The influx of demand from feed buyers in the wake of the Russian invasion of Ukraine has raised numerous questions over the direction of the Asian low-quality white rice market.

  • While commercial feed demand in recent years has been dominated by corn and wheat, Russia's invasion of Ukraine on Feb. 24 led to price spikes for both products. It has also led to increasing concern about global exportable supplies, with the Black Sea region one of the major origins for these products. However, demand from feed buyers is not new. According to Shirley Mustafa of the UN's Food and Agricultural Organization, this has been emerging for some time. "Use of rice for feed has been rising since 2020-21, after reaching a seven-year low the year prior," Mustafa told S&P Global Commodity Insights. "Rice use for animal feed [aside from bran] is usually limited and confined to backyard operations since the commercial feed sector usually has more economically viable alternatives than rice. However, gains in wheat and maize prices over the past year-and-a-half or so, driven by these commodities' own domestic and international market dynamics, have tended to narrow price differentials with rice [especially broken rice]." In China, for example, these shifting dynamics were directly linked to 2021 rice imports rising by 69% year on year to 4.96 million mt, according to data from Chinese customs, with the world's largest exporter -- India -- emerging to satisfy this huge volume of broken rice demand.

    Rice markets react

    But the demand from feed buyers has spiked in both India and other Asian rice markets since the Ukraine conflict began. In India, for example, sources have reported instances of defaulting and low supplies, with one Kakinada-based exporter going so far as to describe the local broken rice market as a "disaster" due to the sudden influx of demand. In rice export origins which are also destination markets for corn and/or wheat, such as Vietnam, many exporters have withdrawn their broken rice offers due to high domestic demand. Vietnamese 100% broken white rice price has increased by $65/mt since the invasion of Ukraine, reaching a high of $370/mt FOB on March 25, according to Platts assessment from S&P Global. However, many sources view broken rice prices from Vietnam as hypothetical, with the country even importing substantial volumes from India to meet demand. In traditional broken rice markets -- notably in West Africa -- the situation is more immediately concerning from a food security perspective. In Senegal, which is a huge market for broken rice for human consumption, a sizable gap is opening up between current retail prices and replacement costs. While in part this is due to Senegal's new retail price cap and high freight rates, the significant rise in Indian broken rice prices in recent weeks has only served to widen this gap. According to one Europe-based trader who buys for the country, this gap has reached $90/mt in recent days, and made it "impossible" to buy for Senegal at present without taking on huge financial risks. However, with sufficient stocks in Dakar for Ramadan and the following weeks, the trader added that it makes no sense to re-enter the market before the religious holiday is over, with hopes that the replacement cost gap will have narrowed in the interim.

    Unusual price spreads

    Because of the massive influx in demand for Asian broken rice, unusual price spreads between different rice grades have emerged. Pakistani 5% and 100% broken white rice were briefly assessed at par earlier in March while the gap was $70/mt a year prior. The spread between Thai 5% and A1 Super 100% broken white rice has narrowed to only $2/mt in recent days, compared to $51/mt a year prior. One major Singapore-based rice trader said that "some 25% [broken white rice] shipments for feed purposes" was seen from Myanmar to Europe. Sources buying from the Myanmar market have reported that offers of low-quality B234 broken white rice have been largely unavailable in recent weeks due to high feed demand, with higher quality broken rice prices also moving up substantially. Despite sources reporting no obvious reason for why feed buyers could not turn to 25% broken white rice if 100% broken white rice was unavailable, or priced uncompetitively, sales of this product for feed purposes so far remain rare. A second Singapore-based trader said that they were advising their traditional broken rice buyers in Africa to accept 25% broken white rice due to supply and price issues for 100% broken white rice. However, the first Singapore-based trader cautioned that this would ultimately "depend on corn prices." FAO's Shirley Mustafa agreed, saying that "because this trend is influenced by factors outside of rice markets, developments in these external markets will have an important bearing." Mustafa added that "current forecasts suggest record-breaking supply availabilities in the major exporters this season, thanks to bumper harvests expected in India, Pakistan and Thailand. If these are realized, they should be more than sufficient to cater to the higher global needs."

