Rice Market Report

Thailand Rice traders harvest new businesses

2011-01-21T09:30:00.002Z

New generation turns away from historic Songwad Road to find more lucrative opportunities Profit margin as low as 10 cents to the dollar is making the rice business increasingly unattractive for Thailand's legendary rice traders. The Kingdom's historic rice-trading area on Bangkok's Songwad Road may not be permeated by the smell of grain and rice dust much longer, as exporters diversify to protect their businesses from market fluctuations and politically shifting government policies. The property, energy and service businesses are popular sectors they have moved into to capitalise on higher margins. In particular, office buildings or condominiums in Bangkok's prime areas generate high income at an average of Bt80,000-Bt100,000 per square metre. Such prices create profit of at least 10-20 per cent for investors. Soon Hua Seng Group, once the Kingdom's biggest rice exporter, has turned away from the rice business to focus mostly on pulp and paper through its Double A printing-paper brand and is now pursuing a new challenge as a small power producer. Rice and other crops no longer form the group's core business. In another example, Hong Yiag Seng (Thanapornchai Rice) has shifted to other lucrative business, particularly TPI Polene, a cement manufacturer. The diversification of the industry has relegated the Kingdom's Rice Trading Road to legend status. For nearly 100 years, Songwad Road was not only the country's biggest rice-trading area but also the heart of the Chinese community in Bangkok, where the wealth of many well-known Chinese-Thai families was generated. This changing environment raises questions on whether it will undermine Thailand's status as the world's biggest rice exporter. In addition, severe competition from export rivals, particularly Vietnam, Cambodia and Burma, as well as the regional integration through the Asean Economic Community by 2015 will affect Thailand's rice business. The business diversification has occurred over the past 20 years as rice traders sought to avoid not only high risk but speculation. In addition, rice exports generate low margins despite large sales volumes. "With these factors, Thai rice exporters have to explore other businesses to secure their profits," said Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association. Chookiat is also managing director of Huay Chuan Rice, a pioneer rice exporter on Songwad Road. The family now has also undertaken such businesses as a hotel in Phuket, manufacturing Pheasant bicycles, and plastic manufacture. Charoen Laothamatas, president of Uthai Produce, pointed out that continuing in the rice business was very difficult now amid tougher competition both in the country and overseas. The business has not attracted the young generation, who like working with digital technology and modern facilities. "The rice business has no textbook to teach you how to manage it, but one has to do it with heart, sense and serious intention. In addition, there is a lot of political interference," he said. "Rice trading does not make a lucrative profit as in the past. Now, you have to be satisfied with a 10-per-cent margin on an order." Charoen suggested that if |anyone wants to succeed in rice export, the scale of investment should be at least Bt1 billion. He noted that political intervention |in the government price-subsidy programme had caused a lot of problems along with severe price competition from export rivals. Inevitably, Charoen has also entered the hotel service business, opening Dheva Mantra last year with an investment of Bt800 million. It is a premium resort and spa in Kanchanaburi with full facilities. Chockchai Sethiwan, an executive of Thai Hua (2511), said Songwad Road was now just a rice-trading legend. There is only small-scale trading of beans and cereals at present instead of the crowded bargaining environment between brokers and traders as in the past. While the history of the area is preserved in the form of a few historic buildings still owned by pioneer rice exporters, the businesses themselves have moved into modern offices, Chockchai said. He noted that the fluctuating rice price was the most important factor forcing rice exporters to explore new business opportunities. Chockchai's property business has focused on office buildings, service apartments and residences. Its latest interest is to form a joint venture with a Thai partner to set up a solar-energy business. The companies carry on with their rice export business parallel with diversified business not only to reduce risk but to accommodate their older staff who have accumulated long experience in the rice business. While the future for the old way of business may not be bright, the way has been paved for new enterprises, creating business opportunity for newcomers. Meanwhile, rice millers have developed to become exporters, playing an important role in maintaining Thailand's place as the world's No 1 rice supplier.

