Vietnam exported 1.48 million tons of rice worth $715 million in the first three months this year, up 24 percent in volume and 10.5 percent in value against the same period last year, according to the Ministry of Agriculture and Rural Development.
The ministry said stable global demand and high transportation costs resulted in March’s price hike.
Vietnam’s 5 percent broken rice was sold at $415-420 per ton in late March, up $20 per ton from the beginning of the month. On average, the rice has cost $414 per ton in the world market in March, up $16 per ton against February.
Meanwhile, Thailand’s 5 percent broken standard rice was sold at $408-412 a ton, down $16 from the beginning of the month as the baht continued to drop against the dollar.
Vietnam exported over 6.2 million tons of rice for 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 in 2020 to $526.8 per ton in 2021, according to the agriculture ministry.
Sri Lanka economic crisis pushes price of food items to ‘unbearable levels’, rice now selling at over Rs 200 per kg
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.
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 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.
Higher freight, return of Thailand to international market weigh on supplies from India
Rice farmers from Mwea Irrigation scheme have vowed not to pay the Sh15,000 levies imposed by the Water Resource Management Authority terming it exploitative.The farmers argue that the new regulations which were gazetted this year will increase the levies from the current Sh3,000 repair and maintenance fee paid to National Irrigation Authority to Sh15,000 Warma. If the new regulations will be fully implemented, the Authority is set to collect Sh450 million from the 30,000 acres under irrigation at the expansive Mwea Irrigation scheme. Led by their Chairman Morris Mutugi, the farmers have vowed not to pay a single cent to the authority, saying the regulations were published in the Kenya gazette secretly without proper public participation “The irrigation authority has failed on its mandate to ensure farmers have adequate water for irrigation as well as environmental conservation and has resulted in harassing farmers who fail to pay water levies,” he said. Currently, Mutugi said, farmers are grappling with a lack of adequate water for irrigation due to the drought that the country is facing. “Where will farmers get such a huge amount of money, with the high cost of fertilizers, pesticides and other costs of production, this is exploitation,” he said. Local leaders led by Mwea MP Kabinga Wachira have castigated the authority for continued burdening of farmers with punitive charges.
Farmers selling below MSP of ₹1,960 a quintal
Drop in pricesThe 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.
To fertilize or not to fertilize: A delicate balance between chalky rice grains and excessive protein content
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.
Rice markets reactBut 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 spreadsBecause 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 forcesDespite 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.
Buyers in Vietnam, China and Indonesia switch to the foodgrain, but its rates rising sharply
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 feasibilityMaize 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 advantageDelhi-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.
- Its long grains
- Its distinctive texture
- Its rich fragrance
- Its nutritious content
Scope of dealWithin the scope of cooperation, Angimex will transfer the sample rice field to the enterprises of the Republic of Sierra Leone. The sample rice field is Angimex’s first successful factor to ensure high-quality rice input. The expansion of the large sample rice field is one of the solutions to increase the value of rice for export, according to the policy of the Ministry of Agriculture and Rural Development (MARD). When farming on the large sample rice field, farmers will simultaneously sow each high-yield and high-quality rice variety in the same field. Therefore, this combination of high-quality rice production and rice field expansion brings practical benefits to farmers, including changing production mindset and improving economic efficiency. Aiming at improving the quality of rice seeds in the future, the agricultural services of Angimex give an emphasis on providing farmers with in-depth knowledge and cost-saving methods during varietal selection, cultivation, and harvest. Angimex’s experts with rich experience in the field of agriculture will train farmers to master cultivation techniques and answer the farmers’ questions during the farming process.
"In total, the expeditions to the Kutukú region in southeastern Ecuador involved 1,200 trap nights, but only one specimen of the new species Mindomys kutuku was found," says Dr. Claudia Koch, curator of herpetology at the LIB, Museum Koenig Bonn, explaining the effort that went into locating the rare animal. From the collected specimen, the dry skin, skeleton and tissue were preserved for the collections. Preservation will allow future research to detect environmental changes, learn more about the ecology of the animals and plants -- and securely document the new species description, which was published in late February in the journal Evolutionary Systematics. The rice rat genus Mindomys was previously considered monotypic and included only the type species Mindomys hammondi. This species is known from only a few specimens, all of which were collected in the foothill forests of the Andes in northwestern Ecuador.
WASHINGTON, March 16 (Reuters) - The World Bank on Wednesday said a number of developing countries face near-term wheat supply shortages due to their high dependence on Ukrainian wheat exports that have been disrupted by Russia's invasion.
The World Bank said in its latest Trade Watch report that Gambia, Lebanon, Moldova, Djibouti, Libya, Tunisia and Pakistan are the most exposed to the disruptions of wheat exports from Ukraine, which make up roughly 40% or more of their wheat imports.
"These importers will have trouble quickly switching to alternative sources, possibly leading to supply shortages in the short run," the World Bank said.
