organisation will submit a memorandum to the MLA and the collector detailing the struggles and demands of paddy farmers.  “Pokkali rice is grown without any fertilisers or pesticides — be it organic or chemical. That is what makes pokkali rice unique and highly nutritious. But now, pokkali farmers are struggling to stay afloat. Moreover, the number of paddy fields and farmers producing pokkali has also come down drastically,” said Thomas. The base price set by Supplyco for the rice is Rs 28 per kg. “It is to be noted that many organic varieties are sold at over Rs 100 per kilo. It’s difficult for the farmers to survive when our crops are so underpriced,” Thomas said.   The reduction in the price of prawn varieties, which are farmed in waterlogged pokkali fields after harvest, has made things worse for these farmers. “In 1995, we used to earn nearly Rs 300 per one kilo white shrimps. Now, we get only around Rs 200 even for the highest quality prawns. Pokkali farmers used to depend on prawn farming to survive. But right now, neither of them is fetching us enough money. If we spend around Rs 45,000 for farming pokkali, we earn only around Rs 25,000,” he said. To survive, the organisation has demanded the government revise the base price to Rs 120 per kg. Demands Increase the base price of pokkali rice to I120 Help farmers with basic cultivation needs Help to remove silt from farms Adding pokkali to super-speciality rice category  A governemnt master plan to help the prawn and pokkali farmers
  • Rice Exports to Sri Lanka Good Business for Myanmar

  • COLOMBO (IDN) — A recent statement by a Myanmar official has indicated that Sri Lanka has been buying rice from the country at a price higher than what others are paying for it. This has raised eyebrows in Sri Lanka that has prided itself for being self-sufficient in rice, its staple diet, for decades. In a statement attributed to the secretary of the Bayintnaung Rice Wholesale Depot, U Than Oo, Myanmar’s national daily Global New Light of Myanmar has said that in the past year Myanmar has been exporting rice to Sri Lanka and it has been a very profitable business. “Sri Lanka is a neighbour of ours and it is easy to export rice from Myanmar by sea. We sell rice to other countries at USD 340-350 per tonne, but to Sri Lanka we have been able to sell at USD 440-450 a tonne,” U Than was quoted as saying.  While Myanmar has been fetching over $ 100 per tonne above the price paid by other countries, he has also said that the Sri Lankan authorities have not imposed any restrictions on the import of Myanmar rice. “While Sri Lanka imposes no restrictions, Europe and China have been imposing various tariffs and other restrictions to protect their markets,” says U Than. “So, it is somewhat complex to export rice to these countries.” Sri Lanka has signed a memorandum of understanding with Myanmar on January 7 to import 100,000 tonnes of white rice and 50,000 tonnes of brown rice this year and the next. Due to this agreement Sri Lanka would be spending $ 15 million extra on rice imports. According to a Sri Lankan commerce ministry statement, while Myanmar has quoted $ 465 per metric tonne, the Sri Lankan counterparts have been able to negotiate the price down to $445 per metric tonne. Agricultural industry observers here predict that the rice harvest this year (due for harvest in April) could be down by about 30 percent. Today the rice prices in the market have skyrocketed creating social tension in the country. After the fertilizer subsidies to farmers were lifted (after the organic farming policy was announced) and the guaranteed price for paddy was increased to Rs 75 per kilogram, it has made any price controls of rice in the market place impossible. Government has announced that due to domestic market necessities, Sri Lanka would need to import up to 600,000 tons of rice this year. This would be the biggest rice imports to the country for 5 years. The government has also allocated Rs 40 billion ($ 13.8 million) to compensate farmers for harvest losses due to the switch to the organic farming policy. Due to the import of processed rice, United Rice Producers Society (URPS) says that it is threatening the closure of up to 500 small and medium sized rice mills in the country. “Only 75 percent of more than 800 rice mills in our country are in operation right now,” says Kusumitha Muditha, president of URPS. After a long period of self-sufficiency in rice, on November 15 last year when rice imports began to flow in, it has created this situation, he added. It is estimated that only 2.8 percent of farming land in the country use non-chemical fertilizer. After the announcement of the organic farming policy (in April 2021) some businesses have used household waste to make so-called “organic-compost fertilizer” to sell to farmers, which agricultural sources are worried is a fraud misleading farmer. Most of this is compost of food waste and is not helpful to realize Sri Lanka’s organic farming dream. The Central Bank has estimated that the leadership given to the Sri Lankan economy by agricultural activity has been now reduced by 7 percentage points and it has given rise to an agricultural industry that cannot satisfy farmers or consumers. It has come to a situation that seeds and fertilizer necessary for farmers are hard to obtain. Most of the farmers in Sri Lanka do not own the land on which they farm. Out of the productive land in Sri Lanka, government owns 82 percent.  Many of the farm leases of farmers have expired or lapsed. There are fears that if the traditional methods of survival of the farmers are tampered with, Sri Lanka would need to depend on rice imports into the foreseeable future. The farm costs have gone up including labour and hire of farm equipment. It has also made the farmer a permanent debtor. The Peoples Bank that was set up to assist farmers has now distanced itself from the farm sector, while the government has shied away from assisting the farmer. Today it is estimated that 22.2 percent of Sri Lanka’s food needs are covered by imports. To address this Sri Lanka has imported rice from Myanmar without any checks on its standards and suitability (for Sri Lankan cuisine). Within the Sri Lankan rice production industry there has been a shift in power structures with very few people controlling farming and especially trading. This has had a serious impact on the consumer according to the National Audit Office. They attribute this to the dire straits of the rice farming sector in the country. They have also pointed out that the ownership of rice mills in Sri Lanka has been slashed from 2000 people two decades ago to 800 today. 'Economynext' news noted recently that the government has given the nod to the State Trading Corporation to import limited quantities of rice from Myanmar to help stabilize the price of rice in the local market, which has been pushed up by a milling oligarchy, after Sri Lanka banned rice imports earlier and imposed an import tax. [IDN-InDepthNews – 31 March 2022] * Deshan Maduranga is a media and communication student at the Sri Palee campus of the University of Colombo in Sri Lanka. Image: Myanmar inks G-to-G agreement to export rice to Sri Lanka. Credit: MMR IDN is the flagship agency of the Non-profit International Press Syndicate.    
  • Southeast Asia must close yield gap to remain major rice bowl

  • Rice growing in field At least 40% of global rice exports come from Southeast Asia, making the region a major rice bowl. The region helps feed other parts of the world, such as Africa and the Middle East. Projections show that global rice demand is set to increase 30% by 2050. With the continuing rice trade and limited scope available for other main rice-producing countries like China and India to generate a rice surplus, Southeast Asia faces a challenge in stepping up to ensure adequate global rice supply. But crop yields stagnate, land allotted for agriculture does not increase, and climate change remains a looming threat, raising concerns about the capacity of the region to remain a large net exporter. In a recent study published in Nature Food, an international team of researchers, including those from the major rice-producing nations in Southeast Asia, estimated the difference between yield potential and average farmer yield across six countries — Cambodia, Indonesia, Myanmar, Philippines, Thailand and Vietnam. The initiative was led by the University of Nebraska–Lincoln and the International Rice Research Institute in the Philippines and included researchers from Huazhong Agricultural University in China, the International Fertilizer Association in France, the Institute of Policy and Strategy for Agriculture and Rural Development in Vietnam, Field Crops Research Institute in Vietnam, Thailand’s Rice Department, Thailand Rice Science Institute, Mawlamyine University in Myanmar, IRRI-Myanmar Office, the Department of Science and Technology-Philippine Atmospheric, Geophysical and Astronomical Services Administration, IRRI-Cambodia Office, the General Directorate of Agriculture in Cambodia and the Indonesian Agency for Agricultural Research and Development. Results from the project are available via the Global Yield Gap Atlas, a collaboration between the University of Nebraska–Lincoln and Wageningen University designed to estimate the difference between actual and potential yields for major food crops worldwide. “Over the past decades, through renewed efforts, countries in Southeast Asia were able to increase rice yields, and the region as a whole has continued to produce a large amount of rice that exceeded regional demand, allowing a rice surplus to be exported to other countries,” said lead author Shen Yuan, a postdoctoral research associate at Huazhong Agricultural University. “The issue is whether the region will be able to retain its title as a major global rice supplier in the context of increasing global and regional rice demand, yield stagnation and limited room for cropland expansion.” Through a data-intensive approach, the researchers determined that the region has the potential to increase production on existing cropland and remain a major global rice supplier, but changes in production and management techniques will be key, and producers could stress natural resources in the process. Researchers found that the average yield gap represents nearly half of the yield potential estimated for the region, but it is not the same for every country. Yield gaps are larger in Cambodia, Myanmar, the Philippines and Thailand but comparably smaller in Indonesia and Vietnam.
    Patricio Grassini
    Patricio Grassini
    “We used an approach that consists of a combination of crop modeling, spatial analysis and use of detailed databases on weather, soil and cropping system data,” said Patricio Grassini, associate professor of agronomy and horticulture at Nebraska. “The regional extent of the study together with the level of detail in relation to spatial and temporal variation in yield gaps and specificity in terms of cropping systems is unique, providing a basis for prioritizing agricultural research and development and investments at regional, national and sub-national levels.” According to the study, the region needs to close the existing yield gap substantially to reduce the need for rice imports, allowing for an aggregated rice surplus of 54 million tons available for exports. “Our analysis shows that Southeast Asia will not be able to produce a large rice surplus in the future without acceleration of current rates of yield gains,” Grassini said. “Failure to increase yield on existing cropland areas will drastically reduce the rice exports to other regions and the capacity of many countries in the region to achieve or sustain rice self-sufficiency. It will also put additional pressure on land and water resources, risking further encroachment into natural ecosystems such as forests and wetlands.” Researchers suggest a number of interventions needed to close the gap, including improvement of crop management practices, such as the use of fertilizer and irrigation, nutrients, water and pest management, as well as mitigation of production risks in lowland rainfed environments. “The challenge is how to increase yield while minimizing the negative environmental impact associated with intensive rice production,” said IRRI Senor Scientist Alice Laborte. “For example, tailoring nutrient management to each environment will help increase yield and farmer profits while reducing nutrient losses. Likewise, integrated pest management is a knowledge-intensive but valuable approach if applied correctly and holistically to reduce yield losses to weeds, pests and diseases while minimizing excessive use of pesticides and associated risks to the environment and people. “Closing the rice yield gaps requires the concerted effort of policymakers, researchers and extension services to facilitate farmers’ access to technologies, information and markets. Continued investment in rice research is crucial.” The study received support from Closing Rice Yield Gaps in Asia with Reduced Environmental Footprint, funded by the Swiss Agency for Development and Cooperation. The project also received complementary funding from the Global Water for Food Institute, as well as the Bill and Melinda Gates Foundation through the CGIAR Excellence in Agronomy 2030 Incubation Phase.
  • China sells rice at auction

  • BEIJING: China sold 9,727 tonnes of rice, or 0.53% of the total offer, at an auction of its state reserves on March 22, the National Grain Trade Center said in a statement on Monday. The average selling price of the rice was 2,644 yuan ($415.34) per tonne, according to the trade centre.  
     
  • Rice worth Rs 3,300 crore yet to be lifted from Telangana by FCI

  • HYDERABAD: The procurement status of 70 lakh metric tonnes of paddy ready for the current yasangi (rabi) season is in limbo due to a dispute between the state and central governments. But, that is not all. As a result of unsolved issues between the state and the Centre, the Food Corporation of India (FCI) still has to lift Rs 3,300 crore worth rice from Telangana. Eleven lakh metric tonnes of custom milled rice (CMR) is yet to be lifted from the purchase season of April and September 2021. According to sources, the cost of this 11 lakh metric tonnes of paddy is Rs 3,300 crore at the rate of Rs 30 per kg. rice, Interestingly, rice mills have exceeded their capacity in milling 50 lakh metric tonnes of paddy during the same season. Approximately, 93 lakh metric tonnes of paddy was cultivated between October 2020 and March 2021 (kharif) season. This crop’s milling had resulted in 62 lakh metric tonnes of rice (purchase period was April-September 2021), while 11 lakh metric tonnes remains to be lifted. Union food minister Piyush Goyal’s charge that the state did not deliver the rice as promised pertains to this 11 lakh metric tonnes between October 2020-March 2021. Following the state’s request for purchasing extra parboiled rice, the Centre agreed to take three lakh metric tonnes of rice from the balance of 11 lakh metric tonnes but the commitment has not been kept. The state government accuses the Centre of causing transportation problems by failing to clear railway rakes and failing to provide storage space. There are approximately 3,000 rice mills in the state, with approximately 900 catering to parboiled rice and the remaining mills being small and fine rice mills. All these mills have the capacity to grind 50 lakh metric tonnes of rice in every cultivation season and receive 35 lakh metric tonnes of rice in return. “We have a heavy burden on the rice mills. Contrary to popular belief, we are still holding paddy and rice stocks. We have increased our capacity by 20%, but some rice is still not lifted,” said Gampa Nagender, president of the Telangana State Rice Mills Association.
     
