22nd June 2015 Daily Global Rice E-Newsletter by Riceplus Magazine

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June 22 ,2015

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Unisame urges Pakistani PSI companies to offer matching


services like multinationals
The Union of Small and Medium Enterprises ( UNISAME ) urged the Pakistani pre shipment
inspection (PSI ) companies to be prepared to increase their efficiency and level of service to serve the
SME sector in lieu of disbandment of Quality Review Committee (QRC ).President UNISAME Zulfikar
Thaver said with the decision to disband the QRC the Pakistani PSI companies will get an opportunity to
get the PSI job of the SME rice exporters and it is therefore very necessary that they gear up for prompt
and speedy inspection of rice and commodities and equip themselves with modern laboratories to carry
out PSI with high level of inspection according to international standards.
Thaver said there are multinational companies carrying out PSI jobs but they are a little expensive and it
is therefore very necessary that Pakistani companies offer competitive rates for the job and match their
service and standard with the international companies.QRC was entrusted with the task of PSI for basmati
rice but became futile due to majority of shipments being of non basmati rice and the exporters have
developed their own brands of blended rice. QRC became an impediment and the exporters did not get a
free hand to export their own brands of rice prepared according to the buyers requirements.The majority
of rice exported is of 1121, 386 and rice skillfully blended with basmati rice under the brands of the
exporters or the buyers.
The rice industry is in deep turmoil due to lowered global demand and Iran not buying rice from Pakistan.
The prices fell to almost half of last year resulting in huge losses for the growers, millers and the
exporters and more than 1000 units have closed downThe exporters have now to look for new markets,
the growers need to modernize their farming to reduce cost and the millers need to improve their
standards then only we will be able to compete.

USA Rice Engages Local Help to Navigate Iraq


Iraqi ports of entry
ARLINGTON, VIRGINIA -- USA Rice has hired a consultant in Baghdad to represent the interests of the
U.S. rice industry before the Ministry of Trade and the Grain Board of Iraq that issues public tenders for
the purchase of rice on the international market. USA Rice has been engaged with U.S. Ambassador to
Iraq Stuart Jones, the Department of State, and the Foreign Agricultural staff in Washington to make the
case for U.S. rice to the Ministry. "The hiring of a local consultant who is a native speaker is the next
logical step in the process of establishing consistent lines of communication and assuring fair treatment of
U.S. offers on the current and future tenders," said Hartwig Schmidt, USA Rice regional director,

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3
international

market

development.

The consultant, Duraid Al Soufi, met with the Chief of Staff of the Iraqi Trade Minister yesterday and
has an appointment to meet the Minister this weekend. There is currently an active tender for purchasing
30,000 MT of rice which closes on June 28. Iraq usually tenders for a minimum of 30,000 MT, but more
often than not purchases significantly more than the minimum on each tender. Iraq imports nearly 1.5
million MT of rice annually. The U.S. is competitive with other rice exporters in the Western
Hemisphere, and if treated equitably should win a portion of the current tender.
Contact: Jim Guinn (703) 236-1474

Crop Progress: 2015 Crop 6 Percent Headed


WASHINGTON, DC -- Six percent of the nation's 2015 rice acreage is headed, according to
today's U.S. Department of Agriculture's Crop Progress Report.
3
Rice Headed, Selected States

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Week Ending

State

June 21,
2014

June 14,
2015

June 21,
2015

2010-2014
average

Percent
Arkansas

N/A

--

California

--

N/A

10

--

Louisiana

11

12

22

21

Mississippi

--

11

Missouri

--

N/A

--

--

Texas

13

Six States

N/A

Richmond company educating American consumers about


the benefits of rice
By Karina Ioffee kioffee@bayareanewsgroup.com PDT

Ken Lee, president and founder of Lotus Foods in


Richmond, Calif., shows a few of his rice samples on
Thursday, June 11, 2015. Lee's company trains farmers to
use System Rice Intensification method of rice-growing,
which reduces water use and doesn't require chemicals. Lee
has been honored by the Clinton Global Initiative for the
company's role in alleviating global poverty and hunger.
(Dan Rosenstrauch/Bay Area News Group) ( DAN
ROSENSTRAUCH )

RICHMOND -- When Ken Lee and Caryl Levine set out on a trip to China in 1993, they didn't
know what they were looking for.The United States was still emerging from a recession, while