The grain supply situation has been worsened by Russia's imposition of export curbs on wheat and other cereal grains to countries outside of fellow Eurasian Economic Union members Armenia, Belarus, Kazakhstan and Kyrgyzstan.
Russia was the top wheat exporter in 2018 and Ukraine the fifth largest, according to World Bank data. The two countries together make up about a quarter of world exports.
Western sanctions on Russia over its invasion of Ukraine do not specifically target Russian grain exports, but sanctions that prohibit dollar and euro transactions with top Russian banks make trade finance more difficult.
Aside from the direct supply shortages to Ukraine's biggest grain customers, higher market prices for wheat will affect middle-income countries across the globe, the World Bank report said.
The United Nations Food and Agricultural Organization's Cereal Price Index in February was up 14.8% from a year earlier, and the World Bank said wheat futures prices had surged 60% since the start of the conflict.
"Moreover, disruptions to exports of wheat will affect markets for corn and rice, which are wheat substitutes, benefiting net exporters and harming net importers of those products," the bank added.
Disruptions caused by the war in Ukraine also could challenge a strong global trade recovery in 2021, with goods and services trade now exceeding pre-pandemic levels, the World Bank said.
Overall trade in 2021 surged by 26% over 2020 levels and by 17% over 2019 levels, with trade values exceeding 2019 levels in all regions, except for transportation equipment, the World Bank said.
Fortunately, in this decade, synthetic pesticides like dichlorodiphenyltrichloroethane (DDT), endrin, and others entered the market. Another spectacular discovery was that of the high-yielding hybrid wheat and rice. The high-yielding wheat was discovered by Norman Borlaug (Nobel Prize winner) and was rapidly adopted by India largely due to the pioneering work of Dr Swaminathan and MV Rao.Swaminathan is remembered as the ‘father of Green Revolution’ and Rao as the “wheat man of India”. With hybrid varieties and synthetic fertilisers and insecticides, the production of rice per acre increased to 40 quintals from 10 quintals, a tremendous victory in fighting hunger. There were also some setbacks during the 1960s and 70s. India’s budget (read agriculture) is dependent on the monsoon season, as George Curzon pointed out in 1905. Due to drought from 1964-70, India had to import food and became heavily dependent on the United States for wheat supplies under the Public Law 480 agreement. At one time, we were eagerly waiting for the arrival of a ship full of wheat at the Mumbai port. The late former Prime Minister Lal Bahadur Shastri gave a call to “miss a meal” on Monday nights as a part of the Jai Kisan movement. Green Revolution Ultimately, the Green Revolution was initiated. The theme of the initiative was to boost food grains production of rice and wheat using any method and at any cost. Success followed many setbacks. Biologist-turned-science-writer Rachel Carson published a seminal book called Silent Spring, focused on the harmful effects of pesticides, primarily DDT on our health and environment. DDT was found to be non-biodegradable and its remnants were traced everywhere — in our body, soil and water. Studies showed its effects on liver and kidneys, including causing cancers. Scientists rapidly found alternatives and advocated Integrated Pest Management (IPM). IPM is a need-based use of pesticides, alternating crops, intercropping as well as usage of bird perches where birds rest, detect insects on crops and eat them. After DDT, other insecticides like monocrotophos, metasystox, cypermethrin came into use but these are equally harmful to humans, livestock and fish. The “turn to nature” to get pesticide-free food has become a priority. The order of the day is organic farming — natural farming or zero-budget agriculture — which is welcome and most wanted in the agriculture sphere.