    Outside forces

    Despite uncertainty surrounding how this situation will play out, it is almost inevitable that feed demand will take up an unusually large portion of international rice sales in 2022. A third Singapore-based trader said that it will "not be a huge chunk ... But it will not be insignificant either." The questions which remain at this point are whether 25% broken white rice sales for feed will become more widespread and how this demand for cheap rice will impact traditional buyers of 25% and 100% broken white rice for human consumption. However, with rice still a minor player in the massive global feed market, the situation will ultimately remain at the mercy of outside forces.
  • 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.  
  • China pledges to purchase more rice

  • Chinese President Xi Jinping has pledged to increase the country’s imports of milled rice from Cambodia and indicated its willingness to purchase other agricultural products from the Kingdom after a free trade agreement (FTA) came into force. He made the commitment during a telephone conference on bilateral, regional and global issues with Prime Minister Hun Sen on March 18. Xi said that, alongside milled rice, China will import other agricultural products such as bananas, mangoes and longans to help alleviate poverty in Cambodia, and urged the Kingdom to offer more of such goods for export. “Cambodia needs to make better use of the Regional Comprehensive Economic Partnership [RCEP] agreement in the region, and the free trade agreement between China and Cambodia, to push bilateral trade to a new level. “The Chinese side will increase the import of high quality Cambodian agricultural products, and establish cooperation that benefits more people in Cambodia,” Xi said. Hun Sen noted in the conference that bilateral trade between the two countries has been growing rapidly and that major construction projects under the Chinese Belt and Road Initiative in Cambodia have been “running smoothly”. He said that such projects have “clearly demonstrated the achievements of the comprehensive strategic partnership between Cambodia and China”, adding that the building of a “common destiny” between the two countries has “made it clear” that they have developed strong ties. The prime minister added that Cambodia is pleased to use the 65th anniversary of diplomatic relations between the two countries next year as an opportunity to “bolster cooperation” in areas such as cultural exchange, economy, trade and agriculture. He said he anticipated that these exchanges would “serve to deepen and enhance the joint realisation of the Belt and Road Initiative, and raise the comprehensive strategic partnership between Cambodia and China to a new level”. Cambodia Rice Federation (CRF) president Song Saran told The Post that China’s commitment will be an “important tool” in boosting Cambodia's milled rice exports to the Asian giant. “The rice federation is pleased and applauds the positive things that the two leaders have discussed over the phone concerning our rice sector, both now and in the past,” he said. “This shows the strong ties our Cambodian rice sector has to the economic sector at large.” The growth of milled rice exports from Cambodia to China in the first two months increased by more than 56 per cent compared to the same period in 2021, according to Saran. At just over 120,000 tonnes, so far, Cambodia has achieved more than 22 per cent of the 2022 export quota of 400,000 tonnes as stated in the memorandum of understanding (MoU) signed with the Chinese government. He said he expected that the MoU “will be achieved by December 2022”. Along with the high number of orders from the Chinese private sector, Saran said that “this [rate of export] indicates that the Chinese side is willing to promote our milled rice to the Chinese market, and that the Chinese people are more aware of the quality and quality standards of Cambodian milled rice”. According to figures from the Ministry of Commerce, the bilateral trade volume between Cambodia and China reached nearly $8 billion in 2021, up 38.36 per cent compared to 2020.
  • China’s quest to secure its ‘Rice Bowl’: Challenges to its food security