India rice procurement crosses 10 mn tonnes so far

2010-11-24T08:59:00.000Z

The Food Corporation of India (FCI), the nodal agency for procurement and distribution of food grains, has procured over 10 million tonnes of rice since October. "Rice procurement as on today stands at 100,83,026 tonnes," according to an official statement. The government had procured similar quantity of rice in the year-ago period. FCI and other state agencies have purchased 8.28 million tonnes from Punjab, 1.6 million tonnes from Haryana so far in 2010-11 marketing season (October-September). The rest has been purchased from Tamil Nadu, Andhra Pradesh, Kerala and Uttar Pradesh. The government''s rice procurement had declined in 2009-10 marketing season by seven per cent to 31.45 million tonnes due to a sharp fall in production by about 10 million tonnes, on account of a widespread drought in 2009. However, FCI officials are expecting better procurement this year as rice output is estimated to increase in 2010-11 crop year. In Kharif season, the country''s rice output is estimated at 80.41 million tonnes against 75.91 million tonnes in Kharif season last year. The sowing of rabi crops are in process.

Vietnam-Cambodia cooperate in rice marketing

2010-11-24T08:57:00.000Z

The Cambodian Takmoa Agriculture and Industrial Development and the Vietnamese Thai Thinh Company have signed a US$22.4 million contract to plant 20,000ha of rice for export. The Thai Thinh Company will provide assistance and support for rice cultivation and processing for two Cambodian provinces, Kompong Cham and Kompong Svay. The two sides will develop a water drainage system in the area and build a rice processing factory capable of producing 500 tonnes of rice a day in January, 2011. Lim Kimkhun, Chairman of Cambodian Takmoa Agriculture and Industrial Development said that both sides will cooperate to produce 2 harvests a year with an average yield of 7 tonnes per ha and a target to export 200,000 tonnes of rice by 2012. The contract will also generate works for nearly 280,000 Cambodian farmers.

S. Korea rice output falls to 30-year low

2010-11-24T07:57:00.000Z

South Korea's rice production fell to the lowest level in 30 years due to bad weather conditions and a steady decrease in the size of rice paddies, a government report showed Tuesday. The report by Statistics Korea said the country's rice production reached 4.29 million tons this year, down 12.6 percent from 4.91 million tons in 2009 and the lowest since 3.55 million tons in 1980, when cold weather devastated output. "Unseasonably cold weather in spring, and hot, overcast skies during the summer months seriously affected the yield of the staple grain," an official said. "This year's harvest was also hurt by several typhoons that hit the country." Reflecting the bad weather conditions, the average rice production for a 10-are paddy fell 9.6 percent to 483 kilograms this year from a record 534 kilograms last year when South Korea had a bumper crop harvest, helped by ideal weather and no typhoon damage. The report, meanwhile, showed the total area of rice paddies in the country falling 3.5 percent on-year to an all-time low of 892,000 hectares, as more farmland was converted for other uses. A hectare is equivalent to 10,000 square meters. The size of South Korea's farmland has been decreasing by a yearly average of about 2 percent, as the government eased restrictions on rural development and moved to build more roads and other industry-related infrastructures over paddies and fields.

Thailand Rice Price - Weekly

2010-11-22T10:33:00.002Z

Domestic and export prices increased by 3-5 percent as foreign buyers stepped up their enquiries of Thai white rice for export to African markets. Additionally, rice millers and traders are holding stocks speculating that MY2010/11 main-crop rice production will likely decline significantly in flooded areas. However, exporters expect prices will likely ease over the next few weeks once the damage due to floods is assessed.

Vietnam Rice exports total $2.5 billion

2010-11-22T10:32:00.000Z

Viet Nam has exported 6 million tonnes of rice this year, worth US$2.5 billion, reported the Viet Nam Food Association (VFA). The association said the export price of Vietnamese rice within the last two weeks increased sharply by between US$5 and $20 per tonne to $450 per tonne for 25 per cent broken rice and to $495 per tonne for 5 per cent broken rice. Head of the Ministry of Agriculture and Rural Development's Plantation Department Nguyen Tri Ngoc said the demand for rice by the end of this year would increase sharply while global supply would decrease, so traders should sign export contracts soon to capitalise on the opportunity. Domestic and international rice experts said the supply might increase next year because the Indian Government would resume exporting large quantities of rice. Therefore, export prices for rice would decrease during the next year. The Government issued a decree detailing the conditions for export rice trading to improve the quality of export rice and management. Under Decree 109/2010/ND-CP, eligible rice traders must have legal trading certification, one warehouse to store at least 5,000 tonnes of rice, one rice mill that can process at least 10 tonnes of rice per hour and will have to follow additional standards that will be mandated by the Ministry of Agriculture and Rural Development. Professor Vo Tong Xuan, a rice expert, said the decree would help increase the value of Vietnamese rice and improve the product's reputation globally. The country expects to export 6.5 million tonnes of rice this year, reported the association.

