Just the fact that you're reading this article means you probably reside in some type of urban setting. This also means that on many days, you find yourself torn, choosing to stick to the staple rice or treating yourself to something slightly more extravagant for the next meal.

Unfortunately, this is hardly the case for the impoverished in India, many of who resort to meals like plain namak-bhat (cooked rice with plain salt) to pull them out of starvation. India's Public Distribution System helps provide them with grains for the month, but even that falls short oftentimes.

With millions of Indians devastatingly reliant on rice as their staple food, it is imperative that we maintain our crop yields to ensure adequate supply to every sect of society. However, a new report has shown that excessive atmospheric carbon dioxide levels could affect rice yields significantly in low- and middle-income countries, including India and China.

A study published in the journal Nature Geoscience has shown that high atmospheric CO2 levels can reduce phosphorus availability in soils by more than 20% in rice fields. Since phosphorus is an essential fertiliser for the crop, this could substantially affect final yields.

How substantially? By as much as 55%, it turns out. The research has pinpointed that over half of large rice paddy fields in India and China could experience an increased risk of yield reduction due to this phosphorus deficiency.

This isn't the worst of it either; other low-income countries in Southeast Asia, Central America, Africa and the Middle East could see even riskier percentages, going up as high as 70% in some places.

Atmospheric CO2 is actually an excellent source of carbon for crops, which helps increase them photosynthesise more, improving plant growth, biomass and yield. However, the study revealed that this was actually a double-edged sword, since its long-term presence impoverishes the soil of phosphorous.

Furthermore, phosphorus as a chemical fertiliser is unevenly distributed worldwide, making its import exceedingly valuable to countries without the resource. India is a prime example, with the country 90% dependent on rock phosphate as the key raw material in DAP and NPK fertilisers. In the past, phosphorus import prices have skyrocketed during food crises, which can severely exacerbate the food security of countries with inadequate purchasing powers.

MUMBAI/HANOI/ BANGKOK: Vietnam’s rice export prices extended gains this week as it shipped more of the staple grain to China, while rates in top exporters India and Thailand were weighed down by a weakening in their domestic currencies.

Vietnam’s 5% broken rice prices were offered at $450 per tonne on Thursday, up from $440-$445 range a week ago. “Prices edged up as shipments to China are recovering, while Indonesia is said to be buying more to improve its national reserves,” a trader based in Ho Chi Minh City said.

The central bank’s move to cut its policy rates on Wednesday would give a boost to export activities, including rice shipments, the trader said. Top exporter India’s 5% broken parboiled variety was quoted at $382 to $387 per tonne, down from last week’s $385 to $390 range.

“Rupee’s fall is allowing us to reduce export prices.

Demand from African countries is also weak,” said an exporter based at Kakinada in the southern state of Andhra Pradesh. Meanwhile, Thailand’s 5% broken rice prices were quoted at $455 per tonne, down slightly from last week’s $460. Prices were impacted by changes in the exchange rate, said a Bangkok-based trader. “Supply and demand have been quiet,” the trader said. A weakening currency makes exports from the country cheaper in dollar terms.

The eligible agencies which have undertaken the initiatives for the promotion of Geographical Indications (GIs) products shall be provided financial assistance by the government.

Operational guidelines have been issued by the Department for Promotion of Industry and Internal Trade (DPIIT) for the financial assistance for undertaking the initiatives for the promotion of GIs.

Financial Assistance to Agencies to Promote Geographical Indications (GIs) Products

Dealing with the investments and intellectual property rights (IPRs), DPIIT is an arm of the commerce and industry ministry whereas the Geographical Indications (GIs) products are primarily an agricultural, natural or manufactured product (handicraft and industrial goods) originating from a definite geographical territory.

Essentially attributable to the place of its origin, typically this name conveys an assurance of quality and distinctiveness.

Some of these famous goods that carry GI tag include Basmati rice, Darjeeling Tea, Chanderi Fabric, Mysore Silk, Kullu Shawl, Kangra Tea, Thanjavur Paintings, Allahabad Surkha, Farrukhabad Prints, Lucknow Zardozi and Kashmir Walnut Wood Carving.

In a note DPIIT said that “In accordance with the objectives of national IPR policy, Government of India will provide financial assistance to eligible agencies for undertaking initiatives for Promotion of GIs, which aims to create awareness about significance of GIs and its uniqueness, promoting registered Indian GIs, identify potential GIs and encourage stakeholders towards registration”.

The objective as per DPIIT is to be provide varied platforms to GI stakeholders thereby giving them ample opportunities for business development and income generation.

Extra Information Related to GI goods producers shall be added

It said that the initiatives would also include capturing socio- economic status of GI goods producers, their livelihood conditions and other related information, which would assist in devising suitable policy interventions.

It said that the “financial assistance will be extended to eligible agencies as 100 per cent grants in aid for undertaking initiatives for promotion of GIs.”

As mentioned in the operational guidelines, the disbursement of the assistance will be subject to actual expenditure or head-wise maximum permissible amount whichever is less for grants-in-aid.

It also said, while throwing light on eligible agencies, that the department may on its own undertake initiatives for the promotion of GIs within the country as well as abroad with Indian diplomatic missions or its agency or jointly with India’s apex industry chambers and their overseas counterparts.

After a product gets a GI tag, any person or company cannot sell a similar item under that name. This tag is valid for a period of 10 years following which it can be renewed.

The other benefits of GI registration include legal protection for the item, prevention against unauthorised use by others, and promotion of exports.

Shippers may not approach Government unless volume takes a hit

Indian rice exporters will unlikely demand a rollback of the 20 per cent export duty by the Government as long as the volume of shipments does not drop.

“Demand for Indian rice has picked up despite the export duty. Some buyers might have converted from buying white (raw) rice to parboiled (boiled). The duty has helped the government,” said BV Krishna Rao, President, The Rice Exporters Association (TREA). 

Centre’s earnings

On September 8, 2022, the Centre imposed a 20 per cent duty on exports of white and brown rice in order to keep domestic prices on a leash following fears of the crop being affected by deficient rains. 

The move came at a time when demand for Indian rice was high in the global market as other origins such as Thailand and Vietnam were offering the cereal at far higher prices. 

Rao said even if the Centre had earned $50 a tonne on average since September, it could have easily earned $0.5 million (₹414 crore).  “If there is a drop in the volume of exports in any quarter then we might approach the Government for some remedy. Until then, we may not seek a duty cut,” he said. 

Rising enquiries

According to data from the Agricultural and Processed Food Products Export Development Authority (APEDA), non-basmati exports during the April-January period of the current fiscal were 14.56 million tonnes (mt) against 14.01 mt in the year-ago period. Between September and January, exports were 5.48 mt, down marginally from 5.8 mt a year ago. 

According to M Madan Prakash, President, Agricultural Commodities Exporters Association (ACEA), enquiries for Indian rice, particularly 5 per cent white, are good. “Vietnam is seeking 5% white rice. We are quoting around $430 a tonne cost and freight,” he said. 

VR Vidya Sagar, Director, Bulk Logix, said demand for Indian rice continues, particularly for parboiled rice. “Prices have stabilised now after a fall. There is decent demand for 25% broken white rice from Vietnam for use as feed,” he said.

May rise from April

Indian parboiled rice is quoted at around $390 a tonne, while white rice prices were over $400. The 25% white rice is quoted between $380 and $410 depending on the variety. 

For parboiled rice, demand is good from Coutnou, Casablanca and Jordan. Though demand is decent for Indian rice, exporters continue trading with their regular old buyers, Sagar said. 

A Delhi-based analyst said rice prices are ruling stable now as the new crop arrivals have begun in Vietnam and Thailand. But prices could begin increasing from April onwards and they could continue their northward journey until September. 

“Prices will be firm at least till September,” said the analyst. 

Record-high Indian crop

In the global market, rice prices in Thailand dropped by one per cent last week as the Thai Baht gained. However, Indian rice is still competitive by over $10 a tonne compared to other origins such as Vietnam and Thailand. 

“The price difference will increase once Thailand and Vietnam arrivals get over,” the analyst said. 

India will likely be helped by a record-high crop this season to June despite kharif output being lower. The Ministry of Agriculture has estimated rice production this year at 130.83 mt compared with 130.5 mt last year. 

Rabi production has been projected at 22.76 mt this year against 18.5 mt a year ago. Rice output is estimated higher in the rabi season in view of higher acreage in States such as Telangana. 

NEW DELHI, INDIA – Last week, the U.S. Department of Agriculture (USDA) reported in the March World Agriculture Supply and Demand Report that India will continue to dominate the world rice trade in the 2022/23 marketing year, projecting that they will break their own world record with 22.5 million metric tons (MT) of rice exports on tap.

In May 2022, the U.S. government along with nine other governments initiated technical consultations with India regarding their egregious trade distorting rice subsidies that feed into their public stockholding program and violate the terms of the Bali Peace Clause. However, to date, the U.S. government has not taken formal action to address India’s explicit World Trade Organization (WTO) violations.

The rise in exports shown above is not coincidental but corresponds with significant increases in production which corresponds with the Indian government’s significant increases in the price they pay farmers to buy their paddy rice for government stocks. According to USDA figures, in 2010/11, that price roughly translated to $120 per MT of paddy rice whereas the 2022/23 price is roughly translated to $259 per MT of paddy rice.

A government-guaranteed price of $259 per MT of long grain paddy rice converts to about $13.16 per hundredweight coupled with a series of input subsidies that cover as much as 85 percent of the total cost of production. USDA estimates that the Indian government will purchase as much as 59 million MT of paddy rice from Indian farmers this year, which equates to $15.28 billion in just procurement costs alone at the government rate of $248 per MT.

“Just six months ago, the Indian government had imposed export restrictions on rice because of alleged food shortages, but within weeks they had put themselves on track for another record crop year and another record year of rice exports, continuing to penetrate markets across the globe, including the United States, with their artificially low-priced rice,” said Bobby Hanks, Louisiana rice miller and chair of the USA Rice International Trade Policy Committee.

Despite India’s claims around their domestic food security last year, they continued to export a record amount of rice and crowd out other, more reliable exporters, worsening uncertainty for needy rice importers. At the same time, India was making deals with Russia to funnel fuel and fertilizer into their country while most of the world stood in solidarity with Ukraine.

“India’s policies not only violate their WTO commitments, but also impact the livelihoods of those that produce or consume rice across five other continents,” Hanks added. “It is long overdue for countries that are concerned about the future of the multilateral trading system and the livelihoods of their producers to address India’s protectionist policies through formal dispute settlement. We encourage the U.S. Trade Representative to initiate a dispute settlement action to help American farmers and our counterparts compete on a level playing field and prevent further industry consolidation.”

LAHORE: The sub-committee on ‘rice seed’, which met here on Tuesday with Governor Punjab Muhammad Balighur-Rehman in the chair, discussed various proposals aimed at boosting rice production for fetching precious forex through the export of commodity.

Suggestions were also presented in the meeting regarding the improvement of rice seed.

Speaking on this occasion, the Governor said that rice is important cash crop that fetches billions of foreign exchange besides meeting the country’s nutritional requirements.

“All the stakeholders would have to give special attention on research on rice seed to increase rice production substantially and explore new markets to increase export of rice,” he said. “Modern research is needed to improve the quality of seed to increase the export of rice so that the production of high quality rice in the country and its export can be boosted through joint efforts.”

He said he will play his role in conveying the recommendations of the Rice Seed Committee to the provincial and federal governments to support the rice seed producers and rice exporters in the country.

Convener of the sub-committee on rice, Shahzad Ali Malik, put forward the recommendations and said that private seed companies producing hybrid seeds of modern technology in the country should be allotted government land on easy terms for the cultivation of seeds.

He also demanded to simplify the rules and regulations related to breeding at the local level and also to provide interest-free loans for research and development of the institutions that produce seeds of modern technology at the local level. He emphasized on providing the facility of conducting tests from, at least three accredited laboratories.

Members of the Rice Seed Committee, Dr. Khalid Hameed, Muhammad Asim, Tahir Saleemi, Prof. Dr. Muhammad Saleem Haider and Dr. Abid Mehmood, besides representatives of Agriculture University Faisalabad, MNS Agriculture University Multan were present.

Copyright Business Recorder, 2023

Meeting was held at the Governor’s House

LAHORE:

Punjab Governor Balighur Rehman presided over a meeting of the Sub-Committee on Rice Seed to review suggestions regarding improvement of the rice seed.

The meeting was held at the Governor’s House on Tuesday.

The governor said that rice was an important cash crop that earned the country billions in foreign exchange besides meeting the country’s nutritional requirements.

He said that all the stakeholders had to give special attention to the research on rice seed to increase rice production substantially and explore new markets to increase export of rice.

The governor said that modern research was needed to improve the quality of the seed to increase the export of rice so that the production of high quality rice in the country and its export could be boosted through joint efforts.

NEW DELHI: India’s rice export prices extended their decline this week as demand from key importing countries faltered, while supplies in Vietnam boomed due to peaking winter-spring harvest in the Mekong Delta.

India’s 5% broken parboiled variety was quoted at $385-$390 per tonne this week from last week’s $390-$395. Prices have been sliding from around $400 reached in the week of Feb. 23, their highest since March 2021.

The recent upside in export prices and an increase in freight rates for break bulk vessels were affecting demand, said Himanshu Agarwal, executive director at Satyam Balajee, India’s leading rice exporter.

India does not plan to lift a ban on broken rice exports and cut a 20% tax on overseas shipments of white rice, as the world’s biggest exporter of the grain tries to keep a lid on domestic prices, two government sources said last month.

In Vietnam, the 5% broken rice was offered at $440-$445 per tonne, unchanged from a week ago.

Traders said the winter-spring harvest is peaking in the Mekong Delta provinces, giving a boost to domestic supplies, which hasn’t impacted prices as demand is expected to be strong.

The country exported 534,607 tonnes of rice in February, according to government customs data released on Thursday.

Meanwhile, Thailand’s 5% broken rice prices was quoted at $460 per tonne, little changed from $450 to $460 seen last week.

“Prices are still standing at this level because (changes to) supply and demand have been quiet,” said a Bangkok-based trader. “We have to wait for the new harvest.” Meanwhile, domestic rice prices in Bangladesh stayed elevated, despite efforts to cool rates of the staple grain.

The government has allowed private traders to import rice while it’s also buying from the key exporting countries such as Vietnam, India and Myanmar.

Unlike the case in EU, Pakistan did not contest India's application in Australia

ISLAMABAD: The Australian government has rejected India’s application for exclusive rights of Basmati rice on the grounds that it is not grown only in India.

The development comes while the European Union (EU) remains undecided on a conflict between India and Pakistan over basmati’s Geographical Indication (GI) tag.   

According to officials, the development in Australia will support Pakistan’s case in the EU wherein Islamabad has opposed the Indian application on the grounds that the rice variety is grown in both South Asian countries. 

A geographical indication (GI) is a sign used on products that have a specific geographical origin and ensures good qualities or a reputation in the region. A protected geographical indication does not entitle the holder to prevent someone from making a product using the same techniques that are used in the standards for that indication.

Sources informed Profit that unlike the case in EU, Pakistan did not contest the India’s application in Australia. In fact, Canberra itself rejected New Delhi’s application knowing that the rice is grown in both the neighboring countries. However, India has reportedly moved the federal court of Australia in appeal against the decision.

The trade dispute started back in 2019 when India filed the application for basmati’s name and logo. Sources informed Profit that India has applied for the exclusive trade rights of basmati in over 20 countries where the best quality of rice is marketed. 

“After the case in EU, Pakistan has also applied for exclusive GI Tag for Basmati in a number of countries like USA, Thailand, UK and others,” they claimed, adding that the applications may face opposition from India in the same way Pakistan did in EU.

Pakistan registered Basmati as GI product after approval of the GI Law of the country. It had registered its GI for basmati rice in 2020 after India had falsely claimed its produce of basmati rice to be original in an attempt to hinder Pakistan’s trade in the EU. The Trade Development Authority of Pakistan (TDAP) was given the task of registering all the merchant profiles and trade routes and with the Intellectual Property Organisation (IPO). 

In September 2020, India had applied for an exclusive GI tag for Basmati rice in the EU. The EU had applauded India’s application in its official journal, showing basmati rice as an Indian origin product asking if there was any opposition to the application within 90 days.

To support its claim of exclusivity, India in return referred to various reports and dictionaries to show that the basmati rice is of Indian origin and conveniently left out the part that the same rice is widely produced in Pakistan.

Subsequently Pakistan, the second-largest exporter of basmati, filed opposition against India’s claim. The main grounds for opposition were that both Pakistan and India produce basmati, and therefore, it was a joint product of both the countries.

Rice industry facing series of challenges amid global headwinds

KARACHI:

Unquestionably hybrid rice is a model of China-Pakistan agricultural cooperation in Sindh, remarked Zhou Xusheng, Director of Pakistan Business Department, Wuhan Qingfa Hesheng Seed Co Ltd, a Chinese developer and provider of hybrid seeds.

Amidst global headwinds, Pakistani rice is facing a series of challenges.

Rice Exporters Association of Pakistan (REAP) President Chela Ram Kewlani indicated that during the first seven months of FY 2022-23, exports of Pakistani rice decreased by 15.82% year-on-year to $1.08 billion.

The decrease came mainly due to flood damage to paddy fields in Sindh, where rice production decreased by 40%, he added.

Qingfa Hesheng has been providing hybrid seeds of rice, canola and vegetables to Pakistan for nearly 20 years as well as training more than 300 local agriculturalists. It registered the first hybrid rice variety, QY0413, in the history of Pakistan.

“It may take three years for rice export, which is an important means to earn foreign exchange, to recover,” Zhou noted. “However, we have made preparation for such a situation.”

First, the stress resistance of crop varieties should be improved. Second, seed production can be carried out separately in Pakistan and China, spreading risk in the face of extreme weather. Currently, test fields are located in Lahore, Chiniot, Shikarpur and Golarchi.

Annual average temperature here is much higher than that in China’s main rice climate zone. Therefore, in the selection of rice varieties, it is imperative to guarantee the seed setting rate and quality under high temperature.

“It is precisely because of the hot and dry climate in Pakistan that hybrid rice diseases are much less than those in China, such as bacterial blight, but far less hazardous.”

Exports of Basmati rice fell 22.95% to 316,055 tonnes in the first seven months of current fiscal year from 410,207 tonnes in the same period of last year. Similarly, exports of non-basmati rice fell 25% to 1.62 million tonnes, according to the Pakistan Bureau of Statistics (PBS) data.

THIS ARTICLE ORIGINALLY APPEARED ON THE CHINA ECONOMIC NET

MUMBAI/HANOI/ BANGKOK/DHAKA India’s rice export prices extended their decline this week as demand from key importing countries faltered, while supplies in Vietnam boomed due to peaking winter-spring harvest in the Mekong Delta.

India’s 5% broken parboiled variety was quoted at $385-$390 per tonne this week from last week’s $390-$395. Prices have been sliding from around $400 reached in the week of Feb. 23, their highest since March 2021.

The recent upside in export prices and an increase in freight rates for break bulk vessels were affecting demand, said Himanshu Agarwal, executive director at Satyam Balajee, India’s leading rice exporter. India does not plan to lift a ban on broken rice exports and cut a 20% tax on overseas shipments of white rice, as the world’s biggest exporter of the grain tries to keep a lid on domestic prices, two government sources said last month.

In Vietnam, the 5% broken rice was offered at $440-$445 per tonne, unchanged from a week ago. Traders said the winter-spring harvest is peaking in the Mekong Delta provinces, giving a boost to domestic supplies, which hasn’t impacted prices as demand is expected to be strong.

The country exported 534,607 tonnes of rice in February, according to government customs data released on Thursday. Meanwhile, Thailand’s 5% broken rice prices was quoted at $460 per tonne, little changed from $450 to $460 seen last week.

Rise comes despite 20% export duty on white rice, ban on fully brokens

India’s non-basmati rice exports surged 4 per cent to 14.56 million tonnes (mt) during the April-January period of the current fiscal from 14.01 mt a year ago. This is despite the Government imposing a 20 per cent export duty on white (raw) rice and banning shipments of fully broken rice.. However, with an upward trend in freight cost, the realisation by exporters may get hit if importing countries do not absorb any increase.

The non-basmati rice segment registered a 3 per cent growth in value at $5.17 billion (₹41,273 crore) from $5.01 billion in the year-ago period, according to the latest data from the Agricultural and Processed Food Products Export Development Authority (APEDA). In the entire 2021-22, non-basmati rice export was 17.26 mt worth $6.12 billion (₹45,652.35 crore).

Freight uptrend

Exporters said when the government imposed the duty in September last year, the freight cost was about $100-$120/tonne and it was declining. While it dropped to about $50/tonne in February, it began to show an uptrend in the first week.

“Importing countries did not feel the impact of export duty as in the same period there was a fall in the freight cost. One thing is established the world now knows India as a credible destination for non-basmati rice,” said BV Krishna Rao, President of The Rice Exporters Association (TREA). There is no concern for now and exporters are ready to wait for the next kharif crop’s arrival in October to see if any policy change will be required, Rao said.

He said the increase in non-basmati rice has to be seen amid the crop failure in Pakistan and also the quantitative restriction in Myanmar. However, he said: “The world needs Indian rice. We will seek a change in policy if at all there is a drop in export.”

Fair assessment in Sept

Rao further said even after the imposition of export duty, neither there is a substantial improvement in procurement, nor a decline in export. He said a fair assessment could be made by September about how the kharif paddy crop would be and a decision could help exporters to enter into new contracts for shipments from October-November.

“As no fresh crop from any other origin to come before September, we are fairly covered till then. A policy review at that time will be definitely of help,” Rao said.

Meanwhile, basmati rice increased 41 per cent to $3.82 billion (₹30,514 crore) in the 10 months to January and there was an 18 per cent surge in volume to 3.66 mt. Total exports of rice (both non-basmati and basmati) increased 16 per cent to $8.98 billion (₹71,787 crore).

The European Union suggests raising the maximum residue level (MRL) for tricyclazole in rice from 0.01 mg/kg to 0.09 mg/kg after determining that the increased level poses no risk to consumers.

The European Food Safety Authority (EFSA) has proposed raising the level of tricyclazole in rice after concerns about permitting a higher limit were addressed sufficiently.

The European Standing Committee on Food Chain and Animal Health is now expected to ratify the proposal in May. The decision should encourage Indian rice exporters, as the presence of fungicide residue has been a source of concern for shipments to the EU. However, India has requested that the MRL for the chemical be reduced to 1 mg/kg.

Tricyclazole is a fungicide used to treat blast disease in rice. Japanese scientists conducted tests on mice that resulted in decreased body weight gain as well as increased organ weight and others in the rodent's liver.

Corteva Agriscience had applied to Italy's competent national authority, which is the rapporteur Member State (RMS) of the EU, to set an import tolerance for the active substance tricyclazole in rice, according to EFSA. According to trade experts, Italy is one of the EU members who is dissatisfied with the EFSA regulations because it is a major producer of rice.

In accordance with EU regulations, the RMS created an evaluation report. On April 26, 2018, it was submitted to the European Commission and forwarded to the European Food Safety Authority (EFSA). "The RMS proposed setting the MRL for rice imported from Brazil at 0.09 mg/kg," it said.

As a result, the EFSA identified the evaluation gaps, and the RMS submitted a revised evaluation report on October 7, 2022. "Based on the risk assessment results, EFSA concluded that the short-term and long-term consumption of residues resulting from the reported agricultural practise of tricyclazole is unlikely to pose a risk to consumer health," the authority stated.

Tricyclazole "is stable," according to hydrolysis studies conducted to investigate the effect of processing on its nature. "Because the proposed use of tricyclazole is on imported crops, residue investigations in rotational crops are not required," EFSA stated.

Rice bran, a byproduct of (husked) rice, may be used for feed purposes, and a potential carry-over into animal food was assessed. For all relevant animal species, the measured livestock dietary burden did not exceed the trigger value of 0.1 mg/kg dry matter (DM).

"Because the relative contribution of tricyclazole residues from rice hulls to total livestock exposure was insignificant, animal commodities were not further considered in this application," according to EFSA. The EFSA concluded that "the recommended use of tricyclazole on rice will not lead in a consumer exposure exceeding the toxicological reference values so it is unlikely to pose a risk to consumers' health".

EFSA moots raising maximum residue level on tricyclazole to 0.09 mg/kg

The European Union proposes to raise the maximum residue level (MRL) for tricyclazole in rice to 0.09 mg per kg from 0.01 mg/kg after finding that the raised level is unlikely to cause any risk for consumers.

The European Food Safety Authority (EFSA) has proposed the hike in the level of tricyclazole in rice after concerns over allowing the higher limit had been sufficiently addressed. 

The proposal is now expected to be ratified by the European Standing Committee on Food Chain and Animal Health in May. 

India’s demand

The decision should encourage Indian rice exporters as the fungicide residue’s presence has been a concern for shipments to the EU. However, India has been seeking an MRL of 1 mg/kg for the chemical. 

Tricyclazole is a fungicide that is used to control the blast disease in rice. Tests carried out by Japanese scientists on mice are reported to have led to decreased body weight gain and increased organ weight and others in the rodent’s liver. 

EFSA said Corteva Agriscience had submitted an application to  Italy’s competent national authority, which is the rapporteur Member State (RMS) of the EU, to set an import tolerance for the active substance tricyclazole in rice. 

According to trade experts, Italy is one of the EU members who has been unhappy with the EFSA regulations since it is a significant producer of rice. 

Evaluation resubmitted

The RMS drafted an evaluation report in accordance with the EU regulations. It was submitted to the European Commission and forwarded to the European Food Safety Authority (EFSA) on April 26, 2018. 

“The RMS proposed to establish MRL for rice imported from Brazil at the level of 0.09 mg/kg,” it said.

In turn, the EFSA identified the gaps in the evaluation and the RMS submitted a revised evaluation report on October 7, 2022. 

“Based on the risk assessment results, EFSA concluded that the short-term and long-term intake of residues resulting from the use of tricyclazole according to the reported agricultural practice is unlikely to present a risk to consumer health,” the authority said.

Hydrolysis studies conducted to investigate the effect of processing on the nature of tricyclazole demonstrated that tricyclazole “is stable”. “As the proposed use of tricyclazole is on imported crops, investigations of residues in rotational crops are not required,” EFSA said.

Impact on feed

As by-products from (husked) rice, rice bran may be used for feed purposes, a potential carry-over into the food of animal origin was assessed. The calculated livestock dietary burden did not exceed the trigger value of 0.1 mg/kg dry matter (DM) for all relevant animal species. 

“The relative contribution of tricyclazole residues from rice hulls to the total livestock exposure was insignificant, and therefore, animal commodities were not further considered in this application,” EFSA said.

The EFSA concluded that “the proposed use of tricyclazole on rice will not result in a consumer exposure exceeding the toxicological reference values and therefore is unlikely to pose a risk to consumers’ health”.

BRRI dhan 105 is diabetic- friendly while BRRI dhan 106 is a submergence -tolerant variety

The government on Thursday released two new varieties of rice aiming to boost production of the main staple in a changing climatic condition.

The National Seed Board (NSB) at a meeting gave the go-ahead to the rice varieties- BRRI dhan 105 and 106-, developed by the Bangladesh Rice Research Institute (BRRI).

With the development, the number of BRRI developed rice varieties is now 113.

Beneficial for diabetic patients upon being on a low glycemic index (GI) of 55, BRRI dhan 105 has been developed for Boro season, says a BRRI press release.

BRRI dhan 106 which is a submergence-tolerant Aus variety has been developed for the non-saline tidal areas of Barishal division, it was revealed at the NSB meeting presided over by Agriculture Secretary Wahida Akter.

Director General of BRRI Dr Shahjahan Kabir said average production of BRRI dhan 105 is 7.6 tonnes per hectare (paddy form) and it would take 148 days to harvest.

He added BRRI dhan 106 would take only 117 days to grow while its production is 4.79 tonnes per hectare which is nearly 17.4 per cent higher than that of its traditional alternative BRRI dhan 27.

Both the varieties are medium slender grains.

However, despite development of 113 varieties by the BRRI, only a few are dominating farmlands in the country, creating a market imbalance, said experts.

BRRI dhan 28 and 29, developed in 1993, dominate above 50 per cent land in Boro season and BRRI dhan 11, 22, 49 and trans-boundary variety Swarna capture above 80 per cent land in Aman season.

The government has highly been emphasising popularising the new varieties for a changing climate as well as to boost production of the staple grain.

WASHINGTON, DC – More than 50 farmer members of USA Rice fanned out on Capitol Hill and around Washington this week for more than 60 meetings with lawmakers, key Congressional staff, and Administration officials to share industry priorities as the 2023 Farm Bill gets underway and make their case for why they should be considered.

“We were unified with our messaging that the Farm Bill is hugely important for us and we have significant concerns that are likely unique to rice,” said Curtis Berry, a Mississippi rice farmer and chair of the USA Rice Farm Policy Task Force. “The Price Loss Coverage program is our true safety net, but the reference price is based on cost of production data that is more than 10 years old. In today’s environment, cost of production data from 10 months ago is out of date.”

Berry said his group talked about runaway input costs and stagnant prices as a result of global market manipulation by India as adding to the rice industry’s woes.

“U.S. rice acres in 2022 were the lowest in 40 years,” Berry said. “The impact of the decline is significant: the average U.S. rice farm contributes $1 million to its local economy, and the industry provides more than 125,000 jobs and $3.5 billion in critical wildlife wetland habitat in the off-season.”

Berry added that rice farmers are 100 percent committed to conservation and sustainability, but that government conservation programs should focus on working lands, avoid inflexible climate-related sideboards, and be locally-led, voluntary, and incentive-based.

“We want to do the right thing, but if we can’t remain viable as a business, we won’t be able to pursue any of these conservation goals,” Arkansas rice farmer Mark Isbell said to the minority staff of the House Agriculture Committee during a meeting yesterday.

The message appears to be resonating.

“Let me put it this way,” said House Agriculture Committee Chairman GT Thompson (R-PA) in a meeting with rice representatives on Wednesday morning, “the Farm Bill is not going to be a Climate Bill.”

“I want to thank everyone who left their farms this week to join us in Washington to advocate on behalf of the entire industry,” said Mississippi rice farmer and USA Rice Chair Kirk Satterfield. “We really appreciate the many Members of Congress, the Senators, and their staffs who joined us, and it was wonderful to hear directly from Secretary of Agriculture Tom Vilsack on Tuesday who shared some positive news about assistance heading to our beleaguered industry in the near future.”

The 2018 Farm Bill is set to expire on September 30, 2023.

Prices of rice shipped from top hub India eased this week on a slowdown in demand from buyers in Africa, while Bangladesh looked to clamp down on hoarding to tame soaring local rates for the staple.

Rates for India’s 5% broken parboiled variety fell to $390-$395 per tonne from $397-$404, which was the highest in about two years, were also hurt by a depreciation in the rupee.

Buying from African countries has slowed a bit due to the recent rally in prices, said a Mumbai-based dealer with a global trade house.

India does not plan to lift a ban on broken rice exports and cut a 20% tax on overseas shipments of white rice as the top exporter tries to keep a lid on domestic prices, two government sources said last month.

In Bangladesh, domestic prices stayed elevated despite good crops and reserves, which officials blamed on hoarding by middlemen.

The government has warned of legal action against those involved.

“Surveillance has been increased. New laws are being enacted,” Bangladesh Food Minister Sadhan Chandra Majumder said.

Thailand’s 5% broken rice prices were quoted at $450 $460 per tonne, a slight dip from the $460 range last week.

“Supply and demand have been muted because it’s early in the month, (so) we have to wait for the new harvest,” said a Bangkok-based trader.

In Vietnam, 5% broken rice was offered at $440-$445 per tonne, down from $457 per tonne a week ago.

“Prices edged lower as supplies are building up amid the winter-spring harvest,” a trader based in Ho Chi Minh City said.

While prices may ease further as the harvest peaks this month, strong global demand will prevent a more pronounced retreat, traders said.

One of the two varieties pose low diabetes risk

The National Seed Board on Thursday approved two new rice varieties developed by the Bangladesh Rice Research Institute to boost crop production prospects and food security hopes in the country.

Of the two varieties, Brri-105 is ideal for cultivating in the March-May period (Boro season) in arable land, and Brri-106 is intended to be cultivated in the July-August period (Aush season) in non-saline tidal areas.

The two new varieties take the national rice research institute's total developed rice varieties to 113.

According to the institute, Brri-105 has low score at the glycemic index, meaning it has low-sugar content and poses very low diabetes risks. Thus, it can become very popular, the institute claims. The rice variety can be identified through its green and straight leaves, as well as medium-long, golden-coloured and thin grains.

The average output of the variety is 7.6 tonnes per hectare but it can yield up to 8.5 tonnes in the best possible conditions. 

Brri-106 can on average produce 4.79 tonnes per hectare, which is over 17% higher than the yield of Brri-27 in areas frequented by unsalted tidal waters.

Uttar Pradesh makes the “fastest delivery” of custom milled rice to Centre in the country after application of technology for automatic allotment of paddy to mills

Uttar Pradesh has made the fastest delivery of custom milled rice (CMR) to the Centre, saving around ₹1300 crore as interest burden and eliminating the possibilities of malpractices that millers often indulged in by delaying the delivery of processed rice to the state government, officials aware of the issue said.

Application of technology for automatic allotment of paddy to genuinely performing rice mills and elimination of discretion and human interference in the whole process is believed to be the game- changer this year.

Custom milled rice is manufactured by milling paddy that the state government procures at the minimum support price (MSP) from farmers. The government gives the procured paddy to mills, which are supposed to deliver CMR to the government by March-April. The rice received from mills is finally handed over the Centre. It is only after the final CMR delivery that the Centre reimburses money already spent by a state in purchasing paddy from farmers.

“We have already delivered 9 lakh MT of CMR to the Centre and the remaining quantity of the same will also be delivered by March 2,” principal secretary, food and civil supplies, Veena Kumari Meena said.

This, she claimed, was the fastest CMR delivery by any state in India.

“Earlier, we kept on delivering to the Centre till as late as October because of which our money remained blocked and the interest burden continued to mount,” she said.

“Use of technology in allotment of paddy to deserving mills did the trick,” she emphasised.

Commissioner, food and civil supplies, Sourabh Babu said the government made a lot of technological interventions that not only curbed various malpractices prevalent in the procurement chain but also ensured fast delivery of CMR from mills and then to the Centre.

“A new provision in the software, for example, ensured that paddy allocation to mills was done automatically on merit without any human interference and this helped. Uttar Pradesh is the first state to do this,” he explained.

Paddy allocation to manufacture CMR was made among 1800 mills.

People aware of the issue said that vested interests tried their best to throw a spanner in the government’s plan to introduce the new system of automatic selection of rice mills for paddy allotment.

Earlier, allotment was made manually by the department’s inspectors who used their discretion for the purpose.

“Often, deliberately or otherwise, paddy was allotted disproportionately to mills, many of which were not able to do the job on time due to lack of capacity,” said an official.

“Many mills also indulged in bungling and malpractices. There was always the possibility for the millers to sell the undelivered rice in the open market at higher rates, and deliver the rice of the earlier season to FCI at the current higher market price,” he said.

Arun Kumar Singh, who retired as additional commissioner (marketing) three months ago, said timely delivery of CMR to the Centre will help the government save hundreds of crores of rupees as interest that it had to pay to lending banks.

“Various government agencies have to take loan from banks to buy paddy or wheat from farmers at MSP. While the government pays farmers promptly after purchase, the Centre reimburses bills only after delivery of CMR. Delay in CMR delivery blocks the cash flow and increases interest burden,” he said.

“Quality issues also cropped up when CMR was delivered to the Centre after the rains,” he added.

Some other reforms were also made during the last one-two years to eliminate role of middlemen in the procurement system to ensure that only genuine farmers avail of MSP and they got quick payments to their account. These steps include introduction of Aadhaar-based farmer registration system, integration of land records, verification of bank accounts, biometric authenticated procurement, biometric authentication of farmers and installation of dusters at all the procurement centres.

“The impact has been huge in terms of proper identification of farmers, weeding out of middlemen, control on disproportionate procurement, proper utilization of funds, faster payment of MSP, real-time monitoring of purchase and payments and purchase of good quality stuff,” Singh said.

(Adds details, rice exports to the Middle East)

By Kitiphong Thaichareon and Satawasin Staporncharnchai

BANGKOK, Feb 27 (Reuters) - Thailand's rice exports for January were at 805,519 tonnes, up 75.2% from a year earlier, helped by year-end orders, higher demand from the Middle East and a weak baht currency, the Commerce Ministry said on Monday.

The value of rice exports rose 78.76% to 14.28 billion baht ($406.72 million) in January year-on-year, Ronnarong Phoolpipat, head of the ministry's foreign trade department, told a news conference.

"Rice exports in January increased by a shocking rate," he said, adding the ministry's trade promotion efforts also helped.

He singled out "an opportunity to export further" to the Middle East given some Arab nations' high purchasing power and low agricultural output.

The region was the only growing market for Thai rice in the last year, taking 2.02 million tonnes of rice, or 26% of total rice shipments, Ronnarong said.

In 2021, Thailand shipped out only 630,000 tonnes of rice to the region, he added.

However, the ministry is sticking to its overall rice export target of 7.5 million tonnes this year as it wants to monitor the baht before deciding whether to revise the target, he said.

Earlier this year, the ministry lowered its export target for 2023 from 8 million tonnes to 7.5 million tonnes as the baht, which dropped as much as 13% against the dollar in October last year, appreciated.

The baht has weakened again, by 1.5% against the dollar so far this year, becoming Asia's third-worst performing currency.

Thailand is the world's third-largest rice exporter after India and Vietnam.

Thailand exported 7.69 million tonnes of rice in 2022, up 22.1% from a year earlier, beating a target of 7.5 million tonnes, with top markets being Iraq, South Africa, China and the United States.

($1 = 35.1100 baht) (Reporting by Kitiphong Thaichareon and Satawasin Staporncharnchai Writing by Orathai Sriring Editing by Kanupriya Kapoor)

LONDON, ENGLAND – The Lunar New Year took the edge of a previously bullish rice market, slowing down sales in late January, after prices started the year with rises.  

In its Grain Market Report of Feb. 16, comparing with its previous report, which was published on Jan. 12, the International Grains Council (IGC) said “with activity curtailed by Lunar New Year celebrations, average international rice prices were little changed month-on-month amid offsetting movements across key exporters.” 

“In Thailand, export values for 5% broken retreated by $23, to $460 fob Bangkok, as early gains, linked to currency movements and the covering of previously agreed sales, were later more than reversed by weak buying interest,” the London, England-based IGC said. “In Pakistan, initial support from rising local values was likewise countered by pressure from slow international demand, while Vietnamese 5% broken firmed as traders awaited fresh supplies from the upcoming winter/spring harvest. 

“Indian 5% broken offers were $15 higher, at $433 fob Kakinada, amid steady buying interest and solid government procurement.”  

The US Rice Producers Association, in its Rice Advocate publication of Feb. 17, noted a USDA attaché report highlighting the continued drought in South America.

“With approximately 10% of the harvest complete, it is expected that farmers have been forced to abandon approximately 50,000 acres of rice on account of the drought in Corrientes and Entre Rios,” the USDA said. “Rainfall in 2022 was only half of the annual average, so producers who planted hoping for rain and surface water were sorely disappointed.

“This will ultimately result in a shorter exportable supply, with key export markets like the EU, Brazil, and Chile competing for the product. In Asia, we are seeing some price softening in Thailand, likely a result of the second crop supply about to hit the market.”  

In its Rice Price Update of Feb. 3, the United Nations Food and Agriculture Organization (FAO) reported that after rising for the greater part of 2022, international rice prices opened calendar 2023 on a firm note. January’s global price level was up 6.2% from December and the highest since November 2011. 

“Indica prices drove this increase, rising 6.2% over December levels,” the FAO said. “Aromatic prices also strengthened markedly (by 9.8%), sustained by demand for Lunar New Year celebrations, preparative purchases for Ramadan and a post-harvest surge in Pakistani basmati quotations. 

“Low buying interest kept gains in Japonica prices comparatively more moderate (at 0.9%), even though this January increase placed the Japonica Index at a fresh nominal peak. By contrast, glutinous prices eased by 2%, weighed by ebbing Chinese glutinous demand.”

Asian quotations of Indica rice firmed across all the major origins in January, the FAO said.  

“The most pronounced gains took place in Thailand, where the Baht strengthened to a 10-month high, adding to the sentiment boost provided by Indonesian purchases,” the FAO said. “In Pakistan, short supplies from a flood-reduced crop and persistently elevated inflationary pressure were compounded by strong local demand for rice (including brokens), as constraints in wheat flour supplies drove consumers increasingly toward rice.” 

A further factor was that rises in currency against the US dollar influenced prices in Brazil, Vietnam and India.  

“In Vietnam, tight availabilities ahead of the winter-spring harvest provided further underpinning, as did a record pace of government domestic procurement in India, despite the smaller Kharif crop harvested in 2022,” the FAO said. “In the Americas, Iraqi purchases sustained Indica quotations in the United States, Argentina, and Uruguay.” 

India maintains rice export restrictions to control domestic prices and ensure adequate stocks

India maintains its ban on broken rice exports and 20 percent tax on white rice shipments to keep a lid on domestic prices and ensure adequate stocks amid concerns over production due to below-average monsoon rainfall in key growing states.

India has decided not to lift its ban on broken rice exports or reduce the 20 percent tax on overseas shipments of white rice as it seeks to keep a lid on domestic prices, according to two government sources. The move is expected to result in higher prices for rice buyers, particularly in Asia and Africa.

The ban on exports of broken rice and the imposition of the 20 percent duty on various other grades were introduced in September 2022 amid concerns over production due to below-average monsoon rainfall in key growing states.

Despite the restrictions, India's rice exports rose 3.5 percent to a record 22.26 million tonnes in 2022, more than the combined shipments of the next four largest exporters: Thailand, Vietnam, Pakistan, and the United States.

"We can't resume broken rice exports just because somebody in China or any other country wants it as a raw material to make ethanol or cattle feed. We'll rather prefer our domestic industry consuming it," said a senior government official who declined to be named in line with official rules.

China was the biggest buyer of India's broken rice, with purchases of 1.1 million tonnes in 2021. However, India will not be resuming exports to China or any other country at this time.

"We'd like to continue with the same arrangement," said another government source directly involved in decision-making. "Our restrictions have not deprived the world of rice, and at the same time, we've been able to maintain adequate stocks."

India's farmers plant rice, the most water-thirsty crop, in June and July when monsoon rains lash the country. Due to apprehensions that the El Nino weather phenomenon might hit this year's monsoon rains, India will extend its rice export curbs.

"We don't want to take a chance. We've limited wheat stocks but ample rice stocks, which we can use if the weather throws any big surprise," the official said.

The decision to maintain the export restrictions is expected to impact buyers, particularly in Asia and Africa, who will now have to pay more for the staple.

India's export restrictions have been in place for several months and are likely to remain so until the government is confident that monsoon rains will not have a significant impact on domestic production.

MUMBAI/NEW DELHI: India does not plan to lift a ban on broken rice exports and cut a 20% tax on overseas shipments of white rice as the world’s biggest exporter of the grain tries to keep a lid on domestic prices, two government sources said on Thursday.

New Delhi’s rice export curbs will force buyers, especially in Asia and Africa, to pay more for the staple that has become expensive in the last few weeks.

India banned overseas shipments of broken rice and imposed a 20% duty on exports of various other grades in September 2022 amid concerns over production due to below-average monsoon rainfall in key growing states.

“Rice exports didn’t slow down despite the 20% export duty, and that’s why we believe that there is no reason to reduce or scrap the duty,” said a senior government official, who declined to be named in line with official rules.

India’s rice exports rose 3.5% to a record 22.26 million tonnes in 2022. That was more than the combined shipments of the next four largest exporters: Thailand, Vietnam, Pakistan and the United States.

“We can’t resume broken rice exports just because somebody in China or any other country wants it as a raw material to make ethanol or cattle feed. We’ll rather prefer our domestic industry consuming it,” the official said.

China was the biggest buyer of India’s broken rice, with purchases of 1.1 million tonnes in 2021.

India will also extend its rice export curbs due to apprehensions that the El Nino weather phenomenon might hit this year’s monsoon rains.

“We don’t want to take a chance. We’ve limited wheat stocks but ample rice stocks, which we can use if the weather throws any big surprise,” the official said.

Indian farmers plant rice, the most water-thirsty crop, in June and July, when monsoon rains lash the country.

“Our restrictions have not deprived the world of rice, and at the same time, we’ve been able to maintain adequate stocks,” said another government source directly involved in decision-making. “We’d like to continue with the same arrangement.”

India banned overseas shipments of broken rice and imposed a 20% duty on exports of various other grades in September 2022 amid concerns over production due to below-average monsoon rainfall in key growing states.

Government does not plan to lift a ban on broken rice exports and cut a 20% tax on overseas shipments of white rice as the world's biggest exporter of the grain tries to keep a lid on domestic prices, two government sources said on Thursday.

New Delhi's rice export curbs will force buyers, especially in Asia and Africa, to pay more for the staple that has become expensive in the last few weeks.

India banned overseas shipments of broken rice and imposed a 20% duty on exports of various other grades in September 2022 amid concerns over production due to below-average monsoon rainfall in key growing states.

"Rice exports didn't slow down despite the 20% export duty, and that's why we believe that there is no reason to reduce or scrap the duty," said a senior government official, who declined to be named in line with official rules.

India's rice exports rose 3.5% to a record 22.26 million tonnes in 2022. That was more than the combined shipments of the next four largest exporters: Thailand, Vietnam, Pakistan and the United States.

"We can't resume broken rice exports just because somebody in China or any other country wants it as a raw material to make ethanol or cattle feed. We'll rather prefer our domestic industry consuming it," the official said.

China was the biggest buyer of India's broken rice, with purchases of 1.1 million tonnes in 2021.

India will also extend its rice export curbs due to apprehensions that the El Nino weather phenomenon might hit this year's monsoon rains.

"We don't want to take a chance. We've limited wheat stocks but ample rice stocks, which we can use if the weather throws any big surprise," the official said.

Indian farmers plant rice, the most water-thirsty crop, in June and July, when monsoon rains lash the country.

"Our restrictions have not deprived the world of rice, and at the same time, we've been able to maintain adequate stocks," said another government source directly involved in decision-making. "We'd like to continue with the same arrangement."

The Cambodia Rice Federation booth at the Gulfood expo. Fresh News

The Cambodia Rice Federation (CRF) participated in the Gulfood expo to promote the quality of Cambodian rice and rice products.

The Cambodian delegation was led by Chan Sokheang, President of the Cambodian Rice Federation. They participated in the expo on February 20.

The Gulfood is the largest exhibition event for the Middle East, with the 2023 event being the 28th event taking place from February 20-24. More than 5,000 food companies from 125 countries are participating in the event.

The participation of the Cambodia Rice Federation in the expo is taking place while the government tries to open markets for Cambodia in the Middle East.

On February 21, Tek Reth, Secretary of State of the Ministry of Commerce, led an inter-ministerial delegation to visit the booth of the CRF, while leading a delegation to negotiate the Cambodia-UAE free trade agreement.

Chandigarh, Feb 22 (IANS): HAFED, the apex cooperative federation of Haryana, has procured export orders of 85,000 metric tons (MT) basmati rice valuing Rs 850 crore from a Saudi Arabia importer, Managing Director A. Sreenivas said on Wednesday.

He said of this, an order of 33,000 MT has been executed and the rest is under the process of execution.

HAFED is currently participating in the world's biggest food and beverages exhibition at Dubai, aGULFOOD 2023', by putting up its exhibition stall for the first time.

Its Chairman Kailash Bhagat and Managing Director Sreenivas, along with officers, visited the exhibition and had a series of meetings with potential buyers of basmati rice for export tie-ups, an official statement said.

Sreenivas said HAFED procured export orders from the leading importer M/s Saleh A Babekar Sons Company of Riyadh.

"HAFED is also making commercial purchases of basmati paddy and has procured 2.75 lakh MT basmati paddy from farmers during the current financial year," he said.

Vietnam Food Association has just informed the price of Vietnamese 5-percent broken rice passes that of Thailand, becoming the leader in this segment, a milestone in the national target for rice export.

The winter-spring rice crop is the main one in the Mekong Delta. Thanks to favorable weather and high price, with a yield of 7.2 tonnes per hectare, farmers earn a profit of over VND30 million a hectare (US$1,260).

The Mekong Delta now has 1.5 million tonnes of rice ready for harvest. The price of Jasmine rice in Vinh Long Province and Can Tho City is at VND7,600/kg ($0.32), OM 4218 rice at VND7,400/kg ($0.31), and ST24, ST25 in Ca Mau Province at VND7,000/kg ($0.29). These are positive signals besides the stably high price of Vietnam 5-percent broken rice at $463 per tonnes ($2 higher than that of Thailand counterpart).

In this year’s winter-spring rice crop, An Giang Province is the leader in terms of rice field area under the partnership between farmers and businesses. Chairman Nguyen Thanh Giang of the Director Board of Binh Thanh Agricultural Cooperative (sited in Thoai Son District) said that his cooperative is growing rice on 1,000ha according to the order from Loc Troi Group, with a yield of 7-8 tonnes/ha thanks to proper techniques and synchronous mechanization in most steps. Loc Troi Group informed that it has made orders with farmers in the Mekong Delta for 210,000ha of rice.

Similarly, General Director Pham Thai Binh of Trung An Hi-tech Farming JSC. (sited in Can Tho City) shared that it is urgently finishing the order to sell 30,000 tonnes of rice to the markets of Singapore, Malaysia, and the Republic of Korea. The company is collaborating with farmers in the Mekong Delta to form a stable rice farming area for its export orders in 2023. At present, it is processing 9,000 tonnes of high-quality fragrant rice.

The year 2022 ended with remarkable achievements in rice export, with nearly 7.3 million tonnes sold abroad and a revenue of $3.54 billion (a volume rise of 16.3 percent and a value increase of 6.9 percent compared to 2021).

The most impressive result was that ST24 and ST25 rice types of Vietnam for the first time were sold to the markets of the EU and the Middle East at the price of more than $1,000/tonne, which is a true miracle.

Hence, in 2023, Trung An Hi-tech Farming JSC. has sighed a contract to export fragrant rice at the price of $1,250/tonne. This February, Quang Tri Organic Agro-product JSC. (QTOrganic) has sold its first 15 tonnes of organic rice to the EU market at the price of $1,800/tonne. Meanwhile, Loc Troi Group is expanding its market to the EU with orders of up to 400,000 tonnes of rice this year, at the price of €12.9/pack of 5 kilos or $2,000/tonne.

To successfully sell rice in such picky markets, both farmers and rice enterprises have to strictly follow a specific rice growing and processing procedure under a close partnership to ensure quality.

Another positive signal comes from the project ‘Sustainable Development of 1 Million Hectares of Specialized Field for High-quality Rice in Association with Green Farming’ by the Agriculture and Rural Development Ministry. It is now in the finalization stage to submit to the Prime Minister for approval, in hope of creating more breakthroughs in rice export.

Accordingly, the total estimated investment for the project in the 2023-2030 period reaches over VND40 trillion ($1.68 billion). 30 percent of this amount will be distributed to farmers for seed purchasing at a rate of 80kg/ha in the first 4 crops.

An Giang Province immediately expressed the wish to join in the project with its 200,000ha. Director Nguyen Si Lam of the provincial Department of Agriculture and Rural Development stated that in order for the project to be successful, it is necessary to create favorable conditions for rice companies to access this investment, to provide sensible land policies, and to call for the collaboration of relevant partners like the State Bank of Vietnam, the Industry and Trade Ministry, the Planning and Investment Ministry, trading associations in the field.

Director Nguyen Van Thanh of Phuoc Thanh IV Manufacturing – Trading Co. Ltd. (in Vinh Long Province) commented that 2023 is a promising year for Vietnam’s rice export. The global rice resource is depleting, and its stock is exhausted. This might lead to even higher international rice prices. With such lucrative prices, a high yield in the Mekong Delta, and lower fertilizer prices, farmers are enjoying a profit increase of 10-15 percent. Therefore, most rice enterprises are now concentrating on gathering material for their export orders.

After a lull of three months since the imposition of 20% export duty on rice, India's rice exporters are witnessing a surge in demand from the global markets and international buyers are willing to pay a price of $400 per tonne, as compared to $330 per tonne before the imposition of the export duty.

The government had imposed the duty on September 9 last year to contain the domestic price rise. Area under kharif fell 5.62% to 38.39 million hectares in last year's season due to poor rains 

rains in some states including UP, Bihar, Jharkhand, West Bengal. Buyers are absorbing the export duty, despite which Indian rice is cheaper than rice from Thailand which is commanding a price of $500 per tonne in the international market.

"The upswing in global demand will help India to achieve 15.5 million tonnes of non-basmati rice exports, which are only 10% lower compared to last year even though earlier it was thought exports would come down to 12-13 mt following the imposition of export duty," said BV Krishna Rao, president, Rice Exporters Association of India.

“The government talks about developing and promoting agricultural villages, but state-run food shops are making the lives of farmers harder," one farmer complained

The incomes of North Korean farming households have fallen significantly since the country began operating state-run food shops nationwide, Daily NK has learned.

State-run food shops provide rice and other grains to ordinary consumers at prices less than what can be found in local markets.

According to a Daily NK source in South Pyongan Province on Friday, the incomes of farming households last year were 25 to 30% lower than in previous years due to poor agricultural production last year and state-run shops coercing farmers to sell them grain. 

After harvests, farmers usually sell the share of production earmarked for personal use to market grain merchants or sell it into markets themselves. Following the harvest of 2021 and 2022 — when state-run food shops were operating — officials working for the shops went around farms to coerce them to sell the crop yield that farmers had traditionally taken for themselves. 

FARMERS GET FAR LESS SELLING TO SHOPS THAN TO MARKETS

Generally speaking, farmers can sell their rice for at least KPW 5,000 a kilogram at markets, but can only get KPW 3,800 to 4,000 if they sell the rice to state-run food shops. Given the approximately 30% difference in what they can get, farmers tend to prefer to sell their rice to markets.

However, the state-run food shops have been collecting rice from farmers in a coercive way under various pretexts, telling the farmers that they can become “patriotic farmers” and “loyal to the regime” if they contribute rice. The shops also call the rice farmers contribute to the state “patriotic rice.” 

Moreover, of the rice taken from farmers, the shops add an additional KPW 500 to 700 to each kilogram of rice that is sold to ordinary consumers. 

However, last year’s poor harvest meant that there has been less rice to go around, resulting in a situation where farmers have had less rice to use or sell.

According to figures announced by South Korea’s Rural Development Administration last December, North Korea’s food production in 2022 was estimated at 4.51 million tons, a 3.8% fall from 4.69 tons in 2021.

The situation differs from region to region, but in South Pyongan Province, farmers feel that last year’s production fell far short of previous years, with some saying that 2022’s rice production was just 60 to 70% of 2021’s production.

Excess agricultural production has fallen 30 to 40% compared to the previous year, and farmers are being coerced to sell their own share of the harvest at prices 30% less than what they can get at markets. What this means is that the incomes of farming households cannot go anywhere but down, the source explained.

In fact, one farmer told Daily NK that he takes a KPW 150,000 loss when he sells 100 kilograms of rice to the state-run shops, and a loss of KPW 1.5 million when he sells a ton.

“A farming household can survive a month on KWP 150,000, and 10 months on KPW 1.5 million, so we farm for a year and then we have no money to live on the next year,” he said.

“The government talks about developing and promoting agricultural villages, but state-run food shops are making the lives of farmers harder,” the farmer complained. 

FOOD SHOPS SELL POOR QUALITY RICE

However, state-run food shops are far from strict about the quality of rice they buy from farmers, which means that some farmers are turning over low-quality rice that is damp or has impurities, such as having stones mixed in with the grains. 

In fact, the poor quality of rice has become a focus of complaints by consumers of the state-run food shops.

Specifically, consumers are saying that while the rice is cheap, “its quality is equally low, and if you pick out the edible rice, there’s little price difference with the markets.”

Meanwhile, given the fact that the state-run shops do not sell grain all the time, critics say the shops are having little effect in stabilizing the market price of rice.

Cho Chung-hee, director of Good Farmers and an expert on North Korean agriculture, said that the shops are unable to provide regular sales of grain because of the country’s insufficient agricultural production and issues in procuring the rice from farms, adding that the amount of grain available to the shops is “extremely small.” 

Cho went on to say that the shops could have a positive impact on stabilizing food prices in North Korea if they operate normally, “but if the current situation continues, it is unlikely they will have an effect on stabilizing rice prices.”

Recently, high-ranking North Korean cadres have been conducting frequent tours of state-run food shops nationwide to inspect how they are operating, which suggests that the authorities are aware of the problems suffered by the shops.

North Korean state-run media reported on Feb. 7 that Premier Kim Tok Hun visited state-run food shops in the city of Nampo to ascertain how well they are distributing food, even demanding that measures be taken to improve food distribution. 

Kim also made onsite inspections of several grain distribution centers and state-run food shops in South Pyongan and North Pyongan provinces on Jan. 28, instructing that measures be created to deal with food distribution issues. 

North Korean authorities have announced that they will discuss agricultural issues and the future goals of agricultural development during the Seventh Plenary Meeting of the Eighth Central Committee set to be held later this month. The results of this meeting will make clear whether the country will take new measures to resolve problems with the state-run food shops. 

Translated by David Black. Edited by Robert Lauler. 

Vietnam’s rice exports to Taiwan rose by 18.5% last year as quality improved and prices were competitive.

It shipped 20,281 tons worth over US$10 million to account for more than 16% of Taiwan’s imports, the third highest market share.

In recent years Vietnam’s exports of high-grade rice to the market have been steadily increasing as its prices are lower than Thailand’s, Taiwan’s second largest source of imports at 23,042 tons.

But Thailand’s exports declined by 20% last year. Vietnam’s sticky rice exports to Taiwan exceeded those of the U.S. and Thailand.

Overall, Vietnam exported more than seven million tons of rice worth $3.5 billion to the global market last year.

It was sold in European supermarkets for the first time.

From the Laban Rice Mill in Kebbi to the Cosharis Rice Mill in Akwa and Lagos Rice Mill in Imota, Nigeria’s agricultural revolution is driving investments across the rice value chain.

Rice production has dominated the discourse in the Buhari-led administration’s agricultural sector revolution since coming into power in 2015.

A 70 percent tariff was imposed on rice imports through the ports, coupled with an outright ban through land borders by the federal government to support the local rice industry.

The policy created opportunity across the value chain and spurred investments as farmers and millers ramp up production to meet the ever-growing demand for rice – a key staple in Nigerian diets.

Rotimi William, chief executive officer of Kereksuk Rice Farm, said the agric revolution brought lots of investments across the rice value chain.

“Lots of youths made investments in rice production owing to the revolution in the sector,” William said. “Some youths invested in the aggregation of paddy for millers while others in the cultivation of the crop.”

Data from the National Bureau of Statistics show that Investments in the agricultural sector grew from $98.3 million in 2015, when Buhari launched the campaign, to $366 million in 2021.

The number of rice mills that have sprung up across the country and local rice brands that have become more visible is evidence of improvement.

Both integrated and cottage mills have increased by more than 60 percent in recent years as the government and private sector continue to invest in processing.

The number of integrated rice mills jumped from 10 to above 60 during the same period, according to industry data, an indication that investments are fast rising in the production of the crop.

Milling capacity also increased from 350,000 metric tonnes per annum in 2015 to more than 3 million metric tonnes per annum in 2021, according to the United States Department of Agriculture (USDA).

The average crop yield per hectare has risen from 2.5 metric tonnes per hectare to an average of 4 and 5 metric tonnes of the same acreage, owing to renewed government commitment, experts said.

The most recent reliable figures for production come from the USDA, which puts Nigeria’s milled rice 2022/2023 production at 5.5 million metric tons (MMT), up over 10 percent from the 2021/22 figure of 5 MMT.

“Since the agric revolution, lots of farmers who have abandoned growing rice have returned and even other farmers are shifting to rice cultivation because the market is there now and it is profitable,” Muhammed Augie, former chairman of Rice Farmers Association, Kebbi chapter, said.

“Mills are springing up across the country, a testament that the revolution in the sector is driving investments,” Augie said.

The agricultural sector is critical to the economic growth and development of Nigeria as it will not only enhance the diversification and integration of the economy but also become a major source of foreign exchange earner for the country.

As part of its sustained efforts to popularise the Cambodian “white gold” and help expand rice export to newer markets, the Cambodia Rice Federation (CRF) will take part and showcase the commodity at Gulfood, the world-famous food and beverages (F&B) exhibition in Dubai, the United Arab Emirates.

While Chan Sokheang, President of the Cambodia Rice Federation (CRF), and Lun Yeng, Secretary General of the CRF, will represent the apex body of rice millers and exporters in the Southeast country, four Cambodian companies will take part in the five-day exhibition that will start on February 20.

“They will be participating in the event under the CRF and together be showcasing a variety of Cambodian rice at one stall during the event,” Lun Yeng, the CRF Secretary General, told Khmer Times.

The four companies that will take part in one of the well-known F&B exhibitions are Signatures of Asia Co Ltd, a leading Cambodian rice exporter; Indochina Rice Mill Limited, one of the largest rice mills in the Kingdom; Primalis Corporation Ltd, a leading rice producer and exporter of the Southeast Asian country; and Kompong Thom Rice Mill Ltd, one of the top rice producers and exporters in Cambodia, according to the CRF.

The participation at the Dubai F&B show is aimed at showcasing Cambodian rice varieties, the CRF secretary general said.

These companies will be exhibiting aromatic rice, fragrant rice, white rice, parboiled rice, and organic rice at the 28th edition of Gulfood, one of the largest F&B sourcing events in the world.

Gulfood, which brings together food and beverage communities from around the world, also performs the role of an industry trend springboard and a global sourcing powerhouse.

More than 5,000 companies from over 125 countries are expected to take part in the event. “A line-up of industry thought leaders, and the world’s greatest chefs will chart the way forward and inspire industry-wide transformation for the good of the entire ecosystem,” claimed the organisers of the event on its website. The event will be spread over 24 halls and one million square feet of area.

Meanwhile, a high-level delegation from Cambodia will also be there in Dubai to take part in the three-day third round of the Cambodia-United Arab Emirates Comprehensive Economic Partnership Agreement (CAM-UAE CEPA) dialogue, starting on February 20, according to a statement of the Cambodian Ministry of Commerce, early this month.

While the first round of CAM-UAE CEPA talks took place in the UAE capital of Abu Dhabi on October 24-25, the second round of dialogue was held in Phnom Penh on December 19-21. The two countries are expected to formalise and put their signatures to the pact at the fourth round of talks to be staged in Cambodia this year.

Rice trade with the UAE is one of the focus areas of the agreement, according to the officials. The agreement will also help Cambodian rice producers/exporters to reach out to other West Asian and North African countries (collectively known as the MENA region).

According to the CRF, rice exports to the Middle East region have shown a significant increase in recent years. The shipment of Cambodian rice has increased from 673 tons in 2019 to around 3,807 tons in 2020 and about 6,139 tons in 2021. Rice exports to the region reached 8,358 tons in 2022, the data shows.

In the first month of this year, the Cambodian milled rice was shipped to 34 countries, earning the Kingdom $92 million in revenue along with the export of paddy, according to the CRF statistics.

Exported milled rice varieties in 2022 included premium aromatic rice, fragrant rice, long grain white rice, parboiled rice, organic rice and glutinous rice, said the CRF.

Agriculture, one of the key pillars of the Cambodian economy, contributed 24.4 percent to the gross domestic product in 2021, according to the Ministry of Agriculture.

ISLAMABAD - Chairman United Business Group in Federation of Pakistan Chambers of Commerce and Industry Shahzad Ali Malik has said surplus crops of rice and maize would be exported to new destinations including African markets for earning direly much-needed foreign exchange.

Addressing the one day all Pakistan Chambers Presidents Conference at Rahim Yar Khan Chamber the other day, he stressed the urgent need for establishing imports substitution industries in Pakistan without loss of time to narrow down the yawning trade deficit and on the other hand, equally emphasised the vital significance of adding the new products in the export basket rather than only relying on textile and surgical, etc. He said there was a vast scope of exports to African countries and new global markets must be explored on top priority which he added would help a lot in stabilizing the balance of payment.

He said the use of hi-tech hybrid seeds resulted in bumper crops of rice and maize and its credit goes to the private sector which invented new disease-resistant and pest-free varieties to increase yield per acre. He stressed the need for evolving new hi-tech hybrid seeds for other field crops of cotton, wheat and sugarcane.

He said Pakistan’s economy was agro-based and Pakistan imports nearly $14 billion in edible oil, oil seeds, cotton and wheat annually which he added can be brought to zero level if government sincerely focuses on the promotion of the agriculture sector on modern scientific lines taking all stakeholders into confidence.

Shahzad Ali Malik said if the government takes care of its proposals and recommendations in letter and spirit, it will not only bring agricultural revolution in the country but also surplus agri products could be exported at high international rates. He said if half of the same amount spent on the imports of agro-based products is invested in growers, farmers, and peasants in Pakistan, it will not only comfortably meet the food staple needs of the ever-growing population but surplus can be exported. Nearly 50 presidents of chambers of commerce and industries across the country participated in the conference and put forth their viable proposals.

Reduced phosphorus – an essential nutrient – seen in paddy soils when CO2 in the atmosphere was elevated, according to researchersThey estimate 55 per cent of the world’s rice paddies will face increased yield reduction risks due to phosphorus deficiency in the future

Higher carbon dioxide levels could result in less phosphorus in paddy soils – and that could threaten the security of rice supplies in the future, according to a new study.