  • Can Xi continue to promise food security despite increased consumption, aging rural population, rapid urbanisation, and climate changes? In June 2021, President Xi Jinping declared that China had achieved CCP’s first centenary goal to become a ‘moderately prosperous society’ with zero absolute poverty. As the nation moves to attain its second centenary goal, which is to build a ‘modern socialist country’, Xi knows he has to pivot back to the rural hinterlands  to perennially secure his people’s ‘rice bowl’—by increasing grain quality and output. Throughout its civilisational history, China has faced major famines. Ever since the Chinese Communist Party (CCP) took reigns of mainland China in 1949, the country has witnessed major setbacks when it comes to food security. One such major setback was the Great Chinese Famine (1959-61) a man-made disaster during the Great Leap Forward movement which is said to have killed nearly 45 million people. Some of the older generations alive today have horrid memories of the famine.
    The Great Chinese Famine (1959-61) a man-made disaster during the Great Leap Forward movement which is said to have killed nearly 45 million people.
    The Party has crafted a narrative that credits the nation’s leadership for being able to deal with nation’s challenges. Citizens are expected to place their faith in their party and their leader Xi Jinping. However, China’s food security faces certain perils.

    Journey towards food self-sufficiency

    China holds the distinction of being the world’s largest importer of food products—grains, meat, and seafood included. It is also the fourth largest buyer of agricultural land abroad. However, the outbreak of the COVID-19 pandemic left an adverse impact on international food supply chains and although China has ample stockpiles of corn, rice, and wheat, it depends on global markets for pork and soybean which are part of the staple Chinese diet. The world continues to view China’s aggressive rise with suspicion, especially as it does little to allay the fears of the international community. Trade frictions, allegations of food hoarding and land grab, belligerent military posturing in Asia-Pacific, and the overall global perception of its handling of the COVID-19 outbreak—these are merely a few reasons for China to accelerate efforts to look inwards and attain self-reliance.
    Although China has ample stockpiles of corn, rice, and wheat, it depends on global markets for pork and soybean which are part of the staple Chinese diet.
    To further exacerbate food insecurity concerns, there were widespread incidents of panic buying and hoarding in November last year, when a Ministry of Commerce directive to local governments to stabilise food prices for winter months was widely speculated to mean a possible incoming COVID-19 wave or an outbreak of war with Taiwan.

    Policy changes over the last few years

    Over the years, China has shifted its policy focus towards self-sufficiency in food. In the 1990s, China’s leadership ordered for establishing a National Grain Stockpile to coordinate central and regional food reserves—which today is claimed to be one of the world’s largest stockpiles. In 2006, a ‘red line’ was established, under President Hu Jintao, at 1.8 billion mu of land (120 million hectares) to ensure that urbanisation and industrialisation drives did not encroach into arable lands that was to be utilised for agriculture.
    President Xi Jinping through the National Congress enacted a law that banned binge eating and food wastage to instill values of conservation amongst the general public.
    An ambitious target of 95 percent self-sufficiency in grains was set, i.e., 95 percent of domestic demand should be met through domestic supplies—which China claims it has ensured till date. To ensure accountability in provinces, political responsibility to prevent food shortages was assigned to provincial governors and local party functionaries. In April 2021, President Xi Jinping through the National Congress enacted a law that banned binge eating and food wastage to instill values of conservation amongst the general public.

    Seeds are the new ‘semiconductor microchips’

    In 2021, the Chinese central authority issued the year’s first policy document called ‘Document No. 1’, which is seen as an indicator of national policy priorities. For the 18th consecutive year, the document focused on food and agriculture. However, a significantly important policy change was in the promotion of Genetically Modified (GM) technologies in seed industries and commercial usage of GM crops. China’s Agriculture Minister Tang Renjian declared that seeds are the new “semiconductor microchips” in agricultural technology, and they shall be instrumental in securing grain output. Unlike countries like USA where private players are involved in three-quarters of the research in seed technologies that leads to commercial applications, in China, the number stands at 10 to 20 percent. Thus, CCP has instructed the Ministry of Agricultural and Rural Affairs to provide the government’s direct support to leading private seed enterprises. Acquisition of multinational corporations has been considered the quickest way for China to acquire seed technology. One of the most high-profile acquisitions has been that of Swiss food-tech giant Syngenta in February 2016 by state-owned ChemChina for US $43 billion.
    CCP has instructed the Ministry of Agricultural and Rural Affairs to provide the government’s direct support to leading private seed enterprises.
    On 24 December 2021, China adopted a revised Seed Law which shall come into effect from 31st March 2022. The revised law increases commercialisation and standardisation of GM technology in the seed industry and brings it in line with international standards. However, Chinese government has been drawing flak for promoting GM foods.