Philippines sets 2011 rice output goal at 17.4-M tons

2010-11-22T10:31:00.002Z

The government has set a rice production goal of 17.4 million tons next year, nearly 9% higher than a revised target of 16 million tons in 2010, a senior official said on Monday. The Philippines, the world's biggest rice buyer, expects rice production to reach 19.2 million tons in 2012 before becoming self sufficient in its staple in 2013, Dennis Araullo, a grains program director at the Agriculture department, told reporters. Agriculture Secretary Proceso Alcala, meanwhile, said rice purchases for 2011 will not be more than half of the record imports of 2.45 million tons last year. For the first 9 months, domestic production of unmilled rice fell 15% from a year ago.

Philippines May Import Rice in Early 2011

2010-11-22T09:21:00.000Z

The Philippines, the world’s biggest rice importer, may hold tenders for the grain in the first quarter of 2011, Agriculture Secretary Proceso Alcala said in a press briefing today. The Southeast Asian nation, which imported a record 2.47 million metric tons for this year, cut its rice production forecast this year to 16.02 million tons from 16.24 million tons due to storms that damaged crops. It’s still reviewing the volume, mechanics and timing of rice imports, Alcala said.

Thailand Rice harvest could be down 20%

2010-11-17T08:50:00.000Z

This year's rice production is expected to drop by about 20 per cent due to the massive flooding in the country, Thai Farmers Association president Prasit Boonchoey said on Thursday. Mr Prasit said the country usually produces about 10 million tonnes of rice paddy per year. The extensive flood damage to rice fields is likely to cut the crop by about 20 per cent. The drop in production would not cause shortages of rice, either for domestic consumption or export, because the country still has a considerable amount of rice in stock. Mr Prasit said rice prices are still in a favourable direction. The price of paddy is currently 9,000 baht per tonne, up from 8,500 baht, due to concerns over production both inside the country and abroad, since other rice-producing countries including Vietnam, India and Pakistan have also been hit by natural disasters. Therefore, the price may rise to as much as 10,000 baht per tonne, but not as high as 15,000 baht as some people may hope, he said. "Tomorrow (Nov 12), there will be a meeting of all concerned to discuss prices and marketing," Mr Prasit said. Mr Prasit said the government's plan to provide financial relief for flood-hit farmers at the rate of 2,098 baht per rai was good, but authorities should watch out for people trying to make dishonest gains from this measure. He said some people who had not really suffered damage have registered for help, causing a delay in relief payments to those actually affected.

Drought likely to hit rice crop Vietnam

2010-11-17T08:47:00.002Z

Insufficient rainfall is likely to affect the winter-spring rice crops across the country, the National Hydro and Meteorological Forecasting Centre said yesterday. Water levels in rivers in the north-central provinces would be less than last year's average levels by about 30 per cent. Those in the country's south-central and Central Highland provinces would be about 60 per cent less than last year's averages, said centre head Bui Minh Tang. "Drought and water shortages will spread extensively," said Tang. "Southern provinces will probably have to deal with salt water intrusions." The Red River's water level stabilised at 2.85m last month, said irrigation expert Dang Duy Hien. The river's average was usually about 2.91m. If the drought continued, about 650,000ha of winter-spring rice crops in the northern delta might be ruined, he added. The Ministry of Agriculture and Rural Development had asked northern provinces to reorganise their crops according to climate forecasts and recommended farmers plant dry crops such as corn or cashews, among others, that need little irrigation, said Deputy Minister Bui Ba Bong. "We should sow up to 60 per cent of land as soon as possible to avoid drought and salt intrusion early next year," Bong said. Vu Van Thang, head of the Irrigation Department, said provinces should develop drought mitigation plans as soon as possible and dredge canals and culverts to ensure irrigation of every field. "Additional pumps should be available when river levels drop too low," he said. The Department of Cultivation head Pham Dong Quang said provinces had been asked to save irrigation water for next year.

Philippines Rice stocks up by more than a quarter

2010-11-17T08:46:00.002Z

THE COUNTRY'S rice inventory at the start of October was up by 26.79% to 3.15 million metric tons (MT) from 2.49 million MT in the same period last year, data from the Bureau of Agricultural Statistics (BAS) showed.