     
  • With maize prices soaring, export demand zooms for Indian broken rice as feed

  • According to exporters, shipments of maize have slowed down due to the Russia-Ukraine conflictBuyers in Vietnam, China and Indonesia switch to the foodgrain, but its rates rising sharply 

     
    With maize (corn) prices soaring on demand from West, South and South-East Asia, buyers abroad are switching over to 100 per cent broken rice for animal feed in countries such as Vietnam, Indonesia and China.  “There is a huge demand for maize from Bangladesh, Vietnam, Indonesia besides the Gulf. But prices have surged and availability is low since the new crop will arrive only after next month,” said Bimal Bengani, Managing Director of Kolkata-based Bengani Export Pvt Ltd.  “Shipments of maize have slowed down after prices soared due to the Russia-Ukraine conflict. Instead, buyers from Vietnam and Indonesia are now seeking broken rice,” said M Madan Prakash, President, Agri Commodities Exporters Association (ACEA). 

    Only small orders taken

    “Exporters are accepting only small immediate orders that can be shipped in containers. From Kandla in Gujarat, maize is now going to Oman and other Gulf countries, as they are keen on maintaining the feed quality,” said Mukesh Singh, Co-founder of Mumbai-based MuBala Agro Commodities Ltd. A major reason for domestic maize prices increasing is that the kharif crop has almost got exhausted. Singh said maize is currently quoted at ₹2,200-500 a quintal against the minimum support price of ₹1,870. Demand for maize has increased as supplies from Ukraine, which contributes 16 per cent of global exports, have been cut off with shipments from the Black Sea coming to a total halt after Russian troops entered eastern Ukraine on February 24.

    Lukewarm demand

    “Prices of maize delivered in Chennai for exports are ₹2,350,” said ACEA’s Prakash. In Gujarat, agricultural produce marketing committee yards such as Dahod, the modal, or rate at which most trades took place, was ₹2,300 on Monday. According to the International Grains Council (IGC), Argentina quoted $329 a tonne last weekend, while Brazil offered maize at $364 and the US at $363 (f.o.b) free on board. Currently, benchmark corn futures on the Chicago Board of Trade are ruling at $7.44 a bushel ($292.83 a tonne). “We shipped 250 tonnes of maize to Hong Kong some time back, but after that demand has been lukewarm,” Prakash said.  “There are still some varieties of maize being shipped to Vietnam and Indonesia. A lot of maize is going to Bangladesh by road,” said VR Sagar, Director, Bulk Logix. Bengani and Singh concurred with his views. “Some exporters are expecting prices to increase to $420-430 and are holding off,” Sagar said. 

    Exports feasibility

    Maize is one of the agricultural products whose exports have been good this fiscal, increasing by over 30 per cent in the first 10 months. According to the Agricultural and Processed Food Products Export Development Authority (APEDA), the export of other cereals, in which maize plays a major part, was 3.16 million tonnes (mt) valued at $1.74 billion during April-January this fiscal against 2.37 mt valued at $527 million in the year-ago period. MuBala’s Singh said maize exports were feasible as long as prices were around ₹1,700-800 a quintal in the domestic market. Until December, Bangladesh was the top buyer purchasing 1.25 mt, while Vietnam purchased 0.95 mt. “In view of the high prices, there is good demand for 100 per cent broken non-sortex rice that is commanding a higher price,” said Prakash. The non-sortex rice will have yellow and black coloured grains.

    Chinese purchase

    “Even broken rice prices are now quoted near maize prices as there is a shortage,” said Sagar. Broken rice are commanding ₹2,100 a quintal and more. An exporter from Bengaluru said 100 per cent broken rice prices were at par with 25 per cent broken white rice. As per IGC data, 25 per cent broken rice price last weekend were $349 a tonne.  According to APEDA data, China, which began importing Indian rice in the last fiscal after over three decades, bought 1.1 mt of rice during the April-December period of the current fiscal and Vietnam 0.6 mt. In October, the US Department of Agriculture said broken rice accounted for 97 per cent of India’s rice exports to China during January-August last year.  “Broken rice has always been going to China and Vietnam over the last couple of years. This year, there is a shortage now,” Sagar said. “Exports of broken rice could also be a problem in view of the surge in price. We could manage when prices ruled at around ₹1,600-700,” he said, adding that the issue now was the grain’s availability.  China began buying broken rice from India to use it as feed after corn prices surged last fiscal. Also, Beijing is required to build feed inventories as part of its plans to increase the production of pigs. Singh said it takes time to accumulate broken rice quantity for exports as they are done in bulk.   A Delhi-based trade consultant said most of the broken rice was heading from the east coast ports such as Kakinada and Kolkata to Vietnam and Indonesia.  “Maize prices will begin to decline once the arrival of the rabi crop beings,” Bengani said.  “Rice prices will begin tapering off once Rabi arrivals begin. This will  happen around mid-May,” said Sagar. 

    Freight advantage

    Delhi-based exporter Rajesh Paharia Jain said India has freight advantage to export to China, the Netherlands and South Korea, which had been buying from Ukraine before the conflict intensified. “It is a win-win situation for India after the Russian-Ukraine crisis. As India has a freight advantage of $70-80 a tonne and Chinese demand is up, it would be favourable to India. India maize export share to China might improve,” he said, adding that the coarse cereal exports might increase by 5-7 per cent in 2022-23.
     
  • Broken rice: Centre can tap global demand

  • Hyderabad: The union government’s stubborn attitude in refusing to procure the Yasangi paddy harvest from Telangana can only mean two things – that it stands completely exposed in understanding the global market needs or it is guilty of wilful rejection of the State’s genuine pleas. There has been a growing demand for broken rice in the international market in the recent past, which shot up manifold on account of the Russia-Ukraine conflict due to severe shortage of maize that Ukraine produces and supplies to the world. Subsequently, many countries including China, Indonesia and Vietnam have completely switched over to broken rice for animal feed. According to the latest report of the International Grains Council as well as Agricultural and Processed Food Products Export Development Authority (APEDA), the export price of maize presently is around Rs 2,200-Rs 2,500 per quintal against the MSP of Rs 1,870 per quintal. Given the shortage of maize, the price of broken rice has surged to Rs 2,100 per quintal in the international market. Interestingly, China and Vietnam are the largest importers of broken rice from India. According to APEDA data, China started importing Indian rice in the last financial year. A report of the US Department of Agriculture says broken rice accounted for about 97 per cent of India’s rice exports to China during January-August last year. If the BJP government had done its homework on international market needs instead of having a face-off with the Telangana government, the issue of procurement of Yasangi paddy crop would have been resolved by now. Telangana presents a golden opportunity for import of broken rice since one of the issues is that the Yasangi paddy crop, when milled, leaves substantial residue of broken rice. Paddy was cultivated in about 38.5 lakh acres in Telangana during the Yasangi (Rabi) season which in turn is expected result in a yield of 70 lakh tonnes of paddy. Setting aside the age-old practice of paddy procurement, the Centre has been insisting that the Telangana government get the paddy milled into raw rice before procurement. The State government explained that this could result in broken rice due to severe climatic conditions prevailing in the State during summer. The Telangana government suggested that the Centre purchase the paddy and get it milled as per its requirements rather than insisting on supplying only raw rice. The State government also pointed out that the Centre was expected to pay MSP for paddy and not raw rice or broken rice. The present scenario presents a win-win situation for both the Centre and the State, but will the BJP government seize the opportunity or will it stick to its narrow political agenda is the million dollar question.  
  • Japanese rice overcomes price barrier to log record exports

  • Exports to Singapore and Hong Kong up about 30% in 2021 TOKYO -- Despite the high asking price, Japan's rice exports rose by double digits to a new record in 2021 as demand for Japanese food boomed amid coronavirus-era travel restrictions. A Japanese yakitori restaurant at a Singapore shopping mall has created buzz for its takeout bento meals. They use Japanese-grown rice supplied by Osaka-based farm machinery manufacturer Kubota. The bentos caught on in Singapore as more consumers avoided eating out during the pandemic. "Demand for takeout is strong," a Kubota export manager said. "Japanese rice is made for bento, since it doesn't harden or easily lose flavor even when it's cold." Japan's rice exports, excluding for foreign aid, increased 15% to 22,833 tons in 2021. Sales of commercial Japanese rice to conveyor-belt sushi eateries and Japanese restaurants increased, particularly in Asian countries reopening their economies. Exports to Singapore soared 35%. Kubota overall exported 5,206 tons to Singapore, Hong Kong and other markets, up 30% or so. High-end Japanese rice has been a focus of exporting since the early 2000s, targeting wealthy consumers and gift purchases. About 90% of the global rice trade involves long-grain varieties. For Hong Kong, the top importer of Japanese rice, approximately 70% of the rice is long-grain and about 30% is medium- or short-grain. Japanese rice is estimated to languish at 3% or so of Hong Kong's market. Among medium- or short-grain rice, products from California and China are mainstream. Rice exports grew for 14 straight years from 2007. Prices in 2021 were less than half of 2007 levels but still around 20% above those for California-grown rice. Price is the biggest barrier to Japan increasing its presence in the export market for rice. Cooking it the Japanese way comes next. A Hong Kong curry chain that uses Japanese-grown rice from Kubota found that it did not taste the same every time. After receiving an inquiry from the chain, Kubota manager Takushi Suminaka found that staffers were putting rice and water into rice cookers by eye. Kubota and another Japanese company co-developed equipment to automatically wash and cook the rice. Kubota offered it to the chain with the rice itself. The chain won rave reviews from customers after installing the equipment. "The rice itself has flavor and is tasty," a guest said.
  • Rice millers to min: Stop pilferage of paddy

  • Chandigarh: Punjab food, civil supplies and consumer affairs minister Lal Chand Kataruchak on Saturday said a policy catering to the interests of rice millers would be formulated soon “Transparency would be the hallmark of my working,” he said as representatives of Punjab Rice Millers Association (PRMA) met the minister at his office on Saturday. PRMA representatives, led by their organisation’s chief and All India Rice Miller Association president Tarsem Saini, also made a case for stopping the pilferage of paddy, which is stored in rice mills for custom milling, as this causes a huge loss to the state exchequer. Distribution of paddy amongst rice millers must be fair and equitable besides representation should be given to rice industry in the the district allotment committees, demanded the association delegation. The minister assured the delegation of all cooperation to the rice milling sector. The delegation included representatives of the Rice Miller Association from Patiala, Sangrur, Ludhiana, Bathinda, Ropar, Mansa, Fatehgarh Sahib and Gurdaspur.
     
     
     
  • China provides 2,000 tons of rice as emergency food aid to Sri Lanka

  • COLOMBO, March 26 (Xinhua) -- China decides to provide 2,000 tons of rice as emergency food aid to Sri Lanka, said the Chinese embassy here in a press release on Friday. The donation, which was valued at about 2.5 million U.S. dollars (including freight cost), was made at the request of the Sri Lankan government upon its current difficulty of food shortage in the island country, according to the embassy. As the continuously raging COVID-19 pandemic and the dramatically changing international situation have further worsened the global food shortage and shipping capacity, the technical teams from both countries will work closely to finalize the production and shipment arrangements, and deliver the aid to Sri Lanka at an early date, said the embassy. Noting that this year marks the 65th anniversary of diplomatic relations between China and Sri Lanka and the 70th anniversary of the signing of the Rubber-Rice Pact, the Chinese embassy said the two countries have traditionally helped each other and shared weal and woe. China will continue to support Sri Lanka's social and economic development within its capacity, the Chinese embassy added.
  • Pakistan Asks China to Enhance Rice Quota to 2 Million Tons

  • Pakistan has asked China to enhance the rice quota to two million tons. Sources told ProPakistani that Pakistan, during the tour of Prime Minister Imran Khan last month, asked China not only to support duty concessions but for quota enhancement in specific sectors including rice. Pakistan has exported rice worth $2.1 million to China in the first seven months of the current fiscal year 2021-22 whereas it exported rice worth $2.29 million to China in the same period the previous year. Sources said that Pakistan has also asked China to abolish the 4 percent duty on the export of cement. Pakistan can get the duty-free concession of exporting cement to China after 3 years under the Free Trade Agreement (FTA-II). Sources further said that this will help offset part of the trade deficit which has surged to $32 billion in the first eight months of the current fiscal year. They said that Pakistan has also asked China to expedite the process of mutual recognition agreements on agriculture and animal products. Apart from this, Pakistan has also asked the tariff liberalization to be done by 10 and 20 years from seven to 15 years under CPFTA-II respectively. Similarly, Pakistan has also asked China for an uninterrupted bilateral opening of the Khunjrab border for trade. Sources said that the Ministry of Commerce is waiting for the response of China on these proposals.  
  • Adani Wilmar plans acquisition of brands and processing units in mass rice segment

  • Country's largest commodity company Adani Wilmar is betting big on staples and scouting for acquisition of regional rice brands and processing units in several states of the country, a top company official said. The company will launch branded daily-use rice under the fortune brand beginning with West Bengal from early April. Staple is just 11 per cent of the company's topline. Adani Wilmar had acquired a sick rice processing unit in West Bengal to mark the journey in the segment which is 30-35 million tonne per annum in size.
     "We are targeting to grow fast in the daily-use rice segment which is 30-35 million tonne per annum apart from public distribution foodgrain. We are scouting for acquisitions of brands and rice processing units in several states for fast growth. We have done first from West Bengal taking over a sick unit," Adani Wilmar MD & CEO, Angshu Mallick told PTI.
    Acquisitions allow quicker rollout and rapid growth. Greenfield will take at least two years to begin operation, he said. "We are already into Basmati but it is only 10 per cent of rice consumption so we cannot ignore regional local rice used for daily consumption which is a huge untapped market," Mallick said. "We will launch packaged local rice based on regional preference. In Bengal, we will launch Baskati and miniket rice which is common here. Sona masuri in Uttar Pradesh and Kolam rice in South India," he added. The company which hit the capital market recently had earmarked Rs 450-500 crore for acquisition and atta and rice is major focus area in the staples segment.
    Adani is scouting for more rice units and brands in North India and South India. "We will ideally have one unit each in states first and then gradually scale up. We will procure paddy from farmers, mandis and brokers," Mallick said. Adani Wilmar has 22 own factories in total and has sourcing arrangement products from 28 more plants across the country.
    Staple contributes 11 per cent to Adani Wilmar's topline while the rest is from edible oil and industry essentials. "We are aiming at 30 per cent growth in the food segment and 6-7 per cent in edible oil in volume terms," Mallick said. The company was also looking at inorganic space to expand its food basket.
    The company reported a 66 per cent rise in its Q3 consolidated net profit at Rs 211 crore as compared to Rs 127 crore in the year-ago quarter. The company's revenue from operations rose over 40 per cent to Rs 14,379 crore from Rs 10,229 crore in the same quarter last year.
     