Not without setbacksThe first and foremost sound solution is the usage of organic manures from compost, cow dung and ploughing and mulching of leguminous plants. Several plant-based botanical pesticides were discovered. Neem oil, neem kernel extracts, which contain azadirachtin, is the active principle discovered by Germans, the United Kingdom and US. Neem revived the hope of using harmless pesticides but its availability is very low. Several commercial formulations were available in India. Karanj oil (Karanjin active principle), several leaf extracts like Adathoda and garlic-buds aqueous extracts are found to be effective to some extent as active repellants but they cannot replace synthetic pesticide. There is a growing awareness in India to cultivate the crops by natural fertilisers such as cow dung, leguminous green manures, compost, vermicomposting and biopesticides fungi, bacteria and virus-based pesticides like Bacillus thuringiensis, Pseuedomonas aegle, Trichoderma verdi. These bio-pesticides are chiefly produced from diseased insects and soil, among other things. However, it only has limited use on too few fruit and vegetable crops. The problem with the bio-pesticide production is that it is confined to a small industry with no standardisation and doubtful efficacy. Several symposia are held by non-governmental organisations, ideal farmers and governments. Many agricultural magazines hail the miracles of higher yields from organic farming. Particular mention should be made about jeevamrutham — a recently designed concoction called Ramabanam, which gained prominence. These concoctions are made from jaggery, ginger, cow milk, cow curd, cow dung, cow urine, asafoetida. All the ingredients are mixed and fermented for a week, diluted and sprayed on crops. It is claimed that the product can be used as a fertiliser and a pesticide. The farmers who experimented were quick to endorse the products. Their studies on organic farming presented in symposia on organic farming, however, were confined to few vegetables like tomatoes over a limited area. The yield, the farmers said, is high but not quantified with randomised block design studies. The active principle of such concoctions is unknown and doesn’t stand scientific security. Moreover, the cost of these concoctions is as high as pesticides and starting products like cow dung are not available in plenty as of today. For about 90 per cent Indians, rice or wheat are almost exclusively the staple food. So, encouragement of organic farming in a country like India will be meaningful, if applied for rice / wheat. Studies on these crops should also be prioritised. The inconvenient truth, as many farmers put it, is that the land is infertile now without urea in the first few days of rice plantation, and with no application of synthetic pesticides, the entire crop is prone to pests resulting in no yield. The challenge for agriculture scientists is how to maintain the current volume of yield (40 quintals per acre) with organic farming. We need to take with caution some sporadic success stories of organic farming on vegetables and fruits grown in an acre or two. Thus, all the available tools we have with us, like bio-fertilisers, bio-pesticides, green manure and vermicompost, their limitation is discussed herein. Constraints of sustainable organic farming are: None of the organic farming tools are available, especially for organic farming of rice that is the staple food in India. Importantly, the whole organic farming depends on cow dung, which is dwindling even as we are particular about their protection (gosamrakshana). The staple food for cattle is rice straw. While we claim rice production is high and in surplus, the cost of rice remains very high and is not affordable for the poor man. Thus, the increase of cattle population is linked to paddy by rice production. Both are interlinked. Quantification for pesticide residues in food should be done by High Performance Liquid Chromatography / Mass Spectra / Mass Spectra (HPLC / MS / MS) method. The sophisticated method has been adopted by advanced countries but is still not in use in India. The real structure of crop production is dependent on high-yielding hybrid seeds. Continuous research on high yielding varieties by cross breeding with pest resistant wild varieties is essential.
Compost from urban areas and vermicompost, in particular, don’t seem to have been examined for pesticide residues and harmful trace elements such as arsenic, cadmium, mercury and lead is needed by using HPLC /MS / MS method and atomic absorption spectroscopy.Introduction of transgenic varieties is not recommended for organic and natural farming. Therefore, it is wise to use the first three sprays on crops with natural organic materials and the last two sprays with synthetic pesticides. Research on organic farming should be done using robust scientific methods only. Surprisingly, rice was found to contain high pesticides and trace elements. This technique should be standardised in India. Our slogan should be “natural and organic farming with high yields at an affordable price to the common man”. India’s wheat exports surpassed $872 million (2021-22) and rice exports in 2021-22 is likely to surpass the record $10 million, according to the agriculture department of the Government of India.
Rice millers in the country are currently battling the rising cost of diesel, petrol and erratic electricity supply.
The situation has pushed the cost of processing rice at the mills to an unprecedented level, and this may translate to an increase in the final product in the market.
Findings in the market showed that a 50kg of milled rice, which some months ago sold between N25,000 and N28,000, now goes up to N32,000 for some of the popular brands, as at the time of this report.
For weeks now, power supply across the country has been epileptic and some small scale millers who mostly operate during the day are now forced to stay awake anytime of the night to use electricity anytime it comes.
Major millers who rely heavily on diesel to run their factories also face exceptional increase as the product has now reached a record high of N600 per litre. In some places, reports showed it goes for up to N650.
They said cost of production had increased, leading many of them to suspend production.
Alhaji Ali Sarkin Noma, owner of Ganzaki Rice Mill in Jalingo, told Daily Trust on Sunday that a litre of diesel now sold at N600, as against N400 few weeks ago.
He said there was also the scarcity of diesel and poor power supply from the national grid.
Sarkin Noma explained that consumers of locally processed rice would pay more because of the increase of diesel and paddy rice.
According to him, they purchase paddy rice from markets across the state and transport fares are up.
He said a 50kg bag of locally processed rice was sold at N23,500 before the increase of diesel, and now, millers have no option than to increase their prices in order to remain in business.
Musa Garba, another miller, also told Daily Trust on Sunday that he reduced his production level from 600 bags of paddy rice to about 100 bags daily because of high cost of diesel and poor power supply.
He said consumers of locally processed rice would pay more if the current trend of high cost of diesel was not addressed.
A large-scale irrigation farmer, Yahaya Mafindi, said many rice farms had dried because farmers could not afford to buy both diesel and petrol to water their rice farms.
Yahaya Mafindi stated that rice millers got supply of paddy rice from irrigation farmers this time and many farmers are unable to fully cultivate their farm, which means there will be less paddy rice for the millers.