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China's economy was taking off, and they wanted to capitalize on the opportunity.Inevitably,
part of the couple's travels took them to markets where they saw stalls laden with every
imaginable type of rice, especially black rice, which, according to legend, had been used to pay
tribute to emperors. With the foodie movement emerging in the U.S., they decided to take a
gamble on the ancient grain, importing it for sale at specialty stores and high-end restaurants.
Samples of different rices from Lotus Foods are
photographed in Richmond, Calif., on Thursday,
June 11, 2015. Ken Lee's company trains
farmers to use System Rice Intensification
method of rice-growing, which reduces water
use and doesn't require chemicals. Lee has been
honored by the Clinton Global Initiative for the
company's role in alleviating global poverty and
hunger. (Dan Rosenstrauch/Bay Area News
Group) ( DAN ROSENSTRAUCH )
But getting American consumers excited about specialty rice, previously unheard of by most,
was no easy matter. Lee and Levine set up a rice cooker for demos in Bay Area grocery stores
and sent product samples to top chefs such as Roland Passot, owner of La Folie and Left Bank
Brasseries, and Gary Danko.
"The idea was that if people would put it in their mouths and experience the difference in taste,
texture and aroma, we would begin converting people," Lee said on a recent day, sitting in his
Richmond office surrounded by bags of rice, many with smiling faces of farmers on them. "We
had to educate people one by one." Today, Lotus Foods products, which include organic and
heirloom rice from a half dozen countries, microwaveable rice bowls and ramen noodles, can be
found in many grocery stores, including Andronico's, Safeway, Whole Foods and Costco.
The company, which has nine employees, has been honored with a long trail of awards for its
unique line of rice, including the best-selling Forbidden Rice, a black rice that turns purplish
when cooked and is high in iron, protein and fiber.Other specialty varieties are jade pearl rice,
which is mixed with a bamboo leaf extract and has a light vanilla taste; Madagascar pink rice,
with hints of cinnamon, cloves and nutmeg; and Bhutan red rice, known for its nutty, earthy
flavor.In 2005, Lotus Foods was invited by the Cornell International Institute for Food,
Agriculture and Development to work with farmers using the system of rice intensification
method, or SRI, that uses 50 percent less water and 90 percent less seed than traditional rice
farming. The method also avoids the use of chemicals and pays farmers up to 30 percent more
for their product.
5

"It takes 600 pounds of water to grow a pound of rice, so on a planetary level, it takes almost 30
percent of the Earth's potable water to grow the rice crop," said Lee, 56, who grew up in Rhode
Island and sold insurance before finding his niche in the heirloom rice business. "By not flooding
the fields, we're helping cut down methane emissions and keeping farmers healthier."Olivia
Vent, a retired Cornell University employee who first approached Lotus Foods about importing

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SRI-farmed rice to the United States, said the company has been instrumental in educating
Americans about rice, not only about its varieties but health and environmental benefits.
"They've raised awareness that there's something out there besides Uncle Ben's white rice and
have played an incredibly important role in making sure farmers get organic certification and the
right kind of equipment to get their product to the U.S. market," Vent said.
Lotus Foods has also helped small-scale rice farmers with capacity building, helping them figure
out how to properly store, mill, package and prepare their product to meet U.S. Department of
Agriculture requirements.That earned the company recognition by the Clinton Global Initiative,
which in 2008 invited Lotus Foods to make a presentation about SRI's role in poverty alleviation.
The project seeks innovative solutions to long-standing problems such as malnutrition,
deforestation and lack of capital for small farmers.Dan Pargee first met Lee and Levine, who are
married, while a Peace Corps volunteer in Madagascar, where he was part of a group working to
help rice farmers increase their capacity to reach global markets.
"Their company has invested many years and many thousands of dollars to promoting technical
assistance, helping cooperatives find grant money and providing technical advisers," said Pargee,
who owns Lafaza, an Oakland company that imports Madagascar vanilla and other products to
the United States."Lotus Foods invested blood, sweat and tears into the supply chain and
provided a market opportunity to incentivize farmers to grow rice."
Today, the company is looking to expand its SRI efforts to India, Thailand, the Philippines and
Vietnam, and is continuing to work with manufacturers whose products use rice, such as Theo
chocolate and Luvo, an organic frozen food company. It will also soon unveil a new line of salty
snacks, expected to hit grocery stores later this year.It's a long way from when the company was
run out of Lee's home, spurred by the belief that sustainably farmed food can have a ripple effect
for both the producer and consumer."If you pay people more for their rice and you raise their
standard of living into the middle class, that's a social benefit," Lee said. "That creates stability in
the country in which they live and is good for business. It's the triple bottom line."
Contact Karina Ioffee at 510-262-2726 or kioffee@bayareanewsgroup.com. Follow her
atTwitter.com/kioffee
http://www.contracostatimes.com/richmond/ci_28355468/richmond-company-educatingamerican-consumers-about-benefits-rice

CME Group/Closing Rough Rice Futures


CME Group (Preliminary): Closing Rough Rice Futures for June 22

Month

Price

Net Change

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July 2015

$9.845

+ $0.125

September 2015

$10.100

+ $0.125

November 2015

$10.375

+ $0.125

January 2016

$10.635

+ $0.120

March 2016

$10.840

+ $0.120

May 2016

$10.840

+ $0.120

July 2016

$10.840

+ $0.120

APEDA News (India)


Price on: 19-06-2015

Product

Benchmark Indicators Name

Price

Chinese first grade granules, CFR NW Europe (USD/t)

2100

Chinese Grade A dehydrated flakes, CFR NW Europe (USD/t)

2000

Chinese powdered, CFR NW Europe (USD/t)

1800

Chinese sliced, CIF NW Europe (USD/t)