  • INDONESIA TARGETS LOWER RICE, CORN OUTPUT IN 2023 – AGRI MINISTER

  • JAKARTA, March 22 (Reuters) - Indonesia's agriculture minister, Syahrul Yasin Limpo, told a parliamentary hearing on Tuesday: * Indonesia set its 2023 production target for unhusked rice at 56.08 million tonnes * The corn production target was set at 23.21 million tonnes * Next year's target is lower than the 2022 target at 57.5 million tonnes for unhusked rice and 26 million tonnes for corn. * In the January-April period of 2022, Indonesia's statistics bureau estimated unhusked rice output of 25.40 million tonnes, up 7.7% from the same period a year earlier. (Reporting by Bernadette Christina Munthe; Editing by Martin Petty)
  • Don’t blame us for quality of rice, say ration shop workers

  • Cooperative department recently  declared that shop supervisors are responsible for poor quality of rice supplied in ration outlets. Stocks of various varieties of turmeric piled up at the Nizamabad Agriculture Market Yard (NAMC), where prices of the crop have begun going up COIMBATORE: Ration shop employees said that the cooperative department must ensure the quality of rice and should not make supervisors responsible for it. Cooperative department recently  declared that shop supervisors are responsible for poor quality of rice supplied in ration outlets. President of Tamil Nadu Government Fair Price Shop Employees Association, G Rajendran, said, “State Registrar of Cooperative Department said the supervisors must check  the goods that are being delivered to the outlet from the civil supplies department and ensure quality rice is distributed to the card holders. However, supervisors cannot return the items if they find them to be of poor quality.”
     
    “Tamil Nadu civil supplies corporation procures paddy from farmers and they allot it to ration shops as per requirement after their staff assess its  quality. If the goods are unloaded at the outlets and found to be of low quality,  supervisors should get permission from Tahsildar of Civil supplies to return them, which takes time and may delay distribution. So, making supervisors responsible for good quality rice distributed in the outlets  is not correct,” he added
  • Asia rice: Vietnam prices hit 3-month peak on firm demand

  • BENGALURU/BANGKOK/HANOI/MUMBAI/DHAKA: Export prices of rice from Vietnam climbed to a three-and-a-half-month high this week on steady demand and elevated shipping costs, which dissuaded some traders from signing new contracts. Vietnam’s 5% broken rice were offered at $415-$420 per tonne on Thursday, compared with $410-$415 a week ago. “Demand is stable, but traders are hesitant to sign new contracts due to high shipping costs,” a trader based in Ho Chi Minh City said, adding outbound shipping costs have risen significantly since the beginning of the Ukraine-Russia crisis. “We are hearing the Philippines may soon lift its limit on rice imports from Vietnam,” another trader said. Philippines, Vietnam’s largest rice buyer, in November took steps to temporarily limit imports of the grain from Vietnam amid a big harvest at home. Thailand’s 5% broken rice prices fell slightly to $410-$428 per tonne from $415-$428 a week ago, their highest since late June. “The baht has weakened and domestic prices are seen easing in the coming weeks due to new supply,” one trader said. There is still strong demand for low-quality rice from domestic feed mills, which are looking to use more rice in their animal feed mix as prices of wheat and corn rally, traders said. However, foreign demand remained largely muted, except for exporting activities to Iraq, they said. Top exporter India’s 5% broken parboiled variety was quoted at $371 to $378 per tonne, unchanged from the last week, as demand remained strong for broken grades for feed purposes. “Broken rice is in demand. Feed makers are replacing corn with 25% and 100% broken rice,” said an exporter based at Kakinada in southern state of Andhra Pradesh.
  • Prices rise across major hubs on higher demand for rice

  • Prices of rice exported from top Asian hubs jumped this week on solid demand, while Vietnamese traders also flagged high shipping costs due to the Ukraine crisis. Thailand's 5% broken rice prices rose to $415-$428 per tonne, on average a peak since late June, from $400-$403 a week ago. As corn and wheat prices rise, animal feed makers were looking to use more broken rice, pushing up prices across the board, Bangkok-based traders said. Another trader said he recently received interest from buyers in Europe, the United States, Iraq and Iran for different grades of Thai white rice. Demand from Hong Kong has also increased, the trader said, with concerns over plans for a city-wide lockdown sparking panic buying by residents. Thailand exported 459,752 tonnes of rice worth $234 million in January, up 8.92% from the same period last year, the commerce ministry said. Rates for top exporter India’s 5% broken parboiled variety rose to $371-$378 per tonne from last week's $370-$376, also a peak since mid-June. "Consumers are trying to build stockpile due to the rally in wheat and corn prices. Demand is improving for rice," said an exporter based at Kakinada in southern state of Andhra Pradesh. Vietnam's 5% broken rice prices rose to their highest since December at $410-$415 per tonne on Thursday, versus $400 last week, amid higher demand, traders said, with the Ukraine-Russia conflict prompting buyers to place more orders from elsewhere in Asia. Another trader said shipping costs had surged since the Ukraine-Russia conflict began, with international freight costs rising 50% and domestic freight costs climbing 70%-80%. "We're concerned costs will keep rising if the conflict continues," the trader said. Traders said farmers in the Mekong Delta had harvested 20%-25% of the winter-spring crop. Domestic rice prices in Bangladesh remain high despite good crops and reserves, traders said, adding that the global market was seeing a hike due the Ukraine-Russia conflict. "It is very much unlikely that local prices will come down soon," a trader said.
  • Biryani plate becomes dearer as rice prices go up

  • The mouth-watering biryani is being packed in a plastic tub at an outlet. (Right) A rice shop in Jodia Bazaar.—Fahim Siddiqi / White Star KARACHI: The retail prices of various varieties of rice have been increased by up to Rs40 per kilo almost a month before Ramazan. Traders claim that the prices have been raised due to rise in exports and high transportation cost. The retail price of medium quality basmati is now Rs200 as compared to Rs160 per kg while normal basmati is selling at Rs150-160 instead of Rs120-130 per kg. Premium basmati is now priced at Rs250 per kg. A biryani shop owner said he had to pass on the impact of price hike of at least Rs10 per plate to customers as he was compelled to procure basmati Sella rice at Rs20-30 per kg higher rate from wholesale markets. He said he sold a biryani plate at Rs130. “Some other outlet owners are selling at Rs140 per plate depending on the area.” In bigger food shops, premium basmati rice biryani (double plate) is being sold at Rs300-330 and single plate at Rs170-200. While it is not easy for a buyer to judge the quality of rice in biryani, traders and biryani restaurants take full advantage of this ignorance by mixing various varieties. General secretary of the Karachi Retail Grocers Group (KRGG) Farid Qureishi said that price jump in basmati and other varieties of rice was not a matter of concern for the rich who continued to buy expensive commodities without any problem in higher quantities for monthly consumption. He said, however, the lower and middle income groups, who are hit hard by rising food inflation and utility bills, had been limiting their buying as per their requirement. A member of the Rice Exporters Association of Pakistan (REAP), Anis Majeed, said that despite a drop in transportation cost after Rs10 reduction cut in fuel rates on March 1, rice prices had been soaring owing to previous massive hikes in transportation cost because of diesel and petrol rates. He said exports were in full swing, thus putting pressure on local prices despite the fact that exports were made at a very low wholesale rates. Rupee devaluation against the dollar is certainly benefiting exports. Pakistan’s rice production is over seven million tonnes per annum in which exports have been hovering between 3.5 and four million tonnes while the rest is consumed domestically. Export destinations are Europe, Gulf countries, Australia, US, China, African countries, the Far East, etc. According to figures of the Pakistan Bureau of Statistics, basmati exports rose by 41pc and 414,190 tonnes of rice were exported in seven months of fiscal year 2022 from 293,761 tonnes in the same period of the last fiscal year. In terms of value, it is a jump of 28per cent, i.e., $362 million from $282 million. Other varieties of exports grew by 13pc, 2.138m tonnes from 1.886mn tonnes, while it went up by 5.56pc in terms of value, $924mn from $876mn, in seven months of fiscal year 2021. Mr Anis said due to massive hike in freight rates and lack of availability of shipping containers, rice exporters had chartered two to three bulk vessels destined for African countries in the last three months to load rice cargo in these vessels. Each vessel had carried 35,000-40,000 tonnes of rice. Besides, demand from China for Pakistani rice also remained high. In financial year 2021, export of other varieties had plunged to 3.062 million tonnes fetching $1.465 billion as compared to 3.3 million tonnes valuing $1.39bn in FY20. Basmati exports earned $575 million from 629,069 tonnes in FY21 from 865,949 tonnes earning $783mn in FY20. Rice exports in FY21 remained subdued due to low price offered by India for non basmati and higher freight charges from October 2020 amid Covid-19 pandemic. However Chinese buying of Pakistani non basmati rice kept the exports moving.
  • ASIA RICE Prices rise across major hubs on higher demand for rice

  • March 10 (Reuters) - Prices of rice exported from top Asian hubs jumped this week on solid demand, while Vietnamese traders also flagged high shipping costs due to the Ukraine crisis.

    Thailand's 5% broken rice prices rose to $415-$428 per tonne, on average a peak since late June, from $400-$403 a week ago.

    As corn and wheat prices rise, animal feed makers were looking to use more broken rice, pushing up prices across the board, Bangkok-based traders said.

    Another trader said he recently received interest from buyers in Europe, the United States, Iraq and Iran for different grades of Thai white rice.

    Demand from Hong Kong has also increased, the trader said, with concerns over plans for a city-wide lockdown sparking panic buying by residents. 

    Thailand exported 459,752 tonnes of rice worth $234 million in January, up 8.92% from the same period last year, the commerce ministry said.

    Rates for top exporter India’s 5% broken parboiled variety rose to $371-$378 per tonne from last week's $370-$376, also a peak since mid-June.

    "Consumers are trying to build stockpile due to the rally in wheat and corn prices. Demand is improving for rice," said an exporter based at Kakinada in southern state of Andhra Pradesh.

    Vietnam's 5% broken rice prices rose to their highest since December at $410-$415 per tonne on Thursday, versus $400 last week, amid higher demand, traders said, with the Ukraine-Russia conflict prompting buyers to place more orders from elsewhere in Asia.

    Another trader said shipping costs had surged since the Ukraine-Russia conflict began, with international freight costs rising 50% and domestic freight costs climbing 70%-80%.

    "We're concerned costs will keep rising if the conflict continues," the trader said.

    Traders said farmers in the Mekong Delta had harvested 20%-25% of the winter-spring crop.

    Domestic rice prices in Bangladesh remain high despite good crops and reserves, traders said, adding that the global market was seeing a hike due the Ukraine-Russia conflict.

    "It is very much unlikely that local prices will come down soon," a trader said.