Meanwhile, findings revealed that a liter of petrol is now sold at N300 while diesel is sold at N600 in Jalingo.
In Kano State, it was gathered that all the three categories of rice mills operating in the state are virtually affected by the ongoing fuel scarcity. The mega, medium and small scale mills in the state are all complaining about the current fuel scarcity.
According to the proprietor of Premier Rice Company, Ilyasu Nazifi, an engineer, many rice mills are running on diesel, which is currently selling at N500 per litre, which he said had made production very expensive. He explained that the fuel hike in price and its scarcity had affected not only production but other logistic aspects of the rice value chain.
He further revealed that the price of rice had not changed as rice has been one of the main stabled commodities in the country. He, however expressesed worry that rice mills would be left with no option than to increase the price should the hike and scarcity persist longer than necessary.
He called on the authorities concerned to arrest the situation before it gets out of hand and result in an increase in the price of milled rice.
It was also revealed that most rice mills across the state are really finding it very difficult to keep the business going due to issues surrounding the current fuel scarcity.
Malam Hannafi Alhassan, an operator of a small rice mill in Mariri Kumbotso Local Government of Kano State, said he had to increase the processing charges per bag of paddy to N3,000 from N2,500 due to the hike in the prices of diesel and petrol, as well as its scarcity.
Another small-scale rice mill operator Habu Baffa Kiru said he had stopped milling for the mean time pending the availability of diesel, as he claimed he could not afford to continue milling with the current price of diesel.
The situation is not different in Katsina State as the situation resulted into lean revenue for the millers in recent months.
Alhaji Mustapha Mu’azu Maiauduga, the manager of Beto Rice in Malumfashi, said that unlike before, people were less patronizing their packaged rice ostensibly because of the price.
“The assumption of every Nigerian is that when rice is locally produced and milled, its price has to come down, but unfortunately we cannot sell a 50kg of milled rice less than N22,000 due to surge in the cost of production. Diesel is now over N400 a litre and there is no consistent electricity supply to operate our machines,” he said.
Another rice miller in Funtua, Abdulrazaq Isma’ilm said because of high cost of production they had since resolved to operate as service providers.
“We now don’t mill rice for sale directly here; rather, we mill for individual consumers and rice sellers who bring in their paddy. This, in our consideration, is more profitable to us as we only charge N2,500 per bag of paddy rice. We have regular customers across Faskari, Kankara, Funtua, Bakori and Danja local government areas,” he said.
On whether they operate on diesel or electricity, Abdulrazaq said for the business to be sustained one would be on electricity, otherwise cost of diesel would force the business to fold up.’
Daily Trust on Sunday observed that people from far and near now prefer to go for local rice sections of Dandume, Funtua or Bakori to make choice of the stable instead of going for the packaged one which now costs above N22,000 per 50kg.
Rice millers in Kaduna State are also expressing worry over what they described as high cost of production due to poor and epileptic power supply, as well as the scarcity and high cost of petrol and diesel.
Our correspondent reports that small-scale processors who rely on firewood for the parboiling process of paddy rice say a ban on tree felling in Kaduna State has equally impacted on production cost which has resulted in the high price of rice in the market.
Imam Saidu, who operates a local rice mill in Kaduna, described the situation as sad, saying that rice, one of the major staple foods in Nigeria, is now becoming unaffordable for low income earners.
He said the rice sector, like other agricultural sectors, was debased by security and infrastructural challenges, as well as economic challenges.
“Our farmers are unable to produce the required paddy rice because of the insecurity in most parts of the rice producing states. Now, with the little we are able get from farmers, the cost of processing the rice is now high because our machines work on diesel since the government’s power is inefficient and unreliable, especially at the moment,” he said.
Daily Trust on Sunday gathered that epileptic power supply, coupled with scarcity and high cost of petrol and diesel, has surged the price of rice in the market. Our correspondent gathered that a bag of 50kg of rice which sold at N22,000 late January is now sold at N27,000.
Also speaking in Kaduna, Alhaji Idris Sarkin Alhazan Rigachikun, a local miller said, “We used to process and bag each 50kg of rice at N2,200, but we now do it at N3,000. There is no electricity, so we have fallen back on the generating set, and you know the present situation in Nigeria.”
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.
Visualizing The World’s Biggest Rice ProducersIt’s hard to overstate the importance of rice to the world. As a staple food, over half of the global population depends on the crop as a major part of their diet. In fact, rice is considered a vital part of nutrition in much of Asia, Latin America, Africa, and the Caribbean, and is estimated to provide more than one-fifth of the calories consumed worldwide by humans. This graphic highlights the world’s 10 biggest rice-producing countries, using 2019 production data from the UN’s FAOSTAT and the USDA.