Phosphorus is an essential nutrient for plant metabolism and growth. A prolonged deficiency in the nutrient can affect plant development and limit yields, and previous research has suggested that increased carbon dioxide levels in the atmosphere could affect phosphorus levels in soil.

The new study – led by researchers from the Chinese Academy of Sciences’ Institute of Soil Science in Nanjing – involved two long-term experiments to evaluate the effect of elevated carbon dioxide on phosphorus concentrations in rice paddy fields.

Researchers found that by the end of the experiments, the phosphorus available in the soil had declined by more than 20 per cent. During a 15-year period from 2004 to 2018, there was a 27 per cent reduction. And between 2011 and 2019, phosphorus levels were down by 21 per cent.

The study was published in the peer-reviewed journal Nature Geoscience last month.

Soil phosphorus is found in two forms – organic and inorganic. About 30 to 65 per cent of soil phosphorus is organic and has to be converted to inorganic phosphate with the help of microbes in the soil before it can be taken up by plants. Another 35 to 70 per cent is inorganic, and that includes what is known as soil-available phosphorus.

Both experiments showed decreased soil-available phosphorus and increased soil organic phosphorus after several years of increased carbon dioxide emissions.

“The gathered data were precious and highly convincing since one can rarely find field data in such a big experimentation with decades-long monitoring history in the literature,” Dengjun Wang, co-author of the study and an assistant professor with the Auburn University College of Agriculture in Alabama, was quoted as saying on the university’s website.

Moreover, the study authors estimated that 55 per cent of the world’s rice paddy fields will experience increased yield reduction risks due to phosphorus deficiency in the future.

Most of these rice paddy fields are already facing phosphorus deficiency, according to the study. It said about 35 per cent were at extremely high risk of yield reduction and 15 per cent were at risk of phosphorus pollution.

The researchers said the risk of rice yield reduction would go up if carbon dioxide concentrations continued to rise, and low-income countries were expected to be hardest hit.

“This situation is likely to place poor countries under more adverse conditions and further widen the economic inequality associated with CO2 emissions,” the authors said.

The study involved two long-term experiments to evaluate the effect of elevated carbon dioxide on phosphorus levels in rice paddy fields. Photo: Shutterstock

Some 70 per cent of rice paddy fields in low-income countries are expected to face increased yield reduction risks, compared to 52 per cent in middle-high-income countries, according to the study.

That is partly due to the fact that middle-high-income countries have better resources for recycling alternative phosphorus fertilisers from waste and organic compounds.

The researchers suggested that phosphorus fertilisation rates needed to more than double in countries such as Myanmar and Indonesia to avoid reductions in the soil-available phosphorus supply for rice crops.

“To ensure further crop and environmental gains, climate change must be included as a key factor for future sustainable strategies of phosphorus management,” the study concluded.

The study was published in the peer-reviewed journal Nature Geoscience last month.

* In 2022, Pakistan achieved a significant milestone in its rice trade with China, as its rice exports surpassed $455m for first time

The news was announced by Ghulam Qadir, the Commercial Counsellor at Pakistan’s Embassy in Beijing, China.

Qadir highlighted that the General Administration of Customs of the People’s Republic of China reported a 53% year-on-year increase in bilateral trade in agriculture products, with China importing more than 1.19 million tons of different types of rice from Pakistan.

He credited the facilitation from both governments and the hard work of businessmen for the successful trade, adding that with the opening up of China, the exports are expected to grow even further.

According to statistics from the General Administration of Customs, in 2022, China imported semi or wholly milled rice, broken rice, and other rice varieties from Pakistan, which amounted to USD 211.88 million, USD 162.78 million, and USD 80.74 million, respectively.

Qadir expressed that the Chinese government has been supportive of Pakistan by establishing offline and online pavilions, and Pakistani rice has already hit the e-commerce platform in China, with sales expected to grow further. He also noted that they are working with the General Administration of Customs to ensure more Pakistani rice enterprises register and increase exports even further.

The Commercial Counsellor shared that Pakistani rice has gained popularity in the Chinese market due to its finest taste and quality, and the total number of Pakistani enterprises registered with the General Administration of Customs has increased to 62.

The growth in trade and registration of enterprises signify a positive trend for the bilateral relations between Pakistan and China, as they continue to strengthen their economic ties.

ISLAMABAD: Amid a global economic slowdown, Pakistan’s exports of rice posted a negative growth of 15.82 per cent in the first seven months of the current fiscal year mainly due to the flood devastation of paddy fields in Sindh.

In value, the total rice exports dipped to $1.08 billion in July-January this year from $1.28bn in the corresponding months of last year. The stagnation in export proceeds, especially of basmati rice, is mainly because of several reasons particularly the under-invoicing of rice to Afghanistan and Iran under the barter trade system.

Rice Exporters Association of Pakistan (Reap) Chairman Chela Ram Kewlani told Dawn that the data compiled by the Pakistan Bureau of Statistics (PBS) did not show the basmati rice exports to Iran and Afghanistan. However, he said the crop of long-grain white rice (non-basmati rice) has witnessed a 40pc reduction in Sindh.

As a result of this production loss, Mr Kewlani said that the non-basmati exports decline is justified. However, he did not agree with the government statistics showing a decline in the value and quantity of basmati exports.

Local prices witness an unprecedented surge

The PBS data showed that basmati exports in quantity fell by 22.95pc to 316,055 tonnes in 7MFY23 from 410,207 tonnes over the corresponding months of last year.

The non-basmati rice exports fell by 24.94pc to 1.62 million tonnes in 7MFY23 from 2.17m tonnes over the corresponding months of last year. Despite a substantial decline in exports, the prices of basmati and non-basmati increased unprecedentedly in the domestic market.

REAP Senior Vice Chairman Haseeb Khan told Dawn that people have invested money to stockpile rice after a slowdown in the real estate sector.

He said the carry-forward rice stocks were also negative for the past couple of years leading to an increase in domestic prices. Rice has emerged as a profitable sector for investors due to a slowdown in other sectors especially real estate.

Mr Khan said that the export of basmati to Iran and Afghanistan is misdeclared as low-quality rice. He further said that even the quantity of rice is also not declared at the border stations. Pakistan’s customs should look into this under-declaration of value and variety of rice to these two countries, he further said.

Rice seeds

There are eight districts in the world whose basmati rice is famous out of which six districts are in Pakistan and two in India. However, there are issues now cropping up, especially with rice seeds in the country.

The unabated housing schemes on GT Road in Punjab province are eating up this rare earth in six districts that are suitable for the cultivation of the world’s best basmati rice. However, the government did not take any action in this regard.

Former Chairman REAP who is not willing to be named told Dawn that inflation also has an impact on domestic prices. He said rice price in the international market has also seen an increase which has an impact on domestic rice.

The flying squad officials seized 7.5 tonnes of ration rice from a poultry farm on Saturday.

Acting on a tip-off that ration rice was crushed and provided to chickens in a poultry farm along with fodder, a flying squad from the District Supply Office led by Tahsildar N.S. Rajeshkumar raided a poultry farm at Arasanatham near Attur. During the raid, the officials found that ration rice in 133 gunny bags weighing 7.5 tonnes in a godown at the poultry farm.

The flying squad officials handed over the seized item to the Civil Supplies CID for further investigation.

The poultry farm owners claimed that they bought the rice from the general public. ,This was the first time that a flying squad had raided a poultry farm in Salem. The Civil Supplies CID would register the case and arrest the owners soon, sources added.

Chairman United Business Group in Federation of Pakistan Chamber of Commerce and Industry Shahzad Ali Malik said surplus crops of rice and maize would be exported to new destinations including African markets for earning direly much-needed foreign exchange.

Addressing the one day all Pakistan Chambers Presidents Conference at Rahim Yar Khan Chamber, he stressed the urgent need for establishing imports substitution industries in Pakistan without loss of time to narrow down the yawning trade deficit and on the other hand, equally emphasised the vital significance of adding the new products in the export basket rather than only relying on textile and surgical, etc.

He said there was a vast scope of exports to African countries and new global markets must be explored on top priority which he added would help a lot in stabilizing the balance of payment.

He said the use of hi-tech hybrid seeds resulted in bumper crops of rice and maize and its credit goes to the private sector which invented new disease-resistant and pest-free varieties to increase yield per acre.

He stressed the need for evolving new hi-tech hybrid seeds for other field crops of cotton, wheat and sugarcane.

He said Pakistan’s economy was agro-based and Pakistan imports nearly $14 billion in edible oil, oil seeds, cotton and wheat annually which he added can be brought to zero level if government sincerely focuses on the promotion of the agriculture sector on modern scientific lines taking all stakeholders into confidenceShahzad Ali Malik said if the government takes care of its proposals and recommendations in letter and spirit, it will not only bring agricultural revolution in the country but also surplus agri products could be exported at high international rates.

He said if half of the same amount spent on the imports of agro-based products is invested in growers, farmers, and peasants in Pakistan, it will not only comfortably meet the food staple needs of the ever-growing population but surplus can be exported.

Nearly 50 presidents of chambers of commerce and industries across the country participated in the conference and put forth their viable proposals.

He thanked the president Rahim Yar Khan Chamber Iqbal for hosting the conference and lauded the group chairman Rauf Mukhtar’efforts making the event a success.—APP

RPT-ASIA RICE-THAI PRICES SLIP ON WEAKER BAHT; INDIAN VARIETY SEES FIRM DEMAND

(Repeats Thursday's story with no changes to text)

*

New supplies in April awaited - Thai trader

*

Buyers comfortable with the price rise in India - trader

*

Vietnam to export 6 mln tonnes despite low domestic inventory

By Seher Dareen

Feb 16 (Reuters) - Thai rice export prices dropped this week to their lowest levels in more than one month due to a softer baht and demand, while Indian rates held firm near their highest in about two years on strong buying.

Thailand's 5% broken rice prices <RI-THBKN5-P1> were quoted at $460 - $465 per tonne, down from last week's $480 - $490.

"The baht is weaker and has lowered the price of rice. Demand has been quiet and there has not been a big lot order," said a Bangkok-based trader.

Demand is still quiet and will have to wait until a new lot of supply in April, said another trader.

Top exporter India's 5% broken parboiled variety <RI-INBKN5-P1> was quoted at $395 to $402 per tonne this week, unchanged from last week.

"Buyers were making purchases despite the recent rise in prices. They are comfortable with the price rise," said a Mumbai-based dealer with a global trade house.

India's rice exports in 2022 jumped to a record high despite the government's curbs on overseas sale, as buyers continued to make purchases because of competitive prices, according to government and industry officials.

Vietnam's 5% broken rice <RI-VNBKN5-P1> were offered at $455-$460 per tonne on Thursday, unchanged from a week ago.

"Prices are expected to stay at elevated levels as many countries are buying to boost their national reserves, including China and Indonesia," a trader based in Ho Chi Minh City said.

Traders forecast this year's exports to be over 6 million tonnes, adding that domestic inventory levels are low.

Meanwhile, domestic rice prices in Bangladesh stay high despite good crops and reserves, traders said. The government has also been importing rice while private traders have been allowed to buy in an effort to cool prices. (Reporting by Rajendra Jadhav in Mumbai, Khanh Vu in Hanoi, Panu Wongcha-um in Bangkok, Ruma Paul in Dhaka; Editing by Sherry Jacob-Phillips)

© Copyright Thomson Reuters 2023. Click For Restrictions - http://about.reuters.com/fulllegal.asp

STUTTGART, Ark. — Scientists at the University of Arkansas System Division of Agriculture’s Rice Research and Extension Center seek to develop rice that is more resilient in the face of climate change and usable water depletion.

  Arkansas Agricultural Experiment Station scientists Nick Bateman, associate professor and extension entomologist, and Stan De Guzman, assistant professor and rice breeder, have been awarded $547,842 as part of a four-year, $10 million grant from the USDA’s National Institute of Food and Agriculture. Louisiana State University is the lead institution on the grant to improve the sustainability and profitability of rice farming through research innovations.

The project’s collaborating institutions include Clemson University, Mississippi State University, Texas A&M AgriLife, and the Arkansas Agricultural Experiment Station, the research arm of the Division of Agriculture. Jai Rohila, a research agronomist for USDA’s Agricultural Research Service based at the Dale Bumpers National Rice Research Center in Stuttgart, is also involved in the grant.

“I am thrilled to see this investment in rice research by USDA-NIFA,” said Jean-François Meullenet, director of the Arkansas Agricultural Experiment Station and senior associate vice president for agriculture-research for the Division of Agriculture. “I want to congratulate LSU and the research team on this award. This project has the potential to enhance rice production in southern states, and I look forward to the impact it will have on rice farmers in Arkansas.”

Extreme weather patterns due to climate change pose serious challenges to enhancing productivity, according to the project proposal summary. The project aims to help rice growers in the southern U.S. make the right decisions at the right time to reduce yield losses, land use, and water and energy consumption.

Rice is among Arkansas’s top three agricultural commodities, worth approximately $1.2 billion in 2020. According to the U.S. Department of Agriculture, the state typically produces 56 to 58 percent of the nation’s long-grain rice.

De Guzman will work to develop rice lines with heat stress tolerance using advanced genetic techniques. The process includes evaluating different rice lines for grain quality and agronomic and physiological traits under drought stress in field conditions using the alternate wetting and drying growing method. He will then work to incorporate those genetic traits into elite rice lines and varieties with drought and heat tolerance.

Bateman’s role is to conduct a study that monitors the changes in insect pressure when moving from flooded rice to the alternate wetting and drying method for water savings. Bateman said rice water weevil larvae are substantially reduced when moving to alternate wetting and drying. Still, other insects like armyworms, rice billbugs and chinch bugs are prone to pop up. He will look at environmentally friendly pesticides to control those populations.

“It’s not so much about controlling the insects but controlling the stress,” Bateman said. “Since part of the overall project is to reduce water use, we will be looking at what other insect pressures arise when you take it off a flood.”

Prasanta Subudhi, the lead investigator of the project and a crop geneticist in the LSU AgCenter School of Plant, Environmental and Soil Sciences, said, “We will equip the current and next generation of rice farmers, consultants and researchers with the necessary knowledge and skillset to embrace the new climate-smart agriculture technologies and production practices.”

“Knowledge gained from this project will increase the speed and accuracy of identifying rice genotypes with desirable combinations of genes for improved adaptation to a changing climate,” the project proposal summary states.

The specific objectives of the project are to assess the socio-economic and environmental impacts of current crop management practices and identify barriers to adopting novel technologies and practices; develop novel genotypes with enhanced tolerance to biotic and abiotic stresses; develop and optimize environmentally friendly crop management practices; and implement a robust extension program to disseminate the concepts and benefits of sustainable farming technology.

The five collaborating institutions are members of the Southern Association of Agricultural Experiment Station Directors, which represents 15 agricultural research centers at land-grant universities in the southern U.S. Southern region scientists collaborate to conduct research and outreach focused on conserving the region’s natural resources and sustainably feeding a growing global population.

“This grant demonstrates the importance and power of regional research collaborations in providing solutions to pressing problems that impact growers and consumers,” said Gary Thompson, executive director of the Southern Association of Agricultural Experiment Station Directors. “This significant federal investment leverages the capacity of our State Agricultural Experiment Stations to assist farmers in modifying their practices to a changing environment.”

This grant is part of a $70 million investment from USDA to establish robust, resilient and climate-smart food and agricultural systems.

“Southern U.S. rice production is concentrated in Louisiana, Arkansas, Mississippi and Texas, and rice research is a major component of the research portfolios of the agricultural experiment station in these states,” said Michael Salassi, interim LSU AgCenter executive associate vice president and director of the Louisiana Agricultural Experiment Station. “This grant will provide the many rice scientists across the region the opportunity to work collaboratively to evaluate alternate climate-smart production practices associated with a major U.S. food crop.”

To learn more about Division of Agriculture research, visit the Arkansas Agricultural Experiment Station website: https://aaes.uada.edu. Follow on Twitter at @ArkAgResearch. To learn more about the Division of Agriculture, visit https://uada.edu/. Follow us on Twitter at @AgInArk. To learn about extension programs in Arkansas, contact your local Cooperative Extension Service agent or visit www.uaex.uada.edu.

About the Division of Agriculture

The University of Arkansas System Division of Agriculture’s mission is to strengthen agriculture, communities, and families by connecting trusted research to the adoption of best practices. Through the Agricultural Experiment Station and the Cooperative Extension Service, the Division of Agriculture conducts research and extension work within the nation’s historic land grant education system.

The Division of Agriculture is one of 20 entities within the University of Arkansas System. It has offices in all 75 counties in Arkansas and faculty on five system campuses.

The University of Arkansas System Division of Agriculture offers all its Extension and Research programs and services without regard to race, color, sex, gender identity, sexual orientation, national origin, religion, age, disability, marital or veteran status, genetic information, or any other legally protected status, and is an Affirmative Action/Equal Opportunity Employer.

'Rice is being provided to 50 lakh families at a rate of Tk15 per kg under the Food Friendly Programme (FFP); OMS trucks now carrying 500kg more essentials to meet growing demand'

The government, under the VGF (Vulnerable Group Feeding) programme, will give 10kg of free rice to one crore families each. These are the families who are currently not receiving any form of government aid.

"This initiative will commence at the beginning of Ramadan," Food Minister Sadhan Chandra Majumder told reporters at the Secretariat on Thursday noon (16 February).

The food minister said that Open Market Sales (OMS) rice is being sold at Tk30/kg and flour at Tk24/kg.

Also, rice is being provided to 50 lakh families at a rate of Tk15 per kg under the Food Friendly Programme (FFP), he said adding that OMS trucks are now carrying 500kg more essentials to meet growing demand.

"All things considered, the price of rice is currently stable," the minister said.

He said that the law to ban the sale of polished rice under different names and to name rice varieties based on the names of the paddy is up for scrutinisation. 

He said that there is nothing to worry about when it comes to the stock of rice. "limited scale imports are taking place. Also, stocks are at an all-time high. 

"Some 374,030MT of Aman rice has been collected till yesterday. Our target is 5 lakh MT." 

Sadhan Chandra said, "The ongoing global crisis has not affected Bangladesh in terms of food and it is likely to remain the same in the future. Besides, we are expecting a bumper Boro season."

The minister said that FFP will resume from 1 March till May. "OMS are ongoing and will continue. "We will be able to sell atap rice, imported from Myanmar, in Ramadan."

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 16th Feb, 2023 ) :Chairman United business Group in Federation of Pakistan Chamber of Commerce and Industry�Shahzad Ali Malik said surplus crops of rice and maize would be exported to new destinations including African markets for earning direly much-needed foreign exchange.

Addressing the one day all Pakistan Chambers Presidents Conference at Rahim Yar Khan Chamber, he stressed the urgent need for establishing imports substitution industries in Pakistan without loss of time to narrow down the yawning trade deficit and on the other hand, equally emphasised the vital significance of adding the new products in the export basket rather than only relying on textile and surgical, etc.

He said there was a vast scope of exports to African countries and new global markets must be explored on top priority which he added would help a lot in stabilizing the balance of payment.

He said the use of hi-tech hybrid seeds resulted in bumper crops of rice and maize and its credit goes to the private sector which invented new disease-resistant and pest-free varieties to increase yield per acre.

He stressed the need for evolving new hi-tech hybrid seeds for other field crops of cotton, wheat and sugarcane.

He said Pakistan's economy was agro-based and Pakistan imports nearly $14 billion in edible oil, oil seeds, cotton and wheat annually which he added can be brought to zero level if government sincerely focuses on the promotion of the agriculture sector on modern scientific lines taking all stakeholders into confidence.

Shahzad Ali Malik said if the government takes care of its proposals and recommendations in letter and spirit, it will not only bring agricultural revolution in the country but also surplus agri products could be exported at high international rates.

He said if half of the same amount spent on the imports of agro-based products is invested in growers, farmers, and peasants in Pakistan, it will not only comfortably meet the food staple needs of the ever-growing population but surplus can be exported.

Nearly 50 presidents of chambers of commerce and industries across the country participated in the conference and put forth their viable proposals.

He thanked the president Rahim Yar Khan Chamber Iqbal for hosting the conference and lauded the group chairman Rauf Mukhtar'efforts making the event a success.

NEW DELHI: India is likely to produce nearly 324 million tonnes (MT) of foodgrains in the 2022-23 crop year (July-June), a new record and higher by around 8 MT (2.5%) than the output in the previous crop year.
The increase is mainly backed by the all-time record production of the paddy (131 MT), wheat (112 MT) and pulses (28 MT). High-priority millets could not match the increased attention with bajra recording only marginal increase whereas jowar and ragi reported a decline.
Millets output shows that the farmers continue to prefer paddy (rice) and wheat as current focus of procurement mainly on these two major crops make it an easy choice for them. Overall output of coarse/nutri cereals (53 MT), however, reported an increase in 2022-23 compared to previous year, mainly due to record output of maize and barley.
Second advance estimates of production of major crops, released by the agriculture ministry on Tuesday, showed even record output of certain non-foodgrains including oilseeds and sugarcane. Among oilseeds, mustard recorded an increase of over 7% this year compared to 2021-22.

Attributing the record output of foodgrains and oilseeds to "hard work of farmers, proficiency of scientists and farmer's friendly policies" of his government, agriculture minister Narendra Singh Tomar hoped that there would be increase in production and use of coarse/nutri cereals in the coming years.
"It is expected that more and more farmers may switch over to millets during upcoming kharif season, beginning June, as many states have lined up with incentives to them during the International Year of Millets 2023 in sync with the government's efforts to make India a global hub for millets," said an official in the ministry.
The current assessment of production of different crops is based on the feedback received from states and validated with information available from other sources. "This assessment will undergo further revision over successive estimates based upon feedback received from the states, alternative sources and other factors," said the ministry which comes out with four estimates before releasing the final one for a particular crop year.

* Ambassador also briefs REAP members on political, economic and security situation in Ethiopia and assures them of all-out facilitation in doing business in Ethiopia

Ambassador Extraordinary and Plenipotentiary of the Federal Democratic Republic of Ethiopia to the Islamic Republic of Pakistan H.E. Jemal Beker Abdula on Tuesday urged the Pakistani rice exporters to explore the Ethiopian market by joining in the five-day trade delegation flying to his country on March 05. “The rice exporters of Pakistan will get an opportunity to connect with the right people in Ethiopia by taking part in the trade delegation which includes subsidized airfares and accommodation at five-star hotel, visits to the industrial sites and above all meetings with the top leadership of his country,” he said during a meeting with the Rice Exporters Association of Pakistan (REAP) here. He said the Pakistani exporters could penetrate in the markets of Africa by investing in the agriculture sector and transferring their technology to Ethiopia. However, the REAP needed to develop a strategic framework to better compete with the other competitors which were selling the quality rice at affordable rates.

The ambassador said the rice exporters could play their due role in boosting the exports of their country by exporting the edibles to the markets of East Africa. Pakistan and Ethiopia had signed a trade agreement today to formalize the trade between two countries, he added.

The ambassador also briefed the REAP members on political, economic and security situation in Ethiopia and assured them of all-out facilitation in doing business in Ethiopia which had undergone a lot of transformation under the leadership of Prime Minister of Ethiopia H.E. Dr. Abiy Ahmed.

He said the cost of production was cheap in Ethiopia which had been producing clean energy through water, solar and geo thermal sources. It was also a signatory of the Africa Continental Free Trade Agreement which enabled the manufacturers in Ethiopia to sell their products across the continent.

There has been full investment protection guarantee in Ethiopia, he noted. REAP Senior Vice Chairman Haseeb Khan gave a detailed briefing to H.E. Jemal Beker on the exports potential of rice in Pakistan and said there was a strong appetite in exporters to explore other markets. He commended the efforts of Ambassador H.E. Jemal Beker for organizing the trade delegation to bring the two big nations more close. “I hope you will be able to achieve your target of increasing the bilateral trade between the two countries to $200 soon,” he added. At the end of meeting, the ambassador addressed to different queries of the exporters and highlighted the opportunities for the Pakistani businessmen in diverse sectors of economy including manufacturing, agriculture and agro processing, textile, fertilizer, chemicals and tourism.

A fungus that plagues rice crops worldwide gains entry to plant cells in a way that leaves it vulnerable to simple chemical blockers, a discovery that could lead to new fungicides to reduce the substantial annual losses of rice and other valuable cereals.

Each year, blast disease, caused by the fungal pathogen Magnaporthe oryzae, attacks and kills plants that represent between 10% and 35% of the global rice crop, depending on weather conditions.

University of California, Berkeley biochemists led by Michael Marletta, professor of chemistry and of molecular and cell biology, have discovered that the fungus secretes an enzyme that punches holes in the tough outer layer of rice leaves. Once inside, the fungus rapidly grows and inevitably kills the plant.

In a paper published this week in the journal Proceedings of the National Academy of Sciences, Marletta and his colleagues describe the structure of the enzyme and how it works to help the fungus invade plants. Because the enzyme is secreted onto the surface of the rice leaf, a simple spray could be effective in destroying the enzyme's ability to digest the wall of the plant. The scientists are now screening chemicals to find ones that block the enzyme.

"The estimates are that if you could knock out this fungus, you could feed 60 million more people in the world," said Marletta, the Choh Hao and Annie Li Chair in the Molecular Biology of Diseases at UC Berkeley. "This enzyme is a unique target. Our hope here is that we'll screen to find some unique chemicals and spin out a company to develop inhibitors for this enzyme."

This target is one of a family of enzymes called polysaccharide monooxygenases (PMO) that Marletta and his UC Berkeley colleagues discovered a little over 10 years ago in another more widespread fungus, Neurospora. Polysaccharides are sugar polymers that include starch as well as the tough fibers that make plants sturdy, including cellulose and lignin. The PMO enzyme breaks cellulose into smaller pieces, making the polysaccharide susceptible to other enzymes, such as cellulases, and speeding up the breakdown of plant fibers.

"There is an urgent need for more sustainable control strategies for rice blast disease, particularly in South Asia and sub-Saharan Africa," said Nicholas Talbot, who is Marletta's colleague and co-author, a plant disease expert and executive director of The Sainsbury Laboratory in Norwich in the United Kingdom. "Given the importance of the polysaccharide monooxygenase to plant infection, it may be a valuable target for developing new chemistries that could be applied at much lower doses than existing fungicides and with less potential environmental impact. It might also be a target for completely chemical-free approaches, too, such as gene silencing."

Marletta and UC Berkeley Ph.D students Will Beeson and Chris Phillips were originally interested in these enzymes because they degrade plant cellulose much more quickly than other previously described enzymes and thus had potential to turn biomass into sugar polymers that can be fermented more readily into biofuels. Fungi use PMOs to provide a source of food.

He and UC Berkeley colleagues subsequently found hints that some fungal PMOs may do more than merely turn cellulose into food. These PMOs were turned on in the early stages of infection, implying that they're important in the infection process rather than providing food.

That's what Marletta, Talbot and their colleagues found. Led by postdoctoral fellow Alejandra Martinez-D'Alto, the UC Berkeley scientists biochemically characterized this unique PMO, called MoPMO9A, while Talbot and UC Berkeley postdoctoral fellow Xia Yan showed that knocking out the enzyme reduced infection in rice plants.

Marletta and his UC Berkeley colleagues have found similar PMOs in fungi that attack grapes, tomatoes, lettuce and other major crops, which means the new findings may have broad application against plant fungal diseases.

"It isn't just rice that small molecule inhibitors could be used against. They could be widely used against a variety of different crop pathogens," Marletta said. "I think the future for this, in terms of drug development for plant pathogens, is pretty exciting, which is why we are going to pursue both the fundamental science of it, like we always do, and try to put together pieces to spin it out as a company."

Biofuels lead way to attacking fungal pathogen

Marletta specializes in identifying and studying new and unusual enzymes in human cells. But 10 years ago, when people got excited about biofuels as a way to address climate change, he was awarded a grant from UC Berkeley's Energy Biosciences Institute to search for enzymes in other life forms that digest plant cellulose faster than the enzymes known at the time. The goal was to turn tough cellulose fibers into short-chain polysaccharides that yeast could ferment into fuel.

"I said to two of my first-year graduate students, Chris Phillips and Will Beeson, "You know, there's got to be organisms out there that eat cellulose fast,'" Marletta said. "Those are the ones we want to find, because we know the enzymes that eat it slow, and they're not particularly useful in a biotechnology sense because they're slow."

Phillips and Beeson succeeded in finding fast-acting enzymes in a common fungus, Neurospora, which is among the first fungi to attack dead trees after a fire and does a quick job of digesting wood for nutrients. They isolated the enzyme responsible, the first known PMO, and described how it worked. Since then, Marletta's students have identified 16,000 varieties of PMO, most in fungi, but some in wood-eating bacteria. To date, these have had some success in speeding the production of biofuels as part of a cocktail of other enzymes, though they haven't made biofuels competitive with other fuels.

But Marletta was intrigued by a small subset of these 16,000 varieties that seemed to do more than provide nutrition for fungi. MoPMO9A, in particular, had an amino acid segment that binds to chitin, a polysaccharide that forms the outer coat of fungi, but is not found in rice. And though all PMOs are secreted, MoPMO9A was secreted during the infectious cycle of the fungus.

Studies subsequently showed that Magnaporthe concentrates MoPMO9A in a pressurized infection cell, called the appressorium, from which it is secreted onto the plant, with one portion of the enzyme binding to the outside of the fungus. The other end of the enzyme has a copper atom embedded in its center. When the fungus slaps the loose end of the enzyme onto the rice leaf, the copper atom catalyzes a reaction with oxygen to break cellulose fibers, helping the fungus breach the leaf surface and invade the entire leaf.

"We were curious: 'Hey, why does this enzyme have a chitin-binding domain if it's supposed to be working on cellulose?'" said Marletta. "And that's when we thought, "Well, maybe it's secreted, but it sticks to the fungus. That way, when the fungus is sitting on the plant, it can have between it and the leaf the catalytic domain to punch the hole into the leaf.'"

That proved to be the case. Marletta and Talbot are now testing other pathogens that produce PMOs to see if they use the same trick to enter and infect leaves. If so—Marletta is confident that they do—it opens avenues to attack them with a spray-on fungicide, as well.

"The only place you find PMOs like this is in plant pathogens that have to gain access to their host. So, they're almost certainly going to be working the same way," Marletta said. "I think the scope of work to develop inhibitors to this particular PMO is going to be well beyond rice, even though that itself is pretty important. We're going to be able to use them in other important crop plants."

Basmati rice sales are likely to increase 30 per cent to more than Rs 50,000 crore in the current fiscal, mainly due to high realisation and healthy demand, according to a report

Basmati rice sales are likely to increase 30 per cent to more than Rs 50,000 crore in the current fiscal, mainly due to high realisation and healthy demand, according to a report.

In the report on Thursday, Crisil Ratings said that next fiscal, however, sales will decline 5-7 per cent as basmati rice realisation is expected to soften with anticipated increase in paddy acreage.

The volume demand is expected to remain stable at 6.8 million tonnes, it added.

"Basmati sector sales will likely rise 30 per cent this fiscal, with volume growing 10 per cent and realisation increasing 20 per cent.

"Growth in export volume is driven by two factors -- increased food grain demand amid geo-political issues, and India benefiting from lower basmati exports from flood-affected Pakistan, a key basmati exporter. Next fiscal, sector sales will reduce by 5-7 per cent solely due to moderating prices," Crisil Ratings Director Nitin Kansal said.

Basmati rice exports, comprising 64 per cent of sales by volume, are estimated to log a healthy growth of 11 per cent on-year this fiscal to 4.4 million tonnes following strong demand from key markets like the Middle East and the US, as per the report.

India has already exported 3.19 million tonnes (growth of 16 per cent year- on-year) of basmati rice in the first nine months of this fiscal.

The report said the improved operating profitability will, in turn, result in higher cash accrual, which will improve the financial risk profiles of basmati players.

"Though absence of capex will limit basmati players' requirement of external long-term funds, their working capital borrowings will rise as paddy procurement will increase this fiscal to meet increased demand.

"However, increased cash flows from business will control the overall leverage of the players, keeping credit profiles stable," Crisil Ratings Team Leader Rachna Anand said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Rice farmers from Regions Two, Three, Five and Six met Agriculture Minister Zulfikar Mustapha on Wednesday to discuss the problems they were facing in the industry. A press release from the Ministry said that they wanted the government to intervene over what they regarded as price gouging by spare parts dealers, although it was recognised that most of their problems were a consequence of unfavourable weather conditions and external economic factors. They also asked for an across-the-board price for paddy, since farmers in all regions had to face the same issues. Where this was concerned Mr Mustapha explained to them that it would not be possible to standardise the price of paddy, because the transportation costs for millers varied from region to region. The cost in Region Two, for example, would be more than that in Region Five, although he assured them the government would continue to engage millers on prices. In addition, he said, it was still in contact with Panama in an attempt to recover the payments that country owed to millers here.

In relation to the price gouging allegation, the release reported the Minister as reminding the farmers that VAT was no longer applicable to inputs and equipment for the agricultural sector but said he would engage the Guyana Revenue Authority on the issue after he was informed that some dealers were still charging VAT. That apart, he also told them that the government was in discussion to source cheaper fertilizers. He was then quoted as saying: “Most of the issues faced in the sector, we have to work together to resolve them. The weather hasn’t been favourable but we are working to strengthen our infrastructure. We are building new pump stations to assist with drainage. We are building new farm-to-market roads, and rehabilitating dams so that you can access your fields. We’ve been working to enhance the drying facilities that we have across the country …”

The Ministry of Agriculture does not have it in its direct power to confront dishonest parts dealers, force irresponsible Panamanians to pay the millers, or stop the Ukraine War which has caused high fertiliser prices, but it does have an obligation to advise farmers about the problem which affects them most, i.e, climate change. Mr Mustapha spoke about strengthening the infrastructure and building new pump stations to help with drainage as well as rehabilitating dams, and while all these initiatives are vital, at best they address the fundamental problem only obliquely.

At the end of last month we reported on rice cultivation in Leguan where lands have been abandoned by farmers for the last three or four crop cycles because of changing weather patterns. This has caused them substantial losses and has left several in debt. A few have decided to change from rice to cattle rearing, while others have tried growing bananas along with rice to limit their losses. Bananas are a crop which can withstand the heavy, recurrent rainfall. One source told our reporter that fewer farmers had returned to cultivate this year, and that only about one third of the lands have been cultivated. Last year the newspaper was told, there were about $20 million in losses on an island where rice provides the main source of income for residents.

As was pointed out, it is not as if the situation on Leguan is unique; the changing weather pattern affected the whole of the Essequibo coast as well as Berbice. With reference to the last-named county President of the Guyana Rice Producers Association Lekha Rambrich told this newspaper that the rainfall had prevented many farmers from being able to prepare their lands in time for cultivation. He was quoted as saying, “The lands become so saturated you cannot go into reap nor [can] you … go into preparing it … We have seen rain falling in April and October when normally it just drizzles, but these past years it has been continuous.” From a total of 235,000 acres under rice only 180,000 were being cultivated for this crop. Low production also affects the millers, since they are unable to sign new contracts to maintain a hold on their markets or go after new ones.

We reported that in a context of such major losses, questions were being raised as to whether it is not time for a rice fund to be established in order to support the industry, although Mr Rambrich indicated there might be technical issues in the way of this. For his part Minister Mustapha said that although there was no fund in place to support farmers who were suffering as a result of climate change, the Guyana Rice Development Board would help farmers through measures other than cash handouts.  Even if a fund were set up for rice farmers, it would be an interim measure. In the longer term the government has to address the implications of climate change and advise the farmers accordingly. And it is not just the rice farmers. The majority of Guyana’s inhabitants live on the coast, and Georgetown, New Amsterdam and their environs aside, a large proportion of them are engaged in agriculture of one kind or another. What does the future of the coast look like, and more particularly, what is the future of the crops which are grown there, particularly rice, and, it might be added, sugar too? Our report mentioned some varieties of rice such as the GRDB15 and 196 which can withstand the impact of the change in climate, but that the farmers preferred varieties which produced higher yields such as the GRDB 16 and 10.

It is time that the Ministry of Agriculture started looking at these matters and helping the farmers to transition to varieties which are resistant to the changing weather conditions, as well as looking at the kind of infrastructure suitable for each of the regions which will be required for them to be able to cultivate the land. If it is not possible for the farmers to adjust and the government to provide the necessary infrastructure some of which the Minister listed, then it would have to be asked whether rice would still be a viable crop in the long term. According to forecasts this crop season is expected to be dry, and therefore will allow the farmers to prepare land for the next crop. That, however, will just be an interlude; it does not reflect the longer trend of what will happen along the coast in terms of weather patterns.

RPT-ASIA RICE-INDIA RATES AT NEAR 2-YEAR HIGH ON FIRM DEMAND; THAI PRICES SLIP

(Repeats with no changes to text)

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New supplies in March could impact prices - Thai trader

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Vietnam rice exports down over 17% in January

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Rice prices stay elevated in Bangladesh despite good crops

By Rahul Paswan

Feb 10 (Reuters) - Indian rice export prices extended their rally to a near two-year high on strong buying, while Thai rates fell for the second straight week due to a weaker baht and lower demand.

Top exporter India's 5% broken parboiled variety <RI-INBKN5-P1> was quoted at $395 to $402 per tonne this week, up from last week's $393-$398.

"Indian prices are going up but still buyers are making purchases for March and April shipments," said a Mumbai-based dealer with a global trade house.

Thailand's 5% broken rice prices <RI-THBKN5-P1> were at $480 -$490 per tonne on Thursday, down from $495 per tonne last week.

"Despite the weakening of the prices due to the exchange rate, demand remains weak because exporters sees the current prices as high," a Bangkok-based rice trader said.

Another trader said supply has also decreased, helping maintain the current level of prices.

A Bangkok-based trader said prices could change once new supplies enter the market at the beginning of March.

High cost of freighters also contributed to muted supply and the rise in rice prices, another trader said.

In Vietnam, 5% broken rice <RI-VNBKN5-P1> was offered at $455-$460 per tonne on Thursday, up from a range of $445-$450 per tonne a week ago.

"Traders are resuming their rice purchases from farmers to prepare for new contracts, following the holiday," a Ho Chi Minh City-based trader said.

Vietnam's rice exports in January fell 17.3% from the previous month to 359,310 tonnes, customs data showed.

"Supplies remain low as the winter-spring harvest won't peak until next month," said a trader based in Ho Chi Minh City.

In Bangladesh, domestic rice prices stayed elevated despite a good harvest, which officials blamed on hoarding by dishonest traders. The government is also importing rice while private importers have been given permission to import rice. (Reporting by Rajendra Jadhav in Mumbai, Khanh Vu in Hanoi, Panu Wongcha-um in Bangkok, Ruma Paul in Dhaka; Editing by Devika Syamnath)

The Central Regional Coordinating Council (CRCC), on Wednesday, took delivery of 2,500 kg (2.5MT) of high-quality rice seeds to boost the Region’s rice revolution drive.

The gesture formed part of the $8million intervention by the Korea International Corporation Agency (KOICA) under its Rice Value Chain Support Programme (RVCSP) for farmers.

The KOICA in June 2021 launched its RVCSP, now being implemented in five beneficiary districts in the Region; Gomoa East, Assin Fosu, Assin North, Assin South, and Twifo Atti-Morkwa.

The project seeks to improve the quality of life of rural farmers in the Region through increased rice production and income of farmers.

It is also aimed at leveraging the capacities deployed by the KOICA rice value chain interventions with machinery and equipment, knowledge, and skills training programmes to increase output.

Dubbed: “Central Region Movement for Planting for One More Square Meter of Rice for the Next generation,” the move had been spearheaded by CRCC and the various Metropolitan, Municipal and District Assemblies.

Addressing beneficiary farmers at a brief presentation ceremony, Mr Moon Heon Kong, the Country Director of KOICA, said the RVCSP had a broader goal of increasing rice value addition among farmers in the beneficiary districts of the Region.

He commended Mrs Justina Marigold Assan, the Regional Minister, for her commitment and support to making the Region the hub of quality rice production. He said rice had become an important staple on the Ghanaian menu to the extent
that its value was far beyond what it had traditionally been known for.

Aside from the nutritional value, he said, the initiative buttressed the policy of the Ministry of Food and Agriculture to attain the country’s estimated self-sufficiency in rice production by 2023/2024.

“The estimated USD500 million used to import rice into the Ghanaian market can significantly reduce with initiatives such as the “Central Region Movement for Planting One More Square Meter of Rice for the Next Generation.

“This is a progressive initiative that will eventually help preserve the country’s hard-earned forex, help create jobs with improved livelihoods around the value chain activities, contribute to local economic development, and many other benefits,” the Country Director of KOICA said.

For her part, Mrs Assan said the region had the potential to produce enough rice to feed the country and boost the economy and livelihoods of farmers.

She said the Region had strategized to become the fulcrum of rice production and rice seedlings for rice farmers in the country.

“Undoubtedly, the region has the capacity and prospects to produce rice to meet local demand and for export and I encourage you all to support,” she added.

MUMBAI/HANOI /BANGKOK/DHAKA: Indian rice export prices extended their rally to a near two-year high on strong buying, while Thai rates fell for the second straight week due to a weaker baht and lower demand. Top exporter India’s 5% broken parboiled variety was quoted at $395 to $402 per tonne this week, up from last week’s $393-$398.

“Indian prices are going up but still buyers are making purchases for March and April shipments,” said a Mumbai-based dealer with a global trade house.

Thailand’s 5% broken rice prices were at $480 -$490 per tonne on Thursday, down from $495 per tonne last week. “Despite the weakening of the prices due to the exchange rate, demand remains weak because exporters see the current prices as high,” a Bangkok-based rice trader said. Another trader said supply has also decreased, helping maintain the current level of prices.

A Bangkok-based trader said prices could change once new supplies enter the market at the beginning of March. High cost of freighters also contributed to muted supply and the rise in rice prices, another trader said. In Vietnam, 5% broken rice was offered at $455-$460 per tonne on Thursday, up from a range of $445-$450 per tonne a week ago. “Traders are resuming their rice purchases from farmers to prepare for new contracts, following the holiday,” a Ho Chi Minh City-based trader said. Vietnam’s rice exports in January fell 17.3% from the previous month to 359,310 tonnes, customs data showed. “Supplies remain low as the winter-spring harvest won’t peak until next month,” said a trader based in Ho Chi Minh City.

In Bangladesh, domestic rice prices stayed elevated despite a good harvest, which officials blamed on hoarding by dishonest traders. The government is also importing rice while private importers have been given permission to import rice.

A combination of high realisation and healthy demand will help the basmati rice sector log strong sales growth of over 30% on-year to more than Rs 50,000 crore in fiscal 2023, its highest ever, said Crisil in a media release.

It added: "Next fiscal, however, sales will decline by 5-7% as basmati rice realisation is expected to soften with anticipated increase in paddy acreage, leading to higher supply. The volume demand is expected to remain stable at ~6.8 million tonne. Higher realisation, compared with increase in raw material prices, will also improve operating profitability by 100-125 basis points (bps) this fiscal, while the absence of capex and increased cash accrual will keep credit risk profiles stable.

According to the ratings agency, exports, comprising 64% of basmati sales by volume, are estimated to log a healthy growth of ~11% on-year this fiscal to ~4.4 million tonne, riding on strong demand from key markets such as the Middle East and the US. India has already exported 3.19 million tonne (growth of 16% on-year) of basmati rice in the first nine months of this fiscal.

"Domestic demand, on the other hand, should log 8-9% volume growth to 2.4 million tonne, riding on higher demand from the hotel, restaurant, and café segment, which is expected to fare better this fiscal on account of increased social gatherings as the pandemic tapers. Household demand is expected to remain stable," said the report.

Nitin Kansal, Director, CRISIL Ratings said, “Basmati sector sales will likely rise ~30% this fiscal, with volume growing 10% and realisation increasing ~20%. Growth in export volume is driven by two factors: increased food grain demand amid geo-political issues, and India benefitting from lower basmati exports from flood-affected Pakistan, a key basmati exporter. Next fiscal, sector sales will reduce by 5-7% solely due to moderating prices.” Increase in the prices of paddy (key raw material) by about 18% in fiscal 2023 will add a percentage point to operating profitability, which will stabilise at ~7%. Profitability will remain at a similar level next fiscal as paddy prices are expected to fall. The improved operating profitability will, in turn, result in higher cash accrual, which will improve the financial risk profiles of basmati players, though they will likely utilise the entire cash accrual to fund increased working capital requirement in the current fiscal."

Rachna Anand, Team Leader, CRISIL Ratings said, “Though absence of capex will limit the CRISIL rated basmati players’ requirement of external long-term funds, their working capital borrowings will rise as paddy procurement will increase this fiscal to meet increased demand. However, increased cash flows from business will control the overall leverage of the players, keeping credit profiles stable.” Looking ahead, working capital management, monsoon intensity, and the next crop harvest will bear watching.

Exports increased 17% to 3.2 million tonnes in April-December; unit value realisation up 40%

India’s basmati rice exports surged 17 per cent in volume during the first three quarters of the current fiscal, while exporters are earning at least 20 per cent more on average in overseas markets as Iran, Saudi Arabia, and the UAE together bought half of India’s total shipments of the aromatic rice.

According to the latest data from the Agricultural and Processed Food Products Export Development Authority (APEDA), the shipments of basmati rice increased to 3.2 million tonnes (mt) in April–December of the current fiscal from 2.74 mt in the year-ago period. However, in terms of value, the surge was 40 per cent to $3.34 billion from $2.38 billion. Due to the depreciating rupee, the growth is even higher – 50.5 per cent - in Indian currency, at ₹26,591 crore against ₹17,664 crore. In fact, export realisation in basmati rice increased to $1,044 per tonne this fiscal from $868 per tonne a year ago.

Win-win for all

Prices did not increase from the average received ($1,057) in April-September, contrary to what was expected, an official said. Though traders and exporters paid record-high prices for basmati paddy this year anticipating a huge jump, it is a win-win for all stakeholders—farmers, exporters, and consumers—the official said.

Recalling the 2013-14 price spiral in basmati, an industry official said exports may not rise that high over the next two months as contracts are happening at an average of $1,100-1,200/tonne, though some are getting premiums and selling at $1,350 for limited quantities.

In 2013–14, India exported 3.76 mt of basmati worth $4.87 billion, a record high in value terms, realising an average of $1,295 per tonne. “That was an exceptional year as Iran had bought nearly 1.5 mt of basmati from India whereas the traditional top buyer Saudi Arabia imported around 0.8 mt,” said an industry veteran who has been tracking basmati prices for the last two decades.

“The problems in Pakistan is redefining the basmati market in addition to India’s demand and supply. We are in the twilight zone,” said foreign trade policy expert S Chandrasekaran, who is also the author of a book on Basmati GI.

Normally, prices drop on higher supplies, but in the case of basmati, paddy prices witnessed an increase in October as high as 19 per cent at ₹3,322/quintal in Haryana and then topped ₹4,000/quintal.

Hanoi, Feb 9 (Prensa Latina) The economic and political uncertainties being faced by the world have benefited Vietnam's rice prices, which have reached their highest level in the last two years, sources from the sector reported in this capital.

Anxiety has pushed many countries to increase imports to grow their rice reserves, with the consequent increase in its value in the international market, Do Ha Nam, Vice Chairman of the Vietnam Food Association (VFA), said.

According to the official, quoted by The Voice of Vietnam, until February 5, Vietnam’s rice price had risen by 15 dollars per ton since late January, when 5-percent broken rice was traded at 473 dollars per ton and 25-percent broken rice was sold at around 453 dollars per ton.

In mid-January, the VFA itself predicted that domestic rice exporters would have a clear advantage this year, thanks to high prices and the enormous demand for rice worldwide.

Many companies have already received orders until April or even the third quarter of this year, Ha Nam informed at the time, noting that thanks to high-quality jasmine rice, the country has seen rapid growth in demanding markets such as the United States and the European Union.

Techniques that use less water, produce more rice and emit less methane are gaining traction in China

In a mountain village in south-west China, the local people are playing a guessing game. A new climate-friendly way of growing rice is being trialled here that will reduce methane emissions. So, what’s the difference in yield between it and the conventional method?

Shortly after the guesses are in, the findings are revealed: the new approach can increase yields by about 20%.

Although it seems far removed, the rice cultivation in this village is connected to a joint statement made by China and the US at the COP26 UN climate conference in 2021. In it, China said that by COP27, which was held in November 2022, it would produce a “comprehensive and ambitious national action plan on methane”, to achieve significant results in controlling and reducing emissions by 2030.

The full text of that plan is not yet available. But during COP27, China’s climate envoy Xie Zhenhua said the text has been written, and that it focusses on three areas: energy and natural gas; agriculture; and waste handling.

Reducing methane emissions is an urgent problem and is viewed as essential to keeping the global average temperature increase below 1.5C. Methane has 86 times more warming potential than carbon dioxide over a 20-year timescale, according to the IPCC (Intergovernmental Panel on Climate Change). While the International Energy Agency has said methane accounts for 30% of global warming since the industrial revolution.

Methane remains in the atmosphere for about a decade, so rapid emission cuts could quickly reduce its contribution to global warming, winning some valuable time to avoid disastrous warming. This is the goal of the Global Methane Pledge, an initiative to voluntarily reduce global methane emissions at least 30% from 2020 levels by 2030, which is currently endorsed by 150 countries. China has not joined the initiative, but as the world’s biggest emitter of methane – accounting for 14.3% of global emissions – its actions, together with other major emitters, will be crucial.

In China, unlike other industrialised countries, paddy field rice farming is a significant source of the gas, accounting for 16% of human-caused methane.

Last year, the government published policy guidance on cutting methane from rice farming, while new planting methods and technologies are being tested in the field. However, as we shall see, the small profits available from small-scale rice farming in the south of China pose problems for promoting climate-friendly techniques.

Meanwhile, the centre of rice farming has been shifting northwards, where less water-intensive techniques are producing less methane. In parts of China’s vast expanses of paddy fields, methane emissions are quietly falling.

Why does paddy farming produce methane?

The microorganisms that produce methane are some of the most ancient forms of life. Known as “methanogens” they are widely found in oxygen-poor environments such as lakebed silt, animal intestines and flooded paddy fields.

Rice can grow in dry ground, but farmers found when domesticating the plant that it also grows well in flooded fields, while the weeds it competes with do not. Paddy field farming therefore developed and has remained largely unchanged for millennia.

The water in paddy fields acts as a barrier between the air and soil, creating the ideal oxygen-poor environment for methanogens, while organic matter excreted by the rice’s root systems provide nutrition. Those ancient organisms thrive in the water-logged soil, emitting methane as they do so.

China is the world’s largest rice producer, utilising 30 million hectares of land for rice farming in 2021, and producing a harvest of 210 million tonnes, according to the National Bureau of Statistics. Rice is the staple food for 65% of China’s population. The country has 20% of the world’s paddy fields and produces 29% of the rice, according to a paper published in 2018 in the Chinese Journal of Eco-Agriculture.

But those paddy fields are Chinese agriculture’s biggest source of methane emissions. According to the government’s Second Biennial Update Report on Climate Change (2018), China emitted 55.3 million tonnes of methane in 2014, with 22.2 million tonnes of that coming from agriculture. Paddy field rice farming accounted for 8.9 million tonnes, or 40% of all agricultural emissions. Research has found that paddy fields in China produce 29% of global paddy field methane emissions.

Cutting methane emissions from rice farming

In June 2022, the Ministry of Agriculture and Rural Affairs, and the National Development and Reform Commission, published plans for emissions reduction and carbon sequestration in rural areas and the agricultural sector. Paddy field methane reduction was listed as the first of ten priorities in that document, with plans to “promote water-saving rice irrigation where suitable, improve efficiency of water use, and reduce production of methane.”

The best-established method of cutting methane from rice farming is to shift away from traditional flooded-field methods. As the organisms that produce methane can only survive in oxygen-poor environments, letting the soil dry out regularly – exposing it to the air – reduces emissions.

The System of Rice Intensification, which originated in Madagascar in 1981, does this through the use of shallow and intermittent irrigation or alternate wetting and drying. Research has found these techniques can reduce methane emissions from rice growing by 22–64%.

SRI is widely used across Asia, Africa and Latin America. Alongside the environmental benefits, it increases yields and so farmers’ incomes.

But one team working on paddy field methane emissions says SRI isn’t practical for local farmers in China’s south-west. A team member, who preferred to remain anonymous, told China Dialogue: “We haven’t promoted the method as we found the farmers very confused about when they should and shouldn’t flood the fields. In the mountains of the south-west, paddy fields are left flooded year-round, and always have been. This means the fields continue to emit methane over the winter, even though nothing is growing.”

They explained that as the different farmers’ paddy fields are all connected, one farmer adding or removing water affects others, making things more complex.

To accommodate these millennia old practices, the research team has opted for another approach known as furrow flooding. This involves piling up earth into ridges and planting crops on top of them. The furrows between the ridges are then flooded.

”Furrow flooding” can save a lot of water compared to fully flooding fields. In this photograph, it is being employed in San Juan, Argentina (Image: Eduardo Pucheta / Alamy)

“There are clear advantages to furrow flooding,” said the researcher. “The Institute of Soil Science at the Chinese Academy of Sciences found reductions of 60–80% in methane emissions. Managing water levels is easier, as water can be left in the furrows year-round. This saves the farmers a lot of work.”

Elsewhere, other approaches are being tried. In the township of Xitang in Jiashang county, Zhejiang, the China National Rice Research Institute and Alibaba Cloud have built a “smart” farming system as part of a 400 mu (27 hectare) low-carbon farming project.

According to the National Business Daily, the project uses Alibaba’s cloud computing tech and the Internet of Things to connect monitoring instruments with irrigation equipment and automated machinery, allowing more efficient, targeted management. For example, water level sensors are linked to valves that add or remove water from the field as necessary.

Calculations by the institute say the smarter techniques cut water use by 30–50% and methane emissions by 30% or more.

Challenges in popularising the new techniques

Rice farming in the south has been gradually shrinking as people move to the cities. In Hunan, for example, production was 27.6 million tonnes in 2015 and 26.8 million tonnes by 2021. China’s rice production has not been falling overall, however. Production has been shifting to the north. In Heilongjiang, 27.2 million tonnes were produced in 2015, and 29.1 million tonnes in 2021, according to the National Bureau of Statistics.

China has seen 40 years of rapid economic growth, creating many jobs and attracting hundreds of millions of people from the countryside to the cities. In the densely populated south, the remaining farmers tend to work only small patches of land. This makes it harder to achieve economies of scale. It is generally possible to make much more money in the cities. Fewer people are willing stay home and grow rice.

I’ve realised the biggest problem is that the villages are empty and nobody is planting rice

That presents another problem for the team trying to encourage furrow flooding in the south: “When we go into villages to try and talk about rice farming techniques, nobody is interested. A major problem for us is that resistance is in fact a resistance to the idea of rice farming.”

Although furrow flooding can reduce methane and increase yields, the changes aren’t big enough to tempt anyone to quit the factory job and come home to change existing techniques.

“Since joining the team, I’ve realised the biggest problem is that the villages are empty and nobody is planting rice,” said the researcher, who did not wish to be named. “Paddy field rice farming is very tough work and you don’t earn much. Two crops a year on a mu of land earn about 600 yuan (US$89). Why would you do that instead of working in a factory? Our method offers more stable, or even better, harvests. But the difference between 600 and 800 yuan isn’t significant. In some places in Hunan, they’re offering 600 yuan subsidies per mu of rice farming, doubling income, and still nobody is interested. Guangdong’s so close, who wouldn’t choose to work there?”

The team has found that to promote low-methane techniques should involve more than talking to villagers about how to grow rice. How to improve overall economic returns from farmland is the key. They’re investigating involving other more profitable crops too.

“We’re looking at using no-till cover techniques and planting other crops after harvesting [the rice] to add nitrogen and organic matter to the soil. That will increase soil fertility and reduce the need for fertiliser the following year, improving the harvest and reducing costs. We’re looking at a few ways of doing this, including no-till cover planting of broad beans, to see which is most profitable,” the team member said.

Potential for emissions cuts at scale

While rice farming in the south might be shrinking, things are different in the north-east, where there is more arable land per person and higher levels of mechanisation in agriculture. The province of Heilongjiang in particular, with its expanses of dark fertile soil, is becoming a new centre of rice production. Figures from the National Bureau of Statistics show the province grew more rice than any other in 2021 – 2.3 million tonnes more than second-place Hunan.

Rice growing in coastal provinces in the southeast like Guangdong, Fujian and Zhejiang has been shrinking since the early 1980s, according to a paper by Liu Guozhen, Li Zhengguo and others from the Chinese Academy of Agricultural Sciences’ Institute of Agricultural Resources and Regional Planning. Growth, meanwhile, has been mainly in Jilin and Heilongjiang in the north-east.

That shift north has meant changes in techniques. According to news agency Xinhua, Heilongjiang has been researching water-saving methods of rice growing since 2004, with water use reduced by 30–40% and yields up 5–10%. In 2012, that “dry-cultivation” method was used across 4 million mu. That expanded to 30 million mu in 2018, a sevenfold increase over eight years and more than half the area of flooded-field rice growing in the province.

A rice-growing demonstration park in Heilongjiang, north-east China, employing a method to save water and emissions (Image: Zhang Tao / Alamy)

The expansion was due to a combination of government support and significant cost reductions with the new method. One rice farmer, who has 400 mu of land in the Heilongjiang city of Hulin, said in an interview with ChinaNews.com that he had seen costs per mu fall by over 200 yuan, as well as savings on time, labour and water.

The changes rolled out in Heilongjiang have also reduced methane emissions. Research has found the dry-cultivation technique cuts production of methane by over 30%.

But while rice production has been shifting north, paddy fields in the south still produce most of China’s rice. According to the National Bureau of Statistics, only two northern provinces made it into the top ten rice growers for 2021. The other eight were all in the south and they grew 138 million tonnes of rice, about 65% of the total.https://flo.uri.sh/visualisation/12677250/embed

As all provinces have been told by the central government to maintain certain levels of arable land and grain production, there is little chance of a wholesale shift of rice growing to the north in this coming decade – a decade which is crucial for tackling climate change. There is still a lot of scope for climate-friendly techniques to be applied in the paddy fields of the south.

Some experts argue that increased “land transfers” – meaning long-term leases – could help reduce methane emissions from rice cultivation, while warning that smallholders’ land contract rights must be maintained to protect equity. If such transfers were made easier, then an increase in income of only 200 yuan per mu from dry-cultivation would be significant. On a 400 mu farm like that in Hulin, it would be 80,000 yuan per harvest, potentially more with government subsidies. This could increase the likelihood of people leaving factory jobs to implement the new techniques.

There is a parallel to be drawn with fertiliser reduction. In China, larger farms use less fertiliser per unit area, according to a joint study by China Agricultural, Zhejiang and Virginia universities.

The researchers found smallholder farms (less than 0.5 hectares on average) use machinery less and physical labour more, which hampers precise and science-based use of fertilisers. And as smallholder farmers can make more money working in the cities, they are less reliant on their farming income than larger professional farmers (with 30 hectare or more, on average). This makes the latter group more sensitive to changes in fertiliser costs and keener to reduce usage. But 98% of China’s cropland is farmed by smallholders. This led the researchers to recommend policymakers look at systems to facilitate “land transfers” and not just fertiliser application technology.

Chen Mei’an, programme director with the consultancy Innovative Green Development Program (iGDP), studies climate change issues in China. She told China Dialogue: “Farm size is a very important factor. China has smallholder agriculture, but applying better emissions tech costs money, whether it’s in fertiliser use or methane reduction, and that discourages smaller scale farmers. When you have larger farms, you get economies of scale and the costs are spread more thinly. Land transfers and leases would help achieve that.”

‘Abeyance’. Bangladesh scraps parboiled rice G2G import deals with Indian co-op agencies

With the deal not going through, domestic parboiled prices drop 10%

Bangladesh has cancelled its orders to import two lakh tonnes of parboiled rice from two Indian cooperative agencies through government-to-government (G2G) deals after having kept them in “abeyance” for a few weeks.

Trade sources said Bangladesh, which began dragging its feet after getting a couple of offers offering the rice at lower prices, has returned the “bid bonds” submitted by the two cooperative agencies during negotiations.

The return of the “bid bonds” is a confirmation of Dhaka cancelling its plans to import the rice as part of its efforts to buy five lakh tonnes for its public distribution system.

According to media reports in Bangladesh, the Sheikh Hasina Wajed government decided to “suspend the process of buying over-priced rice” from the two agencies — NCCF (National Cooperative Consumers Federation of India Ltd) and Kendriya Bhandar — last weekend.

Impact on India

The impact of the deal is being felt in the Indian domestic market with prices of parboiled rice dropping at least 10 per cent after having increased 30 per cent in January to ₹29,000 a tonne. Prices had surged on expectations of the G2G rice deals with Bangladesh going through.

“Even as we were loading parboiled consignments for African destinations, millers called us offering more rice at lower prices,” said VR Vidya Sagar, Director, Bulk Logix.

Dhaka’s plans to enter into G2G deals to import parboiled rice ran into rough weather after it face criticism of paying a higher price than what some private Indian exporters had quoted in a global tender to import 50,000 tonnes of parboiled rice.

The Wajed government was also facing problems concerning foreign exchange, which added further pressure on going ahead with the deal.

Global import tenders

In December, NCCF and Kendriya Bhandar offered to supply the two lakh tonnes under G2G deals at $433.60 and $433.50 a tonne, respectively.

Accepting the offer, Bangladesh’s Food Ministry issued letters of intent for the purchases of one lakh tonnes each from the two cooperatives before putting them on hold its decision.

At that time, the offers made by the two cooperatives were $35/tonne higher than what private traders offered in two global import tenders.

In a tender opened on December 21, India’s Bagadiya Brothers was the lowest bidder offering the foodgrain at $393.90/tonne. In the next tender opened on December 27, Singapore’s AgroCorp International offered the most competitive rate of $397.03.

Playing hide & seek

Official sources said they had charged more for the supplies since Bangladesh asked for the new crop besides wanting the consignments to be delivered in two months. Still, a couple of offers were made from the Indian side lowering the price by a few dollars.

“Had it given more time and opted for an older crop, it could have got the rice at a cheaper rate,” an official said on condition of anonymity.

Trade sources said some of the Indian exporters who took part in Bangladesh’s global import tenders had quoted higher prices when the cooperative agencies approached them for the G2G deals.

“Practically, they played hide and seek with us by cutting prices for the Bangladesh tender and raising it when the agencies sought rice for the G2G deals,” said a trader, who did not wish to be identified.

Dhaka, the loser?

After receiving the LOI, the Indian cooperatives were to furnish bank guarantees. But they got delayed by six days and Bangladesh utilised the opportunity to drag its feet before finally calling them off.

A trader said: “If it wanted, Bangladesh could have accepted the guarantee.” This was because Bangladesh Food Ministry and its Cabinet Committee had cleared the G2G deals.

Traders said Bangladesh would be the loser in deciding to not sign the deals as rice prices have increased by at least 10 per cent since the start of the year.

According to Thai Rice Exporters Association data, Thailand, India’s main competitor in the global market for parboiled rice, is offering the cereal at $517/tonne and Pakistan, which is facing short supplies, is offering it at $496-500.

India’s parboiled rice is quoted at $395-399.

“India’s offer is lower by at least $100 a tonne. Where can Bangladesh get rice at such a price? Even if it were to pay higher than the bids made in its global tender, it will still be over $60 a tonne lower than other origins,” said a trader.

Low output, stocks

According to the Food and Agriculture Organisation, rice prices zoomed to their highest since November 2011 in January, though they have declined a tad recently.

In India, the top global exporter, rice prices have increased with the Ministry of Agriculture estimating the Kharif crop this crop year to June lower at 104.99 million tonnes against 111.76 mt last year.

The procurement of rice by the Food Corporation of India has been tardy. Rice stocks in the central pool have dropped by 43 per cent compared with the year-ago period to an 8-year-low of 12.54 mt.

However, unmilled paddy stocks are higher than last year at 47.62 mt (31.91 mt rice).

BD's private sector imports halted in recent weeks

The world rice prices hit a 12-year high in January 2023, raising further concern for the importing countries, according to a latest report of the Food and Agriculture Organisation of the UN (FAO).

Bangladesh's private sector imports have also almost stopped notably in recent weeks, indicating a gloomy prospect for the domestic rice market in coming months following the persisting volatile situation in the global commodity market, said market experts.

FAO All Rice Price Index increased to 126.4 points in January which is 6.2 per cent higher than that of December 2022 and a 12-year high, according to the FAO monthly report on the food grain, published on Friday.

The prices of Indica species, consumed mostly by South Asians, witnessed the highest surge as its index reached 127 points in January, uppermost level since 2011, said the FAO report.

Price of exportable parboiled rice of India reached $388-$ 419 a tonne while Pakistani and Vietnamese rice traded at $430 to $ 466 a tonne.

Thai parboiled rice, suitable for the South Asians, was traded at $ 473 to $ 523 a tonne in January. (FAO report documents FOB prices, freight charges are excluded here).

Gradual appreciation of Asian currencies against US dollar, rising demands in Indonesia, lesser exports by Pakistan amid a flood-induced low output, the lunar year celebration across the far-east Asia and a record pace of government domestic procurement by India despite a decline in output were some major reasons behind such tectonic hike in rice prices, said the FAO report.

Meanwhile, import by Bangladeshi traders almost stopped in recent weeks amid the rocketing global prices as well as obstacle to sourcing US dollar for opening L/Cs, Shamsul Hoque, a Rangpur-based importer, said.

He said cost for imported Indian coarse rice would be minimum Tk 57 a kg now considering the minimum price of $390 a tonne, duties of 15.2 per cent and freight charges.