Thailand Cuts 2010/11 Main Rice Crop Forecast

2010-11-17T08:44:00.002Z

Thailand, the world's biggest rice exporter, has cut the forecast for its 2010/11 main crop slightly to 22.3 million tonnes of paddy after the country was hit by floods, an Agriculture Ministry official said on Thursday. That was down from the previous forecast of 22.6 million tonnes and compares with output of around 23 million tonnes in normal years, Apichart Jongsakul told Reuters. "Flooding in some places in the central, low-lying areas has lasted longer than expected, damaging more of the rice output," Apichart said. The limited damage was in line with traders' estimates, most still expecting Thailand to produce more than than 22 million tonnes despite the flooding. The flooding hit Thailand's northeast and south, the country's main rice and rubber areas respectively, killing up to 203 people since October. Flood water still remained in at least 18 provinces. Harvesting of the country's main rice crop usually starts in November and finishes in late January. After finishing havesting, farmers in well-irrigated areas usually start planting a second, smaller crop that usually produces 5-7 million tonnes of paddy. However, traders and officials said recent flood water was likely to bring fertile alluvial soil to the flooded areas that could help boost the second crop. "We might have up to 8 million tonnes of paddy from the second crop," one trader said. Harvesting of this crop starts in late June.

Vietnam Mekong farmers relieved as floods finally arrive

2010-11-17T08:43:00.000Z

Much-delayed floods have arrived in the Cuu Long (Mekong) Delta where many farmers rely on the seasonal inundation for their livelihood. Paddy fields near the one of the Mekong's two major tributaries, the Hau, or Rear River, that were beginning to dry are now submerged. The occupants of small boats ply the flooded plain to cast nets or harvest water lilies. "My children caught a considerable number of fish yesterday," said farmer Duong Van Ut from Can Tho City's Vinh Thanh District. "I was worried about my paddy fields that were polluted with pests and rubbish," he said. "The floods will restore my fields." The Co Do District's Tran Huu Thanh who had raised more than 6,000 fish in an underwater trap that was short of water said he was now able to release his charges into submerged fields where they can swim freely. Once there, they would grow quickly and gain up to 200 grammes. "I can feed them with my catch and save money that I would have had to spend on fodder," he said. Fish farmers Many farmers in the Co Do and Vinh Thanh Districts use the yearly floods to breed and then farm fish in their fields. The floods typically arrive from June to October each year and the farmers along the two major tributaries have been anticipating them for months. The waters deliver a army of fish from Cambodia's Tonle Sap Lake and alluvial deposits that help nourish paddy fields. This year's delay created difficulties for the southern delta's fishermen, farmers, fishing net merchants and boat-builders. "Without the floods, we have neither crops nor fish," explained Vinh Thanh District fish farmer Nguyen Thi Khinh. "But a delayed flood is better than no flood – we still have something to catch," she said. An Giang hydro and meteorological forecast centre director Vo Thanh warned that water in the Tien, or Front River, where the Mekong enters Viet Nam in the province's Tan Chau District, had peaked at just 3.2 metres. The level was below the record low of 1989, he said. Can Tho's University scientist Dr Duong Van Ni attributed the belated floods to storms in northern Cambodia.