Which Countries Produce the Most Rice?With 756 million tonnes produced globally in 2019, rice is the world’s third-most produced agricultural crop behind sugarcane and corn (maize), which both have a wide variety of non-consumption uses. Just 10 countries are responsible for a bulk of global rice production:
|Country||Tonnes Rice Produced (2019)||% of Total|
Feeding A Growing WorldWith 84% of rice being harvested in just 10 countries, it’s clear that many countries globally must rely on imports to meet domestic demand. In 2019, India, Thailand, Pakistan, and Vietnam were large net exporters of rice, shipping out nearly $16 billion of rice combined. Other countries including Iran, China, Saudi Arabia, and the Philippines consume above production numbers and rely on imports to meet their needs. And not everything makes it from plant to table. In developing countries especially, estimates of 8–26% of rice are lost due to postharvest problems and poor infrastructure. As the global population continues to grow, rice will continue to be a key source of calories around the world—and as our diets change, it’ll be interesting to see how that role shifts in the future.
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.
MUMBAI, Feb 11 (Reuters) - India's basmati rice exports plunged a fifth from a year ago to the lowest level in four years in 2021 as top buyer Iran slashed purchases after its rupee reserves dwindled, government and industry officials said.
The country's basmati rice exports in 2021 fell 20% from a year ago to 4 million tonnes, the lowest since 2017, according to government data.
Shipments to Iran, the biggest buyer of India's basmati rice, plunged 26% from a year ago to 834,458 tonnes, the data showed.
"Iran wasn't active in the market for a few months last year after its rupee reserves with Indian banks depleted," said a Mumbai-based dealer with a global trading house.
Iran previously had a deal to sell oil to India in exchange for rupees, which it used to import critical goods, including agricultural commodities, but New Delhi stopped buying Tehran's oil in May 2019 after a U.S. sanctions waiver expired.
Tehran continued using its rupees to buy goods from India, but without crude sales, which brought down Iran's rupee reserves. read more
There was slowdown in exports in the middle of 2021 but in the last two-three months buying from Iran, Saudi Arabia and other key buyers have picked up, said Vijay Setia, former president, All India Rice Exporters Association (AIREA).
India, the world's biggest rice exporter, mainly exports non-basmati rice to African countries and premier basmati rice to the Middle East.
The country total rice exports jumped nearly 46% in 2021 from a year ago to a record 21.42 million tonnes as Bangladesh, China and Vietnam increased purchases.
Basmati rice production in 2021 fell around 15% from a year ago because of lower area and untimely rainfall during harvesting season, Setia said.
"Export prices of basmati rice have gone up by 20% because of lower production, but still demand is robust for February and March shipments," Setia said.
‘DMK government keen on supply of quality rice through PDS outlets’
Quality riceThe DMK government had promised to supply quality rice through PDS outlets. It had been decided to set up a state-of-the-art rice mill at Chinnamanur for this purpose. It would procure paddy from farmers and send the rice to ration shops from here directly. This is going to be a reality soon, he said and added that the modern rice mill would come up on an outlay of ₹ 108 crore. For the benefit of the plantain growers, the government had established a cold storage facility. It has a great impact so that they would establish more such facilities in different locations in Theni district including Uthamapalayam, Bodi and Cumbum.
The government strived hard to maintain the storage level in Mullaperiyar reservoir at 142 feet. He recalled the legal battle undertaken by the DMK government and assured the farmers that the Chief Minister M.K. Stalin would not let them down at any cost.The party MLAs Cumbum N Ramakrishnan and Andipatti Maharajan were present. Earlier, Mr Periasami introduced the candidates to the voters. He also addressed meetings at different locations in Theni district.
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.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.
Journey towards food self-sufficiencyChina 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.
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.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.
Policy changes over the last few yearsOver 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.
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.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.
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.CCP has instructed the Ministry of Agricultural and Rural Affairs to provide the government’s direct support to leading private seed enterprises.
Challenges aheadDespite 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.
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?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.
ConclusionEver 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?
Shipments up 52% in April-Dec at 12.53 million tonnes clocking $4.48 billion
Top buyersLargest 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 projectionsAs 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.
Rice prices in the country are on the rise due to high demand and increased prices in the international market, says Agriculture Minister Dr Abdur Razzaque.
“We are trying to figure out how to be self-sustaining in terms of grain food production,” he said during a meeting on Thursday.
The minister said that the government did not need to import rice until 2017 and any imports were made by private traders.
“Then the import tax was reduced due to the floods, which in turn led to rice prices falling,” he said.
He added that the government is undertaking initiatives to increase production in line with the demands.
“We have also discussed how to increase the production of Boro, Aman and Aush rice,” the minister said before adding Bangladeshi scientists have invented the Bri-89, 92 which yield high produce.
