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.
Highly water- and energy-scarce countries like India and Pakistan are losing huge amounts of groundwater and energy because of their food exports.Pakistan is the world’s largest exporter of groundwater through its grains export. India is the third largest. Going by per capita availability, Pakistan is almost a water-starved country. The parts of India from which most grains are exported are seriously water-scarce. In 2010, Pakistan exported grains that had cost 7.3 cubic km of groundwater to grow. India exported grains that cost it three cubic km to grow. India is also the world’s largest extractor of groundwater. In 2010, 75 cubic km of groundwater were extracted in India. The trifecta of groundwater depletion for water-intensive crops, grain exports and the use of electricity for mining groundwater add up to a perfect recipe for disaster. Climate change impacts are worsening the situation. The recent report that the new government in (Indian) Punjab has sought New Delhi’s permission to sell excess electricity to Islamabad has been welcomed in power-starved Pakistan. But this electricity will do much more than keep Pakistanis cool during the torrid summer. It will accelerate groundwater pumping in India. Not just precious groundwater, India and Pakistan are also effectively exporting energy when they export grains. Surface water and soil moisture also play big roles in agriculture. Many countries save this water by importing grains. For those who do not, such thoughtless export of groundwater should be the biggest worry, because the timescales for recharging groundwater are significantly longer than those for surface water and soil moisture. The sobering numbers on groundwater depletion and international food trade have been reported in the journal Nature by Carole Dalin and colleagues. About 11% of all groundwater depletion over the planet is involved in international food trade. Over two-thirds of that depletion is by Pakistan, the US and India. Food-water-energy nexus This food-water-energy nexus becomes critical in South Asia. On the one hand, water availability is already more uncertain due to climate change. On the other, there seems to be no accounting for the energy export through agricultural export, though both India and Pakistan are energy deficient countries. Though India has a huge renewable energy development plan, both countries also have major plans to generate energy from coal. That can only worsen the climate change situation. Other unintended consequences of groundwater depletion include land subsidence and saltwater intrusion in addition to potential loss of soil health. Global food supply chains are becoming more susceptible to the effects of climate change. According to the Intergovernmental Panel on Climate Change, one effect is a rise in intensity and frequency of storms. The Philippines has faced an increasing number of typhoons in recent years. Whenever one takes place, it affects food packaging around the world, because the Philippines is a supplier of coconut based food packaging material to almost all other countries. Groundwater depletion in India In India, wheat accounts for 35% of the total groundwater depletion and rice for about 25%, while fodder, cotton and sugarcane make up the rest. Average groundwater consumption to grow one kilogram of wheat is 812 litres, rice 200 litres (because it is far more dependent on surface water) and maize 72 litres, respectively. In the 2016-17 financial year, India is estimated to have exported 3,00,000 tonnes of wheat, 10.7 million tonnes of rice and 700,000 tonnes of maize. When considering grain exports, it should be noted that the actual water exported is what is embedded in the grains themselves. This is much smaller than the total water used to grow crops, of which a small fraction of the water used in growing crops is recoverable – as it seeps back down to the water table. A much larger amount of water expended is simply lost to evaporation. This loss drives down groundwater tables, and is key to understanding how water intensive crops affect groundwater in a region. Thus the water footprint is critical to monitor as far as food exports are concerned, especially for countries like India and Pakistan that face persistent domestic and international water conflicts. Even the embedded water approach employed by Goswami and Nishad points out that India exports a total water of around 25 cubic kilometres in food exports (not separated into surface and groundwater). The bad news is still that the near self-sufficiency in food production comes with a penchant to export some of it with hard-to-estimate externalities like groundwater depletion and salinisation as well as degradation of soil health and the environment. Exports of meat, sorghum and fruits are significant additional factors. India is also among the largest beef exporters and beef is easily the most water – and grain-intensive food group per calorie. International food trade is a reality of a global economy and India has no choice but to partake in it. But the unintended consequences in the food-water-energy nexus can be ignored only at grave risk to national security. State-level disparities Additional related factors for India are state-level disparities in groundwater depletion. Dry regions of Gujarat and Karnataka are exporting waters to wet regions of the country to satiate the thirst of those who can afford bottled water and soft drinks. India’s middle class continues to grow and its taste for meat and fish continues to place greater demand on water and fodder. India has taken bold steps to be part of the global community in combating climate change by committing to impressive Nationally Determined Contributions to control carbon emissions. Equally bold steps are being taken in terms of investing in renewable energy like solar and wind. India must track the energy intensity of its GDP and the carbon-intensity of its energy production. But it is clear that India must also be vigilant about the groundwater-intensity of its food production as well as the groundwater and energy exports incurred by its grain and meat exports. For its economic growth and development to be sustainable, unintended cascades in the food-water-energy nexus must be diligently avoided. Raghu Murtugudde is a professor of atmospheric and oceanic science and Earth system science at the University of Maryland and is interested in the human actions and reactions in the context of climate variability and change. This article was originally published on The Third Pole. Read original here.
Welcome to Rice News Today!
The access to our website is free and will remain free always for most of the contents.
However, you need to create a new account to access the website. It will not take much of your time to create a new account and you will have an access to your favorite website to browse rice news, quick stats, latest stats on basmati, downloads and a lot more at one-place!
Thanks & have nice rice news today exploring!