THE EUROPEAN Commission has found sufficient evidence to launch an investigation into whether Cambodian rice exported to the EU puts an unfair burden on European rice farmers, potentially imperiling the Kingdom’s tariff-free exports to the bloc.
India Infoline News Service | Mumbai | July 06, 2017 14:17 IST
Basmati rice exports from India to the European Union (EU) might come to an end owing to latest norms on chemical residues, stated All India Rice Exporters Association, as reported by a leading national news agency.
European Union (EU) has permitted a maximum residue limit (MRL) of 1 ppm (parts per million) so far, However, from December 31, 2017 onwards it has instructed that imports having an MRL more than 0.01 ppm will not be allowed. Rice stocks like LT Foods and KRBL Limited were in focus during Thursday’s trading session. KRBL Limited was trading higher by 1.36% at Rs 394.25 per share and LT Foods Limited was trading higher by 0.52% at Rs 67.1 per share as of 1404 hours on Thursday.
Following the European Union’s recent decision to impose a stringent maximum residue limit (MRL) for Tricyclazole, a fungicide used by farmers against a disease from December 31, 2017, rice exporters in the country have launched an extensive campaign to educate the farmers.Following the European Union’s recent decision to impose a stringent maximum residue limit (MRL) for Tricyclazole, a fungicide used by farmers against a disease from December 31, 2017, rice exporters in the country have launched an extensive campaign to educate the farmers in key growing states of Punjab, Haryana and western Uttar Pradesh on the judicious use of pesticides. According to Vijay Setia, president, All India Rice Exporters Association (AIREA), the focus of the campaign, which is being carried out in collaboration with agricultural scientists, has been to educate the farmers about using the fungicide within 70 days of commencement of kharif sowing and not to use it at the flowering stage. “Many a times rice exports consignments were rejected because of detection of pesticides residues and our focus would be educate the farmers against use of excessive pesticides which would lead to higher price realisation,” Setia told FE. EU has brought down the MRL level for Tricyclazole to virtually zero or 0.01 milligram (mg) per kg from next year. Similarly, USA does not permit the presence of residues of pesticides like Isoprothiolane and Buprofezin beyond 0.01 mg per kg. EU and the US markets are high value markets for rice exporters although major chunk of rice is shipped to mostly Gulf and African countries. According to a commerce ministry official, “Only those pesticides should be used by farmers which are recommended by the state agriculture universities for application on paddy crop. In addition, the correct dose of the recommended pesticide.” The official said the country is largest exporter of rice in the world since last five years. “However, export of rice has faced problems in last few years in different markets like USA, EU and Iran due to detection of residues of pesticides exceeding prescribed MRL,” he noted. AIREA will be holding a series of meetings with farmers across key basmati growing areas of Punjab, Haryana and western Uttar Pradesh as farmers are preparing nurseries for kharif paddy plantation. India has an around 85% share in global basmati exports while the rest is contributed by Pakistan.
--- Up to 100,000 tonnes of Vietnamese rice will be shipped to the European Union each year tax-free in 2018 following the Vietnam-EU Free Trade Agreement, helping local rice exporters penetrate the market, Vietnam News Agency (VNA) reported.
May 19, 2017 - by Eric Schroeder
The USDA said Cambodia’s rice millers have shifted their attention to the expanding Chinese market in light of new rules in the European Union that have tightened the residue limit of tricyclazole on rice. Cambodian rice farmers commonly use tricyclazole to control rice blast fungus, but effective June 2017 the E.U. said it will implement a new threshold of tricyclazole residue for white rice — 0.01 mg per kg of paddy — and in December 2017 will implement a new tricyclazole residue level for fragrant rice — at 0.01 mg per kg.
“Amid rice millers’ concern of the E.U.’s potential ban on Cambodian rice that fails to meet the chemical residue threshold, the government of Cambodia is looking into substitute options and raising awareness of farmers on proper usage of fungicides,” the USDA said.
Cambodia exported a total of 542,144 tonnes of milled rice in 2016, up 0.7% from 2015. China was the largest destination, importing 127,460 tonnes, a figure that is forecast to grow to 200,000 in 2017, the USDA said. The increase in demand from China is expected to outpace the potential decline in demand from traditional E.U. buyers.
“Last December, China National Cereals, Oils, and Foodstuffs Corporation (COFCO) approved 18 Cambodian rice millers for exporting rice to China as part of an agreement signed between COFCO and the Cambodia Rice Federation (CRF),” the USDA said. “Additionally, the Ministry of Agriculture Fisheries and Forestry (MAFF) selected 28 rice millers who have demonstrated competence to meet the requirements for exporting rice into China. The CRF is urging the government to facilitate more access to the China market to offset potential decrease demand from E.U.
“The cross border rice trade is a vital pathway for Cambodia rice export into Thailand and Vietnam. However, Thailand’s reduction in stock and a production recovery this year show no signs of an increase in import demand. Meanwhile, the cross border trade with Vietnam is robust mostly because of strong demand for Cambodian rice to serve local Vietnamese consumers who prefer quality fragrant rice.”
Overall milled rice exports are forecast to increase 5% to 570,000 tonnes in 2017, and 8% to 615,000 tonnes in 2018, the USDA said.
After Nirmala Sitharaman’s ‘quality’ order, APEDA gets cracking on improving basmati rice
APEDA is making all efforts to ensure production of export-compliant basmati rice in the country, according to a senior official from the body.
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