4600

Chinese whole, CIF NW Europe (USD/t)

5100

Indian Cochin, CIF NW Europe (USD/t)

3000

Garlic

Ginger

Guar Gum Powder

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Indian 100 mesh 3500 cps, FOB Kandla (USD/t)

4530

Indian 200 mesh 3500 cps basis, FOB Kandla (USD/t)

1950

Indian 200 mesh 5000 cps, FOB Kandla (USD/t)

3050

Source:agra-net

For more info

Market Watch
Commodity-wise, Market-wise Daily Price on 20-06-2015
Domestic Prices
Product

Unit Price : Rs per Qty

Market Center

Variety

Min Price

Max Price

Cachar (Assam)

Other

2000

2500

Kheda (Gujarat)

Other

1750

3300

Bargarh (Orissa)

Other

2100

2300

Dhekiajuli (Assam)

Other

1500

1600

Amirgadh (Gujarat)

Other

1350

1525

Bonai (Orissa)

Other

1450

1600

Kottakkal (Kerala)

Other

1800

1950

Chittorgarh (Rajasthan)

Other

2800

4000

Kangra (Himachal Pradesh)

Other

3000

3500

Chala (Kerala)

Other

1800

1850

Banki (Orissa)

Other

1400

1600

Karad (Maharashtra)

Other

1000

1200

Rice

Wheat

Pine Apple

Cucumbar

Source:agra-net

For more info

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Egg

Rs per 100 No
Price on 21-06-2015
Product

Market Center

Price

Pune

437

Chittoor

440

Hyderabad

402

Source: e2necc.com

Other International Prices

Unit Price : US$ per package


Price on 19-06-2015

Product

Market Center

Origin

Variety

Low

Potatoes

High
Package: 50 lb cartons

Atlanta

Baltimore

Dallas

Colorado

Russet

23.50

23.50

Idaho

Russet

24

24

Nevada

Russet

23.50

23.50

Cauliflower

Package: cartons film wrapped

Atlanta

California

White

21.50

21.50

Detroit

California

White

19.50

22

Miami

Mexico

White

16

18

Grapes

Package: 18 lb containers bagged

Atlanta

Mexico

Red Globe

25

26

Dallas

Peu

Red Globe

28

28

Detroit

Washington

Red Globe

26

28.50

Source:USDA

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10

Mechanisation reaches Pokkali fields in Alappuzha


R. RAMABHADRAN PILLAI
AThe district now has a new machinery to replant paddy seedlings in Pokkali fields.It is for the
first time that such mechanisation process has been introduced in the scheme of Pokkali farming
in the State.The machine, costing about Rs.2 lakh, was launched by District Collector N.
Padmakumar at the Koorichal Pokkali fields at Eramalloor in Cherthala on Saturday. The
replanting machine was developed by the scientists of rice research centre of Kerala Agricultural
University, in association with a private company.Replanting of seedlings is a labour-intensive
process and availability of workers has been one of the major challenges faced by farmers.
Pokkali rice in Kerala is considered organic and has got Geographical Indication (GI)
certification. Pokkali fileds stretch over the coastal areas of Alappuzha, Ernakulam and Thrissur
districts in the State. Pokkali farming area in Kerala has come down from 25,000 acres to 5,000
hectares within the last 15 years owing to various problems faced by farmers, Francis
Kalathngal, a Pokkali farmer and convenor of coordinating committee of Pokkali farmers,
told The Hindu .
Pokkali fields do not require inorganic fertilizers or irrigation facilities set up by the government.
As such, the government needs to support the farmers through providing subsidy on the machine
so that it could be widely used, he said. Subsidies under certain schemes such as Gram Vikas
Yojna are available from the Union and State governments, but are generally not disbursed on
time, he added. The machine is an innovation pioneered by the scientists of rice research station,
Ernakulam, said V. Sreekumar, professor and head of the centre, told The Hindu . Three years of
experimentation has proved that it could be deployed in Pokkali fields characterised by loose
sand and mud. It would take only one to one and a half hours to conduct the replanting
operations in one acre. The use of seeds could also be reduced by spreading the because of the
optimum practices employed in replanting, he said.Preparing the fields for the mechanized
process is important, according to Mr. Kalathingal. Late arrival of monsoon is a problem
confronting the farmer. Washing away the salt content in the field by the rains for a fortnight is
important. The traditional way of broadcasting for sowing the seeds involves wastage whereas
mechanisation provides scope for optimum use of seeds. The distance between the plants could
also be set conveniently for giving maximum harvest, he said.
It is for the first time that such mechanisation process has been introduced in the scheme of
Pokkali farming in the State.
http://www.thehindu.com/news/national/kerala/mechanisation-reaches-pokkali-fields-inalappuzha/article7341004.ece

Matia:
10

Crops

worth

over

Tk700cr

damaged

by

rats

Mohammad Al-Masum Molla


Food grains, including paddy, rice and wheat, worth around Tk723.72 crore were damaged by
rats in the 2015-16 fiscal year, Agriculture Minister Matia Chowdhury told parliament
yesterday.Responding to a question by ruling party lawmaker M Abdul Latif, the minister said