    Challenges ahead

    Despite China’s leadership’s go-ahead for GM corn and soyabean after passing them through biosafety evaluations in 2020, it has met with resistance from the Chinese public at large. Policymakers in Beijing have been unsuccessful in building trust amongst the citizens that GM foods are safe for consumption. The public has seen its share of food safety scandals in the past. However, this is only part of the problem. Till date, China continues to be an agrarian society but it faces the daunting task of feeding the world’s largest population on just 7 percent of world’s arable land. A survey conducted by the Ministry of Natural Resources stated that China’s arable land area towards the end of 2019 had reduced by 6 percent to 1.28 million square kilometres, as compared to 2009—a majority of it converted into forests, urban areas or industrial hubs. Since 1990s, incessant and inefficient use of chemical fertilisers has polluted and depleted groundwater table and soil quality. China also happens to be the largest emitter of greenhouse gases in the world since 2006. In 2020, China’s carbon emissions broke records by reaching nearly 14 billion tonnes (GtCO2) contributing to 27 percent of the global emissions, as per reports by the Rhodium Group. Particularly, a major source of carbon emission in China arises from livestock cultivation. As per the ‘Journal of Integrative Agriculture’, net greenhouse gas emissions from the pork industry in China increased 16 million tons (Mt) of carbon dioxide equivalents (CO2eq) during the study period 1976-2016, further adding to the national carbon footprint. The greenhouse gas emissions have a direct contribution to loss in crop yields. According to a study by Nature Food, China saw an increase in Ozone pollution resulting in diminishing yields of wheat, rice, and maize at 33 percent, 23 percent and 9 percent, respectively.
    The World Meteorological Organization (WMO) has hailed climate change caused due to anthropogenic factors as the main reason for flooding in China and other countries.
    In 2021, heavy rainfall led to flooding in many provinces in China. Henan province, for one, experienced loss of 2.4 million acres of crops fields. The province produces one-third of China’s wheat supply and nearly one-tenth of its corn, vegetable, and pork. The World Meteorological Organization (WMO) has hailed climate change caused due to anthropogenic factors as the main reason for flooding in China and other countries. Thus, the need of the hour for the leadership is to ensure the adoption of sustainable and environmentally safe practices in food production. The socio-economic effects of the ageing population in China, especially in rural areas, have an impact on food production and consumption. Urbanisation rate in China was at 57 percent in 2016, and might go up to 65 percent by 2025, and 80 percent by 2050. These figures raise an important question—who shall be a part of food production in rural areas if society continues to undergo such transitions?


    Ever since he came into power 10 years ago, food security has been one of Xi’s prime areas of focus. “Food security is an important foundation for national security. Guaranteeing national food security is an eternal issue, and this string cannot be loosened at any time” claims the President. The ‘string’ which Xi refers to is extremely vital to the longevity of his presidency. In 2013, he had reminded his officials to take heed of USSR’s disintegration in 1991 and to keep in mind the reasons for the same—that the then Russian leadership had permitted the public denigration of Soviet leaders like Lenin and Stalin. In China, excessive rise in food grain prices was one of the factors that led to the Tiananmen Square protests in 1989 and Xi will not let public criticism of food security programmes adversely affect his political career. The National Congress, which assembles once in five years, shall convene towards the end of this year and determine who forms part of the future leadership, which Xi aspires to lead. Despite enacting a national anti-food wastage law, Beijing must realise that China has transformed into a relatively more prosperous country. With growing urbanisation and rising income levels in urban and rural areas, dietary consumption is bound to increase in the world’s largest population. The CCP had always promised its people abundance in food and grains. Now that citizens have begun to enjoy the fruits of a ‘moderately prosperous society’, an important question arises—are various components of China’s food policy realistic enough to secure the ‘rice bowl’ or are they mere political gimmicks to secure Xi’s presidency?  
  • China dominating in rice could offer export opportunities