  • Rice could keep Asia’s food inflation risks from getting worse

  • Russia’s invasion of Ukraine has delivered a global-scale disruption that is set to cascade through food supply chains and worsen hunger, but Asia’s love for rice could limit the fallout. Rice is more popular with many Asian consumers than wheat, which has seen supplies cut off from one of the world’s breadbaskets, said Jules Hugot, an economist at the Asian Development Bank. Rice prices have been relatively stable, and it’s easy to swap one staple for the other, he said. “These are sources of starch and there’s substitution between them,” Hugot said in an interview, though adding there’s spillover from the rally. Wheat has jumped to an all-time high, while rice is near the highest since May 2020. Russia and Ukraine together account for a quarter of the global trade of wheat, used in everything from bread to noodles and livestock feed. The conflict shuttered ports in Ukraine while trade with Russia has been stifled by sanctions. The elevated prices are accelerating food inflation across the world and raising concerns for countries reliant on foreign supply. Asian buyers should be able to find alternatives for trade flows disrupted by the war, Hugot said, citing the examples of wheat from Kazakhstan and palm oil from Southeast Asia to replace Black Sea shipments of sunflower oil. “It is possible to diversify as these are homogeneous goods,” he said. Food inflation is relatively contained in Asia, thanks to the popularity of rice and falling pork prices as China expands the world’s biggest hog herd. Supply chains have also become more resilient following the pandemic and nations are pursing diversification as a strategy to bolster food security, Hugot said. Less clear is how long the disruptions will last. There are already expectations the invasion will deter Ukrainian spring planting of crops like corn and sunflower, extending the supply shock on the global market. It’s also putting fresh pressure on skyrocketing fertilizer prices. India relies heavily on imports, and disruptions to trade flows from Russia — an important global producer for all major fertilizers — is bound to have a significant impact on the South Asian nation, Hugot said. Rising costs for farmers could spur a scaling back of fertilizer use, triggering lower crop yields and pushing up food prices even higher. Developing nations such as India will feel the strain as food tends to make up a higher share of spending and the consumer price index, said Hugot.
  • Odisha government to work on export plan for aromatic rice

  • The State government is exploring the possibility of exporting rice of traditional aromatic varieties beyond basmati to further enhance the income of the farmers. PDS rice BHUBANESWAR:  The State government is exploring the possibility of exporting rice of traditional aromatic varieties beyond basmati to further enhance the income of the farmers. The Agriculture and Farmers’ Empowerment department has been asked to constitute a resource team and frame a realistic work plan for giving a boost to rice export. Chairing a high-level meeting with different stakeholders for promoting export of rice from the State, Chief Secretary Suresh Mahapatra asked the Agriculture department to identify agro-climatic zones more suitable for cultivation of non-basmati aromatic varieties of paddy in cluster approach. The government has decided to send a team to Andhra Pradesh for gaining firsthand knowledge on the actual practices adopted there in export of aromatic varieties of rice. The Chief Secretary directed the department to frame a realistic work plan with the suggestions from technical sessions of the seminar, and inputs from the resource team so that those could be carried forward. “The State government is committed to enhance farmers’ income by boosting the rice export and the State will provide all possible support for the purpose,” Mahapatra added. Principal Advisor to Chief Minister Asit Tripathy said the rice aggregators in the State need to be mobilised, trained and given handholding support for export-oriented operations.  
  • Asia rice: Vietnamese rates gain as China routes reopen post Covid curbs

  • BENGALURU/BANGKOK/HANOI/MUMBAI/DHAKA: Prices of rice exported from Vietnam rose this week, as trade routes to China reopened with some traders betting on additional demand from buyers looking for alternate sources due to the Ukraine crisis. Vietnam’s 5% broken rice were offered at $400 per tonne on Thursday, versus $395-$400 a week ago. “Shipments to China are expected to increase as China is reopening borders with Vietnam after coronavirus curbs,” a trader in Ho Chi Minh City said. “The ongoing Ukrainian war might prompt buyers to import more rice from Asia, including Vietnam,” the trader added. A Bangkok-based trader said the situation in Ukraine “might have increased freight rates slightly.” Prices of Thailand’s 5% broken rice widened slightly to $403-$400 per tonne from $400 last week, also taking cues from currency fluctuations with the baht valued at 32.60 against the US dollar on Thursday. But another trader said the crisis has not impacted Thai rice exports because neither Russia nor Ukraine were among its main trading partners. Ukraine’s military recently suspended commercial shipping at its ports, threatening grain and oilseed exports. Demand for rice from top exporter India improved, but prices of its 5% broken parboiled variety were unchanged at $370-$376 per tonne as the rupee weakened, translating into higher margins for traders from overseas sales. “Demand for broken rice has improved as prices of corn are rising. Some buyers are looking for alternatives to corn,” said an exporter based at Kakinada, Andhra Pradesh. Indian farmers may harvest a record 127.93 million tonnes versus 124.37 million tonnes the year before. Meanwhile, domestic rice prices stayed high in Bangladesh, despite good reserves, officials said.Freight rates have increased slightly due to the Ukraine crisis, prompting higher import costs for grains, a trader said.
  • ASIA RICE Vietnamese rates gain as China routes reopen post COVID curbs

  • March 3 (Reuters) - Prices of rice exported from Vietnam rose this week, as trade routes to China reopened with some traders betting on additional demand from buyers looking for alternate sources due to the Ukraine crisis.

    Vietnam's 5% broken rice were offered at $400 per tonne on Thursday, versus $395-$400 a week ago.

    "Shipments to China are expected to increase as China is reopening borders with Vietnam after coronavirus curbs," a trader in Ho Chi Minh City said.

    "The ongoing Ukrainian war might prompt buyers to import more rice from Asia, including Vietnam," the trader added.

    A Bangkok-based trader said the situation in Ukraine "might have increased freight rates slightly."

    Prices of Thailand's 5% broken rice widened slightly to $403-$400 per tonne from $400 last week, also taking cues from currency fluctuations with the baht valued at 32.60 against the U.S. dollar on Thursday.

    But another trader said the crisis has not impacted Thai rice exports because neither Russia nor Ukraine were among its main trading partners.

    Ukraine's military recently suspended commercial shipping at its ports, threatening grain and oilseed exports.

    Demand for rice from top exporter India improved, but prices of its 5% broken parboiled variety were unchanged at $370-$376 per tonne as the rupee weakened, translating into higher margins for traders from overseas sales.

    "Demand for broken rice has improved as prices of corn are rising. Some buyers are looking for alternatives to corn," said an exporter based at Kakinada, Andhra Pradesh.

    Indian farmers may harvest a record 127.93 million tonnes versus 124.37 million tonnes the year before.

    Meanwhile, domestic rice prices stayed high in Bangladesh, despite good reserves, officials said.

    Freight rates have increased slightly due to the Ukraine crisis, prompting higher import costs for grains, a trader said.

  • Admin helps farmers grow aromatic rice in Simdega

  •   Gumla: Simdega administration has rolled out an innovative project to help farmers grow scented rice, package their products and sell them under its Kurdeg rice brand. Kurdeg is a block in the district which is known for its rice cultivation. Titled as aromatic rice bowl project, officials said that the idea is to help the farmers get proper market linkage of their products. “Around 1,000 fathers from 11 blocks in the district were provided seeds of traditional aromatic rice varieties, like kala jeera, jeera ful, gobind bhog, bhukta, mansuri and sambha mansuri, for cultivation. Over the period of time, canals were renovated and others methods of irrigation have been made operational to ensure water supply for irrigation,” said an official. A semi-automatic rice mill has been installed for value addition and it will start milling soon. Officials said that a farmers’ producer organization named Sankh Aroma Trust has been set up for overall operation of rice milling, packaging and branding. The project is the brainchild of Sushant Gaurav, who served as DC of Simdega until last week before his transfer. Speaking to TOI on the project before his transfer, Gaurav said, “A high percentage of population here depends on farming but it is mainly dependent on rainfall. The district administration identified the potential of adding value to the produce and hence, the project was initiated.”
  • INDONESIA’S 2021 UNHUSKED RICE OUTPUT AT 54.42 MLN TONNES

  •           JAKARTA, March 1 (Reuters) - * Indonesia produced 54.42 million tonnes of unhusked rice in 2021, down 0.43% from a year earlier, data from the country's statistics bureau showed on Tuesday. * A total of 10.41 million hectares of rice plantation area were harvested last year, down 2.3% from 2020 due to natural disasters in some production centres. * The government was short of its targeted unhusked rice output of 58.5 million tonnes in 2021. * In January-April 2022, the statistics bureau estimated unhusked rice output of 25.40 million tonnes, up 7.7% from the same period a year earlier.
  • Rice Prices In Iran Double In One Year Amid General Inflation

  • A rice field in Iran. Undated   The price of Iranian rice, the main food staple in the country, has increased over 95 percent in one year, a government reporting agency has said.
    According to the latest report released by Statistical Center of Iran (SCI)on Monday, the price for one kilogram of Iranian rice in the month of Bahman (ended on February 20) increased by about 20 percent compared with the previous month, and 95 percent compared with a year ago. The report said the price reached 760,000 rials (about $3), showing a 95.3-percent rise compared to the same period last year. The price reported by SCI is way lower than the actual price in the market, which is nearly 1,000,000 rials (about $4), which means the real increase in the price of rice is closer to 200 percent. With only a few weeks left until the new Iranian year on March 20, prices of essential food items are still rising at alarming levels, local media report. Food prices have been rising much faster than the general inflation rate -- hovering around 40 percent -- with government figures showing above 60-percent inflation at retail level in 2021, compared with 2020. Sugar and different types of rice are usually items with highest price increases followed by different kinds of meat, chicken and eggs as well as cooking oil.
  • Rice Price to Stabilize on Adequate Supply

  • Rice Price to Stabilize on Adequate Supply and Low-Cost Shipments from India rice This year, rice prices are forecast to ease, thanks primarily to rising production and exports from India, Thailand, Vietnam, China, and Pakistan. India dominates global trade, more than doubling its supplies at a competitive cost over the past two years. Rice prices are predicted to drop this year with sufficient supply worldwide, a new report published by IndexBox states. According to USDA data, global milled rice production is forecast to remain stable, totalling 510M tonnes. World’s total exports will reach 51M tonnes, which includes paddy, milled, semi-milled and broken rice, staying at the previous year level. Sufficient exports from Thailand, Vietnam, China, Pakistan, and low-cost rice supplies from India are set to provide price stability this year. According to the World Bank forecast, the average price for white rice from Thailand (5% broken, FOB, Bangkok) will drop by 12% y/y to near $400 per tonne in 2022. Last year, the prices for Thailand’s rice fell by approx. 8% y/y, while Vietnamese white rice (5% broken, FOB, Hanoi) rose in price by 4% y/y to $446 per tonne. India dominates global trade, boosting total rice exports twofold to over 20M tonnes during the past two years. Due to increasing Minimum Price Support (MSP) for rice, India managed to sharply expand the harvested area and ramp up output and exports, offering the product at competitive prices on the global market. India has also invested massive funds in its deep-water ports to ship in bulk in addition to the typical containers. Global Rice Exports by Country Global rice exports were estimated at 46M tonnes in 2020, rising by 9.8% on the previous year. In value terms, supplies expanded notably to $25.2B (IndexBox estimates). India represented the major exporting country with an export of around 15M tonnes, which accounted for 32% of total exports. It was distantly followed by Thailand (5.7M tonnes), Viet Nam (5.6M tonnes), Pakistan (4M tonnes), the U.S. (3.3M tonnes) and China (2.3M tonnes), together constituting a 45% share of total exports. Myanmar (2M tonnes), Brazil (1.4M tonnes), Uruguay (1M tonnes), Paraguay (0.9M tonnes), and Italy (0.8M tonnes) occupied a minor share of total exports. In value terms, India ($8B) remains the largest rice supplier worldwide, comprising 32% of global exports. The second position in the ranking was occupied by Thailand ($3.7B), with a 15% share of global exports. It was followed by Viet Nam, with an 11% share. From 2018 to 2020, the average annual growth rate in terms of value in India amounted to +4.2%. In the other countries, the average annual rates were as follows: Thailand (-18.7% per year) and Viet Nam (+3.2% per year).
  • Asia rice: Thai rates slip on weak baht; India’s demand

  • BENGALURU/HANOI/ BANGKOK/MUMBAI/DHAKA: Rice export prices in Thailand fell to an over 1-1/2 month low this week due to a weaker baht, while an uptick in overseas buying boosted rates in leading exporter India. Thailand’s 5% broken rice prices were quoted at $400 per tonne this week, down from $410-$420 a week ago. The baht weakened to 32.68 against the US dollar on Thursday, or by nearly 1.6% from a week ago and 1.3% from Wednesday, following Russia’s invasion of Ukraine. “Prices eased in line with the baht weakening, which is an effect of Russia’s invasion,” a Bangkok-based trader said, adding that domestic rice prices still remained stable. India’s 5% broken parboiled variety was quoted at $370 to $376 per tonne this week, up from the last week’s $368 to $374. “Despite the depreciation in rupee, exports prices are moving higher. Demand is good from African and Asian buyers,” said an exporter based at Kakinada in southern state of Andhra Pradesh. Indian farmers are likely to harvest a record 127.93 million tonnes of rice against 124.37 million tonnes produced the year before. In neighbouring Bangladesh, domestic rice prices stayed elevated despite good crops and reserves, officials said. The country’s rice stock at government warehouses surged to 1.7 million tonnes this month, according to the data from the food ministry. Vietnam’s 5% broken rice were offered at $395-$400 per tonne, compared with $400 per tonne a week ago. “Importers are buying moderately, waiting for prices to fall when the winter-spring harvest peaks,” said a trader based in Ho Chi Minh City. “Exports will increase from next month, with the key markets being the Philippines and Africa,” the trader said. Preliminary shipping data showed 219,000 tonnes of rice is to be loaded at Ho Chi Minh City port in February, with most of the rice heading to the Philippines.
  • Pakistan’s Basmati rice exports up by 8.97%

  • Pakistan’s Basmati rice exports grew by 8.97% month-on-month to $58.086 million in January 2022, as compared with $49.161 million in January 2021, WealthPK reported. The country’s overall monthly rice exports declined by 8.40% and remained at $220.078 million in January 2022 compared with $240.264 million in December 2021, according to Pakistan Bureau of Statistics (PBS). The country’s overall food group exports in January 2022 were $471.500 million as compared with $533.565 million in December 2021, showing a decrease of 11.63%, reported WealthPK. On a year-on-year basis, food group exports increased by 14.31%  
  • Rice profits up around 15 pct