Most of the importers are trying to bring medium varieties of rice like Ratna, BRRI dhan 28, Swarna-5 and finer quality like Nazersail, Miniket from West Bengal, Hariana and Punjab in India to make some profits.

A food ministry official told the FE that private sector has been permitted to bring 1.45 million tonnes of rice from the foreign sources this financial year but they could bring only 0.409 million tonnes so far.

He said the government has brought above 0.45 million tonnes of rice so far this FY while another 0.5 million tonnes would be imported (by the government).

He said the public warehouses have now a handsome amount of 1.95 million tonnes of food grains of which rice is 1.6 million tonnes; Aman rice procurement is also going on.

There will be no shortage of rice until the next Boro harvest, he added.

Economist and value chain expert Prof Dr Md Moniruzzaman said though coarse rice prices showed a slight decline in recent weeks, medium and finer rice prices have surged even during the Aman harvesting season.

There is no sign of relief as production cost in the ongoing Boro season has also been rising to a record high this year.

Rising import costs will be a matter of concern from the later days of March when the stock of Aman crop would start to decrease, he continued.

The government would have the preparation for those off-peak months, he said.

According to the Trading Corporation of Bangladesh (TCB) and the city groceries, coarse rice prices are static at Tk48-52 a kg but medium and finer varieties of rice witnessed a further Tk2.0-3.0 hike per kg in a month in Dhaka city as those were retailing at Tk62-68 and Tk 75-98 a kg respectively.

The current prices are 6.0-12 per cent higher than that a year ago.

tonmoy.wardad@gmail.com

Rice farming produces 1.5% of the Earth’s greenhouse gas emissions, according to the World Wildlife Fund, but Kellogg sees a path toward diminishing the crop’s negative impact by working directly with farmers.

The cereal giant said its InGrained rice partnership with farmers in the Lower Mississippi River Basin region — which aims to grow the crop with reduced methane emissions — yielded positive early results after the pilot year of the program.

Kellogg invested $2 million in implementing irrigation practices over the past year. The company said that during a five-year period, it is paying producers $20 per ton of greenhouse gas they abate through introducing climate-friendly practices to their farming operations.

Over the first year, Kellogg said, these practices garnered a reduction of over 1,600 metric tons of greenhouse gases, equal to removing 345 gasoline-fueled cars from the road.

Janelle Meyers, chief sustainability officer at Kellogg, told Food Dive working with farmers on establishing the new agricultural practices has led to success with the project thus far. The farmers, she said, shared with Kellogg that the quality of their rice was not impacted by the new methods.

“What we’re trying to understand is, what are the practices that can deliver greenhouse gas reduction or water conservation as a collective between those different partners?” Meyers said. “Practices were identified based off of both technical recommendations and the suggestions from the different suppliers and growers as well.”

One practice, she said, is alternate wet and dry irrigation, in which rice fields are not kept continuously irrigated but are allowed to dry at specific intervals during the rice growing stage, according to research published by the Journal of Agricultural Science, which has been shown to mitigate emissions.

Kellogg sources rice, a key ingredient for its Rice Krispies and Rice Krispies Treats brands, from growers in Northeast Louisiana. The company collaborated with emissions tracking group Regrow Ag for its calculation.

The cereal giant believes the rice endeavor, which is part of Kellogg’s Origins sustainability program, will further its 2030 sustainability goals. These include lowering its Scope 3 emissions — which derive from food commodity production and transportation — by 15%, and engaging over one million growers in its environmental projects by 2030. As of 2021, the company had invested in 445,000 farmers.

Meyers said the company has a particular interest in investing in women-owned farmers. A 2019 study from AgFunder reports that only 3% of agri-food tech investment dollars go to women.

Kellogg identified 15 priority ingredients that need particular environmental, social or animal welfare needs, which it is rolling out and planning sustainabile agriculture projects for, Meyers said. “We’re working on corn in Mexico, wheat in Australia, potatoes in Europe, and there’s multiple others.” 

Rice production results in emissions of several greenhouse gases, including methane, which is more than 25 times as potent as carbon dioxide at trapping heat in the atmosphere according to the Environmental Protection Agency.

The Environmental Defense Fund reports that global production of the crop is doing as much harm to the environment as 1,200 coal power stations.

Rice production in the U.S. declined in 2022 because of persistent rainfall last spring that prevented the crop from being planted in parts of the South, according to USDA data. Yields for the 2022-2023 are projected to be lower in all growing states, the government department said, because of droughts in the Southwest region.

With its rice project, Kellogg aims to apply some of the principles it learns to other regions, but Meyers noted that strategies will differ based on the location and climate of the project.

“We take those learnings and try to apply them as we try to build out similar commodity projects in different regions,” she said.

U.S. rice exports are expected to total around 3 million metric tons in the 2022-23 marketing year.

Al Awees, the private company that took over much of the food purchasing for the government of Iraq in 2021, made two purchases of 44,000 metric tons each of U.S. rice as the 2022 calendar year ended.

The total of 88,000 metric tons may not seem like much given that U.S. rice exports are expected to total around 3 million metric tons in the 2022-23 marketing year, but the symbolism may be more important than the actual amount.

Questions had been raised about whether Al Awees would honor the 2022-23 Memorandum of Understanding signed by the governments of the United States and Iraq that calls for Iraq to purchase 200,000 metric tons of U.S. rice. Al Awees’ initial rice purchases in the summer of 2021were from Uruguay.

Rice trade

Iraq was once a major market for U.S. rice, but the rice trade between the two countries has been limited to nonexistent over the last three decades. Iraq imports nearly 90% of the rice it needs, and its purchases have been increasing.

“Iraq’s rice imports averaged 1.1 million to 1.2 million tons a few years ago but have now surged to nearly 2 million tons,” said Sarah Moran, vice president, international, who manages the USA Rice Federation’s international marketing programs.

Moran said rice production in Iraq has increased from 120,000 tons to 250,000 in the past year, but domestic consumption of rice has risen from 1.3 million metric tons to 1.7 million metric tons in 2022.

“Iraq operates a public distribution system where the government provides certain essential food products, such as rice, oil, wheat flour, sugar, and milk,” she said. “Nearly 90% of Iraqi households receive ration cards for subsidized food commodities. The amount of rice in these ration cards has increased from 12 kilograms per person (26 pounds) to 33 kilograms per person in 2022.”

India and Thailand

A chart displayed by Moran showed India and Thailand have accounted for the bulk of Iraq’s rice imports in 2020, 2021 and 2022. Prices of rice in those two countries are typically $200 per ton below U.S. prices due, in part, to government subsidies for rice farmers in India and Thailand.

The price disparity has played a role in the reduced outlook for U.S. exports worldwide. In January, USDA’s Economic Research Service lowered its forecast for U.S. 2022-23 all-rice exports to 66 million hundredweight or about 3 million metric tons, the lowest since the 1985-86 marketing year. “The downward revision was largely based on sales and shipments through late November, expectations regarding shipments for the remainder of the market year, and uncompetitive prices,” said Nathan Childs, coordinator of the USDA Economic Research Service’s Rice Outlook Report.

Export forecast

In it, the U.S. rough-rice export forecast was again lowered 2.0 million cwt and is now projected at 23.0 million cwt., or about 1 million metric tons. Rough-rice imports are projected to be almost 19% below a year earlier and are the lowest since 2000/01.

“Long-grain shipments to Latin America are expected to again account for the bulk of these exports,” Childs said. “However, the United States is facing increasing competition from South American suppliers in the region, especially in Mexico, the top U.S. rough-rice export market, as well as in several Central American markets.

U.S. 2022-23 milled-rice exports remain forecast at 46.0 million hundredweight, nearly 15% below a year earlier and the smallest since 1965/66. United States sales through late November to both Haiti—the largest market for U.S. long-grain milled rice—and Japan—the largest market for U.S. medium- and short-grain milled rice—were well below a year earlier.

U.S. rice shipments to Mexico have been declining by about 100,000 metric tons per year over the last two-and-a-half years, according to Dwight Roberts, senior advisor to the U.S. Rice Producers Association.

“In 2021, the U.S. exported 765,000 metric tons of rice to Mexico; in 2022, it was 625,000 metric tons; and as of September, it was 373,000 metric tons,” he said. “Mexico now accounts for 60 % of Brazil’s paddy exports, a statistic that was unfathomable only a few years ago.” (Brazil could ship 900,000 metric tons of rice to Mexico this year, he notes.)

Numbers like these make the Iraqi agreement to buy 200,000 metric tons and any other sales U.S. shippers can make more important than ever.

HANOI: Vietnam’s rice export is forecast to continue reaping successes this year as the world’s rice prices remain high at least in the short term as global economic and political uncertainties have resulted in high demand for rice reserves, according to experts.

According to the Vietnam Food Association, by the middle of last month, Vietnam earned nearly US$115 million from exporting more than 226,000 tonnes of rice, an increase of over 41 per cent in terms of both volume and value compared to the same period last year, reported VNA (Vietnam News Agency).

The country exported ST24 and ST25 rice to the Middle East region with a record-high price of US$1,000 per tonne, doubling the price of normal white rice.

Vietnamese rice further penetrated demanding markets like Japan and the EU.

According to experts, more than 80 per cent of rice varieties in Vietnam are fragrant high-quality rice, which is an important factor that helps increase Vietnamese rice’s value and accessibility to markets.

This year’s rice prices are forecast to return to their peak in 2019 thanks to periodical factors and increasing demand for rice reserves in countries, including such populous nations as China and India.

Moreover, Vietnamese rice exporters are taking advantage of free trade agreements.

Pham Thai Binh, General Director of Trung An Hi-tech Agriculture Joint Stocks Company, said that before the EU–Vietnam Free Trade Agreement (EVFTA) took effect, Vietnamese rice exported to the EU was taxed at high rates, from 5 per cent to 45 per cent, depending countries.

As the result, it was difficult for Vietnamese rice to compete with those from Cambodia and Myanmar as the EU has exempted import taxes for those countries.

Meanwhile, although Thailand’s rice is heavily taxed branding is strong and long-lasting, resulting in its high competitiveness, Binh said.

According to analysts from BIDV Securities Company (BSC), unfavourable weather conditions make major rice exporters like India and Pakistan reduce export volumes while major rice importers like China to increase imports.

Vietnam and Thailand are expected to hold negotiations to discuss rising rice prices in the context of increasing prices of input materials.

Last year, Vietnam exported nearly 7.2 tonnes of rice, gaining US$3.49 billion. -Bernama

MUMBAI/ HANOI/ BANGKOK/DHAKA: Rice export prices from India rose to their highest level since April 2021 this week, aided by firm demand and tight supplies, while elevated rates in Thailand kept buyers at bay. Top exporter India’s 5% broken parboiled variety was quoted at $393 to $398 per tonne this week, up from last week range of $387-$395.

“Government has made record purchases of unmilled rice from farmers this year. Limited amounts of supplies are available to private players for the exports,” a New-Delhi-based dealer with a global trade house said.

India’s rice exports in 2022 jumped to a record high despite the government’s curbs on overseas sale, as buyers continued to make purchases because of competitive prices, according to government and industry officials.

Thailand’s 5% broken rice prices eased slightly to $495 per tonnes, from $500 per tonne. Traders attributed the small price drop to a slow down in demand but blamed the lack of supply and the strength of the local currency for keeping prices high which they say deter buyers.

A Bangkok-based trader said prices could change once new supplies enter the market at the beginning of March. High cost of freighter also contributed to muted supply and the rise in rice prices, another trader said. In Vietnam, 5% broken rice were offered at $445-$450 per tonne, free on board, unchanged from two weeks ago.

“Traders are resuming their rice purchases from farmers to prepare for new contracts, following the holiday,” a Ho Chi Minh City-based trader said. Vietnam exported 400,000 tonnes of rice in January, down 20.9% from a year earlier, government data released on Sunday showed.

Bangladesh’s rice production in the marketing year to April has been revised upward to 35.8 million tonnes, the US Department of Agriculture said in its latest update.

As per traders, basmati rates have reached an all-time high of ₹120 to ₹170 per kg (depending upon the quality and variety) from ₹90 to ₹140 three months ago, due to increasing exports amid falling production. The rates of parmal (non-basmati) rice have also witnessed an increase, going from ₹30 to ₹40 per kg three months ago to above ₹45 per kg now.

As per traders, basmati rates have reached an all-time high of ₹120 to ₹170 per kg (depending upon the quality and variety) from ₹90 to ₹140 three months ago, due to increasing exports amid falling production.

The rates of parmal (non-basmati) rice have also witnessed an increase, going from ₹30 to ₹40 per kg three months ago to above ₹45 per kg now.

The rate of wheat flour is hovering between ₹38 and ₹40 per kg as compared to ₹30 earlier.

Wheat grain is also fetching a whopping ₹2,800 per quintal, against the minimum support price (MSP) of ₹2,125, in the domestic market despite a ban on exports. The government had banned wheat exports in May last year in view of a dip in production. While in 2020-21, the country had produced 109.59 million tonnes of wheat, in the subsequent year (2021-22), it had produced 106.84 million tonnes.

Bunty Garg, a rice-trader from Taraori of Karnal, said, “The prices of basmati and non-basmati rice are rising with every passing month. Even the rates of common basmati rice have shot up to ₹110 per kg from ₹85 two months ago.”

Rice exporters from Karnal say the global surge in demand for basmati is driving the surge in domestic rates.

Former vice-president of All-India Rice Exporters’ Association Vijay Setia said, “With around 13% increase in basmati exports and more than 5% increase in non-basmati rice exports in the international market, the prices of both varieties have witnessed a surge in the domestic market. Though basmati consumers are not affected much, the increase in prices of non-basmati which is called common man’s rice is worrisome.”

India’s exports see a rise

The latest comparative statement of Agricultural and Processed Food Products Export Development Authority (APEDA) reveals that India’s cereal export between April and November 2022 reached ₹72,626 crore as compared to ₹57,658 crore for the corresponding period in 2021.

The figures revealed that 27.32 lakh tonne of basmati was shipped between April and November against 23.97 lakh tonne in the corresponding period last year and the price of Basmati touched 1,051 USD ( ₹85,971) per tonne in November 2022 against 860 USD ( ₹70,348) per tonne in November in the last financial year.

The government had even imposed 20% duty on rice exports during this period but the basmati export increased.

Wheat export reached to ₹11,727 crore from ₹8,658 crore. Despite poor production last rabi harvesting season, India had exported 4.92 lakh MT wheat more than the previous year as the figures reveal that India’s wheat export from April to November this year was 46.56 lakh MT against 41.64 lakh MT of the last year.

The biggest reason behind the surge in the wheat export is surge in the prices in the international market -- it increased to 324 USD ( ₹26,503) in November this year from 280 USD ( ₹22,904) last year. “We are selling wheat flour at ₹35 per kg and maize flour at ₹40 a kg. This is the highest ever it has gone in recent memory and there is a strong possibility that the prices will increase further,” said Pawan Kumar, a trader of Ladwa of Kurukshetra.

Agriculture economist and food expert Devinder Sharma said increased export is leading to increase in prices of wheat flour and rice. “Though basmati consumers can afford this increase in prices, the main concern is the increase in prices of parmal rice which is consumed by the common man. As of now, the government has enough stock of rice. But the increase in wheat flour rates is worrisome. Even the Food Corporation of India has offered to sell wheat in open market to bring down the prices but there is need of more steps deal with the problem and protect the consumers.”

India’s rice exports in 2022 jumped to a record high despite the government’s curbs on overseas sale, as buyers continued to make purchases from the South Asian country because of competitive prices, according to government and industry officials.

The record exports allowed Asian and African countries to import the staple at a time when supplies of wheat and other grains were hit by drought and Russia’s invasion of Ukraine.

India, the world’s biggest rice exporter, in September banned exports of broken rice and slapped a 20% export tax on some non-basmati varieties as erratic monsoon cut production.

India’s rice exports in 2022 rose 3.5% from a year ago to 22.26 million tonnes, or more than the combined exports of the next four largest exporters Thailand, Vietnam, Pakistan and United States, a top government official told Reuters.

He declined to be named as he was not authorized to speak with media.

“Exports fell after government imposed the export duty, but very soon exports revived. In December, India managed to export more than 2 million tonnes,” the official said on Tuesday.

In 2022, non-basmati rice shipments stood at 17.86 million tonnes, while premium basmati rice exports were 4.4 million tonnes, the official added.

India exports non-basmati rice mainly to Africa and Asia, while basmati rice goes to the Middle East, the United States and Britain.

An export duty on Indian non-basmati rice shipments spiked prices but buyers soon returned, as Thailand and Vietnam were offering rice at an even higher price, said Nitin Gupta, vice president of Olam India’s rice business.

Indian rice is the cheapest and that’s why exports would remain strong in 2023, he said.

India has been offering 25% broken white rice at around $430 per tonne, while Vietnam was offering the same grade at around $440 and Thailand at around $500, a dealer said.

Despite higher exports, India has ample domestic stocks, said B.V. Krishna Rao, president, Rice Exporters Association of India.
Source: Reuters (Reporting by Rajendra Jadhav; Editing by Rashmi Aich)

A Battle Creek-based breakfast food and snack maker recently shared an update on a new rice farming initiative.

Kellogg Company last week reported early positive results from the pilot year of its InGrained program, a five-year partnership with Lower Mississippi River Basin rice farmers to help reduce their climate impact.

According to Kellogg, the InGrained program in 2022 helped farmers implement climate-smart irrigation practices, which achieved a reduction of more than 1,600 metric tons of greenhouse gases — the equivalent of taking more than 345 gasoline-powered cars off the road for one year.

“Kellogg has established itself as a committed partner to farmers in implementing climate-positive agricultural practices in important crops like rice,” said Steve Cahillane, chair and CEO of Kellogg Company.

Kellogg piloted the program in northeast Louisiana, where much of the rice is used in foods such as Kellogg’s Rice Krispies cereal and Kellogg’s Rice Krispies treats.

The company worked in collaboration with agricultural greenhouse gas measurement firm Regrow, rice producers, Kellogg supplier Kennedy Rice Mill and agribusiness firm Syngenta.

“Not only are we helping farmers implement new practices on their farms, but farmers are telling us that, just as importantly, the quality of their rice was not affected by the adjusted irrigation practices,” said Stacey Shaw, senior sustainability lead at Syngenta.

Rice production emits several greenhouse gases, most significantly methane. According to World Resources Institute, methane contributes approximately to 1.5% of total greenhouse gas emissions. The U.S. Environmental Protection Agency cites methane as 25 times more potent than carbon monoxide.

Going forward, Kellogg and its InGrained partners plan to make adjustments as they transition into the second year of the program while ensuring financial and technical support continue to help farmers with these new practices.

Kellogg also said it will explore the possibility of expanding the program to include various regions with different weather patterns and soil types to determine if similar positive impacts are found.

Traders say the ministry’s decision would give a signal to the market for improving supplies and curb spike in price.

Following the government decision to sell 3 million tonne (MT) of wheat in the open market from the Food Corporation of India (FCI) stock commencing February 1, the food ministry has issued guidelines for initiating open market sale scheme (OMSS) of rice to states, private traders and entities engaged in ethanol production.

While the food ministry will soon decide on the quantity of rice to be sold in the open market from FCI stocks, the guidelines have fixed rice prices for various categories of purchasers which would be valid for the current year. 

Traders say the ministry’s decision would give a signal to the market for improving supplies and curb spike in price.

Retail inflation in rice rose by 10.49% in December 2022 while prices rose by 10.51% in the previous month. FCI had last sold 2.49 MT of rice in the open market in 2020-21.

In a communication to the FCI, the food ministry has fixed the price of rice to be allowed to be purchased by states, including fortified rice for distribution in their own schemes, at the rate of `3400/quintal.

The ministry has set the reserve price of rice to be supplied for ethanol production under biofuel policy at `2000/quintal, while a price of `2400/quintal for private purchase through e-auction has been fixed, according to the guidelines.

Private entities, with the exception of those engaged in ethanol production, would not be allowed purchase of rice in grain surplus states including Punjab, Haryana, Chhattisgarh, Odisha, Andhra Pradesh and Telangana during paddy procurement period. The OMSS sale of rice would be allowed in deficit procuring states such as Uttar Pradesh, Bihar and West Bengal.

The FCI has allocated 1.6 MT of rice from its stocks for ethanol production in the current year so far.

The biofuel policy allows production of ethanol from damaged food grains like wheat, broken rice etc. which are unfit for human consumption. It also allows conversion of surplus quantities of food grains to ethanol, after the approval of the national biofuel coordination committee.

The ministry has stated that in view of uncertainties of procurement and additional allocations of rice, the quantum of stocks to be offloaded, and timing, considering stock holding at the relevant point of time for all the schemes would be decided by it.

At present, FCI has 15.4 MT of rice along with 31.5 MT to be received from millers which was far more than the buffer requirement of 13.8 MT for January 1.

Meanwhile, close to four months since the commencement of paddy procurement by the FCI and state government agencies for the current kharif season (2022-23), the total purchase till Saturday was up by 2% on year at 64 MT.

 Higher grain procurement is expected to boost rice stocks held by FCI, which has been depleted by implementation of the free ration scheme that was implemented during April, 2020 – December, 2022.

FCI distributes around 40 MT of rice and 18 MT of wheat annually under the National Food Security Act where 5 kg of grain per month per head are distributed free of cost to 800 million beneficiaries.  

The US Department of Agriculture (USDA) has revised upward its forecast regarding Bangladesh's rice production in the marketing year (MY) 2022-23 beginning from last May.

Production of the staple grain is forecasted to be 3.58 crore tonnes in MY23, up from the USDA's official estimate of 3.56 crore tonnes, the agency said in its Grain and Feed Update on Bangladesh released by the end of last week.

The USDA said it increased Bangladesh's rice harvested area and production forecast because of good Aman season rice harvest during the marketing year that begins with Boro and ends with Aman rice.

The USDA said it hiked MY 2022-23 Aman season rice harvested area and production forecasts to 58.5 lakh hectares and 1.41 million tonnes respectively, which is higher than its estimates for MY 2021-22.

The USDA said it increased Bangladesh's rice harvested area and production forecast because of good Aman season rice harvest during the marketing year that begins with Boro and ends with Aman rice.

The USDA said it hiked MY 2022-23 Aman season rice harvested area and production forecasts to 58.5 lakh hectares and 1.41 million tonnes respectively, which is higher than its estimates for MY 2021-22.

The agency estimates 1.97 crore tonnes of rice was produced during the last Boro season in MY23, which is 2 per cent higher than the 1.93 crore tonnes produced previously.

However, cultivation of Aus season rice, which took place in March and April 2022 and was harvested in July and August, dropped 24 per cent from the previous year as severe floods affected the north and north-eastern parts of the country during planting.

Yet, overall production was equal to the 3.58 crore tonnes estimated by the USDA for MY22 thanks to higher yields of Boro and Aman.

And despite no change in overall production, prices of all types of rice prices remained high through the third and fourth quarters of 2022.

"Usually, rice prices decline at harvest; however, higher production costs, high milling and transportation costs, appreciation of the US dollar, and high inflation were the major factors contributing to the high rice prices this year," the USDA report said.

In December 2022, the average retail price of coarse rice reached Tk 50.55 per kilogramme, which was approximately 7 per cent higher than what it was during the same period the year before.

This season, farmers harvested Aman rice in November and December 2022. The average retail price of high-quality nonaromatic (fine) rice hit Tk 75 per kilogramme last December, up by approximately 3 per cent compared to the same period the year prior, it added.

While prices of wheat flour hit a record high in January 2023, the average retail price of unpacked coarse wheat flour, also called aata, hit a record of Tk 61.6 per kilogram, up approximately 70 per cent year-on-year, the USDA said.

At the same time, the average retail price of fine quality unpacked wheat flour, called maida in Bangladesh, reached Tk 72 per kilogramme, which was also a record high.

The USDA report said since the Russian invasion of Ukraine began in February 2022, all types of wheat flour prices have been rising due to supply chain disruptions and higher international prices.

India's wheat export ban on May 13, 2022, and the appreciation of the US dollar against Bangladesh's taka aggravated the situation further as most wheat is imported.

"Due to the high price of all types of wheat flour, demand has fallen significantly at the consumer level," the USDA said, citing industry contacts that high wheat flour prices would likely continue until the wheat harvest begins in Bangladesh in April 2023 and India allows exports again.

According to the Punjab Mandi Board, almost all the arrivals have been purchased by private players who are offering quite a high price for the crop this year.

According to the Punjab Mandi Board, almost all the arrivals have been purchased by private players who are offering quite a high price for the crop this year.

After the three-month harvest season ended in November, Punjab’s agricultural market popularly called ‘mandis’ witnessed an increase in the arrival of basmati (aromatic fine-quality rice). The market saw a jump of 56 per cent (22.12 lakh tonnes) till January 24 as compared to last season.

Moreover, the farmers are getting around Rs. 4,400 to Rs. 4,745 for one quintal of basmati this year, which is also quite high. Last year they were getting between Rs 3,000 to 4,000 per quintal rate.

Last financial year, 14.17 lakh tonnes of basmati arrived in the ‘mandis’ which was 7.95 lakh tonnes less than the total arrival this year. Over a half-a-dozen districts have procured more than 1 lakh tonnes to 5 lakh tonnes of basmati this financial year.

According to the Punjab Mandi Board, Amritsar district tops the list where around 5.55 lakh tonnes of basmati rice has been procured followed by Fazilka where 4.12 lakh tonnes arrived in the ‘mandis’.  Apart from this, Patiala recorded 1.98 lakh tonnes, Sir Muktsar Sahib 1.86 lakh tonnes, Tarn Taran 1.75 lakh tonnes, Sangrur 1.69 lakh tonnes, Faridkot 1.22 lakh tonnes and Gurdaspur around 1.22 lakh tonnes.

Firozpur’s basmati arrival was recorded as 88, 174 tonnes, followed by Mansa (61, 843 tonnes), Kapurthala (42,092 tonnes), Ludhiana (35, 323 tonnes), Moga (19,083 tonnes), Bathinda (16, 178 tonnes), Jalandhar (7,062 tonnes), Nawanshahr (3,888 tonnes), and Mohali (1, 275 tonnes).

Minor quantities of basmati also arrived from Hoshiarpur, Pathankot, and Fatehgarh Sahib where 343, 153, and 115 tonnes of basmati were recorded, respectively. According to the Punjab Mandi Board, almost all the arrivals have been purchased by private players who are offering quite a high price for the crop this year.

Like paddy crops, basmati is not procured by the government and mostly big exporters and traders purchase it. The rate is highly dependent on the demand of the private players. There is a big demand for Punjab basmati rice in foreign countries, particularly in West Asia.

Ten varieties of basmati, including six recommended by Punjab Agriculture University (PAU), Ludhiana, are grown in Punjab. The recommended variety of PUSA-1121 is cultivated in 43% of the total area this season, followed by Punjab Basmati 1718 and PUSA Basmati 1509.

The crop was cultivated in around 4.50 lakh hectares of the area in Punjab this year. If the basmati area can be expanded to 10 lakh hectares it will help the state achieve its long-desired objective of diversification and save a huge amount of groundwater being consumed by water-guzzling paddy crop (non-Basmati Parimal rice) every year even though Punjab should not grow paddy on more than 14-15 lakh hectares. Currently, the area of paddy farming has almost doubled the required limit.

According to the Punjab Mandi Board, almost all the arrivals have been purchased by private players who are offering quite a high price for the crop this year.

After the three-month harvest season ended in November, Punjab’s agricultural market popularly called ‘mandis’ witnessed an increase in the arrival of basmati (aromatic fine-quality rice). The market saw a jump of 56 per cent (22.12 lakh tonnes) till January 24 as compared to last season.

Moreover, the farmers are getting around Rs. 4,400 to Rs. 4,745 for one quintal of basmati this year, which is also quite high. Last year they were getting between Rs 3,000 to 4,000 per quintal rate.

Last financial year, 14.17 lakh tonnes of basmati arrived in the ‘mandis’ which was 7.95 lakh tonnes less than the total arrival this year. Over a half-a-dozen districts have procured more than 1 lakh tonnes to 5 lakh tonnes of basmati this financial year.

According to the Punjab Mandi Board, Amritsar district tops the list where around 5.55 lakh tonnes of basmati rice has been procured followed by Fazilka where 4.12 lakh tonnes arrived in the ‘mandis’.  Apart from this, Patiala recorded 1.98 lakh tonnes, Sir Muktsar Sahib 86 lakh tonnes, Tarn Taran 1.75 lakh tonnes, Sangrur 1.69 lakh tonnes, Faridkot 1.22 lakh tonnes and Gurdaspur around 1.22 lakh tonnes.

Firozpur’s basmati arrival was recorded as 88, 174 tonnes, followed by Mansa (61, 843 tonnes), Kapurthala (42,092 tonnes), Ludhiana (35, 323 tonnes), Moga (19,083 tonnes), Bathinda (16, 178 tonnes), Jalandhar (7,062 tonnes), Nawanshahr (3,888 tonnes), and Mohali (1, 275 tonnes).

Minor quantities of basmati also arrived from Hoshiarpur, Pathankot, and Fatehgarh Sahib where 343, 153, and 115 tonnes of basmati were recorded, respectively. According to the Punjab Mandi Board, almost all the arrivals have been purchased by private players who are offering quite a high price for the crop this year.

Like paddy crops, basmati is not procured by the government and mostly big exporters and traders purchase it. The rate is highly dependent on the demand of the private players. There is a big demand for Punjab basmati rice in foreign countries, particularly in West Asia.

Ten varieties of basmati, including six recommended by Punjab Agriculture University (PAU), Ludhiana, are grown in Punjab. The recommended variety of PUSA-1121 is cultivated in 43% of the total area this season, followed by Punjab Basmati 1718 and PUSA Basmati 1509.

The crop was cultivated in around 4.50 lakh hectares of the area in Punjab this year. If the basmati area can be expanded to 10 lakh hectares it will help the state achieve its long-desired objective of diversification and save a huge amount of groundwater being consumed by water-guzzling paddy crop (non-Basmati Parimal rice) every year even though Punjab should not grow paddy on more than 14-15 lakh hectares. Currently, the area of paddy farming has almost doubled the required limit.

Rice prices are climbing, a sign that the food inflation shock that threw millions into poverty is still reverberating, even as the cost of wheat and other farm commodities has declined.

Thai rice, a benchmark for Asia, has soared to the highest in almost two years. Strong demand lies at the heart of the rally, with some importers buying more of the grain to replace wheat after the war in Ukraine disrupted supplies. Some consumers have also been stocking up ahead of festivals, while a strengthening Thai currency has also helped to push up dollar-denominated prices.

Rice is a staple for half the world, and while wheat soared to a record in March last year, rice was relatively subdued for most of 2022, constraining food inflation in Asia. Costlier rice now will be unwelcome news for billions of people from China to India and Vietnam. The United Nations has flagged the rise in prices as a risk, saying it’s important to stay vigilant on food security.

Thailand, the second-biggest rice shipper, has seen strong demand from Iraq and Indonesia, said Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association. “Iraq has been diligently buying our rice every month,” he said. The Middle Eastern country was the single largest buyer last year.

But as Thai rice prices get more expensive, new orders have started to slow. Buyers in China and Malaysia are switching to cheaper options, and prices may start easing around March

when the new crop hits the market, Chookiat said.

Even then, the Thai price would be higher than a similar Vietnamese grade, he said. The Thai benchmark was last quoted at $523 a ton, the highest since March 2021. Vietnam prices were more than 10% cheaper at about $458-$462.

The association cut its forecast for Thailand’s rice exports this year to 7.5 million tons from 8 million, according to Chookiat. Shipments reached 7.7 million tons last year, the highest in four years, according to preliminary data.

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Exports dropped for a third straight month in December, falling by 14.6% year-on-year, leading to annual growth of 5.5% in 2022.

The Commerce Ministry reported yesterday the customs-cleared value of exports contracted 14.6% to US$21.7 billion last month, while imports decreased by 12% to $22.8 billion, resulting in a trade deficit of $03 billion.

Exports of agricultural and agro-industrial products declined for three consecutive months, contracting 11.2% year-on-year in December to $3.59 billion.

Products that registered a decrease included rice (-4.1%), cassava products (-12.4%), rubber (-47.7%), canned and processed fruits (-20.5%), and sugar (-45.4%).

Industrial product exports also dipped for a third consecutive month, falling by 15.7% from December last year to copy7.2 billion.

Products that decreased included automobiles, equipment and parts (-17.1%), oil-related products (-25.7%), computers and equipment (-24.3%), and gems and jewellery (excluding gold) (-12.4%).

The export contraction last month was attributed mainly to the slowdown in the global economy and weak consumer purchasing power, especially in major markets such as the US, the EU, China and Japan. Other Asian countries also reported a drop in exports.

The ministry cited some positive factors, including the continued decline in freight rates, the implementation of the ministry's shipment strategies and the recovery of international tourism, which resulted in higher exports of related products.

For 2022, exports expanded by 5.5% to $287 billion, while imports rose by 13.6% to $303 billion, resulting in a trade deficit of 16.1 billion.

"The export growth of 5.5% exceeds the ministry's target of 4%," said Commerce Minister Jurin Laksanawisit. "This stems from the ministry's efforts to facilitate and stimulate exports, including a successful attempt to lower border trade obstacles by negotiating with neighbouring countries and working with both public and private sectors in central and provincial areas."

According to Mr Jurin, the meeting of the Joint Public and Private Sector Consultative Committee on Commerce, which includes the Thai Chamber of Commerce, the Federation of Thai Industries and the Thai Industries and the Thai National Shippers' Council (TNSC), agreed to set an export growth target of 1-2% this year.

In a related development, Chaichan Chareonsuk, president of the TNSC, said the Bank of Thailand has been asked to help tackle the baht's appreciation as a strong baht will adversely affect the pricing and competitiveness of exports compared with competitors' goods priced in weaker currencies.

Bangladesh has offered over $40 a tonne more to Indian cooperatives to import 2.5 lakh tonnes of parboiled rice in a government-to-government deal compared with prices quoted by the private trade in a global import tender. The import deal will be through NCCF (National Cooperative Consumers Federation) and Kendriya Bhandar in two tranches with Dhaka getting rice at $443 and $443.5 a tonne each, according to media report.

Two Indian co-operatives will export 2 lakh tonnes of rice under government-to-government deal to Bangladesh, which will also buy another 50,000 tonnes from private traders in India. The G2G deal has taken place at 11 % higher than the tender price of the private trader. “The two co-operatives will get a huge premium of $40/tonne over the private trade, which will earn a huge profit for the government. The private trade has been in losses by undercutting each other in fierce competition,” said an exporter, who requested not to be identified.

New Delhi-based Kendriya Bhandar (Central Government Employees Consumer Co-operative Society) will supply 1 lakh tonnes of non-Basmati par-boiled rice within 75 days from the date of opening of letter of credit at $ 433.50/tonne. Kendriya Bhandar will have to ship 70% of the total contracted quantity by ship and the remaining 30% by train. National Cooperative Consumers Federation of India will supply another 1 lakh tonnes of par-boiled rice to Bangladesh at $ 433.60/tonne within 70 days from the date of opening of the letter of credit.

According to trade sources, Raipur-based rice exporter has bagged the tender to supply 50,000 tonnes of rice to Bangladesh at $ 393.30 per tonnes. India has banned export of broken rice on concerns about its kharif rice output, while it has put a duty of 20% on export of rice. Meanwhile, the rice exporters from India had requested the commerce ministry to take up the issue of transparency in Government-to-Private (G2P) trade with Bangladesh during a delegation level discussion of commerce minister Piyush Goyal with Bangladesh commerce minister Tipu Munshi.

“Many times, we face rejection when our goods reach Bangladesh ports. In case of the trade taking place through the land border, our trucks get stranded for 4/5 days to get clearance to cross the border,” said another rice exporter, who did not wish to be identified. It is heard the term ‘Myanmar-Bangladesh rice diplomacy recently through media platforms. The use of rice as a diplomatic tool has received global media coverage (the sun daily , modern diplomacy , eurasia review, pakistan today , burma news international , counter review) despite Myanmar-Bangladesh tensions. There is nothing new to say about the influence of food on politics. It is really appreciable that Myanmar and Bangladesh have already started rice diplomacy to mend the ties. Now, time will say how fruitful Myanmar-Bangladesh rice diplomacy would be.

In ancient times, many kings used food as a diplomatic tool to entertain their guests. The tradition continues in the modern political world. Many leaders of political parties and presidents have used and continue to use food diplomacy to strengthen relations between allies or diffuse tensions with opponents. According to an English report, Rice appears to have emerged as a favourite diplomatic tool for building strong ties with neighbouring Myanmar and Bangladesh. It is said that the product is a staple food for most people in countries like Indonesia and Thailand and neighbouring countries like China and India. The agriculture sector is one of the most important and strategic sectors for the survival of a country. Without food, the country can experience chaos and bankruptcy. Bangladesh government relies on various measures to maintain rice availability. The most popular way is to import rice. This import policy causes a lot of damage because Bangladesh is an agricultural country or country that mainly has rice.

Although Bangladesh’s agricultural sector is one of the best sectors, the country continues to import rice. Due to the current state of the world facing a global food crisis due to the conflict between Ukraine and Russia, many countries have closed their doors to exports to maintain their domestic reserves. Rice is an essential product in the life of the people of Bangladesh. Dhaka, which imports about a million tonnes of rice every year, has ordered imports from Myanmar despite tensions between Myanmar and Bangladesh.

Since agriculture and livestock are the backbone of Myanmar’s economy, it earns foreign exchange from rice exports beyond self-sufficiency. The state is helping stockholders including farmers and investors to bring business opportunities. According to a memorandum of understanding between Myanmar and Bangladesh on the rice trade, two lakh tonnes of white rice will be exported from Myanmar to Bangladesh.

For the first time, 2,650 tons of rice will be sent directly to Bangladesh in January 2023. According to data from the ministry of commerce of Myanmar, according to the government-to-government agreement between Myanmar and Bangladesh, Myanmar sent 150,000 tons of white rice to Bangladesh in 2022. Myanmar and Bangladesh signed a Memorandum of Understanding (MoU) on rice trade on September 8 this year.

According to this MoU, Bangladesh has agreed to buy 250,000 tonnes of white rice and 50,000 tonnes of parboiled rice from Myanmar between 2022 and 2027. According to the memorandum of understanding, the food directorate of Bangladesh and the Myanmar Rice Federation signed an agreement to sell 200,000 tons of Myanmar white rice for export to Bangladesh. According to the sales agreement, Myanmar has exported around 15,000 tonnes of white rice to Bangladesh till 19 December 2022. The remainder will be delivered within the deadline. According to the Government-to-Government pact between Myanmar and Bangladesh, Myanmar has sent over 174,000 tonnes of white rice to Bangladesh by sea, according to the Ministry of Commerce.

Myanmar and Bangladesh inked a Memorandum of Understanding (MoU) on rice trade on 8 September this year. As per the MoU between Myanmar and Bangladesh on the rice trade, 48 companies, under the supervision of the Myanmar Rice Federation, are to export 200,000 tonnes of rice to Bangladesh with Chinese yuan payment between October 2022 and January 2023. Under the contract, white rice (ATAP) GPCT Broken STX variety will be delivered. The FOB prices were 2.78856 Yuan per kilogramme and 2788.56 Yuan per tonne.

Bangladesh’s Directorate General of Food and MRF signed the sales contracts as per the MoU and Myanmar sent 100,000 tonnes of rice to Bangladesh each in 2017 for the first time and 2021 for the second time, as per the sales contract. Myanmar and Bangladesh have started practicing their rice diplomacy. Myanmar supplies to Bangladesh will deepen their ties. This can be a great effort by both sides to build good relations with the Bangladeshi and Myanmar governments. It will also build good bilateral relations between the people of Bangladesh and Myanmar. In the short term, the new generation on both sides wants better relations in terms of economy, tourism, etc.

There may be some problems between Bangladesh and Myanmar. However, these issues (Rohingya refugees and border issues) should be properly addressed by both sides. Bangladesh is going to become the economic miracle of South Asia. Bangladesh is praised by the international community in every international forum. Ping-pong diplomacy led by China and the United States was set up to strengthen their relationship. We can also expect another application of ping-pong diplomacy similar to rice diplomacy. Paddy’s diplomacy is a small initiative but its significance is huge. This small initiative will turn into a great achievement for both parties. A high-level official visit could be a step to strengthen ties. The two prime ministers may exchange visits to normalize relations. This is good news for Myanmar and Bangladesh.

The writer is a London-based Bangladeshi expatriate who is a Bangladesh and Myanmar affairs observer, analyst, and researcher

Thin margin. Rice exporters urge Centre to remove curbs on shipments, withdraw duty.

Rice exporters association says shippers margin have shrunk as the cereal is traded on ‘thin margin’

Rice exporters have urged the government to ease restrictions on non-basmati rice shipments by removing the 20 per cent export duty on white (raw) rice and allowing the shipment of one million tonnes (mt) of broken rice. However, the Centre is unlikely to take a decision before March as it has to assess the procurement of kharif-grown paddy by the Food Corporation of India (FCI).

In a letter to the Food Ministry, which proposed restrictions on export last year to ensure domestic availability and curb inflation, The Rice Exporters Association (TREA) said due to the 20 per cent export duty, exporters are facing stiff competition from Myanmar, Vietnam, Pakistan and Thailand.

Exporters said ever since the duty was imposed, their margins have shrunk, though rice trade is done at a “thin margin”.

Upbeat wheat outlook

“The issue (export duty) should be relooked at now as the twin objectives of keeping inflation under check and taking procurement to a comfortable level have been achieved,” said B V Krishna Rao, President of TREA. He said as the wheat crop outlook is good and the pressure on rice has eased as the Government reallocated more rice in place of wheat under the public distribution system.

On the issue of the total ban on fully broken rice export, Rao said TREA has suggested the allocation of one mt as there is a demand from Senegal and Indonesia for human consumption. This will help farmers to receive better rates for their paddy as other industry users such as poultry or ethanol might not pay adequate rates, he said.

The Directorate-General of Foreign Trade on September 8 issued a notification prohibiting the export of broken rice (parboiled and basmati exempted). However, it allowed the consignments for which deals had been signed to be exported under specific conditions between September 9 and 15. It recently extended the last date to September 30 for those under transitional arrangements. The Centre imposed a 20 per cent duty on the export of all varieties of rice, except basmati and parboiled rice.

The country exported 115.69 lt of non-basmati rice worth $4.11 billion (₹ 32,594 crore) in April-November against 109.49 lt worth $3.93 billion in the year-ago period.

Traders compete with FCI for stocks; currency movements, too, sway prices

Export prices of Indian white rice have increased by over 10 per cent over the past fortnight to nearly a 30-month high. The surge in prices is in view of the Food Corporation of India (FCI) procuring more rice for the central pool and global currency movements, exporters and traders said.

The Centre’s decision to end the distribution of free grains under Prime Minister Garib Kalyan Anna Yojana (PMGKAY), which is in addition to the normal supply under various welfare schemes, has also resulted in the prices rising, they said. 

This is because those who were getting rice under the scheme are now seeking rice from the open market. 

Near MSP levels

“Exporters have to compete with the FCI to get rice. This has pushed up rice prices. Once it ends procurement, we could see some correction,” said New Delhi-based exporter Rajesh Paharia Jain.

FCI procurement of kharif rice is 20 per cent higher year-on-year, he said. 

“Parboiled prices have increased by 30 per cent in the past couple of weeks to ₹29,000 a tonne from ₹22,000. Talks of Bangladesh buying rice under a government-to-government deal have pushed up the price,” said VR Vidya Sagar, Director, Bulk Logix.

According to data from the Agmarknet portal, a unit of the Agriculture Ministry, paddy prices were up at ₹2,419.46 a quintal last week compared with ₹2,054 a year ago. This year, the MSP for paddy has been fixed at ₹2,040 for the current crop year to June. 

Data from the Consumers Affairs Ministry show that the average wholesale price of rice is currently ₹3,328.43 a quintal, up 9.12 per cent year-on-year. 

Most of the rise in the price happened in the past week, he said. 

“Rice prices have increased to near minimum support price (MSP) levels and this has resulted in export prices surging,” said BV Krishna Rao, President, The Rice Exporters Association. 

Still competitive 

According to the Thai Rice Exporters Association, India’s 5 per cent broken white rice price has increased by $40 a tonne since the third week of December to $443-47 a tonne. The price of 25 per cent broken white rice has gone up by $50 to $428-32.

Only parboiled rice has not witnessed such a rise, though its prices have risen by $15 to $388-92 a tonne. Despite the surge in prices,  Indian rice is still the most competitive. However, the Indian cereal currently holds only a $15/tonne advantage over Vietnam. 

“Indian white rice prices will top $450 in a week’s time once the markets open up abroad after the Chinese lunar New Year. We have to see how the Vietnam market opens on February 1,” said Bulk Logix’s Sagar. 

Good for sector

Exports to Africa are taking place, though there is a general shortage of supplies in the market, he said. 

TREA’s Rao said the increase in rice prices is good for the industry since only “actual millers” are buying in the domestic market. “Various States such as Tamil Nadu are buying rice from the open market, pushing up prices,” he said.

“Prices have increased despite the arrival of new crop in West Bengal. We are exporting rejected grains from parboiled sortex,” said M Madan Prakash, President of the Agricultural Commodities Exporters Association.

Even prices of such grains have increased to nearly $320 free-on-board (f.o.b). 

Set to cool

However, the current trend may not hold for long since “the surge” is not sustainable, said Sagar. 

“Prices are likely to correct once the Vietnam market opens,” he said. 

“The market is caught between two rice seasons in Thailand. Once the new crop arrives there, prices will cool down,” said Rao. 

“Once FCI ends its procurement, it will be only traders in the market. It will bring down prices,” said Jain. 

But a trade analyst, who did not wish to be identified, was sceptical saying, “the market sentiments are based on physical supplies. Looks like the data on production may not be right.”

Rice prices are up since the production during the kharif season has been estimated lower at 104.99 million tonnes (mt) this year compared with 111.76 mt last year. This was because paddy sowing was affected by deficient rains in West Bengal, Odisha, Jharkhand, Bihar and eastern Uttar Pradesh. 

According to data from FCI, rice stocks are at an 8-year low of 12.35 mt as of January 1 but unmilled paddy stocks are at a record high of 47.62 mt (31.9 mt of rice). 

In its monetary policy statement announced on Monday, the State Bank of Pakistan (SBP) noted a “moderation in working capital loans to the private sector”. The rice processing industry –a subsegment of food product manufacturers - disagrees. According to the monthly disaggregated private sector credit snapshot published by the central bank for Dec 2022, rice market players have been borrowing like there is no tomorrow; as if the markup on loans has peaked at historic levels.

There is little by way of explanation to offer. USDA latest monthly update shows that the Ag-agency is standing steadfast with its initial prediction, forecasting national output of just 6.6 million metric tons (MMT) for the marketing year 2022-23, with 4MMT in exports. Yet, despite warnings of nearly one-third of national production being washed away, borrowing has followed in the footsteps of last year, when national production touched a record production of 9.3MMT.

In fact, based on SBP data, working capital lending to rice processors has effectively risen at the same pace as last year’s since the marketing season began at the end of Kharif 2022. By Dec 2022 close, working capital loans to rice processors rose by 62 percent over the Sep close (end of marketing year), against 65 percent during the corresponding period last year.

The rice export report card also offers little in the way of answers. Export volume declined at a record pace during 6M-FY23, falling by 23 percent over the corresponding period last year. Although basmati export volume has seen worse years, this is the first time in a decade that coarse rice exports suffered such a massive setback, which is in line with the destruction of the crop in the southern parts of the country. Total rice export barely managed 1.6MMT during 6M-FY23, against 2.2MMT in 6M-FY22. At this rate, USDA’s export forecast of 4.8MMT for FY23 appears to be a distant dream.

Significant support, however, was received by the upsurge in prices in the export market. Both basmati and coarse varieties averaged the highest unit prices in over a decade, muting the value impact of dwindling exports. Export revenue during the first half of the fiscal fell by just 13 percent year on year, raising hopes that two billion dollars in full-year export proceeds may still happen. Interestingly, however, the basmati export unit price fell during Dec 2023 despite the continued upsurge in the international market, giving credence to the theory that exporters are holding back on proceeds realization on account of anticipated depreciation in the currency.

With the weak export volume and even weaker supply, it remains unclear what’s behind the borrowing drive by rice processors. The margins in the commodity export market must be mouthwatering if market players are willing to make a play at a 20 percent borrowing rate, never mind the downside risk of a crash in international prices. Let’s see if the bet pays dividends!

MUMBAI, HANOI AND BANGKOK: Indian rice export prices rose to their highest levels since April 2021 this week boosted by limited supplies and a stronger rupee, while firm local currency and demand sent Thai rates higher. Top exporter India’s 5% broken parboiled variety was quoted at $387-$395 per tonne this week, up from last week’s $375-$382 per tonne. White rice prices rose to $435-$440 per tonne from $398-$405 per tonne a week ago.

The Indian rupee rose to a one-month high this week, trimming exporters’ returns from overseas sales. Demand is weak as local prices jumped after the government curtailed free-food grain distribution, said Himanshu Agarwal, executive director at Satyam Balajee, an exporter.

Thailand’s 5% broken rice was quoted at $500-$502 per tonne - the highest since March 2021 - up from $495 per tonne last week, which traders attributed to the strengthening of the baht and robust domestic demand.

A stronger baht translates to higher export prices in US dollars. “Many rice traders and buyers are now adopting a wait-and-see approach to the market due to the strong baht,” a Bangkok-based trader said.

Aman season lacks consumer-friendly varieties

Prices of paddy have declined 10-12 per cent in the last two weeks, which has hardly been reflected in the city rice market as most of the varieties remained almost in a static trend maintaining the previous highs.

Medium and finer types of parboiled rice, which are mainly available in the city groceries, were still trading at between Tk 65 and Tk 98 a kg in Dhaka when paddy prices fell by Tk150-200 a maund, according to Bangladesh Auto Major Husking Mill Owners Association, Consumers Association of Bangladesh (CAB) and city groceries.

Though prices of coarse varieties of rice showed a slight decline in the milling hubs, it is not reflected in the city as those were retailing at Tk50-54 a kg.

And most of the city groceries had hardly any coarse-variety rice in Dhaka's Mohammadpur, Mirpur Sections 11, 6, 10, Agargaon, Farmgate, Azimpur, Plassey, Segunbagicha, Malibagh areas, forcing several thousand buyers to purchase rice at higher prices, the FE found visiting the areas in last one month.

BAMHMOA secretary KM Layek Ali said coarse paddy witnessed a fall by a good margin as guti-swarna paddy price declined to Tk950 a maund from Tk1,150 in December.

Swarna-5 paddy was trading at Tk1,000 against Tk1,200 a month back, he said.

Finer varieties of paddy like Shampa-Katari and BRRI dhan 49 showed a slight decline---Tk50-60 a maund as those were selling at above 1,600 a maund.

He said Aman season now is the source for the major volume of coarse rice.

Swarna varieties occupied above 60 per cent of Aman fields in Rajshahi and Rangpur divisions, he added.

Supply and value chain expert Prof Md Moniruzzaman said millers bought a large chunk of paddy at a much higher rate in November last with the beginning of Aman harvest.

"So, they are now reducing prices at a much slower pace than that of decline in paddy rates", he said.

"Besides, the lack of medium and finer rice varieties in the Aman season is also a major reason for such price disparity in a peak harvesting and trading season when the government is claiming that production is very good," said Prof Moniruzzaman, who teaches agribusiness and marketing at the Bangladesh Agricultural University (BAU).

He said Aman season was once the key source for finer and aromatic rice which has almost altered.

Millers are ultimate gainers of having a limited number of varieties both in Aman and Boro seasons, he added.

The Aman season now provides the key coarse variety ---Swarna, a transboundary species.

He said the government has declared that there is no rice name 'Nazirsail.' "Then which is now the key finer parboiled rice in Aman season," he asked.

The government rice research and extension agencies concerned should introduce suitable farmer-consumer friendly rice varieties for Aman season to prevent such market imbalance, he added.

Delowar Jahan, founder of Prakritik Krishi, a safe food outlet, said a near-variety of Kataribhog namely 'Shampa-Katari is sold as Nazirsail in the northern and western regions.

The quality of the rice, which might have been developed by the farmers themselves, is very good but it hasn't been recognised by the government agencies, he said.

He said two rice varieties, developed by the state-run rice agency long ago in 1993-94 are still dominating the Boro rice fields.

It is the same for Aman season as apart from Swarna, only BRRI dhan 49 has been able to occupy above 10 per cent of land.

Hundreds of varieties in the Haor and other lowlands have gradually been witnessing extinction which are highly suitable now when the climate is changing rapidly, he said.

The agency should adopt or develop such varieties and should maintain their old name instead of any number, he said.

Asked, Bangladesh Rice Research Institute (BRRI) director Dr Mohammad Khalequzzaman said the agency has developed few medium and finer varieties like BRRI dhan 49, 57, 70 and 80 for Aman season.

Among them, BRRI dhan 49 has captured 15 per cent of land in last one decade, he said.

He said BRRI developed similar varieties of Swarna namely BRRI dhan 93, 94 and 95, which are slowly gaining popularity.

BRRI developed few dozens of Aman varieties which should be popularisied by the Bangladesh Agricultural Development Corporation and Department of Agricultural Extension (DAE), he added.

DAE director general Badal Chandra Biswas said they are trying to popularise BINA dhan 17, BRRI dhan 75 and BRRI dhan 87-three finer varieties.

He said DAE is insisting farmers on the varieties suitable for their areas.

BADC general manager (seed) Pradip Chandra Dey told the FE that the organisation supplied 25,000 tonnes of seeds in Aman season which would increase to 28,000 tonnes next season.

He said the Corporation has also been trying to raise production of newer varieties like BRRI dhan 95.

"We are supplying seeds as per the requirement set by the DAE", he said.

He said the DAE will have to work to popularise a specific rice variety.

Meanwhile, the agriculture ministry is expecting 16.3 million tonnes of rice from the just-ended Aman harvesting season as the acreage increased to a record 5.9 million hectares as per their primary projection.

Aman season provides 37-38 per cent of the total rice the country consumes.

In Punjab, nearly 30-31 lakh hectares (74 to 76 lakh acres) are dedicated to the rice crop (kharif season), out of which 25-26 lakh hectares come under paddy.

Crop diversification is a key issue in Punjab. The state has large areas under the water-guzzling paddy crop mainly on account of the assured returns to farmers in the form of Minimum Support Price (MSP) from the government and the high yield it offers. But the aromatic Basmati rice, which has fluctuating prices and no MSP, still offers hope as the best alternative to paddy. Here’s a look at the economics of growing Basmati.

How much area could be increased under Basmati?

In Punjab, nearly 30-31 lakh hectares (74 to 76 lakh acres) are dedicated to the rice crop (in the kharif season), out of which 25-26 lakh hectares come under paddy. The area under Basmati crop has remained between 4-5 lakh hectares over the last several years. Basmati’s early and late varieties are sown between June and July, and harvested in September and October.

Rice exporters say there is a huge demand for Basmati, and the state has the potential to grow it in vast areas. It is estimated by experts that at least 10 lakh hectares could easily be brought under the Basmati crop in the state, which will help reduce the area under paddy.

What is the yield of Basmati as compared to paddy?

Punjab grows both short-duration and long-duration paddy varieties. The average yield of short and long-duration paddy varieties is around 28 and 36 quintals per acre, respectively. Basmati, too, has long and short-duration varieties. The average yield of these varieties is between 20 and 25 quintals per acre — which is 8-10 quintals less per acre as compared to paddy.

The market for the crops

Paddy is procured by the Union government on MSP for distribution under the Public Distribution System. Basmati is neither procured by the government nor has any fixed price. It is procured by traders and exporters as Indian Basmati has large demand abroad.

What is the profit margin for each crop?

The MSP of paddy was Rs 2,060 per quintal in the 2022-23 kharif marketing season. The Basmati rate remains between Rs 3,200 to Rs 4,000 per quintal during September (for early varieties) and October-November (for late varieties).

Currently, its rate is Rs 4,600 per quintal as some farmers, who had held back some crops after harvesting, are now bringing it to the market, said Vinod Gupta, a Fazilka Mandi-based commission agent. He said that Basmati’s demand hardly goes down and its rate remains good. But, he added that local traders form cartels to give less to farmers and that the government must check such practices.

As per the MSP of paddy, a farmer could sell paddy worth Rs 57,680 to Rs 74,160 per acre depending on yield, Basmati could be sold for between Rs 64,000 to Rs 1 lakh per acre despite the lower yield. Last year, the average rate of Basmati remained between Rs 2,500 to 3,500 per quintal.

What are the benefits of the Basmati crop?

Experts say that 4,000 litres of water are required to grow a kilo of paddy. Basmati cultivation, on the other hand, is largely dependent on rainwater as it takes place during the main monsoon season. Even if some early varieties are sown in June, they are harvested at least a month before the main basmati and paddy varieties, thus saving water. Basmati cultivation can also reduce stubble burning — farmers use its stubble for fodder.

“It hardly needs any pesticides. The state government bans the sale of around 10 pesticides during the Basmati-growing season for the past five years, which indicates that it does not need those chemicals. According to an estimate by the Punjab Agriculture Department, farmers spent Rs 200 to 250 crore less on pesticides on Basmati over the past five years since 2017-18 years. This is a big cut in costs,” said Ashok Sethi, Director of the Amritsar-based Punjab Rice Millers & Exporters Association, in an interaction with Basmati farmers.

What is the role of Punjab’s Basmati in the export market?

Basmati is a premier and heritage product of Punjab. It is known for its flavour, length and taste due to Punjab’s excellent weather, soil and irrigation (through river and canal water). Also, Punjab is among the states and Union Territories (Haryana, Uttar Pradesh, Jammu and Kashmir, Himachal Pradesh and Uttarakhand are the others) that have a Geographical Indication (GI) tag for Basmati.

The annual Basmati rice export from India is around 4 million tons (worth Rs 36,000 crore), out of which Punjab contributes between 35 to 40 per cent.

Is there any hurdle Punjab’s Basmati faces in the export market?

Experts said that despite the government’s efforts to ban pesticides during the basmati-growing season, several farmers have indulged in unnecessary and excessive usage of chemicals combined with fertilisers. Several shipments of such crops are rejected after landing on US and European shores, owing to strict health regulations.

How can the government increase the Basmati area in Punjab?

Some experts say the Union and state governments must encourage farmers by giving them a bonus of Rs 8,000 to Rs 10,000 per acre. Haryana gives bonuses to those who are growing crops other than paddy. They suggest several other measures: Good quality seeds, rice exporters’ collaboration with the Department of Agriculture, strengthening of canal/river water, and setting up of solar panels.

A testing lab has already been set up in Amritsar to help farmers. The government can help educate farmers about the judicious use of only authorised pesticides. Exporters also said that pesticides unregistered in the EU and the USA are freely available for sale in India, which needs to tighten regulatory control over the sale and distribution of such products.

It has regulated standards to maintain the natural aroma and quality of basmati rice. The comprehensive regulatory standards will be enforced from August 1. 

Adulteration of food has become a big cause of concern amid ever-growing competition between the corporates. In recent days, it has been observed that some of the corporates, in order make their fast moving consumer products (FMCGs) more sellable, have resorted to unfair memes like adding artificial odour and colour to the food grains

Basmati rice - considered as the most popular rice form in the country - has also suffered adulteration. 

Taking note of some recent complaints, the Food Safety and Standards Authority of India (FSSAI) has specified the identity standards for basmati rice - It has regulated standards to maintain the natural aroma and quality of basmati rice. The comprehensive regulatory standards will be enforced from August 1. 

What are the regulatory standards?

As per the standards, the natural aroma of basmati rice has to be maintained. Any kind of artificial coloring and fake fragrance cannot be added to Basmati rice. These standards apply to brown basmati rice, milled basmati rice, parboiled rice, milled basmati parboiled brown basmati rice. 

The standards also specify various identity and quality parameters for basmati rice such as average size of grains and their elongation ratio after cooking, maximum limits of moisture, amylose content, uric acid, defective/damaged grains and incidental presence of other non-basmati rice.

India is the largest exporter of Basmati Rice

India is the largest exporter of Basmati rice worth about Rs 30,000 crore every year. New Delhi has also applied for GI tag for Basmati in European Union. 

What is Basmati Rice?

Basmati is long aromatic rice grown traditionally in the Himalayan foothills, Himachal Pradesh, Punjab, Haryana and Uttarkhand. Its speciality is that it has extra long grains and has more soft and fluffy texture upon cooking. Basmati rice is unique among other aromatic long-grain rice varieties.   

MUMBAI/HANOI/ BANGKOK: Export prices of rice from Thailand rose this week to their highest level in nearly two years on a stronger baht and sturdy demand, while Vietnam rates fell to a six-week low as activity slowed ahead of the Lunar New Year holiday.

Thailand’s 5% broken rice rates rose from $480 per tonne last week to $495 per tonne on Thursday - its highest since March 2021 - helped by a strong baht and more regional demand, traders said.

“Prices are the highest in 3-4 years because of the strong baht and demand coming in from Indonesia,” said a Bangkok-based trader, adding prices could reach $500. Meanwhile, Vietnam’s 5% broken rice was offered at $445-$450 per tonne, free on board, down from $458 per tonne a week ago. “Trade is slow as the Lunar New Year holiday is nearing,” a trader based in Ho Chi Minh City said.

“Exporters are focusing on delivery for the signed contracts,” the trader said, adding that domestic supplies are low after strong shipments in 2022.

Traders said the winter-spring harvest, the largest crop of the year, will begin in February and peak from mid-March.

Top exporter India’s 5% broken parboiled variety was quoted at $375-$382 per tonne, unchanged from last week. White rice prices in India rose to $398-$405 per tonne from $394-$400 per tonne a week ago on good demand.

“Buyers are giving preference to Indian rice despite export duty.

Indian supplies are at least $50 per tonne cheaper than other destinations,” said a New Delhi-based dealer with a global trading firm.

Rice imports have been banned since early November and no kind of rice can go through customs clearance`

Iran has lifted restrictions it recently imposed on rice imports, according to the director general of the Commerce Bureau of the Agriculture Ministry.

“There is currently no ban on placing order [for rice imports],” Shahyad Aabnar was quoted as saying by Iran Chamber of Commerce on Wednesday, adding that order has been placed for the import of 100,000 tons of rice in the past 24 hours.

His comments came after the head of Rice Importers Association of Iran announced that rice imports have been banned since early November and no kind of rice can go through customs clearance.

“Responsible officials have cited ‘balancing out bilateral trade’ as the reason why they have banned rice imports from the countries we normally purchase the grain from,” Karim Akhavan-Akbari was quoted as saying by the news portal of Iran Chamber of Commerce, Industries, Mines and Agriculture.   

It was earlier announced that only Indian rice imports were banned.

Akbari said the government decision would cause shortage in the domestic market, since local production cannot meet domestic demand for rice.

“So far this year, close to 1.27 million tons of rice have been imported. Our annual import demand stands at around 1.5 million tons. Therefore, we need to purchase nearly 250,000 tons of the grain by the end of the year [late March],” he said.

He noted that year-on-year inflation for top quality Iranian rice stands at 123.1%, adding that for high-quality foreign rice the rate stood at 45.9% in the month ending Dec. 21.

“The first six deciles of the country consume imported foreign rice, due to their more reasonable prices. The ban set on imports can result not only in a shortage of rice, but an increase in prices. In our country, rice is a staple food, coming in second after wheat in the list of the most consumed grains. Therefore, this measure can impact a large number of the population, particularly the ones with more modest means,” he said.    

His remarks came after Salar Saket, the deputy head of Rice Importers Association of Iran, echoed similar concerns.

“Indian rice accounts for the highest proportion of imported rice due to its high quality and reasonable price. Iranians prefer Indian rice over other foreign types of rice and importers trade commodities for which there is demand in the market. The rice we purchase from India meets the needs of six underprivileged income deciles and also balances the price of Iranian rice. So, it is only obvious how this ban on imports can damage the market,” he said.

The ban also applied to import of tea from India.

“It will be lifted as soon as bilateral trade is balanced out or registers surplus,” secretary of Iran’s Rice Suppliers Commission, Masih Keshavarz, was quoted as saying earlier.

A total of 1.75 million tons of rice were imported into Iran during the last Iranian year (March 2021-22). The import volume set a ten-year record high, according to the secretary of Iran Rice Association.

“Last year’s imports was more than twice the volume the country needed to make for the domestic production deficiency,” Jamil Alizadeh Shayeq was quoted as saying by Mehr News Agency.

A total of 2.25 million tons of rice were produced in Iran during the last Iranian year (March 2021-22), according to the deputy head of Iran Rice Union, Ahmad Eshraqi.

Rice consumption in Iran currently stands at 3 million tons per year, about 70% of which are supplied through domestic production, according to Alireza Mohajer, a deputy agriculture minister.

India has long been a major exporter of rice to Iran. Other exporters include Pakistan, the UAE, Thailand, Turkey and Iraq.

The three northern provinces of Gilan, Mazandaran and Golestan produce are Iran’s rice production hubs.

Contract-Based Production

Contract-based cultivation of rice was launched in Iran in April 2022 for the first time.

More than 6,322 hectares of paddy fields have joined the scheme so far, the CEO of the Central Organization for Rural Cooperatives affiliated with the Ministry of Agriculture said back then.

“We estimate that a total of 15,805 tons of rice will be produced under the scheme which is being carried out in the northern provinces of Gilan, Mazandaran and Golestan. Up until now, we have distributed over 1,100 tons of seeds among farmers taking part in the plan,” Esmaeil Qaderifar was also quoted as saying by ILNA.