Professor Apichart Vanavichit, Director at the Rice Science Center in Thailand, highlights the attempt to develop rice that directly benefits well-beingRice, a staple food for the majority of countries, has always carried health risks. Eating rice in excess of moderation can cause risks particularly when it comes to sugar in the blood. Rice is actually the basis of 50% of daily energy needs for the population of the world. Did you know that purple rice used to be considered such a delicacy, it was only served to Emperors and used as a base for foods made to be given to spirits? Rice has a rich, fascinating history, which rises up to meet the present day with advice and insight. In a pioneering project, Professor Vanavichit is part of a push to create an easy-to-grow, healthy strain of rice. Wholegrain, pigmented rice like Riceberry rice is one of the most likely sources of healthy nutrition. However, when it comes to wholegrain rice, it can be difficult to balance taste with nutritional and health benefits. While the rice is infinitely better for the human body, it also often lacks the aromatic appeal of a classic, white rice – which is also melded into traditions across the world as the norm. To change a norm this deep-rooted, the new form of rice has to manage taste, health benefits and be as easily accessible as existing forms of rice. The intricate science behind how Riceberry rice impacts human health is at the forefront of food technology, which will shape the future of diabetes and hypertension management if it can be successfully introduced to global markets. In addition, rice growing usually requires a heady mix of chemicals – contributing to climate change, as the demand for this product remains intrinsically high. Organic forms of rice, while benefitting future health, can also protect the Earth from the need for excessive pollution.
Thailand became the world’s third-largest rice exporter by shipping 6.12 million tonnes of rice last year, up 6.7 per cent year on year, Charoen Laothamatas, president of the Thai Rice Exporters Association, said on Monday.hough the export volume has increased, the total value of exported rice in 2021 dropped 7.1 per cent from the previous year, or from $3.7 billion [THB116.04 billion] to $3.4 billion [THB107.75 billion],” he said. Meanwhile, India still remains the top rice exporter for four consecutive years with 19.5 million tonnes of rice exported in 2021, up 33.9 per cent year on year. Vietnam came in second with 6.24 million tonnes exported last year, dropping 5.2 per cent year on year. Pakistan and the United States, meanwhile, are in fourth and fifth places, with 3.93 million tonnes and 2.85 million tonnes of rice exported in 2021, respectively. The Thai Rice Exporters Association also reported that in December 2021, Thailand exported 729.12 tonnes of rice valued at THB12.5 billion, down 3.5 per cent and 1.9 per cent respectively from the same period in the previous year. “Rice export dropped towards the end of last year in both quantity and value because buyers tend to slow down after they have built up a stock of rice,” Charoen said. Thailand’s biggest rice buyers in 2021 include China, Japan, United Arab Emirates, the Philippines, Congo, Syria, Benin and Angola. “We expect rice export in January to be around 700,000 tonnes, while the target for 2022 is set at 7 million tonnes,” said Charoen. “Positive factors for rice export this year include the recovery of the global economy, increasing demand in Africa, Asia and the Middle East, and our estimate that the baht will stay steady at THB33 per US dollar, which will make our price competitive against other exporters.”
Organic Rice Protein Market to Reach $307.2 Million by 2028 – Powered by Increase in Consumer Awareness about Healthy Diet
Pakistani rice traders are reportedly unhappy after they found out that Pakistani rice is being sold in the international market with a "made in India" tag.Speaking to Deutsche Welle (DW) a German international broadcaster, the Managing Director of Charagh Group of Companies Khalil Ahmed said that "Indians in Muscat, Saudi Arabia, and Dubai purchase rice from us but sell it under their own brands and labelling." Pakistan's rice export association has filed a lawsuit against Indian rice purchaser companies in an international court. But since the case is still pending in court, the association has declined to speak with DW about the matter. According to rice traders, the issue is not just about branding. Ahmed explained that as a result of crop cultivation when farmers sow the seed, rice becomes scarce in the market, which naturally increases the price of rice. Once the crop has reached maturity, the farmer begins harvesting. He stated that 10% to 20% of paddy is broken during the reaping process due to a lack of modern equipment. Once the rice crop reaches the mills, the crop must be dried and husked, which requires more modern machinery. Similarly, the rice breaks during the process and all of these factors add to the cost.
This year, Pakistan will export 36 million tonnes of rice to a lot of different countries, with basmati rice accounting for 20% of the total.
India is the largest rice exporter in the world, netting $6.8bn in annual earnings, with Pakistan in fourth position at $2.2bn, according to the United Nations figures.The two countries are the only global exporters of basmati. “(India) has caused all this fuss over there so they can somehow grab one of our target markets,” said Murtaza, whose fields are barely five kilometres (three miles) from the Indian border. “Our whole rice industry is affected,” he added.