  • Major rice producers and exporters saw their after-tax profits last year increase around 15 percent against the previous year thanks to stronger domestic and overseas sales with higher export prices. Loc Troi Group JSC reaped the biggest-ever revenues of over VND10.2 trillion ($443.4 million) and after-tax profits of more than VND420 billion, up 36 percent and 14 percent, respectively. Vietnam National Seed Group JSC (Vinaseed) made revenues of over VND1.93 trillion and after-tax profits of more than VND225 billion, posting respective year-on-year rises of 18 percent and 16 percent. Both net revenues and after-tax profits of Trung An Hi-tech Farming JSC increased 15 percent to VND3.12 trillion and over VND100 billion. Vietnam exported over 6.2 million tons of rice totaling nearly $3.3 billion last year, according to the General Department of Vietnam Customs. The average export price of Vietnamese rice rose 5.5 percent against 2020 to $526.8 per ton in 2021, according to the Ministry of Agriculture and Rural Development. Loc Troi exported over 80,000 tons of rice worth over VND1 trillion, quadrupling in both volume and value against 2020. Vinaseed exported 60 tons of premium fragrant rice to the U.K. for the first time. Domestic sales also increased last year, partly due to social distancing measures imposed to curb Covid-19. Hoa Sen Rice told VnExpress its sales surged 45 percent in 2021. The Vietnam Food Association predicted Vietnam, which exported 505,700 tons of rice worth $246 million in January, would export over 6 million tons of rice this year. However, a sharp increase in prices of agricultural materials, especially fertilizers, will increase input costs and lowers farmer incomes.
  • Pakistan has potential of $4.5b rice exports

  • Pakistan has the potential of $4.5 billion rice exports, but currently, the exports stand at $2.1 billion, WealthPK reported. By taking pragmatic steps, Pakistan can improve its production and exports, according to Syed Fakhar Imam, Federal Minister for National Food Security and Research. The minister said in a statement that Pakistan’s total production of rice this season is 9 million tons. Pakistan’s domestic consumption of rice was 3.5 million tons in FY 2020-21. He said that with a total stock of 2.5 million tons from the previous year, Pakistan now has an export potential of 8 million tons. Globally, Pakistan is the fourth largest rice exporter and the 11th largest rice producer, WealthPK reported. Rice yields are 2.56 tons per hectare in Pakistan, but the world average is 4.7 tonnes per hectare, which shows there is a lot of room for improvement. During pre and post-harvesting, a large amount of rice is lost, WealthPK reported. Post-harvesting accounts for direct loss of rice physically and quality-wise that reduces the economic value of crop or makes it unsuitable for human consumption. Due to over-exposure to fluctuating temperature, a huge quantity of rice is cracked during threshing, causing rice breakage during processing (milling) and reducing its quality. Journal of Agricultural Research and Technology states that due to mismanagement, pest attack, and spoilage, almost 25 percent of rice is lost after harvest in developing countries. Different stages of rice crops and how it is wasted are described below, WealthPK reported. Technological innovation is an important factor in boosting agricultural output and reducing wastage. Developing countries like Pakistan lag in the latest/up-to-date technologies. Weak transportation and crop management system are important factors that increase the probability of rice wastages. Almost 95 percent of farmers own less than 12.5 acres of land.
  • Asia rice: Vietnam rates rise as activity picks up, India market subdued

  • SINGAPORE: Prices of rice exported from Vietnam rose to a two-month high this week as market activity picked up again following the holidays, while low demand kept Indian rates near a one-month low. Vietnam’s 5% broken rice was offered at $400 per tonne on Thursday, the highest since mid-December and up from $395 a week ago. “Prices have edged up slightly as trading activity is resuming following the Lunar New Year Holiday and demand is seen picking up,” a trader based in Ho Chi Minh City said, adding that traders were buying moderate amounts from farmers ahead of the upcoming winter-spring harvest. Some traders said they will be joining a tender issued by South Korea’s state-backed Agro-Fisheries & Food Trade Corp to purchase an estimated 72,200 tonnes of rice. Top exporter India’s 5% broken parboiled variety was unchanged at $368-$374 per tonne, holding near the lowest in more than a month as demand was muted from key buyers. “White rice buyers are shifting to Myanmar and Pakistan because of lower prices,” said a Mumbai-based dealer with a global trading firm. Indian farmers are likely to harvest a record 127.93 million tonnes, compared with 124.37 million tonnes the year before. Meanwhile, rain-fed rice output in neighbouring Bangladesh is expected to rise to 15 million tonnes this year, as farmers raised acreage to cash in on higher prices and favourable weather, according to the country’s Agriculture Ministry. But despite the good crops and reserves, Bangladesh has been battling high domestic prices of the staple. Thailand’s 5% broken rice prices were quoted at $410-$420 per tonne, up from $407-$415 last week, mainly due to a change in the exchange rate, traders said, with the baht having gained 1.7% versus the dollar from Feb. 11 till Thursday. But a Bangkok-based trader said prices could soon weaken as the off-season harvest begins.
  • No rice price hike during Ramadan, predicts food secretary

  • No rice price hike during Ramadan, predicts food secretary Food Secretary Dr Mosammat Nazmanara Khanum on Wednesday assured that the prices of rice would not increase during the upcoming holy month of Ramadan. She gave the assurance while talking to reporters at her Secretariat office. "I can assure you (journalists) that the prices of rice would not increase during Ramadan this year because the food-friendly programme of the government will start in March," Dr Nazmanara said. "As many as five million families would get 30 kg rice each under the programme. So there is no chance of rice price hike during the month of fasting," she added. Asked what would be the government initiative in case rice prices increase inevitably during Ramadan in line with the present high rate of the main staple, she said, "If we (government) see that situation, we would increase the number of open market sale (OMS) outlets." She asserted that the government always shows liberal attitudes as regards the food issues and it (the government) would start selling rice at increased volumes at subsidised rate in the open market. "And if necessary, the government is ready to import rice considering the interest of the consumers," she said. She, however, straightaway ruled out the possibility of rice import right now by the government. The country has now over two million tonnes of food stock in the public silos, she said. If the government takes move to import rice, the critics might through into question the government's claim of the present sufficient food stock in the country, she added. The United States Department of Agriculture (USDA) had earlier suggested that the government import rice though they expressed satisfaction at the country's overall food production, she said. "We (the government) don't want to import (rice)-- if we can fulfill our requirement within our means then it will be easier for us to establish that we are self-sufficient," she added. Even though there is a stock of over two million tonnes of food, millers are ready to sell rice to the government, she continued. "So prices of the coarse varieties of rice would not increase further; rather those would come down after arrival of the newly-harvested Boro, " she said. She expressed optimism that if any untoward situation dose not happen newly-harvested Boro rice would hit the market in April next that will help prevent further price escalation of rice. Admitting the present price spiral of different varieties of rice, she said it would be brought under control through increased supply (of rice). Prices of different varieties of rice in the market are now high. Coarse varieties of rice were selling at around Tk50 per kg while fine varieties at between Tk60 and Tk 65 a kg in the city's retail markets on Wednesday. talhabinhabib@yahoo.com
  • Pakistan’s rice exports to China increased 133% in 2021

  • Pakistan’s export of rice to China (HS Code 1006) crossed $400 million in 2021, up 133 percent year on year, and in the first five months of the last year once Pakistan remained the largest rice supplier to China. China Economic Net (CEN) reported this on Tuesday quoting official data from the General Administration of Customs of the People’s Republic of China (GACC). Commercial Counselor of the Pakistan Embassy Beijing Badar uz Zaman previously said that in the next few years, his target is to achieve one million tons of rice. He desires that Pakistan will become the largest player in this market. This year China imported about 973,000 tons of rice worth $437 million from Pakistan. The seven new Pakistan rice exporters have been added to the approved list which has risen to 53 last year, and China relaxed import restrictions on Pakistani rice which helped rice export to China. Commercial Counselor Badar uz Zaman told CEN that Pakistan has become the third-largest exporter of rice to China, added that they are using traditional and especially social media platforms to provide awareness about Pakistani rice in this market. “We are also in discussion with the Chinese government for the technology transfer of sea rice because huge saline land along the coastal districts can be used for rice cultivation. The Chinese have been successful in their experiments to use the saline land and we can learn this from China,” Badar added. This year semi or wholly milled rice (Commodity Code 10063020) crossed about $249 millio, increased 85% as compared to last year, which followed by broken rice (Commodity Code 10064020) reached $125 million, up 201% year on year. Badar further said that the number of Pakistani restaurants isincreasing in China that helped Pakistani Basmati rice improve exports here, and Middle Eastern restaurants like Lebanese and Turkish restaurants also use Basmati rice. Previously there was no presence of Basmati rice because Chinese normally like the other varieties of rice, but now the Chinesebuying power is being increased, and the tendency to use expensive products and special aromatic basmati rice will create a pull from the Chinese market. Miss Xie working as a manager in a Pakistani restaurant is amazed that more Chinese customers are coming to eat Basmati rice because it’s different from Chinese rice and it has a special fragrance. The grains remain separate after cooking. Asif Jalil, owner of Little Lahore a famous restaurant in China told CEN that Thai Jasmine rice is very popular here because they created the demand in the Chinese market and now, they are capturing & enjoying the market, he added Pakistan still needs to work hard to grab the whole market because the Chinese market is too big. “The quantity of Pakistani rice exported to China, at this moment does not represent the demand from the local consumers. It only tells that we let some of the consumers try Pakistani rice. When this export grows over a certain period, then basically, we will be able to see the number of returning consumers to rightly quantify the growth in demand for Pakistani rice,” he added. Pakistani rice exporters expressed that the shipping cost is too high due to COVID-19 and the price of rice in the domestic market goes up while the end-users are still buying on old rates. If they get subsidies or some incentives from the Chinese side, that would help increase much more exports of Pakistani rice to China. They also said that 1121 Basmati Rice has very high quality in Pakistan but the price of this type of rice is the same as Indian traders are getting in the Chinese market, while quality has a huge difference, adding that the Pakistani government needs much more effort to increase further exports of rice because China is a very big market. They also mentioned that right now IRRI-6, IRRI-9, semi or wholly milled rice and broken rice are the main varieties of rice that are exported to China while Basmati and other top varieties still need to work hard to capture the Chinese market. Federal Minister for National Food Security and Research (NFSR) Fakhar Imam said that last year Pakistan has the best rice production of around 9 million tons, which has helped Pakistan earn $4.75 billion from rice exports, and he expected that 2022 will break all record of rice production and exports. It is also worth mentioning that the latest color sorter machines (technology) and seeds given by China to Pakistan to facilitate the sowing and improvement of rice grains helped increase rice exports to China and also around the world.  
  • State goes slow on paddy purchase, milled rice delivery

  • BHUBANESWAR: Even as the farmers are crying foul over delay in procurement of paddy leading to lapse of tokens, the Odisha government is lagging behind in both purchase of paddy under minimum support price system and delivery of custom milled rice to the Food Corporation of India (FCI). In the ongoing kharif marketing season (KMS), the State government agencies have procured 36.33 lakh tonne of paddy under the decentralised procurement system as against 43.98 lakh tonne during the same period last year. 
     
    In the delivery of custom milled rice (CMR), the State is way behind last year’s achievement. As per FCI procurement data, the State has so far delivered 12,313 tonne of custom milled rice to the Central agency against the last year’s figure of 4.56 lakh tonne. However, the progress in milling rice for distribution under different food security schemes is comparatively better than last year. The Odisha State Civil Supply Corporation (OSCSC), the government agency mandated for paddy procurement and supply of rice under public distribution, has received over 2.87 lakh tonne of rice against 2.51 lakh tonne during the corresponding period last year. The total rice procurement till end of January 2022 was 2.99 lakh tonne against 7 lakh tonne last year. As the blame game over lifting of parboiled rice between the State and Centre continues, the rice millers who are benefitting the most out of it are going slow as they are not keen to supply raw rice to the FCI. “We have sufficient stock of parboiled rice in our warehouse. As FCI refused to lift parboiled rice from this kharif marketing season, there is hardly any space to accommodate paddy and rice at the same time,” said a rice miller from Western Odisha. The Department of Food Distribution and Consumer Affairs, Ministry of Food, had intimated the State government on August  3, 2021 that the FCI will not lift parboiled rice from Odisha from the next KMS (2021-22). The issue was raised by BJD MPs in the Rajya Sabha last week. The State government has targeted to procure 63 lakh tonne of paddy (nearly 42 lakh tonne rice) in the kharif season and 14 lakh tonne paddy (around 10 lakh tonne rice) in rabi season.  
  • From Plate to Plough: Fix rice farming to avoid a bumper emissions harvest