Agricultural Production Insurance Fund, he added, has made sure all of these contracts are insured.

“Seeds, fertilizers and pesticides are provided for farmers as part of the contract-based production scheme. The government plans to expand the scheme to all strategic agricultural products,” he said.  

FAO Forecast

The Food and Agriculture Organization of the United Nations expects Iran’s rice production to reach 3 million tons in 2022, down from 3.1 million tons last year. Five-year average output has been put at 3.5cereal million tons.

In its biannual report on global food markets, FAO said Iran imported an average of 1.3 million tons of rice during the 2018-20 period.

The 2018-20 average production has been put at 2.5 million tons.

Consumption is forecast to slightly increase from 3.6 million tons in 2021 to 3.7 million tons in 2022.

Average utilization during crop years 2018-19 to 2020-21 stood at 3.6 million tons.

2022-23, 2021-22, and 2018-19 to 2020-21 average closing stocks have been put at 0.6, 0.5 and 0.7 million tons respectively.

The 2018-19 to 2020-21 average per capita has been put at 38.2 kilograms.

Limited availabilities of water for irrigation cloud rice production outlook for Iran, the report noted.

“International trade in rice is predicted to register its third successive annual increase in 2022 (January–December), with volumes exchanged across the world forecast to reach 53.1 million tons, up 3.0 percent from the 2021 all-time high. With the exception of the Asian Far East, most regions are anticipated to step up their imports over the course of the year, often aided by state efforts to contain inflationary pressure. Such steps have taken the form of import duty remissions in various African and Latin American countries, or of an acceleration of government-contracted imports, as has been most notably the case of Iraq and the Islamic Republic of Iran.”

Growers benefit in turn as the fragrant variety’s paddy sells above ₹4,250/quintal.

Basmati rice exports from India have gained in value and volume following short-supplies from Pakistan, the only other competitor in the global market for the long-grained rice.

Data from the Agricultural and Processed Food Products Export Development Authority (APEDA) show that basmati shipments during April-November of the current fiscal have increased to 2.73 million tonnes (mt), a 13 per cent jump over 2.4 mt in 2021-22. 

The value of exports, on the other hand, has increased to $2.87 billion from $.2.06 billion. This is in view of the unit value rising 39 per cent during April-November to $1,051 a tonne from $860 for the entire 2021-22.

More room for a hike

In rupee terms, the rise in value is 48.6 per cent. Though data are available only till November, the picture has changed dramatically since then with Pakistan basmati exports dropping 44 per cent during the July-December period.

Since then, basmati rice prices have increased further. Currently, the fragrant rice from India is quoted at $1,450 a tonne, while the Pakistan variety is offered at $1,350. 

The buoyant exports have resulted in basmati farmers fetching 60 per cent higher price this fiscal. According to data from Agmarket, an arm of the Agriculture Ministry, the weighted average price of basmati paddy is ₹4,326 a quintal against ₹2,688 a year ago. “There is room for India to increase basmati prices further in view of the shortage in Pakistan,” said S Chandrasekaran, who has authored the book “Basmati Rice: The Natural History and Geographical Indication” and is a trade analyst.

Wettest August in 61 years

Pakistan has been badly hit by the wettest August in 61 years it witnessed last year. The neighbouring country’s agricultural production, mainly basmati and non-basmati paddy, has been badly affected by floods. 

Despite the damage, the US Department of Agriculture (USDA) has not projected any major setback to agricultural production. However, Rice Exporters Association of Pakistan has been quoted by the media that basmati production had declined 40 per cent in the Sindh province due to floods.

On the other hand, India’s basmati production is expected to be higher but details are awaited. Trade sources said Pakistan is going through a turbulent period due to a shortage of US dollars that is preventing it from importing commodities. The drop in basmati exports will further affect Islamabad’s balance of payment problem. 

Damage to rail link

Pakistan is currently witnessing skirmishes for food with social media flooded with such incidents. Last year, its wheat crop suffered due to a heatwave and currently, it is having to look at imports to overcome the shortage in the domestic market.

Chandrasekaran said during the August-December period, there would have been at least 50,000 tonnes shortfall in Pakistan basmati supplies in the global market each month. “The historic floods have damaged the Karachi-Lahore rail link. It is another reason for Pakistan’s basmati exports to be affected,” he said. Differences between Pakistan and China over Main Line railway project under China Pakistan Economic Corridor have delayed the work to restore the link.

India, on the other hand, has gained with Iran buying 6.28 lakh tonnes (lt) of basmati rice during the first half of the current fiscal. This is two-thirds of its total basmati imports last fiscal. Saudi Arabia and United Arab Emirates are the next big buyers of Indian basmati, importing 4.45 lt and 1.8 lt respectively in the first half.

HYDERABAD: The ruling Bharat Rashtra Samithi (BRS) of K.Chandrasekhar Rao and the Narendra Modi-led Bharatiya Janata Party (BJP) are embroiled in a new conflict over a 5-kg free rice scheme that would be extended to ration card
users across the state beginning this month.

The BJP-led government in New Delhi recently decided that it will offer 5-kg
of rice per person in each ration-card-holding family across the country for
a year from January to December 2023 to those covered by the National Food
Security Act, 2013. In addition to the Centre's 5-kg rice scheme, the Telangana government said on Wednesday that it will  begin distributing 5kgs of rice per person per family with ration cards immediately. Civil supplies minister Gangula Kamalakar made the announcement on Wednesday. This provoked a war of words between the BRS and BJP leaders. The BJP leaders claimed that the BRS government was forced to implement this scheme after the Centre announced a free rice scheme.

The BJP leaders said the BRS government has been implementing 6kgs rice per
head at the rate of Rs 1 per kg all these years and when the central government announced 5kg free rice scheme from January, the BRS government decided to scrap its scheme and implement the Centre's free rice scheme to reduce its subsidy burden. When the BJP leaders threatened to hold agitation programmes, the BRS government backtracked and announced a 5-kg free rice scheme.

The BJP claimed that the state government's decision to distribute free rice
was a result of its state president Bandi Sanjay Kumar demanding the same.
The party, in a news release said the government's decision was forced after
Sanjay wrote a letter to the CM on Tuesday asking if the Telangana
government wanted the poor to be on empty stomachs during the harvest
festival of Sankranti.

Gangula Kamalakar claimed that his department had to change a software system in order to implement the Centre's free rice scheme at all ration shops, resulting in delay in distributing free rice to beneficiaries for a week. The plan to supply free rice from Wednesday has nothing to do with the BJP threatening agitation programmes.

 "Telangana has 55 lakh ration card holders covered under the Centre's NFSA
while the state government issued an additional 35 lakh ration cards on its own to cover more beneficiaries by increasing income ceiling. The Centre is giving free rice to only 55 lakh ration card holders while we are bearing additional expenditure on another 35 lakh beneficiaries. We are supplying free rice to all these beneficiaries with our own funds. This shows the humane approach of CM KCR towards the poor," Kamalakar said.

It coincided with one of my first conversations with Irvin Weerackody who was instrumental in initiating me into the fascinating world of advertising, a venture which I believe helped considerably improve my writing skills among other things. He asked me to come up with a line. So I did: ‘yali sahalata’ and the English version, ‘Back to rice.’ The idea was accepted and of course considerably enhanced by the Phoenix creative team.

At that time, as had been for several decades, the focus was on obtaining food security. Interesting term. Although it has connotations of self-sufficiency, what it really implies is the ability to either grow all the food a country (or a household or an individual) needs or possess the means to purchase the same. For those who believed that the former was the better option, which would make the term ‘food sovereignty’ more appropriate, it was about volume. In short, it was about growing all the food needed in the island itself.

There’s something missing though. Nutrition. New ‘improved’ rice varieties introduced with the Green ‘Revolution’ (the quotation marks are significant, please note) were hailed as miracles. Shailesh Awate, Co-founder of OOO Farms, a social movement in India, argues, however, that the term ‘improved’ was misleading because it suggested what people were eating before was underdeveloped.

The new varieties did help countries become self-sufficient but they also brought with them a lot of problems. They were thirsty for chemical fertilizers, demanded insecticides and pesticides and required farmers to buy new seeds every year. Traditional rice varieties had been developed over centuries and were adapted to specific environments. Most importantly, their nutritional benefits were immense.

So ‘back to rice’ on the face of it addressed a particular problem and did justice to the brief submitted by the then Government — necessary but not sufficient, one has to conclude in retrospect.

The self-sufficiency drive was launched in a context of the above ‘miracle’ as well as more than half a century since Japan developed technology to separate the inedible outer husk of rice grains which polished the grain so much that the bran got removed and turned brown rice into white. The removal of fibre and nutrients through polishing, it is now acknowledged, has affected the health of populations with rice-heavy diets. Dr. Vasanti Malik of the University of Toronto, points out that ‘white rice, because it lacks fibre and other nutrients, is absorbed quickly, prompting rapid spikes of blood glucose and insulin levels which, over time, increases the chances of developing diabetes.’ Asia, unsurprisingly, is projected to see the biggest rise in diabetes cases by 2045.

Strangely, though, the World Health Organisation in its report on non-communicable diseases such as diabetes, has recommended as long ago as 2002 that it would be prudent for countries to shift to traditional foods. It seems, then, that the subjects of agriculture and health (and within it, nutrition) have existed like two countries separated by oceans, mountains and massive chasms.

The problem is a fascination or even fixation with improving yield density at the cost of virtually abandoning nutrition density and along with it traditional rice varieties. Dr. Sirimal Premakumara of Colombo University, after studying brown, purple, red and gluteus varieties of rice still grown in Sri Lanka, concludes that their nutritional density is superior to even that of the iron-fortified ‘breakthrough rice’ developed by Thailand.

The ITI (Industrial Technology Institute) data shows that traditional varieties such as Pachchaperumal, Kalu Baala Vee, Rath Suwandel, Kalu Heenati, Rathu Heenati, Gona Baru, Kahavanu, Madathavalu and Beth Heenati are considerably richer in protein, iron and antioxidants than the modern, hybrid varieties that have been pushed over so many decades. They have superior anti-diabetes and anti-cancer properties, higher fibre content, improve immune systems and are far more nutritious.

The argument can be made and indeed is often tossed around that traditional varieties will not help the cause of achieving self-sufficiency. That’s bad science, isn’t it? First of all, they were rubbished by ‘experts’. Then they were deemed to be useless in the context of the yield-mantra, a gain proposed by experts who didn’t seem to think that nutrition needed to be considered. It was always about volumes, never mind if the population was forced to eat tons of unhealthy rice. Never mind if the Treasury had to allocate more and more money to deal with patients with non communicable diseases such as diabetes.

An unhealthy population is ok as long as they aren’t hungry, it’s ok if they suffer, it’s ok if they die young, seems to be ‘expert thinking’. All ok as long as manufacturers of so-called miracle seeds, agrochemicals and paddlers of such things profit and prosper, we might add. And the current call for ‘fortified rice’ is not about shifting to a different culture of consumption, it’s not about promoting traditional rice varieties or research on the same, perhaps towards improving yields, or about communication campaigns on eating better and on the severe risks of bad food habits. These things need to be talked about.

Back to rice. Good. Not good enough. Back to traditional rice. Better. Much better. Maybe the Government can consider commissioning a communication campaign along these lines. It could be a simple, four-word brief: ‘Back to TRADITIONAL rice.’

AT least 12,417 metric tons of imported rice have arrived in the country, the first batch of importation for the staple food in 2023, according to the Bureau of Plant Industry (BPI).

The BPI also said that the total imported grains in 2022 reached 3.8 million metric tons (MMT).

Based on the report of BPI, as of Jan. 5, 2023, at least 6,500 metric tons of the imported grains came from Thailand and 5,917 metric tons were sourced from Vietnam.

According to the BPI, the fresh rice imports were covered by at least nine sanitary and phytosanitary import clearances (SPSICs).

The BPI added that total rice imports in 2022 reached 3,826,238 MT, more than double the total importation in 2019 of 1.857MMT.

The bulk or 83 percent of the rice importation in 2022 came from Vietnam with 3.178MMT. This was 817,789 MT or 26 percent bigger compared to the 2.4 MMT total imports from Vietnam in 2021.

The country's total importation in 2022 was 1.05MMT or 28 percent bigger compared to the 2.8MMT rice imports in 2021.

Other sources of rice importation last year included Myanmar, 244,738 MT; Pakistan, 198.912 MT; Thailand, 183,230 MT; India, 10,095 MT; China, 9,328 MT; Singapore, 822 MT; Korea, 400 MT, Japan, 303 MT; and Spain, 4.96 MT.

Agriculture Undersecretary Mercedita Sombilla had said the DA expects 2.5 MMT of rice imports in 2023, lower than last year's 3.8 MMT.

Sombilla blamed the typhoons that hit the country in 2022 for the spike in the rice imports.

She added that the BPI was tasked to manage the issuance of SPSICs under the Rice Tariffication Law (RTL).

According to Sombilla, the DA targets 20 million metric tons of local palay production in 2023.

According to Sombilla, a big chunk of the budget for 2023 will be for the subsidy for the farmers.

For his part, Agriculture Assistant Secretary Arnel de Mesa attributed the decline in palay production to the increase in the cost of farm inputs, particularly fertilizer.

• Stockpiles are adequate to meet the needs of welfare programs
• India will likely sell wheat in open market to control prices

India, the world’s biggest rice exporter, is likely to lift restrictions on grain shipments in a move that would mark a further easing of a global wave of food protectionism after Russia’s invasion of Ukraine.

Authorities are actively considering removing curbs on some rice exports as domestic prices are stable, according to a person familiar with the matter. Government stockpiles are adequate to meet the needs of welfare programs, said the person, who asked not to be identified as the information is private.

India accounts for about 40% of the global rice trade. Any relaxation of the export curbs will likely cool benchmark prices in Asia, which are trading near the highest since mid-2021. The move is being discussed as concerns over food inflation have eased. Global food costs ended 2022 roughly where they started despite a year of disruptions from the war in Ukraine and extreme weather.

A spokesperson for the food and commerce ministries declined to comment. 

India imposed a 20% duty on exports of white and brown rice in September, and banned broken rice sales abroad. The curbs, which apply to about 60% of Indian rice exports, came on top of restrictions on wheat and sugar sales. 

Shares of Indian rice producers and exporters surged Tuesday on expectations that any change in shipment rules will potentially boost their sales. KRBL Ltd., one of the biggest shippers, climbed as much as 3.2%. LT Foods Ltd. rose 4%, while Chaman Lal Setia Exports Ltd. jumped 5.4%.

Rising Global Food Protectionism Risks Worsening Inflation

The Rice Exporters Association will call on the government to scrap some limits on exports as domestic supplies have increased following the harvest of monsoon-fed crops. The industry group will seek approval to ship at least 1 million tons of broken rice and request that the 20% tax on white rice exports be removed, according to B.V. Krishna Rao, president of the group.

Increased availability of the grain helped the government to boost its purchases for various welfare programs. The federal agencies have bought 53 million tons of unmilled rice as of Jan. 1 from the 2022-23 crop, an increase of 11% from a year earlier, according to data compiled by the state-run Food Corp. of India.

Officials are also considering selling about 2 million tons of wheat from state reserves in the local market to control prices, according to the person. This may be sold at a fixed price to users including flour mills, the person said.

— With assistance by Andrew Janes and Jason Scott.

Are you in search of a new and flavorful way to add nutrition to your meals? Look no further than Komal rice, a type of aromatic rice that is native to the Assam region of India and widely used in Indian cuisine.

Known for its distinct flavor and fragrance, Komal rice is a popular choice for traditional dishes like biryani and pulao. In this article, we will delve into the various health benefits of Komal rice and how it can be easily incorporated into your daily meals. So, if you want to add some flavor and nutrition to your meals, keep reading to learn more about this rice variety.

Elevate Your Meals with the Soft, Fluffy Texture of Komal Rice.

One of the unique characteristics of Komal rice is that it can be cooked using a method called "soaking." To prepare Komal rice using this method, you simply need to rinse the rice and then soak it in water for a few minutes. After soaking, the rice can be drained and used in a variety of dishes. This method of cooking Komal rice results in a soft, fluffy texture and allows the rice to retain more of its nutrients and flavor compared to other cooking methods.

Komal rice is not just good for your taste buds, but good for the planet too!

What really sets Komal rice apart is its farming methods. Unlike other types of rice that are grown using modern, industrial techniques, Komal rice is often grown using traditional methods that involve natural fertilizers and no chemical pesticides or herbicides. This results in a rice that is more flavorful, nutrient-rich, and better for the environment. And it's not just good for the planet - these traditional methods also help support local communities and economies by providing employment and income for small farmers.

In addition to its delicious taste and versatility in the kitchen, Komal rice is also a healthy choice.

Komal rice is a good source of complex carbs, which provide sustained energy and help regulate blood sugar levels. It is also rich in essential vitamins and minerals, including vitamin B6, iron, and niacin. And with its low fat and cholesterol content, Komal rice is a wise choice for those looking to maintain a balanced diet.

Just like every good thing out there, Komal rice does not come without its challenges.

As mentioned before, the grains of Komal rice are thin and delicate, which can make it difficult to handle and cook. It is also more prone to damage and breakage compared to other types of rice. Additionally, Komal rice is more expensive than many other types of rice, which can be a barrier for some consumers. However, despite these challenges, the end result of cooking Komal rice is well worth the effort.

Did we tell you? Komal rice is not just popular in the Assam but all over the world.

It is also gaining popularity around the world and can be found in many international restaurants. So why not add some global flair to your dinner tonight with a dish featuring Komal rice? Trust us, your taste buds (and the planet) will thank you for choosing this delicious and sustainable option.

Countries in South Asia, including India, Nepal, Sri Lanka, and Bangladesh, have been experiencing a decline in agricultural farm sizes because of increasing population and division of land among family members in successive generations. In particular, landholding has decreased rapidly in the areas that have a high population growth with dense populations. Pakistan is no exception to this.

In Pakistan, the average farm size has steadily declined from 5.3 hectares in 1971 to 3.1 hectares in 2000 and then subsequently to 2.6 hectares in 2010 (Agricultural Census 2010). As a result, the agriculture sector is now dominated by smallholders. Over 90 per cent of farms are smaller than 12 acres, out of which 67pc are below even five acres (two hectares).

The majority of farms have become so small due to successive land divisions that they are no longer economically and operationally viable. Small size is a major limiting factor for increasing labour and land productivity, mechanisation of farms, optimal application of quality farm inputs, and adoption of advanced agricultural practices and technologies.

At the same time, more than 8.2 million farms pose a serious challenge for the government to provide extension services, offer credit facility to all farmers, enhance their effective access to the market and even implement government programmes for farmers, primarily due to the high transaction costs involved. All these challenges translate into higher production costs and, in turn, a lack of competitiveness. As a result, farmers demand farm subsidies, putting additional pressure on the country’s scarce financial resources.

In Pakistan, the average farm size has steadily declined from 5.3 hectares in 1971 to 2.6 hectares in 2010

Interestingly, in East Asian countries like South Korea and Japan, instead of shrinking, farm sizes are increasing. In fact, thriving manufacturing and service sectors have provided lucrative employment opportunities, resulting in labour migration from agriculture to non-agriculture sectors.

Many research studies have explored and proven the inverse relationship between farm size and crop yields. In Pakistan, the solution undeniably lies in consolidating agricultural holdings into somewhat larger and more efficient farms. But the real challenge is to devise and execute effective policy measures. Among the options explored, cooperative farming and corporate farming are often the most cited.

Cooperatives (associations of persons united voluntarily) have been successful in many countries in empowering farmers to pool in multiple lands together, use collective bargaining to buy agricultural inputs and sell their produce, and collectively undertake value addition to attain greater efficiencies. Their success can be gauged from the fact that cooperatives in Europe have over 40pc market share in agri-food supply chains, whereas, in the USA, around 75pc of the country’s milk is marketed by dairy cooperatives.

Due to the peculiar socio-cultural context of our rural areas, particularly in Punjab and Sindh, people do not exhibit an inclination towards working together for common needs and aspirations. Therefore, cooperatives in the agriculture sector could not reap the desired results. In Pakistan, cooperatives often do not hire professional managers. Therefore, when the majority of members lose interest in managing the organisation due to one reason or another, a small group takes control and manages it for their own gains and interests.

Another widely mentioned option is corporate farming (large-scale agriculture by large companies). The arguments in favour include companies’ greater capacity and financial muscle to introduce mechanisation and new technologies, undertake effective marketing of farm produce, develop linkages with national and international value chain players, and improve farm and area infrastructure. All these factors result in higher productivity and competitiveness.

However, the major issue is the availability of large areas of land for prospective companies. In Pakistan, however, millions of acres of land are lying uncultivated in Cholistan, Thal, and other regions, which can be leased to local companies for 10-15 years for development and cultivation under high-efficiency irrigation solutions, ideally suitable for water-scarce areas.

Another option is reverse leasing, which is contrary to the historical rural tenancy system where landlords used to lease out their lands to small farmers for a fixed payment or crop sharing. Companies may get land from small farmers on a long-term lease in lieu of biannual payments or by making them shareholders in the business or/and by providing employment. However, its successful implementation requires intense social mobilisation to educate and coordinate with the farmers.

We should be cautious and circumspect about lessons learned from other countries. For example, Ethiopia encouraged foreign investment and foreign companies to transform its agriculture sector, but this drive led to large-scale land grabbing — partly illegitimate appropriation of lands by corporate investors — that has been largely supported by the government in the name of public interest/public purposes. The whole strategy dispossessed and displaced farmers and forced them to seek jobs either in urban centres or with agribusinesses.

Another point of view, expressed by a significant number of labour market experts, is that the issue of shrinking farm sizes would automatically be resolved without any external intervention by developing export-oriented manufacturing and service sectors.

Alternative sources of income generation in non-agriculture sectors would decrease peoples’ reliance on the land and help reduce the high rates of underemployment and disguised employment, which does not affect aggregate economic output in Pakistan’s agriculture sector. Several countries like China, Bangladesh, and Indonesia have experienced similar structural transformations in their labour markets.

However, along with developing manufacturing and service sectors, two policy measures are essential. Firstly, a special credit facility with low-interest rates is required, enabling small farmers to buy land, available-for-sale, adjacent to their farms or family members’ share of the inheritance.

Secondly, the government must take appropriate measures to reduce the cost and time required for land purchase, leasing in, and leasing out, as land purchase currently entails high transaction costs. Already, Japan and China have successfully implemented such policies aimed at land consolidation.

Published in Dawn, The Business and Finance Weekly, January 9th, 2023

Bangladesh to buy 100,000 tonnes of rice in tenders

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Some buyers favour cheaper Indian variety

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Thai rates rise to $480 a tonne this week

By Brijesh Patel

Jan 5 (Reuters) - Thailand rice export prices rose to their highest since May 2021 this week, helped by a stronger baht and domestic buying, while firm demand kept prices near multi-month highs in other top exporting Asian countries.

Thailand's 5% broken rice <RI-THBKN5-P1> was quoted at $480 per tonne on Thursday, up from $452 to $465 per tonne quoted last week due to the strength of the local currency, traders said.

"There are lots of demand for rice in the domestic market, while exporters continue to buy rice for shipment to Indonesia," a Bangkok-based trader said.

Traders said Indonesia ordered "hundreds of thousands of tonnes of rice" in mid-December.

Meanwhile, Vietnam's 5% broken rice <RI-VNBKN5-P1> was offered at $458 per tonne free-on-board on Thursday, unchanged from last week when they hit the highest since mid-July.

"Trade is slow amid the holiday season," a trader based in Ho Chi Minh City said, adding that some traders were already off for the Lunar New Year holiday.

State media cited the Vietnam Food Association as saying strong demand for Vietnamese rice had supported prices over the recent days, noting that the Philippines, Vietnam's largest buyer, had refrained from raising its rice import tariff to tame inflation.

It said other buyers, including Indonesia and Bangladesh, had also announced their rice purchase plans, without elaborating further.

Bangladesh has approved purchases of 100,000 tonnes of rice in tenders, officials said, as it seeks to build reserves to control domestic prices. The government is also looking to buy rice from India through state-to-state deals.

Top exporter India's 5% broken parboiled variety <RI-INBKN5-P1> remained unchanged from last week at $375 to $382 per tonne - highest since late-November.

"Orders are getting diverted to India from Thailand and Vietnam because of lower prices," said a Mumbai-based dealer with a global trade house. (Reporting by Rajendra Jadhav in Mumbai, Khanh Vu in Hanoi, Panu Wongcha-um in Bangkok and Ruma Paul in Dhaka; Additional reporting by Brijesh Patel; Editing by Subhranshu Sahu)

LAHORE (Web Desk) - The country s rice exports (basmati and non-basmati) have recorded nearly 30 per cent decline in quantity and almost 11pc decline in value during the first five months of fiscal year 2022-23 as compared to the corresponding period of FY2021-22.

Pakistan registered quantity wise 44pc decline in export of basmati rice during the period of July-November 2022 as compared to the corresponding period.

Similarly, non-basmati varieties registered a quantity-wise decline of 12pc and 5pc in value in the same period.

According to the Rice Exporters Association of Pakistan (REAP) the rice export was hit hard owing to a 40pc decline in long grain (non-basmati) crops in Sindh due to unprecedented recent floods, every increasing value of the greenback against the Pak rupee coupled with a huge gap between its value in the interbank against the open market rates.

Likewise, basmati rice which is surplus in Punjab is being hoarded by the stockiest pushing the prices skyrocketing for the commodity.

During the period mentioned above, Pakistan exported 210,184 metric tons of basmati rice (July-November 2022) against the export of 302,771 metric tons in the same period of the corresponding year 2021.

Pakistan exported 1.1 million tons of non-basmati rice during the period July-Nov 2022 against 1.235 million tons in the corresponding period of 2021.

Milled rice export from Cambodia increased by 3.2 percent to 637,004 tons in 2022 compared with 617,069 tons shipped across the world in 2021, according to the Cambodia Rice Federation (CRF). The export of the commodity garnered $414.29 million for the country, the federation said on Tuesday.

The milled rice was exported by 61 Cambodian rice exporters to 59 countries. Of these, China remained the largest buyer of Cambodian rice (288,830 tons) and accounted for 45 percent of the total export for the year.

After China, 25 European countries together bought 221,504 tons or 35 percent of the total milled rice shipped from Cambodia. Four ASEAN (Association of Southeast Asian Nations) member states bought around 10 percent (64,733 tons) of Cambodian rice. And the rest 10 percent (61,937 tons) were delivered to 27 countries, including the United States of America, Australia, Russia, Ukraine, and several African nations, among others.

Among ASEAN member states, Malaysia imported 45, 789 tons, Brunei 14,112 tons, Singapore 3,808 tons and Vietnam 1,024 tons of Cambodian milled rice in 2022

For the country that has set itself a target of exporting one million tons of milled rice from this year onwards, the shipment seems to have reached a plateau. But for 2020 in the last six years when the export touched a new high of 690,829 tons, the shipment figures have been oscillating around 630,000 tons.

While 635,679 tons were exported in 2017, the amount declined to 626,225 tons in 2018. In 2019 when Covid-19 broke out, the total milled rice export figure came down to 620,106 tons, only to record a leap of 70,723 tons of additional shipments in 2020.

In 2021, the shipment from the Southeast Asian nation declined to 617,069 tons, even below the 2019 figure. And this year it is back to a figure which is closer to the 2017 data.

At 277,739 tons, premium aromatic rice of Cambodia led from the front and accounted for 44 percent of the total shipment, according to the CRF data shared with Khmer Times. Over 179,070 tons of fragrant rice (Sen Kra-Ob) were bought by international clients and it accounted for 28 percent of the total export. White rice accounted for 24 percent or 153,428 tons, parboiled rice about 2 percent or 15,781 tons, organic rice less than 2 percent or about 10,963 tons, and glutinous rice 23 tons, said the federation.

The Kingdom also exported 3,477,886 tons of paddy, worth $841.09 million, to the neighbouring country of Vietnam in the year, the CRF release added.

On China being a huge market for the country’s potential agricultural products, Cambodian Minister of Agriculture, Forestry and Fisheries Dith Tina has been quoted by Xinhua as saying that the kingdom hoped to export more to China under the Regional Comprehensive Economic Partnership (RCEP) and the Cambodia-China Free Trade Agreement (CCFTA). “Cambodia and China have solid agricultural cooperation, and we have exported milled rice, mangoes, bananas, and, most recently, longans to China,” he told Xinhua.

In an effort to increase milled rice shipment, the government has sought to open new markets through free-trade agreements, the Comprehensive Economic Partnership Agreements (CEPA), and several memoranda of understanding (MoUs), the CRF, a government-recognised organisation, told Khmer Times earlier.

Agriculture is one of the major contributors to the Cambodian economy. The sector contributed 24.4 percent to the gross domestic product (GDP) in 2021, according to the Ministry of Agriculture. In 2021, production of paddy was 12.2 million tons, which was a rise of 11.6 percent over 2020, it said.

In 2019, agriculture accounted for 31.2 percent of jobs and 20.7 percent of GDP. Rice accounts for around half of the agricultures contribution to the GDP.

The government on Wednesday approved two separate proposals for procuring some 1 lakh metric tons of non-basmati boiled rice through international open tendering from India and Singapore.

The approvals came from the 1st meeting of the Cabinet Committee on Government Purchase (CCGP) in this year held today virtually with Finance Minister AHM Mustafa Kamal in the chair.

Briefing reporters after the meeting virtually, Cabinet Division Additional Secretary Sayeed Mahbub Khan said that the day's CCGP meeting approved a total of four proposals.

He said following a proposal from the Ministry of Food, the Directorate General of Food would procure some 50,000 metric tons of non-Basmati boiled rice from M/S Bagadiya Brothers Pvt Ltd. India under package two under international open tendering method with around Taka 210.36 crore. The price for per ton rice will be $393.19 against the previous per ton price of $443.05.

The Directorate General of Food will also procure some 50,000 metric tons of non-basmati boiled rice from M/S Agrocorp International Pte Ltd Singapore under package three under international open tendering method with around Taka 213.40 crore where the import of per ton rice would cost $397.03 up from the previous per ton price of $393.19.

Besides, Mahbub said following a proposal from the Local Government Division, the joint venture of SMEC International Pte Ltd Australia; ACE Consultants Ltd. Bangladesh; and Development Design Consultants Ltd Bangladesh have been awarded the work for consultants for the package number-SD2 with Taka 33.79 crore under the Dhaka Sanitation Improvement Project of Dhaka WASA.

Apart from these, the CCGP meeting also approved a proposal from the Local Government Division under which the joint venture of Nippon Koei Co. Ltd.; Koei Research and Consulting Co. Ltd.; Nippon Koei Bangladesh Ltd.; Resource Planning and Management Consultants and BETS Consulting Services Ltd have been appointed as the consultants with around Taka 281.73 crore for the Urban Development and City Governance Project.

India must boost value added agri exports, for which there is growing demand, especially in Europe.

India’s rising agricultural exports offers a ray of hope in an otherwise vitiating overall export performance, primarily due to the Russia-Ukraine war, economic sanctions coupled with blockage of financial channels, economic slowdown and disruption of supply-chain(s).

The export of key agriculture commodities rose around 16 per cent in the first half of 2022-23 (April-September) over the corresponding year-ago period. This is good news as agriculture is not only the backbone of the Indian economy but is also the main source of livelihood for more than half the population.

Agri-export income often brings relief when other sectors of the rural economy face stress. In celebrating the performance of farm exports, it is important also to ensure that they are sustainable.

India’s agri-export strategy is based on “produce and sell” mentality — also known as commodity trading. However, it is time to shift from ‘commodity export’ to ‘product exports’. Firms that are into agri exports should evaluate what consumers want and, accordingly, leverage the value-addition programme in their commodities. For instance, rather than exporting rice in bulk, the focus should be on creating smaller but targeted products segments such as rice flour which is in high demand in Europe, especially the southern part where it is widely used to produce pasta, crisps, cereals and snacks.

Similarly, rice starch is required by the pharmaceutical industry, and is also used as a thickener in sauces and desserts. Rice sweetener is again a value-added product and is used in sugar syrups and honey.

Some aromatic varieties of Basmati rice are imported by breweries in Europe, especially by some prized beer manufacturers. Likewise, rice bran is in high demand as it is rich in Vitamin B6, iron and magnesium, and utilised in cereals, mixes, and vitamin concentrates.

Also, rice bran oil can be promoted as a treatment for decreasing blood cholesterol. Broken rice, rather than being exported in bulk to western African markets, can be alternatively marketed as rice flour and as a mixture for pet foods. There can be various other value-added ‘ready-to-eat’ products manufactured from rice.

As the international market for value-added products is constantly growing, it is time India moved faster towards export of agri products. The evolving marketplace and market forces offer a plethora of business opportunities in product differentiation and, influenced by rising customer demand for health, nutrition and convenience foods as well as productivity improvements by food processors.

While the shift to a product-driven export strategy will take time, it will eventually help absorb the shocks from domestic as well as the global markets arising out of problems related to stocking, fair and remunerative prices to farmer, distress sale, shelf-life issues, and food losses and waste. The agro-producers must look to cater to the needs of end-users. For example, bovine producers should focus on table-ready meat.

India’s 350-450 million strong middle-class is already shifting towards value-added products, courtesy urbanisation, affordability, nuclear families and constraint of time for cooking, especially for working professionals. Value-addition in agriculture can achieved by taking the following steps.

Measures ahead

First, by innovation, which in turn focuses on enhancing current processes, procedures, products and services or developing new ones, which can be used to add value to agri-products. Successful value-added products are generally specialised/technical and sell in markets which have low competition.

It is time to leverage policy interventions and bring in operational changes, including training and hand-holding of producers, for creating a business ecosystem for agri product exports. Value-addition can be achieved by promoting the industrial use of food products but only where we have non-utilisable surplus. Resultantly, the traditional crops can be turned into non-food goods using a number of inventive and innovative technologies — bio-diesel is a case in point.

Second, coordination, especially between producers and marketers of agricultural products, must be improved. Considering India’s small landholdings, horizontal coordination that aims to pool or consolidate people or enterprises from the same level of the food chain is one solution. For example, while focussing on vertical coordination to aggregate milk, vegetables produce or fruits, there is need to look at horizontal coordination which includes contract-farming, contractual sourcing, production sharing agreements.

Finally, India’s agriculture export policy has been vacillating between export bans/restrictions and minimum export price on one side and free trade on the other. This approach needs to be reviewed.

An abrupt ban on export of a commodity sends wrong signals to the global markets. A predictable and transparent agriculture export policy is the need of the hour to make India a reliable global supplier of value added agriculture products, which will certainly contribute to the goal of doubling farmers’ income.

Ram is a Professor at Indian Institute of Foreign Trade, New Delhi, and Surendar is an Associate Professor at FORE School of Management, New Delhi. Views are personal

India’s 350-450 million strong middle-class is shifting towards value-added products, courtesy urbanisation, affordability and nuclear families.

WASHINGTON, DC, US — US agricultural exports in fiscal year 2023 are projected at $190 billion, down $3.5 billion from the August forecast, according to the Economic Research Service of the US Department of Agriculture. This decrease primarily is driven by reductions in soybeans, cotton, and corn exports that are partially offset by gains in beef, poultry, and wheat, the ERS said.

The report said soybean exports are forecast down $2.4 billion, to $32.8 billion, due to smaller production and increased competition from South America. Cotton exports are forecast down $1 billion, to $6 billion, based on lower unit values and subdued demand. Grain and feed exports are projected to decrease by $300 million, to $46.2 billion, with declines in corn, sorghum, and rice exports partially offset by higher exports of wheat and feeds and fodders.

The forecast for corn is down $600 million, to $18.5 billion, on lower volumes. Livestock, poultry, and dairy exports are forecast to increase by $300 million, to $41.4 billion, as increases in beef, poultry, and variety meat exports more than offset declines in pork and the value of dairy exports. Beef exports are up $500 million, to $10.3 billion, driven by higher prices. Ethanol exports are unchanged at $4.2 billion from the August forecast and remain a record if realized.

The ERS noted that agricultural exports to China are forecast at $34 billion, down $2 billion from the August projection, due to lower export prospects for soybeans, cotton, sorghum, and pork. China is expected to remain the largest market for US agricultural exports.

US agricultural imports in 2023 are forecast at $199 billion, up $2 billion from the August forecast, largely driven by higher imports of horticultural products, sugar and tropical products, and grain and feed products. A strong dollar, while a headwind to the export forecast, is partially responsible for the higher import demand, the ERS said.

As per Birgunj Customs, Rs5.25 billion worth of Indian paddy entered Nepal between November 21 and December 30.

Farmer Hirai Yadav of Jighaul, Siraha has been waiting for hours to sell his paddy at the depot of Food Management and Trading Company, the state-owned company tasked with buying farmers' crops.

“Farmers like us suffer all the time,” said Yadav.

Nepali farmers endured a chemical fertiliser shortage during the paddy transplantation period in June. They began harvesting their crops in November, and now they are facing another hardship—selling them.

While farmers like Yadav are standing in long queues outside the Lahan depot of Food Management and Trading Company to sell their paddy, convoys of paddy-laden trucks from India are entering Nepal through the Birgunj border point.

“The price we get for our paddy hardly covers our investment. Moreover, the government doesn’t buy our crops on time,” said Yadav.

On November 3, the government raised the minimum support price (MSP) for paddy by 8 percent for this fiscal year. The floor price for common paddy is now Rs3,128 per quintal, and the floor price for mota dhan is Rs2,967 per quintal.

The MSP is the lowest legal price that can be paid for farmers’ harvests. The government does not fix the floor price for fine paddy.

Nearly a month after farmers had harvested their crops and the government had fixed the MSP, Food Management and Trading Company finally issued a paddy purchase notice in Siraha, Madhesh province.

Since then, paddy growers have been waiting in long queues with their paddy-laden tractors outside the depot. On Sunday, the line stretched for 3 km.

The company has set the purchase price for sona mansuli at Rs31.28 per kg. The price of katarni, a fine grain variety, has been fixed at Rs38 per kg.

Raban Kumar Yadav, chief of the company in Lahan, said they would buy 1,500 tonnes of paddy this year as per the quota determined by the head office in Kathmandu.

“The process of buying paddy was delayed this year because the headquarters did not issue the purchase notice on time,” said Yadav. “In the past, the paddy buying process would begin in November.”

Farmers from Siraha, Saptari and Udayapur districts sell their paddy at the Lahan branch.

Despite the long line of farmers waiting to sell their paddy, officials say they may not be able to buy from everybody because they have to stick to the quota. They fear the farmers will launch protests if they are unable to sell their crops.

Farmers complain that middlemen are taking advantage of the situation.

Nepali farmers are expected to harvest 5.48 million tonnes of paddy this fiscal year, which is 7 percent more than last year, despite a crippling shortage of chemical fertiliser during the key transplantation period in the monsoon.

The paddy harvest will produce around 3.52 million tonnes of rice after milling. Nepal requires 4 million tonnes of rice annually to feed its population, and there could be a deficit of 480,000 tonnes this fiscal year, the Agriculture Ministry said on Thursday. The shortfall is normally met by imports from India.

Farmers complained that the company’s policy to purchase only up to 5 tonnes of paddy in the harvest season was not justifiable.Farmers from Siraha, Saptari and Udayapur districts sell their paddy at the Lahan branch. Post Photo: Bharat Jargha Magar

Khushi Lal Shah, a farmer from Madhopur, Siraha, said he had become frustrated waiting in the long queue.

According to the company, it will take at least a week to finish buying paddy from the farmers.

The Birgunj Customs Office said 151,907 tonnes of imported paddy worth Rs5.25 billion entered Nepal between November 21 and December 30, up 28 percent from the previous year.

The government collected Rs264.2 million in taxes from the imports.

“The import of paddy has increased steeply since mid-December,” said Jitendra Rasaili, operation in-charge of the Nepal Intermodal Transport Development Board in Birgunj, which operates the integrated check post.

“Around 125 to 150 trucks loaded with paddy have been entering the country every day.”

The Indian government has approved Birgunj, Bhairahawa and Kakarbhitta border points for importing paddy. A large portion of the imported paddy comes from Bihar, Uttar Pradesh and West Bengal states of India.

“Paddy and rice shipments commenced right after the Indian government permitted their export,” said Dhan Bahadur Baruwal, chief customs officer in Birgunj. “Traders might have been importing more than the usual amount to stock up in case the Indian government halts exports once again.”

In September 2022, India, the world’s largest exporter of rice, banned shipments of broken rice and imposed a 20 percent export duty on various types of rice, except parboiled and basmati rice.

The southern neighbour initiated the move to boost supplies and calm prices after below-average monsoon rains curtailed planting.

The repercussions were immediately felt in Nepal. Local retailers say the price of imported long grain and fine rice saw the single largest jump of Rs10 per kg.

Market insiders say the rise in the price of rice would affect all, particularly the poor.

India relaxed the restrictions in November, permitting the export of 600,000 tonnes of unmilled rice to Nepal. The Indian government said in a notice that it would allow exports to Nepal as it has traditionally relied on India to fulfil its food grain requirement.

“The government levies only a 5 percent agriculture improvement tax on paddy imports,” Baruwal added.

Subodh Kumar Gupta, president of the Birgunj Chamber of Commerce and Industries, said that the Indian government has allowed the export of 600,000 tonnes of rice and paddy to Nepal this season.

“The quota in the preceding year was 550,000 tonnes,” said Gupta, who is also president of the Association of Nepalese Rice, Oil and Pulses Industry. “The price of the rice might not increase this year as traders have been able to import sufficient quantities of paddy on time,” he added. 

The government is going to procure 1 lakh tonnes of non-basmati rice to bolster the supply chain of the country’s main staple food against the backdrop of high inflation.

Two suppliers — one each from India and Singapore —have been selected by the food ministry through international tenders for supplying the amount of rice equally – 50,000 tonnes from per supplier – at a total estimated cost of Tk 423 crore, said the food ministry officials.

They said that the food ministry had submitted proposals to the cabinet committee on government purchases in the past week seeking approval to give import order to the suppliers.

The cabinet committee chaired by finance minister AHM Mustafa Kamal is likely to review the food ministry proposals in a meeting today.      

The food ministry selected Indian company Bagadiya Brothers Private Limited as it quoted lowest $393.19 for per tonne in an international tender participated by a total of four suppliers.

In another international tender, Singapore-based Agrocrop International Private Limited quoted lowest $397.03 for per tonne rice among three bidders to be selected by the food ministry.

The rice procurement is a part of the government initiative to collect 30 lakh tonnes of rice for the current financial year ending in July this year.

Of the overall collection target, one third will be imported while the rest from local rice growers.

According to the ministry officials, they have already struck deals on the government-to-government basis to import 7.3 lakh tonnes of rice.

They said that the rest of the amount would be imported through competitive bidding. Bangladesh’s rice import stood at 9.87 lakh tonnes in FY22.

Rice from the Indian company would cost Tk 42.07 per kilogramme and Tk 210 crore would be required for the total consignment while that from Singapore Tk 42.68 per kg and Tk 213 crore for the total consignment, said the food ministry officials.

One kilogramme coarse variety of rice was selling at Tk 46 to Tk 52, according to the Trading Corporation of Bangladesh’s daily update on retail market prices of essentials on Tuesday.

Despite claims by the government that the country has surplus amount of rice, the prices of the staple had been increasing unusually since 2020 pushing fixed-income people into difficulties.

Volatilities in price of rice and other essentials kept the inflation close to double digits over the past six months.

Against the backdrop of unusual hike in rice prices, the government slashed the rice import duty but prices continued to rise.

On Saturday, the Bangladesh Rice Research Institute revealed a study report blaming millers and big corporations for destabilisation of the rice market.

‘Millers make a profit of at least Tk 8 to Tk 14 on the sale of per kilogramme of rice,’ said BRRI director general Md Shahjahan Kabir while sharing the study findings in Gazipur.

On June 1, 2022, food minister Sadhan Chandra Majumder blamed Square Group, Pran Group, City Group, Akij Group, Bashundhara Group and ACI Group for the price hike of rice during the harvesting period.

The staple of so many countries may also be the dirtiest of crops

Methane is the most potent greenhouse gas, silently baking the planet and responsible for around 30% of global temperatures. Enormous quantities are pouring out of farms, landfills, and fossil fuel infrastructure. Rice paddies are a significant source of methane emissions from agriculture. Rice makes up 12% of global methane emissions and accounts for a staggering 2.5% of all GHG emissions, due to its anaerobic decomposition during its production processes. 

Rice feeds the world's population daily, but the less-known fact is that rice is one of the key contributors to global warming and a victim of climate change as well. That's why 48% of the countries included rice in their agricultural nationally determined contributions (NDCs) strategy to tackle climate change effectively. 

And so, the question arises: Can we produce rice in a better way? 

Rice is a vital crop that feeds 3.5 billion people worldwide. It provides 20% of the world's calories, a staple of kitchens in various countries. It was domesticated and fed hungry civilizations on three continents across Asia, Africa, and South America for thousands of years. 

Crops grow better in wet soil than dry soil, and once farmers found that flooding the fields killed the weeds, but the rice survived, rice fields were kept inundated for months. 

When bacteria in the soil break down dead plants, they usually release carbon dioxide. But in a flooded field where air can't get in, there's less oxygen to react with the carbon in the organic waste. That encourages the growth of bacteria that make a gas called methane instead. Methane doesn't last as long in the air as CO2, but it heats the planet 80 times more over a 20-year period. 

Furthermore, the nitrogen in the fertilizer means paddies spew out nitrous oxide, which is 270 times more potent than CO2. At emissions per kilogram, rice is not as bad as the same amount of eggs, cheese, or meat, but it's worse than other carbs. With total emissions, it's an entirely different story. We eat so much rice that it heats the planet more than everything but the cattle industry. Fixing the rice production process could save a ton of pollution. 

The obvious solution is to drain fields, so bacteria don't make more methane. Across East Asia, farmers have drained their paddies in the middle of the growing season to save water. As water has grown even scarcer, others are piloting alternative techniques like “alternate wetting and drying water management”, which doesn't remove all flooding, but could reduce 30 percent of water use and cut GHG emissions by 90 percent, while boosting yield. 

In principle, it's a simple technology and requires no special machinery. This simple trick has halved methane emissions on some farms and saved increasingly scarce water. 

Intermittent flooding is significant for growing crops efficiently and reducing emissions. Still, the rigid policies and reluctance of farmers are the primary reasons it isn't happening. In Bangladesh, a recent study found that alternate wetting and drying have failed to take off because farmers don't receive either economic incentives to reduce or suffer no penalty to increase water use. They see little benefit from using less because they receive free water or subsidized electricity which allows pumping water from deep in the ground. 

The second problem is nitrogen. Fields where the water content varies over the season, produce more nitrous oxide. Wetting and drying create cracks in the soil that let in oxygen, which reacts with nitrogen to form nitrous oxide. Using less fertilizer can help avoid this, but scientists are still trying to work out how to stop it entirely. 

The third problem is the yield if the soil gets too dry. One review found that yields fell 5% in fields repeatedly drained and flooded. This can be life-changing for farmers. A simple way to fix this is by sparingly wetting and drying fields. 

The hundreds of millions of tons of farm waste is another issue. How farmers usually deal with it is toxic for people and the planet. There are only a few valuable things to do with rice straw, like turning it into animal feed. Innovation is needed to produce bio-energy or valuable products such as organic fertilizer that can be used on the farm itself. 

Changing people's behaviour is tough, and few governments even seem to be trying. A more radical idea to grow less rice is to swap it for cleaner and sturdier crops, like potatoes. This might sound absurd, but there are reasons governments in Asia might want to encourage other crops. In 2015 China launched a national strategy to make potatoes a staple crop to improve the country's food security and cut GHG emissions. 

Methane is way more substantial in the short term. If we can reduce methane emissions by about 45% in the next 10 years, we can shave off almost 0.3C of warming during the next 2-3 decades. To make the global food system more secure in the face of increasingly extreme weather, we need to work out an efficient and sustainable rice production system to keep the planet from heating, save dwindling water supplies, and cut air pollution. 

Unlike meat or dairy, there's no big rice industry lobbying against change and holding back progress. The challenge instead is to change the habits and traditions of farmers worldwide -- who can afford neither lower yields nor more extreme weather. Governments must put policies in the right direction and shift incentives, and invest into growing our crops as a nation more effectively and efficiently. Because climate change is affecting everything, mitigation of agricultural GHG should be our priority.

The Philippine Center for Postharvest Development and Mechanization said it will focus on providing rice millers and other postharvest facilities to farmer-beneficiaries during the remaining years of the rice competitiveness enhancement fund (RCEF).

PhilMech said it will fast-track the distribution of rice processing systems (RPS) to improve the rice sector’s productivity as part of its mandate under the rice trade liberalization (RTL) law.

“As of the end of 2022, PhilMech has completed a total of seven RPS, and has set the construction of another 17 RPS. Remaining targets are set for post-qualification and rebidding activities,” the attached agency of the Department of Agriculture said in a statement.

PhilMech said the remaining three years of the RCEF mechanization component would be focused on the distribution of RPS to reduce postharvest losses in the rice sector.

The agency noted that the first three years of the RCEF mechanization component focused on the distribution of production and harvesting technologies, such as tractors, tillers, transplanters and combined harvesters, among others.

“The next three years of the RCEF-Mechanization Program, or from 2022 to 2024, should be focused on the distribution of postharvest technologies for drying and milling palay (unmilled rice) also to qualified farmers’ organization and LGUs [local government units],” PhilMech’s Supervising Science Research Specialist at the Facility Management and Field Operations Division Engr. May Ville B. Castro said.

“This will make the rice farmers actively participate in the rice value chain,  enabling them to sell milled rice at the wholesale or retail level.”

PhilMech said it has three types of RPS under its mechanization programs that vary depending on the capacity of the rice mills.

The RPS-1 is a multi-pass rice mill with a capacity of 1.5 metric tons per hour and two units of recirculating dryer with a capacity of 6 metric tons, which is worth P17.5 million.

The P61.7-million RPS 2, meanwhile, has a 2- to 3-metric ton per hour capacity with two units of recirculating dryer with a capacity of 12 metric tons.

Lastly, the RPS 3 has a capacity of 4 to 5 metric tons per hour with two units of recirculating dryer with a capacity of 12 metric tons. It costs about P72.6 million.

“To date, seven sets of RPS 1 were already delivered and installed. Another  15 sets of RPS 1 and two sets of RPS 2 are due for delivery and construction,” PhilMech said.

“Post-qualification of 14 sets of RPS 2 and five sets of RPS 3 are ongoing. And lastly, for rebidding are 24 sets of RPS 1 and four units of RPS 2.”

Under the RTL law or Republic Act 11203, the annual guaranteed P10-billion RCEF program was created which would run for six years from 2019 to 2024. Under the law, half of the RCEF funds or P5 billion will be directly managed by the PhilMech for the distribution of free machinery to eligible rice farmers and cooperative-beneficiaries.

As groundwater dries up and rainfall becomes scarce, rice farmers in north-west Bangladesh find new hope in vegetables

For decades, Shafiqul Islam Babu grew rice on his land in north-west Bangladesh — until climate change made rainfall more erratic and overused groundwater began drying up in the mid-2000s.

As his rice harvest declined, so did his earnings.

In response, the 45-year-old farmer decided to grow cabbage — a high-value crop that uses less water than rice, has plenty of buyers, and provides him with a steady income.

"I didn't know what to do instead of paddy farming, which was my ancestor's profession, [and] I had to maintain my family with my savings," he said in an interview, cleaning weeds and dead leaves from his 20-hectare cabbage farm.

"Then, vegetable farming showed me a ray of hope."

Mr Babu said he sold his entire cabbage crop ahead of harvest this year, with demand for the vegetable high in Dhaka, the capital.

He managed to make about 215,000 taka ($3,063), up from the 80,000-odd taka (around $1,139) he used to receive for his rice harvest.

Accelerating climate change impacts have led many farmers in Bangladesh's Rajshahi district to swap rice for vegetables as they strive to make their business pay on an ever-hotter planet.

Eight years ago, rice was the region's main crop – but now it is the "loser crop", with vegetables from cabbage to gourds increasingly favoured.

They need less water, produce higher yields and bring in more money, according to Shamsul Wadud, head of the district's Department of Agricultural Extension.

Farmers in Rajshahi used to struggle to grow rice for two seasons a year, but many are now cultivating vegetables three or four times annually on the same land, Mr Wadud explained.

"They are getting good prices [and] the production of vegetable crops has now increased many times," he said.

Since 2009, the area of land dedicated to growing vegetables has almost quadrupled to about 78,500 hectares in Rajshahi, making it the nation's largest vegetable-producing district, agriculture ministry figures show.

But Rajshahi is not the only area looking beyond rice.

Bangladesh's agriculture minister Muhammad Abdur Razzaque said the government was aiming to use "all kinds of abandoned and sandy land" to expand vegetable production.

Sandy soil is considered superior for growing vegetables rather than rice because it requires less water and fertiliser, officials said.

Rainfall decreasing 'day by day'

While some parts of Bangladesh have been experiencing record-breaking monsoon rains and flooding, drought has becomes increasingly common in the Barind region, which covers most of Rajshahi and some of Rangpur district.

The area's annual average rainfall has fallen to about 1,100mm, less than half the nationwide average, said Chowdhury Sarwar Jahan, a geology professor at the University of Rajshahi.

And, due to accelerating climate change, average rainfall in the Barind region has been "going down day by day", he said.

Because there has been so little rain, farmers in the region rely on deep wells to get water to irrigate their crops, putting intense pressure on groundwater supplies, Mr Sarwar Jahan added.

Groundwater levels in Barind are dropping by 50 to 60cm every year, according to the Bangladesh Water Development Board.

This spurred some farmers in Rajshahi in the late-2000s to try growing cabbage and pointed gourd — which is similar to cucumber — on land where they had given up on rice, according to Dewan Ali, 55, a farmer living in the village of Godagari.

"A few months later, they were surprised to see that with less water and less fertiliser they were getting a good harvest," said Mr Ali.

"This good news was flying all over. Within two years, most of the farmers started to farm different types of vegetables."

The Bangladesh Rice Research Institute (BRRI) estimated certain vegetables — including tomatoes, okra and radishes — could be grown using about 336 litres of water per kilogram, nearly 10 times less than it would take to grow the same amount of rice.

Boosting vegetable production has become a priority for the Department of Agricultural Extension in Rajshahi,

The department has been training farmers in everything from how to use fertilisers to controlling disease.

It has also given them seeds free of cost, working to raise awareness to encourage more to make the switch, according to Mr Wadud.

He said the Rajshahi government was only focusing on areas where farmers were struggling to grow rice, so there was no danger of the shift to vegetables affecting overall paddy production.

"An adequate amount of paddy [rice] is grown in other parts of the country," Mr Wadud added.

Growing hope among farmers

While many farmers say their livelihoods have been saved by the discovery that vegetables can thrive on parched land, those abundant harvests can sometimes prove too much of a good thing.

In particularly productive seasons, oversupply drives down the prices farmers can charge for their produce, while storage is also an issue, said Hossain Ali, a farmer in the Godagari area of Rajshahi.

When farmers grow more rice than they can sell, it can be dried and stored easily for six months, he said, but surplus vegetables quickly rot unless they are kept refrigerated.

"If the government builds cold storage, we can preserve (vegetables) and in the off-season we can sell them at a good price," said Mr Ali, who had 30 hectares of land growing various vegetables including cauliflower and tomatoes.

However, for farmer Mohammed Ali, the challenges of growing vegetables are far outweighed by the benefits for his family.

After spending 10 years in Saudi Arabia as a construction worker to send money home, Mr Ali returned in 2010 to Rajshahi to farm rice.

But water shortages forced him to quit, and he instead opened a small grocery store beside his house.

Then, a visit to relatives in the region changed Mr Ali's life. He was amazed to see their land full of plump vegetables.

"I found some hope," said the husband and father of two, who lived in Lalpur, in the region's Natore district.

Mr Ali planted bitter gourd and pointed gourd as soon as he got home, and said he sold his first harvest two months later.

Now, he can make 28,000 taka ($398) each month on just one acre of land – with no need to consider leaving home to find work.

"I don't think about going abroad because I can earn a healthy amount by staying at home," Mr Ali said.

"Nothing could be better than earning money and being with family."

Basmati is the most popular speciality rice in the UK, adding extra flavour and subtlety to everything from curries to pilafs to kedgerees. Nearly three-quarters of the world’s basmati is produced in India, and the UK buys 3% of it – plus substantial amounts from the second-largest producer, Pakistan.

All has not been well with this delicious staple, however. A huge number of newly cultivated varieties have been permitted in the UK and EU since 2017, and some have turned out to be sub-standard, lacking the unique popcorn-like fragrance that helps to make this rice so sought after.

New rules are being introduced at the beginning of 2023 that aim to take these lesser varieties of basmati off the market. So will this solve the problem?

Basmati and the code of practice

Basmati rice has been cultivated for thousands of years in the fertile alluvial plains between the Indus and Ganges rivers. To qualify as basmati, grains must meet certain standards related to things like fragrance, grain length and width, as well as cooked texture. They must also have a mid-range level of amylose, a part of the starch in rice.

Fraudsters nevertheless became notorious for cutting basmati with lesser rice grains, drawn by the fact that it is up to 50% more expensive per kilo. Several decades ago, it wasn’t uncommon for imported basmati to be more than 50% impure.

To get around this problem, the UK Rice Association introduced a code of practice in 2005. Also followed across the EU, the code specified that basmati could be no more than 7% impure, as well as introducing a list of 15 permitted varieties: nine traditional ones that could be imported duty free and a further six that were modern cultivars. We at Bangor University devised the system of DNA fingerprinting that is used to enforce the code and has sometimes led to prosecutions for infringements.

The system worked well until 2017, when the code was updated to add 25 new modern cultivars. This followed an explosion in new breeding in the 2000s and 2010s to address the problem that traditional basmati varieties are tall, low-yielding plants which fall over if they are fed with too much fertiliser. Breeders overcame this by using crossing and selection to add the so-called “green revolution” semi-dwarfing gene, which is also bred into most other modern rice varieties.

India and Pakistan had successfully persuaded the UK and EU that these 25 new varieties were as high in quality as the existing 16, but several years later we were able to show that this wasn’t entirely right.

By developing alternative DNA markers for fingerprinting, we showed that six of the new varieties – five from India and one from Pakistan – had not been properly bred for fragrance. Some did not even contain the version of the BADH2 gene that makes basmati fragrance possible in the first place. Although India and Pakistan have rigorous systems for testing rice quality, they don’t necessarily do the gene testing that would have picked up the problem.

The future

The Rice Association has responded to this discovery by publishing a new code of practice that removes the six varieties from the permitted list. Coming into force on January 1, the code also adds five new varieties that do pass muster. As a result, consumers should once again be able to buy basmati rice in the knowledge that it is of the highest possible quality.

But this isn’t the end of the story. For one thing, the 7% impurity rule remains. I have long argued that the Rice Association should adopt the same 1% rule that applies in many products – non-GM foods, for example. There’s no real reason for the basmati exception, and it is also arguably easier to enforce a 1% rule because of the way that DNA testing works.

Secondly, rice breeding is not standing still. Breeders have started focusing on making crosses to allow basmati varieties to inherit genes that will mean they need less fertiliser, resist disease so they need fewer or no pesticides, and even withstand drier growing conditions or salt-contaminated soils.

These varieties aren’t quite ready to hit the market but are urgently needed to increase the sustainability of rice production. But if such varieties are to be sold labelled “basmati”, they too will have to be monitored to ensure they meet the same high standards that consumers expect. The same goes for varieties created by gene editing, which have not yet started emerging but probably will do over the next couple of decades.

If we don’t maintain today’s standards, it may harm the industry – and crucially the farmers who work so hard to produce this beautiful rice in the first place. It’s an interesting case study of how cutting-edge technology and the right regulation can ensure that an ancient industry remains fit for purpose in the 21st century.

Katherine Steele, Senior Lecturer in Sustainable Crop Production, Bangor University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Non-NFSA card-holders too stand to gain; district Collectors directed to take steps for smooth distribution of rice through PDS to beneficiaries of Antyodaya Anna Yojana and Priority Household persons

The Government of Andhra Pradesh is providing rice to the beneficiaries covered under the National Food Security Act (NFSA) and also to the non-NFSA card- holders free of cost with effect from January 1, 2023.

This follows the decision of the Central government to supply free food grains to all NFSA beneficiaries such as Antyodaya Anna Yojana (AAY) and Priority Household (PHH) persons for one year, from January 1 to December 31, 2023.

Relevant guidelines have been issued by the Ministry of Consumer Affairs, Food and Public Distribution.

The Centre has also decided to distribute rice on non-NFSA cards too free of cost, according to a press release by Civil Supplies Commissioner H. Arun Kumar.

He has instructed the District Collectors to take steps for the smooth distribution of free rice under the Public Distribution System (PDS) to the PHH and AAY households from January 1.

The Collectors have also been told to distribute red gram and sugar as per the existing subsidised prices and scales, and sensitise the fair price (FP) shop dealers, card-holders and field functionaries about free rice distribution and to display the information on notice boards at prominent places at the FP shops, indicating the scale and rates of commodities (duly showing the rate of rice as zero).

Customers can lodge complaints, if any, through the call centre number 1967, or toll-free number 18004250082, to get their grievances redressed.

Criminal action warned

Mr. Arun Kumar says that criminal action will be taken and penalties imposed as per the A.P. State Targeted Public Distribution System (Control) Order, 2018, if any rice cardholder / others resort to resale / purchase of the commodities drawn under PDS either from card-holders or from the FP shop dealers, any middleman or other source with the collusion of FP shop dealers and others involved in the PDS supply chain.

Threaten to stop production if missing trailers not recovered

Irked by the alleged stealing of containers and trucks, shipping rice from the mills, the Sindh Rice Millers Association has warned of suspending rice production if the theft incidents are not stopped.

At a press conference at the Hyderabad Press Club on Thursday, the association’s Farooq Ahmed and Dr Chetan Samrani said that three trucks filled with rice went missing during the last month.

According to them, they registered FIRs in the police stations in Karachi and Jamshoro districts. Still, only one of the stolen consignments has been recovered from Tando Muhammad Khan district. They alleged that police and a gang of criminals and truck mafia are involved in the theft. The stolen consignments were worth tens of millions of rupees.

“The trailers transporting rice are being stolen in an organised way,” said Ahmed, denying that the recent theft incidents appeared random. He said that the trailers leave mills but do not reach their destinations and the companies operating those vehicles react indifferently to such incidents. “The owners and drivers of trawler trucks living in Karachi are responsible for these incidents,” he alleged. He informed that when the police take action against those truckers, they and their families, including children and women, take to the streets in protest.

The office bearers apprised that the mills employ thousands of workers, and if they closed the mills, the bread and butter of the labourers would be affected. The consignments still missing belong to Qalandari rice mill, Hyderabad, and Shah Bhitai rice mill, Sujawal.

TEMPO.CO, Jakarta - The chairman of the Indonesian Chamber of Commerce and Industry, or Kadin, said that the country needs to be aware of the impact of disparities in the exorbitant price of rice. He referred to a World Bank report entitled 'Indonesia Economic Prospect' which stated that the cost of Indonesian rice was the most expensive compared to countries in the Southeast Asian region.

According to Arsjad, if the difference between domestic and foreign prices is too large, there will be a tendency for imported rice to be cheaper. As a result, the desire to import rice from abroad is very high and it could threaten local farmers.

"This condition can pose a threat to farmers," he said in a written statement, quoted on Friday, December 30, 2022.

The government has assigned the Indonesian Bureau of Logistics (Bulog) to import as many as 200,000 tons of rice by the end of 2022 to fulfill the government's reserve stock of rice or CBP. According to Arsjad, the impact of the price disparity was triggered by the import policy on rice that occurred when Bulog reported that CBP stocks had shrunk from 1 million tons in early 2022 to 587,000 tons in November 2022.

Arsjad stated that Bulog should replenish the rice stock by increasing it to a safe level of around 1.5 million tons as they have to intervene in the market during the famine season, which is three to four months ahead, and anticipate the need for natural disasters. Bulog is trying to obtain rice stock from the domestic market but is having difficulty acquiring it, even though the benchmark price regulations have been eased.

Therefore, the government decided the option to import rice. "This is the source of disagreement between Bulog and the National Food Agency and the Ministry of Agriculture," he said. 

In fact, Arsjad went on, Indonesia had achieved rice self-sufficiency in the 2019-2021 period. The current period only imported special rice, a type of rice that didn't grow in Indonesia. This special rice is generally intended for hotels, restaurants, and catering businesses. Based on data from the Central Statistics Agency, Indonesia imported special rice that reached 407,700 tons in 2021, an increase from 2020 which was only 356,300 tons.

The high price of rice would not lead to polemics and change the government's focus on maintaining food security, Arsjad warned. Today is a very important time to reinforce food security, considering there is a potential for a global crisis due to the continuous war between Russia and Ukraine.

He added that in the long term, the Indonesian government needs to encourage investment in agricultural research and development. It also must be added with counseling and development of agricultural human resources to increase farmer productivity.

Indian rice export prices extended gains this week on robust demand, while those in Vietnam hit more than five-month highs as China’s move to ease coronavirus restrictions is expected to boost shipments from the country.

Top exporter India’s 5% broken parboiled variety was quoted at $375 to $382 per tonne, up from the last week’s $374 to $380 range. Gains were however curbed by rising supplies from new-season crops.

B.V. Krishna Rao, president of the Rice Exporters Association, said export demand for parboiled rice is better than for white rice, adding that Indian prices are very competitive.

Vietnam’s 5% broken rice was offered at $458 per tonne free on board on Thursday, the highest since mid July, from $448-$453 a week ago.