  • Farmers harvest rice at Xinghua in October 2017 in Taizhou, Jiangsu Province of China. China is fast becoming the 800-pound gorilla in the world’s rice markets.
    As it has with other crops, including cotton, corn and wheat, China is fast becoming the 800-pound gorilla in the world’s rice markets. Based on what’s happened in recent years, China is now the top producer, top consumer, top stockholder, top importer and a “rising exporter” of rice, according to a USDA Foreign Agriculture Service international economist. Trego, who is team leader for food grains analysis at USDA-FAS’ Office of Global Analysis, said China’s exports have been relatively limited because of the high domestic rice prices within the country until recent months. Most Chinese exports have tended to be to the nearby regional markets such as South Korea, Mongolia and Hong Kong. Part of that, Trego says, is that China has begun resuming exports to Africa. “These dwindled and virtually were down to nothing by the time of 2012, but, in 2017, approximately two-thirds of Chinese exports were to Africa. “There have been a couple of reasons they have been able to enable these exports. China has begun to have some more available supplies of some of the multi-year-old rice from the stocks. China is beginning to auction off and have increasing amounts of sales from the auctions of some of the 2013 rice from the government temporary reserves.”

    Less from Thailand

    Meanwhile, the amount of rice Thailand has been exporting, especially to Africa, has dwindled, as Thailand is left with only the no-longer-good-for-human consumption rice within the country’s domestic stocks. “Given Thailand’s ending of exporting especially low-priced rice to Africa, China has been able to see some in roads into Africa, as well as beyond,” said Trego, who is a regular contributor to USDA’s World Agricultural Supply and Demand Estimates. “Notably, China’s average export price as reported by China’s custom data developed precipitously in 2017, and this has been quite interesting in that the Chinese customs data also shows that the exports have primarily been of medium-grain rice. Seeing prices in the $500 per range on average for total exports is certainly a shift from where they have been in the past.” With China becoming a top importer of rice, as well, U.S. growers are asking where the U.S. stands on its ability to tap into the Chinese import market, which up to now has been confined primarily to nearby rice-producing countries such as Burma and Cambodia. “USDA has been working actively on a phytosanitary protocol for access of rice to China, and this process has lasted for more than a decade,” Trego said. “On the U.S. side, USDA’s Animal Plant Health Inspection Service has been working with the AQSIQ, the comparable agency in China. We had it signed a couple years ago at the technical level, but we were waiting for it to be signed at the political level, which was finally accomplished in 2017. “Although the phytosanitary protocol has been signed, there remain a few steps, including a questionnaire that has been sent to the United States regarding some of the facilities as well as audits,” Trego noted. “While the phytosanitary protocol has been signed, there are still some steps to take before we can begin to see U.S. shipments of rice to China.” Judging from Chinese domestic prices relative to some of the California export prices, U.S. export quotes at times have been lower than Chinese retail prices. “That may suggest some opportunities to be able to ship to China if given the opportunity once the phytosanitary protocol and the necessary arrangements are accomplished,” Trego said.