From Karachi to Kolkata, basmati is a staple in everyday diets across southern Asia.It is eaten alongside spicy meat and vegetable curries, and is the star of the endlessly varied biryani dishes featured at weddings and celebrations across both countries, which only split following independence from British colonial rule in 1947. They have since fought three full-scale wars, with the latest skirmish in 2019 involving the first cross-border air attacks in nearly 50 years. Diplomatic relations have been tense for decades and both countries routinely attempt to malign each other on the international stage.
‘Very important market’Pakistan has expanded basmati exports to the EU over the past three years, taking advantage of India’s difficulties meeting stricter European pesticide standards.
It now fills two-thirds of the region’s approximately 300,000-tonne annual demand, according to the European Commission.“For us, this is a very, very important market,” says Malik Faisal Jahangir, vice-president of the Pakistan Rice Exporters Association, who claims Pakistani basmati is more organic and “better in quality”. PGI status grants intellectual property rights for products linked to a geographic area where at least one stage of production, processing, or preparation takes place.
Indian Darjeeling tea, coffee from Colombia and several French hams are among the popular products with PGI status.It differs from Protected Designation of Origin, which requires all three stages to take place in the concerned region, as in the case of cheeses such as French brie or Italian gorgonzola. Such products are legally guarded against imitation and misuse in countries bound by the protection agreement and a quality recognition stamp allows them to sell for higher prices. India says it did not claim in its application to be the only producer of the distinctive rice grown in the Himalayan foothills, but attaining PGI status would nevertheless grant it this recognition.
After years of procrastination, the Pakistani government in January demarcated where basmati can be harvested in the country.It also announced it would assign similar protected status to pink Himalayan salt and other vaunted agricultural products. Pakistan hopes to convince India to instead submit a “joint application” in the name of the common heritage that basmati represents, Jahangir said. “I am confident that we will reach a (positive) conclusion very soon… the world knows that basmati comes from both countries,” he added. If an agreement cannot be reached and the EU rules in India’s favour, Pakistan could appeal to the European courts, but the long review process could leave its rice industry in limbo.
Rice Exporters Association of Pakistan say the statement regarding no demand of basmati rice in the world is misleadingKarachi: Rice exporters on Thursday came hard on a Prime Minister’s aide for underestimating the export potential of Pakistani basmati that fetches the country more than $800 million. Rice Exporters Association of Pakistan (REAP) said the statement regarding no demand of basmati rice in the world is misleading, as Pakistan exports basmati worth more than $800 million every year. REAP expressed serious concern over a public statement by Special Assistant to Prime Minister on Agriculture Jamshed Cheema that demand in export markets is mostly for coarse rice while the Pakistani farmers are intoxicated with basmati rice and should shift to production of coarse rice. The aide said basmati rice should only be produced for local consumption. “The statement of the special assistant is patently false and misleading,” Qayum Paracha, chairman of REAP said in a statement. “REAP would like to apprise that basmati is sown in Punjab since 17th century and due to its unique aroma, our basmati rice acts as Pakistan’s ambassador globally,” Paracha said. Pakistan’s current basmati rice exports are around $800 million per annum out of total $2.3 billion rice exported per annum. Hundreds of thousands of people in the whole supply chain of basmati rice from farmers, millers and work force to exporters and brand owners are dependent on the crop, he added. REAP has announced a reward of Rs10 million to any rice breeder, government or private sector, who comes up with high productivity basmati rice new seed. “Instead of encouraging research and yield increase in basmati crop which has a potential of more than $3 billion export annually, Cheema is discouraging sowing of this heritage product,” he said. “Such irresponsible statements by people sitting on highest echelons of Pakistan will jeopardize our case in European Union. Such damaging stance by a high official of the government negates all our efforts to safeguard our heritage since centuries in basmati rice besides billions invested in rice mills, export market brand equity.” In March, the European Union accepted the reasons of Pakistani rice exporters for why India should not be given exclusive rights to export basmati. REAP had filed the statement in opposition to India’s claim of geographical indication of basmati on February 5 after sending the notice of opposition on December 7 last. Pakistan has been challenging India’s bid to obtain exclusive rights of exporting basmati rice to the 27-member European Union since last year. India is the world’s biggest basmati exporter and meets 65 percent of the global demand for the aromatic rice. Pakistan meets the remaining requirement.