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11

the extent of loss of paddy at current market price totalled over Tk439.82 crore in the outgoing
fiscal year as some 237,744 tonnes of paddy were damaged by rats.She told the House that the
rats also damaged around 62,764 tonnes of rice, of which the current market price is over
Tk200.84 crore.Some 29,660 tonnes of wheat were also damaged, amounting to an estimated
loss of over Tk83.04 crore at current market price.
According to the Department of Agriculture Extension (DAE), around 5-7% of the rat-damaged
crops is Aman rice, 4-12% wheat, 5-7% potato and 6-9% pineapple.According to International
Rice Research Institute (IRRI), rats have been estimated to damage more than 1% of the world
cereal crops and, in developing countries, estimates of 3-5% have commonly been reported.IRRI
also said rats consume about 25g of food per day and mice eat approximately 3-4g per
day.According to an IRRI research report, the amount of rice damaged by rats in Asia a year is
equal to the amount of food consumed by 180 million people annually; in Bangladesh, that
amount is equal to food annually consumed by 5-5.4 million people.The DAE Agriculture
Extension Department usually conducts rat extermination drives in August. A total of 13,939,986
rats were killed in 2013 in one such drive.
Rats part of food chain
Despite the damaging effects of rat infestation, experts believe that rats have their own role to
play.Pavel Partha, an ecology expert, said there are many communities in Bangladesh who
heavily rely on collecting rice from rat holes. It is not possible that rats are causing much
damage. Bagdi and Mosohor communities depend on collecting rice from rat holes all year to
feed. Similarly, Santal and Muda people collect Aman rice for rat holes.Exterminating rats by
poison or other means is not the solution, nor is it possible to achieve, Pavel further said.Rat is a
very important element of food cycle and food pyramid. So, eradication of any element from the
food cycle will simply destroy the natural harmony of ecology. So, projects should be undertaken
to find out why the rat population increases where the problem lies and then actions should
be taken accordingly. Killing them is not the soluting.
http://www.dhakatribune.com/bangladesh/2015/jun/22/matia-crops-worth-over-tk700cr-damagedrats#sthash.kjxMMr8P.dpuf

MATT ROBERTS: I stick to my diet but can't shift weight


By MATT ROBERTS FOR THE MAIL ON SUNDAY
PUBLISHED: 21:10 GMT, 20 June 2015 | UPDATED: 00:16 GMT, 21 June 2015

11

Eating fresh protein-containing foods such as dairy, eggs, poultry, fish and meat is key to feeling
energised and is vital for a developing body. A rainbow variety of fresh vegetables (stock
image above) is equally importantQ. After reading your article on Taylor Swift last month, I
wanted to write to you. I am aged 15, 5ft 3in and weigh 12st. My weight has always been an
issue my mum says I was so heavy as a baby that people couldnt carry me for long. I know I
am to blame too, but I was diagnosed with polycystic ovary syndrome at 13 and have to take the

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12

Pill for that, as well as taking diabetes medication.Ive tried to lose weight before and not
managed it, but Ive never felt this motivated. Im planning to walk three miles a day, and once a
week do Zumba.Im already following Jillian Michaelss 30 Day Shred programme.
I have cornflakes and semi-skimmed milk, or
one egg and two slices of toast, for breakfast.
Lunch is carrot sticks and water, and dinner is
usually pasta or rice with chicken or fish. Ive
been following it for a month but there hasnt
been much change and that demotivates me.
You have no idea how grateful Id be if you
could help me.A. This letter really touched me
and I want to devote all my space to answering
it, because there are so many young people
battling similar problems. Your first hurdle has
been passed: recognising there is a problem
and that things must change. But as you say,
things often fall apart when a plan doesnt
achieve results. And thats because people
have misconceptions about what constitutes a
healthy diet-and-fitness regime.For a start,
severe calorie restriction (and fairly empty
calories at that, in cornflakes and carrots) will
mean you feel tired. And ignore fads special
weight-loss teas or pills and options dont work.Eating fresh (never pre-prepared or processed)
protein-containing foods such as dairy, eggs, poultry, fish and meat is key to feeling energised
and is vital for a developing body. A rainbow variety of fresh vegetables is equally
important.Have as much as you like, and only eat starchy foods like potato and pasta very
occasionally. A piece of wholegrain bread or a small portion of brown basmati rice is fine, but
why not try swapping them for beans and pulses? Tinned, pre-cooked beans are fine there is a
huge variety, and I dont mean baked beans!
http://www.dailymail.co.uk/health/article-3132653/MATT-ROBERTS-stick-diet-t-shift-weight.html#ixzz3dsdQo5qk

water sufficient till july yield to be impacted


12

Jun 23, 2015, 07.57 AM IST | Source: CNBC-TV18 Water sufficient till July, yield to be
impacted: Edelweiss In situation of short rainfall or EL Nino, yield will be impacted and not the
overall production of all crops, Prerana Desai, Head-Research at Edelweiss Agri Research told
CNBC-TV18. 6 1Google +0 0Comments (1) Halftime Report Despite delay in monsoon by 5-6