    Types of rice

    During the question and answer session of the webinar, Trego was asked what types of U.S. rice would be competitive in China’s markets? “The predominant suppliers right now to the China market have been some of the neighboring countries that are sending long-grain rice,” she said. “As noted from that exporter export quote chart earlier, the Asian prices for long-grain are quite a bit lower than those for the U.S. “So for long-grain it would primarily be focusing on some of the high-end and niche markets. China has been importing, especially because of price, but also because of concerns on food safety, and so really targeting the high end would be helpful for that on long grain.” For the medium- and short-grain, China has a Tariff Rate Quota for medium-grain, and the U.S. is a predominant medium-grain exporter and is relatively competitive. “Given the price chart I shared earlier for Chinese retail versus U.S. prices, given the limited competition from other medium-grain suppliers in that market, there could be some great opportunities.”    
  • Rice first domesticated in China at about 10,000 years ago: study

  • Source: Xinhua| 2017-05-30 05:45:21|Editor: Mu Xuequan

    WASHINGTON, May 29 (Xinhua) -- Rice, one of the world's most important staple foods sustaining more than half of the global population, was first domesticated in China about 10,000 years ago, a new study suggested Monday. "Such an age for the beginnings of rice cultivation and domestication would agree with the parallel beginnings of agriculture in other regions of the world during a period of profound environmental change when the Pleistocene was transitioning into the Holocene," Lu Houyuan, professor of the Institute of Geology and Geophysics at the Chinese Academy of Sciences, who led the study, said. The research, published in the U.S. Proceedings of the National Academy of Sciences, was done in collaboration with Zhejiang Provincial Institute of Relics and Archaeology and the Institute of Geographic Sciences and Natural Resources Research at the Chinese Academy of Sciences. Questions surrounding the origin and domestication of rice have led to a lot of debate in the last decade. Rice remains have previously been recovered from the Shangshan site in the Lower Yangtze of China and recognized as the earliest examples of rice cultivation. However, the age of the rice fossils was derived through radiocarbon dating of organic matter in pottery shards, which can be contaminated with older carbon sources, Lu said. To constrain the age of the phytoliths, the researchers developed new ways of isolating rice phytoliths from carbon sources, such as clays and carbonate, and dated the samples directly using radiocarbon dating. It turned out that phytoliths retrieved from the early stage of the Shangshan site are about 9,400 years old. Further studies showed that approximately 36 percent of rice phytoliths at Shangshan had more than nine fish-scale decorations, less than the approximately 67 percent counted from modern domesticated rice, but larger than the approximately 17 percent found in modern wild rice. That means that rice domestication may have begun at Shangshan at about 10,000 years ago during the beginning of the Holocene, when taking into account the distance between phytolith samples and the lowest bottom of cultural strata of the site as well as a slow rate of rice domestication, Lu said. The time coincided with the domestication of wheat in the Near East and maize in northern South America, both of which are also believed to have occurred at about 10,000 years ago, when the global climate experienced dramatic changes from cold glacial to warm interglacial.
  • PM: China raises rice quota

  • A team of farmers prepare to plant rice seedlings in a paddy in Kampot province last year.   China has agreed to increase its import quota for Cambodian rice to 300,000 tonnes by next year, Prime Minister Hun Sen announced yesterday following his return from Beijing where he attended the Belt and Road initiative summit. In a post to his official facebook page, Hun Sen detailed a conversation he had with Chinese president Xi Jinping, who said China would increase its imports of Cambodian rice from the previously agreed limit of 200,000 tonnes a year to 300,000 tonnes in 2018. The message also said Xi expressed hope that bilateral trade between the two countries would reach $6 billion by 2020. Hun Sen added that during his visit earlier this week he sought to promote Cambodian trade and tourism ties with China. He added that Cambodia will seek to open trade centres in several Chinese provinces to exhibit some of the Kingdom’s export products and provide information related to tourism and investment opportunities. He called for Chinese businessmen to further invest in Cambodia, noting the country’s peace and macroeconomic stability. The Cambodian premier said he was impressed by the outcome of the Belt and Road initiative summit due to its potential to increase connectivity between countries in the region and the rest of the world. The prime minister added that 100 Chinese companies were currently looking to invest in a special economic zone near Sihanoukville, symbolising the strong economic relationship between the two countries.
  • Cambodian rice a big hit in China