According to traders, Vietnam is likely to benefit from China’s move to ease its coronavirus restrictions, which could boost shipments of the staple to the country.

Rice exports from Vietnam in 2022 are estimated to have risen 15.7% to 7.22 million tonnes, according to government data released on Thursday.

December rice exports from Vietnam are estimated at 550,000 tonnes, valued at $283 million.

Asia rice: More exports, stronger baht send Thai rates to over 6-month high

Meanwhile, Thailand’s 5% broken rice prices were quoted at $452-$465 per tonne on Thursday, a 2022 high, versus last week’s $452-$460 range. The peak in export prices was due to the strong baht, one trader said.

A Bangkok-based trader said however that price movement was muted overall as farmers and mills reduced activity for the holidays, while noting that supply would not be an issue to meet new demand.

He highlighted that when prices are on an upwards trajectory, millers would buy more to stock up in anticipation of higher prices in future.

“Exports next year should be better, the market will do better,” he said, adding that shipments were being made to Indonesia.

Cotton production falls 70% due to whitefly, pink bollworm attack

Chandigarh, December 29

If there is one area where Punjab’s Aam Aadmi Party has taken baby steps to make a difference, it is in the state’s traditional agricultural practices. Their agenda is clear — to save the state’s depleting groundwater while ensuring a thriving agrarian economy.

It is another thing that the initial changes in agriculture policy, announced almost immediately after the Aam Aadmi Party came to power — giving a push to the summer moong cultivation and using direct seeding technique for rice by incentivising it — seem to not have been much thought over. Little wonder that the moong cultivation in areas that traditionally grow cotton led to whitefly attack on the cotton sown after moong.

Notably, the cotton production this year has fallen by over 70 per cent because of the attack on the crop by whitefly and pink bollworm. This has led to the cotton growers fetching prices between Rs 9,000 and

Rs 10,000 per quintal.

The direct seeding of rice (DSR), too, was almost rejected by farmers as the use of this water saving technique for paddy cultivation was far below the target set by the government. Rather, the use of DSR technique was much below its use in the last year. “Saving groundwater is something that the state needs to do aggressively to delay its imminent desertification. The government’s intention was good, but to bring a major change, the entire ecosystem too has to be changed. This year, power pangs during the paddy cultivation season and the rather poor availability of canal water during the sowing time for the direct seeding led to the decline in area under the DSR,” said farmer Kuldeep Singh of Doraha.

This year, the harsh summer and the delayed monsoon too had an adverse impact on some crops, forcing farmers to revert to safer crops where minimum support price is guaranteed. To give the state government its due, the two procurement seasons — rabi marketing season in April-May and kharif marketing season now — have gone smoothly.

Basmati and cotton growers have got premium prices for their produce, despite cotton farmers suffering losses because of insect attacks. With the production hitting rock bottom and demand remaining high, cotton reaching mandis is fetching high prices.

The government, upon assuming power, has also cleared the dues of sugarcane growers. Cane crushing so far this year has remained smooth and the state government is also paying a higher State Advised Price — up by Rs 20 per quintal.

Agriculture being the mainstay of the state economy, a change in policy is accepted by farmers only if it leads to higher realisation of profit from the sale of produce. Realising this, the government has already gone to the drawing board to come up with a new agriculture policy in 2023.

The Punjab State Farmers and Farm Workers Commission is already talking to all stakeholders to draw up a comprehensive policy, with an emphasis on crop diversification, which is being personally looked into by Chief Minister Bhagwant Mann.

Bangladesh gets its staple, Myanmar develops the Ayeyarwady region

There is nothing new about the impact food has on politics. In the old days, many kings practised food diplomacy in entertaining their guests; by serving the best and most unique dishes that could have been created only by the royal house’s finest chefs. The tradition continues in the modern political world. Many leaders of political parties and heads of government use food diplomacy to strengthen relationships between allies or diffuse tension with the opposition.

Rice seems to have emerged as a favourite diplomatic tool for Myanmar and Bangladesh to build strong ties with each other. The commodity is the staple diet for most people in countries like Indonesia, Thailand and also the neighbouring countries China and India.

The agricultural sector is one of the most important and most strategic sectors for the survival of a country, for without food the country could be in a position of chaos and bankruptcy.

There are so many ways that the Bangladesh government maintains the availability of rice, one of the most common ways is by importing rice. Bangladesh is known as an agricultural country, but unfortunately, it continues to import rice.

Due to the current state of the world, especially the Ukraine-Russia conflict, many nations have stopped exports to maintain their domestic stock. Rice is a very important commodity in the Bangladeshi people’s lives; and there is even a proverb that says that Bangladeshis have not eaten if they have not consumed rice.

Despite tensions between Myanmar and Bangladesh, Dhaka imports millions of tonnes annually, and has placed an import order with Myanmar.

As agriculture and livestock are the backbone of Myanmar’s economy, it earns foreign exchange from rice exports beyond self-sufficiency. The state is supporting the stockholders including farmers and investors to bring about business opportunities. According to the Memorandum of Understanding between Myanmar and Bangladesh, 200,000 tonnes of white rice from Myanmar will be exported to Bangladesh.  A total of 2,650 tonnes of rice are to be directly shipped by the MV MCL-7 for the first time from the Ayeyarwady International Industrial Port AIIP in Pathein Industrial City, Ayeyarwady Region, to Bangladesh.

Bangladesh and Myanmar officials signed a sales contract on 8 September in order for exporting 200,000 tonnes of Myanmar’s white rice to Bangladesh. About 30,000-50,000 tonnes are scheduled to be sent to Bangladesh from the Pathein Port. On 28 October, the loading of 2,650 tonnes of Emahta rice onto a ship for Bangladesh commenced.

All the stakeholders involved in the supply chain, including the Ayeyarwady Region Government, departments concerned and private businessmen, are being exerted upon to meet the rice demand of Bangladesh and ship directly from the region. The direct rice shipment from Ayeyarwady Region, Myanmar’s rice bowl, to the foreign markets brings about economic opportunities for rice millers, farmers and traders and employment opportunities for local communities.

“Rice exports generate foreign currencies as well as contribute to private sector development. It is the first step of the regional efforts with the first ever direct rice shipment from Pathein city to the external market, with an aim to spur the developments in public and private sectors harmoniously together. The next step is to facilitate the trade in the Pathein Industrial City. The exports of rice also cause the GDP growth in the region. In addition to rice, corn and sesame are also targeted for direct export through Pathein City.

Myanmar’s rice exports to the neighbouring countries can enhance the livelihood of the farmers and create business opportunities for related businesses. This achievement in Pathein city can also strengthen the tripartite relationship between the State, farmers and entrepreneurs for ensuring A sustainable market and export promotion.

More than 20,000 tonnes of rice have been sent to Bangladesh by October, according to the Ministry of Commerce of Myanmar, after the MoU in September.

According to this MoU, Bangladesh agreed to buy 250,000 tonnes of rice and 50,000 tonnes of parboiled rice from Myanmar between 2022 and 2027.

Since 7 September 2017, Myanmar and Bangladesh have engaged in rice trade under a government-to-government pact. That MoU stated that Bangladesh has agreed to buy Myanmar’s white rice (250,000 tonnes) and parboiled rice (50,000 tonnes) till September 2022.
Myanmar sent 100,000 tonnes of rice to Bangladesh each in 2017 for the first time and 2021 for the second time, as per the sales contract.

The Ministry of Commerce has granted an export licence for 191,700 tonnes of rice for Bangladesh according to the agreement.

As per the MoU 48 companies, under the supervision of the Myanmar Rice Federation, are to export 200,000 tonnes to Bangladesh with Chinese yuan payment between October 2022 and January 2023.

Myanmar and Bangladesh inked another MoU this September, according to which Bangladesh agreed to buy 250,000 tonnes of white rice and 50,000 tonnes of parboiled from Myanmar between 2022 and 2027.

Myanmar plans to export a total of 200,000 tonnes of rice to Bangladesh under a G-to-G agreement. The first shipment was directly made by the Ayeyarwady International Industrial Port (AIIP) in Pathein of Ayeyarwady Region, and 10,565 tonnes of rice out of the targeted 200,000 tonnes has been exported from 2 to 22 November.

Deputy Director U Tun Tun from the Consumer Affairs Department commented on the benefits to farmers and businessmen due to direct export, said there was an instruction to export 20,000 tonnes as the first batch and 40,000 tonnes as the second batch, totalling 60,000 tonnes.

The respective ministry and export companies are working together to ensure the quality of export rice and fast shipping. Rice mills in Ayeyarwady Region are running to export good-quality rice, it is learnt.

Myanmar has conveyed about 110,000 tonnes of rice to Bangladesh under the government-to-government pact, according to the Ministry of Commerce.

Myanmar

Following the contract, white rice (ATAP) GPCT Broken STX variety will be delivered.

Since 7 September 2017, Myanmar and Bangladesh have engaged in rice trade under the government-to-government pact. That MoU stated that Bangladesh has agreed to buy Myanmar’s white rice (250,000 tonnes) and parboiled rice (50,000) tonnes between 2017 and September 2022.

According to the Government-to-Government, Bangladesh has been purchasing Myanmar’s white rice. The country has shipped rice directly from Pathein Industrial City since 2 November 2022. Between 1 and 8 December, 5,260 tonnes of rice were loaded onto the two ships in the second batch and the MCL-12 ship carrying 2,650 tonnes of rice departed in the morning of 8 December from the Ayeyarwady International Industrial Port AIIP in Pathein Industrial City, Ayeyarwady Region, to Bangladesh.

Earlier, Myanmar conveyed rice to Bangladesh through Yangon Port and Thilawa terminals. In the first batch from 2 to 22 November 2022, 10,565 tonnes of Aemahta rice (five-per-cent broken) were shipped by four ships directly from Pathein city to Bangladesh. The country delivered 2,610 tonnes on 1 December and 2,650 tonnes on 8 December in the second batch, totalling 5,260 tonnes. On 7 December, the MCL-18 ship arrived at the Ayeyarwady International Industrial Port and further exports are to be undertaken.

Myanmar’s white rice direct delivery from Ayeyarwady Region to Bangladesh was an accumulated 15,825 tonnes, with 10,565 tonnes in the first batch and 5,260 in the second.

“The main export item from Pathein Port is rice. If Bangladesh buys corn in addition to rice, there is an adequate supply of corn in the region. Myanmar has indicated readiness to export corn depending on the market demand. The rice shipment for the second batch has finished. “We plan to export agricultural products from Ayeyarwady Region to foreign trading partners. For the initial stage, efforts are being made to complete the rice shipment first,” said U Tun Tun, deputy director of the Ayeyarwady Region Consumers Affairs Department.

Earlier, the second batch of rice shipment was slated for the second week of December. However, Myanmar managed to ship the rice in the first week to Bangladesh as rice outputs from Ayeyarwady Region increased.  All the stakeholders involved in the supply chain, including the Ayeyarwady Region Government, departments concerned and private businessmen, are being exerted upon to meet the rice demand of Bangladesh and ship directly from the region. The direct rice shipment from Ayeyarwady Region, Myanmar’s rice bowl, to the foreign markets brings about economic opportunities for rice millers, farmers and traders and employment opportunities for local communities.

For the last two decades a tribal man has dedicated himself solely to saving native rice varieties of India and even at the age of 72, he continues to do so. Farmers in Kerala’s Wayanad had been growing indigenous rice varieties but over a period this has changed as they switched to high-yielding and genetically modified seeds posing a serious threat to the local varieties which faced extinction.

Thanks to the efforts of Cheruvayal Raman, also known as India’s “living paddy gene bank” and “Guardian of Native Paddy”, that didn’t happen as 54 ancient types of rice have been saved by him in the last 20 years.

Born in Kurichiyas tribe in Wayanad, Raman and his community had been producing rice and also promoting and preserving its indigenous varieties. When he realised that the native varieties are being substituted by hybrid ones, he sowed the former in 1.5-acre of his field.

Things took a turn for the better, when Raman inherited 40 acres of land in 1969 from his uncle and from then on, he completely devoted himself to farming and saving the local rice varieties.

Among the varieties saved by him are Mannu Veliyan, Chembakam, Palveliyan, Kanali, Thondi, Channalthondi, Chettuveliyan and the aromatic ones like Gandhakashala, Jeerakasala, and Kayama. All these he keeps in his 150-year-old mud house which also doubles up as a storehouse for rice harvest. Now he is expert in distinguishing the types by their look.

Raman does not sell the seeds but presents them and the only condition he stipulates is that the borrower should return the same quantity of seeds from their field after the first harvest.

He has been appreciated and awarded by several organisations, including the Government of Kerala.

HAMBURG: The lowest price offered in a tender from Bangladesh’s state grains buyer to purchase 50,000 tonnes of rice was assessed at $397.03 a tonne CIF liner out, traders said.

The tender closed on Tuesday and offers are still being considered with no purchase yet made, the traders said.

The lowest offer was believed to have been submitted by trading house Agrocorp.

Two other trading houses were said to have participated, with Bagadiya Brothers offering $400.01 a tonne CIF liner out and PK Agri offering $428.94 a tonne CIF liner out.

Liner out terms include some ship unloading costs for the seller.

The tender sought price offers for non-basmati parboiled rice for shipment to the ports of Chattogram and Mongla.

The rice can come from worldwide origins and shipment is required 40 days after contract award.

Bangladesh had also issued an international tender for 50,000 tonnes of rice, closing on Dec. 21.

Vietnam 2022 rice exports estimated at 7 million tonnes

The lowest offer was believed to be $393.19 CIF liner out, submitted by Bagadiya Brothers, traders said.

Bangladesh, historically the world’s third-biggest rice producer, often imports rice to manage shortages caused by natural disasters.

Due to the switch to high-yielding varieties, indigenous rice varieties in Wayanad have been preserved by tribal farmers for decades. But they are now in danger of going extinct. Cheruvayal Raman, also known as the “Guardian of Native Paddy” and India’s “living paddy gene bank,” has alone preserved 54 ancient rice types from Kerala over the last 20 years.

Raman spent the majority of his life producing rice. He was born in Wayanad’s Adivasi community of Kurichiyas, a tribe with a long history of preserving and promoting indigenous varieties of rice. He opted to sow native seeds in a 1.5-acre portion of his field upon seeing native paddy being substituted by hybrid seeds in the village.

The Better India quoted Raman as saying, “I embarked on this path sometime during the early 2000s. Wayanad has always been a region known for its paddy cultivation, but our native paddy varieties were losing out to hybrid and genetically engineered seeds.”

Raman began planting paddy when he was only ten years old. However, he was left 40 acres of land by his uncle after he passed away in 1969. At that point, he thoroughly immersed himself in farming. Mannu Veliyan, Chembakam, Palveliyan, Kanali, Thondi, Channalthondi, Chettuveliyan and aromatic rice kinds like Gandhakashala, Jeerakasala, and Kayama are among the native rice varieties he keeps as stock in his 150-year-old mud house that also functions as a storage space. After all these years of cultivation of over 50 varieties of rice, Raman can now distinguish different types of rice just by looking at them.

Furthermore, the 72-year-old farmer doesn’t really sell his seeds, but rather presents them on one condition: the borrower must return the exact same quantity of seeds from their field after the first round of harvest. Raman has received numerous honours and accolades, including the Plant Genome Saviour Award and the P K Kalan Award from the Kerala government.

South First reported that Raman was willing to delegate the duty of conserving these indigenous rice to any rice research centre, agricultural university, nongovernmental organisation, or interested individuals.

In last five years, at least 20 indigenous rice varieties, used to make a range of grain foods and dishes such as Muri, Chira, Khoi, Biriyani, Firni and Payesh, have gone extinct from Lakshmipur as the high-yielding hybrid rice varieties are dominating rice cultivation to ensure food security.

Many farmers, agro businesspeople and industry stakeholders say steps should be taken to preserve local rice varieties across the country.

Md Manchu Bepari (70) of the Char Lawrence village of the district's Kamalnagar upazila said he is cultivating few high-yielding varieties on 15-acre land in the current Aman season.

He said that in the past he used to cultivate other varieties including rice for muri, chira and khoi but not anymore.

Farmer Abdur Rahman of Char Monsa in sadar upazila, said even five years ago he used to cultivate aromatic varieties Kalojeera and Shakkorkhora, which are only used for polao and firni, on half the land he cultivated.  

Like Abdur Rahman, many farmers of his area have opted for high-yielding varieties instead of the indigenous ones.

Md Ismail, another Char Mansa farmer, said in the past almost all farmers used to cultivate Holidhan rice in the Aush season.

The Holidhan variety, once famous for sweet chira, has completely disappeared since the last five years.

Lohachura, which was well-known in Lakshmipur for khoi, and Geegs, which was used to make muri, have also gone extinct.

Saleh Uddin Palash, plant conservation officer of the Department of Agriculture Extension (DAE), said 13 indigenous varieties have disappeared in the last 5 years – Madhumalti, Kalarajashail, Lotorh, Bajailsada, Rajashail, Agunishail, Katishail, Kutia Moni, Pakkiraj, Patjat, Lohachura, Dholamoda and Nonahail.

"Currently, farmers cultivate five indigenous varieties – Geegs, Bhushihara, Kajalshail, Kalojira and Shakkarkhora – in a very small quantity," he said.

Kalahatiya is the only indigenous variety of the Aush season that is still cultivated, according to farmers.

Seven Aush season varieties – Bolaim, Goyal, Holidhan, Marhicha, Kerondol, Kotoktara and Panbira – have disappeared in the last five years.

Local farmer Mamunur Rashid Bhuiyan said that government subsidies should be given to rice farmers of grain foods, just as special loans and subsidies are given to oilseeds.

DAE Deputy Director Zakir Hossain said 3-4 indigenous varieties are cultivated during Aman season and 2-3 varieties in the Aush season.

He added that 90% of the varieties which are cultivated in the Aush, Aman and Boro seasons are now high-yielding hybrids.

The Bangladesh Rice Research Institute (BRI) developed 106 high-yielding rice varieties including 23 Aush, 7 hybrids, and 46 Amon till 2021. On the other hand, Bangladesh Institute of Nuclear Agriculture (BINA) developed 30 varieties. However, in Lakshmipur, a key paddy production area, only 3-4 varieties are cultivated every season.

From 1998 to 2020, the Seed Board allowed imports of 170 hybrid rice varieties – 18 Aman varieties and 152 Boro varieties.

Professor Mahbubur Rahman of the Greenland Project of the Sabuj Bangladesh, said gene banks should be established at the district level to save the indigenous rice varieties.

MUMBAI/ HANOI/ BANGKOK,/DHAKA: Prices of rice exported from Thailand this week rose to their highest since early June on the back of increasing shipments and a stronger baht, while cheaper rates for the staple in India kept orders rolling in.

Thailand’s 5% broken rice prices were quoted at $452-$460 per tonne, up from a $425-$457 range last week.

“There is more demand from Asian countries now, while African countries are more interested in rice from India,” said one Bangkok-based trader.

There was news that supply could soon tighten so exporters were buying to stock up, said another trader.

Top exporter India’s 5% broken parboiled variety edged higher to $374-$380 per tonne, from last week’s $373-$378, on a slight improvement in demand, although rising supplies from the new season crop capped the upside.

“December’s second half usually remains quiet but this year few sellers got export orders since Indian rice is cheaper than other destinations,” said an exporter based at Kakinada in the southern state of Andhra Pradesh. Traders said Cuba was buying more rice from India, with a vessel being loaded with 28,150 tonnes at Kakinada Port for delivery.

Neighbouring Bangladesh was in talks with India to buy a total of 200,000 tonnes of rice in government-to-government deals, officials said, as it seeks to build reserves to cool domestic prices of the grain. Vietnam’s 5% broken rice was offered at $448-$453 per tonne, unchanged from a week ago, when rates reached their highest level since July last year.

“Demand for Vietnamese rice remains steady, especially from top buyer, the Philippines,” said a trader based in Ho Chi Minh City.

Preliminary shipping data showed 167,650 tonnes of rice is to be loaded at Ho Chi Minh City port in the Dec. 1-28 period, with most of it heading to the Philippines and Indonesia.

Rice exporters demand industry status and lament treatment by the commerce ministry.

Rice exporters demand industry status, lament treatment by commerce ministry  

ISLAMABAD: Warning that Pakistan’s rice exports this year will fall, representatives of the rice sector are demanding that they be given industry-status immediately along with  the announced subsidized tariff of Rs 19.99 for the sector as well as the restoration of gas connections to mills.

Speaking at a presser, after a high-level meeting with officials from the commerce ministry, rice exporter association president Chela Ram Kewlani and other exporters warned the government in case of no timely action, the exports of rice will fall short of last year’s export proceeds of $2.5 billion. 

The association claimed that rice exports have the potential to reach $5bn in the next couple of months if the government provides support. Mr Kewlani said that Finance Minister Ishaq Dar’s claims to facilitate exports only remain on papers for sectors like rice. He alleged that Mr Dar only supports bigger industries and has no soft corner for the rice sector.

 “We are not demanding subsidies for exports”, he said, adding that the finance minister or commerce minister has no time to listen to the problems of Pakistan’s second largest commodity export sector. Mr Kewlani and his Team in Islamabad discussed various issues including the declaration of industry status for the rice sector, subsidized tariff rates for rice mills and other matters related to rice export trade with the secretary of commerce.

Mr Kewlani further said that the rice sector export development fund (EDF) amounting to Rs 12 billion is stuck with the government. “We demand that we spend this amount on the growers to improve seeds and cultivation to increase yield”, he said. The EDF funds are for the export sector and they should be used for export facilitation. 

Chela Ram said that despite the government’s announcements, the rice sector is not getting units of electricity at Rs 19.90. The rice sector is not being given the status of an industry, which is causing numerous problems, he added.

“Dollars are not available and this is causing serious problems. The containers are piling up and businessmen are unable to open LCs. We businessmen are paying the price for differences between political parties”, he remarked. There are eight districts in the world whose Banaspati rice is famous, he said, adding six districts are in Pakistan and two in India.

Muhammad Samiullah Former Chairman REAP said that export from the rice sector will increase in the coming month. In the first five months, the export of rice dipped by around 10pc. Mr Samiullah said that basmati exports will revive in the next five months.

Mr Samiullah warned the government to take out protests in support of growers in case the government did not consider rice millers’ demand. He said housing schemes on GT Road in Pakistan are eating up this rare earth in six districts suitable for the cultivation of the world’s best basmati rice. 

He said no action was taken. The country will become an importer of rice, especially basmati rice. “No government official is ready to sit down with the people of the rice sector to resolve our problems”, he lamented.

Subramani Ra Mancombu talks about the controversy surrounding steamed and the process of making steamed rice.

The Food Corporation of India (FCI) has clarified that steamed rice is not raw rice as it involves more processing before being made available for sale. This came as a relief for the exporters after steamed rice was stopped from exporting by the Customs authorities.

This controversy made everyone question how steamed rice is different from boiled rice and raw rice. In this video, Subramani Ra Mancombu, Head of Agri-biz & Commodities, takes us through the process of making steamed rice and also talks briefly about the challenges of producing steamed rice.

Credits:

Reporter: Subramani Ra Mancombu

A farmer holds late-season rice in his hand in Huai'an，Jiangsu province on Nov 24, 2022.

Rice plants attacked by the striped stem borer, a major paddy pest, send out airborne substances to warn their neighbors so they can prepare chemical defenses, Chinese scientists have found.

The findings can help enhance the widely planted crop's resistance against one of its most devastating pests, according to a study published in New Phytologist, a plant science journal, in mid-October, a boon to world food security.

HIPVs, or herbivore-induced plant volatiles, are complex mixtures of volatile organic compounds emitted by plants attacked by herbivores.

They play a crucial role in plants' interactions with insect communities, experts say.

For example, HIPVs can be used by insects to locate their hosts or prey, and to evade predators.

They can also be perceived by nearby plants and thus serve as airborne signals during inter-plant interactions.

The volatiles, emitted by plants attacked by herbivores or pathogens, can be sensed by other plants and lead to what is known as defense priming, which has been widely observed among corn, tomato and tea plants.

The study by agrarians from the Chinese Academy of Agricultural Sciences and a Swedish researcher went a step further.

They worked to decipher the process through chemical and molecular analysis and insect behavioral experiments.

Their research has found that pre-exposure to stem borer-induced HIPVs allows rice plants to activate a more intense response upon attack by creating a sudden surge of jasmonic acid and defensive proteinase inhibitors, which are harmful to the pest's larva.

Moreover, "primed" plants were found to emit larger amounts of volatiles that attract a wasp that parasitizes the stem borer.

"Understanding the details of the underlying processes should facilitate studies to elucidate similar interactions in other systems and may lead to strategies that exploit the odorous alert signals to manage the striped stem borer and other destructive pests," said the paper, which was partly funded by the National Natural Science Foundation of China.

Data provided by the Ministry of Agriculture and Rural Affairs showed that the striped stem borer and other major paddy pests and pathogens affected more than 57 million hectares of rice last year.

The research forms part of a broader effort by China to boost its food output through agricultural sciences and technologies.

The Ministry of Agriculture and Rural Affairs last month announced a program to step up breeding research in hopes of developing homegrown, high-yield varieties of crops and livestock to better feed the country's 1.4 billion people.

Rice is a staple food for 3.5 billion people worldwide, and more than 1 billion make a living through growing the crop, Qu Dongyu, director-general of the Food and Agriculture Organization, told a virtual forum last month. The crop also feeds around 60 percent of Chinese.

China has been leading the world in rice-related research. In 2004, Yuan Longping won the World Food Prize for developing hybrid rice, whose output was around 7.5 metric tons per hectare, compared with 4.61 tons globally.

The Federal Government, on Thursday, inaugurated the National Rice Development Strategy-II (2020-2030) and the Competitive African Rice Platform to ensure surplus rice production for export, food security and job creation.

It said the NRDS-II was developed following the successful implementation of the first phase of the NRDS-I, which took place between 2009 and 2019.

The Minister of State for Agriculture and Rural Development, Mustapha Shehuri, disclosed this in his keynote address at the inauguration of the second phase of the rice development strategy in Abuja.

He explained that based on the gains of the NRDS-I in 2020, the national paddy rice production rose significantly towards the self-sufficiency target of the Federal Government.

“As a result of this success, NRDS-I was reviewed to give rise to the formulation of a new NRDS document in 2021,” he stated.

Shehuri added, “This is the document that is being inaugurated today. The NRDS-II document is a 10-year plan which seeks to provide direction for the development of the rice subsector to achieve the government’s goals of self-sufficiency in rice production, food and nutrition security, employment creation and production of surplus for export.”

He said the document was adopted at the 4th National Council of Agriculture, which was held by all stakeholders, with support from the Competitive Africa Rice Platform.

Shehuri said, “CARP, formerly known as Sustainable Rice Platform, is dedicated to the productivity and sustainability of the rice industry with two main objectives, which are to ensure the competitiveness of Nigerian rice and sustainability of the Nigeria rice sector.

“The Competitive African Rice Platform-Nigeria is a multi-stakeholders platform set up to advocate policies and drive transformational changes in standard practices in the rice sector.”

On his part, the Permanent Secretary, Federal Ministry of Agriculture and Rural Development, Ernest Umakhihe, said the collaboration of the FMARD and several development partners had yielded positive results on rice production and processing in Nigeria within the last decade.

MANILA, Philippines — President Ferdinand “Bongbong” Marcos Jr. granted a one-time rice allowance to all government personnel for this year, Malacañang announced in a statement on Saturday.

Those who are entitled to receive the rice subsidy include civilian personnel in national government agencies, including those in state universities and colleges (SUCs), government-owned or controlled corporations (GOCCs), government financial institutions, government instrumentalities with corporate powers, and government corporate entities occupying regular, contractual or casual positions.

Military, police, fire, and jail personnel are also entitled to receive the rice assistance.

Personnel from the Bureau of Corrections (BuCor), the Philippine Coast Guard (PCG), and the National Mapping and Resource Information Authority (Namria) are also entitled to get the service recognition incentive.

‘Service recognition incentive’

Meanwhile, the Chief Executive also granted a “service recognition incentive” for employees in the executive department.

“The President’s order authorizes the grant of a one-time service recognition incentive at a uniform rate not exceeding P20,000 for executive department personnel,” the Office of the Press Secretary said.

Those who are entitled to receive the incentive include civilian personnel in NGAs, covering those in state SUCs, GOCCs, regular, contractual, or casual employees, members of the military and the police, as well as fire and jail personnel under the Department of the Interior and Local Government.

Bucor, PCG, and Namria employees will also receive the incentive.

Employees of both houses of Congress, the Judiciary, the Office of the Ombudsman, and Constitutional offices may also be granted a one-time SRI by their respective heads of office at a uniform rate not exceeding P20,000.

Indonesia starts rice import from Vietnam, Thailand to stabilize domestic stocks

JAKARTA, Dec. 16 (Xinhua) -- The Indonesia Logistics Bureau (Bulog) received on Friday 5,000 tons of rice imported from Vietnam at the Tanjung Priok Port, the agency said.

The import is part of the 200,000 tons of rice that the country has targeted to import by the end of 2022. In total, it has planned to import 500,000 tons up to February 2023.

Indonesia, one of the largest rice consumers worldwide, is set to import rice from Thailand, Pakistan and Myanmar to fulfill its domestic stocks.

"We need to import rice because there will be no harvest time in January and February 2023, while the demand for rice usually increases at the end of a year, from 30,000 tons per month to 170,000 tons per month. The government's reserve stock is not enough to fulfill (the demand)," Bulog President Director Budi Waseso told reporters on Friday.

Indonesia's National Food Agency (Bapanas) released on Thursday that the staple foods in the country, such as rice, soybeans, and beef had been experiencing a price hike. The rice price has increased in the range of 0.62 percent to 0.78 percent per kilogram.

The agency has also warned that without a top-up supply, the country's reserve of rice could drop and create a food crisis.

Indonesia's inflation has exceeded its central bank's target for the last six months due to increasing prices in food and commodities, though the country still sees a trend of economic recovery. 

World over rice production is likely to fall due to a combination of drought and floods

Three developments over the past couple of months have put the global rice market in focus. First, the India curbed rice exports by banning shipments of fully broken rice and imposing a 20 per cent duty on white rice exports.

Second, Union Minister of Agriculture and Farmers Welfare Narendra Singh Tomar told the Rajya Sabha last week that due to deficient rainfall in some rice-growing States such as Uttar Pradesh, Bihar, Jharkhand and West Bengal, the cereal’s production may decline this season (July 2022-June 2023). In its first advance estimate, the Agriculture Ministry pegged kharif rice production at 104.99 million tonnes (mt) this season against 111.76 mt last season.

Third, Bangladesh has approached India for 0.5 mt of parboiled rice on a government-to-government basis to build stocks for its public distribution system. The move comes after Dhaka had scouted for supplies in Thailand, Vietnam and Cambodia. Another reason for the Sheikh Hasina Wajed government to turn to New Delhi is the price competitiveness of Indian rice.

Trade analysts are of the view that these are signs of a bull run in the rice market in early 2023. According to the International Grains Council (IGC), the rice sub-index has increased 15 per cent over the past year.

Lower estimates

Though Indian production has been pegged about 7 mt lower than last year, there are fears that the output could be even less. Though kharif rice procurement is 13 per cent higher till the week-ended December 10, analysts say this is because procurement in Chhattisgarh began a month early. The trade says a clear picture will emerge only by the middle of January.

The problem in rice production is not confined to India alone. Pakistan is among the worst affected with much of its paddy crop washed away in floods during July, the worst since 1961. The US Department of Agriculture (USDA) has projected Pakistan’s rice production at a 10-year low of 6.6 mt this season against a record 9.1 mt last year. Analysts peg the crop loss at 4 mt.

The scenario in China is not clear, particularly since it faced its severest drought in 61 years for nearly 70 days from July to September in the Yangtze region. Seven of the 13 major producing regions affected by the drought accounted for 48 per cent of the nation’s rice production in 2020. Research agency Fitch Solutions Country Risk and Industry Research has cautioned the trade saying China might provide a false sense of slackness in the market. The USDA has projected a 2 mt drop in China’s production, though fears are that the loss might be higher.

There have been problems with the paddy crop in Myanmar, Vietnam, Cambodia and Thailand which could result in supplies being affected in the global market. Drought in parts of Europe and the US will affect the rice crop in those countries with production dropping by 0.5 mt.

In Bangladesh, two of its three paddy crops have been affected. While the Aush crop was affected due to lower rainfall, the Boro crop was earlier damaged by flash floods. Dhaka fears the third crop — Aman — might also be hit and the Hasina Government is looking to import to ensure the neighbouring nation has ample stocks.

FAO projections

The Food and Agriculture Organisation’s Agricultural Market Information System has estimated global rice production to drop by over 12 mt, while the International Grains Council and the USDA project the output 9-10 mt lower. Trade analysts, however, say there could be a nearly 14 mt drop in production.

The three agencies have estimated the carryover stocks lower ranging from 3mt to 13 mt, which could trigger a bull run in the global rice market.

A major reason why the rice market will likely soar over the next few months is that the trade is one-tenth of the global production. In such a limited trade, any variation in production or supply could trigger volatility.

Rice prices have increased by 5-8 per cent since India imposed curbs on the cereal’s exports. Analysts say prices have more headroom to move up and there should be no surprise if they surge by another 15-20 per cent.

The retail inflation rate in wheat rose to 19.67 per cent in November from 17.64 per cent in October.

The retail price inflation in cereals refused to decline, unlike overall or food inflation, as production was hit due to adverse weather conditions.

Cereals inflation rose to 12.96 per cent in November from 12.08 per cent during the previous month.

This comes even as overall inflation came down below the Reserve Bank of India (RBI) mandate of six per cent for the first time in 11 months. Food inflation also declined to its lowest level of 4.67 per cent in 11 months.

The retail inflation rate in wheat rose to 19.67 per cent in November from 17.64 per cent in October.

At the beginning of the year, it was just 5.1 per cent and rose to 9.59 per cent at the beginning of the current financial year. From there, it more than doubled in November.

Another cereal — rice — saw inflation rate rising to 10.51 per cent in November from 10.21 per cent in October. It was just 2.8 per cent in January and 3.96 per cent in April.

Wheat and rice drove the prices since the inflation rates in other cereals were negative in all these months, except October and November. The rate rose to 1.99 per cent in October from -1.37 per cent in September before cooling a bit to 1.7 per cent in November.

Rise in inflation in wheat and rice may disturb the budget of the poor, but the government has already extended the free foodgrain scheme for 800 million people by three months till December 31.

Under the scheme — the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) — five kg of wheat or rice is provided free of cost to the beneficiaries of the National Food Security Act. This is in addition to their monthly quota.

Besides, rationed rice and wheat have not seen much inflation.

For instance, public distribution system (PDS) rice saw a decline in prices during the first four months of the calendar year till April. And then, the inflation rate stood below one per cent till September. There was absolutely no inflation in October-November for PDS rice.

In the case of PDS wheat, prices continued to fall every month till November 2022 year-on-year (YoY).

Production of both wheat and rice has been below last year’s levels, according to the government’s estimate. But the extent of the fall has varied between what has been officially pronounced and what private traders calculated.

This is also perhaps among the very few times in recent history when output of both the main cereals has seen a drop due to adverse weather conditions.

Whole wheat output dropped in 2022 rabi season due to sudden rise in terminal heat, just ahead of the harvesting stage.

Rice production dropped in the preceding kharif season due to drought and patchy rains in the main growing states of eastern India — Bihar, Jharkhand, West Bengal and Uttar Pradesh.

According to official estimates, wheat production in the rabi season of 2022 that ended in June was officially pegged at 106.41 million tonnes. This is 3.8 million tonnes less than last year’s output as heat waves in the main crop-growing stage crimped output.

However, private traders have pegged the production at much less, somewhere around 98-100 million tonnes.

As a consequence of the drop in production, prices flared up in the domestic market. It was also aided by the acute shortage of wheat in the global markets due to the Ukraine war.

Similarly, in the case of rice, too, the weather played spoilsport and drought in eastern India pulled down rice output.

According to the first advance estimates, rice production in the just-concluded kharif season is expected to be at 104.99 million tonnes. This would be almost 6.05 per cent less than the same period last year.

Until as recently as 1970, India was a land with more than 100,000 distinct varieties of rice. Across a diversity of landscapes, soils, and climates, native rice varieties, also called “landraces,” were cultivated by local farmers. And these varieties sprouted rice diversity in hue, aroma, texture, and taste.

But what sets some landraces in a class of their own—monumentally ahead of commercial rice varieties—is their nutrition profiles. This has been proved by the research of Debal Deb, a farmer and agrarian scientist whose studies have been published in numerous peer-reviewed journals and books.

In the mid-1960s, with backing from the U.S. government, India’s agricultural policy introduced fertilizers, pesticides, irrigation facilities, and high-yielding varieties of crops under the moniker of a “Green Revolution” to combat hunger. Instead, it began an epidemic of monocultures and ecological destruction.

In the early 1990s, after realizing that more than 90% of India’s native rice varieties had been replaced by a handful of high-yielding varieties through the Green Revolution, Deb began conserving indigenous varieties of rice. Today, on a modest 1.7-acre farm in Odisha, India, Deb cultivates and shares 1,485 of the 6,000 unique landraces estimated to remain in India.

Deb and collaborators have quantified the vitamin, protein, and mineral content in more than 500 of India’s landraces for the first time, in the lab he founded in 2014, Basudha Laboratory for Conservation. In one extraordinary discovery, the team documented 12 native varieties of rice that contain the fatty acids required for brain development in infants.

“These varieties provide the essential fatty acids and omega-3 fatty acids that are found in mother’s milk but lacking in any formula foods,” Deb says. “So instead of feeding formula foods to undernourished infants, these rice varieties can offer a far more nutritious option.”

Deb and his team have also documented high levels of antioxidants and several B vitamins in more than 250 landraces of rice. Both of these compounds are essential for the functioning of a healthy human body, Deb says, but are rarely found in modern high-yield varieties.

In Garib-sal, a rice variety from a remote village in West Bengal, Deb and his co-workers discovered the bioaccumulation of silver in its grains at 15 parts per million. This may explain why Garib-sal was prescribed in traditional medicine for the treatment of gastroenteric infections, since silver nanoparticles are known to kill pathogenic microbes.

Miraculous as these traits may appear, they are far more than happy accidents of nature. They are the result of a conscious exercise of selective breeding by ancient farmers, whom Deb refers to as “unnamed, unknown scientists.”

“These farmer-scientists did not know anything about DNA, proteins, or enzymes,” he says, “yet they managed to develop novel varieties through generations of selective breeding.”

Deb’s conservation efforts are not to preserve a record of the past, but to help India revive resilient food systems and crop varieties. His vision is to enable present and future agriculturists to better adapt to climate change.

Cultivating Resilience

Deb conserves scores of climate-resilient varieties of rice originally sourced from Indigenous farmers, including 16 drought-tolerant varieties, 20 flood-tolerant varieties, 18 salt-tolerant varieties, and three submergence-tolerant varieties. He shares his varieties freely with hundreds of small farmers for further cultivation, especially those farming in regions prone to these kinds of climate-related calamities. In 2022 alone, Deb has shared his saved seed varieties with more than 1,300 small farmers through direct and indirect seed distribution arrangements in several states of India.

One of these farmers is Shamika Mone. Mone received 24 traditional rice varieties from Deb on behalf of Kerala Organic Farmers Association, along with training on maintaining the purity of the seeds. Now these farmers have expanded their collection, working with other organic farming collectives in the state of Kerala to grow around 250 landraces at two farm sites. While they cultivate most of their varieties for small-scale use and conservation, they also cultivate a few traditional rice varieties for wider production, which yield an average of 1.2 tons per acre compared with the 1 ton per acre of hybrid varieties.

“But that’s only in terms of yield,” Mone says. “We mostly grow these for their nutritional benefits, like higher iron and zinc content, antioxidants, and other trace elements. Some varieties are good for lactating mothers, while some are good for diabetic patients. There are many health benefits.”

These native varieties have proven beneficial in the face of climate change too.

With poor rains in 2016, for example, the traditional folk rice variety Kuruva that Mone had planted turned out to be drought-tolerant and pest-resistant. And in 2018, due to the heavy rains and floods, she lost all crops but one: a folk rice variety called Raktashali that survived underwater for two days.

“They have proven to be lifesavers for us,” Mone says.

With extreme weather events, like droughts, floods, and storm surges, on the rise across the world, small farmers suffer damage to their farms, lose harvests, and go into debt. But small organic farmers incur less debt since they don’t depend on expensive inputs.

“About 90% of the overall costs incurred on most organic farms in Kerala are mostly for labor costs, while only around 10% goes on manures and composts, if any,” Mone says.

By expanding the cultivation of resilient crop varieties, an agricultural system can bounce back faster to its original capacity.

“Our emphasis and advice to every farmer in the world would be to foster and nurture diversity at all levels—at the species level, at the crop genetic level, and at the ecosystem level,” Deb says. “The building of complexity and diversity is essential to building resilience.”

The Case for Agroecology

Many fertilizers, pesticides, and herbicides commonly used in commercial farming act as biocides (killers of life forms) and, in so doing, decimate the microorganisms in the soil. Soil microorganisms, like mycorrhizal fungi, are recognized as essential to deliver nutrients from the soil to the plants. Without these nutrients, plants cannot remain productive, and they become more prone to pest attacks. Thus begins the degenerative cycle of spraying more pesticides while adding more synthetic fertilizers to compensate for the lack of nutrients.

Industrial farming, associated with monocultures and synthetic chemical inputs, leads to the loss of soil fertility year over year and ultimately the collapse of the farm ecosystem. Commercial hybrid seeds, dependent on costly inputs, have also proved to fall behind in climate tolerance.

“We need resilience under uncertainty and hardship,” says Sujatha Rajeswaran, a farmer from Villupuram district, Tamil Nadu, who received seeds and training from Deb. She sells her produce directly to a group of friends and family members.

“Growing traditional varieties coincides with our philosophy for life,” Rajeswaran says. “Just having a lot of money is not enough. We need good physical and mental health. We need good relationships. We need good ecology, not only in a human-centric way, but for all beings to be able to live and thrive.”

Deb asserts that in order to grow resilient and nutritious food sustainably, global food systems must transition to agroecology, which doesn’t introduce toxic chemicals to the environment. Deb and many other scientists have also documented agroecology to be more productive than industrial farming, and that it leads to better soil fertility year over year.

“Agroecology is an essential component in the fight against climate change and [greenhouse gas] emissions,” says Steve Gliessman, professor emeritus of agroecology at the University of California, Santa Cruz, and an international expert with more than 50 years of teaching, research, and production experience in the field of agroecology.

“Agroecology is all about farming practices that capture and hold carbon, but it is also all about how all other parts of the food system contribute to sustainability. This means more local, seasonal, and integrated food systems, where what we call ‘food miles’ are reduced, food waste is reduced, and local food production capacity once again plays an important role.”

Gliessman applauds Deb’s conservation and participatory work with local farmers. “[His work] confronts the modern idea of ‘improved’ seeds when farmers already have the seed knowledge they need in their hands. Deb has rescued this knowledge, codified it, and made it available once again.”

Roadblocks to Implementation

Despite a plethora of reasons to prioritize a transition to agroecology, funding for these open-source solutions is severely lacking. Public institutions and private businesses alike favor putting their money toward patented technologies and seeds.

There are two pathways to adapt agriculture to climate change, according to Rasheed Sulaiman V., director of the Centre for Research on Innovation and Science Policy, a nonprofit organization that promotes research in the area of innovation policy for agriculture and rural development. Pathway 1, he says, is the development and promotion of new climate-resilient, high-yielding varieties of seeds. Pathway 2 is to promote and strengthen in-place conservation of native, climate-resilient varieties by civil society organizations and seed champions like Deb.

Based on a detailed case study in Odisha, Sulaiman says Pathway 2 can help in achieving several more of the United Nations’ Sustainable Development Goals than Pathway 1, without causing adverse impacts to the environment and agro-biodiversity. “Unfortunately,” he says, “almost all science, technology, and innovation support is invested in Pathway 1, and there are practically no resources invested in strengthening Pathway 2.”

Deb documents that many native varieties of crops measure more resilient and nutrient-dense than commercial varieties and patented seeds, even after the billions of dollars that have been invested in agribusinesses. For example, the International Rice Research Institute, an agricultural research and training organization that contributed to the Green Revolution, has developed an iron-fortified genetically modified rice variety, IR68144-2B-2-2-3, containing 8.9 ppm of iron. This is meant to be its “high iron” variety. Contrast that with the approximately 80 native varieties of rice Deb has documented that contain between 20 and 152 ppm of iron.

Such knowledge becomes vital in light of government policy that favors food fortification instead of food sovereignty. The Indian government recently mandated that rice supplies be fortified with iron and other supplements in order to tackle malnutrition. This fortification process involves rice being milled into a powder form, fortified with supplements, and reshaped into rice grains. The Mandatory Food Fortification Program is now in effect across four states (Bihar, Orissa, Chhattisgarh, and Jharkhand) and counting, and all rice supply in India will need to be fortified by 2024.

“According to this fortification mandate, everyone, whether you need it or not, has to consume this fortified rice. What if your child has thalassemia, a condition where excess iron is lethal?” wonders Deb. So far, local news outlets have produced concerning reports: Children in Bolangir district of Orissa fell ill after consuming the fortified rice in their public school meals. In the state of Punjab, 19 samples of fortified rice out of 22 collected failed national quality control tests.

“Experts are spending billions of dollars to fine-tune genetic engineering, while these nutritious and resilient varieties already exist,” Deb says. “In the name of smarter agriculture, we are losing these climate-smart varieties.”

Small-Scale Solutions

Patented and high-tech solutions have also proven inequitable for small farmers. Deb asserts that these are not for peasant countries like India, where nearly 80% of farmers operate on less than 5 acres of land. High-yielding varieties have raised the input costs (since fertilizers, pesticides, and the seeds themselves have to be bought every year), making farmers increasingly dependent on markets. At the same time, the prices farmers receive for their harvests have fallen with greater market supply.

At times, in the short run, growing fragile, high-yielding varieties can be profitable. But in the long run, only large landholders are able to weather losses thanks to their other asset classes. Small landholders, Rajeswaran says, don’t have that cushion. They go into debt and face complete ruin. In fact, today in India, more than half of all farming households are in debt, leading to episodes of farmer suicide.

On the surface, reduced drudgery and more yields may seem worth it, which is why so many farmers opt in. “New varieties are being created for higher yields and process mechanization—for doing well in control environments,” Rajeswaran says. “But the real world is not a controlled environment, although we are constantly trying to make it one.”

Nearly three decades since beginning conservation work, Deb remains motivated. He recognizes that some of the farmers requesting his seeds today are the descendants of his original seed sources. They come to him after losing their seeds to high-yielding varieties.

“These ancient farmers never wrote down their discoveries or patented their work, so we are [wrongly] taught to assume they were unscientific,” Deb says. “Our task is to honor their discoveries by conserving these varieties.”

The government has decided to import 50,000 (+/- 5%) tonnes of non-basmati parboiled rice through a Letter of Credit (LC) under the international open tender method.

Traders have until 27 December to submit bids in the tender, according to a notice of Bangladesh's Directorate General of Food published on Monday (12 December).

As per the official notice, total 60% of the rice imports must be done through Chattogram Port and 40% via the Mongla Port.

The notice marks the third rice tender of the current FY2022-23.

LARKANA-The Sindh-Balochistan Rice Millers and Traders Association issued an ultimatum authorities to resolve the simmering problem of issuance of inflated electricity bills to the mills or they would be forced to take extreme steps after Dec 18.

Qamaruddin Gopang, Asad Tunio, central president and general secretary of the association, respectively, said at a press conference at Larkana Press Club that the power distribution companies (Discos) had been sending highly inflated electricity bills to the mills for two months, which they could not afford to pay.

They said that their business had not only suffered heavy losses in the post-rain conditions but it had also led to closure of many mills. Of 2,500 rice mills in both the provinces, 300 had remained completely shut, still they had been sent bills, they said.

They claimed that unprecedented rains and floods had rendered jobless around 500,000 labourers and technical staff employed in the mills. But instead of extending financial assistance to support the rice industry to cope with the drastic damage and losses, the government had refused to provide any relief to the millers even in the calamity-hit areas, they said.

They said that in addition to the inflated bills, a host of taxes -- environment, property, excise, weight and measure, market committee, labour department, food department, Sindh Building Control Authority, municipal taxes paired with sale and purchase tax -- were imposed and collected from the millers.

They regretted the ‘silence’ maintained by federal and provincial government towards the serious issue. How could the millers pay the exorbitant utility bills when the mills were lying closed, they questioned.

It was strange that whenever they approach-ed federal government to seek their help it simply came up with the reply that its powers had been decentralized under the 18th Amendment, so they had better contact the provincial governments to have their issues resolved, they said. They said that presently, they had been sandwiched between federal and provincial governments.

The institutions linked with agriculture had not yet consulted the association regarding the new policy which was quite discouraging, they said.

“We do not want to create trouble for the country’s institutions by declining to pay the bills. Hence, the organisation has time and again written to prime minister, federal minister, secretary and heads of power utilities asking them to resolve the problem but in vain,” they said.

They said in unequivocal terms that rice millers could not pay the highly inflated power bills being sent by SEPCO, HESCO and QESCO as they were barely surviving under the precarious financial conditions.

They demanded the authorities concerned take notice of their genuine problems and provide them relief by taking back the infla-ted bills, or they would be forced to go for extreme step after Dec 18.

The food ministry has extended the deadline to sign contract with rice millers regarding the purchase of the grain by a week to December 15 this year, said a notification.

The announcement comes as the responses from millers to supply the cereal to the state warehouses are low because of high prices in the local market.

The food directorate targets to buy 500,000 tonnes of rice from the ongoing harvest of Aman crops from millers at Tk 42 per kilogramme.

As of yesterday, it has signed the contract for the supply of around 267,000 tonnes with millers, said Md Raihanul Kabir, director of procurement at the Directorate General of Food.

The food ministry initially targeted to complete signing contracts with millers for rice purchase within December 8 this year.

Apart from milled rice, the food office plans to buy 300,000 tonnes of paddy during the current harvesting season of Aman, the second biggest crop providing 39 per cent of total annual rice production.

New variety, a joint work of Chinese and Pakistani researchers, gives 12.5% higher yield

BEIJING:

The Honglian type of hybrid rice, introduced in Pakistan in 2018, has achieved promising harvests in various demonstrative plots as field trials exhibited a 12.5% higher yield, said Zhu Renshan, Director of Wuhan University.

The demonstrative plots where the hybrid rice was planted were in Lahore, Gujranwala, Vehari and Pakpattan in Punjab, Shikarpur and Larkana in Sindh, which covered the main planting regions in Pakistan.

An online session of the 2nd International Cooperation and Development Forum on the Honglian type of hybrid rice was held in Wuhan, China on Friday.

Scientists and officials of China and Pakistan attended the forum to explore cooperation in hybrid rice in the future, China Economic Net (CEN) reported.

“Developing high-yielding hybrid rice is of great significance for the resumption of grain production and economic growth after the flood disaster,” Shahzad Sabir, Director Agriculture Headquarters, Punjab told the forum.

“We sincerely hope Honglian Type Hybrid Rice Joint Research Centre could become a long-term platform for China-Pakistan agricultural science and technology cooperation to safeguard mutual food security and deepen friendship,” he said

The reality is that Indonesia only has 503,000 tonnes of rice in store, well below the level of 1.1 million to 1.5 million tonnes required to maintain sufficiency.

JAKARTA – Each time the government rolls out a plan to import rice, the public reacts with resistance. Understandably, for many Indonesians, rice is considered more than just a staple food, but also a sort of political commodity.

Importing rice is deemed as taboo by some, although such a decision does not necessarily reflect the country’s failure to achieve self-sufficiency. At times, rice import is necessary to avert calamities such as a food crisis, speculator’s intervention, a severe price hike or inflation and thinning Government Rice Reserves (CBP).

Regarding the issue, President Joko “Jokowi” Widodo highlighted during a recent cabinet meeting the urgent need to secure national rice stock for 2023 amid the risk of an imminent food crisis.

“We have to be aware of the food crisis risk since it may trigger social and political unrest. Therefore, anything regarding domestic rice reserves must be calculated carefully and precisely. Do not make a mistake,” Jokowi stated.

The bad news is that to date the State Logistics Agency (Bulog) only has 503,000 tonnes of rice in store, well below the level of 1.1 million to 1.5 million tonnes required to maintain sufficiency. It is estimated that Bulog has to distribute 200,000 tonnes this month, further depleting Bulog’s reserves.

The agency has set a target of securing 1.2 million tonnes by the year-end. The problem is to fill the gap with domestic production, which is in good condition, amidst challenges of surging grain prices.

The price of unhusked rice at local mills has now ranges from Rp 6,000 (39 US cents) to Rp 6,300 per kilogram and this impacts downstream rice prices, which are currently in the range of Rp 11,000 to Rp 12,000 per kg, far above the highest retail price (HET) for medium rice of Rp 9,450 to Rp10,250 per kg.

Consequently, the government has no choice but to give Bulog the green light to import 500,000 tonnes of rice. It will be Indonesia’s first import since Bulog entered the international rice market for a significant volume in 2018.

Let’s not debate over whether the decision is correct. Indonesia is indeed racing against time to secure its staple food for national security’s sake. Timing is crucial to hinder imported goods arriving at the time of Indonesia’s main harvest in early 2023.

The government’s policy of revoking cheap rice and replacing it with Non-Cash Food Assistance (BPNT) as well as its foot-dragging revision of the government purchase price (HPP) policy have been the underlying issues of Bulog’s inability to maintain its rice procurement from the domestic market and stabilize prices.

At the end of the day, to make sure this rice import furor does not recur when the country is entering the critical political year in 2023, it would be appropriate for the government to consider that the procurement of rice for the BPNT program comes only from Bulog’s reserves.

If Bulog is given a chance to once again be the sole supplier of rice for the BPNT, it will be easier for the agency to stabilize rice prices and avoid import amid a local production surplus. In addition, it will ensure the efficient use of the state budget.

LAHORE: Grain and other commodity rates in rupees on Akbari Mandi on Wednesday (December 07, 2022)...

LAHORE: Grain and other commodity rates in rupees on Akbari Mandi on Wednesday (December 07, 2022)

======================================
Per 100 kg
======================================
Sugar                        9000-9100
Gur                        10500-12000
Shakar                     11000-13000
Ghee (16 kg)                 7200-7600
Almond (Kaghzi)            10000-42000
Almond (Simple)            12500-15000
Sogi                       40000-70000
Dry Date                   14000-20000
Chilli (Sabat)             26400-36000
Chilli (Pissi)             25000-31250
Turmeric                   15500-16500
Darchini (large)           26000-28000
Mong (Sabat)               15500-17000
Dal Mong (Chilka)          17000-19000
Dal Mong (Washed)          17500-19500
Dal Mash (Sabat)           29000-31000
Dal Mash (Chilka)          31000-35000
Dal Mash (Washed)          37000-40000
Dal Masoor (Local)         38000-40000
Dal Masoor (impor)         25000-27000
Masoor (salam-impor)       25000-27000
Masoor (salam-local)       30000-35000
Gram White                 26000-37000
Gram Black                 18000-18500
Dal Chana (Thin)           17000-19000
Dal Chana (Thick)          20000-23000
White Kidney Beans
(Lobia)                    20000-22500
Red Kidney Beans
(Lobia)                    32000-35000
--------------------------------------
Rice (per 100 kg)
--------------------------------------
Basmati Super (Old)        28000-29000
Basmati Super (new)        25000-30000
Kainat 1121                19000-32000
Rice Basmati (386)         13000-17000
Basmati broken             13000-16500
--------------------------------------
Tea (per 1 kg)
--------------------------------------
Tea (Black)                    650-980
Tea (Green)                   500-1300
======================================

BUTUAN CITY – About 1,907 rice farmers in Surigao City received PHP2.44 million worth of rice seeds during a distribution conducted by the city government and the Department of Agriculture (DA) 13 (Caraga) from Wednesday until Thursday.

In a statement on Thursday, the Public Information Office (PIO) of the Surigao City government said 3,210 bags of certified palay seeds were distributed during the two-day activity.

“Agriculture, especially rice production, is among the priorities of the present administration of Surigao City government under Mayor Pablo Dumlao II,” the PIO said.

It said the 1,907 farmer beneficiaries came from Surigao City’s 34 barangays.

The distribution of rice seeds is being funded under the DA’s National Rice Program.

The PIO also reported that PHP1,815,255 worth of certified rice seeds was given by the City Agriculture Office (CAO) to the rice farmers in the area in September.

“We are also announcing that the city government of Surigao is set to receive additional aid under the Quick Respond Fund (QRF) of the DA,” it said.

The additional QRF support will consist of 70 bags of certified rice seeds and 100 bags of hybrid rice seeds.

“The city government is also working on the procurement of an additional 315 bags of certified rice seeds with separate funding from the City Disaster and Risk Management Office,” the PIO said.

It said the city government, through the CAO, has yet to schedule the distribution of the additional rice seeds for farmers in the area. (PNA)

Procurement is being planned through National Cooperative Consumers’ Federation

After a gap of four years, the Tamil Nadu Civil Supplies Corporation is planning to procure rice from the open market. 

Initially, it has placed an order for 1.5 lakh tonnes of rice with the National Cooperative Consumers’ Federation (NCCF), a body under the jurisdiction of the Department of Consumer Affairs at the Union Ministry of Consumer Affairs, Food and Public Distribution.  The NCCF, one of the agencies authorised by the TNCSC, has also been procuring paddy too in the State.

The quantity will be helpful in meeting the requirements of beneficiaries covered under the category of Non-Priority Household (NPHH) ration cards.  This is likely to arise in late January and February 2023.  “If required, we may purchase another 1. 5 lakh tonnes,” says a senior official who looks after the Civil Supplies Corporation.. 

The need for the State to procure rice has arisen in the light of the Centre suspending the Open Market Sale Scheme (OMSS), through which the shortfall in requirements were met in the past.  The element of uncertainty over the continuance of the  Pradhan Mantri Garib Kalyan Anna Yojana scheme beyond December, which is meant for distributing  free food grains to the poor, has also contributed to the decision. 

On an average, the monthly off-take of rice under the public distribution system (PDS) is about 3.20 lakh tonnes, of which around 2.76 lakh tonnes are being provided  by the Centre. It is for the balance portion that the State has to approach different sources including  the OMSS.  Except in the case of tide-over allotment which is charged at ₹8.3 per kg, the allotments for the categories of Antyodaya Anna Yojana (AAY) & Priority Households (PHH) are levied at  ₹3 per kg.   The rate fixed by the Central department of Food and Public Distribution for OMSS is ₹23  per kg.  Since August, there has been no sale of rice under the OMSS.. As Tamil Nadu has been following the universal public distribution system and supplying rice free of cost to ration cardholders, it is bearing the entire cost.

Asked how much will be the cost of rice that the government has proposed to procure, the official says it may be around  ₹35 per kg.  

It may be noted that the Centre has determined the economic cost of rice at ₹36.7  per kg for the current year for the purpose of its calculations. 

ISLAMABAD - Pakistani exporters are hoping for a sharp growth in rice export to Azerbaijan following the latter’s decision to waive customs duty on rice import from Pakistan.

Muhammad Kashif-ur-Rehman, Secretary General of Rice Exporters Association of Pakistan (REAP), told WealthPK that exporters are hoping to take full advantage of the relaxation announced by the Azerbaijan government on import of rice from Pakistan. The Azerbaijan government has announced exemption of customs duty on rice import from Pakistan till December 31, 2027. Kashif said that Pakistan’s rice export to Azerbaijan was registered at $1.57 million in 2021, which was only 4.63% of the total rice import of Azerbaijan during that period.

“Pakistan has the potential to boost rice export to Azerbaijan following the waiver of customs duty,” the REAP secretary general said. He was of the view that the tax waiver is also an opportunity for Pakistan to compete with regional rice exporting countries and grab more shares in the Azerbaijan market. He said that Pakistan’s rice exports increased during the last few years and were at the highest at $2.51 billion in 2021-22. Rice exports also remained highest in terms of quantity at 4.87 million metric tonnes (MT) during the last year, he informed. Kashif called upon the government to help exporters find new markets for rice export. “Concessions from various countries in customs duties will increase exports,” he added. Chela Ram Kewlani, Chairman REAP, said in a statement that Pakistan’s rice export to Azerbaijan would be enhanced following the decision of waiving the customs duty. “The decision will not only help in enhancing rice export, but will also increase the volume of bilateral trade between the two countries,” he added.

Kewlani urged rice exporters take maximum advantage of this relaxation. According to the State Statistical Committee of the Republic of Azerbaijan, the country imported 46,765 MT rice in 2021 worth $33.92 million. India was the largest exporter of rice to Azerbaijan having 73% market share worth $24 million, followed by Russia with a share of 9.79% worth $3.32 million, and Kazakhstan with 9.65% share worth $3.27 million in 2021. Pakistan remained the fourth largest rice exporter to Azerbaijan with a market share of 4.63% worth $ 1.57 million during last year. According to the World Bank, population of Azerbaijan is 10.14 million, and rice is among the main food items of most of the people in the country.

According to the State Bank of Pakistan (SBP), rice export to Azerbaijan was registered at $242,000 during first quarter (July-September) of the current fiscal year against $158,000 during the same period of last year, with an increase of 53.16%. In September 2022, Pakistan’s rice export to Azerbaijan grew by 110% and rose to $82,000 from $39,000 during the corresponding month of last year. Kenya, China, Afghanistan, Indonesia, Kazakhstan, Tanzania and other Gulf and European countries are the major buyers of Pakistani rice.

'As of now, there has been no confirmation from the authorities and the response from the embassy in Tehran is also taking time'

The development is crucial, considering that Iran is India’s key export market for basmati rice and high quality tea.

The department of commerce has urged the agriculture ministry as well as the diplomatic mission in Tehran to apprise it of details as to why Iranian buyers have stopped import of rice and tea from India, a senior government official said.

Exporters said that exports of items such as high quality tea and rice have stopped since last week.

As of now, there has been no confirmation from the authorities and the response from the embassy in Tehran is also taking time, they said.

“This has been a big concern since India exports high quality orthodox tea to Iran in big quantities. Assam orthodox tea goes to Iran in high volume. There is a huge demand for Indian tea in the Iran market.

We have reached out to the department of commerce, DGFT and the embassy in Tehran. We want to understand why buyers have suddenly stopped purchasing tea and rice from India,” said Sujit Patra, secretary (exports), Indian Tea Association.

“Market reports say that Iran’s agriculture ministry has stopped order registration of proforma.

Before importing, a buyer has to get a proforma registration issued from Iran’s agriculture ministry.

Since issuance of the proforma has stopped, Iran’s Customs will not allow any ship to call at any Iran port. So, Indian exporters are not able to send tea consignments to Iran,” Patra added.

The development is crucial, considering that Iran is India’s key export market for basmati rice and high quality tea.

A fifth of India's total outbound shipment of tea is sent to Iran.

Rice exporters said that disruption in trade has been triggered by anti-hijab protests in Iran. As a result, Iranian buyers have been defaulting on payment obligations and are placing fresh orders, they said.

Similarly, in the case of basmati rice, a fourth of the total exports from India went to Iran during the last financial year.

Top Indian exports to Iran include rice, tea, sugar, fresh fruits, pharmaceuticals, soft drinks, industrial machinery and boneless bovine meat, among others.

During April-September, bilateral trade between India and Iran stood at $1.3 billion, with exports at $1 billion and imports at $306 million. Total trade increased by 59.9 per cent compared to the previous year.

Shellfish and wine could also be in danger—but there are ways to prevent extinction.

Climate change is threatening future crops, and some of the losses we’ll experience might be staggering. It’s hard to imagine the world that far ahead into the future, but decades from now, it’s increasingly likely that many global food sources, from indulgent treats to staple crops, will cease to exist.

“A number of foods that we hold very dear to our hearts and largely take for granted are under a real threat,” said former White House chef Sam Kass in a recent interview with People. “And you’re seeing in the future, we’re on track for a lot of those to become quite scarce and some really to be largely unavailable to most people and others just significantly increased in cost.”

Such products include wine, chocolate, coffee, shellfish, and rice, Kass notes. We’ve known for some time that coffee plants are in serious danger due to climate change, but the idea that it might be 100% impossible to obtain within our lifetimes is a less than welcome thought. And of course losing access to rice, a grain that feeds practically everyone on the planet, is virtually unthinkable.

Rice production in particular releases an estimated 34 million tons of methane per year, released by microbes that grow in the flooded fields where rice is cultivated. It’s an unsustainable practice, to say the least.

So what’s the solution to crop extinction?

Kass suggests that while eating less red meat and including more whole grains and beans into your diet will go a long way, regenerative farming practices are where we should be headed.

Regenerative farming, also called regenerative agriculture, is a practice you’ll likely hear much more about in the near future. It’s a holistic approach to agriculture that works in tandem with nature instead of against it, meaning that farming plays a role in the overall health of an ecosystem. The Chesapeake Bay Foundation explains regenerative farming using five basic principles:

• Minimizing soil disturbances, meaning soil isn’t agitated in physical or chemical ways, so as to prevent disruption of natural processes
• Soil coverage, ensuring that all soil is covered in vegetation or natural ground cover (like mulch)
• Increased plant diversity to keep the ecosystem varied and healthy
• Keeping roots established underground, which helps ensure that soil can capture excess water and not lose nutrients or moisture
• Integrating farm animals into the process, i.e. using manure as fertilizer to help soil stay nutrient dense without chemical/commercial fertilizers

The hope is that by using these techniques, they become normalized and adopted across agriculture to prepare for the coming decades. Changing the existing agricultural standards is a monumental task, but if our food system can learn to keep crops in tune with nature, we can capture carbon and stay fed in the process.