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13

days, rainfall receieved so far is 16 percent more than normal, Prerana Desai, Head-Research at
Edelweiss Agri Research told CNBC-TV18. The reservoirs are filled and there is sufficient water
to last till July, she said. Unlike reports from IMD and private companies that north-west region
will bear the brunt of low rainfall, Desai said that the region, comprising broadly of Punjab,
Chhattisgarh and western UP, are irrigation areas and will be taken care of.
In case of El Nino, she said said yield will be impacted and not the overall production of crops,
adding, "lower yield will be taken care by dramatically higher acreage." Crops like rice, oil seeds
and pulses are those most affected by El Nino or low rainfall. The shortfall will be taken care by
the carry-over stock of the government from last year, Desai said. On the issue of minimum
support price (MSP) scheme, she said if government increases MSP, then it will actually have to
buy stock; if they dont, prices will suffer. Below is the transcript of Prerana Desai 's interview
with Sumaira Abidi & Reema Tendulkar on CNBC-TV18. Sumaira: The last few days we have
received bountiful rains and yet there are some contradictory reports from the IMD as well as
some private weather agencies about whether 2015, the season itself is going to be a normal
monsoon or not. It is too early into the season, but for the sake of argument, what has been your
own reading of the showers?
A: Monsoon forecast has always been a tricky question in India; we have not been able to
capture even the next day 24 hours or 48 hours monsoon forecast. As you can see the way it has
been raining in Mumbai in last 24 hours because we have been given warnings and there are
signals. So, effectively we have not been able to forecast it, but so far the monsoon has been
good. In fact, it is better than expected. It is 16 percent higher than normal monsoon and it has
covered largely areas till central India. We are running behind by around 5-7 days time-frame.
Reema: In that context, would you still say that we should be in a wait and watch mode since
July is more of a critical month for the monsoons historically?
A: The way we are seeing it we have had good soil moisture kind of situation in January to
March because of the untimely rains that we have had. In addition, we have been moving pretty
healthily in the first half of June at least so far and most of the regions have had comfortable
monsoon so far. From that perspective and of course the water reservoir, everything seems very
good up until now. This will help the gap even if we were to have say lack of monsoons in the
month of July or so, we will still be comfortable because water reservoirs are duly filled up and
the soil moisture is comfortable. It is only after July we will need to watch out for. The world is
being affected by the El Nino, so it is not really over till it is really over. We will have to see how
the monsoon is spaced out, which are the reasons that are going to be affected. The weather
agencies, some of the global ones are also saying that north-west might get impacted the most.
13

The north-west, Punjab, Haryana, Western U.P, are all irrigated regions, so even if we were to
have a slightly below normal kind of monsoon, that should be taken care of. Unless and until
there is some dramatic the way IMD has been forecasting 88 percent of the normal monsoon in that case, there will be a matter of worry, but so far there are no signs of that thing happening.

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14

Sumaira: Clearly, it is the El Nino which will be the x- factor this time around. How much of an
impact do you think the El Nino will have on Indias agricultural production if it indeed pans out
the way IMD has indicated? A: Edelweiss Agri Research has released a crop intention report,
which is unique in itself. So, there are a couple of things that are coming out very clearly. Firstly,
last year we were running behind schedule and last years net sown area as given by the Ministry
of Agriculture was dramatically lower. Since, we have been moving along the monsoon in a
rather normal way, we will have year on year higher acreage.
Now, that effectively means that from here onwards we are impacted by El Nino dramatically;
that will impact the yield because acreage is going to be higher year on year. If the lower yield
will be taken care of by dramatically higher acreage and hence, the total production number
barring few crop specific production estimate, total production may not be impacted all that
much because there will be higher area and lower yield. Sumaira: That is interesting because
what you are essentially saying is that the higher production will take care of low yields and for
key crops like Basmati rice, the government could always dip into the buffer. So, in effect the
overall production may not get impacted despite sub-par monsoon. Is that a fair reading of your
report? A: Yes, there are a couple of things that is giving this inflation outlook twist. One is the
fact that we have sufficient carryover stocks from last season because exports have been very
negligible especially in case of cotton, sugar, maize and paddy.
We have sufficient stocks and huge crop from the last season that is suppressing the prices. But
there will be crops that will get impacted in case of lower production- something like pulses
where we are running huge deficit and some of the oil seeds that has been seeing lower
production especially in Rabi season. Oil seeds might get impacted, but it is crop-wise analysis
and you cannot flatly say whether the prices will up or down for all the crops across the
spectrum. Reema: How have you read the governments stance on minimum support prices
(MSP) this time and largely the governments rational stance has garnered a positive view from
the economists as well. What has been your reading of the same?
A: MSP is a very tricky issue because especially when global prices have been falling, if you
keep increasing the MSP, then government has to buy physically to support the prices and if
government does not actually enter into buying, then the prices fall dramatically the way we have
seen for maize. Despite having 1,310 MSP in the last season, the prices ruled at Rs 1,100 per
quintal throughout the season in most centers. Unless and until the MSP gets implemented, it
really has no impact and the farmers decision is made up much ahead of time. Our report was
released before the MSP was announced and whenever we spoke to farmers, there was positive
vibe about the pulses, the oil seeds crop and Jowar seed crop. So, farmers usually make up their
mind based on prices than purely on basis of MSP.
14