  • Cambodian milled rice is becoming increasingly popular in China

    KT/Chor Sokunthea

    A senior official in China’s biggest import and export commodity center has praised the quality of Cambodian rice and called for more agricultural products – mainly milled rice – to be sold on the Chinese market.   “Cambodia’s milled rice here has become very popular among Chinese consumers because our main daily consumption is rice,” said Franklin Gnwang, vice general manager of the largest Import and Export Commodity Center (IECC) in Changsha city in Hunan province.   “It sells very well here because your quality is very high.”   Mr. Gnwang, told Khmer Times in Changsha city that after Cambodian fragrant milled rice became available for sale in his center last year, many Chinese people supported the product because of its quality compared with imports from other neighboring countries.   “Cambodian milled rice prices were a bit higher than prices from Thailand and Laos but Chinese people were still buying more Cambodian milled rice due to the good quality.   “We welcome more Cambodian rice to be available for sale here. We do hope to see more Cambodian products and Cambodian milled rice imported to Changsha,” he said.   In October last year, China signed an MoU with Cambodia to import rice with an export quota of 200,000 metric tons.   Mr. Yoy Jiade, an official of the Hunan Jiade Group which owns the IECC said that Cambodian products are at the early stage entering the Chinese market and he hopes to see more imports as Cambodian milled rice is very popular in China.   “I think right now Cambodia is paving the way,” he said.   “In the future we are looking about 1,700 different commodities into our zone. Of course your milled rice is already displayed here and we will make sure that your product is very popular.   “I call on your businesses to come to do business here or to look for partners to do business with.   “Every year we organize 15 to 16 business activities to allow all business people to come together.   “In the middle of next month there is going to be another event, an exhibition of global commodities so business people from around the world will display their products here.”    Mr. Yoy said Cambodian businesses can rent space in the center to display products directly or they can cooperate with a local partner to promote more Cambodian products in China.   He said his center also provides tax incentives for foreign business people.   “We welcome all business people from foreign countries to be here because we provide the whole chain of services from transport to customs clearance, land, air and sea transport and warehousing within our import-export free trade zone.   “I would like your business people to come together to rent a display booth to interact with local customers.   “Of course, you can also cooperate with a local partner as we have a preferential policy for them,” he added.   Mr. Gnwang said, “I think your export volume of 100,000 metric tons per year to the Chinese market is very small so we want to import more rice from Cambodia.”   Cambodia exported 46,387 metric tons of milled rice to China in the first two months of 2017, up 127 percent over the same period last year.   China is the top buyer of Cambodian rice, followed by France, Poland, Britain and the Netherlands, the Agriculture Ministry said.   
  • 70% of rice exported to China

  • Submitted by Eleven on Mon, 02/13/2017 - 17:09
    Myanmar exports rice to over 50 countries and more than 70 per cent of exported rice goes to China, according to the Ministry of Commerce.
    Traders export rice to China via both border routes and shipping lanes but use the former more.
    Between April 2016 and January 2017, the country exported 1.15 million tonnes of rice and broken rice and earned more than US$ 370 million. But that amount is less than that of the same period last year by about 150,000 tonnes. In 2015-16, the country exported 1.5 million tonnes of rice.
    The ministry is hopeful that it will meet last year’s record since it has received offers for government-to-government rice-trade deals.
    Assistant permanent secretary Khin Maung Lwin at the ministry said: “Foreign countries have offered to buy rice under a government-to-government deal. Sri Lanka now wants to import Myanmar's rice.”
    Five companies have won contracts for the export of 50,000 tonnes of rice to Sri Lanka by June, according to the Myanmar Rice Federation.
    Chinese authorities have confiscated the rice imported from Myanmar at the border as smuggled goods due to restrictions on imports, and the Muse border trade halted temporarily due to armed conflicts between government forces and armed rebels in November reducing total export.
    Translated by Nay Thiha