  • The amount of methane emitted from paddy fields of India is 3.396 teragram per year, which is 71.32 mt CO2e. By Ashok Gulati & Reena Singh Against the ‘carbon neutrality by 2070’ target set by India at CoP26, Budget FY23 lists “climate action” and “energy transition” as priorities for the “Amrit Kaal”. The announcement of an additional allocation of Rs 19,500 crore for solar PV modules, co-firing of 5-7% of biomass pellets in thermal power plants, “sovereign green bonds, and “battery-swapping policy” was made in the context. These are steps towards making energy and transport sector less polluting. But in the case of agriculture, Budget announcements have been rather limited. We know that agriculture contributes 73% of country’s total methane emissions. India has kept itself away from recent EU-US pledge to cut methane emissions by 30% by 2030, despite it being the third-largest emitter of methane globally. It is in this context, one has to see the Budget announcement of chemical-free natural farming within a 5-km-wide corridor along the Ganga, support for millets, increased domestic production of oilseeds, kisan drones, etc. While these are welcome steps, they do not give enough comfort on overcoming the environmental damage already done by this sector as a result of subsidies on urea, canal irrigation, and power for irrigation, along with minimum support prices (MSP) and procurement policies that are concentrated in a few states and largely on two crops, rice and wheat. On January 1, the country had stocks of wheat and rice in the central pool that were 4X higher than the buffer stocking norms. In fact, rice stocks with the FCI are an astounding 7X higher than the buffer norms. This is despite record distribution of rice in PDS and record exports of rice (17.7MMT) in 2020-21! The financial value of these excessive grain stocks is Rs2.14 lakh crore, out of which Rs 1.66 lakh crore is just because of the excess rice stocks, estimated at economic cost of rice and wheat as given by FCI. Interestingly, the Economic Survey 2021-22, pegs the economic cost of rice and wheat as being higher than those reported by FCI. If one uses Economic Survey costs, then the value of excess stocks jumps to Rs 2.56 lakh crore, with rice accounting for approximately Rs 2 lakh crore. It is not just inefficient use of scarce capital locked up, the excess stocks are also reflective of a large quantum of greenhouse gases (GHG) embedded. As per the national GHG inventory, agriculture emits 408 million tonnes (mt) of carbon-dioxide equivalent (CO2e), and rice cultivation is the third-largest source (at 17.5%) within Indian agriculture, after enteric fermentation (54.6%) and fertiliser use (19%). Paddy fields are anthropogenic sources of atmospheric nitrous oxide and methane—273 and 80-83 times more powerful than CO2 in driving temperature increase in 20 years, respectively. The amount of methane emitted from paddy fields of India is 3.396 teragram per year, which is 71.32 mt CO2e. Two important points need to be noted here: First, India is not reporting nitrous oxide emissions in its national GHG inventories. There is scientific evidence that intermittent flooding reduces water and methane emissions, but increases nitrous oxide emissions. Thus, lowering methane emissions through controlled irrigation does not necessarily mean net low emissions. Second, there are emissions due to burning of rice residues, application of fertilisers, production of fertilisers for rice, energy operations like harvesting, pumps, processing, transportation, etc, which are not being accounted in GHG emissions by rice production. A study by Vetter et al (2017) used Cool Farm Tool (CFT) model to estimate annual GHG emissions associated with crops, from production to the farm gate. This study reported emission of 5.65 kg CO2e GHG per kg of rice. Furthermore, rice cultivation requires about 4,000 cubic metres of water per tonne. Even if half of this percolates back to the ground, the excess stocks of 46 mt of rice embed about 92 billion cubic metres of water as well as 260 mt CO2e. According to the IMF, the world needs a global carbon tax of $75 per tonne by 2030 to reduce emissions to a level consistent with a 2°C warming target. India does not have an explicit carbon-price yet, but many countries have instituted carbon pricing, with Sweden leading the pack, at as high a rate as $137 per tonne of CO2e while the EU is at $50/t of CO2e. It is high time that India announced indicative carbon pricing and create a vibrant carbon market to incentivise ‘green growth’ in Amrit Kaal. Economic Survey 2021-22 points out that India is over-exploiting its groundwater resources, particularly in its northwestern and southern reaches. This is primarily due to paddy cultivation on 44 million hectares. Paddy helped achieve food security, but now is the time to save groundwater and the environment. It calls for revisiting policies on subsidising power and fertilisers, MSP, procurement, etc. Farmer groups and the private sector can be mobilised for developing carbon markets in agriculture, both at the national and international levels, which can reward farmers for switching from carbon-intensive crops such as rice to low carbon crops, or for improving farming practices in rice to lower GHG emissions. Moving towards ‘net-zero’ agriculture will give India ‘climate smart’ agriculture. And if we can protect productivity levels with a low carbon footprint, it will help India access global markets too. Respectively, Infosys Chair professor for agriculture, and senior fellow, ICRIER
  • Fortified rice in 14 districts from April

  • Ahmedabad: Officials of state civil supplies department on Thursday said the state will start distribution of fortified rice in 14 districts through the public distribution system (PDS). Before the launch, the department along with Food Research Laboratory (FRL) of the Directorate of Forensic Sciences (DFS) carried out an awareness programme to dispel myths about ‘plastic rice’. Officials said fortified rice is made with rice flour mixed with micronutrients — folic acid, vitamin B12 and iron. Thus, it’s colour and shape is sometimes different from rice grains. According to national standards, fortified rice has one such pellet mixed per 100 grains of rice. G P Darbar, technical officer at FRL, said there are multiple tests through which citizens can determine whether the rice in question is ‘plastic’, including soaking it in water (the pellet will fall to the bottom, while a plastic grain will float) and burning (a plastic one will smell). H P Sanghvi, director of DFS, said they regularly receive samples where citizens call the pellets ‘plastic rice’.
  • Non-Basmati rice exports likely to cross 17 MT this financial year: BV Rao, president, Rice Exporters Association

  • non basmati rice Exports of non-Basmati rice are poised to cross 17 million tonne (mt) for the current financial year. Exports have already crossed 12.53 mt for the current season against 13 mt for the entire 2020-21 season, BV Rao, president, Rice Exporters Association (REA), told FE. According to data released by the association, non-Basmati rice exports have recorded a 51.8% rise between April and December last year, over the previous year’s corresponding period, due to high purchases made by China and Bangladesh. Non-basmati rice shipments crossed 12.53 mt over April-December 2021, compared to 8.25 mt in the same period last year. In value terms, the non-basmati rice shipments were up by 46% at $4.48 billion compared to $3.07 billion same time last year. In the April to December 2021 period, Bangladesh imported 1.58 mt in the current year, as against 13,811 tonne for the same period the previous year. In value terms, this translates to $596 million for the April-December 2021 period as against $13.47 million for the April to December 2020 period. Rao said that although Bangladesh has been the largest purchaser of non-Basmati rice from India in the 2021 period, the country has not been buying from India for the last four months since their purchases are largely determined by government decisions. China has imported 0.9 mt from India in the April to December 2021 period valued at $275 million, while the imports from the April to December 2020 period were 33,705 tonne and the shipments were worth $ 10,29 million for this period. Rao stated that China may continue to purchase rice from India and the shipments from India are likely to cross 1.5 mt for the entire year. Other major buyers of Indian rice include Nepal, Vietnam, Sri Lanka, Senegal, Somalia, Indonesia, Malaysia, Togo, Saudi Arabia, the UAE and Russia, among others. Recently, the agriculture ministry said that the country’s exports of Basmati and non-Basmati rice are likely to touch 21-22 mt for the current fiscal.
  • Rising freight rates impact India’s basmati exports to West Asia

  • Doubling of freight rates for shipments to West Asia from the beginning of February has started impacting basmati rice exports to the region. As a result, basmati exports are likely to decline more than 10% year-on-year in this financial year, said industry executives. West Asia has traditionally been the largest buyer of Indian basmati rice, accounting for 85-90% India’s basmati exports. “In the first nine months of the current financial year, basmati exports were down by 38% compared to the same period last financial year,” Vinod Kaul, executive director, All India Rice Exporters Association (AIREA), told ET. “The trade was expecting exports to go up in the fourth quarter of FY22 as the Ramadan month of April was coming when the Middle East buys good quantities of basmati rice.” The surge in freight rates will hurt exports, said Kaul. “The freight cost has more than doubled in the last ten days beginning February. The freight rate was $1,100 per container at January-end which has shot up to $2,300 per container now,” he said. India exported 4.6 million tonnes of basmati rice in 2020-21. But this fiscal, exports are unlikely to cross 4.1 million tonnes, said Kaul. “The payment problem with Iran continues, though some exports are happening through third currency payments which are permitted by the Reserve Bank of India,” he said. However, while basmati rice exports are reeling under rising freight rates and exporters have no choice to send the rice to other destinations, non-basmati rice exports are doing exceedingly well. Exports of non-Basmati rice are expected to cross 17 million tonnes this fiscal, said BV Rao, president, Rice Exporters Association. Exports crossed 12.53 million tonnes in the first nine months of 2021-22, as against 13 million tonnes in the entire 2020-21. Non-basmati rice exports increased 51.8% year-on-year between April and December last year due to higher purchases made by China and Bangladesh.
     
     
     
  • PDS beneficiaries will get fortified rice: Bihar govt

  • PATNA: The state cabinet on Tuesday gave its clearance to the government’s decision to supply ‘poshanyukt chawal (fortified rice)’ to the public distribution shops (PDSs) in the state to overcome the problem of malnutrition in the large chunk of population both in the rural and urban areas. In this regard, the Bihar State Food and Civil Supply Corporation (BSCSC) has been authorized to select the agencies required for the supply of fortified rice to the PDSs. The selection will be done through a proper tendering process, cabinet secretariat department additional chief secretary Sanjay Kumar said. The agencies concerned will also be authorized to procure fortified rice kernel (FRK) that has to be mixed with rice to prepare the fortified rice. It would require mixing of 1kg of FRK with 99kg rice. The proposal for the cabinet clearance had been moved by the food and consumer protection department. As its target people, the scheme will cover 85% of rural population and 75% of those living in the urban areas. The cabinet also sanctioned Rs72.82 crore for the construction of buildings with their specifics at Bagaha and Valmikinagar in West Champaran district to house the offices meant for Mahila Swabhiman Vishesh Sashastra Bal.The sanction was also given to the proposal of the health department for the creation of 32 posts to man Bihar Health Science University, Patna. The building construction department has been authorized to select representatives from Bihar School of Yoga Darshan or those authorised by it, to prepare the curriculum required for the Free Yoga Kendra at Shastri Nagar in Patna.
  • Pune: Rice Mahotsav draws good response from farmers, customers

  • By Swarali Joshirao
    From Indrayani, Ambemohar and Ghansal from Western Ghats to black and red rice recognised for their health benefits, a variety of rice were available for sale during the Rice Mahotsav organised from February 1 to 6 at Maha FPC yard, Pune. Maha Farmers Producer Company (FPC) and NAFED e-Kisan Mandi had organised the festival with the aim to increase farmers’ profit by cutting various expenses incurred by them in delivering farm goods to consumers. As the product directly comes from farm, quality is guaranteed, an official said. Besides FPCs, self-help groups and individual farmers participated in the festival. “When I came to know that some farmers from Maval are facing difficulty in selling their rice, this idea struck my mind. With the help of NAFED e-Kisan Mandi, we have tried to apply Business-to-Consumer model, wherein farmers can earn approximately double their regular income,” said Yogesh Thorat, Managing Director, Maha FPC. “We received commendable footfall. People appreciated our initiative. This can be called a pilot project,” Rahul Godhse, Operations Team, Maha FPC, said. Aajra FCP (Kolhapur), Raigad Farmers Agricultural Producer, Donu Aaee Krushi Gat (Pune), Aandar Mava FPC (Pune), Ganpat Gangaram Kank (Pune), Jay Malhar Krushi and Organic Rice Producer Gat (Pune), Dhondidev Agro Foods (Kolhapur), and Chouras FPC (Bhandara) sold their produce at the festival. Jyoti Sahane, a customer, came all the way from Manchar to buys 250 kilograms of Indrayani rice. “We usually get low-grade Indrayani or a mixed product. I come from a farmer’s family and could easily understand that the product (being sold at the festival) is original. I feel this is a fantastic start. They should conduct such fairs often and for various other products,” she added.
  • Large quantity of rice imported from India last year to fulfil export commitments

  • -Agriculture Minister, GRDB unaware

    Indian High Commissioner Dr KJ Srinivasa has said that a large quantity of rice was imported from India during 2021 by local businessmen in order to meet export commitments.
     
    He made the revelation during a recent interview with the Stabroek News. “In fact, last year when the interesting thing happened, if you see the Indian exports to Guyana, rice became a big export. What happened was there was some Guyanese businessman who needed to get rice from India [because] there was some shortfall somewhere in Brazil or something,” the High Commissioner disclosed.
  • Iran orders immediate imports of rice, potato amid price surges

  • US Rep. Ilhan Omar (D-MN) (L) talks with Speaker of the House Nancy Pelosi (D-CA) during a rally with fellow Democrats before voting on H.R. 1, or the People Act, on the East Steps of the US Capitol on March 08, 2019 in Washington, DC. (AFP photo) The Iranian government has ordered immediate imports of rice and potato into the country to tackle rising prices in the domestic market. Iran’s Food Security Headquarters, a government department controlled by the ministry of agriculture (MAJ), ordered the imports of 100,000 metric tons of potato and 200,000 tons of rice into the country following an emergency meeting held on Thursday. MAJ’s spokesman Alireza Rezazadeh said that the imports had been ordered to comply with a decree by Iranian President Ebrahim Raeisi to fight hoarding and overpricing of food in the domestic market. Rezazadeh would not elaborate on the name of countries from where Iran will import potato but he said that rice shipments will gradually arrive from India, Pakistan and Thailand within the next two months. This is a first time in years that Iran decides to import potato, a crop which is produced in the country on a massive scale of around 5.2 million tons per year. However, reports on Thursday suggested that the MAJ had issued a decree with immediate effect to halt potato exports from Iran. The reports said that the government will impose a heavy duty on exports of potato from the country in the upcoming weeks. Rezazadeh said that the government will start distributing Iranian rice on a large scale later this week to contain surging prices that he attributed to hoarding practices. The decisions come as price of some premium verities of Iranian rice hit record highs of 1.15 million rials ($4.2) per kilogram on Wednesday. That comes as Pakistani or Indian rice varieties were selling for around $1 per kilogram in the market on the same day.
  • Non-basmati rice exports may exceed target on strong buys from China, Bangladesh

  • image caption

    Shipments up 52% in April-Dec at 12.53 million tonnes clocking $4.48 billion

    As non-basmati rice shipments clock a 52 per cent growth in the first nine months on robust purchases by countries such as China and Bangladesh, exporters are hopeful of exceeding the targeted 16 million tonnes (mt) for the current fiscal. Non-basmati rice shipments crossed 12.53 mt in April-December 2021 as compared to 8.25 million tonnes in the same period last year. In value terms, the non-basmati rice shipments were up 46 per cent at $4.48 billion as compared to $3.07 billion in same period last year. In 2020-21, India’s non-basmati rice exports stood at 13.08 mt valued at $4.796 billion compared with 5.03 mt valued at $2.034 billion in the previous year. “We were targetting 16 million tonnes for the current financial year. Going by the current trend, the shipments may touch 17 million tonnes,” BV Krishna Rao, President of The Rice Exporters Association, said.