17:53 - 38 billion rupees to be allocated for improving water reservoirs. 17:49 - Pakistan had 1200 megat watts surplus in 1999 and it went several thousand mega watts in deficit. But next year, this load shedding will have become history. 17:48 - Most of the population expected to remain below 20 years of age in the ongoing census. 17:48 - Rs 411 billion allocated for transport sector, including highways, railways and aviation. 17:46 - Mobile telephone companies accessories import duties to be reduced. 17:46 - Withholding tax and excise duties on mobile phone to be reduced. 17:45 - First year to be exempted from tax for IT companies setting up in Pakistan. 17:44 - IT Software Park being made in Islamabad with the help of South Korea. 17:43 - Innovation Challenges Fund to be formed. 17:42 - Disaster Risk Management Fund has been formed with Rs 525.1 million for covering the risk of small businesses. 17:41 - Government to form e-banking department in State Bank for encouraging mobile banking. The project will cost Rs 2 billion. 17:41 - Subsidy on urea, fertiliser to continue. 17:40 - Pakistan Infrastructure Bank to be formed for project financing. Pakistan to own 20% of shares, World Bank to hold 20% shares and the rest to be owned by private organisations and financial institutions. 17:40 - Pakistan currently has a deficit of 1 million houses. 17:39 - Banks don t provide long-term loans for housing. Government to provide 40% credit guarantee to the banks and financial institutions for housing loans up to Rs 1 million. 17:38 - Custom duty on raw hides to be removed, overseas warehousing of rice to be permitted. 17:37 - Pakistan s exports dropped due to the drop in prices of agricultural products in the global market. 17:37 - Government to start brand development fund for textile industry. 17:36 - Textile import duty waiver to continue this year as well. 17:36 - Ad-hoc reliefs added in 2009-10 to be incorporated into the salaries. 17:34 - Government will encourage import of agriculture machinery by removing the custom and import duties on the import of combined harvester used for less than 5 years. 17:33 - Government will keep providing the electricity to agricultural tubewells at Rs 5.35 per unit during off-peak hours. 17:32 - State Bank working on linking banking system with land record management system. 17:32 - Sales tax on FDP to be reduced from Rs 400 per bag to Rs 100 per bag. 17:31 - Loans worth Rs 1001 billion to be provided for agriculture sector. 17:30 - Rs 50,000 loans for agriculture to be provided to farmers owning land less than 12.5 acres. Agricultural Development Bank of Pakistan will be leading the initiative while State Bank of Pakistan to suprevise. 17:28 - 118 billion rupees allocated for subsidy on electricity. 17:28 - Balochistan to especially benefit from the solar power projects during the next year. 17:27 - Subsidy to the households using less than 300 units will continue. 17:26 - The proverty survey of 2002 said the population living below poverty line was over 64% while it has dropped to less than 30% now. 17:26 - GDP growth rate target to be set at 6% for the next year. 17:25 - Agricultural tubewell electricity subsidy to continue. 17:25 - 5.5 million families to now receive funds from Benazir Income Support Program. 17:24 - Around 10,000 mega watts of electricity will be added to the national grid in the coming year, eliminating load shedding from Pakistan completely. 17:23 - Tax facilities will be provided to agriculture and IT sectors. 17:23 - We will raise the development budget by 40% i.e. 1001 billion rupees. 17:22 - Our budget deficit will be kept at 4.1% during the next financial year. 17:21 - We have to improve and consolidate the achievements of the current year in the FY 2017-18. 17:20 - Pakistan signed OECD convention as a part of reforms to attain tax transparency. 17:19 - Bills pertaining to income tax reforms were signed by this House during 2015-16 and it d help Pakistan to attain the improved levels of transparency globally. 17:18 - Government signed the OGP document recently after Pakistan was invited to the agreement as it completed all the requirements. 17:15 - Azan break 17:15 - Remittances woth 15.60 billion dollars were sent to Pakistan during current fiscal year during the first 10 months. 17:14 - Companies listed with the government will have to include women in the boards of directors. 17:12 - Pakistan s stock market was compared with the best stock markets of Asia. 17:11 - Pakistan s rating to improve from frontier market status to emerging market status on June 1 according to Standard & Poor s. 17:10 - Remittances are expected to rise during the last couple of months of the current financial year due to Ramazan and Eid festivals in May and June. 17:10 - FBR will be able to collect 3521 billion rupees during the current financial year. 17:09 - Services sector s GDP growth remained 5.98% during the current financial year. 17:09 - Agricultural GDP growth rate remained 3.46%. 17:08 - Per capital income rose by 22%. 17:07 - State Bank s interest rate brought down to the least in Pakistan s history. 17:06 - Budget deficit in 2012-13 of 8.2% has been reduced to 4.2% of the GDP this year. 17:05 - Opposition walks out of the House. 17:05 - Global ratings agencies improved Pakistan s ratings during the last four years. 17:05 - For the first time in Pakistan s history, the country s economic volume has risen to 300 billion dollars. 17:04 - Pakistan s financial performance remained better than most of the countries across the globe. 17:03 - Opposition chants slogans against the government as Finance Minister Ishaq Dar shares the financial performance during the previous year. 17:02 - Pakistan will be added to the G20 by 2030 17:01 - The GDP growth rate remained 5.3% during the current financial year. 16:57 - Ishaq Dar begins his budget speech. 16:51 - Leader of the Opposition, Khurshid Shah granted permission to take the mic before Ishaq Dar proceeds 16:45 - Speaker of the NA, Ayaz Sadiq presides over a session
May 09, 2017
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