Export ban on non-basmati rice, wheat to stay for now India

2010-09-06T10:02:00.000+01:00

India is not looking to lift the export ban on wheat and non-basmati rice for now, the Commerce and Industry Minister, Mr Anand Sharma, has said. The export restrictions on these commodities were put in place a couple of years ago on the onset of high food inflation to ensure domestic availability. “As of now, there is no proposal to rollback the restrictions on exports of commodities including non-basmati rice and wheat. Basmati rice exports will continue to be allowed. An appropriate view will be taken once the monsoons are over,” Mr Sharma told a press conference after unveiling the annual supplement 2010-11 to the foreign trade policy 2009-14. Inflation Mr Sharma also highlighted that the current food price inflation implied that the Government needed to pay close attention to domestic availability. Food price inflation has remained in double digit for several months in a row despite the policymakers' assurances that they would get a handle over the situation and that wholesale price index (WPI)-based inflation would come down to 5-6 per cent level by end December this year. SEZ units To a query on tax breaks for special economic zones (SEZs) in the proposed Direct Taxes Code (DTC), Mr Sharma expressed confidence that the concerns of industry would be addressed when the final version of the DTC is sent to Parliament. “I have already discussed this with the Finance Minister and also with the Prime Minister. The Finance Minister is fully sensitive to our concerns and also the apprehensions of the industry and investors,” Mr Sharma said. He assured industry and investors in SEZs and SEZ units that their benefits will be fully protected and policy stability will be ensured when it comes to SEZs that have already been notified and those that will be notified before the DTC comes into force. The Commerce Secretary, Dr Rahul Khullar, later said that the Commerce Ministry was working on a “compromise solution” with the Finance Ministry on the issue of tax breaks for SEZ units in the proposed Direct Taxes Code regime. Mr Sharma said that the financial implications of the export incentives (bonus incentives and add on to focus product schemes) announced on Monday would be about Rs 1,050 crore. The Rs 1,050 crore will not be money voted as demand for grants through Parliament. “What we are doing here is issuing scrips as incentives. This is not in the nature of an expenditure. It is what is called tax expenditure — that is you are foregoing revenue and not actually spending any money. The tax expenditure is done through an executive order,” official sources said.

Heat wave to cut Cambodia rice harvest : FAO

2010-09-06T10:01:00.000+01:00

Extreme heat due to lack of rains in the recent past threatens to cut rice harvest in Cambodia to levels unseen since 2006, FAO said. According to United Nations Food and Agricultural Organisation, production of rice is likely to fall 22 percent to 5.9 million unmilled tonnes this year compared with 7.8 million tonnes of paddy farmed in 2009. In a report the FAO said prospects for the season have been marred by drought conditions, which have been affecting the greater Mekong sub-region since late last year. Cambodian Centre for Study and Development in Agriculture enterprise said drought conditions were affecting only some parts of the country. The important thing is that farmers choose to grow rice from good seedlings and ensure proper use of fertiliser, it added. Cambodia’s department of Meteorology said late rains could reverse the drought. “We expect rain levels to be close to last year from the middle to the end of the rainy season, and rain will still fall until November,” it said in a forecast.

Vietnam Rice Price - Weekly

2010-09-06T09:58:00.000+01:00

Export rice prices were still rising strongly last week. The Vietnam Food Association announced the guidance prices for 5 percent broken rice at $400 per ton and 25 percent broken rice at $370 per ton. Local paddy prices also increased further last week. However, in some provinces in the Mekong River Delta, the increases in paddy prices have slowed over the last two weeks.

Thailand Rice prices pick up as demand improves

2010-09-06T09:57:00.000+01:00

* Rice prices are expected to rise by 6% to 7% this month or early next amid a resumption in foreign demand ahead of year-end festivals and lower supply due to climate change. Foreign purchase orders have already resumed, and a flood of orders is anticipated next month to serve the many year-end festivals, said Sumeth Laomoraphorn, the chief operating officer of CP Intertrade. More purchase orders from African markets are also likely after Ramadan. Mr Sumeth said other supporting factors were the impact from global warming and widespread drought that has led Russia to ban wheat exports. Hot, dry weather is also expected to cut the output and export capacity of Ukraine and other European nations. In addition, Mr Sumeth said lower output in Latin American countries, particularly Brazil, due to climate change is also expected to prompt them to increase their rice imports. "The Philippines, which is the world's leading rice importer, is also now facing inadequate rice production and will have to import as much as two million tonnes this year," he said. "If Vietnam, which has already secured massive advance purchase orders, fails to deliver on its commitments, opportunity will return to our grains." Vietnam expects to export 6.5 million tonnes of rice this year, 4 million of which have already been exported. Mr Sumeth said Vietnam's 2% depreciation of the dong last week was unlikely to improve the rice industry's export competitiveness very much. The currency devaluation would instead drive up inflation and interest rates, consequently raising production costs for Vietnamese producers, he said. "Prices for Thai rice have bottomed out and are now starting to improve due largely to shrinking world rice stocks after traders delayed their purchases over the past four or five months," said Mr Sumeth. "The second half will represent an opportunity for Thai rice exports, which are expected to reach 8.5-9 million tonnes." Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, also agreed the outlook was promising for Thai rice in the second half, particularly with several rice-producing countries such as Pakistan, the world's third-largest rice exporter, suffering from floods and other disasters. He said parboiled rice shipments would especially benefit from India's continued ban on non-basmati exports. Thai rice prices, the benchmark for Asia, climbed to their highest level in two months last week as delayed planting has reduced supply. The Thai Rice Exporters Association increased the price of 100% grade-B white rice by 3.7% from a week earlier to $479 a tonne, while 25% broken rice rose 3.2% to $423 a tonne. Thailand this year had exported 4.9 million tonnes of rice as of Aug 18, down by 8.65% year-on-year, for a value of $2.93 billion, down 5.17%. The global rice trade is estimated at 30 million tonnes of milled rice for the 2009-10 season, a slight increase of 2.6% from the previous season.