    Top buyers

    Largest buyer this year, so far, Bangladesh has purchased a record 1.53 mt against a mere 13,811 tonnes in the same period last year. In value terms, the Bangladesh rice purchases were over $596 million ($13.47 million). “Bangladesh, which has been an aggressive buyer since January last year, has slowed down purchases now. China’s purchases are seen topping a million tonnes. We feel China’s purchases will be more as long as the corn prices are high. China is buying brokens to meet the feed requirements,” Rao said. China has imported about 9.05 lakh tonnes in April-December compared with 33,705 tonnes in the same period last year. In value terms, China’s rice buys from India has exceeded $275 million ( $10.29 million). Similarly, other countries which have scaled up their purchases include Vietnam, Sri Lanka, Nepal, Senegal, Somalia and Indonesia among others. Vietnam has bought over half a million tonnes during April-Dec this year, more than eleven times that of the same period previous year. Vietnam imported 5.66 lakh tonnes valued at $187 million as compared to 48,581 tonnes valued at $15.4 million in the previous year. Some markets like Nepal, Mozambique are stable, while several countries including Malaysia, Togo, Saudi Arabia, the UAE, Russia and Iraq have scaled down their purchases.

    Crop projections

    As per the first advance estimates, India is expected to harvest a record 107.04 mt of rice, the main kharif cereal crop. Kharif planting of rice was at a record 411.46 lakh ha over the normal area of 395.66 lakh ha. However, in the ongoing rabi season, the rice acreage has seen a decline at 23.61 lakh ha as on January 21, over the normal area for the season of 42.5 lakh ha.  
  • Asia Rice: India rates slip on weak demand, other hubs muted on holidays

  • Rice export prices in India fell for a second straight week as buyers opted for cheaper offers from elsewhere, while activity in other Asian hubs remained relatively quiet due to the Lunar New Year holidays. Top exporter India's 5% broken parboiled variety was quoted at $370 to $376 per tonne this week, down from last week's range of $372 to $379. "Myanmar and Pakistan have been offering rice at a competitive price. Some buyers are moving to these destinations," said Himanshu Agarwal, executive director at leading exporter Satyam Balajee. Freight train availability is still limited, and that has been delaying shipments for deals signed last month, he said. Thailand's 5% broken rice prices were little changed at $408-$417 per tonne on Thursday, compared to $408-$415 last week. Thailand aims to ship 7m tons of rice in 2022 as outlook improves One Bangkok-based trader said the market was still muted from the Lunar New Year holidays and most businesses have not resumed. Some orders made before the new year were fulfilled last week and some new deals have been made with buyers from Southeast Asian countries such as the Philippines, Singapore and Malaysia, another trader said. Thailand aims to export 7 million tonnes of rice this year, 14.6% more than 2021. Markets in Vietnam were closed for the Lunar New Year holidays this week. In Bangladesh, domestic rates for the staple were high despite good crops and hefty reserves, hitting consumers. "Prices of food grains has increased in the international market. People are eating more rice to cope with the high global prices of wheat. That is affecting rice prices," the country's agriculture minister Abdur Razzaque told reporters.
  • ASIA RICE-India rates jump to 7-month peak on freight trains shortage

  • By Kavya Guduru Jan 20 (Reuters) - Rice prices in top exporter India hit a more than seven-month high this week due to a railway wagon scarcity, while rates in Thailand reached their highest level since July on a stronger baht. India's 5% broken parboiled variety RI-INBKN5-P1 was quoted at $375-$382 per tonne, its highest since June, up from last week's $367-$375. "Railway wagons are not available and moving rice by trucks means spending nearly double on transportation," said a Kakinada-based exporter in Andhra Pradesh. Nearly a third of India's rice exports for this month are stuck due to a shortage of freight trains. Most traders have stopped signing February export contracts to avoid demurrage charges, industry officials told Reuters.
     
    Thailand's 5% broken rice RI-THBKN5-P1 prices rose to $407-$410 per tonne, the highest since last mid-July, from $404-$405 last week. The baht THB=TH appreciated against the U.S. dollar, causing rice prices to rise, said Bangkok-based traders, adding that prices are expected to hover around these levels for a while as overseas demand is muted. Vietnam's 5% broken rice RI-VNBKN5-P1 was offered at $395-$405 per tonne, unchanged from a week ago. "The market is quiet, and we expect it to remain so until after the Lunar New Year holiday," said a trader based in Ho Chi Minh City, adding domestic supplies will remain low until the harvest beginning next month. Traders forecast export prices to remain high this year on strong wheat and corn prices, and said Philippines will continue to be Vietnam's largest buyer this year. Bangladesh started selling cut-price rice to help poor people hit by exceptionally high commodity prices during the pandemic and stepped up imports while it strengthens efforts to grow more rice.
     
    The lowest price offered in the tender from Bangladesh's state grains buyer to purchase 50,000 tonnes of rice which closed on Sunday was $421.99 a tonne CIF liner out, officials said. (Reporting by Kavya Guduru in Bengaluru, Patpicha Tanakasempipat in Bangkok, Khanh Vu in Hanoi, Rajendra Jadhav in Mumbai and Ruma Paul in Bangladesh, additional reporting by Swati Verma; Editing by Amy Caren Daniel)
  • EDF Board approves Rs27m for global ‘Biryani Festivals’

  • KARACHI: On the request of the Rice Exporters Association of Pakistan (REAP), the Export Development Fund (EDF) Board has approved some Rs27 million for Biryani Festivals at five international destinations for the promotion of Pakistani rice. Reap is making serious efforts to boost the country’s rice export and intends to achieve a $5 billion export target in the next few years. Rice is one of the largest exporting commodity and cumulatively, some 3.2 million tons worth $2 billion rice were exported during the last fiscal year. As per Reap proposal, these Biryani Festivals will be organized in Riyadh (Saudi Arabia), Muscat (Oman), Baghdad (Iraq), Tehran (Iran) and Kuala Lumpur (Malaysia) for the promotion and marketing of Pakistani rice. In these festivals, Reap would present Pakistani rice as a brand to enhance the exports and earn more foreign exchange for the country. While talking to Business Recorder, Muhammad Anwar Mianoor, acting Chairman Reap said these five countries are already importing Pakistani rice, but there is huge potential to increase exports. Pakistan has exported some 0.2 million tons of rice to Malaysia and is willing to achieve 0.5 million tons target. Iraq’s rice market is over one million tons and Iran is also a potential market with 1.5 million tons demand, he mentioned. He said the Export Development Fund (EDF) Board in its 22nd Finance Committee Meeting has principally approved Reap’s proposal for organizing Biryani Festivals in the five international destinations to further explore the rice export markets. “We are planning to conduct Road Shows and aggressive social media marketing. We will engage food bloggers and social media influencers for the promotion of Pakistani rice,” acting Chairman Reap said. He said that these Biryani Festivals will be arranged in the hotels, restaurants and hypermarkets of the potential rice buying countries. Accordingly to manage funds for these festivals, Reap requested Ministry of Commerce and Trade Development Authority of Pakistan (TDAP) for support Reap’s proposal through the EDF, so that the rice exporters’ representative body will be able to increase rice exports from Pakistan and increase overall market share in the different countries, he added. He informed that Mincom and TDAP have not only appreciated the Reap’s Biryani Festival proposal but also assured full support to make these events successful. Accordingly, the EDF Board has approved Reap’s proposals and sanctioned EDF funds of Rs.27 million for Biryani Festivals at five proposed destinations. Anwar Mianoor said that Pakistani rice is one of the best rice in the world due to its length and quality. There is a need to make some serious efforts for the promotion of Pakistani rice. Pakistan has a bumper rice crop this year and has sufficient stocks for exports. The growth in rice exports and its earnings will also help the government to reduce pressure on external accounts. He has thanked Abdul Razzak Dawood, Advisor to Prime Minister on Commerce, Sualeh Farooqi Federal Secretary Commerce and all members of EDF Board for their consistent support for approval of these proposals and efforts for the betterment of rice export trade of Pakistan.
  • Where is the rice export rally?

  • Numbers are a fickle mistress. One look at export data from PBS would seem to suggest that the country exported highest monthly volume of rice in over six years. That would be cause for celebration. Yet the same dataset also indicates that – on six monthly basis - this is the poorest performance by rice exporters since PTI came to power. So, what is really happening in the paddy universe? First off, the frequent revisions in (prior) monthly databy PBS isn’t inspiring confidence, as the quantum of revisions is stretching further. But more importantly, paddy prices in the international market are trading against the tide, facing considerable downward pressure,even as prices of many other grains have galloped forward for many months. Six-month moving average of international rice prices (various indices, by type) are trailing below levels last witnessed in 2016. In fact, rice prices of various commodities such as IRRI (Pak) may be second-lowest in a decade. That’s certainly one reason why Pakistan hasn’t seen its rice export earnings explode, but doesn’t fully explain the picture.
    Quantity exported during H1-FY22 is also significantly lower than in recent past; even lower than the dreadful pandemic stint of H2-FY20. At 2.08 million tons exported during H1-FY22, quantity exported is lowest since at least H2-FY17. Variety-wise breakdown is equally bleak, with 6-month basmati exports lowest since H1-FY19 (minus H1-FY21); while coarse rice exports being lowest since H2-FY17. And that trend alone offers insight into what’s been brewing in Pakistan’s rice exporting market. After peaking during H2-FY19, Pakistan’s rice exports appear to be on a secular decline, both in value and volume terms. That peak had come with the precipitous decline in currency value between Jan – Jun 2019, when Pak Rupee breached Rs160/$ parity for the first time in history. Rice export earnings shot up by 36 percent during H2-FY19 against the preceding six months, while quantity exported also rose by nearly one-third over the same period. Since then, export earnings are crawling back in the 2015-18 territory, with slight seasonal upticks during second half of the year (when autumn harvest makes it to market). Quantum exported also seem to be mirroring the much-reviled PML-N era, during which artificially overvalued currency was held guilty for lack of competitiveness of Pakistan’s exports in the global market. The currency is arguably now as free as it ever has been. Global container shortage also seems to be eking itself out. December export performance is certainly uplifting, but medium-term trend is insipid, if not altogether alarming. Will exporters take the stand and explain: where is the rice export rally?
  • EXCLUSIVE Indian rice traders stop new export deals as freight train shortage blocks shipments

  • Workers lift a sack of rice to load onto a truck at a wholesale grain market in the northern Indian city of Chandigarh February 9, 2012. REUTERS/Ajay Verma/File Photo

    MUMBAI, Jan 17 (Reuters) - Nearly a third of India's rice exports for this month are stuck due to a shortage of freight trains and most traders have stopped signing February export contracts to avoid demurrage charges, industry officials told Reuters.

    The slowdown in exports from India, the world's biggest rice exporter, has allowed rival suppliers such as Thailand, Myanmar and Vietnam to increase overseas sales at higher prices.

    Slowing exports could force the Indian government to increase procurement from farmers.

    Shipments of more than 500,000 tonnes of non-basmati rice that need to be transported to ports on India's east coast from the central state of Chhattisgarh have been stuck due to the shortage of freight trains, dealers said.

    They are part of around 1.5 million tonnes of rice that India had planned to export this month.

    "Cargoes cannot move from producing centres to ports because of freight train scarcity," said Nitin Gupta, vice president of agricultural commodities trader Olam India's rice business.

    "There is no clarity on the availability of trains so nobody is offering fresh cargoes."

    Railway authorities have diverted wagons to ship fertilizers and to serve thermal coal power plants to ensure adequate power supply this winter after power plants ran out of coal a few months ago.

    The delay in Indian shipments is hitting exporters hard as vessel rates have risen to $30,000 per day and some exporters need to pay as much as $500,000 in demurrage charges, wiping out their entire margin, said Himanshu Agarwal, executive director at Satyam Balajee, India's biggest rice exporter.

    Traders have started quoting higher prices for overseas shipments to cover higher demurrage charges, and prices for India's 5% broken parboiled variety of rice have risen to $380 per tonne, the highest in six months.

    Higher prices and shipping delays are prompting some buyers to switch to rival suppliers such as Thailand and Myanmar, said B.V. Krishna Rao, president of India's Rice Exporters Association.

    International rice prices turn higher on Indian export delays

    Thailand's 5% broken rice prices rose last week to their highest since mid-July 2021 at $404-$405 per tonne.