I sure hope that’s where we’re headed, at least. I love my morning cup of coffee.

Exports of broken rice increased 33.37 per cent to 23.82 lakh tonne during April-September FY23 as against 17.86 lakh tonne in the year-ago period, Parliament was informed on Wednesday

Exports of broken rice increased 33.37 per cent to 23.82 lakh tonne during April-September FY23 as against 17.86 lakh tonne in the year-ago period, Parliament was informed on Wednesday.

Minister of State for Commerce and Industry Anupriya Patel said there has been a sudden increase in demand for the Indian broken rice in the international market due to geo-political reasons.

"India's exports of broken rice have increased from 17.86 Lakh MT in 2021-22(April- September) to 23.82 Lakh MT in 2022-23 (April-September), registering a growth of 33.37 per cent," she said in a reply to the Lok Sabha.

The minister added that the export has increased about three times in the last four years from 12.21 lakh tonne in 2018-19 to 38.90 lakh tonne in 2021-22 in volume terms.

In value terms also, shipments rose from USD 369.58 million in 2018-19 to USD 1.13 billion in 2021-22.

Broken rice is mainly used for ethanol production and as poultry and cattle feed.

Citing the first advance estimates for 2022-23, released by Directorate of Economics and Statistics, she said the production of rice is estimated to be lower than the target fixed for the current year.

"Therefore, in order to ensure adequate availability of broken rice in the domestic market, the government has prohibited export of broken rice with effect from September 9, 2022," Patel said.

In a separate reply, she said there is no proposal at this stage to offer export subsidies to pulse traders.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Wheat export registered an increase of 70% to $ 1.5 billion in April-October 2022-23 from $ 886 million reported during the same period previous fiscal.

The agri-exports in previous fiscal was close to 20% more than FY21. (File)

Exports of agricultural and processed food products rose 19% to $ 15.2 billion during April-October (2022-23) compared to the same period last year, driven by spike in shipment of rice, fruits and vegetables, livestock and dairy products.

According to provisional data released by the Directorate General of Commercial Intelligence and Statistics, the value of Basmati rice exports rose by more than 37% in the first seven months of current fiscal to $ 2.5 billion in the first seven months of the current fiscal year. The shipment of non-Basmati rice registered a growth of 8% to $ 3.2 billion during the period.

Export realisation from shipment of aromatic long grain Basmati rice grew by 23% to $1056/tonne in the April – October, 2022-23 period from $ 857/tonne realized in same period previous year. Non-basmati Rice exports are likely to decline in the second half of the current fiscal, as India has imposed a ban on broken rice exports and imposed a 20% export tax on white rice.  

Wheat export registered an increase of 70% to $ 1.5 billion in April-October 2022-23 from $ 886 million reported during the same period previous fiscal.

India had banned shipment of wheat in May while allowing only those consignments aimed at meeting food security needs of developing countries. In the current fiscal, India has exported 4.6 million tonne (MT) of wheat so far while 7 MT of grain was shipped in FY22.

For the current fiscal, an export target of $ 23.5 billion has been set by Agricultural and Processed Food Products Exports Authority (APEDA). Other key agricultural products exported from the country include marine products, spices, tea, coffee and tobacco

Exports of products under APEDA basket was $ 25.6 billion in 2021-22, which was around 51% of  the country’s total agricultural goods exports of more than $ 50 billion. The agri-exports in previous fiscal was close to 20% more than FY21.

The export of meat, dairy and poultry products rose by 5%  to $ 2.3 billion during April-October period of current fiscal compared to previous year. The dairy products alone registered a growth of 43% to $ 380 million during the same period.

 “We have been working in collaboration with the key stakeholders such as farmers, exporters, and processors to ensure that quality agricultural and processed food products are exported from the country.” M Angamuthu, Chairman, APEDA, said.

The rise in the export of agricultural and processed food products is the outcome of the centre’s initiatives for export promotion of agricultural and processed food products such as organising B2B exhibitions in different countries, exploring new potential markets through product-specific and general marketing campaigns by the active involvement of Indian Embassies.

 Meanwhile, the government has formulated a strategy to boost exports of nutri-cereals – millets and valued added products focusing on the key markets including USA, United Kingdom, Belgium, Netherlands, Japan, United Arab Emirates and Saudi Arabia.

As part of the promotion of Indian millets exports, APEDA has planned to showcase millets and its value-added product at various global platforms such as Gulfood 2023, Foodex, Seoul Food & Hotel Show, Saudi Agro Food, Fine Food Show in Sydney (Australia), Belgium’s Food & Beverages Show, Germany’s BioFach and Anuga Food Fair, San Francisco’s Winter Fancy Food Show, etc

HAMBURG: Bangladesh’s state grains buyer has issued an international tender to purchase 50,000 tonnes of rice, traders said on Tuesday. The deadline for submission of price offers is Dec. 21.

The tender seeks price offers for non-basmati parboiled rice in CIF liner out terms, including ship unloading costs, for shipment to the ports of Chattogram and Mongla.

Asia rice: Thailand, Vietnam bank on new deals; few eye cheaper India supply

The rice can come from worldwide origins and shipment is required 40 days after contract award.

India is working on developing the "world's largest grain storage" program, Indian news outlet Mint reported on Monday, citing two people aware of the development. The proposal comes amid rising global food prices in the wake of disruptions caused by the Russia-Ukraine conflict and the COVID-19 pandemic, the report claimed.

The disruptions in global food supply chain have increased food security concerns in many countries, including India. It is understandable that some Indian officials have taken a positive attitude toward a grain stockpiling program, which aims to ensure India's food security, but it will not be easy to achieve those goals.

There are both short-term and long-term challenges ahead for India. India's federally held cereal stocks have declined to a five-year low as extreme weather pummeled both winter-sown wheat and summer-sown rice crops, driving up retail food prices to a 22-month high, the Hindustan Times reported in October.

A prolonged heatwave in March crimped India's wheat output, prompting New Delhi to ban wheat exports without prior government approval in May as domestic supplies dwindled. In September, the government also banned the export of broken rice with an aim to increase domestic availability. India's moves in this regard have drawn criticism from the West. Last week, India lifted the ban on exports of organic non-basmati rice, including broken rice. Although the announcement is welcomed as it will increase global rice supply, this may also add difficulties for the country to develop the "world's largest grain storage" program.

We cannot be blindly optimistic, too, in the long run. India, despite having large areas of arable land, suffers from low productivity. The Global Food Policy Report 2022 has warned that climate change may push many Indians toward hunger by 2030 due to a decline in agricultural production and disruption in food supply chain, Outlook India Magazine reported in May.

While it is certainly necessary to pile up grain reserves, the main difficulty lies in how India can ensure domestic supply and food price stability, avoid hunger and poverty, ensure reasonable growth in grain exports, and maintain its export competitiveness, at the same time develop the "world's largest grain storage" program. We believe India's agricultural policies are aimed at achieving multiple goals, rather than a solitary effort to pile up grain reserves.

At the very least, India has limited room to reduce domestic grain supply and allow food prices to rise beyond a certain level, because this will put further pressure on overall inflation, which eased to a three-month low of 6.77 percent in October but remained above central bank's tolerance limit.

If India wants to pile up grain reserves, the country has no choice but to achieve an increase of grain production. Seed, irrigation, and fertilizers need to be vastly improved, helping farmers increase yields. Advances in machinery, artificial intelligence, satellite imagery, and other emerging technologies could also improve the efficiency of inputs and further increase yields. In this regard, China and India have broad space for cooperation in the fields of agricultural infrastructure, finance, and agricultural technology.

China achieves one-fourth of the world's total grain production and feeds one-fifth of the global population with less than nine percent of the land on earth. In recent years, China has actively promoted cooperation in agricultural science and technology innovation.

China and India, two nations with a profound culture and long history of farming, are both a large agricultural producer, consumer and trader. The two countries should strengthen agricultural cooperation under bilateral or multilateral frameworks such as BRICS.

In recent years, BRICS countries have made continuous efforts to establish a long-term and stable cooperation mechanism focusing on food security. Agricultural cooperation enjoys potential because they are mutually beneficial.

There is no clarification from Iran for the stoppage but exporters believe that it is due to widespread anti-hijab protests in the country

Last week, Iran has stopped signing all contracts to import tea and basmati rice from India. There is no clarification from Iran for the stoppage, but exporters believe that it is due to widespread anti-hijab protests in the country, as the Economic Times (ET) reported. Shops, hotels and markets have remained closed since the start of the protest nearly two months ago.

Several experts have expressed that this might also be because India and Iran are working on the rupee trade settlement agreement. The report added that Iran imports around 30-35 million kg of orthodox tea and 1.5 million kg of basmati rice from India every year.

"There is no clarity on why suddenly this has happened. We have asked the Iranian buyers but they do not have any clear answer...We have informed the Tea Board and we are waiting for some clarity," Anish Bhansali, managing partner of Bhansali & Company, told ET.

However, the impact on basmati rice may be lesser as their exports have risen amid high demand from other countries. This is also due to high commodity prices globally amid the Russia-Ukraine war.

In the first eight months of 2022, between January and August, exports of tea from India increased by 14.8 per cent year-on-year (YoY) to 140.28 million kilograms, according to Tea Board data. During the January-August period in 2021, the shipments stood at 122.18 million kilograms (mkg).

However, tea shipments to Iran failed to increase due to economic sanctions imposed by the US on Iran, a report by PTI said earlier in November. Exports to that country marginally increased to 16.40 mkg in the January-August period as compared to 16.06 mkg in the corresponding period last year.

Tea exports rose marginally in other countries also, due to higher shipping and container costs which skyrocketed due to the war between Russia and Ukraine.

MUMBAI/HANOI/ BANGKOK/ DHAKA: Rice export prices rose across major Asian hubs this week on robust demand emerging out of Indonesia, with some buyers switching to the cheaper Indian variety.

Vietnam’s 5% broken rice was offered at $440-$445 per tonne, free-on-board, up from $438 a week ago. “Prices are rising on strong demand, especially from Indonesia’s food procurement agency Bulog,” a trader based in Ho Chi Minh City said.

“The rise in Vietnam’s prices could have prompted a Cuban buyer to switch to buy cheaper grain from India,” the trader said, adding a vessel is loading 28,000 tonnes at Kakinada port, in the southern Indian state of Andhra Pradesh for delivery to Cuba

Moreover, traders said domestic supplies are running low, which will likely keep Vietnamese rice prices at high levels over the next few weeks.

Top exporter India’s 5% broken parboiled variety was quoted at $375 to $380 per tonne, up from last week’s $373-$378. “Indian rice is available at a discount.

It is prompting buyers to switch to India from other supplying countries,” said an exporter based at Kakinada in southern state of Andhra Pradesh.

India’s exports of premium basmati rice are likely to jump 15% over last year as key buyers in the Middle East build their inventories despite prices jumping by nearly a quarter.

Thailand’s 5% broken rice prices rose to $427-$440 per tonne this week from $419-$425 last week, with traders attributing the gains to news of new deals on the table.

BAKU, Azerbaijan, December 1. A total of 11,558 tons of rice have been harvested from the Azerbaijani fields as of yet, which was 858 tons more than in 2021, Trend reports citing the country's Ministry of Agriculture.

The average yield of rice was 36.2 centners per hectare, up by 1.4 centners per hectare against the average yield of 2021.

According to the ministry, the total area of ​​rice fields equals 3,194 hectares. The majority of the rice crop was sown in Lankaran (802 hectares), Aghdash (681 hectares) and Ujar (678 hectares) districts.

The Ministry of Agriculture says that rice harvesting is a traditional branch of the country's agriculture. In recent years, the country has further strengthened support for this industry and taken a number of measures to increase sown areas and production.

According to the Agricultural Subsidy Council's decision, farmers are provided with a sowing subsidy of 360 manat ($211.6) for each hectare of cultivated rice.

Rice is the third-highest produced agricultural commodity in the world and accounts for a fifth of the calories consumed by humans worldwide. As a staple food for several billion people, particularly in Asia and Africa, it plays an important role in the food security of the global poor. Governments around the world use various measures to maintain its supply and price.

India is the second-largest producer of rice with a total production of 130 million metric tons (MMT) during the 2021-22 crop year. It is also the largest exporter of rice in the world accounting for 40 percent of global shipments. Despite a sharp increase in rice production from India from 2000-2020, the area harvested has remained relatively stable owing to a consistently rising yield.

The sharp rise in rice production in India over the past two decades can only be partly explained by the rise in exports. Production has increased by 50 MMT since 2000, but exports increased by only 10 MMT over the same period. Increasing population and domestic demand might also be factors driving the production increase.

However, perhaps the most important factor is the incentives created by government. The Food Corporation of India (FCI) buys rice and other agricultural commodities from farmers at a minimum support price (MSP), set by the government on an annual basis. The MSPs act as price floors for farmers and ensure that domestic prices never fall below it.

The government essentially guarantees procurement at the minimum price every year, so it has built massive stockholdings of rice and other food commodities. These stocks are used by the government in their public distribution schemes to the poor. The MSP policy therefore allows the government to control the domestic price of rice and isolate it from fluctuations in the international price. Although there is significant geographic inequality in procurement by the FCI, the amount of rice procured in recent years amounts to over a third of all rice produced in India. Therefore, the policy has a large effect on rice production.

Farmers in India, and other emerging markets with similar government interventions, do not base their production decisions solely on market prices. The incentives created by government schemes play a huge role in their choices and might influence the prices themselves. This makes rice production and prices in India relatively more stable than an economy like the United States and explains why the area used for rice cultivation remains relatively steady.

Since India is the world’s largest rice exporter, the policies implemented by the government also affect the rest of the world. Indian government subsidies are passed onto to the international market in the form of stable supply and prices. That is one reason why rice prices haven’t been as volatile as other agricultural commodities in the past decade.

However, the reliance on India also exposes the international market to potential shocks. For example, this year in September, the Indian government banned the export of broken rice and imposed a 20 percent export tax on several other varieties. This might have huge implications for global rice prices and food insecurity in developing countries.

Taiwan is another example of a country where rice production isn’t as tightly connected to the international market because of government intervention. Producer prices in Taiwan have some correlation to the world price, but they are much more stable. Like in the Indian case, the change in the area harvested and prices for rice are also more stable in Taiwan than the United States.

Taiwan also has a price support program for rice, which has existed since 1974. Farmers can sell a fixed amount of rice per hectare to the government at a guaranteed price. Businesses are allowed to import and export rice freely since 2002, but they must pay an import tax if they exceed a quota (10 percent of total rice consumption). The tax is about twice the average world price per kilogram.

Under these conditions, farmers’ decisions aren’t influenced very much by global prices. Dramatic changes in production occur because of government policies, not prices. In 2021, the area harvested with rice dropped 14.4 percent compared to the previous year when the world price had only dropped by 0.23 percent. The major reason for the decrease in production was that the Taiwanese government had stopped about 20 percent of irrigation services because of a severe drought.

Markets for essential food commodities in many countries, especially developing countries that have an incentive to prevent fluctuations in these markets, get distorted by government intervention. The production decisions of farmers in these countries are largely determined by local government policies that either try to control the price directly or offer other incentives that make prices less important in the decision.

Separating production decisions from world prices can affect the incentive to invest in improving productivity and can have massive implications for the availability of food commodities to the world, especially in the case of large exporters like India.

Kala Jeera rice cultivation and its marketing through an e-commerce platform bring better income and social status to women farmers, while also ensuring storage of good quality seeds for future needs

Koraput, Odisha: Odisha’s near-extinct Kala Jeera rice is making a comeback, thanks to the tribal women who are cultivating and marketing it to the outside world from Machhara village in Koraput district with the help of MS Swaminathan Research Foundation (MSSRF), Jeypore, and Odisha Rural Development and Marketing Society (ORMAS).

A traditional variety with a distinct aroma and nutty taste, Kala Jeera rice grains resemble cumin seeds. It has medicinal properties that help increase haemoglobin levels.

Researchers had warned that Kala Jeera rice would gradually vanish in 12 years, but the village women brought about the much-needed change. In fact, Kala Jeera seeds sowed by them also reaped the fruits of financial freedom.

Eight years on, over 100 women farmers in Machhara and nearby villages are now involved in Kala Jeera rice production. They have formed a collective — Sabari Producer Group — which not only cultivates the rice but also collects, processes, brands and sells it on the e-commerce platform Amazon.

Apart from Machhara, the group purchases Kala Jeera from farmers in over 10 nearby villages, including Mandia, Bajra, Suan, Dangarrani, Sukriguda, Bodapadar, Podeiguda and Mendhaguda.

“Most people in our village belong to Poraja, Godaba and Bhumiyan communities. Traditionally, we cultivate rice to feed our families. We also worked under the MGNREGA scheme. Even then, we could barely manage to keep ourselves alive,” Machhara-based Chitta Chendia, who now has three acres under Kala Jeera rice cultivation, tells 101Reporters.

She says adopting Kala Jeera variety has enhanced her source of income as it is priced at Rs 25 to 30 per kg in the market against the Rs 15 of a basic paddy variety. “If you cultivate basic paddy on three acres, you get Rs 50,000 to 70,000 per harvest cycle (once in a year); for Kala Jeera rice covering the same area, you get around Rs 2 lakh per cycle,” she elaborates, adding how she earns enough to send children to school now.

According to Daimati Chendy, not everyone was involved in farming Kala Jeera initially. But on realising the demand for the product on Amazon, many women joined the initiative. From just 30, the number of cultivators has grown to over 100 in the last eight years. “Even landless women now take up cultivation in plots on lease,” Chendy says.

Sita Jani of Machhara expanded her Kala Jeera cultivation by getting another plot on lease, apart from utilising her small piece of land. Seeds are available easily and at affordable prices, and there is no struggle to sell the produce either, she says.

“Due to our successful enterprise, the women of our village are seen differently now. We got opportunities to visit big cities and talk to people as equals. Even men respect us more and want to help us so that we can bring in more money home,” says Haribola Sukia.

Traditional farming practices are employed in Kala Jeera cultivation, which is fully organic. “Instead of chemical fertilisers, we make organic manure using readily available components such as cow urine and leaves of neem, papaya and pomegranate, among others,” explains Jani.

Additionally, the researchers at the MSSRF have trained the villagers of Koraput district to enhance productivity while staying true to traditional methods. “Using our traditional knowledge, we could grow three quintals of Kala Jeera rice in an acre. After training, we now harvest 10 to 15 quintals from the same land,” she says.

According to Surajita Turuk, the MSSRF field officer and officer-in-charge of Machhara village, traditional fertilisers and seed purification methods used by tribals for generations are the easiest ways to ensure organic farming. “We have branded them as Jibamruta and Bijamruta.”

“Seeds for the seed bank are collected from relatives and surrounding villagers, and then distributed among beneficiary farmers. We have a special committee for the seed bank,” Haribola Pitia explains.

Anyone who gets seeds from the bank has to return more seeds than they have taken. This is the rule, though it varies from village to village. “In Machhara, if someone takes 10 kg of seed, she has to return 12 to 13 kg. In Kundra, you have to return 14 kg for every 10 kg taken,” informs Pitia.

Before the sowing season, villagers get together to identify good quality seeds and decide on the quantity to be distributed in each area. They will also reach an understanding of how to collect the seeds back from the beneficiary.

Due to these efforts, Koraput district today stands as a fine example of community participation for biodiversity conservation.

* Country earns $181.852m by exporting 173,684 metric tons of Basmati Rice compared to exports of 229,791 metric tons worth $198.5m of same period last year

Rice valuing $545.708 million exported during the first four months of current financial year as against the exports of $594.600 million of the corresponding period of last year.

During the period from July-October, 2022 about 965,360 metric tons of rice exported as compared to the exports of 1.091 million tons of same period last year, according to the data of the Pakistan Bureau of Statistics.

Rice exports from the country during the period under review recorded negative growth of 8.22 percent as compared to the exports of the same period last year, whereas overall food group exports recorded about 4.27 percent increase and food commodities worth $1.493 billion exported in four months of the current financial year.

The country earned $181.852 million by exporting about 173,684 metric tons of Basmati Rice as compared the exports of 229,791 metric tons worth $198.526 million of the same period last year.

Meanwhile, 791,676 metric tons of rice other than Basmati valuing $363.856 million also exported in the last four months as against the exports of 861,199 metric tons valuing 386.074 million of the same period last year. It is worth mentioning here that rice production in the country during the last season was estimated at 5.53 million tons as the crop sown over 2.99 million hectares of land.

During the period under review about 50,859 metric tons of fish and fish preparations valuing $134.595 million and 26,747 metric tons of meat and meat products worth $129.197 also exported. Meanwhile, Federal Minister for Finance and Revenue Senator, Mohammad Ishaq Dar, here on Monday expressed satisfaction over the availability and production of sugar in the country. Chairing a meeting to review the demand and supply situation of sugar in the country, the minister stressed on maintaining the strategic reserves of the commodity and maintaining its price for providing maximum relief to masses.

Among others, the meeting was attended by Federal Minister for National Food Security and Research (NFS&R), Tariq Bashir Cheema; Special Assistant to Prime Minister (SAPM) on Finance, Tariq Bajwa, SAPM on Revenue, Tariq Mehmood Pasha, Secretary NFS&R, Special Secretary Finance and other senior officers from Finance and NFS&R. Earlier, the meeting reviewed the available stock position and future demand of sugar in the country and was apprised that sufficient stocks of sugar are available in the country, according to press statement issued by finance ministry.

It was informed that sugar mills have started crushing the sugar cane in Sindh and Punjab provinces, it said adding the participants were also apprised that production of sugar in the province of Sindh would be less than last year due to floods.

Continued carbon emissions would significantly reduce rice and coffee production in Indonesia -- one of the world's top producers of both crops -- according to a study

Continued carbon emissions would significantly reduce rice and coffee production in Indonesia -- one of the world's top producers of both crops -- according to a groundbreaking study that will be published by a team of scientists led by a co-chair of the UN's climate science panel.

The study, titled "Impact of Climate Change in Indonesian Agriculture", found that continued climate change would cut Indonesia's rice production by millions of tons a year, cutting exports by a third and leading to price increases of more than 50 per cent.

Lower emissions would still lead to reduced rice yields and price rises -- but to a lesser extent.

Indonesia is the world's fourth-largest rice producer, and these cuts to yields could be expected to have a disastrous effect on the world's poorest people.

Food price rises this year, following Russia's invasion of Ukraine, have been a major factor behind increased hunger globally.

Lead author, Edvin Aldrian, said: "Our report shows the stark contrast between a world in which emissions are high, and one where emissions fall. There are significant economic incentives to increasing efforts to cut emissions, to save ourselves from the devastating impacts we would otherwise see."

Coffee production would also decrease under continued emissions -- with high emissions, Indonesia's coffee exports may fall around 2-35 per cent.

The scientists project an increase in coffee prices for both Arabica and Robusta bean varieties of around 32 per cent by 2050 and 56-109 per cent between 2050 and 2100.

Although the study focuses mainly on Indonesia's economic and food security, it is clear that Indonesia's decreased coffee and rice outputs will affect the global supply chain, and producers elsewhere may see similar effects.

Sea level rise will increase salinization, flooding, and the loss of rice fields in coastal areas. The report shows that climate impacts will reduce Indonesian rice production by 3.5 million tons or equivalent to fulfilling the rice consumption of 17.7 million people.

Without serious mitigation efforts to shift away from fossil fuels globally, sea level rise may increase saltiness of soils, which will cause a 50 per cent loss of productivity amounting to a decreased production of 8 million tons or equivalent to the rice consumption of 42 million people.

This means that there will be a significant increase in world rice prices due to increased demand. Countries with significant agricultural production in their coastal areas will also be impacted in a similar manner.

According to Elza Surmaini, an author of the study from BRIN -- Indonesia's main governmental research agency, "extreme climate conditions cause a significant reduction in planted area and agricultural production. We must enhance our adaptation and mitigation efforts to ensure food security".

"Without a significant increase in mitigation efforts, the number of days where the temperature and rainfall conditions are optimal for coffee cultivation in Indonesia will be reduced by 50 per cent by the end of the century," reports Supari, a study author from BMKG --Indonesia's meteorological agency.

These results clearly show how improved climate change mitigation actions are needed to avert the world from more catastrophic climate change impacts. The level of disruption climate change could have on Indonesia's agricultural sector would affect the world's agricultural supply chain. The only way this can be prevented is with faster action to reduce carbon emissions.

Perdinan, a study author from IPB -- Indonesia's foremost agricultural institute, said: "The economic costs of the impacts of continued climate change on agricultural production show it is essential to make stronger commitments to manage climate risks and stabilize food supply, which are essential for achieving Indonesia's development targets."

--IANS

vg/ksk/

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

The Villupuram police on Monday arrested a truck driver for transporting 3,600 kg of rice meant for public distribution through ration shops to the open market

The Villupuram police on Monday arrested a truck driver for transporting 3,600 kg of rice meant for public distribution through ration shops to the open market.

Lorry driver K. Krishnamoorthy (32) of Thandrampattu in Tiruvannamalai district was arrested for transporting the smuggled rice.

The Civil supplies flying squad of Tamil Nadu got a tip-off that some people were engaged in the smuggling of rice meant for ration distribution. Based on the input, the flying squad and Villupuram police conducted searches of lorries at Valathi checkpost. It was found that ration rice sacks were in a lorry driven by Krishnamoorthy and it was being sent to the open market.

It may be noted that a cartel has been working in Tamil Nadu involved in smuggling rice meant for distribution in ration shops to other bordering states like Kerala and Andhra Pradesh.

In some cases, the ration rice is sold in the open market at a premium price and the Tamil Nadu Civil supplies flying squad has posted many informers in the market.

Tamil Nadu Civil Supplies department has been taking measures to prevent the smuggling of rice and other Public Distribution System (PDS) materials.

--IANS

aal/shb/

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

THE rice inventory at the beginning of October increased 6.5% year on year to 2.08 million metric tons (MT), according to the Philippine Statistics Authority (PSA).

In a report issued Nov. 25, the PSA said that month on month, the October rice inventory rose 43.5%.

Rice held by households as of Oct. 1 rose 10.7% year on year to 1.17 million MT while inventory held by commercial warehouses, wholesalers, and retailers increased 9.5% to 798,120 MT.

Stocks held by National Food Authority (NFA) depositories fell 33.2% to 111,040 MT.

Compared to September levels, the PSA said that household rice rose 65.1% while inventory held by commercial warehouses rose 27.1%. NFA stocks dropped 1.2%.

“As of Oct. 1, 2022, 56.3% of the total rice stocks were from households, 38.3% from commercial warehouses/wholesalers/retailers, and 5.3% from NFA depositories,” the PSA said.

Meanwhile, the PSA said that total corn stocks increased 40.2% year on year to 720,600 MT as of Oct. 1.

Month on month, corn stocks rose 28.3%.

During the period, corn held by households dropped 1.5% year on year to 210,040 MT while stocks held by commercial warehouses rose 69.8% to 510,570 MT.

Compared to September, corn held by households rose 119.4% while commercial warehouse inventories rose 9.6%.

“Of this month’s total corn stocks inventory, 70.9% were from commercial warehouses/wholesalers/retailers, and 29.1% were from the households,” the PSA said.  — Revin Mikhael D. Ochave 

Cameroon: Kuwait pledges CFA13 billion for the rice sector in the Far North

(Business in Cameroon) - The Government of Kuwait announced the disbursement of CFA13 billion to support the development of the rice sector in the Far North. The information was revealed by Abduiridha Bahmen, who heads the Kuwait Fund delegation, during a meeting with the Cameroonian Minister of Agriculture, Gabriel Mbairobe, on November 25.

This funding, which is currently being finalized, will enable the implementation of the rice value chain development project in the region to increase national rice production by 4% each year. According to reliable information, the initiative will involve 160,000 producers and about 700,000 households.

This initiative, which is in line with the government's import-substitution policy, should help reduce the country's rice imports. Rice purchases swallow an average of CFA100 billion each year, according to official estimates.

BRM

Azerbaijan approves five-year tax exemption on the import of Pakistani rice

ISLAMABAD: Azerbaijan has approved a five-year tax exemption on the import of rice from Pakistan.

Prime Minister Shehbaz Sharif on Saturday thanked Azerbaijan’s President Ilham Aliyev for the decision.

"I am thankful to H.E. Ilham Aliyev, President of Azerbaijan, for approving the tax exemption on the import of Pakistani rice for five years. Our two brotherly countries will work to promote economic cooperation and connectivity through road, rail and Gwadar Port," the prime minister wrote on Twitter.

The prime minister's tweet came in response to the Azeri president's remarks that the decision to import rice from Pakistan with a tax exemption of five years was the outcome of his meetings with the Pakistani premier held in the last couple of months.

Aliyev, addressing an international conference at ADA University, Baku, the other day, said that during these meetings, they discussed the agenda of their bilateral relations.

The president of Azerbaijan was responding to the questions raised by a Pakistani participant.

The president said that he discussed with Prime Minister Shehbaz the prospects of further intensifying the bilateral economic and trade cooperation and the decision over special regulations for rice from Pakistan, was a reflection of that.

He said that they had decided to take this step in order to stimulate the growth of mutual trade between the two countries.

He had discussed with Prime Minister Shehbaz what kind of goods they could provide to each other, he added.

"Why should we buy rice from some other place if we have high-quality rice in a brotherly country? So, that decision was clearly based on our brotherly relations," the Azeri media quoted the president as saying.

Commenting further, the president said that his country enjoyed excellent relations with Pakistan.

"We are very grateful to Pakistan for the continuous support that the country demonstrates with respect to Azerbaijan-Armenia relations. During the times of occupation, during the war, and after the liberation of our territories, Pakistan was always with us, and this political and moral support is highly appreciated by the people of Azerbaijan,” President Aliyev said.

He further said that he knew that the Gwadar Port of Pakistan was transforming into a big international hub and connecting it with their infrastructure was not a difficult thing as they had to properly address the issue of tariffs, legal framework, coordination on regulation, and have teamwork.

* Country earns $181.852m by exporting 173,684 metric tons of Basmati Rice compared to exports of 229,791 metric tons worth $198.5m of same period last year

Rice valuing $545.708 million exported during the first four months of current financial year as against the exports of $594.600 million of the corresponding period of last year.

During the period from July-October, 2022 about 965,360 metric tons of rice exported as compared to the exports of 1.091 million tons of same period last year, according to the data of the Pakistan Bureau of Statistics.

Rice exports from the country during the period under review recorded negative growth of 8.22 percent as compared to the exports of the same period last year, whereas overall food group exports recorded about 4.27 percent increase and food commodities worth $1.493 billion exported in four months of the current financial year.

The country earned $181.852 million by exporting about 173,684 metric tons of Basmati Rice as compared the exports of 229,791 metric tons worth $198.526 million of the same period last year.

Meanwhile, 791,676 metric tons of rice other than Basmati valuing $363.856 million also exported in the last four months as against the exports of 861,199 metric tons valuing 386.074 million of the same period last year. It is worth mentioning here that rice production in the country during the last season was estimated at 5.53 million tons as the crop sown over 2.99 million hectares of land.

During the period under review about 50,859 metric tons of fish and fish preparations valuing $134.595 million and 26,747 metric tons of meat and meat products worth $129.197 also exported. Meanwhile, Federal Minister for Finance and Revenue Senator, Mohammad Ishaq Dar, here on Monday expressed satisfaction over the availability and production of sugar in the country. Chairing a meeting to review the demand and supply situation of sugar in the country, the minister stressed on maintaining the strategic reserves of the commodity and maintaining its price for providing maximum relief to masses.

Among others, the meeting was attended by Federal Minister for National Food Security and Research (NFS&R), Tariq Bashir Cheema; Special Assistant to Prime Minister (SAPM) on Finance, Tariq Bajwa, SAPM on Revenue, Tariq Mehmood Pasha, Secretary NFS&R, Special Secretary Finance and other senior officers from Finance and NFS&R. Earlier, the meeting reviewed the available stock position and future demand of sugar in the country and was apprised that sufficient stocks of sugar are available in the country, according to press statement issued by finance ministry.

It was informed that sugar mills have started crushing the sugar cane in Sindh and Punjab provinces, it said adding the participants were also apprised that production of sugar in the province of Sindh would be less than last year due to floods.

About 20 villages in Paletwa township in southern Chin state encountered a serious rat infestation problem causing devastation to their rice-paddies. Without anything left to harvest local farmers are facing desperate times ahead to survive.

A Samee resident said “Rat population increases significantly as bamboo sprouts in the forests near the towns of Paletwa and Samee. These rats have invaded the farming areas of the villages and are eating away at the paddy and other crops leaving nothing left to harvest.”

He continued ,“When buds and fruits start to appear on the rice plants, there is a certain kind of liquid in them. The plants were destroyed by rats at the stage. The situation in the paddy fields and plantations in Samee is pretty bad. There are about 20 villages there that have suffered so much that the farmers can’t harvest rice”, he said.

“ If the rats have infested, it is almost impossible to harvest rice from that field. For example, if a field can produce 50-bushel of rice when the rats destroy it, you will not be able to get even a bushel full”, a farmer from Paletwa explained.

The flowers bloom profusely in a couple of bamboo species locally known as Mathay and Thalaku from September. When such bamboo flowers bloom, rats tend to increase in number and cause havoc in farmlands.

The villages in Paletwa that faced a ruinous situation where there was no harvest left in the fields due to the rampage of rats are : Abaung Tha, Sat Hlay, Sam Sate, Chi Palin, Seint Sin, Long Kadu, In Kho Wa, Sein Lat Wa Hadawa. In addition, the villages located along the Samee-Matupi highway, villages in the lower and upper parts of the Samee creek and villages located between Samee and Paletwa also faced similar situations.

A Samee resident said “ Day after day, the rats infested the villages and destroyed the fields. Our farmers are mainly dependent on rice cultivation. Due to the current situation, farmers from Samee and Paletwa are suffering a lot. In addition, there is also the difficulty of blocked roads in the region.”

Locals are using tactics like lighting fires, setting traps and other traditional methods to make rats run away, but the number of rats is so high, that it is extremely difficult to control them.

Some Christian religious organizations are helping by distributing rice for the people of Paletwa who have nothing left to harvest in their paddy fields due to the destructive rats and facing difficulties in their livelihood.

Similarly, when fruits grew on the bamboo trees in 2008, rats ran rampant in Paletwa, causing extensive damage to rice and other crops, and some locals experienced famine.

The locals said that bamboo trees bear fruits once every 50 years, and rats often come and eat the fruits in large groups. Subsequently the rats invaded the farms and plantations to destroy rice and other crops.

The federal government says it has released funds for the construction of 10 large-scale integrated rice mills with 320 metric tonnes capacity per day.

Mohammad Abubakar, minister of agriculture and natural resources, disclosed this at the fifth edition of the President Muhammadu Buhari administration scorecard 2015-2017 series in Abuja on Monday.

Presenting the ministry’s achievements, Abubakar said the construction of the ten large-scale rice mills was part of the resolve of the administration for the country not only to be self-sufficient in the staple but for export.

He said the location of the mills were Jigawa, Kano, Adamawa, Niger, Kaduna, Gombe, Ekiti, Ogun, Bayelsa and FCT.

Abubakar also disclosed that the Presidential Fertilizer Initiative established in 2016 had led to the increase of fertiliser blending plants in the country from eight to 200.

He added that the annual fertiliser production rose from 300 metric tonnes per annum to over 7 million metric tonnes.

The minister added that the ministry constructed and handed over agribusiness incubation centres for training students in various agricultural value chains.

According to the minister, the beneficiary institutions include the Federal University of Agriculture, Makurdi, Benue, Umaru Musa Yar’Adua University in Katsina State and the University of Ibadan in Oyo State.

Others are the University of Maiduguri, Borno, Niger Delta University, Bayelsa and University of Abuja (FCT), while the project is ongoing in the Federal Universities of Lokoja, Kogi.

“The ministry also distributed 14,785 agricultural equipment, materials and tools, groundnut processing machines, cashew processing machines, oil palm processing mills with components,” the minister said.

“We also distributed tractors, combine harvester tricycles for farmers, colour sorters and 2000 knapsack sprayers to farmers nationwide.”

Abubakar further said there had been a paradigm shift in the agriculture space because of Buhari’s vision to redirect the economic trajectory of the country.

VIETNAM JAN-NOV RICE EXPORTS AT 6.7 MLN TONNES, UP 16.3% Y/Y- STATISTICS OFFICE

HANOI, Nov 29 (Reuters) - Vietnam's rice exports in the January-November period are estimated to have risen about 16.3% from a year earlier to 6.7 million tonnes, government data showed on Tuesday.

Revenue from rice exports in the period is seen up 6.9% to $3.2 billion.

November rice exports from Vietnam, one of the world's leading shippers of the grain, likely totalled 600,000 tonnes, worth $296 million. (Reporting by Phuong Nguyen Editing by Ed Davies)

Chandigarh, November 24

Rice milling for 180 lakh metric tonnes of paddy could be delayed this year if the government fails to act against some manufacturers of fortified rice kernels (FRKs), who are demanding a premium for supplying the rice to millers.

What is fortification of rice

• Fortification is the process of adding fortified rice kernels (FRKs), containing FSSAI-prescribed micronutrients (iron, folic acid, vitamin B12) to normal rice (custom milled rice) in the ratio of 1:100 (mixing 1 kg of FRK with 100 kg custom milled rice)
• The FSSAI defines fortification as ‘deliberately increasing the content of essential micronutrients in a food so as to improve the nutritional quality of the food and to provide public health benefit with minimal risk to health’
• As per the Government of India policy, fortified rice is to be supplied for public distribution and also for various other welfare schemes to combat several malnutrition-related diseases

Govt warns of action

All sale of FRKs has to be done through the Anaj Kharid portal, and at the prices already fixed. If any manufacturer is found seeking a higher price, we can initiate action against him, including cancelling his licence and blacklisting his firm. — Rahul Bhandari, Principal Secy, Food and Supply department

Some suppliers of the FRKs have started demanding Rs 8-10 per kg (Rs 800-1000 per quintal) over and above the price of Rs 46.58 per kg fixed by the state government for this year. The FRKs has to be supplied to the rice millers by the end of this week, as milling of rice is to start from December 1.

There are more than 128 suppliers of FRKs in the state, and as many as 338 (including suppliers outside the state) had participated in the tender process to supply FRKs in Punjab. As per rules, 1 kg of FRKs is to be mixed in 100 kg of custom milled rice.

“For the past couple of days, some FRKs manufacturers either directly, or through their brokers, have been approaching rice millers asking them to pay a premium if they want the FRKs on time. Since the Centre will not accept rice without fortification, these manufacturers are trying to browbeat millers,” Ranjit Singh Josan, a rice miller in Ferozepur said.

He said the matter had been raised by the Punjab Rice Millers Association with top officials in state Food and Supply Department, as non availability/delay in supply of FRKs could in turn delay the custom milling of rice. Interestingly, the department has also issued advertisements, warning the FRKs manufacturers against selling at a premium.

Another rice miller in Sangrur said he, too, had been approached by a broker. “In 2020, FRKs was supplied at Rs 71 per kg, while last year it was supplied at Rs 55 per kg. This year, one of the manufacturers quoted a much lower price in the bidding for the tender, and all others accepted the price of Rs 46.58 per kg. The Centre pays the state government a price of Rs 73 per kg to buy FRKs. As the number of manufacturers of the FRKs has increased, a competition has started between them to supply FRKs at lower price. But they are now trying to extract more money from the rice millers,” he said.

That Pakistan’s rice exports are all set to decline massively in the ongoing fiscal now appears to be a foregone conclusion. Earlier this month, this space highlighted USDA’s revised assessment that rice exports out of Pakistan may decline by as much as 20 percent during marketing year 2022-23, on the back of flood-hit disaster in Sindh and Balochistan which led to substantial losses of non-basmati crop. (For more, read: “Rice stocks: what does bank borrowing suggest”, by BR Research published on Nov 11, 2022).

This assessment brought a strong response from rice export players, who suggested that higher basmati exports shall come to the rescue. Market players – including some REAP members – are of the view that basmati prices have escalated by as much as 55 percent in value compared to the 2021-22 marketing year.

Substantially higher prices from traditional markets where basmati demand is historically well entrenched can indeed help in compensating the forgone export receipts from coarse variety (albeit partly), which fetches less than half the price of basmati, but is over five times the volume.

For reference, consider if coarse rice exports drop by USDA forecast volume of 0.8 million metric tons (MMT), export receipts would decline by $360 million (average unit price unchanged at c. $450 per ton). In contrast, if basmati prices in the international market maintain their current trajectory and rise by an average of one-third over last year, export revenue would rise by c. $250 million, assuming volume exported remains unchanged.

However, this rudimentary analysis by rice market players seems to miss two key elements: namely, market share and pricing power. Pakistan is a small player in the international coarse rice market, meaning that a million tons less rice exports by this nation would make little difference to 50MMT plus coarse rice annual trade. Lost exports from Pakistan may just as easily be compensated by other players whose market share is several times that of ours, such as India, Viet Nam, and Thailand. Coarse rice prices are also far more stubborn, struggling to rise beyond the +/- 10 percent range of $400 per metric ton in absence of major supply shocks. Lower Pakistani coarse exports alone may not cut it.

On the other hand, Pakistan is only one of the two notable players in the global basmati trade, splitting market share with neighboring India at 20-80. Although global basmati trade has averaged at 5MMT over the past many years, demand for this premium aromatic variety is highly price sensitive. Although it is correct that basmati demand is well-entrenched in exporting destinations such as Gulf, Europe and North America; India dominates each of these markets due to its greater pricing power.

But why does that mean Pakistan may struggle to benefit from higher prices? Two factors. First, Pakistan’s share in entrenched markets has been falling over the years, both in absolute and relative terms. For reference, Pakistan’s basmati exports between 2019-21 to Gulf countries was less than half of the volume exported during 2007-09.

Two, even in recent years when Pakistan has managed to maintain its overall market share in the basmati export market, it has continued to shed volume in traditional markets of Gulf, Europe, and North America. In fact, Pakistan has only been successful in maintaining market share by tapping non-traditional, middle-income markets such as African and Central Asian countries.

This brings us to two important conclusions: first, basmati export volume may struggle to maintain it previous year levels if prices escalate abnormally (as they seem to indicate so far). Two, price elasticity of demand may be significantly greater in non-traditional, low to middle income markets of Africa and Central Asia, compared to that in traditional markets such as Gulf and the West where demand is not only entrenched, but consumers also enjoy higher disposable income.

Afterall, harder for desi diaspora in Dubai to stop making pulao than for Kazakhs and Kenyans who have only recently discovered a taste for the delicacy. If rice exporters hope to grow export revenue despite the loss of coarse rice crop, they may have to fight to recapture traditional markets after all.

As reported by Dusita Saokaew in China Global Television Network, the new study could help contribute to global food security

Scientists have been working on creating a new, more resilient strain of rice. (Image source: Adobe Stock)

For the past 10 years, scientists at the National Centre for Genetic Engineering and Biotechnology have been working on creating a new strain of rice, more resilient to the impacts of climate change, and the natural threats that come as global temperatures rise.

Meechai Siangliw, researcher, National Centre for Genetic Engineering and Biotechnology said, "If the rice fields are damaged by environmental conditions like flooding, insects, or bacterial outbreaks, this strain of rice will help rice farmers. It will reduce the risk so that farmers will not lose income."

Charoen Laothamatas president, Thai Rice Exporters Association, commented, "In Thailand, we overlooked the need for development over the years. Our rice has remained the same. If we do not act or find a solution, our competitiveness in the global market will be limited. It needs to be our National Agenda. We need new rice varieties with high yields in order to compete."

As the world's population is expected to reach 10bn in 2052, global agriculture must increase its food supply by 56% in order to feed everyone.

STUTTGART, ARK. — A new partnership between Riceland Foods, Inc., Stuttgart, and Nestle Purina PetCare, St. Louis, will incentivize Riceland farmer-members to grow rice using sustainability practices, beginning in 2023. Purina will invest more than $1.5 million over four years.

Arva Intelligence, Houston, will qualify the carbon reductions associated with the farming practices. The reductions will provide proof for Purina to receive associated Scope 3 greenhouse gas emissions credits. Scope 3 emissions result from activities from assets not owned or controlled by a company, according to the US Environmental Protection Agency, which also refers to them as value chain emissions.

“Sustainable rice is relevant to meeting market demands as much as meeting the bold environmental goals we set-out to achieve, which includes a goal of net zero by 2050,” said Jack Scott, vice president of sustainable sourcing at Nestle Purina.The sustainability program also will benefit Riceland’s Carbon Ready program. Riceland Foods is a farmer-owned cooperative that stores, transports, processes and markets over 2.5 million tonnes of grains annually. 

Continued carbon emissions would significantly reduce rice and coffee production in Indonesia -- one of the world's top producers of both crops -- according to a study

Continued carbon emissions would significantly reduce rice and coffee production in Indonesia -- one of the world's top producers of both crops -- according to a groundbreaking study that will be published by a team of scientists led by a co-chair of the UN's climate science panel.

The study, titled "Impact of Climate Change in Indonesian Agriculture", found that continued climate change would cut Indonesia's rice production by millions of tons a year, cutting exports by a third and leading to price increases of more than 50 per cent.

Lower emissions would still lead to reduced rice yields and price rises -- but to a lesser extent.

Indonesia is the world's fourth-largest rice producer, and these cuts to yields could be expected to have a disastrous effect on the world's poorest people.

Food price rises this year, following Russia's invasion of Ukraine, have been a major factor behind increased hunger globally.

Lead author, Edvin Aldrian, said: "Our report shows the stark contrast between a world in which emissions are high, and one where emissions fall. There are significant economic incentives to increasing efforts to cut emissions, to save ourselves from the devastating impacts we would otherwise see."

Coffee production would also decrease under continued emissions -- with high emissions, Indonesia's coffee exports may fall around 2-35 per cent.

The scientists project an increase in coffee prices for both Arabica and Robusta bean varieties of around 32 per cent by 2050 and 56-109 per cent between 2050 and 2100.

Although the study focuses mainly on Indonesia's economic and food security, it is clear that Indonesia's decreased coffee and rice outputs will affect the global supply chain, and producers elsewhere may see similar effects.

Sea level rise will increase salinization, flooding, and the loss of rice fields in coastal areas. The report shows that climate impacts will reduce Indonesian rice production by 3.5 million tons or equivalent to fulfilling the rice consumption of 17.7 million people.

Without serious mitigation efforts to shift away from fossil fuels globally, sea level rise may increase saltiness of soils, which will cause a 50 per cent loss of productivity amounting to a decreased production of 8 million tons or equivalent to the rice consumption of 42 million people.

This means that there will be a significant increase in world rice prices due to increased demand. Countries with significant agricultural production in their coastal areas will also be impacted in a similar manner.

According to Elza Surmaini, an author of the study from BRIN -- Indonesia's main governmental research agency, "extreme climate conditions cause a significant reduction in planted area and agricultural production. We must enhance our adaptation and mitigation efforts to ensure food security".

"Without a significant increase in mitigation efforts, the number of days where the temperature and rainfall conditions are optimal for coffee cultivation in Indonesia will be reduced by 50 per cent by the end of the century," reports Supari, a study author from BMKG --Indonesia's meteorological agency.

These results clearly show how improved climate change mitigation actions are needed to avert the world from more catastrophic climate change impacts. The level of disruption climate change could have on Indonesia's agricultural sector would affect the world's agricultural supply chain. The only way this can be prevented is with faster action to reduce carbon emissions.

Perdinan, a study author from IPB -- Indonesia's foremost agricultural institute, said: "The economic costs of the impacts of continued climate change on agricultural production show it is essential to make stronger commitments to manage climate risks and stabilize food supply, which are essential for achieving Indonesia's development targets."

MUMBAI/HANOI/ BANGKOK/DHAKA: Export prices of rice from Vietnam hit their highest levels since July 2021 this week, with traders expecting a fall in supply as well as growing demand for the cereal to support prices into the year-end.

Vietnam’s 5% broken rice was offered free on board at $438 per tonne, compared with last week’s $425-$430 range.

“The increase in prices this week was due to tightening supplies from the Mekong Delta,” a trader, based in the Mekong Delta province of An Giang, said, adding at the current level, “Vietnamese rice prices are now higher than other exporting peers”.

Prices would keep edging higher until the end of December on dwindling stocks and rising demand from China and European countries, some traders said. Top exporter India’s 5% broken parboiled variety rates were unchanged at $373-$378 per tonne amid good demand from importing countries.

“Rice prices are moving up in other exporting countries. Indian rice is cheaper even after paying export duty,” said an exporter based in Kakinada in the southern Indian state of Andhra Pradesh. Limited supplies are available for exporters as Indian government has been aggressively buying new season paddy from farmers, the exporter said. India has raised the price at which it will buy the new-season common rice paddy variety from local farmers by 5.2%, the biggest increase in five years.

Domestic prices in neighbouring Bangladesh stayed elevated despite a series of efforts, including allowing imports and duty cuts, traders said.

The US Department of Agriculture had forecast Bangladesh’s production to drop 1% from last year to 35.6 million tonnes in the 2022-23 marketing year due to floods. Bangladesh, traditionally the third-biggest rice producer in the world, often imports to manage shortages caused by natural disasters.

LARKANA: The Sindh-Balochistan Rice Millers and Traders Association (SBRMTA) has rejected newly imposed electricity tariff and warned if the government does not take it back on or before Dec 18, 2,500 rice mills in the two provinces will ground operations to a halt in protest.

Asad Ali Tunio, general secretary of the association, told Dawn on Thursday that the millers had received highly inflated bills and had decided to challenge the exorbitant raise in the bills in court.

The millers’ meeting decided to start staging protests outside press clubs against the management of power utilities, SEPCO, HESCO and QESCO, from Dec 10, he said.

He said the association had drawn prime minister’s attention in a letter dated Nov 11 towards the recently imposed SRO by NEPRA wherein half of the sanctioned KW load was forcefully charged. The millers demanded de-notification of the SRO and approval of subsidised tariff for the rice mills, he said.

He said in reply to a question that paddy was cultivated in both provinces on around 300,000 acres of land and their annual produce of IRRI-6 rice alone was three million tonnes. Of it 1.7 million tonnes were exported to earn foreign exchange of $1.8 billion, he said.

He said that the association estimated that 55 per cent crop had been damaged in heavy rain and flood and feared food scarcity in the days to come.

He said that despite the fact that the crop had suffered heavy damage the electricity bills had been raised which had multiplied the millers’ woes. The population in this rice belt had not yet switched over to an alternate crop after the paddy suffered damage in flood onslaught, he said.

Roughly 20 labourers were engaged in every rice mill hence the total number of workers in 2,500 rice mills in both the provinces came to 50,000, who might lose jobs if the mills stopped operations, he said, adding they would definitely migrate to towns and cities, which would further aggravate conditions in urban centres.

He said that without jobs, they would possibly turn to crimes and demanded the government pay attention towards this serious issue as the new tariff was proving disastrous for the rice mill industry.

If people at the helm of affairs turned deaf ear towards their genuine demand the millers would have only one recourse and that was to put locks on mills, he said.

He said that according to routine practice rice mills ran for only six months a year but this year the closure time would extend to ten months because of less paddy production.

During the closure time the power utilities in Sindh and Balochistan had to recover half of the sanctioned KW load in the light of recently imposed SRO, he said.

It would be sheer injustice with the rice industry which demanded the government take urgent remedial measures or the millers would shut down their factories in both the provinces after Dec 18, he warned.

Published in Dawn, November 25th, 2022

ISLAMABAD-China will continue its support and cooperation in conducting modern joint research for evolving the best quality more new varieties of high yield hybrid rice seed for bumper crop.  This was stated by Zhao Shiren, Chinese Consul General, while talking to Chairman Pakistan Hi Tech Hybrid Seed Association Shahzad Ali Malik during his visit of Guard Agricultural Research and Services here Wednesday, said a press release. Speaking on the occasion, Zhao stressed the need for further strengthening the cooperation in the agriculture sector and entering into more Joint ventures for research on modern scientific lines to boost yield per acre in Pakistan. He said Pakistan must take advantage of agricultural achievements made by Chinese private sector and said there is vast scope of investment in agricultural sector. He said China is proud that Guard Agricultural Research and Services evolved first ever hibrid rice seed with the collaboration and joint ventures of Chinese counterpart Longping Hi Tech Industry.  Speaking on the occasion Shahzad Ali Malik said Guard Agricultural Research and Services is the pioneer in introducing hybrid coarse rice seed in Pakistan that developed a new ‘Extra long grain super hybrid rice’ heat tolerant seed with double per acre yield and length after cooking as compared to competitor existing varieties. He said that Guard Agricultural Research is working to bring such seeds to market which can ensure prosperity for the growers and food security for the country’s ever-increasing population. He said they partnered with their Chinese counterparts in 1998 and since then they are putting in efforts to bring high-yielding varieties and have tolerance against climate change as well.

The premium basmati varieties including PB 30 is being sold above ₹ 6,000 per quintal, while the other two varieties of Pusa 1121 and Pusa 1718 were also getting around ₹ 4,000 per quintal.

: The prices of the traditional basmati varieties of paddy in Haryana have registered a hike for the first time in several years, reaching over ₹ 6,000 per quintal, mainly due to the government agency HAFED foraying into the market and breaking the monopoly of private traders.

With the harvesting of the traditional basmati sowing belts of the state on the last leg, the premium basmati varieties including PB 30 is being sold above ₹ 6,000 per quintal, while the other two varieties of Pusa 1121 and Pusa 1718 were also getting around ₹ 4,000 per quintal.

According to farmers, the prices of long-grained premium basmati variety were around ₹ 3,800 to ₹ 4,000 in 2021, while it fetched ₹ 4,500 to ₹ 4,800 in 2020.

The premium aromatic rice was generally purchased by the private traders but for the past two years, Haryana State Cooperative Supply and Marketing Federation Limited (HAFED) has been buying paddy directly from farmers, giving a tough competition to the private traders.

“Since HAFED is directly involved in the purchase of basmati, this has given a tough competition to the private traders, leading to an increase in the prices. Now, the prices have gone around ₹ 6,000 per quintal for the first time in the past several years,” said commission agent Mahinder Singh of Karnal’s Nilokheri grain market.

HAFED officials associated with the procurement operations said that the agency was purchasing basmati as it has got export orders from different countries. The officials said that they will buy paddy until they achieve the targets in different districts.

In a statement in October, Kailash Bhagat, HAFED chairman said that the government agency, had earned a profit of around ₹ 207 crore during the financial year 2021-22. For the current fiscal year, it has got an export order of 20,000 MT basmati rice valuing 21.85 million USD from Saudi Arabia.

Meanwhile, farmers said that poor yield is also a reason behind the increasing prices.

“The average yield has come down to around 10 quintals from 15 quintals. But the increase in the prices will help to compensate the farmers for the losses caused due to poor yield,” said basmati grower Rishi Pal of Karnal’s Sikri village.

Moreover, growers of the aromatic long-grain basmati rice earn around ₹ 10,000 per acre extra from the crop waste as they said that paddy straw is used as cattle fodder.

November 23, 2022 (MLN): Azerbaijan has removed Custom Duty (CD) on rice import from Pakistan for five years till 2027, Rafique Suleman Convener Rice Committee at FPCCI informed today. 

This development will improvise the volume of rice exports, he added. 

He lauded the steps taken by the Azerbaijan government that will encourage trade between the two countries.

He also appreciated the Ministry of Commerce (MoC) to taken several steps to boost two-way trade with Azerbaijan by opening a new avenue and said that it will boost rice export by $20 million per annum.

Sluggish demand for rice in the domestic market is also accelerating the change, and the government is considering expanding support for farmers who switch from rice to other crops.

The Yomiuri Shimbun

Farmer Atsunori Suzuki checks a corn field in Sakura, Chiba Prefecture, in October. The Yomiuri Shimbun

TOKYO – Domestic farmers are increasingly shifting from planting rice to growing corn and other grains for livestock feed, following a surge in the price of imported grains amid Russia’s invasion of Ukraine.

Sluggish demand for rice in the domestic market is also accelerating the change, and the government is considering expanding support for farmers who switch from rice to other crops.

Atsunori Suzuki, 49, cultivates about 40 hectares of rice paddies in Sakura, Chiba Prefecture. Last year, Suzuki began large-scale production of corn for livestock feed in some of his paddies that previously produced so-called staple rice.

Staple rice is handled separately from rice used for industrial purposes, such as ingredients for sake, miso and crackers.

Suzuki initially made the shift because harvesting corn involved a lighter workload than staple rice. However, the poultry farms to which he sells his corn have recently been calling for increased production, and Suzuki plans to double his planted area of corn next year.

“It’s better to grow what people want than staple rice that is often overstocked,” he said.

Soaring global grain prices have pushed up demand for domestically produced corn — mixed feed for livestock cost ¥100,186 per ton in August, up 22.7% from the same month last year.

Japan has traditionally relied on imports for 70 to 80% of its feed. However, poultry farmers and others are increasing their purchases of domestically produced feed, which has stable prices.

Govt to expand support

According to the Agriculture, Forestry and Fisheries Ministry, Japan had 1,251,000 hectares planted with staple rice in the 2022 crop year, down 52,000 hectares from the 2021 crop year. Demand is weakening due to the declining birthrate and changing dietary habits.

Wholesale prices for the 2022 crop rose for the first time in three years, but they are still below the level before the COVID-19 pandemic.

The Yomiuri Shimbun

In contrast, the planted area of corn and rice used for feed in the 2022 crop year increased for the second consecutive year, up 37,000 hectares from the year before to 549,000 hectares. Moves to replace rice paddies with fields producing wheat, vegetables and fruits are also expanding rapidly.

In its comprehensive economic stimulus package compiled last month, the government proposed strengthening domestic production of feed crops, including corn, as well as production of wheat and soybeans.

The ministry plans to provide subsidies for five years to farmers who turn rice paddies into fields to produce such crops. To fund the program, ¥25 billion was allocated in the second supplementary budget proposal for fiscal 2022.

The rabi crop sowing data for 2022 shows that Indian farmers have preferred to sow wheat and rice more than lentils and pulses. The rabi sowing season took off on a shaky note due to an erratic monsoon but seems to have caught up and gone above last year's figures.

The reading shows that sowing is up over seven percent when compared to last year and the government will be hoping that eventually, this will help cool off the high agri-inflation further.

For example, wheat, one of the major important crops, has seen sowing increase by nearly 15 percent. This might give some relief to the government India's buffer stock has declined by 49.9 percent as compared to the previous year. Moreover, wheat prices have gone up by 20-25 percent in 2022 due to geopolitical and trade hassles as a result of the Russia-Ukraine war.

KIAMBU, Kenya, Nov 21 – Rice is one of the key strategic crops for food security and a source of income for rice value chain actors, but despite an increase in production, local supply has not been able to meet the market demand.

Consequently, Kenya, Uganda and Madagascar have been involved in a partnership project to enhance the performance of the local rice value chain based on innovative institutional approaches and knowledge products.

The three-year project that has been running under ‘Strengthening the rice sector in East Africa for improved productivity and competitiveness of domestic rice’ (EARiSS) has helped rice farmers bridge the widening rice production-consumption gap.

One of the implementing partners in the project, the Kenya Agricultural Livestock Research Origination (KALRO) has been promoting appropriate seed production and delivery mechanisms as well as new rice varieties for enhanced productivity.

Speaking during a farmer’s exchange workshop in Kenya for all three countries on the achievements of the EARiSS project, a Rice Breeder working for KALRO Emily Gichuhi said they have created a seed unit and system, whose mandate is to produce clean seeds for multiplication under the KEPHIS inspection

“We grow our seeds locally and do not import, but despite the increase in the rice production, unfortunately, the country has not been able to meet the demand for consumption, which currently stands at around 720 metric tonnes,” she said.

Gichuhi explained that in order to meet the demand, various organizations such as the Kenya Seed and National Biosafety Authority (NBA) have been mandated to multiply the upland high variety, which deals with the Basmati Pishori Rice and BW rice varieties, while KALRO has the mandate to maintain the seed for Nerica and also a new variety Komboka, which has been taken up by most farmers in the country as they are high yielding.

“The new Komboka rice seed we are promoting has been found to produce 7 tonnes of rice per hectare compared to the Basmati- Pishori rice, which produces between 4 and 5 tonnes per hectare, thus rapid uptake by farmers,” Gichuhi said.

Currently, she added that they have licensed other seed merchants to assist in producing seed for Komboka, which is distributed throughout the country, while they have also been promoting it through dissemination activities such as field days in the rice growing areas of central, coastal and western regions.

“Through EARiSS, we have been disseminating technologies in rice to out growers and we have about 3,000 hectares of upland rice production, where we sell Nerica seeds and through irrigation, we have 4,000 acres in central region, about 2,000 in Bura and Hola irrigation schemes and slightly above 800 hectares in Taita Taveta, where we sell the Komboka seeds as well as share other varieties such as basmati and BW,” she added.

The uptake of Komboka rice has now reached 50 per cent across the region in terms of seeds, while the other 50 per cent is for the other varieties of basmati and BW because we have contracted farmers to help in distribution and production of the certified seeds, added Gichuhi.

The Rice breeder said the biggest challenge they have been having is farmers replanting the same grain from the previous season, which according to her is not healthy and can be prone to pests and diseases.

“Accessibility of quality seeds has been a big problem since rice is a self-pollinating crop and sometimes farmers tend to keep their own grain and use it for the next season which is not a good practice because of transmission of disease. We have been discouraging farmers not to reuse the grain and asking them to buy new seeds per season,” she said.

Gichuhi explained that as a research institution they have observed a shift in preferred rice variety for planting from the ordinary Basmati 370 to the new Komboka variety, which farmers prefer as it gives twice the yield, its semi aromatic and the cost of production is low, while in terms of pests and diseases it is moderately resistant.

Negussie Zenna from Africa Rice, Madagascar said the exchange visit in Kenya is to gain experience and learn in terms of seed production and also commercialization of seeds.

“What we are lacking in some countries is seeds, the demand is high. Producers produce quality seeds but do not know where the market is and it is necessary for both producer and utilizer to meet at the right platform,” he said.

Zenna noted that through the EARiSS project, they have been promoting the sensitization of different stakeholders in terms of quality seed and promotion of the seeds produced locally through demonstration of farmer’s field day and exhibitions working with national seeds systems such as KALRO.

The biggest challenge in rice production, Zenna said, has been marketing of the seeds as there are many traders in the region and through the partnership they want to see and hear from farmers on how to make it profitable and marketable.

Zenna said overall there is no one solution, but multi approaches that will be able to address the deficit in Africa and it can only be done through transformation, modernization of rice breeding and rice production

“We want to expand, see what other countries can offer in terms of supply as the demand for rice is growing exponentially not only in terms of quantity but quality. It needs to go through all levels from farmers, seed producers, marketers, millers and traders until to the table of consumers,” Zenna said.

On his part, an agronomist from Mwea Rice Growers Multipurpose (MRGM) cooperative society Michael Mwangi, said production of rice seeds is key especially for the new varieties that have been introduced, since the farmers have realized the new varieties are bringing in more yields.

“Farmers are satisfied with the new variety such as Komboka considering that in comparison to other old varieties, its yield is quite high. For example, the production of one kg of basmati variety costs a farmer Sh60 compared to the Komboka variety, where a farmer is using only Sh40 to produce,” he said.

Mwangi explained that MRGM has contracted 5 farmers with around 4 to 5 acres each across the country, who are bulking the seed in high demand.

“We have like 3,500 active farmers out of the registered 7,500, what we have done is select a few farmers who ensure they produce the seeds for the rest of the members,” he noted, adding that the society is involved in the entire value chain production, processing, and marketing.

Patrick Githinji, a farmer who produces rice seeds said the biggest challenge they have been having was farmers re-planting their seeds and not embracing the Komboka rice variety.

“I am now producing the seeds for the Komboka rice variety as it does not have a problem with the pests and also because farmers have started embracing it for its high yields,” he said.

Meanwhile, the current demand for rice per individual per year stands at 20. 6 Kilogrammes. In 2020 the country produced 180,000 metric tonnes of rice, but KALRO projects that it will increase by 10 percent to 520,000 Metric Tonnes by 2030.

* Pak-Canada bilateral trade can be increased to $5b by making more efforts

“Canada is an import-oriented country and the business community of Pakistan has a good opportunity to tap this potential market for trade and exports. The Pakistani private sector can set up a base in Canada and capture the North American market.”

This was said by Faisal Kakar, Deputy Head of Mission-designate to Canada while exchanging views with the business community during his visit to the Islamabad Chamber of Commerce and Industry (ICCI), said a press release issued here. Faisal Kakar said that he could facilitate online B2B meetings between Pakistani and Canadian entrepreneurs to explore areas of mutual cooperation.

He said that Pakistan can export many products to Canada including rice, textiles, IT and software, and others. He said that around 0.6 to 0.7 million people from the Pakistani community were living in Canada and some of them had been elected in the Canadian parliament. He said those parliamentarians could play an effective role in improving trade and economic ties between Pakistan and Canada.

He assured that he would try to share information with ICCI about business opportunities for Pakistan in Canada so that the private sector could make efforts to take advantage of them. Speaking at the occasion, Ahsan Zafar Bakhtawari, President of Islamabad Chamber of Commerce & Industry said that the bilateral trade between Pakistan and Canada in 2020 was just around US$ 1.11 billion, which was not according to the actual potential of both countries. He said that with better efforts, bilateral trade can be increased to 3-5 billion US dollars. He stressed that both countries should focus on developing strong business linkages between their private sectors to explore new areas of cooperation.