Pakistan Rice Exports to Fall by 1 Million Tons After Flood Destroys Crop

2010-09-06T09:54:00.002+01:00

Pakistan’s rice exports will decline by 1 million metric tons this year after flooding destroyed as much as 20 percent of the crop, according to a trade group. “We won’t need to import rice,” Malik Jahangir, chairman of the Rice Exporters Association of Pakistan, said in a telephone interview from Lahore today. “Our exports usually average 4.5 million tons and will be about 3.5 million tons this year.” Pakistan produces 6.5 million tons of rice a year.

Vietnam Commerce Ministry set to release rice stockpile

2010-09-06T09:51:00.000+01:00

The Commerce Minister is planning to release its stockpile of more than 500,000 tonnes of rice to both exporters and millers as it foresees a suitable outofharvest season and lower production in Vietnam. A rice trader said the ministry agreed with the private sector's proposal to purchase the government's rice stock. The Foreign Trade Department will shortlist qualified exporters and millers for the purchase, and set a price that includes depreciation costs. The source also said that the authorities believe it is fair to allow both exporters and millers to make offers. "Though it is not open bidding, if offers are selected transparently, there will be no questions," the source said. Both exporters and millers are interested in purchasing all types of rice, including the white, jasmine, Pathum Thani and sticky varieties. The source added that releasing the government's stock would give Thailand a better supply of rice over the next few months even though the harvest season has ended. According to the Thai Rice Exporters Association, the country's total rice export volume dropped by 7.55 per cent to 4.86 million tonnes from January until August 9. The price of jasmine rice in the export market rose from US$1,008 to $1,017 (Bt31,818.50 to Bt32,110) per tonne; while the Pathum Thani variety rose from $779 to $787; 100percent rice from $462 to $479; and sticky rice from $996 to $1,005. A senior official said the ministry was planning to release its rice stockpile to the private sector as well as through governmenttogovernment deals. "We try to gradually reduce our rice stock but we don't want to break it as big news for fear of the price falling. We prefer to see offers that are marked to market cost," the official said, adding that the ministry planned to reduce as much of the stock as it can to make way for the crop that will be harvested in early November. The government is also considering proposals from other countries that want to import Thai rice via government to government deals.