Reema: You are saying that overall acreage will be higher however if the north-western central
India do get impacted the most. Which crops will be in this high risk zone? A: Our agri research
has studied many El Ninos and we have realized that there are few crops that do not get impacted

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15

by it or below normal monsoon. These are sugarcane because it is supplemented by largely


irrigation, there is cotton because there has been technological breakthrough and it can sustain
lower monsoon and cotton has been seeing higher acreage and improvement in yield and things
like that. So, even cotton does not get impacted. If El Nino materializes, then it will be the rice
that will get impacted, we will see oil seeds getting impacted and some of the pulses will get
impacted. Of all the pulses, Urad is the one which actually thrives on below normal monsoon and
because the way we have seen pulses prices, we see that Urad crop will be higher no m
http://www.moneycontrol.com/news/economy/water-sufficient-till-july-yield-to-be-impactededelweiss_1591361.html?utm_source=ref_article

Dominating the rice exports market


Indias presence in global rice trade is a great stabilising force
By: Tejinder Narang | June 21, 2015 11:58 pm
If the probability of deficient monsoons does not cast a negative spell on Indian summer crops
(or assuming that Skymets forecast is proved right) and rice production stays around 103 million
tonnes (MT), India can again maintain top rank in world rice trade by shipping out about 12 MT
in 2015-16. An adverse export performance by India can rattle worldwide rice trade with
extreme volatility and exorbitant prices.India has been top exporter in global rice trade of about
42 MT by averaging 10.5-11 MT (25% of world trade) annually during the last four years (since
2011).
The sustainability in rice exportsthe only one with a competitive-edge internationally as
compared to other Indian agro commoditiesis the resultant outcome of a combination of
external factors, dynamics of domestic market, hybridisation of paddy, and efficient execution of
contracted business both form east and west coast ports of India. Thailand has been trailing India
by a small margin in the last two years, while India is also exposed to competition from Vietnam,
Pakistan, Myanmar and Cambodia.India primarily caters to the Middle East and Africa for nonBasmati and the EU and the US for Basmati variety.Dubai has emerged as a key trading hub for
financing and facilitating payments, especially for Africa.
Indian exports are undertaken by medium-sized private companies from open market, without
any export subsidy or government intervention. No MNCs or PSUs or mega corporates are
15

engaged in this business. After prohibition on exports was revoked in 2011, FCIs stockholdings
remain untouched. There are no MEP (minimum export price) or registration requirements that
enable ease of doing business.
China ignores India

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Chinas current rice imports are about 4 MT in 2014-15, up from 0.5 MT in 2010-11, and it has
kept Indian non-Basmati rice at an arms length. Chinese supply-demand gap is filled by official
and unofficial imports from Thailand, Vietnam, Pakistan and Myanmar, though recently grey
market access through land route is attempted to be blocked. Chinas escalating import demand
due to water conservation measures and higher cost of paddy will continue to increase in the near
future and that will keep South-Eastern origins (Vietnam and Thailand) well supported for
consumption of their production, which is a net advantage to India for pricing and limiting trade
rivalry. At political level, the Indian governments efforts are on for induction of non-Basmati
rice into Chinese procurement system.
Thai effect
The Thai government messed up its entire rice matrix through modified paddy pledging
scheme of 2011 by giving farmers values 50% above market price for political populism that
resulted in accumulation of 18 MT of rice equivalent to 43% of world rice trade, pushing price
levels unrealistically way above international quotes including those from India. Though this
scheme was wound up in 2014, it depressed Thais booming exports from 10 MT in 2010-11 to 7
MT in 2011-12, while causing severe collateral long-term damage to rice quality, despite prices
having crashed to tradable levels by $200/MT (from $580 in 2011 to $380 fob now).
Some lessons can be learnt by India that abnormal increase in MSP with dedicated procurement
can be counterproductive. Out of 18 MT of pledged inventory, 10 MT is to be reprocessed, 6 MT
gone irreparably bad/unfit for human consumption and only 2 MT could be sold (USITC report
of April 2015). Thus, international buyers suspect Thai quality. It has simultaneously generated
goodwill for Indian rice with enhanced access/success abroad.
Irans interest
Other external developments were the US and the UN sanctions against Iran in 2010-11, opening
of an Indo-Iran rupee account, and commercial exploitation by Iran of high yielding Pusa 1121
Basmati rice developed by IARI, which is 33% cheaper (about $1000-1200 fob) than
conventional Basmati rice ($1600-1800 fob). Pusa 1121 has exceptionally long grain length of
about 8-mm with elongation characteristic of 25-mm upon cooking. About 1.4 MT was shipped
out in 2013-14 versus 0.6 MT in 2011-12 to Iran, which proved highly remunerative both for the
trade and farmers. Though Iran notified a general ban on Indian imports in 2014-15 due to
excessive imports, it turned out to be restrictive trade between select importers and exporters
with overall exports touching around 0.95 MT.Other Middle Eastern nationsSaudi Arabia,
Kuwait, Yemen, UAEare also keen to procure more of Pusa 1121 rice.Total exports to Middle
East are about 4 MT.
Pull from Africa