He said that the Pakistani High Commission in Canada should explore the products that were in good demand in Canada and share such information with chambers of commerce & industry so that Pakistan’s private sector can capture better market share in Canada. He said that many sectors of Pakistan’s economy offer great opportunities for JVs and investment and stressed that the Pakistani diaspora in Canada should be motivated to invest in Pakistan. Faad Waheed, Senior Vice President ICCI said that Pakistan and Canada were agro-based economies and had good potential to enhance cooperation in this sector.

Khalid Iqbal Malik Group Leader, Zubair Ahmed Malik, Zafar Bakhtawari, Muhammad Ejaz Abbasi, Raja Imtiaz, Khalid Chaudhry, Mehmood Ahmed Warraich and others were also spoke at the occasion and offered useful proposals to further improve bilateral trade ties between Pakistan and Canada.

KARACHI: Rice exporters are braced for a lacklustre year ahead amid fears of at least a 30 per cent drop in production in Sindh due to damage to crops caused by flash floods earlier this year.

Besides, they also face fierce competition from India, which is offering lower prices to foreign buyers.

Chela Ram Kewlani, chairman of the Rice Exporters Association of Pakistan (REAP), a representative body of the sector, said Pakistan fetched $2.5 billion from rice exports by shipping 4.88 million tonnes of rice to various foreign destinations in the previous fiscal year (2021-22).

It was 1.19m tonnes more than the year-ago figure of 3.684m tonnes, which helped the country fetch a little over $2bn.

“I think rice exports may plunge to 3.5m tonnes this fiscal year (2022-23) in view of the damage to the crop in Sindh,” Mr Kewlani said. However, he was satisfied with Punjab’s figures.

Say exports may plunge to 3.5m tonnes this year from 4.8m after Sindh crop hit by flooding

He said rice crop arrivals in Sindh were due in October but had been delayed by a month due to recent flooding that inundated large swathes of the country.

Last year, the country’s rice production was 8.5m tonnes, whereas local consumption stood at 3m tonnes.

On incentives, the REAP chairman was not happy with the fact that rice exporters were ignored when Finance Minister announced big power relief for the export sector last month.

According to the Pakistan Bureau of Statistics, basmati exports plunged to 173,684 tonnes (fetching $182m) in the July-October period from 229,791 tonnes ($198m), reflecting a drop of 24.4pc in quantity and 8.4pc in value.

Other rice varieties fetched $364m with shipments of 791,676 tonnes compared to $396mn (861,999 tonnes), down 8pc each in quantity and value.

In October alone, basmati rice exports stood at 45,154 tonnes ($51m) compared to 43,821 tonnes ($43m) in September and 51,499 tonnes ($45m) in October 2021.

Exports of other rice varieties stood at 205,744 tonnes ($92m) in October compared to 163,497 tonnes ($76m) in September and 297,576 tonnes ($126m) in October last year.

Faisal Anis Majeed, the deputy convener of the Federation of Pakistan Chambers of Commerce and Industry’s (FPCCI) rice committee, said foreign buyers were turning towards India, whose rice prices were less than Pakistan’s by $80 to $100 a tonne.

He said the rupee’s depreciation over the last month also created problems for exporters, making exports expensive.

Meanwhile, it has been noted that consumers are paying higher prices for local rice due to massive exports in the previous fiscal year.

Prices of various rice varieties have gone up by 60-70pc in the last one and a half years. However, market sources said rice hoarding also went unchecked as “the mafia” kept the commodity out of the market to create an artificial shortage and fetch better prices.

While the wholesale rates of different rice varieties now hover between Rs85 and Rs320 per kilogram, retail prices seem to have no limits due to fat margins.

Published in Dawn, November 20th, 2022

MUMBAI/HANOI /BANGKOK/DHAKA: Prices of rice shipped from top exporter India edged up this week on an uptick in overseas demand and as aggressive government buying of paddy to encourage higher domestic output jacked up traders’ procurement costs.

India’s 5% broken parboiled variety rates rose to $373-$378 per tonne from last week’s $370-$375, amid higher export demand as well. “The government has been buying new season paddy crop at revised higher prices. Exporters need to pay more to secure supplies,” said an exporter based in Kakinada, Andhra Pradesh.

India raised the price at which it will buy the new-season common paddy from farmers by 5.2%, the biggest increase in five years, as New Delhi encourages farmers to boost acreage and output.

Meanwhile, output from neighbouring Bangladesh’s second-biggest rain-fed rice crop could hit 17 million tonnes, exceeding the target of 16 million tonnes, as farmers raised acreage to cash in on higher prices, a senior agriculture ministry official said.

Bangladesh has been struggling to shore up stocks following widespread flooding. Prices of Thailand’s 5% broken variety scaled the highest since early October at $410-$425 per tonne. Traders attributed the increase to gains in the baht, which decreases exporters’ margins from overseas sales and prompts them to hike prices.

“Global markets are slowing because countries have stocked up on rice from their experience during the pandemic and war between Russia and Ukraine, which led to hoarding,” said a Bangkok-based trader.

Vietnam’s 5% broken rice prices were unchanged at $425-$430 per tonne, free-on-board. “Demand for Vietnamese rice is higher than previously anticipated and I think this year’s exports will exceed the official target of 6.3-6.5 million tonnes,” a Ho Chi Minh City- based trader said.

Council for Scientific and Industrial Research – Crops Research Institute (CSIR-CRI) has developed improved climate smart rice varieties using biotechnological tools.

Dr Maxwell Asante, Principal Research Scientist and Rice Breeder at CSIR-CRI, said the improved rice varieties were disease and pest resistant and had short maturity period of 90 to 100 days.

He announced this in an interview with Ghana News Agency in Tamale.

He said over the years, rice production had been a major challenge to farmers due to the difficulties they faced in acquiring suitable land and maturity period for rice.

Dr Asante said the improved rice varieties could grow on multiple lands unlike the ordinary varieties, which could only grow in lowland areas.

He said the new improved rice varieties could be cultivated on highlands to encourage more farmers to venture into rice cultivation.

He advised farmers to adopt the new improved rice varieties to enhance their production for local consumption to reduce importation of rice into the country.

Source: GNA

Exports may still face some curbs with the imposition of a duty instead of the complete ban that is currently in place, but matters are still at a discussion stage, say sources

With rice procurement progressing steadily and with prices starting to moderate, the Central government might review the ban on the export of broken rice, though an outright lifting is ruled out for now, two people aware of the development said.

Exports may still face some curbs with the imposition of a duty instead of the complete ban that is currently in place, but matters are still at a discussion stage, they added.

India, the largest exporter of broken rice, had imposed the ban in September to stabilise domestic prices and ensure the availability of the grain in the domestic market particularly for the ethanol and poultry industries.

Prior to the ban, broken rice exports between April and August of FY23 has risen by a mind-boggling 4,178 per cent from the corresponding period of 2019, while between FY18 and FY19, thay had jumped by almost 319 per cent.

Data shows that in FY22, of the 3.8-3.9 million tonnes of broken rice exported, around 1.6 million tonnes (over 41 per cent) went to China for use as feed meal for the poultry industry there.

The share of broken rice in India’s total exports—estimated to be about 21.2 million tonnes in 2021-22—rose to 23 per cent in April-August 2022 from 1.34 per cent in the same period in 2019.

However, some softening of domestic prices, a steady start to 2022-23 rice procurement season and demand from southern millers may have prompted the Centre consider revoking the ban, sources said.

Till November 10, paddy procurement in the central pool for the 2022-23 season that started on October is estimated to be about 23.1 million tonnes--1.31 per cent more than the paddy procured during the same period last year.

In the 2022-23 season (October to September), the Centre has planned to procure 77.1 million tonnes of paddy which is more than the 75.9 million tonnes procured last year.

Meanwhile, sources said the commerce and industry minister Piyush Goyal had discussed the matter during a review of the sectoral progress in exports with export promotion councils and industry bodies.

“The industry had expressed their concerns regarding the continuation of the ban on broken rice,” one of the persons cited above said.

Market sources said India annually produced around 5-6 million tonnes of broken rice which is mainly used as poultry and cattle feed.

India’s rice production in 2022-23 kharif season is estimated to be around 6.05 per cent less than the same period last year at 104.99 million tonnes as per the first advance estimate of agriculture production for 2022-23 crop year (July to June) released a few months back.

Rice production in the 2021-22 kharif season was a record 111.76 million tonnes.

If the numbers hold firm, then this will be the lowest rice production in the kharif season since the 2020-21 crop year.

The production is expected to be down due to drought like conditions in main growing regions of East India namely in the states of UP, Bihar, Jharkhand and West Bengal and also shift towards other competing crops in some other states.

Mandi prices of Basmati paddy at Karnal (Haryana) and Rajpura (Punjab) are currently ruling around Rs 3,800 – Rs 4,000/quintal, Rs 400 – Rs 500/quintal more than the prices prevailed a year ago.

Robust global demand and negligible inventories have pushed up mandi prices of Basmati paddy this season sharply across the key rice growing regions in Punjab, Haryana and western Uttar Pradesh.

Mandi prices of Basmati paddy at Karnal (Haryana) and Rajpura (Punjab) are currently ruling around Rs 3,800 – Rs 4,000/quintal, Rs 400 – Rs 500/quintal more than the prices prevailed a year ago.

“Negligible carry forward stock from the previous year, large number of pending exports orders have pushed up the mandi prices of new crop this year,” Vijay Setia, chairman and managing director, Chaman Lal Setia Exports, a leading exporter of aromatic rice, told FE.

Setia said that rice prices are expected to rise in the domestic market while realisation from the exports of the aromatic long grain rice has seen a sharp spike in the first half of the current fiscal.

Currently, the procurement of Basmati paddy by traders from the farmers is going at a brisk pace and will continue till next month.

According to the Directorate General of Commercial Intelligence and Statistics data, the value of Basmati rice exports rose by more than 37% during April-September 2022 to $2.2 billion from $1.6 billion in the same period last fiscal.

The per tonne export realisation of aromatic rice rose by 24% to $1057/tonne in April-September 2022 from $853/tonne a year ago period.

“The prospects of the Basmati rice exports in the second of the current fiscal year are bright as demand has been rising steadily,” Vinod Kaul, senior executive director, All India Rice Exporters’ Association, said. He said besides the demand from traditional markets in the middle countries, there has been encouraging demand for aromatic rice from the European Union this season.

M Angamuthu, Chairman, Agricultural Processed Food Products Exports Development Authority, said that Basmati rice exports prospects are encouraging as there are several countries in the middle east that need rice to meet their domestic demand.

To boost exports, APEDA has set up Basmati Export Development Foundation in collaboration with the industry, through which the farmers in key growing states are informed about the usage of certified seeds, good agriculture practices and judicious use of pesticides to meet the international standards

In September, the government banned exports of broken rice and put a 20% export duty on non-Basmati ‘white’ rice varieties. However, Basmati rice export was put outside the export restrictions.

Out of the total annual production of 9 million tonne (mt) of Basmati rice, 4.5 mt is exported. In 2021-22, Iran, Saudi Arabia, Iraq, United Arab Emirates and Yemen had a share of 65% in value of aromatic rice export of $ 3.5 billion.

Pakistan exports around 0.9 – 1 mt of Basmati rice annually and harvesting this year has been disrupted because of flooding in the many parts of the key growing region.

Despite export tax, India’s rice price is competitive

India’s rice exports may decline to 19.5 mt in 2023 from a record 21 mt of shipment this year, the United States Department of Agriculture (USDA)  has stated in its outlook.

The USDA  said the fall in exports is mainly because of an anticipated decline in India’s rice production due to deficiency in monsoon rainfall in the key grain growing states in eastern India.

Thailand’s exports are projected to increase 0.6 mt to 8.2 mt next year, given weaker shipments from its top competitors India and Pakistan.

While projecting a marginal decline of 0.4 mt in global rice trade to 53 mt 2in 023, USDA has said that despite the government in September announcing a 20% export tariff on non-basmati and non-parboiled rice shipment, ‘India remains the most competitively-priced source for rice in Asia,’.

India’s price quotes for 5% broken-kernel rice shipped bulk were $ 380/tonne for the week ending November 8, 2022 against Pakistan’s $ 415/tonne and Argentina’s $ 415/tonne.

India banned broken rice exports, used as animal feed in September.

Officials said that India would continue to be the largest exporter of the grain in the world next year as well despite a decline in shipment.

USDA also projected a 2 mt decline in production for China, world biggest producer of rice, to 147 mt, from a record of output for 2021/22. Pakistan’s rice production is expected to decline by 2.5 mt to 6.6 mt because of flooding in the Indus river valley.

In September, the agriculture ministry in its first advance estimate for foodgrain production had stated that rice production in the current kharif season for the 2022-23 crop year (July-June) would decline by around 6 mt to 124 mt from a record 130 mt reported in the previous year.

India has been the world’s largest rice exporter in the last decade — export earnings stood at $ 8.8 billion in the 2020-21 financial year (April-June) and $ 9.6 billion in 2021-22. In the current fiscal (April-Sept), $ 5.4 billion worth of rice (11 mt) has been exported.

India accounts for around 40% of global rice trade and exports to more than 150 countries.

Out of the 21 mt of rice shipment in 2021-22, India exported more than 17 mt of non-basmati rice and the rest of the volume was aromatic and long grain Basmati rice. In terms of volume, Bangladesh, China, Benin and Nepal are five major export destinations of rice.

In September a food ministry official had stated that there has been ‘mind-boggling” increase of exports of broken rice which had caused domestic shortage and increased poultry and feed meal rates. Broken rice is largely meant for the non-human consumption and it is used as a feed in the poultry industry.

Peter Bachmann, Vice President Policy & Government Affairs, at USA Rice, states that India’s protectionist rice export restrictions hurt the neediest the most

Over the past decade, India has become the largest rice exporter in the world, shipping 21.5 million metric tons in 2021 to destinations all over the world. India exports high value basmati varieties to Iran, Saudi Arabia, the United States, and the UK but also ships regular milled and broken rice to many food-insecure Sub-Saharan African countries such as Benin, Senegal, and Ivory Coast. However, this has been affected by India’s recent acts on rice export restrictions.

In September 2022, the Indian government announced a series of major export curbs that harkened back to the nation’s 2008 export ban on non-basmati rice that had far-reaching market implications for world food prices. These rice export restrictions, however, included an all-out ban on broken rice exports along with a 20% export tariff on non-basmati and non-parboiled long grain rice shipments. These restrictions on rice followed India’s bans earlier on wheat and sugar exports that resulted in extreme price fluctuations, further exacerbating the impacts of inflation on global food prices.

India’s restrictions have a ripple effect on global rice markets

India’s ban on broken rice has been somewhat walked back and modified since the original announcement, resulting in a situation that is not as detrimental as the 2008 wider ban. However, the impacts of the rice export restrictions have had a ripple effect on global rice markets and disrupted a long-running streak in price stability for rice. Throughout the pandemic, and now the war in Ukraine, rice has been a beacon of stability in price and supply, but that is no longer the case.

“In September 2022, the Indian government announced a series of major export curbs that harkened back to the nation’s 2008 export ban on non-basmati rice that had far-reaching market implications for world food prices.”

The Indian government attributes the rice export restrictions to drought, and reduced plantings, for a reduction of roughly 6 million metric tons of production from 2021 to 2022, which is roughly equal to the total U.S. annual production. While this reduction sounds extreme, India has demonstrated in recent years that it has consistently and significantly over-produced, growing exports from less than 10 million metric tons to more than 20 million metric tons for the 2021-22 crop year. With India responsible for 40% of the world’s rice trade, this has distorted the global market.

This price distortion has resulted from the leakage of Indian government-subsidised rice into the global export market which has suppressed global rice prices. This causes major exporters, including Thailand, Vietnam, and Pakistan, to accept prices below the cost of production to compete with Indian exports. This distortion has grown over the last year as the world grapples with higher input costs, such as fuel and fertilizer, and raises the cost of production for crops such as rice. Yet, India’s cost of production was supported by $31 billion worth of fertilizer subsidies alone last year! Surely fairness must be a factor as we strive to keep the diversification of rice production alive and well on six continents instead of shrinking to one.

U.S. government initiates consultations with India

India admits to this over-subsidisation at the World Trade Organization (WTO) but shelters itself under what is called the ‘Bali Peace Clause,’ citing that its mass procurement of rice and subsidies are for domestic food security only and don’t result in any distortion. However, the U.S. government, along with nine other governments disagree. Given that India is responsible for such a large share of exports, it is nearly impossible for the subsidies not to distort world rice prices. In May 2022, the U.S. Government initiated consultations with India at the WTO under the terms of the Bali Peace Clause to review Indian rice subsidies more closely. The U.S. was joined by the governments of Australia, Brazil, Canada, the European Union, Japan, New Zealand, Paraguay, Uruguay, and Thailand in confronting India.

While India’s rice export restrictions may not have had long-lasting impacts on the global rice balance sheet, they certainly had immediate effects and have worsened inflationary impacts on some of the most food-insecure countries throughout Africa and Southeast Asia that have relied primarily on Indian exports at stable prices. These protectionist measures to protect India in the short term will have long-lasting impressions, and the growing coalition of countries signing onto consultations at the WTO shows that the rest of the world is watching.

Crunching numbers. Rice procurement in Haryana climbs to 38 lakh tonnes exceeding State’s target

What is intriguing is where the rice has actually come from as basmati, having a 50% share in output, is not purchased at MSP

Haryana’s production of rice in the current Kharif season has been estimated at 47.54 lt (including basmati) by the Union Agriculture Ministry (File Photo/REUTERS)

Rice procurement in the largest rice-producing State of Haryana in the ongoing season has reached 38.6 lakh tonnes (lt) as of November 10, exceeding the State’s own target of 37 lt.

The State’s production of rice in the current Kharif season has been estimated at 47.54 lt (including basmati) by the Union Agriculture Ministry.

What is intriguing is where the rice has actually come from as basmati, having a 50 per cent share in output, is not purchased at MSP.

Given that farmers do not sell basmati and other premium varieties to the Food Corporation of India (FCI) at a minimum support price of ₹2,040/quintal when they’re fetching a price of ₹3,000 in the mandis, these figures would mean that production of basmati and other premium non-basmati varieties is just 9 lt.

But as per a crop survey of the Agricultural and Processed Food Products Export Development Authority (APEDA), basmati rice production (including 1-2 premium non-basmati varieties) in Haryana is likely to be 29.32 lt this year, though some exporters have said that it could be even more at 31.2 lt.

Procurement data

If this data is to be believed, it leaves a scope of maximum (at 100 per cent of output) 18.22 lt for FCI procurement, which is less than half of the actual volume already bought.

“It is not the first time it has happened, the procurement of rice used to be around 60 per cent of the State’s production or even lower until 2014-15 with a one-year exception, but suddenly it jumped to 69 per cent in 2015-16 and around 90 per cent of output in 2019-20,” said an official monitoring the procurement data. “That too output also includes basmati rice,” he added.

Email questions sent to Haryana Chief Minister’s Office in October were not replied and persistent queries from his office subsequently have not yielded any response.

Investigations in other States

In neighbouring Punjab, such anomalies have led to instances of official investigations. The State’s Vigilance Department is probing the issue of higher procurement than the production of both basmati and non-basmati together, which started in 2015-16.

Telangana is another State where the procurement was higher than production from 2019-20 onwards and there was a row between the Centre and State on the rice crop’s production estimate last year. Even the Food Ministry last year had sought the help of the Mahalanobis National Crop Forecast Centre to find out the exact output.

Errors in data?

The arrival data show that mandis in Haryana had received 38.5 lt of non-basmati rice (in terms of rice, not paddy) and 23 lt of basmati rice in 2021-22, whereas the procurement of FCI from the State was 37 lt last year.

The official said, “As Haryana also received paddy from neighbouring States, the arrival data itself points to a small surplus whereas farmers also keep some quantity as seed and for their own consumption.”

He added, “The issue is bigger and there has to be a thorough investigation to know if there are data errors or rice is getting recycled, which was common before roll out of DBT, to pay farmers in their bank accounts.”

By Sugeeswara Senadhira

Colombo, November 14 (Ceylon Today): China concluded an important International Forum on Hybrid Rice Assistance and Global Food Security in Beijing last weekend, where the focus was on China’s hybrid rice varieties that could revolutionize global food production and ensure food security.

Virtually addressing the Forum Prime Minister Dinesh Gunawardena expressed deep appreciation to the People’s Republic of China and Foreign Minister Wang Yi, who chaired the Forum for the efforts taken on behalf of the people of the world who are affected by the food scarcity. Pointing out that, such forums go a long way to enhance efforts towards food security through coordinated action, he expressed confidence that the forum would come up with useful plans that would ensure global food security and speed up achieving the 2030 Sustainable Development Goals.

China’s partnership towards food security in Sri Lanka has a long history as Rubber-Rice Agreement between the two countries were signed way back in 1952, even before the establishment of diplomatic relations between the two countries.

The Prime Minister recalled how the socialist leaders of Sri Lanka fought for the recognition of China, which was resisted by the pro-British government which ruled the country after independence in 1948. The socialist leaders used every available forum to highlight this demand.

The leader of Mahajana Eksath Peramuna (MEP) Phillip Gunawardena, who attended the Fourth Food and Agriculture Organization (FAO) Regional Meeting for Asia and the Far East, held in Tokyo in 1959 as Minister of Agriculture and Food, urged the FAO to grant membership to China. He ridiculed the West-dominated FAO for denying membership to China. “This Conference is being held without China, the biggest producer of rice in the world. Considering that Ceylon earnestly proposes to FAO to have China as a full member”.

As the ‘Lion of Boralugoda’ said in his thundering voice, it was meaningless to discuss food security without involving China, the biggest producer of rice and innovator of hybrid rice varieties to increase the global food production.

Increasing rice yield is crucial for solving the food crisis, ensuring food security, and reducing poverty. Chinese scientists have succeeded in producing high-yielding varieties of rice and their introduction to other countries will definitely help those nations to reach self-sufficiency in rice, leading to food security.

Addressing the Forum in Beijing on Saturday (12), Chinese Foreign Minister Wang Yi said that China would provide its hybrid rice technology and hybrid rice varieties to developing countries in Asia, Africa and Latin America so that they could increase rice production and achieve food security targets.

Chinese scientists commenced experiments on hybrid rice in the mid- 1960s and a decade later, succeeded in creating new varieties of rice. It was estimated that the development of hybrid rice varieties, which have been reported to out-yield inbred rice varieties by about 10 per cent, is necessary for ensuring China’s food security. Hybrid rice helped China to increase rice production by 200 million metric tons from 1976 to 1991.

It has been proved practically on a large scale that hybrid rice has a yield advantage of more than 30 percent over conventional rice varieties. Current research in China indicates that the yield potential of hybrid rice can be increased by improving breeding methodology and increasing the degree of heterosis.Existing hybrid rice varieties used commercially in China are inter-varietal hybrids produced by the cytoplasmic genetic male sterility (CMS) system. The CMS system is the most effective genetic tool in hybrid rice breeding.

Chinese rice scientists have been exploring new technological approaches and the results are promising. Some of them out-yielded the best existing hybrids by 10-30 percent.

However, the agricultural area where hybrid rice is grown has decreased by 25 percent (about 5 million ha) in China since 1995. It was found that the decreasing hybrid rice production area was caused not only by technological factors but also by socio-economic factors; and the decreased area under hybrid rice production does not lead to additional pressure on increasing crop yields from either hybrid or inbred rice production.

Extensive research on and the development of hybrid rice in China have clearly demonstrated its usefulness in significantly increasing rice yields beyond the levels of improved semi-dwarf varieties. Hybrid rice is currently planted on a 9 million ha area in China. Several International Rice Research Institute-bred (IRRI) cultivars are used as male parents of commercial varieties. Research at IRRI and in several collaborating countries shows that hybrids have yields 15-20 percent higher than those of the best semi-dwarf varieties. Hybrid varieties suitable for other countries are still in the pipeline. In addition to higher yield, heterotic rice hybrids show higher productivity, adaptability to certain stress environments, and better utilization of applied nitrogen fertilizers.

A number of cytoplasmic male sterile (CMS) lines developed and used in China are not adoptable outside China for lack of adequate disease and insect resistance and acceptable grain quality. Several CMS lines developed at IRRI are now being evaluated in collaborating countries. Both China and IRRI are involved in research to diversify CMS sources, to prevent genetic vulnerability problems in hybrid varieties.

Use of hybrid rice developed by China in Sri Lanka will be another area of cooperation between the two countries. Today, with the speedy development and growth witnessed in China, the relationship have further enhanced between China and Sri Lanka in economic, trade, investment, cultural and social spheres as well as people-to-people friendship bonds.

Prime Minister Gunawardena said in his video address, China’s success in eradication of poverty, rural upliftment and ensuring food security has been exemplary. “Sri Lanka wishes to thank your magnanimous contributions to the efforts of my country as well as other developing nations towards achieving food security,” he concluded.

An officials from the Ministry of Agriculture, Forestry and Fisheries has urged farmers to quickly cultivate their land again in order to prevent further economic losses for themselves and rebound from this year’s widespread flooding.

Kong Kea, head of the ministry’s General Department of Rice Crops, said on November 13 that with the floodwaters having receded, the majority of farmers are busy cultivating their land again after their paddy fields were inundated earlier this year and their crops damaged.

As of November 13, the cultivation of 2,784ha in Kratie province by rice farmers is at 100 per cent utilizing over 281 tonnes of seed from several different rice varieties. Farmers have cultivated 93 per cent of 3,125ha in Tbong Khmum, and 72 per cent of over 10,000ha in Kampong Thom. In Pursat province, farmers have cultivated just 16 per cent, or 1,105ha, out of the damaged 9,321ha of rice crops.

“The industry and effort of our farmers show that they have strived to restore and boost their household income to contribute to a reduction in poverty in their rural communities,” he said.

However, in some areas the farmers are reluctant or hesitant to restart their rice crops again, saying there is still standing water in their fields that prevent them from using power tillers or tractors there.

Has Saline, a 45-year-old farmer in O’Kanthor commune of Kampong Thom province’s Stung Sen district, said: “I will start to grow rice and restore it later in November because now my paddy fields still have knee-high standing water. So now I cannot use a power tiller there to plough my fields.”

However, Kea advised that farmers could use mechanised pumps to remove the water from their paddy fields and then plough their fields to kill the grass in advance before they sow the rice varieties. He cautioned that waiting for the waters to recede entirely is a lost opportunity for a larger harvest, especially for growing dry-season rice in the coming year.

“If we delay growing rice and restore it now, we will lose more opportunities to grow dry-season rice. But if we start now, we will be able to harvest rice in mid-February and be able to continue producing dry-season rice that can be harvested between May and June 2023 without worrying about the lack of irrigation water,” he said.

Tum Niro, director of the Stung Treng provincial Fisheries Administration (FiA) cantonment, said that in the previous rainy season, floods had damaged 187ha of rice fields and damaged a total of 334ha of horticultural crops. But since Stung Treng is a plateau, the restoration of rice cultivation is not possible because the irrigation system to supply water there remains limited, he noted.

“According to the present situation, most of our farmers in Stung Treng province need vegetable seeds and other cash crops that can be grown in a short time with some used as a food reserve. They cannot restore their rice because there is no adequate water for irrigation,” he told The Post.

Following the severe damages often caused by flood to the existing rice varieties, the National Agricultural Seeds Council (NASC) yesterday called on Nigerian farmers to adopt the new flood tolerant rice varieties to address yield losses. 

The innovative FARO 66 and 67 are improved varieties earlier released in 2017 by the Africa Rice and are suitable for planting in flood prone rice growing zones in Nigeria with potential to yield up to 80 and 10 times higher than their parent varieties.

Additionally, the varieties have been breed to withstand water submerge, reach maturity within 120-125 days with yield capacity of 6.6 and 6.7 tonnes per hectares respectively and are resistance to stem borers, bacteria leaf blight and African rice gall midge disease.

Their development came with technical support from the Korea-Africa Agriculture and Food Cooperation Initiative (KAFACI) currently running in 16 other African countries.

At a Mini Farmers’ Field Day to showcase the innovation and breakthrough of the varieties to farmers in Sheda, Kwali area council yesterday, NASC director-general, Dr Olusegun Phillip Ojo said the only possible solution to tackle crop yields losses due to flooding remains the use of flood-tolerant varieties.

He said, “Over time, we have continued to witness the severe impact of flooding on rice production in the country, we are experiencing even more severe flooding situation, our environment is changing, the impact of global warming is being felt, the rainfall pattern is becoming difficult to predict, even for the experts and flooding is becoming a more re-occurrent even.

Most of the popular rice varieties get severely damaged or killed within a week of severe flooding…these varieties have shown superior yield potential when compared to their parents”.

MUBAI/HANOI/BANGKOK AND DHAKA: Prices of rice exported from Vietnam held at a one-year peak, as traders anticipated a fillip from seasonal end-year demand, while rates of the staple from other hubs were little changed amid a lack of fresh orders.

Vietnam’s 5% broken rice was unchanged from the previous week at $425-$430 per tonne, free-on-board, the highest level since November 2021.

Traders said prices were likely to stay at this level or even edge up slightly over the coming weeks, as demand is often higher towards the year-end, with global food supplies unstable amid the Ukraine crisis.

Vietnam’s rice exports in October rose 22.3% from the previous month to 713,546 tonnes, government data showed, with exports in the first 10 months this year rising 17.4% year-on-year to around 6 million tonnes — valued at $2.95 billion.

Thailand’s 5% broken rice prices were quoted at $410 per tonne, versus $405-$410 last week. Prices have not moved much due to limited demand, but could soon weaken as new supply flows in, traders said.

“It’s harvest season, so supply will gradually come,” said a Bangkok-based trader. Prices of top exporter India’s 5% broken parboiled rice were also unchanged at $370-$375 per tonne.

“Flow of new orders have slowed down, but exporters could not reduce prices as rupee has been appreciating in last few days,” said an exporter based at Kakinada in the southern state of Andhra Pradesh.

Heavy rainfall earlier this month damaged rice crops just before harvest in key producing states. Meanwhile, severe flooding destroyed crops in neighbouring Bangladesh at a time when the country was struggling to rein in high domestic rates amid low supplies.

The US Department of Agriculture forecast Bangladesh’s production could drop 1% from last year to 35.6 million tonnes in the 2022-23 marketing year due to the floods.

Pakistan’s rice exports appear to be slowing down. Per PBS, volume exported declined by 9 percent during Q1-FY23 compared to the same period last year. Historically, exports usually do slowdown during the first quarter – as inventories start to run out – but the decline in the quarter ended Sep’22 appears to be stronger than usual. (For more, read “Rice exports: are good times over?”, published on November 08, 2022). Are rice exports facing strong headwinds, or will exports pick up with the arrival of the fresh crop?

Earlier this week, USDA made a strong cut to Pakistan’s rice outlook for marketing year 2022-23. The monthly update by the agency lowered rice production forecast to 6.6 million metric tons (MMT), down from 9.1MMT reported last year; and exports to 4MMT, down from record volume of 4.8MMT last year. USDA’s forecast follows the release of GoP’s own estimates during mid-October, which forecast national rice production at 5.5 MMT against the target of 8.5 MMT set in April 2022.

Although there appears to be consensus over significant damage to rice crop following the devastating floods, last month the Rice Exporters Association of Pakistan (REAP) had reportedly claimed that the “damage to the crop is minimal,” and that national production would comfortably reach 8MMT during the ongoing fiscal. It remains to be seen whether REAP’s forecast is on the money, or was an effort to calm the grain market and restrain local prices from rising out of control.

While REAP’s claim may not be without merit, it stands to reason why did rice exports slow down during Q1FY23 (Jul – Sep), if the crop has not performed so poorly? Interestingly, if commercial bank lending data is used as a proxy, rice stocks appear to have been running low long before the floods hit the country.

Chandigarh,

India’s basmati exports have increased owing to high demand and rise in prices of commodities globally after the Russia-Ukraine war. The exports increased by 37.34% in six months of the current fiscal to $2, 280 million (Rs 17,897 crore). Also, the per-unit value realisation rose to $1,057 a tonne compared to $853 a tonne in the last fiscal.

According to Agricultural and Processed Food Products Export Development Authority (APEDA), basmati shipments increased to 21.57 lakh tonne during April-September (FY23) as compared to 19.45 lakh tonne during the corresponding period last year. The rise in exports has also resulted in increased earnings for farmers of Punjab and Haryana as they account for over 70-75% of basmati exports from the country.

Oil-producing countries are major basmati importers. Countries such as Saudi Arabia, Iran, Iraq, Yemen, the UAE, the US, the UK, Kuwait, Qatar and Oman had a share of almost 80% in total basmati shipments from India in 2021-22.

“The increase in demand is mainly because of increased exports to Iran, which is a major buyer for Indian basmati,” said Vijay Setia, former vice-president, All India Rice Exporters Association.

By Olayinka Owolewa

The Federal Government said it has supported no fewer than 56 farmers in the North Central zone of Nigeria in rice production.

Dr Mahmud Abubakar, the Minister of Agriculture and Rural Development said this while distributing farm inputs to some of the selected farmers in Ilorin.

Abubakar explained that the purpose of the intervention is to bolster rice production in all parts of the country.

Represented by Mr Usman Bashir, Deputy Director (Rice) Value Chain in the ministry, described rice as a staple crop that is consumed in virtually all homes across the country.

“We therefore cannot afford to rely on the importation of this important food item and be exporting labour outside the country while our citizens can grow and produce it sufficiently.

“By encouraging cultivation, we are empowering our youths and creating jobs through the value chain from seed production, and nursery bed preparation to the last farm operation in the field which involves so many actors along the value chain.

“It equally does not stop at production, processors at different stages of parboiling, de-stoning, polishing and grading are equally engaged in line with this administration’s agenda to make Nigeria self-sufficient in rice production and for export.

“Against this backdrop, this administration is doing all it can within the limited resources and challenges of our time in the post-COVID-19 era to encourage Nigerians to grow more food amidst natural disasters, in the past few years,” he said.

According to Abubakar, the ministry has produced and distributed high-quality Early Generation Seeds (AGS) through the National Cereals Research Institute (NCRI) to produce more certified seeds for distribution to farmers at the grassroots to encourage community seed production.

“We are also producing and distributing Flood Tolerant Certified seeds of FARO 66 and 67 to farmers along the riverine areas of Niger, Kogi and Benue States to mitigate the effect of flood and other natural disasters as witnessed recently.

“The Ministry provides farm equipment in form of power tillers, transplanters, rice reapers, threshers and other simple farm tools to smallholder farmers in different locations at subsidised rates.

“There is also an upgrade in the milling process. New rice mills are springing up in the process of reestablishing integrated rice mills in strategic rice production clusters,” the minister said.

In his opening remarks, Dr Aliyu Kabiru, the State Director FMARD, said rice is a major staple food in Nigeria and since the ban on the importation, the rice value chain has developed tremendously.

“But we can all testify to the fact that the most important item in the value chain is the paddy. Due to several factors, the paddy is still relatively quite expensive.

“I am as excited as I believe you all are to be here today to learn how best or what better ways to produce rice.

“In addition to learning about the Good Agronomic Practices (GAP) in rice production, our capacity will also be built on safe/effective ways of using Agrochemicals to increase rice production,” Kabiru said.

Some of the beneficiaries in their responses commended the federal government for the opportunity given to them.

They said the opportunity has opened the door for them to learn a new way of rice production.

WITH countdown to Christmas, prices of 50kg bag of rice are already hitting beyond the roof including other ingredients, rice millers under the auspices of Rice Millers Association of Nigeria, RIMAN, Wednesday, expressed pain and frustration over the massive impact of the devastating flood on their mills to feed Nigerians.

Speaking with Vanguard on the plight of rice millers across the country, the National President, RIMAN, Peter Dama, said millers are down with serious frustration as they have lost machinery and rice paddy for production to the ravaging flood.

Peter said to compound plight of rice millers is the loans assessed from banks for their business, and the payment with interest stares at their faces, because they least expected this quantum of devastation occasioned by the flood.

He said Rice millers to survive with their families and also be in business is a big problem as most of the millers are displaced and are in Internally Displaced Persons, IDP, camps for survival.

He said: “Rice millers are still regretting the devastation of their rice mills and rice farms.

“They are presently waiting and hoping that there will be some interventions from government and donor agencies to assist them with funding to go back into business once again.

“The extent of damage is very high & devastating because a number of mills were submerged , while rice farms were washed off.

“Some of these millers took loans and they have to pay back to the banks, and unless government intervene, for these loans to be rescheduled or written off completely, rice millers and farmers will find it difficult to operate optimally.

“At the moment, Paddy is very expensive all over the country , because of high costs of farm Inputs and the flood that has washed off so many rice farms.

“At North Western Zone of the country, 75kg bag of Paddy is going for between N20,000 – 21,000 , depending on the quality, while in Plateau State @ Shendam local government area of the State, 120kg bag goes for N30,000 .

“In the South East 100 kg bag goes for N27000. Take note this is the season for harvesting of rice but the prices of paddy is still very high

“We are expecting the prices will go down but rather it is rising by the day in the markets.

“For now I have no records of mills that have been revived. Am sure it will take a little bit of time to clear off the mess and devastation caused by the floods. Millers are still trying to recuperate from the devastation.

“Our plea to banks is to beg them to reschedule the grants or loans granted to millers. The interest rates be drastically reduced to one percent or the loans be completely written off.”

He also gave update on what RIMAN is doing currently to seek for assistance to ameliorate plight of rice millers.

“RIMAN as an association, has escalated the news about the effect of flood disaster as it affects rice millers, to both local, states and federal government to come to their aid.

“Added to this we have also called on donor agencies, where possible to come to the aid of the flood victims.

“We have equally appealed to banks to reschedule loans or grants advanced to the flood victims” he said.

Meanwhile, he expressed hope that the Federal Government inaugurated presidential committee on flooding would bring intervention package to his members.

“There is some hope from the Federal Government and donor agencies. This is because we have heard that the President of the Federal Republic of Nigeria has set up a presidential committee to look into the plights of flood victims through the Ministry of Humanitarian Affairs and the Federal Ministry of Agriculture with the Central Bank of Nigeria, CBN.

“We believe this presidential committee will be able to reach the identified victims with their palliatives and financial assistance.

“Also, we have read that donor agencies like International Fund for Agricultural Development, IFAD, United States of America, USA , the United Kingdom, UK, governments and some Nigerian politicians have provided financial assistance to flood victims in some States, and we believe some of our millers through this intervention would also be reached if things are done appropriately by identifying those that are actually affected , without bringing in political consideration or political affiliation before one is considered to benefit from the intervention programme being envisaged”, he added.

With IARI planning to distribute seeds for the new variety to farmers in the next year’s kharif season, the export prospects of Basmati rice to the European Union (EU) is expected to get a boost as PB 1 variety has been traditionally shipped to these countries.

MANILA, Philippines — The government will distribute fertilizer vouchers to qualified farmer-beneficiaries to help boost rice production in the country, Malacañang said yesterday.

The Department of Agriculture (DA), which President Marcos concurrently heads, issued updated guidelines on the implementation of the fertilizer discount voucher project under the National Rice Program.

Under DA’s Memorandum Order 65, eligible beneficiaries will be given vouchers, which will be used in purchasing urea fertilizers, the Office of the Press Secretary (OPS) said in a statement issued yesterday.

“The use of fertilizer vouchers offers an alternative to farmers with lower purchasing power to buy a sufficient volume of urea recommended for their rice farm,” the OPS said.

The assistance aims to cushion the impact of “under-application of urea fertilizer to palay production and to food security.”

The fertilizer discount voucher project covers regions that plant inbred and hybrid rice seeds, except for the National Capital Region and the Bangsamoro Autonomous Region in Muslim Mindanao.

The discount vouchers are for one-time use only and may be claimed in any accredited fertilizer merchant in the preferred area of the farmer-beneficiaries.

“A supplemental fund sourced from an unprogrammed regular agency fund has been released to enable rice farmers to meet the recommended urea fertilizer, thereby securing rice production in the country,” the OPS said.

Data from the Fertilizer and Pesticide Authority showed that the average price of urea per 50-kilo bag is P2,523.68 and P2,490.35 for urea granular.

Marcos earlier met with officials of Chen Yi Agventures to discuss measures aimed at helping farmers affected by the increasing prices of fertilizers.

Chen Yi Agventures’ rice processing center is reportedly the most technologically advanced in Southeast Asia.

Western Visayas logs P1.5 billion agri damage

Meawhile, the cost of agricultural damage from Severe Tropical Storm Paeng in Western Visayas has soared to P1.5 billion, according to the DA regional office.

As of 9 a.m. yesterday, the region had recorded over 179,209 hectares of agriculture and aquaculture areas that were destroyed by the storm.

Rain and floods spawned by Paeng resulted in production losses of 32,934.38 metric tons of rice, corn and other high-value crops.

The storm also destroyed poultry, livestock, fishery and agricultural infrastructure.

Rice recorded the largest amount of loss with P694.77 million followed by aquaculture with P621.90 million.

Corn logged P42.99 million in losses; livestock and poultry, P23.53 million; high-value crops, P10.52 million, and sugarcane, P4.92 million.

The region’s irrigation system also incurred damage amounting to P50 million.

The province of Capiz was hit hardest in terms of agriculture with P745.3 million.

Tagged as the country’s seafood capital, Capiz’s aquaculture sector incurred P408-million damage.

Iloilo recorded P328-million damage to agriculture; Negros Occidental, P227 million; Antique, P199.8 million; Aklan, P16 million, and Guimaras, P4 million.

James Earl Ogatis, information officer of the DA regional office, said Paeng displaced an estimated 38,978 farmers and fishermen. – Jennifer Rendon

Harvested for the first time this season — Pusa Basmati 1847, Pusa Basmati 1885 and Pusa Basmati 1886 — were developed by Indian Agricultural Research Institute.

Sangrur/Patiala: They are disease-free, use half the water, cost less to grow, give higher yield and fetch higher prices. So, it’s no wonder that three new paddy varieties being grown in Punjab have been dubbed as “krantikari“, or revolutionary, by Harpreet Kaleka, who said that these new varieties will “rule the markets for the next 20 years”.

Kaleka, a farmer in Kamalpur village of Punjab’s Sangrur district, is talking about Pusa Basmati 1847, Pusa Basmati 1885 and Pusa Basmati 1886.

This harvesting season, Harpreet, who had planted all three varieties in June, is a happy man.

The varieties were developed by the Indian Agricultural Research Institute (IARI), an institute under the Indian Council of Agricultural Research (ICAR).

The 1847, 1885 and 1886 are improved versions of the Pusa Basmatis 1509, 1121 and 6, respectively, which accounted for 90 per cent of the Basmati rice exports from India. The need for developing these varieties arose in order to curb bacterial blight and blast diseases which affect the yield and grain significantly. Traditionally, these diseases were treated through chemicals like streptocycline and tricyclazole.

But, according to Harpreet, “Now the importing nations, especially European countries, have started rejecting rice with chemicals in them.”

How it began

Dr A.K. Singh, director of IARI, said that he had spoken to the farmers during the Kisan Sampark Yatra held in September. Singh told ThePrint, “We had given 1 kg seeds per acre to 10,000 farmers in different parts of the country (earlier this year)… My advice to these farmers was not to sell these seeds in the market and, instead, give it to other farmers in their blocks and districts to cover the maximum area of basmati cultivation.”

On 15 October, after reviewing the three varieties in the paddy field of IARI in Pusa, Delhi, the Union ministry of agriculture said, “There will be no need to spray pesticides in these varieties, which will reduce the cost as well as produce Basmati rice free from chemical residues, which will fetch good prices in the international market and directly benefit farmers’ income.”

When ThePrint visited Harpreet’s field Thursday, the 1886 variety was still being harvested, while other varieties (1847 and 1885) were ready to be sold.

“Even the cost of cultivating these varieties is less than what it used to be earlier, especially due to less water usage and no use of pesticides,” he said, adding that this was especially true for Pusa Basmati 1847.

For the two crop varieties — 1847 and 1885— the price in the local mandi is Rs 4,050 per quintal and Rs 4,200 per quintal, respectively. The older varieties, on the other hand, were being sold at lower prices. While Basmati 1509 was being sold at Rs 2,500-3,600 per quintal, the Basmati 1121 variety fetched Rs 3,800-4,000 per quintal.

The Minimum Support Price set by the central government for rice is Rs 2,040 per quintal for the 2022-23 crop year.

As for the produce this year, Harpreet said, “I had called some people at the local mandi and they said that this variety (Basmati 1886) will fetch Rs 4,500 per quintal.”

Harpreet says apart from this, the yield has also significantly increased. He said for the 1847 variety, this year, the yield has been 31 quintal while for the 1885 variety, it has been 22 quintal. This compared to the 1121 variety that he used earlier, the yield for which was 17-18 quintals.

Harpreet was able to harvest Pusa Basmati 1847 within 94 days of being planted and Pusa Basmati (1885) in 145 days. The only drawback in Pusa Basmati 1886 is that it takes longer (155 days) than the other two but that is compensated for with the good quality of rice, he said.

Harpreet is now distributing the seeds of these varieties to other farmers in his village.

Gurmail Singh, another farmer from the Gehlan village in Sangrur district, who has only cultivated the Pusa Basmati 1847, echoed Harpreet’s sentiment in calling it the variety “krantikari”.

Satisfied with the longer grain that reflects better quality of the product, Gurmail also agrees that the cultivation cost significantly reduced due to no use of pesticides.

“Apart from diseases, paddy yield is also negatively affected when the crop ‘lodges’. But this variety (Pusa Basmati 1847) is neither affected by disease nor suffers lodging,” says Gurmail.

Lodging refers to the bending of crops due to rain, storm or diseases or other reasons, resulting in weakening of the plant stem to a point where it cannot support the crop, resulting in wastage of the yield.

For Gurmail, Pusa Basmati 1847 took nearly 115 days to be harvested from the time the crop was planted.

High demand for the three varieties in Patiala

Bhagwan Das, president of the Young Farmers Association (YFA), a centre for agricultural research that also spreads awareness about new seeds and technologies, said that Patiala farmers are particularly impressed with Pusa Basmati 1847.

“The most important thing is that these new varieties have not seen any disease and the yield has also been better compared to all previous varieties,” he said.

Das also said that the 1885 variety, an improved version of Pusa Basmati 1121, does not face the problem of lodging and is also slightly better than 1121. “As regards to the yield, 1886 is the most outstanding. It has the maximum yield, particularly due to the long duration of the crop (longest time to be cultivated). Secondly, the quality of rice out of 1886 is also very superior,” Das added.

The three new varieties are seeing a high demand among the farmers in Patiala. “There is huge demand for these varieties amongst the farmers who have seen the demonstration (at YFA). They already want to book these seeds,” Das said. 

(Edited by Anumeha Saxena)

By Sulthan Haidar Dziban

The agricultural sector is one of the most important and most strategic sectors for the survival of a country, without food the country could be in a position of chaos and bankruptcy. According to data in 2020, the Production of rice in Indonesia is in second place after palm oil as the largest food commodity production figure at 54 million. There are so many ways that the Indonesian government does to maintain the availability of rice, one of the most ways is by importing rice, this import policy reaps a lot of cons because Indonesia is known as an agricultural country or a country with most of the worker in the agricultural sector, but unfortunately, Indonesia continues to import rice.

The data showed that Indonesia imported large amounts of rice in 2018, with an import volume of 2.25 million tons. Indonesia carried out this rice import because it could anticipate an increase in rice prices. At that time, the government was afraid of the supply because the existing rice could not meet the huge demand of the Indonesian market.

In the end, the good news came for Indonesia. Indonesian President Joko Widodo said that finally, for the last 3 years, starting from 2019 to 2021, Indonesia had no longer imported rice. The reason for this policy is that, according to Joko Widodo, the productivity of domestic farmers has increased. Besides that, Joko Widodo also explained that the cause of this high productivity is the infrastructure for the agricultural sector that has been built by the government.

The fact is Indonesian government has not stopped rice imports in the last three years, because, according to Kuntoro, the Head of the Public Relations and Public Information Bureau, Ministry of Agriculture (Kementan), there are still efforts to import rice, but imported rice is special rice, such as for foreign restaurants that require specially imported rice. However, the government generally uses domestically produced rice for public consumption.

On August 14, 2022, the International Rice Research Institute (IRRI) organization presented Indonesia with the Food Self-Sufficiency Award as a result of Indonesia’s accomplishment in sustaining national food security, particularly in staple rice.

Due to the current state of the world, which is experiencing a global food disaster due to the conflict between Ukraine and Russia, many nations have closed the export door to maintain their domestic stock, one of which is India, one of the exporters. Indonesia’s decision to stop importing rice to support local rice does not garner much attention or cause a stir in the international community at this time. With this momentum, Indonesia could discuss how seriously they should stop importing rice, whether it’s for everyday consumption or special rice, even to concentrate on the domestic agricultural industry.

Even though it no longer imports rice, Indonesia is attempting to become a rice exporting country, as stated by Airlangga Hartarto, the Coordinating Minister for the Economy, who stated that Indonesia will export 200,000 tons of rice due to the potential rice production of more than 7 million tons. However, the country of destination for rice exports is not mentioned.

The author strongly agrees with the policy decision made by Indonesia to stop rice imports, because the state should show its seriousness in the agricultural sector, especially rice. So far, Indonesia has been known as an agrarian country, but when you see the reality that Indonesia still imports rice often, it is appropriate for Indonesia to be able to provide its own domestic rice needs. Even with the term an agrarian country which is familiar to many people, Indonesia should be at the level of rice exporting country in high quantity or level. If this trend of rice imports continues to be carried out by Indonesia, there are many things that I fear, starting from the reduction of the next generation in the field of agriculture, because the successors feel that their efforts are not appreciated, because the country prefers to import and in the end, they will choose to work in other sectors. even if this import trend continues, the worst thing that will happen is that Indonesia will be very dependent on the exporting country.

Rice is a very important commodity in the Indonesian people’s lives; there is even a term in Indonesia that says that Indonesian people have not eaten if they have not consumed rice; from this term, it can be seen that rice has become a staple for the Indonesian people. If Indonesia’s situation continues to be dependent on the exporting country, I fear that Indonesia will have no negotiating power against that country. Indonesia will do everything possible to meet its country’s food needs, and with conditions like this, the country will lose its power.

Actually, in addition to the policy of stopping rice imports by Indonesia, Indonesia should also begin to show its seriousness in its efforts to procure land for agriculture, considering that in the current era a lot of agricultural land in Indonesia has been converted into industrial areas, housing, and even offices. The acquisition of more land for the agricultural sector will certainly affect the quantity of rice that can be produced by Indonesia.

Sulthan Haidar Dziban is an International Relations Student, Islamic University of Indonesia

Thiruvananthapuram: Rice prices in Kerala are unlikely to cool anytime soon despite the efforts of the administration to procure more quantity from outside the State. Even as the supply of ‘Jaya’ variety rice from Andhra Pradesh will get delayed by another five months, other varieties are likely to arrive in the Kerala markets after a month.

We are currently not cultivating the popular rice brand (Jaya), stated Andhra Pradesh Minister K V Nageswara Rao, after meeting with Kerala Food and Civil Supplies Minister G R Anil the other day.

Rao is the Minister for Civil Supplies and Consumer Affairs.

However, the Civil Supplies corporations of both states have reached a pact to start the supply of other rice varieties, including 'Surekha', besides grocery items like bengal gram, red cow pea, coriander, dried red chilli, and Kashmiri chilli from next month onwards.

Andhra Pradeh will resume the cultivation of ‘Jaya’. It has already readied the seeds. Kerala’s demand for supply of 3,840 tons a month can be met only after the harvest five months from now.

‘Jaya’ and ‘Jyothi’ form 70 percent of the rice being consumed by the people in Kerala. While ‘Jaya’ is procured from Andhra Pradesh, ‘Jyothi’ is supplied from neighbouring Tamil Nadu and Karnataka.

The inter-state ministerial-level talks were convened urgently as the prices of essential commodities shot up following a fall in the supply of rice from Andhra Pradesh in recent times.

The decrease in paddy output in Andhra Pradesh and Karnataka has led to the price rise. The retail price of loose Matta rice is Rs 60 per kilogram and branded Matta is Rs 67 per kg as of Monday. The wholesale price of Matta rice is Rs 58 per kg.

Genuine 'Jaya' not traded now

Minister Nageswara Rao said the rice being supplied in Kerala in the name of ‘Jaya’ brand was not the real one.

‘Jaya’ is cultivated in the Godavari region. When the Food Corporation of India (FCI) stopped its procurement years back, the Andhra Pradeh farmers started cultivating other rice brands instead of ‘Jaya’, said Ahmed Babu, the Managing Director of Andhra Pradesh Dairy Development Cooperative Federation Limited. (Babu is originally from Kerala.)

Minister Anil evaded from giving a direct reply when asked whether the government will initiate action if fake 'Jaya' rice is being made available in the state.

10 kg rice for white cardholders

White card holders in Kerala will get 10 kg rice at Rs 10.90 per kg this month, Minister Anil said. Out of this, 8 kg is in addition to the usual quantity provided. Blue card holders too will be allocated an additional 8 kg of special rice, he said.

The Civil Supplies Department had published the ration allotment chart without including the special rice provision as announced by the minister. However, the minister promised the same will be distributed at ration outlets.

Ration card holders can collect rice from Mobile Maveli Stores in taluks where there are no Supplyco outlets or Maveli stores. Jaya, Kuruva, Matta, and Pachari will be given free of cost.

The government has said it will allow cargoes of white and brown rice backed by letters of credit issued before September 9 to be shipped overseas, a measure that provides some relief to exporters grappling with fresh government curbs.

The world’s biggest exporter of rice on September 8 banned exports of broken rice and imposed a 20% duty on exports of various grades as it sought to boost domestic supply and calm local prices after below-average monsoon rainfall curtailed planting.

The surprise move trapped nearly 1 million tonnes of rice at ports or which had been in transit before the government made the announcement.

“It’s a big relief, which we have been asking for the last few weeks,” said BV Krishna Rao, president of the Rice Exporters Association.

Export prices for Indian white rice have risen 12% since September 9.

The government also said in its notice issued late on Monday that it would allow 600,000 tonnes of unmilled rice to be exported to Nepal, which traditionally relies on India to fulfil its foodgrain requirements.

India accounts for more than 40% of global rice shipments and competes with Thailand, Vietnam, Pakistan and Myanmar.

New Delhi last month allowed 397,267 tonnes of broken rice to be exported. — Reuters

Prices up 12% since Sept 9

• The world’s biggest exporter of rice on September 8 banned exports of broken rice and imposed a 20% duty on exports of various grades as it sought to boost domestic supply
• The surprise move trapped nearly 1 million tonne of rice at ports or which had been in transit before the government made the announcement. Export prices for Indian white rice have risen 12% since September 9

India said it will allow cargoes of white and brown rice backed by letters of credit issued before Sept. 9 to be shipped overseas, a measure that provides some relief to exporters grappling with fresh government curbs.

The world’s biggest exporter of rice on Sept. 8 banned exports of broken rice and imposed a 20% duty on exports of various grades as it sought to boost domestic supply and calm local prices after below-average monsoon rainfall curtailed planting.

The surprise move trapped nearly 1 million tonnes of rice at ports or which had been in transit before the government made the announcement.

“It’s a big relief, which we have been asking for the last few weeks,” said B.V. Krishna Rao, president of the Rice Exporters Association.

Export prices for Indian white rice have risen 12% since Sept. 9.

The government also said in its notice issued late on Monday that it would allow 600,000 tonnes of unmilled rice to be exported to Nepal, which traditionally relies on India to fulfill its food grains requirements.

India accounts for more than 40% of global rice shipments and competes with Thailand, Vietnam, Pakistan and Myanmar.

New Delhi last month allowed 397,267 tonnes of broken rice to be exported.
Source: Reuters (Reporting by Rajendra Jadhav; Editing by Edwina Gibbs)

Move for direct procurement from Andhra Pradesh

Non-priority ration card-holders in the State (white and blue cards) will get 8 kg of rice at ₹10.90 a kg from November 1 as part of the government’s market intervention programme to bring down the price of the staple foodgrain, Food Minister G.R. Anil has said.

The move comes in the wake of the spiralling price of rice in Kerala over the past two weeks.

In addition, stocks of four varieties of rice have been despatched to 500 centres across the State for distribution through mobile Maveli stores at concessional rate. Card holders in places where there are no Supplyco or Maveli store outlet will be eligible for 10 kg of rice from the mobile units.

Mr. Anil said here on Monday he would hold talks with Andhra Pradesh Food Minister K.P. Nageswara Rao here on Tuesday on direct procurement of rice and chilli. The discussions are a follow up of the talks held with the AP government two weeks ago. Kerala is seeking procurement of Jaya rice, the preferred choice of people in the State, from Andhra through the direct route without the involvement of middlemen. The qunatity of rice to be procured and the price would be finalised at the talks on Tuesday, Mr. Anil said.

Senior officials from Andhra Pradesh, including the Civil Supplies Commissioner, are accompanying Mr. Rao.

MUMBAI, Nov 1 (Reuters) - India said it will allow cargoes of white and brown rice backed by letters of credit issued before Sept. 9 to be shipped overseas, a measure that provides some relief to exporters grappling with fresh government curbs.

The world's biggest exporter of rice on Sept. 8 banned exports of broken rice and imposed a 20% duty on exports of various grades as it sought to boost domestic supply and calm local prices after below-average monsoon rainfall curtailed planting.

The surprise move trapped nearly 1 million tonnes of rice at ports or which had been in transit before the government made the announcement.

"It's a big relief, which we have been asking for the last few weeks," said B.V. Krishna Rao, president of the Rice Exporters Association.

Export prices for Indian white rice have risen 12% since Sept. 9.

The government also said in its notice issued late on Monday that it would allow 600,000 tonnes of unmilled rice to be exported to Nepal, which traditionally relies on India to fulfill its food grains requirements.

India accounts for more than 40% of global rice shipments and competes with Thailand, Vietnam, Pakistan and Myanmar.

New Delhi last month allowed 397,267 tonnes of broken rice to be exported.

Its first time Haryana State Cooperative Supply & Marketing Federation Limited (HAFED) of Haryana government has recently received export orders for 20000 ton Basmati rice from Saudi Arab. Information reveals, Haryana state holding nearly 50% share in export of rice in the country at present. However, export of Basmati rice from Haryana was adversely affected in past two years due to epidemic outbreak in the country as well as in the world resulting rice exporters and farmers cultivated paddy crop suffered a lot in this period due to slump in the market. Whereas, as a result of improvement in system and relief in economic conditions in the world the demand of rice in domestic markets as well as in export markets have returned on the track like previous years.

Information reveals, rice produced in India, especially Basmati rice in Haryana is in much demand in gulf and European countries due to its favor and after a slump in market for a period of two years rice exporters in Haryana state are now getting plenty of export orders from gulf countries which include Saudi Arab, Qatar, Iran. Iraq, Behrin, Kuwait, UAE, Yaman, Omen and other gulf countries as well as from all European countries including Germany, UK, France, Italy, Spain and Ukrain as such farmers in Haryana state are expecting to recover all losses incurred in past two years due to crisis.

The arrival of new paddy crops in grain markets in Haryana state has started and likely to start as such farmers as well as rice exporters are happy over good demand in domestic as well as export markets this year. According to Kailash Bhagat HAFED Chairman they are expecting good export orders for Basmati rice from other countries also this year and will procure quality Basmati rice from farmers in the state for exports. He told that minimum support price (MSP) of different quality of rice is fixed by the government on the basis of price in open market and farmers are hopeful for better price of tof heir paddy crop this season.

According to information, arrival of limited quantity of Basmati variety 1718 has started arriving in grain markets in the state which is being sold at the rate Rs 3700 per quintal as against price Rs 3200 per quintal last year.  The rate of another variety Basmati DP1401 too is available in grain markets in the state at the rate Rs 3750 per quintal at present which was being sold at the rate Rs 3100 per quintal last year. The rate of Basmati rice variety1509 available in grain markets i9n the state at present at the rate Rs 3300 per quintal was sold last year at the rate Rs 2200 per quintal. Similarly, the rate of ‘Pusa’ variety Basmati rice being sold at present in grain markets at the rate Rs 3700 per quintal was available at the rate less than Rs 3300 per quintal last year. According to experts, the rates of Basmati produced in Haryana state is likely to reach much higher this season due to increase in demand not only in domestic markets but also all over in the world where ever the flavor of Basmti rice produced in Haryana reaching.   

MUMBAI/ HANOI/ BANGKOK/DHAKA: Prices of rice from top exporter India edged up this week on an up tick in the rupee and supply concerns, while a cyclone destroyed crops in Bangladesh at a time when it was already struggling to tame high local rates for the staple.

India’s 5% broken parboiled variety was quoted at $375-$384 per tonne, down from $374-$382 last week.

“Farmers are making profit from the current price, and this will encourage them to invest more in the upcoming winter-spring crop, the largest of the year,” a trader in Ho Chi Minh City said.

By Ashitha Shivaprasad

Oct 27 (Reuters) - Prices of rice from top exporter India edged up this week on an uptick in the rupee and supply concerns, while a cyclone destroyed crops in Bangladesh at a time when it was already struggling to tame high local rates for the staple.

India's 5% broken parboiled variety <RI-INBKN5-P1> was quoted at $375-$384 per tonne, down from $374-$382 last week.

The size of the Indian crop would be lower than earlier expectations as rainfall has damaged paddy in northern and north-eastern states, said an exporter based at Kakinada in the southern state of Andhra Pradesh.

Heavy rainfall damaged crops just before harvest in key producing states such as Uttar Pradesh, West Bengal and Andhra Pradesh earlier this month.

Neighbouring country Bangladesh, meanwhile, was grappling with the aftermath of cyclone Sitrang, which struck on Monday.

The storm destroyed rice crops on 6,000 hectares, according to preliminary estimates from the agriculture ministry, in a likely blow to the country, which has been trying to bring down elevated domestic prices after floods earlier this year destroyed 254,000 tonnes.

Prices of Vietnam's 5% broken rice <RI-VNBKN5-P1> were unchanged at $425-$430 per tonne free-on-board.

"Farmers are making profit from the current price, and this will encourage them to invest more in the upcoming winter-spring crop, the largest of the year," a trader in Ho Chi Minh City said.

The government on Wednesday forecast Vietnam's rice exports in the first 10 months of the year at 6.07 million tonnes, up 17.2% from last year. October exports were forecast at 700,000 tonnes.

Preliminary shipping data showed 387,050 tonnes to be loaded at Ho Chi Minh City port during Oct. 1-28, with most of it heading to the Philippines, Africa, Cuba and Bangladesh.

Thailand's 5% broken rice prices <RI-THBKN5-P1> were also little changed at $405 per tonnes.

Traders said demand was flat with no major deals in the market. (Reporting by Rajendra Jadhav in Mumbai, Khanh Vu in Hanoi, Panu Wongcha-um in Bangkok and Ruma Paul in Dhaka; editing by Arpan Varghese and Maju Samuel)

Statistics Indonesia (BPS) has forecast the nation's rice production will reach 32.07 million tonnes this year, up 2.29% as compared to 31.36 million tonnes reached in 2021.

Jakarta (VNA) - Statistics Indonesia (BPS) has forecast the nation's rice production will reach 32.07 million tonnes this year, up 2.29% as compared to 31.36 million tonnes reached in 2021.

Deputy for BPS Statistics of Distribution and Services Setianto said the October-December output is estimated at 5.9 million tonnes, up 15.12% from the same period last year.

Based on production per island, Java island contributes the most as compared to other islands, with a total contribution of 56.12%, or 18 million tonnes, of which 31.07% of the production is in East Java.

Earlier on August 15, Indonesia's Ministry of Agriculture said the country had stopped importing edible rice due to ample supplies, and only imported rice for industrial purposes.