Cambodia planning to sell rice to Philippines

2010-09-06T09:47:00.000+01:00

Cambodia will send an informal trade delegation to the Philippines next month to secure deals for rice exports. The world’s biggest importer has announced that its rice production dropped more than 10 percent in the first six months compared with last year. Sun Kunthor, vice chairman of the Supreme National Economic Council, said the Cambodian delegation would seek to leverage the Philippines’ growing demand for the staple crop. “We will go to the Philippines soon, and we hope the Philippines will buy rice from Cambodia because the country’s rice demand is big,” he said. Sun Kunthor was among those involved in drafting the Kingdom’s new policies aimed at boosting rice production and exports. Philippine production of the food staple has fallen 10.2 percent in the first half of the year, compared with a year earlier, Manila announced Tuesday. Officials from the archipelago said dry weather caused by El Niño resulted in parched crops, and may require imports to make up for the fall in production. The Philippines is considering plans to boost imports, which have already hit a record 2.47 million metric tonnes this year. A formal decision would be made by Friday next week, said Philippines Agriculture Secretary Proceso Alcala. Production is expected to decrease further. Bureau of Agricultural Statistics Director Romeo Recide said Tuesday that output may fall another 25.6 percent in the third quarter, a dramatic increase from the 3.7 percent slump forecast in May. However, he said that production could rebound by 30.3 percent in the last three months of the year. Prime Minister Hun Sen highlighted Cambodia’s plan to increasingly tap the Philippine market when he unveiled the Kingdom’s new rice policy earlier this week. Government advisor in charge of trade promotion Sok Siphana will lead a delegation to the Philippines for “informal negotiations”, with the intent to later enter into formal discussion over shipments, he said Tuesday. “The government is adopting policies to turn to overseas markets in order to boost rice exports because in the future, rice exports may become a key sector for the leapfrogging of Cambodia’s economic growth,” Hun Sen said Tuesday. A source close to the prime minister, who asked not to be named, said the plan included a trade delegation expected to visit the Philippines next month. The prime minister said informal exploration of the Philippine rice market was necessary to better understand its needs. “We want to know what kind of rice the markets need so that we are able to provide them supply which meets their requirements,” he said. Last month, Philippine agribusiness investment officer Pablito Villegas who took part in his country’s first trade mission to Cambodia in July, told Philippine news outlet GMA News TV that domestic buyers were looking to purchase between 200,000 and 300,000 tonnes of Cambodian rice. According to the Kingdom’s new rice policy, the government is seeking to export at least 1 million tonnes of rice to international markets by 2015. The news also comes as rice exports from Pakistan, the world’s third-largest exporter, are expected to fall after extensive floods damaged crops in areas accounting for 90 percent of agricultural output. Pakistan was expected to export 3.8 million tonnes of rice this year, more than 10 percent of the estimated global shipments of 30.4 million tonnes, according to the Food and Agriculture Organisation, which made the forecast in July, before the flooding. Sok Siphana could not be reached for comment yesterday.

Vietnam to ban rice export for some months

2010-08-23T06:37:00.000+01:00

I have just heard the following: Vietnamese will start banning their export of white rice from October shipment onward. Until when I'm not sure. At least till the end of this year, supposedbly.

Egypt cuts rice crop area by nearly half

2010-08-20T15:21:00.003+01:00

Egypt cut by almost half the amount of land it used to sow rice in 2010 versus the previous year, saving the country 5-6 billion cubic metres of water, the official state news agency MENA said on Thursday. The amount of land on which rice was grown was reduced to 1.2 million feddans (1.2 million acres) from 2.2 million last year, MENA said, citing the Water Resources and Irrigation Minister Mohamed Nasreddin Allam. Egypt, the Arab world's most populous nation, wants to reduce its domestic production of the water-intensive crop. Bread is the main staple for most Egyptians, and Egypt imports more than half its wheat needs. An official was quoted as saying this month that Egypt wanted to achieve 70 percent wheat sufficiency. But rice is still a popular staple food. Climate change threatens a fragile farm sector in Egypt and population growth may outstrip water resources as early as 2017. Under a 1929 agreement with the Nile Basin countries, Egypt is entitled to 55.5 billion cubic metres a year, the lion's share of the Nile's total flow of around 84 billion cubic metres. The North African country has been in dispute with other Nile Basin countries eager for a greater share of river water to support power generation projects and agricultural growth.

Pakistan Non-basmati rice production to fall almost 20%

2010-08-20T15:21:00.000+01:00

Production of non-basmati rice will fall by about 15 to 20 per cent from previous estimates, estimate rice exporters. “We had expected nonbasmati rice cultivation to yield about 4.5 million tons this year but due to flooding in various parts of Sindh, where much of this kind of rice is grown, we are now expecting up to 800,000 tons to be lost,” said Chairman of Rice Exporters Association of Pakistan (Reap), Malik Jahangir, on Wednesday. Jahangir explained that Larkana, Jacobabad, Shikarpur and Dadu districts are the main areas in Sindh where non-basmati rice is cultivated. Large parts of these districts have been flooded in recent days. Irrigation officials have also warned that fresh flooding may also be witnessed in many of these areas. Many of the crops that were cultivated in these areas have been destroyed. Agricultural experts also fear that gushing waters have washed away the nutrient- rich top soil of many agricultural areas. They say that farmers may not be able to achieve high yields and in some of the worst affected areas, cultivate crops at all for the next few years. Cultivation of high-quality basmati rice has also been affected although not as badly as non-basmati varieties. “Most of the areas where basmati is grown are in Punjab and have not been affected significantly by the floods,” commented the Reap chairman. Meanwhile, prices of rice have increased in local markets during Ramazan. Supplies have been affected due to flooding, Reap officials said, adding that transportation from fields to mills and then to markets is difficult and more costly because of the flooding. Jahangir asserted that because of supply constraints, the price of basmati rice has increased by Rs10 to Rs70 per kilogramme in wholesale markets while rates of nonbasmati rice have risen by Rs5 per kilogramme. Last month, the United Nation’s Food and Agriculture Organisation (FAO) issued a report that said Pakistan would lead an increase in global rice exports. The FAO report had also predicted the country’s paddy production for 2010 to be about 10.2 million tons, 0.1 million tons higher than the previous year. The report had cited that non-basmati varieties of rice are leading export growth for the country. This means that downgraded estimates for production of non-basmati rice will also likely hurt the country’s export prospects. Experts point out that earlier in the year, non-availability of water had been a cause of concern for farmers. They say that while production of basmati rice will probably not suffer much, achieving record exports may not be a feat that can be accomplished, at least not this year.