16

The West African market (Nigeria, Senegal and Ivory Coast) and South Africa of about 3-3.5
MT per annum is hooked onto 5% parboiled variety and 100% brokens parboiled rice. No other
origin, except Thailand, can efficiently service parboiled requirement. Thais inconsistent
quality, higher prices and freight for Africa are favourable for the growth of Indian parboiled rice
industry.

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17

17

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18

Domestic pricing
Indias MSP of non-Basmati paddy is about $224/MT. All other origins, except Pakistani, are
costlier than India. Further, levy procurement by state governments stands abolished in 2014-15
which has enhanced market availability. FCI is trying to auction 25% broken rice (raw/parboiled)
at OMSS of R23/kg while in open market 5% brokens parboiled can be bargained at R20-21/kg.
There are virtually no takers for FCI stocks. This evidences market comfort in the supply side.
There are multiple varieties on offer like IR36, IR64, 1001, Swarna, Sona Masuri, Ponni samba
Parmal and P4 and that gives options for transacting the deal at right prices. Indian grain is
available throughout the year even from West Bengal, Bihar, Chhattisgarh, Odisha and
Jharkhand in addition to other growing regions. Rice is not traded in any future exchange and
thus there is nil scope for open speculation or price rigging.
Indias presence in global rice trade is a great stabilising force. Exports support better price
realisation for paddy farmers; Basmati is a product of specific GI (geographical identification)
and is highly remunerative. Indias absence/decline from non-Basmati rice in international trade
will spike prices more than $1000/MT fob (currently $350-400/MT) especially when Chinese
appetite for rice is expanding. Thai jasmine (aromatic) rice may touch $3,000/MT fob (now at
$850-$900) if our Basmati exports drop significantly. Hopefully that state of affairs will not arise
despite poor monsoon due to more than sufficient carry-in inventory available with the
government and in Indian markets.
The author is a grains trade expert
http://agriculture.einnews.com/article/271997668/1pmUskU8cIg-fVpK

GAWU and the RPA have suddenly found their voices


Dear Editor,

18

I have noticed that Guyana Agricultural and General Workers Union (GAWU) and the Guyana
Rice Producers Association (RPA) two arms of the PPP have suddenly found a voice after both
of these industries which they controlled for decades were billions of dollars in debt. The leaders
of these two organizations sat in parliament as MPs and never raised any objections when the
rice funds were being diverted for other purposes, and now they are using the media to highlight
the problem as if it was caused by the new coalition government, and they are demanding that
the administration pay these workers and farmers.

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19

The sugar workers and rice famers have now become disillusioned with GAWU and the RPA, as
they have failed to be militant instruments to fight for their rights. Both of these organizations
were founded by the late Dr Cheddi Jagan who gave active guidance to the sugar workers and
rice farmers, but they never lived up to their names after he died. Rice farmers and sugar workers
later found out that they were being betrayed by these organizations.In the case of sugar, millions
have not been paid into NIS and the credit union. Farmers and millers in all the rice-growing
regions are still owed millions of dollars for rice and paddy supplied under the PetroCaribe
agreement, which was signed in 2005. The balance of the money was paid promptly after the
deduction was made for the oil supplied by Venezuela.
Today, I noticed that the General Secretary of the RPA is demanding that the farmers and millers
be paid from the empty rice pot which was inherited by the coalition government, and that the
Rice Factory Act be implemented to protect the rice farmers. The millers were flouting the very
act in his presence and he was toothless. He and the GRDB have never represented the rice
farmers who had grievances; farmers were being shortchanged with their weight, grades,
moisture, dockage and most of all their payments without interest, while he stood there watching.
The crisis is still there, and the new coalition government has to find money to bail out the two
industries, workers, farmers and millers.
While the rice farmers were protesting for their paddy payments here on the Essequibo Coast, the
government stood quietly in a corner without explaining to them where the money had gone. On
top of that they sent the police to tear gas them during protests. One miller told me that he was
muzzled and couldnt talk because of fear of being victimized, and that he wouldnt get a quota
to send paddy and rice to the Venezuelan market. He was glad to get his stocks off his hands as
his warehouse was filled with rice and paddy. The GRDB and the RPA knew that they couldnt
enforce the Rice Factory Act against the millers, because they knew that it was the government
19

which owed the millers and they couldnt pay the farmers for their produce.