Latest study by leading global research agency shows how the grain is witnessing an increased demand, globally

PRI ECO GEN NAT .NEWDELHI DCM12 KRBL Limited Latest Study Recognizes India Gate as the World's No. 1 Basmati Rice Brand New Delhi, Delhi, India Business Wire India Latest study by leading global research agency shows how the grain is witnessing an increased demand, globally The made-in-India brand successfully exports Basmati Rice to over 90 countries, translating to 8+ cr. packs annually As a global leader brand in the category, India Gate plans to grow in India through converting a largely loose unbranded category to a branded one The aromatic Basmati Rice is a staple across households in India. According to a recent research study on the Global Basmati Rice Market, the iconic grain is witnessing huge demand owing to its high quality, premium appearance, and distinct taste. India Gate, the flagship brand of KRBL, has been recognized as the world's No. 1[1] Basmati Rice Brand in a market study conducted by a leading global research company. The quantitative study by Mordor Intelligence covers research of White and Brown Basmati Rice Category across continents like Americas, Europe, Asia-Pacific, and Middle East & Africa. The research has been done using methodologies like Primary & Secondary Research, Data Triangulation and Insight Generation. Mordor Intelligence, a leading global research company founded in 2014 has been conducting studies providing insights to 4000+ enterprises across 100+ countries across multiple industries. Since its introduction in 1998, India Gate Basmati Rice, has been working continuously to deliver its purpose of enriching lives through Basmati Rice, a nutritional wonder of nature. Over the years, India Gate has developed a successful global consumer franchise, as evidenced by the fact that it is exported to over 90 countries and sells 8+ cr. packs annually. The grains of India Gate Basmati Rice are aged to perfection, which makes them longer, fluffier, non-sticky, and full of beautiful aroma, setting them apart from the others. Commenting on this, Mr. Anil Kumar Mittal, Chairman and Managing Director, KRBL Limited, said, With a rich industry experience of more than a century, KRBL Limited has created its place as a world leader in the Basmati rice industry. From the very beginning, our unconditional commitment has been to offer the best quality to our consumers. Today, our flagship brand India Gate Basmati Rice is appreciated worldwide for its premium quality. This latest study recognizing India Gate Basmati Rice as the World's No.1 Basmati rice brand is testimony to our unwavering commitment to get the best quality basmati on the consumer plates across the world. In India there's a huge task ahead to convert a largely unbranded loose market into a branded one. Mr. Mittal adds, Brand India Gate has tasked itself to drive conversion from unbranded Basmati Rice to branded. There is a well thought out strategy basis robust consumer and category insights that has been put in place to drive this which includes sharp consumer communication, aggressive retail footprint expansion from the current 3 lacs to 5 lacs outlets, distributor expansion in lower population class markets and scaling up digitization to accelerate efforts in this direction. Products in the India Gate Basmati Rice portfolio are available across leading e-commerce platforms as well as offline modern trade and general trade stores. [1] As per Secondary Market Research Report, MAT June 2022 About KRBL KRBL is world's largest & only integrated manufacturer and exporter of Basmati rice. The Company is certified by FSSC 22000 issued by Eurofins, a globally recognized certification. The certification confirms that the organizations food safety management system is in conformance with the scheme requirements. It also showcases how the Company has been successful in maintaining compliance with international standards. Thus, ensuring top-notch product quality and safety attributes. KRBL has two state-of-the-art manufacturing units and four technologically advanced packing units strategically located across India. Through their extensive network of 500+ distributors and 3 lac+ retail outlets operating in more than 750 cities, KRBL enjoys product presence throughout all of India. KRBL Limited is also India's first, integrated rice company with an extensive supply chain presence and a rich, 130-year history. With processing capacities of 195 MT/per hour. KRBL Limited's portfolio also includes 14 brands in Rice and a variety of healthy food products like Quinoa, Chia Seeds, Flax Seeds, and Brown Rice. The Company offers its rice under a varied range of brands namely India Gate, Unity, Nur Jahan and many more. Its's flagship brand India Gate is appreciated worldwide for its premium quality. The Company engages in seed production, touch cultivation, paddy procurement, storage, processing, and packaging, basmati rice branding and marketing. The Company enjoys presence in the domestic as well as in 90+ international markets, which includes USA, Australia, EU, Saudi Arabia, United Arab Emirates, Kuwait and Qatar, amongst others.

Parboiled rice is partially pre-cooked in its inedible husk before being processed for eating.

Nigerians may have to brace themselves for a surge in the price of a 50kg bag of locally parboiled rice to as high as N50,000 before December on the back of the floods in many states, traders and distributors of the commodity have said.

Flood incidents in Africa’s biggest economy that have destroyed 70,566 hectares of farmland, damaged 45,249 houses and displaced over 1.4 million Nigerians, with about 600 persons reported dead, according to the Ministry of Humanitarian Affairs, have sent prices of food items on an upward trajectory, especially in affected communities.

Rice, a key staple mostly consumed by households, has been affected the most by the impact of the flood. The situation has caused the price of paddy to jump from N200,000 to N300,000 per tonne in three weeks owing to the flood.

The recent jump in paddy prices is piling more pressure on rice millers that are already contending with rising production costs amid a nearly three-fold increase in diesel cost.

In September, the country’s inflation hit a 17-year high at 20.7 percent, according to the National Bureau of Statistics.

“With the rate the prices of rice are surging daily, we might even buy it at N50,000 before December,” said Ronke Adewale, a rice trader at Daleko Market in Mushin.

“Our suppliers keep adding money and attributing it to the flood and high cost of transportation,” she said.

“If you have the money, you better buy now and stock because if it persists, it will be worse in December,” she said.

Adewale Adegbenro, a Lagos-based rice distributor who buys from millers in the North, said the price of rice would exceed N50,000 by December owing to supply shortfall caused by the floods.

“As a today, the rice we supplied was sold at N43,000 in Lagos, so it is definitely going to exceed N50,000 by December,” he said.

Mohammed Abubakar, chairman of the Rice Processors Association of Nigeria, said the recent surge in the price of a bag of rice is a result of a combination of issues escalated by the floods.

“The recent surge in the price of a bag of rice is a result of the flooding in major producing states and a combination of other issues of high diesel and transportation costs,” Abubakar said in his response to questions from BusinessDay.

“The flood has submerged hundreds of rice farmlands and has caused the price of paddy to jump from N200, 000 to N300, 000 per tonne. It has also worsened the diesel and transportation situation in the North,” he added.

Currently, 33 out of the country’s 36 states have been ravaged by flood, and this has caused transportation costs to further surge as tankers conveying petroleum products to the northern states are unable to move as the incidents cut most road networks in the region.

BusinessDay surveyed some markets in Lagos and found that a 50kg bag of locally produced parboiled rice sells for an average of N35,000 as against N28,000 a month ago.

A 50kg bag of foreign parboiled rice now sells for N43,000 as against N31,000 a month ago, indicating a 38.7 percent rise in price.

The country’s largest farmland of 10,000 hectares in Nasarawa owned by Olam and worth about $140 million investment has been submerged by floods, according to Ade Adefeko, vice president of external relations and stakeholder management at Olam Agri.

Owing to the current shortfall in supply, some traders of rice in Lagos – the country’s commercial centre – are hoarding the commodity in anticipation of selling at a higher price, BusinessDay gathered.

Since Russia invaded Ukraine in February, the price of rice has been relatively stable amid accelerating inflation and dwindling household income. Experts attributed the price stability of the staple to an increase in local production.

Africa’s biggest economy cultivated 8.2 million metric tonnes of rice paddy in 2020, according to the latest data from UN Food and Agricultural Organisation.

The most recent reliable figures for production come from the United States Department of Agriculture, which has projected that Nigeria’s rice production will reach five million tons in 2022, slightly above the 4.8 million tons it predicted last year.

With this production, the country will still have a deficit of two million tons with demand at 7 million tons, according to the Ministry of Agriculture.

But the gains made in the sector are currently being threatened by flooding and FX volatility as rice is among the 41 items restricted from FX by the country’s apex bank.

The floods sweeping through many parts of Nigeria have taken a huge toll on some rice farms.

Thousands of hectares of rice farms in Taraba, Jigawa, Kano, Benue, Niger, Kogi, and Kebbi, among other states, have been reportedly washed away.

“Though the impact of the flood on rice farms in Kebbi State is not as bad as we expected, as those who have their farms in areas not prone to flooding have been able to get good harvest, rice farms near River Niger have suffered a lot of damage,” said Muhammad Augie, former chairman of Rice Farmers Association of Nigeria, Kebbi State chapter.

Augie said the flooding will certainly impact rice prices negatively as Kano, Jigawa, Taraba, Niger, and many other states that are the hubs of rice production in the country had their farms badly affected.

“They will experience low harvests this year, which will then translate to high cost of rice,” he said.

The rising flood in Nasarawa State has wrecked and immersed the Olam Rice Farm, which is worth over $15 million.

The farm has lost over 4,500 hectares of cropping land, according to a statement issued by the company.

Ade Adefeko, vice president of Olam Nigeria Limited, while explaining the effect of the flooding on their rice farm and its ripple effect on the price of rice, said: “Well, with what happened on October 2, I will tell you that 25 percent of the crop for rice has been taken out. We should expect an increase in rice prices in December. Of course, that goes without saying, because the entire crop has been lost.”

There are fears among stakeholders in the rice value chain that the flooding that is still wreaking havoc on rice farms in rice-producing areas will affect the harvest. The average Nigerian also fears that rice, the most common staple, may surge during the festive season.

Emeka, a wholesale rice seller at Boundary market, complained that just last week, local rice (50kg) was sold for N34,000 while foreign rice was sold for N38,000, but this week foreign rice is N40,000-N42,000 per (50kg) while local rice is N37,000-N39,000.

“The problem we are facing is explaining the jump in price to retailers and consumers,” he said.

The recent flooding in many parts of the country is expected to worsen the food inflation in the country, especially for major food staples such as rice.

The National Bureau of Statistics said food inflation accelerated in September for the seventh straight month to 23.34 percent, caused by increases in prices of bread and cereals, food products, potatoes, yam, and other tubers, as well as oil and fats.

In the months ahead, rice may be on the list of food items seen to be pushing up food inflation.

IARI developed five seeds in 2020 and 2021, which are now ready to be used in fields after all trials; these paddy seeds can resist diseases and herbicides

Five new varieties of seeds of Basmati rice, developed by a group of scientists led by the Indian Agriculture Research Institute (IARI) Director Dr. Ashok Kumar Singh in 2020 and 2021, are all set to bring revolutionary changes in the way Basmati rice is cultivated in the country.

Three of the five varieties can resist two common diseases of paddy (one bacterial and one fungal). The other two varieties can save 35% of water as the method of Direct Sowing of Rice (DSR) can be used to raise them. These two seeds are resistant to herbicides too, helping the farmers control weeds more efficiently.

In the next three years, all of the five seeds will have the combined qualities of disease and herbicide resistance, says Dr. Singh.

“This is a landmark achievement. We started the research in 2008. This is 100% indigenous revolution using indigenous breeding programmes,” Dr. Singh tells The Hindu. “This will help in increasing farmers’ income by reducing the cost of cultivation, by improving production and by realising price of their labour and input cost. The cost of cultivation will be reduced. It will reduce the use of pesticides and water. If the production is free from residue, it will get better prices,” he explained.

Export in mind

India is known for its Basmati rice, with seven States — Jammu and Kashmir, Himachal Pradesh, Punjab, Haryana, Delhi, Uttar Pradesh and Uttarakhand — earmarked for geographical indication. Basmati, known for its mouthfeel, aroma, length of the grain when cooked and taste, has a market abroad and brings about ₹30,000 crore foreign exchange every year. While 75% of the export is to West Asian countries, European Union countries also import Indian Basmati. However, recently, the export to EU countries faced certain hurdles due to the increase in the pesticide residue levels in the rice from India.

Dr. Singh says that over a period of time, as the area of cultivation increased, traditional varieties become susceptible to two major diseases — bacterial leaf blight (BLB) and blast (leaf and collar) diseases caused by the fungus Magnaporthe oryzae. Pesticides and fungicides used against these diseases increased the residue levels permitted in developed countries.

“Achieving the permitted levels is very difficult if we are using pesticides for controlling pests. The only way was that we bring in genetic resistance so that we do not have to spray pesticides and fungicides. So, from Pusa Basmati 1121, we developed Pusa Basmati 1885; from Pusa Basmati 1509, we developed Pusa Basmati 1847; Pusa Basmati 1401 was improved to develop Pusa Basmati 1886. All these varieties have two genes to resist BLB and two genes to resist blast disease. Farmers need not use pesticides and it will decrease the cost of farming by ₹3,000 per acre. Because of effective disease control, production will increase and most importantly, there is no question of pesticide residue and our consignments will not be rejected,” Dr. Singh says.

The IARI provided one kilogram each to about 10,000 farmers in these seven States in 2021. “They had grown these crops during this kharif season. In the last week of September, I travelled 1,500 kilometres to see for myself how the crop is doing and to hear the feedback from farmers. I stayed at the residences of farmers. There is phenomenal response for these varieties. I am hoping that from next year, these varieties will change the scenario of Basmati cultivation and it will directly help in terms of addressing the problem of pesticides residue,” Dr. Singh says, sharing hopes of an increased coverage area in the next crop year. “I have asked farmers to keep this year’s produce for next year as seeds,” he adds.

The IARI developed Pusa Basmati 1979 and Pusa Basmati 1985 as herbicide tolerant rice by improving the Pusa Basmati 1121 and Pusa Basmati 1509, respectively. The traditional way of paddy cultivation relied on transplanting the plants into a water-filled field midway through the cycle. “Around 3,000 litres of water is required for one kilogram of Basmati rice. This has impacted the groundwater table of States like Punjab and Haryana. We have to change the practice of cultivating transplanted variety of paddy to direct sowing of rice (DSR). Water saving is 35% in DSR and the requirement will be 2,000 litres of water for a kilogram of rice. The second advantage is that the green house gas emission is reduced by 35% as water is not stagnating in this process. Labour cost of transplantation, which is about ₹3,000, is also saved. Overall, saving will be at least ₹4,000 per acre. Just do the sowing in the field and let the crop grow there,” he says.

However, one of the major problem in the DSR is weeds. Without the water acting as a herbicide, the DSR method allows for lot of weeds to crop up in the field. “So, we transferred a gene that is resistant to a herbicide. So, when farmers spray herbicide, weeds will be killed, not paddy,” he says.

Process in place

The first process in developing these two varieties was to do a mutation breeding using a chemical called Ethyl Methanesulfonate (EMS) to identify a variant in the plant that survives the application of herbicide.

“Last year, we released the seed to farmers on an experimental process. This is a non-genetically modified herbicide-tolerant seed. GM is a good technology but many markets such as European Union doesn’t accept GM rice. We get about ₹8,000 crore from exporting Basmati rice to EU countries. A minor step is incomplete, which is making an application to the Central Insecticide Board’s registration committee to allow us to expand its label claim to this variety. The process may take some time. We have to submit dossiers about the efficacy of the seed. The data has been submitted. We hope that all formalities will be cleared by next crop season. This year, we have done trialling under control. Everything is fine. It provides effective weed control. The cooking quality is also excellent. There is no residue of any kind of herbicides,” Dr. Singh says.

ISLAMABAD: As the government has approved fixed electricity rates for selected export sectors of the country to facilitate exporters, the rice exporters have expressed their concern that despite being a major contributor, the rice sector has been neglected.

Through a notification issued here on October 19, 2022, the Ministry of Energy has fixed the electricity rate for the five export-oriented industries including textiles, leather, carpet, surgical and sports goods.

According to Taufiq Ahmed, former Vice President of Rice Exporters Association of Pakistan (REAP), the sector, despite contributing $2.5 billion in the exports of the country, was not included in the fixed energy facility.

“Even sectors having less than the contribution of rice in exports have been included in the list. Unfortunately we, despite competing, India, the major competitor, have been neglected,” he said, adding that the export of rice could go up to $3 billion if the sector is given the due attention.

“The rice exporters are now facing the huge challenge of competing with India in the international market as the exporters in neighboring countries comparatively enjoy good crops, stable currency and lower rate of dollar. We are unfortunately expecting a setback under the prevailing situation,” the rice exporter claimed.

As per the notification of the ministry of energy, the energy rate, “Regionally Competitive Energy Rates for Export Oriented Sectors” would be available for the exporter from October 1 to June 2023.

Earlier, the Ministry of Commerce, through a summary had requested ECC to approve the fixed Rs 19.99/kWh all-inclusive rate for the five sectors. The same was approved by ECC on October 10, 2022. Following the approval from ECC and cabinet the ministry of energy has asked all DISCOs (including K-Electric) to provide electricity on fixed rate to the five sectors.

Federal Minister for Finance and Revenue Mohammad Ishaq Dar had announced the relief measure, saying that the finance ministry would bear around Rs100 billion for the period of one year, which was the difference of actual and subsidized rate.

Earlier, the government provided the electricity at the rate of US 9 cents, which was to continue only for two months.

Dar claimed that the Pakistan Muslim League (Nawaz) government had provided Rs147 billion targeted relief or Duty Drawback to exporters back in 2017, and resultantly the exports were increased by 12.7 percent.

Rice Market Update: Challenges Abound to Market New Crop, Cover Production Costs

With harvest now almost complete, the long grain industry finds itself on a precipice and is not entirely sure where to go next. Paddy prices remain firm, but the spot market is not as active as most producers expected it to be post-harvest. That’s because the largest milled market for U.S. rice is getting worse with each passing day, as it’s nearly impossible to unload a vessel in Haiti right now—even for NGOs trying to help the people in crisis.

If we look at paddy exports as a bright spot, the U.S. continues to lose market share in Mexico to other origins from South America, namely Brazil. The 80,000 metric tons of Iraq business that has been keeping mills busy was for old crops, and the milling is winding down.

The domestic market has been the steady savior, but with both Haiti and Iraq in the wings and prices that are significantly higher than the competition, it will be an interesting year marketing this crop.

After considerable delay and debate in Mexico, the federal government published details of their recent Anti-Inflationary Program that has been reported previously in the Rice Advocate. However, it remains unclear as to the treatment for rice and in the meantime, the length decree (link below) is being interpreted as no real change. Any Mexican company with importing history can access the license while the duty exemption is valid only for paddy rice.

The Mexican federal government decree that exempts the payment of import tariff and administrative facilities are granted to various goods of the basic basket and supplies that are indicated. The decree can be found here. A new USDA Gain report on the decree is forthcoming.

These are the factors that don’t even take into account the rising value of the dollar making U.S. exports more expensive, which further depresses our ability to be price competitive with our Western Hemisphere counterparts. Trade is not a focus of the current White House Administration, therefore significant headwinds prevail in developing new markets and sustaining existing ones.

On the ground, Texas prices are holding firm at $17/$18, however with limited activity. The same goes for Louisiana where prices are at $17. Mississippi, Arkansas, and Missouri are all competing for barge space that is limited by low water on the Mississippi River, with prices at $16/$17.

In Asia, the market is holding steady as well. It continues to be an anomaly that rice prices have not experienced the same wild volatility that most other food grains have. Thai 100% B is quoted anywhere from $415-$425 pmt this week, right in line with previous weeks. Vietnamese 5% is pegged at $430 pmt, which is also in line. India remains at $380 pmt, which has been the “new” price since making their tariff announcement.

The weekly USDA export sales report shows net sales of 11,200 mt this week, down 13% to Colombia (10,400 MT), Canada (400 MT, including decreases of 200 MT), Mexico (200 MT), the Netherlands (100 MT), and Micronesia (100 MT). Exports of 7,100 MT were dismal as well, down 87% and headed primarily to Canada (2,400 MT), Mexico (1,900 MT), Jordan (1,000 MT), the United Kingdom (900 MT), and Saudi Arabia (500 MT).

The futures market was active this week, with average daily volume jumping 16% up to 1,448. Open Interest also bumped 4.22% up to 8,289.

MUMBAI: India’s recent curbs on rice exports could trigger a rally in global prices after more than a decade of stability, traders said, as New Delhi’s protectionist move coincides with falling output in other major producers and rising global demand.

Uneven monsoon rains hit rice planting in India, prompting the export restrictions in September, and floods have cut output in Pakistan even as consumption has grown in top importers such as Bangladesh and the Philippines. That’s why forecasters are saying global demand will outstrip production in 2022-23.

This is bad for Asian and African countries that use rice as a staple, some of which import as much as 60pc of their supply.

Since India - the world’s biggest rice exporter - banned exports of broken rice and slapped a 20pc export tax on some non-basmati varieties, global rice prices have jumped more than 10pc. Last month, the Food and Agriculture Organisation’s global rice price index rose 2.2pc to hit an 18-month high.

“The international market has gone up and it will go up further,” said Nitin Gupta, vice president for Olam India’s rice business.

Governments worldwide had already been struggling to tame food inflation because of Covid-19 disruptions to production and supply chains, and then Russia’s invasion of Ukraine removed millions of tonnes of foodstuffs from global markets, pushing inflation to a record earlier this year.

Still, before India implemented its export curbs a few months ago, industry and government officials in Asia were saying rice prices would hold steady due to ample stocks.

Rice, unlike wheat, was insulated from the Russia-Ukraine war as neither country is a big producer, and supplies of the grain had remained relatively steady during the Covid-related disruptions for other foodstuffs.

Now, however, top exporters Thailand and Vietnam sit on insufficient inventories to make up for India’s curb on exports and widespread output losses. Global rice inventories could fall to their lowest in at least five years in 2023, three global traders said, citing internal assessments.

“Since India cornered 40pc of the global trade, it’s not easy for others to replace falling Indian shipments when demand is rising from leading importers,” Gupta said.

The US Agriculture Department (USDA) has cut its global rice production estimate for 2022-23 to 508 million tonnes, the lowest in four years. Just a month ago, the agency was expecting output for the year at 512 million tonnes.

Some top global trading houses, though, expect a sharper fall to around 500 million tonnes because of the extreme weather conditions that threaten crop yields in countries such as China, India, Bangladesh and Pakistan.

In India, dry weather conditions delayed the sowing of rice, with many farmers not planting the crop at all, and then torrential rains damaged ripening paddy fields, raising concerns about food inflation.

India’s summer-sown rice output is likely to fall to 105 million tonnes in 2022-23, down 6pc, the farm ministry said in September, and private traders estimate it could fall as low as 100 million tonnes.

Published in Dawn, October 23th, 2022

India’s recent curbs on rice exports provides Pakistan with opening

“The quality of our super basmati rice is far superior in aroma, taste and length compared to Indian basmati rice. We have an edge,” says UNISAME President, Zulfikar Thaver. photo: file

KARACHI:

Climate disaster, in the South Asian agro-based economies of India and Pakistan, has started to disturb the international rice market dynamics that have remained stable for decades.

On one hand, Pakistani basmati prices are feared to decrease on account of the depreciating Indian rupee against the dollar. On the other hand, India’s recent curbs on rice exports could provide an opportunity to Pakistani exporters to cash in on the lowered supply from their neighbouring competitor country.

Rice Market Expert, Hamid Malik believes, “Pakistani basmati is facing strong tail and headwinds this October.”

“The Pakistani Basmati Paddy 1509 is experiencing strong headwinds due to the rapidly depreciating Indian rupee, which has lost almost 7% value in just 30 days against the US dollar, going from INR79.8 to 83.04,” he explained.

“In the last week of September, Basmati 1509 started with a price above Rs4,000 per 40 kilograms. In two weeks, prices came down to Rs3,200 for a short period but then started going up and the same is now being traded at Rs3,525-Rs3,700,” he explained.

Meanwhile, he noted, “Indian basmati 1509 prices also started on a high note at INR3,800-INR3,900 per quintal but came down to INR2,900 to INR3,000 – $380 per tonne as compared to the Pakistan 1509 Paddy at $366 per tonne – $14 per tonne less than the Indian basmati.”

“Now, in India, the price of 1509 has inched up a little since last week to $397 per tonne while the price of the Pakistani 1509 stands at Rs 3,550 per 40 kilograms, which is between $403-412 per tonne,” he added.

Union of Small and Medium Enterprises (UNISAME) President, Zulfikar Thaver emphasised that “the quality of our super basmati rice is far superior to Indian basmati rice. Pakistani basmati has more aroma and a better taste and length, which is a natural blessing. Because of this, we have an edge and even our 1121 has aroma which the Indian 1121 lacks.”

“We are in a position to overcome the Indian rupee depreciation because even our rupee has depreciated and our exporters are getting more rupees to a dollar. Even before the depreciation of the rupee, we were getting a better price as compared to India in the international markets. Nevertheless, our exporters and TDAP must make serious efforts for more penetration in the global markets and we need to improve our strategies, including our packing,” Thaver said.

Commenting on potential roadblocks, Malik said, “Pakistan miller’s dilemma is that the 1509 crop looks shorter than expected even though our per acre production is 10-12% higher than last year. And supplies of 1509 from growers are drying up but will be available from stock or commission agents.”

Pakistan Businesses Forum (PBF) Vice President, Ahmad Jawad argued, “On the flip side, the Indian curb can trigger a rally in global prices after more than a decade of stability as New Delhi’s protectionist move coincides with falling output in other major producers and rising global demand.”

“Uneven monsoon rains hit rice plantings in India, prompting the export restrictions in September, and floods have cut output in Pakistan even as consumption has grown in top importers such as Bangladesh and the Philippines. That’s why forecasters are saying global demand will outstrip production in 2022/23,”
he added.

“The US Department of Agriculture (USDA) has cut its global rice production estimate for 2022/23 to 508 million tonnes, the lowest in four years. Just a month ago, the USDA was expecting output for the year at 512 million tonnes,” noted Jawad.

The PBF VP, however, expects a sharper fall to around 500 million tonnes because of the extreme weather conditions threatening crop yields in countries like China, India, Bangladesh and Pakistan.

“In India, dry weather conditions delayed the sowing of rice, with many farmers not planting the crop at all, and then torrential rains damaged ripening paddy fields, raising concerns about food inflation,” he explained.

“Pakistan produces around 8.9 million tonnes of rice annually, whereas only four million tonnes are consumed in the country, leaving the rest for export. Therefore, India’s ban offers a lucrative opportunity for Pakistan to expand its rice exports and fetch better prices,” he encouraged.

Given the recent floods in Pakistan, Jawad said, “The floods washed away millions of acres of standing rice crops in Sindh and Punjab, with total crop losses estimated at around 2.2 million tonnes, most of which are non-Basmati (coarse) varieties.”

“Pakistan could opt for a cautious policy allowing the unabated export of Basmati rice, hoping to meet 750,000 tonnes of export, but restrict the export of non-basmati (coarse) rice at two million tonnes,” suggested the PBF VP.

Published in The Express Tribune, October 23^rd, 2022.

Prime Minister Hun Sen addresses flood victims during his visit in Banteay Meanchey province on October 23. SPM

Prime Minister Hun Sen on October 23 delivered more than 500 tonnes of rice seeds to more than 5,000 households affected by floods in Banteay Meanchey province, and asked agriculture specialists to provide technical instruction to farmers, to ensure that their harvests are as successful as possible.

This is the latest batch of the thousands of tonnes of rice seeds recently distributed by the government to farmers affected by flooding.

Speaking at the handover ceremony in Banteay Meanchey, Hun Sen noted that Tina had inspected afflicted fields himself in several provinces and had also distributed rice seeds to farmers.

He said Tina had informed him that the rice seeds given to farmers had grown well, but he had discovered that some fields had been sown with too many seeds, which was an indicator that farmers would benefit from instruction by experts.

“Some rice fields are just 1ha, which means they need just 50kg of seed. Some farmers had used up to 100kg, which is far too many. This is one part of the issue. Another aspect is the inefficient use of fertiliser.

“I hope the new agriculture minister will use this opportunity to conduct research and send technical consultants out into the field to work with our farmers. They should be able to make more efficient use of seeds and fertiliser. This way, their incomes should grow,” he said.

As of October 22, he said the government had distributed a total of 7,000 tonnes of rice seeds. They had been reserved for farmers in case of natural disasters and paid for with the national budget.

“I’m sure people are aware that the government is always prepared to assist with financial intervention in cases of flood or drought,” he said.

Hun Sen added that he had reserved 100 tonnes of milled rice and $100,000 to distribute to other affected areas.

Banteay Meanchey provincial governor Um Reatrey said that in the month from September 20 to October 20, eight district-level localities had been affected: Sisophon and Poipet towns, and Mongkol Borei, Phnom Srok, Preah Netr Preah, O’Chrov, Thma Puok and Malai districts.

He noted that more than 10,000 households had been affected, with 30,000ha of rice and 20,000ha of other crops inundated. The flooding killed four people and nearly 3,000 head of cattle.

Ngin Chhay, head of the agriculture ministry’s General Directorate of Agriculture, met with farmers to assess their productivity. He said his evaluation of farmers’ expenses will lead to a reduction in unnecessary expenditure, which should improve their profit margins. He also shared some of his expertise on the use of fertilisers and pesticide.

MUMBAI/NEW DELHI: India’s recent curbs on rice exports could trigger a rally in global prices after more than a decade of stability, traders said, as New Delhi’s protectionist move coincides with falling output in other major producers and rising global demand.

Uneven monsoon rains hit rice planting in India, prompting the export restrictions in September, and floods have cut output in Pakistan even as consumption has grown in top importers such as Bangladesh and the Philippines.

That’s why forecasters are saying global demand will outstrip production in 2022/23.

This is bad for Asian and African countries that use rice as a staple, some of which import as much as 60% of their supply.

Since India - the world’s biggest rice exporter - banned exports of broken rice and slapped a 20% export tax on some non-basmati varieties, global rice prices have jumped more than 10%.

Last month, the Food and Agriculture Organization’s global rice price index rose 2.2% to hit an 18-month high.

“The international market has gone up and it will go up further,” said Nitin Gupta, vice president for Olam India’s rice business.

Governments worldwide had already been struggling to tame food inflation because of COVID-19 disruptions to production and supply chains, and then Russia’s invasion of Ukraine removed millions of tonnes of foodstuffs from global markets, pushing inflation to a record earlier this year.

Still, before India implemented its export curbs a few months ago, industry and government officials in Asia were saying rice prices would hold steady due to ample stocks.

Rice, unlike wheat, was insulated from the Russia-Ukraine war as neither country is a big producer, and supplies of the grain had remained relatively steady during the COVID-related disruptions for other foodstuffs.

Now, however, top exporters Thailand and Vietnam sit on insufficient inventories to make up for India’s curb on exports and widespread output losses.

Global rice inventories could fall to their lowest in at least five years in 2023, three global traders said, citing internal assessments. “Since India cornered 40% of the global trade, it’s not easy for others to replace falling Indian shipments when demand is rising from leading importers,” Gupta said.

Output forecasts lowered

The US Agriculture Department (USDA) has cut its global rice production estimate for 2022/23 to 508 million tonnes, the lowest in four years. Just a month ago, the agency was expecting output for the year at 512 million tonnes.

Some top global trading houses, though, expect a sharper fall to around 500 million tonnes because of the extreme weather conditions that threaten crop yields in countries such as China, India, Bangladesh and Pakistan.

In India, dry weather conditions delayed the sowing of rice, with many farmers not planting the crop at all, and then torrential rains damaged ripening paddy fields, raising concerns about food inflation.

India’s summer-sown rice output is likely to fall to 105 million tonnes in 2022/23, down 6%, the farm ministry said in September, and private traders estimate it could fall as low as 100 million tonnes.

Rice output in China, biggest consumer of the grain, could drop 2.9% from a year ago to 206 million tonnes due to higher temperatures and drought in some rice-growing regions, according Shanghai JC Intelligence Co Ltd, a consultancy.

This is a big change from last year, when India’s record 21.2 million tonnes of rice exports - 30% cheaper than rival suppliers - helped cap global prices while other food commodities soared due to supply disruptions. After the September curb, India’s rice exports are set to fall by around a quarter this year.

Falling down in asia

Almost all top producers are beset with lower rice output, and global demand will likely outstrip supply, said B.V. Krishna Rao, president of India’s Rice Exporters Association.

India’s export restrictions have helped rival suppliers Vietnam, Thailand and Myanmar increase their sales, but they have limited surplus stocks for exports, Rao said.

Vietnam’s unmilled rice output is forecast to hold flat to last year’s 43 million tonnes, according to government data.

Neighbouring Thailand is aiming to export 7.5 million tonnes this year, up about 7% from its previous target of 7 million tonnes, said Anucha Burapachaisri, a government spokesman.

Together the two can add no more than an extra 2 million tonnes of rice to fill the void left by India, traders said.

Meanwhile, Pakistan cannot capitalise on India’s export curbs after severe flooding ravaged its crop.

Its rice output could fall 18% to 7.4 million tonnes, according to the USDA.

Other Asian producers such as China, Bangladesh and the Philippines were, like India, hit by unfavourable weather conditions, including drought, flooding, typhoons and cyclones.

“The exceptional confluence of events in Asia will badly hit consumers in many parts of the world and many poor consumers will have to either buy far more expensive, superior grades or go without rice,” said Himanshu Agarwal, executive director at Satyam Balajee, India’s biggest rice exporter.

“The choice will be difficult.”

MUMBAI/NEW DELHI, Oct 21 (Reuters) - India's recent curbs on rice exports could trigger a rally in global prices after more than a decade of stability, traders said, as New Delhi's protectionist move coincides with falling output in other major producers and rising global demand.

Uneven monsoon rains hit rice planting in India, prompting the export restrictions in September, and floods have cut output in Pakistan even as consumption has grown in top importers such as Bangladesh and the Philippines. That's why forecasters are saying global demand will outstrip production in 2022/23.

This is bad for Asian and African countries that use rice as a staple, some of which import as much as 60% of their supply.

Since India - the world's biggest rice exporter - banned exports of broken rice and slapped a 20% export tax on some non-basmati varieties, global rice prices have jumped more than 10%. Last month, the Food and Agriculture Organization's global rice price index rose 2.2% to hit an 18-month high.

"The international market has gone up and it will go up further," said Nitin Gupta, vice president for Olam India's rice business.

Governments worldwide had already been struggling to tame food inflation because of COVID-19 disruptions to production and supply chains, and then Russia's invasion of Ukraine removed millions of tonnes of foodstuffs from global markets, pushing inflation to a record earlier this year.

Still, before India implemented its export curbs a few months ago, industry and government officials in Asia were saying rice prices would hold steady due to ample stocks.

Rice, unlike wheat, was insulated from the Russia-Ukraine war as neither country is a big producer, and supplies of the grain had remained relatively steady during the COVID-related disruptions for other foodstuffs.

Now, however, top exporters Thailand and Vietnam sit on insufficient inventories to make up for India's curb on exports and widespread output losses. Global rice inventories could fall to their lowest in at least five years in 2023, three global traders said, citing internal assessments.

"Since India cornered 40% of the global trade, it's not easy for others to replace falling Indian shipments when demand is rising from leading importers," Gupta said.

OUTPUT FORECASTS LOWERED

The U.S. Agriculture Department (USDA) has cut its global rice production estimate for 2022/23 to 508 million tonnes, the lowest in four years. Just a month ago, the agency was expecting output for the year at 512 million tonnes.

Some top global trading houses, though, expect a sharper fall to around 500 million tonnes because of the extreme weather conditions that threaten crop yields in countries such as China, India, Bangladesh and Pakistan.

In India, dry weather conditions delayed the sowing of rice, with many farmers not planting the crop at all, and then torrential rains damaged ripening paddy fields, raising concerns about food inflation.

India's summer-sown rice output is likely to fall to 105 million tonnes in 2022/23, down 6%, the farm ministry said in September, and private traders estimate it could fall as low as 100 million tonnes.

Rice output in China, biggest consumer of the grain, could drop 2.9% from a year ago to 206 million tonnes due to higher temperatures and drought in some rice-growing regions, according Shanghai JC Intelligence Co Ltd, a consultancy.

This is a big change from last year, when India's record 21.2 million tonnes of rice exports - 30% cheaper than rival suppliers - helped cap global prices while other food commodities soared due to supply disruptions.

After the September curb, India's rice exports are set to fall by around a quarter this year.

FALLING DOWN IN ASIA

Almost all top producers are beset with lower rice output, and global demand will likely outstrip supply, said B.V. Krishna Rao, president of India's Rice Exporters Association.

India's export restrictions have helped rival suppliers Vietnam, Thailand and Myanmar increase their sales, but they have limited surplus stocks for exports, Rao said.

Vietnam's unmilled rice output is forecast to hold flat to last year's 43 million tonnes, according to government data.

Neighbouring Thailand is aiming to export 7.5 million tonnes this year, up about 7% from its previous target of 7 million tonnes, said Anucha Burapachaisri, a government spokesman.

Together the two can add no more than an extra 2 million tonnes of rice to fill the void left by India, traders said.

Meanwhile, Pakistan cannot capitalise on India's export curbs after severe flooding ravaged its crop. Its rice output could fall 18% to 7.4 million tonnes, according to the USDA.

Other Asian producers such as China, Bangladesh and the Philippines were, like India, hit by unfavourable weather conditions, including drought, flooding, typhoons and cyclones.

"The exceptional confluence of events in Asia will badly hit consumers in many parts of the world and many poor consumers will have to either buy far more expensive, superior grades or go without rice," said Himanshu Agarwal, executive director at Satyam Balajee, India's biggest rice exporter.

"The choice will be difficult."

Reporting by Rajendra Jadhav and Mayank Bhardwaj; Additional reporting by Khanh Vu in Hanoi, Chayut Setboonsarng in Bangkok, Enrico Dela Cruz in Manila, and Dominique Patton in Beijing; Editing by Tom Hogue

* Exports of various food commodities recorded at $1,077.834mn during the period in 2022-23 as compared to the exports of $1,019.676mn during 2021-22

Food group exports from the country witnessed an increase of 5.70 percent during the first quarter of the current fiscal year (2022-23) as compared to the corresponding period of last year, Pakistan Bureau of Statistics (PBS) reported.

The exports of various food commodities were recorded at $1,077.834 million during July-September (2022-23) as compared to the exports of $1,019.676 million in July-September (2021-22), according to PBS data.

The food commodities that contribute in positive growth in trade included vegetables, the exports of which grew by 44.34 percent, from $50.082 million to $72.289 million.

The other food commodities that contributed in positive growth included fish and fish preparations, the exports of which increased by 40.20 percent, from $56.959 million to $79.855 million whereas the exports of tobacco rose by 74.66 percent, from $7.900 million to $13.798 million.

The exports of leguminous vegetables (pulses) increased by 100 percent, from zero exports to $0.047 million; meat and meat preparations by 21.68 percent, from $78.283 million to $95.254 million whereas the exports of all other food items increased by 26.75 percent, from $221.017 million to $280.136 million. The food commodities that contribute in negative growth in trade included rice, the exports of which decreased by 5.10 percent, from $423.192 million to $401.629 million.

Among the rice commodities, the exports of Basmati rice went down from $153.671 million to $129.896 million, a decrease of 15.47 percent whereas fruits exports decreased by 30.76 percent from $114.373 million to $79.196 million.

The exports of spices dipped by 18.74 percent, from $23.163 million to $18.823 million; oil seeds, nuts and kernals by 17.67 percent, from $44.707 million to $36.806 million.

Meanwhile, on year-on-year basis, the exports of food commodities witnessed nominal decrease of 1.26 percent during the month of September 2022 as compared to the same month of last year.

The food exports during September 2022 were recorded at $354.816 million against the exports of $359.331 million.

On month-on-month basis, the exports of food commodities also decreased by 3.31 percent in September 2022 when compared to the exports of $366.945 million in August 2022, PBS reported.

The country is struggling to wean itself off subsidies that encourage overuse

India’s “green revolution” in the 1960s was hailed globally for combining policy and scientific advances in agriculture — bringing food security to the newly independent country. A surge in yields and production of staple crops, such as rice and wheat, helped prevent the famines that had blighted the country under British colonial rule. But the intensification of Indian farming in the decades since has spawned a series of challenges of its own, from chemical pollution to price distortion. One of the greatest of all is unsustainable water use. India, with a population of 1.4bn, is among the most water-stressed countries in the world. A report from the government’s NITI Aayog think-tank in 2019 estimated that 600mn Indians faced “high to extreme water stress”, and warned that 21 big cities — including the capital New Delhi — would run out of groundwater in a matter of years. With about half the workforce employed in agriculture, this poses a huge challenge, not just to farmers but also to the economy as a whole. Indian authorities are aware of the challenge. Prime minister Narendra Modi has repeatedly called on citizens “to save every drop of water” that they can. “We should use water sparingly, like a sacred offering,” he said in an address released on World Water Day in March this year. However, the magnitude of the task has stumped policymakers, economists and environmentalists alike. India’s farmers, despite their vulnerability to water stress, often depend on a series of incentives and subsidies that encourage them to grow water-intensive crops, like rice. For example, many receive free electricity that allows them to pump water from the ground, which depletes groundwater levels. These farmers also depend on the annual monsoon — the rainy season that sweeps across the subcontinent between June and September. Yet climate change has made these rains more volatile, triggering unpredictable combinations of intense flooding and droughts. Historic flooding in Pakistan this year, for example, devastated crops in the south of the country, while farmers in already dry regions face intensifying water stress. “India is short of water and has a highly water insecure future,” says Karan Manral, a farmer and writer on agriculture. “What we’re seeing already is a form of climate chaos. What are the monsoon or water patterns going to be? I’m not sure I’ve read anything that has a clue about how the climate lottery is going to work out for any place.”

Amid this backdrop, authorities, non-governmental organisations and the private sector are all scrambling for solutions. At one end of the spectrum, venture capitalists and investors have poured money into start-ups that promote technological solutions, such as hydroponics — a highly water-efficient method of growing plants without soil. But many dismiss such approaches as too expensive for mass use. “It may be great in a very urban place, in New York City, where land is so expensive,” Manral says. “But, if you say it’s going to save the future of farming, you completely lose me there . . . The cost is many light years away from what a farmer in India is capable of doing.” Other approaches include incentivising farmers to plant less water-intensive crops, such as millet — a cereal traditionally grown in India — rather than rice. In 2020, for example, the government in the northwestern agricultural state of Haryana launched a scheme offering farmers Rs7,000 ($85) for every acre on which they grow something other than rice. These initiatives have had limited success, though. Avinash Kishore, a researcher at the International Food Policy Research Institute in New Delhi, argues that the vast differences in potential yield mean it is often more lucrative to grow rice than alternatives — even with the extra money. Rice growers also enjoy government-mandated minimum prices that remove much of their financial risk, which is not the case with many alternative crops. Defenders of such arrangements point out that encouraging production of staples like rice and wheat protects food security by creating strategic surpluses to distribute at times of need, such as during the Covid-19 lockdowns. These challenges suggest that initiatives to improve water use in farming must be part of a broader reform of the agricultural system. But the political peril in implementing this has left authorities reluctant to try. Modi, for example, attempted in 2020 to overhaul the country’s farm laws and open up a government-controlled system to greater private participation. However, this controversial move — pushed through with minimal consultation — sparked such broad and unrelenting protests that he was ultimately forced into a humiliating U-turn, scrapping the reforms. Kishore says that the government “seems to have given up” on trying to reorganise the system of subsidies that ultimately push farmers to grow water-intensive crops. But he believes that at least one project has had some success in achieving the scale that could break the deadlock. PM Kusum, a government initiative launched in 2019, distributes solar panels to farmers to promote clean energy. Instead of encouraging farmers to pump even more groundwater, authorities buy back excess power as part of the scheme, creating a financial incentive for farmers to limit their own electricity — and therefore water — use. “This may be the largest government programme to save water,” Kishore says.

NEW DELHI, INDIA — India’s rice exports in marketing year 2022-23 are forecast to decline to 17 million tonnes, down from last year’s record shipments of 21.5 million tonnes, according to a Global Agricultural Information Network report from the US Department of Agriculture’s Foreign Agricultural Service (FAS).

The Indian government on Sept. 8 banned exports of broken rice and imposed an export duty of 20% on rice in husk and semi- or wholly milled rice other than parboiled and basmati. Based on the latest official statistics, 2021-22 ending stocks have been lowered to 35 million tonnes, with 2022-23 ending stocks projected to drop to 32 million tonnes.

“The government reported that the export control measures were announced to contain rising domestic rice prices resulting from lower rice plantings and production prospects for the upcoming 2022-23 kharif rice crop,” the FAS report said.

Earlier this week, the Indian government said the country’s stocks of rice and wheat are sufficient, and wheat could be sold by the government to help control domestic prices, if necessary.

India is the world’s second largest rice producer, behind China, and is the leading exporter most years.

MANILA - Farmers continue to struggle as rice only sells from producers at 13.50 pesos per kilo.

"Bagsak presyo po talaga, sobrang baba ng presyo ng palay. 'Yung galing direct from harvester, P13.50 (a kilo) lang, sobrang baba. Sobrang kawawa ng farmer," Manel Palpita, a farmer from Occidental Mindoro told Teleradyo on Tuesday.

(Prices are extremely low. Direct from harvester rice sels for only 13.50 pesos per kilo.)

Farmers could opt to sell their crops for a higher price at the National Food Authority (NFA), but its strict standards for moisture content prevents them from doing so, especially during the monsoon season when it is more difficult to dry rice grains.

"'Pag sa NFA ka magbebenta, although 19 pesos [sa kanila], ang taas ng hinihingi nilang tuyo, eh tag-ulan ngayon. Nire-reject nila, kawawa ang magsasaka," Palpita said. 

(NFA buys rice at 19 pesos per kilo, but they require the grain to be very dry. They reject what farmers are able to sell them.)

Palpita, who harvests rice from the towns of Rizal and San Jose, said rice grain left to dry on roads have to be covered with tarpaulins when rain comes. 

She explains that more days spent drying grains will cost farmers more to pay for farmhands who tend to the drying rice grains. This will only offset the profit they might make from selling at a higher price to NFA. 

"'Pag nagpabilad ka 20 pesos ang bayad sa nagbibilad. Sayang 'yun, halos 'yun din ang kikitain mo sa San Jose, kaysa NFA, ibibiyahe mo pa 'yun sa bayan, sampung piso ulit," Palpita explained. 

(You have to pay the people tending to the drying grains 20 pesos. That's almost the same as what would have been your profit. Transportation also costs another 10 pesos.)

Palpita called for the NFA to ease on their standards for dried rice grain. 

"Ang problema namin sa NFA, andoon lang sila sa opisina nila, hindi sila pumupunta sa mga magasaka. Sana kung makita nila napakaraming palay ng Mindoro, magaganda pa, kaya lang hindi namin maibenta," Palpita said.

(The NFA does not visit us farmers, they stay in their offices, so they don't see the quality rice grain we are able to produce in the fields.)

She also hoped that the Department of Agriculture might put budget toward lowering the prices of fertilizer, which put farmers at a deficit. 

"May subsidy naman ang DA, pero P5,000, sana ilagay na lang nila sa presyo ng fertilizer, yan ang gusto ng magsasaka, para bumaba. Ang cash kasi naco-corrupt, may iba hindi naman nakakatanggap [ng subsidy]," Palipita said. 

(Subsidies can be put towards lowering fertilizer prices. That would work better for farmers, because subsidies can be corrupted and end up in the wrong pockets.)

Expected to hinder output for the season

Floods ravaging vast plots of farmland in many areas nationwide are likely to delay by two weeks harvesting of the main crop of the country's 2022-23 season, limiting output for the season which

usually gets underway in early November.

According to Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, floods resulting from Typhoon Noru in late September and heavy rains during the early part of this month

may reduce the country's main rice crop, but it is too early to estimate the value of damage because flooding continues in many parts of the country.

"Rice plots in the hills may be not affected much, but the lowlands face a definite impact because they are still inundated. We'll have to wait until the harvest to see how many grains have broken,"

he said. Mr Chookiat said many importers have inquired about the flooding situation, as they are afraid of rising rice prices if Thai production sees a lot of damage.

Rice production for the country's 2022-23 crop was originally estimated at 26.9 million tonnes of paddy rice, up 2.09% from the previous season. Kasikorn Research Center estimates that flooding during

August and October may cause around 2.9-3.1 billion baht's worth of damage to rice in the country's main crop and possibly drive Thai rice prices to stay at relatively high rates during this period.

Mr Chookiat said if the floods continue, bringing about collateral damage to the country's overall rice production, a negative impact may arise for Thai exports in the year to come.

However, he insisted that the floods are unlikely to cause a significant impact on Thai rice exports this year.

"This year, Thailand's rice exports will definitely reach 7.5 million tonnes and can reach 8 million, too, due to the weak baht and India's export tax increase. More importantly, Thailand has enough

rice stockpile to export to the world market," said Mr Chookiat.

In September, India, the world's largest rice exporter, banned overseas sales of broken rice and levied a 20% duty on exports of various rice grades.

Mr Chookiat said Thailand's domestic rice prices are considered to be good and will remain at a relatively high level this year driven by strong export demand and baht weakness which raise the country's

competitiveness in terms of rice exports.

The price of domestic white paddy is now quoted at 9,500-10,000 baht per tonne, while the price of Thai hom mali paddy stands at 14,500-15,000 baht per tonne.

The free-on-board price of Thai white rice 5% is now quoted at US$439 per tonne, while Vietnam's white rice stands at $428-432 per tonne.

"We expect Vietnam can ship a maximum of 7 million tonnes because the country needs enough to feed its population of 100 million, while Thailand has enough rice for exports of 8-9 million tonnes a year,"

he said.

In the first nine months, Thailand's rice export volumes stood at 5.6 million tonnes, up 44% from the same period of last year. Despite heavy rains in the country, Thai rice exports could reach over 800,000

tonnes in September.

INDONESIA'S 2022 UNHUSKED RICE OUTPUT SEEN UP 2.31% Y/Y - STATS BUREAU

JAKARTA, Oct 17 (Reuters) -

* Indonesia's statistic bureau estimated 2022 unhusked rice production at 55.67 million tonnes, up 2.31% from last year's 54.42 million tonnes.

* Production in January-September was down 0.19% annually at 45.43 million tonnes, but output is expected to improve in the October-December period, Setianto, a Statistics Indonesia official, told reporters.

* Unhusked rice output in October-December is estimated at 10.24 million tonnes, but actual production would depend on weather conditions, he added. (Reporting by Fransiska Nangoy, Stefanno Sulaiman; Editing by Martin Petty)

© Copyright Thomson Reuters 2022

Expressing displeasure over the matter, the beneficiaries have alleged that though there is a provision to provide millet and rice separately, at Masedikia village, the grains are mixed and supplied to them.

The residents of Raikia panchayat in Kandhamal district have alleged that they have been supplied with poor quality and adulterated rice under the Public Distribution System (PDS) scheme.

Expressing displeasure over the matter, the beneficiaries have alleged that though there is a provision to provide millet and rice separately, at Masedikia village, the grains are mixed and supplied to them.

Earlier, five kg of rice was supplied to each beneficiary. But since last month, the government has decided to provide 5 kg rice and millet. But the dealer is mixing the grains and providing the beneficiaries, complained the villagers.

“I brought the rice and millet mix yesterday. It is becoming very difficult to separate the grains. When we questioned about mixing of both the items, the dealer said he has received mixture,” said Uttam Digal, a beneficiary.

Expressing resentment Pranita Digal, another beneficiary said, “I asked the dealer to provide me a separate packet for rice and millet, but in vain.”

Commenting on the development Sradhanjali Digal, supply assistant of Raikia panchayat said, “We are supplying what we are getting. The allegation of rice adulteration is baseless.”

Goyal says the State wants to stop Centre’s schemes from reaching people since it is scared that the people of Tamil Nadu will start liking Modi; Sakkarapani says the Union Minister did not visit the public distribution system outlets 

Union Minister for Food and Public Distribution Piyush Goyal on Sunday accused the Tamil Nadu government of distributing sub-standard quality of rice to the poor in the State.

Rejecting his charge, State Food Minister R. Sakkarapani countered that such allegations were being levelled since Tamil Nadu was opposing many of the BJP-led Union government’s policies.

Addressing a BJP-organised function in Chennai to propagate benefits of the Union government’s schemes, Mr Goyal said: “I have just been told that even though the Central government procures and sends good quality of rice to Tamil Nadu, the State government is distributing poor quality of rice [through the public distribution system].” He claimed that though the Centre was implementing many schemes, the State wanted to stop them from reaching the people since it was scared that the people of Tamil Nadu would start liking Mr. Modi. “They are so scared that they will not even allow the Prime Minister’s image in any of the schemes,” he claimed.

According to him, Mr. Modi personally wanted to see a prosperous, developed and corruption-free Tamil Nadu, but one could not expect this from the ruling dispensation. He accused Ministers in Tamil Nadu of criticising the Prime Minister using “foul language”.

Within hours of Mr. Goyal’s speech, Mr. Sakkarapani told journalists that the Union Minister was making politically driven comments. Referring to the BJP State president K. Annamalai’s statement that 50 more Central Ministers were expected to visit the State in the coming months, Mr. Sakkarapani claimed: “The Parliamentary elections are coming. They want to do politics with this.”

The Food Minister pointed out Mr. Goyal had not visited the PDS outlets. “The PDS shops are closed on Sunday. He did not go anywhere to visit. He is believing in his party workers. They are blaming the government. They are making him speak like this. It is quite regrettable,” Mr. Sakkarapani said.

Mr. Sakkarapani recalled that Mr. Goyal, his deputy in the Cabinet Ashwini Kumar Choubey and Union Food Secretary Sudhanshu Pandey had, over the past few months, commended the PDS in Tamil Nadu on separate occasions.

“During his visit to Coimbatore in June, Mr. Goyal had even invited Tamil Nadu to make a presentation of an exclusive design for ration shops it had made, and such a presentation was done during a meeting of all Food Ministers and senior officials in Delhi on July 5,” he recalled.

During Mr. Choubey’s visit to Chennai on September 27 and Mr. Pandey’s visits to Madurai, Thanjavur and Ramanathapuram districts in the first week of October, they had commended the PDS in the State, Mr. Sakkarapani pointed out.

He also wondered why Mr. Goyal could not [have waited to] enquire about it with the officials during a meeting, which he was set to chair on Sunday evening. Officials from the Food Corporation of India (FCI) inspected the quality of rice, the Minister said. As for the claim that rice was being changed, Mr. Sakkarapani questioned: “How can it be changed? FCI is controlling everything.”

Some schemes were being implemented jointly by the State and Centre. “During the past 10 years [of AIADMK government 2011-21], they did not say anything like that. Only after the DMK came to power [such claims are being made]. We are opposing many of their principles. They are making such claims only because of that,” he charged.

MUMBAI/KHANH/ HANOI/BANGKOK: Thailand rice export prices slipped to a more than two-month low this week due to a weaker baht and softer demand, while rates in Vietnam held steady near multi-month highs on supply concerns.

Thailand’s 5% broken rice prices were quoted at $410 to $420 per tonne on Thursday, down from $415 to $425 per tonne a week ago, with traders attributing the drop to muted demand in overseas and domestic markets.

The Thai baht was trading near its lowest since 2006 against the dollar, bogged down by persistent concerns over global growth and fears of a recession.

Vietnam’s 5% broken rice was unchanged at $425 to $430 per tonne - the highest since Nov. 2021. “Domestic supplies are running low, and we expect prices may edge slightly higher over the next weeks,” a trader based in the Mekong Delta province of An Giang said.

Preliminary shipping data showed 265,250 tonnes of rice is to be loaded at Ho Chi Minh City port in the Oct. 1-22 period, with most of the rice heading to the Philippines, Africa and Bangladesh. Top exporter India’s 5% broken parboiled variety was quoted at $374 to $382 per tonne, unchanged from last week amid concerns over production due to heavy rainfall. “Production number is likely to be revised down further. The rainfall has badly affected crop in northern and southern states,” said an exporter based at Kakinada in the southern state of Andhra Pradesh.

Heavy rainfall in India has damaged rice just before harvesting in key producing states such as Uttar Pradesh, West Bengal and Andhra Pradesh.

India will allow overseas broken rice shipments of 397,267 tonnes backed by letters of credit (LCs) issued before Sept. 8.

An estimated 670 million people are projected to be undernourished in 2030, as noted in FAO’s The State of Food Security and Nutrition in the World 2022 report. Conflict, COVID-19, climate extremes and economic shocks are listed as the key factors contributing to food insecurity and malnutrition.

Against this backdrop, what are international scientists doing? On the occasion of World Food Day, Dr. Liu Huan, the Chief Scientist of BGI Research Agriculture and Head of BGI Bioverse, notes it is crucial to enhance yields of key crops such as rice. Dr. Liu makes three key points:

• – Compared to cultivated rice, perennial rice can reduce production costs by over 50%
• – Perennial rice incorporates African wild rice genes, which enhances its stress tolerance
• – The reach for perennial rice planting includes 18 countries such as Uganda and Ethiopia

Do you know that wild rice species – similar to ginger – develop rhizomes, modified stems that grow underground horizontally, as a means of vegetative reproduction? However, cultivated rice do not possess rhizomes. This means cultivated rice must be planted on a per-season basis. Whereas perennial rice can be harvested over many years since it incorporates wild rice genes and its rhizomes for reproduction.

Perennial rice: In search of a greener and more efficient crop

So what does this mean for farmers? Keep in mind that traditional rice cultivation consists of six processes: buy seeds, raise seedlings, ploughing, transplanting, field management and harvesting. With perennial rice, the farmers skip the first four stages and concentrate their efforts on field management and harvesting.

Compared to cultivated rice, perennial rice can reduce production input costs by more than 50%. Farmers are potentially looking at US$11.40 – 13.70 savings per acre based on labor costs in Yunnan, China. If farmers plant two crops in one year, the estimated cost savings is US$22.80 – 27.30 per acre. China has 65.9 million acres of land dedicated to rice farming. Therefore, the theoretical social and economic value of these savings is estimated at US$1.5 billion.

Growing perennial rice not only greatly reduces production costs, but also eliminates the need to plough the field for many years, reducing labor, fertilizer and pesticide inputs and enhancing the natural properties of the soil. This can greatly alleviate labor shortage faced by farmers, while as well as bringing associated ecological and environmental benefits.

Perennial rice also has the advantage of high yield and quality. In terms of yield, in Yunnan, the yield reaches 164 kilograms, compared to China’s average of 75 kilograms per acre. Dr. Liu believes that more varieties can be cultivated,including more disease-resistant varieties, and developing high-yielding and high-quality varieties that are adapted to different climates. There are all future areas of research for BGI’s team.

Dr. Liu commented, “China produces a quarter of the world’s grain with less than 10 percent of its arable land. When we consider the potential savings, enhanced yield as well as environmental benefits, perennial rice can be truly revolutionary for farmers.” Not only has perennial rice been selected as one of the FAO’s 2018 International Agricultural Technology Innovations, it is also one of the 29 rice varieties promoted by China’s Ministry of Agriculture and Rural Affairs for 2022.

Perennial rice has relatively wide regional adaptability. Perennial rice has been planted at 117 locations within China, covering 13 major rice-growing provinces while covering 17 countries internationally, including Uganda, Ethiopia, Laos, Myanmar and Bangladesh, showing its potential for development across various climates.

Perennial rice’s African “father” gene

Generally speaking, higher rice yields require intensive cultivation, field management and favorable weather conditions. What if such conditions are not available? BGI’s perennial rice is well-placed to overcome this challenge as it incorporates Oryza longistaminata wild rice genes from Africa, which enhances stress tolerance.

The Academy of Agricultural Sciences in Uganda have collaborated with BGI to conduct research trials. With less intensive field management, perennial rice still managed to achieve a single-season yield of nearly 82 kilograms per acre.

Perennial rice can produce high yields with less intensive field management. This indicates perennial rice has the adaptability to be scaled up in Africa. Rice is the second most important source of calories in Africa with demand growing at more than six percent per year. Further adoption of perennial rice is potentially of great importance to the food supply of African countries.

Dr. Liu notes that BGI is ready to share technology and to nurture a team of modern technological agricultural talent in Africa. Working with local partners, BGI can develop perennial rice varieties that are more suitable for African cultivation, to further raise farmers’ incomes.

How can multi-omics sequencing technologies help meet climatic challenges?

Apart from its work on existing staple food crops, BGI is an active member of the African Orphan Crops Consortium (AOCC). These local orphan crops which have been neglected by the global scientific community, have special adaptability to grow in these environments. The robustness of orphan crops also helps farmers to increase their yields and incomes as global temperatures rise.

The AOCC, in partnership with World Agroforestry (CIFOR-ICRAF), targets to open access the genomic data from some of Africa’s most important food and tree crops to improve their nutrition, productivity and climatic adaptability.

Dr. Liu shared that, “We work in partnership at the AOCC. For example, UC Davis takes the lead to train Africa’s plant breeders, empowering them to apply their knowledge to their traditional crops and communities. BGI sequences these orphan crops to identify genes that have potential to impart tolerance to high temperatures, drought, and high salinity while providing excellent nutrition. So far, we have sequenced over ten orphan crops, such as African eggplant, breadfruit, jackfruit and the moringa.”

On Sept 8, India banned exports of broken rice in effort to augment supplies

MUMBAI:

India will allow overseas broken rice shipments of 397,267 tonnes backed by letters of credit (LCs) issued before September 8, the government said in a notification on Wednesday, as a sudden ban on exports of the grain prevented the loading of cargoes.

On September 8, India banned exports of broken rice as the world’s biggest exporter of the grain tries to augment supplies after below-average monsoon rainfall curtailed planting.

The surprise move trapped nearly 1 million tonnes of rice that was moved to the ports or was in transit before the government made the announcement. 

Published in The Express Tribune, October 14^th, 2022.

Officials suspect grains meant for PDS could be delivered as custom milled rice

Parveen Arora

Karnal, October 13

With the unearthing of an alleged paddy procurement scam in four rice mills and the seizure of 1,424 bags of rice reportedly brought from Bihar in a rice mill in Jundla, the district administration has intensified the vigil at the Haryana-UP border.

During a raid by the Chief Minister (CM) flying squad, around 80,000 quintals of paddy, worth nearly Rs 16 crore, was found short at grain markets in Jundla.

The duty magistrates, along with the police force, have been deployed round-the-clock at two nakas — Manglora and Shergarh Tapu — on the border.

As per the officials, the step had been taken to check the arrival of the public distribution system (PDS) rice or paddy from other states in the district.

According to officials of the district administration, the PDS rice is recovered from rice mills every year, which is brought at a lower price from other states and used to adjust against the proxy procurement done with the help of fake gate passes.

The arrival of paddy and rice keeps the officials of the district administration on toes every year.

The officials suspect the rice meant for the PDS could be delivered as custom milled rice (CMR) to the state.

“We have deployed duty magistrates on the Haryana-UP border, along with police force, to check the arrival of paddy and PDS rice from other states in Karnal. Our officials are vigilant and keeping an eye on every vehicle,” said Anish Yadav, Deputy Commissioner.

As per sources, farmers from other states come to traders with samples of the PDS rice to finalise the deal.

An official said: “It is a challenging task for the authorities to keep a check on such people. There should be random physical verification of the mills at regular intervals to verify the allotment of paddy and availability of stock.”

The Tribune had highlighted the issue of ‘fake gate passes’ being issued in various grain markets of the district for proxy procurement. After the reports, a team of the CM flying squad inspected the Jundla grain market and three mills, and found discrepancies there.

The team found a shortfall of 66,834 quintals in paddy stock. Besides, a team of the Haryana State Agricultural Marketing Board (HSAMB) also conducted a physical verification at another mill and found 13,095 quintals of paddy short than the actual procurement made by the mill.

The Karnal police have already registered an FIR against four millers.

The Chief Administrator of the HSAMB, Sujan Singh, has suspended the secretary of the Jundla grain market, Pawan Chopra, in this regard. Besides, action has been recommended against erring officials of the grain market.

After the issue came to fore, the HSAMB has also increased vigil at the grain market. Eight teams of the HSAMB are on regular checking. “Our teams are inspecting various grain markets of the state to check proxy procurement and the issuance of fake gate passes,” the Chief Administrator said.

India will allow overseas broken rice shipments of 397,267 tonnes backed by letters of credit (LCs) issued before September 8

Edtech giant Byju’s is set to lay off nearly 2,500, or 5 per cent, of its employees as part of an “optimisation” plan. India will allow overseas broken rice shipments of 397,267 tonnes backed by letters of credit (LCs) issued before Sept. 8, the government said. Read more on these in our top headlines.

Byju's to lay off 2,500 staffers, targets profitability by March

Edtech giant Byju’s is set to lay off nearly 2,500, or 5 per cent, of its employees as part of an “optimisation” plan. The move by India’s most valuable start-up comes amid a funding winter and steep losses. “To avoid redundancies and duplication of roles, and by leveraging technology better, around 5 per cent of Byju’s 50,000-strong workforce is expected to be rationalised across product, content, media, and technology teams in a phased manner,” said the company in a statement. 

Centre allows exports of 397,267 tonnes broken rice backed by LoC

India will allow overseas broken rice shipments of 397,267 tonnes backed by letters of credit (LCs) issued before Sept. 8, the government said in a notification on Wednesday, as a sudden ban on exports of the grain prevented the loading of cargoes. On September 8, India banned exports of broken rice as the world's biggest exporter of the grain tries to augment supplies and calm local prices after below-average monsoon rainfall curtailed planting. 

Retailers likely to see strong revenue performance in July-Sept quarter

Retail companies are expected to see a strong topline performance in the second quarter of the ongoing financial year. Apparel companies are expected to see an uptick which started in the April-June quarter as all covid restrictions were lifted. “Cotton prices are still high which could see margins remain under pressure,” Edelweiss Securities said in its report. 

Run-up to Budget: Monetary threshold for GST offences may rise to Rs 25 cr

As part of its drive against decriminalisation, the Centre is contemplating raising the monetary threshold for initiating prosecution for cognisable and non-bailable offences related to the goods and services tax (GST) to Rs 25 crore and above. At present, if the amount of tax evaded or input tax credit wrongly availed of is Rs 5 crore or above, the prison term may be extended to five years. 

Global wealth set to contract by over 2% this year, says report

Global household wealth is on track for its first significant contraction since the great financial crisis of 2008, according to a report by Allianz. After three years of record gains in the value of household financial assets, 2022 is likely to result in a nominal drop of more than 2 per cent, researchers said in a global wealth report published Wednesday. They called this year a “turning point” for global wealth, amid scant signs that a meaningful reversal will follow. 

Digital rupee likely to bring down cost of cross-border payments

The introduction of a central bank digital currency (CBDC) in cross-border remittances is likely to bring down significantly the cost of transaction for customers. At present, customers have to pay a fee to the bank. This is a percentage or a fixed amount of money transferred. The fee is applicable to both inward and outward remittances. Last week, the Reserve Bank of India (RBI) had published a concept note on CBDC. The central bank is in the process of launching a pilot for its CBDC, christened eRe. 

The outlook for 2022/23 U.S. rice this month is for slightly increased supplies, unchanged domestic use, lower exports, and larger ending stocks. Supplies are raised slightly as the NASS October 12 Crop Production report increased the all rice yield 13 pounds to 7,599 pounds per acre.

The 2022/23 export forecast is lowered 2.0 million cwt to 75.0 million, all long-grain rice, as relatively higher U.S. prices contribute to a slow pace of sales this marketing year. If realized, this would be the lowest all rice export total since 1991/92.

Ending stocks are raised 2.3 million cwt to 33.2 million, which would still be down more than 16 percent from the prior year. The season-average farm price for all rice is unchanged at $19.40 per cwt.

The 2022/23 global rice outlook this month is for lower supplies, consumption, trade, and ending stocks. Supplies are lowered by 3.6 million tons to 689.3 million for 2022/23, primarily on decreases in production for India and Pakistan. India’s production is lowered 2.5 million tons to 124.0 mill