India firm makes low offer in Bangladesh rice tender

2010-08-20T15:18:00.000+01:00

Indian firm M. Sons Group made the lowest offer of $477.51 a tonne, including cost and freight, in a Bangladesh tender to buy 30,000 tonnes of non-basmati parboiled rice that opened on Thursday, a food official said. The tender was issued by the state grains buyer early this month, and shipment is within 40 days of signing the contract, which will take place after the cabinet committee's approval. The offer was $33.51 per tonne higher than the country's last tender that opened last week, in which the same firm submitted the lowest offer of $444 a tonne to supply a similar quantity of parboiled rice. The highest offer was $575 a tonne, made by the Thai firm Daow, the food official said. The government has doubled its planned rice imports for this year to 600,000 tonnes after wheat prices spiked due to export curbs in the drought-ravaged Black Sea region. Deals to ship around 345,000 tonnes of Black Sea wheat to Bangladesh have been cancelled so far. Chicago wheat futures hit a two-year high after Russia barred shipments in early August, and since then prices have fallen by more than 20 percent but are still well above levels before the surge. On Thursday, the Bangladesh state grains buyer issued one new tender to import 30,000 tonnes of parboiled rice and another to buy 50,000 tonnes of wheat, both with an offer deadline of Aug. 30. Bangladesh, the world's fourth-biggest rice producer, harvested a record high rice crop of more than 34.45 million tonnes in the year to June, but the government failed to procure enough rice locally. The government's food reserves have come under added pressure as it has started selling rice at subsidised rates to help the poor during the Muslim fasting month Ramadan and to contain food inflation, now running at nearly 11 percent. Besides issuing tenders, the government is also trying to buy grains through state-to-state deals to build buffer stocks, which stand at 700,000 tonnes against a target of 1.5 million tonnes. Bangladesh has signed a contract to import 100,000 tonnes of 15 percent broken rice with Vietnam's top rice exporter, Vinafood 2, at $389 per tonne, while negotiating to buy more rice from there, food officials said. India also has allowed the export of 300,000 tonnes of non-basmati rice and 200,000 tonnes of wheat to Bangladesh. Food security is a major concern for the government as nearly 38 percent of the country's population of more than 150 million still live on less $1 a day.

Thailand not worried by Vietnam Dong devaluation

2010-08-20T15:05:00.000+01:00

The devaluation of Vietnam’s dong by another two per cent early this week will not have any appreciable impact on Thailand’s rice exports, Commerce Minister Porntiva Nakasai said on Thursday. “Vietnam is a major competitor for rice exports, but our neighbour now has no more rice for sale,” Mrs Porntiva said. The ministry would keep a close watch on the situation, particularly on the value of baht. The private sector had repeatedly expressed concern about its appreciation, she said. The private sector was worried that the baht might strengthens to 30 to the US dollar, a rise of seven to eight per cent. Businesses warned that such an appreciation would affect the country’s exports in the fourth quarter of the year, she said. The minister was confident that the Bank of Thailand was capable of keeping the baht value at a suitable level and that exports would grow by 20 per cent this year, as targeted. Dusit Nonthanakorn, chairman of the Thai Chamber of Commerce, said there is a possibility Vietnam would again devalue the dong the near future, although this would not have much impact on Thailand’s exports. “But the government must keep a close watch on the situation and try to stabilise the baht value at levels in line with the currencies of other Asian countries. By doing this, manufacturers’ trade competitiveness will not suffer,” Mr Dusit said.