    "We have requested the Ministry of Commerce and Industry to help us by increasing railway wagons' availability," Rao said.

    India's Ministry of Commerce and Industry and Ministry of Railways did not immediately respond to requests for comment on Monday.

    In the past traders use to switch to road transport in the absence of railway wagons, but truckers have substantially raised freight charges in the past six months after diesel prices jumped to a record high, said a dealer with a global trading firm.

    "At least for near-month shipments, Asian and African buyers are switching to Thailand, Myanmar and Pakistan. Indian exports could fall in the March quarter," he said.

    India cornered nearly half of global rice shipments in 2021 as its exports surged 45% from 2020 to a record 21.4 million tonnes, or more than the combined exports of the next three largest exporters Thailand, Vietnam and Pakistan, according to provisional government data.

    India's rice production has jumped to a record high in the current year and prices are still competitive, but logistics' bottlenecks are limiting exports, said Himanshu of Satyam Balajee.

     

  • ASIA RICE-STRONG RUPEE, TIGHT SUPPLIES LIFT INDIA RATES TO OVER 6-MONTH PEAK

  • * Vietnam's 2021 rice exports fell 0.2%- govt. data * Bangladesh domestic rates up despite good crops, imports- trader By Kavya Guduru Jan 14 (Reuters) - Rice export prices in top exporter India this week touched their highest levels since last June, supported by tight supplies and a stronger rupee, while an uptick in demand buoyed rates in nearby Thailand to their highest since mid-July last year. India's 5% broken parboiled variety <RI-INBKN5-P1> was quoted at $367-$375 per tonne, a peak since the week of June 24 last year, up from last week’s $359-$363. "Mills are mainly focusing on milling white rice. Parboiled supplies are very limited, and that's why prices are moving higher," said an exporter based at Kakinada in the southern state of Andhra Pradesh.
     
    Prices are also firming because of an appreciation in the rupee, he said, which trims traders' margins from overseas sales. Thailand's 5% broken rice <RI-THBKN5-P1> prices rose to their highest since mid-July 2021 at $404-$405 per tonne from $390-$402 last week. Bangkok-based traders said an uptick in demand among exporters who had to fulfil orders made before the New Year’s holidays raised prices slightly. Thailand exported 5.39 million tonnes of rice between January and November 2021, up 2.6% from the same period a year earlier, according to the country’s commerce ministry. Vietnam's 5% broken rice <RI-VNBKN5-P1> was offered at $395-$405 per tonne, widening from a range of $395-$400 a week ago. "Sales are slow, and local traders have scaled down their purchases from farmers," a trader based in Ho Chi Minh City said. Government customs data released on Thursday showed Vietnam’s rice exports in 2021 fell 0.2% to 6.24 million tonnes. Exports in December fell 13.4% from November to 490,219 tonnes. Meanwhile, in Bangladesh, domestic rice prices went up again this week despite good crops and huge imports, traders said. Bangladesh, the world's third-biggest rice producer, imported nearly 1.36 million tonnes in the previous year that ended in June. (Reporting by Kavya Guduru in Bengaluru, Patpicha Tanakasempipat in Bangkok, Khanh Vu in Hanoi, Rajendra Jadhav in Mumbai and Ruma Paul in Bangladesh; Editing by Hugh Lawson)
  • Pakistan posts record rice production

  • Rice_ShutterStock_E.jpg ISLAMABAD, PAKISTAN — Pakistan harvested a record rice crop of 8.9 million tonnes in the 2021-22 marketing year, up from 8.4 million tonnes the prior year, according to a Global Agricultural Information Network report from the Foreign Agricultural Service of the US Department of Agriculture (USDA). “New higher-yielding hybrid rice varieties, improved agronomic practices and increased planting area, as farmers shift out of cotton, are factors driving the increased production,” the USDA said. The agency noted that the Pakistan government’s policy of ensuring rice growers had adequate inputs also contributed to the record production. Meanwhile, the country’s rice exports in 2020-21 (November-October) were stagnant at 3.8 million tonnes, virtually unchanged from the previous year, the report said. Supply chain disruptions, shipping container shortages, and high transportation costs negatively impacted rice exports. With this year’s record production adding more stocks, total available supply is estimated to be 11 million tonnes, the USDA said. “Domestic rice consumption is 3.7 million tonnes, leaving an exportable supply of 7.3 million tonnes for 2021-22,” the USDA said. “This large surplus will provide an opportunity to significantly increase exports, but Pakistani rice will continue to face stiff competition from India and Southeast Asia suppliers.”    
  • Pakistan poised to export near-record rice volume this season

  • Pakistan poised to export near-record rice volume this season ISLAMABAD: Bolstered by a bumper crop, Pakistan is poised to export near-record volumes of rice this season as the country struggles to manage surplus stocks of grain, a minister said on Monday. Pakistan planned to offer over 8 million tons of rice to foreign buyers as by December around 11.43 million of rice stocks will be available in the market for 3.4 million tons of local consumption. Syed Fakhar Imam, minister for National Food Security and Research said the country would offer rice worth $5 billion this season for exports to cut its ballooning surplus “but at the same time it’s a challenging task”. “This year we have over 8 million tons of exportable, worth around $4.85 billion. If we succeed in exporting this surplus rice, it would be a major breakthrough,” Imam told a news conference. China, Kenya, UAE, Afghanistan and Saudi Arabia were key exports destinations of Pakistani rice over the last five years and imam said the government is mulling to setup a committee or task force on national level under the supervision and monitoring of the Prime Minister to push rice exports to new markets including. Africa and Latin-America “Exports have been a major challenge for the country over the last one decade and have been in the bracket of $21 to $25 billion. If this avenue is exploited and the rice is exported, the country can earn more forex and jack up our total exports,’ he added. Imam said the provincial crops reporting departments have reported a bumper rice crop of 8.96 million tons from 3.5 million hectares during the Karif 2021/22 crop year. Last year the country produced 8.41 million tons of rice. The government estimates that total available stock by December 2021 will be 11.43 million tons. Deducting 3.40 million tons for domestic consumption, 8.03 million tons is available as exportable surplus. Of the total exportable surplus, approximately 30 percent is basmati (2.41 million tons). Currently, the average export prices of basmati and coarse rice are $870/ton and $490/ton respectively. At these prices, Pakistan can earn $2.10 billion and $2.75 billion (total $4.85 billion) from the export of basmati and coarse rice, respectively. Official data showed that the country produced 8.41 million tons of rice and had a carryover stock of 0.51 million tons. Around 8.92 million tons of grain stock is available for domestic consumption and export. Up to November 2021, approximately 3.1 million tons were domestically consumed and 3.34 million tons was exported. Currently, the country has last year’s carryover stock of 2.47 million tons. During the last fiscal year, Pakistan exported 3.50 million tons of rice, valuing $2.11 billion. However, rice exports fell 12 percent compared to exports of FY2019-20 due to Covid-19 related disruption in shipments. “In FY2021-22, our exportable surplus is 128 percent higher than that of last year. Now that the shipment disruption is easing, Pakistan should make every effort to export 8.03 million tons and earn $4.85 billion which will be $2.74 billion more than that of last year,” Imam said.
  • Pakistan poised to export near-record rice volume this season

  • Pakistan poised to export near-record rice volume this season ISLAMABAD: Bolstered by a bumper crop, Pakistan is poised to export near-record volumes of rice this season as the country struggles to manage surplus stocks of grain, a minister said on Monday. Pakistan planned to offer over 8 million tons of rice to foreign buyers as by December around 11.43 million of rice stocks will be available in the market for 3.4 million tons of local consumption. Syed Fakhar Imam, minister for National Food Security and Research said the country would offer rice worth $5 billion this season for exports to cut its ballooning surplus “but at the same time it’s a challenging task”. “This year we have over 8 million tons of exportable, worth around $4.85 billion. If we succeed in exporting this surplus rice, it would be a major breakthrough,” Imam told a news conference. China, Kenya, UAE, Afghanistan and Saudi Arabia were key exports destinations of Pakistani rice over the last five years and imam said the government is mulling to setup a committee or task force on national level under the supervision and monitoring of the Prime Minister to push rice exports to new markets including. Africa and Latin-America “Exports have been a major challenge for the country over the last one decade and have been in the bracket of $21 to $25 billion. If this avenue is exploited and the rice is exported, the country can earn more forex and jack up our total exports,’ he added. Imam said the provincial crops reporting departments have reported a bumper rice crop of 8.96 million tons from 3.5 million hectares during the Karif 2021/22 crop year. Last year the country produced 8.41 million tons of rice. The government estimates that total available stock by December 2021 will be 11.43 million tons. Deducting 3.40 million tons for domestic consumption, 8.03 million tons is available as exportable surplus. Of the total exportable surplus, approximately 30 percent is basmati (2.41 million tons). Currently, the average export prices of basmati and coarse rice are $870/ton and $490/ton respectively. At these prices, Pakistan can earn $2.10 billion and $2.75 billion (total $4.85 billion) from the export of basmati and coarse rice, respectively. Official data showed that the country produced 8.41 million tons of rice and had a carryover stock of 0.51 million tons. Around 8.92 million tons of grain stock is available for domestic consumption and export. Up to November 2021, approximately 3.1 million tons were domestically consumed and 3.34 million tons was exported. Currently, the country has last year’s carryover stock of 2.47 million tons. During the last fiscal year, Pakistan exported 3.50 million tons of rice, valuing $2.11 billion. However, rice exports fell 12 percent compared to exports of FY2019-20 due to Covid-19 related disruption in shipments. “In FY2021-22, our exportable surplus is 128 percent higher than that of last year. Now that the shipment disruption is easing, Pakistan should make every effort to export 8.03 million tons and earn $4.85 billion which will be $2.74 billion more than that of last year,” Imam said.
  • Rice export has huge scope

  • Paddy shipments to Beijing may rise as agri-cooperation deepens farmers plant rice seedlings in a paddy field on the outskirts of lahore july 10 2011 photo reuters BEIJING: Will Basmati rice, the pride of Pakistan, appear on the dining tables of more Chinese consumers? Customs data showed that China imported 1.95 billion yuan worth of paddy and rice from Pakistan in the first 10 months of this year, 3.9 times higher than the same period of last year. Pakistan is the third-largest rice supplier to China. In addition, Pakistan became China’s largest rice supplier in the first five months of this year. As China and Pakistan further deepen agricultural cooperation, rice exports to Beijing may increase. The world’s leading rice exporters, India, Thailand, Vietnam and Pakistan compete and cooperate with each other. India used to be the largest exporter of Basmati rice, however, due to the strict European Union restrictions on tricyclazole and carbendazim, India lost a lot of Basmati rice orders from European clients. Meanwhile, Pakistan has become the biggest beneficiary thanks to its organic farming of Basmati rice. Rice Exporters Association of Pakistan Senior Vice President Faisal Jahangir Malik said that three years ago, India sold 400,000 tons of Basmati rice in the European markets while Pakistan’s share was less than 40,000 tons. “From 2020 to 2021, Pakistan’s rice exports to European countries reached 470,000 tons, while India’s share dropped below 40,000 tons,” he said. Read ‘Agriculture sector vital for growth’ “This was made possible thanks to Pakistan’s traditional farming method. Although Pakistan’s farming methods are not modern, they are close to organic production, hence the world has confidence in the locally produced rice.” Smog affects rice yield For a long time, Pakistan has followed a formula for rice export – rice export equals output minus domestic consumption. Karachi Chamber of Commerce and Industry Vice President Shamsul Islam Khan told China Economic Net that Pakistan exports all it could offer. The only way to enhance exports is to increase the rice yield. Zhang Jiegen, the Associate Researcher at the Centre for Pakistan Studies at Fudan University, believed that China’s rice market is open to Pakistan in a way that other countries do not enjoy. “China will provide as much quota as possible to Pakistan in order to promote the healthy development of two-way trade but Pakistan’s production capacity cannot keep up,” he said. He cited sugar exports as an example. In 2020, Pakistan announced a subsidy for exporters to promote sugar export to China, however, this was followed by a spike in sugar prices as Pakistan’s domestic sugar production capacity could not keep up. Many factors affect rice yield. Read more Australia to provide agri-training Rice Research Institute Kala Shah Kaku Director Muhammad Rafiq was of the view that smog is a major culprit. “When Basmati rice is not dried in time, exposure to the air produces aflatoxins. If these factors are excluded, the average yield of crops per acre will increase by 10-15 maund (40 kg),” he said. In Pakistan, many farmers consider rice as a cash crop. They use wheat harvesters to harvest rice due to the lack of specialised rice harvesters. Shamsul Islam Khan believed that the use of inappropriate combine harvesters affected the rice yield. “This leads to grain loss and increases breakage rate. When specialised rice harvesters are used, the yield will increase and the quality of crops will improve.” Agricultural technology limits rice production and also has an impact on rice processing. Khan said that 40-50% of rice is broken during processing. Rice exporters in China In the first five months of this year, Pakistan became China’s largest rice supplier. The main reason behind this is that China has relaxed its import restrictions on Pakistani rice in recent years. China has allowed seven new Pakistani rice exporters to do business in the country. So far, the number of Pakistani rice exporters that have got permission to enter the Chinese market has risen to 53. “There are 1,800 active members in Pakistan’s rice exporters association and currently, over 800 companies export rice from Pakistan,” said Malik. Comparing 53 approved exporters to 1,800 active members, he stated that “there is still much room for improvement in the exporter quota”.