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I worked with both of these organizations, and knew they would only be vibrant and represent
the cause of the workers and farmers when the government changed, as has now happened.
Yoursfaithfully,
Mohamed Khan
http://www.stabroeknews.com/2015/opinion/letters/06/22/gawu-and-the-rpa-have-suddenlyfound-their-voices/

Plant an animal

Releasing ducks into paddy fields could increase rice productivity and raise
farmers income

Ducks in a paddy field. Photographer: SWARNIMA SHRESTHA (Courtesy)

JUN 23 -

20

In the aftermath of the Great Quake and its


aftershocks, Nepal is set to face food deficit this
year. As per Ministry of Agricultural
Development estimates, paddy output will drop
by 5.1 percent to 4.78 million tonnes this year
owing to the late monsoon and untimely rainfall.
At the onset of the rice cultivation season,
learnings from a pilot research in Chitwan can
serve as an example to millions of farmers across
Nepal. An experiment with integrated rice-duck
farming resulted in a 13 percent increase in rice
productivity and the net income of the farmers increased by 44 percent. By using the same
method, in other countries, farmers have been able to increase their productivity by almost
two times.
Introduce the ducks
Rice duck is a smallholder farmer-friendly technology. The main principle of this
technology is to exploit the symbiotic relationship between ducks and rice for higher
productivity. Ducklings are released into rice fields after 15 days of paddy transplantation.
In the rice fields, the ducks act as pest and weed controllers. They feed on insects and
weeds and in return, their droppings serve as an organic fertiliser whereas the paddling of
ducks works as a stimulant for the growth of rice, resulting into healthy plants.
Meera Darai, Chairperson of Janashakti Dhan Hans Palan Samuha, a group involved in
rice-duck farming in Kathar of Chitwan, says that weeding and other intercultural
operations done by ducks are better than what humans can do. According to her, a riceduck field looks greener and fresher than a normal field. She says that the Hongkong and
Peking cross breeds seem to be more appropriate for rice-duck fields than the local breed
as they grow quickly and have a peculiar sound.

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Rice-duck farming cancels out the chemical fertiliser input which is usually imported from
India. Similarly, it avoids the cost of controlling pests and outbreak of new pests in the rice
field. Ram Lal Chaudhary, a member of Gunastariya Dhan Hans Palan Samuha, a group
in Kumrose Village Development Committee of Chitwan, says that he did not use any
chemical fertiliser and pesticides in his paddy field though his neighbour did so three times
in a single cultivation period. According to him, unwanted insects like Drosophila and
mosquito are eaten by ducks in the evening.
Not new to the region
Rice-duck farming is not new to Nepal and the region. Existing literature shows that
Chinese farmers had been releasing ducks in the rice fields since 1000 years ago.
Likewise, Japanese farmers grew rice and duck together since 500 years ago until the
practice was eliminated due to the mechanisation of agriculture.However, inspired by
Rachel Carsons Silent Spring, a Japanese farmer Takao Furuno developed a simple,
ecological rice farming method by introducing ducks in 1989. This method found its way
into other rice-growing countries like South Korea, China, Vietnam, the Philippines,
Thailand, and even to Iran. Today, thousands of farmers across Asia have taken up this
method of integrated rice-duck farming.In Nepal, according to Krishna Chaudhary, a
member of Paribartan Dhan Hans Palan Samuha, another group involved in rice-duck
farming in Kathar, Tharus had been grazing ducks in their rice fields since the past but not
systematically. For his group the method is very simple, cost effective and environmental
friendly.
Good for environment
Another interesting finding by Hiroyuki Morii, an assistant professor and researcher at the
University of Occupational and Environmental Health, Japan is that rice-duck farming is
more environment-friendly. According to Moriis experiment, the ducks could control
methane released from the rice fields. Methane is one of the major contributors to the
greenhouse effect and it is estimated that 12 percent of all the methane released into the
environment is from rice fields.Similarly, a study done by Chinese scientists on rice
paddies using integrated rice-duck farming system in China showed that the constant
paddling of ducks in the rice fields could suppress the methane and nitrous oxide
emissions from rice paddies. Based on their research Nitrous Oxide Emissions from
Wetland Rice-Duck Cultivation System in Southern China, scientists Chengfang Li,
Cougi Cao, Jingping Wang, Ming Zhan, Weiling Yuan and Shahrear Ahmad opine that
rice-duck farming will contribute to alleviating global warming.
More food, more income

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The rice produced from the integrated rice-duck farming method is organic and commands a better
market price in cities like Kathmandu. According to National Agricultural Research Council, rice
is grown in 1.44 million hectares across the country. However, the productivity is only 2.56 tonnes
per hectare. By introducing this method, the farmers would be able to reap the benefits of better
productivity which makes it an appropriate technology to address the problem of food
insecurity.Apart from harvesting rice, farmers would also be able to earn more money by selling
the ducks at the end of the harvest period. Duck meat also provides nutrition to the farmers and
their families. Farmers can practice agriculture in a chemical free environment as no chemical
fertilisers and insecticides are used in this method. Hence, the method of integrating ducks in rice
fields not only helps farmers economically but also environmentally. And this is what Nepal needs
in this post-quake period where agriculture output has been predicted to
fall.http://www.ekantipur.com/2015/06/23/oped/plant-an-animal/406914.html

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