21st July, 2014 Daily Global Rice E-Newsletter by Riceplus Magazine

Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.
com
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21
st
July, 2014

TOP Contents - Tailored for YOU
Latest News Headlines
Rice grower tapping into sustainable straw bale home
building trend
Rice farmers should watch for rice borers, stinkbugs
Feature: Multi nutrient rice kernels can fill gaps in rice
fortification
PhilRice launches new program for farmers
22 states now grow rice in Nigeria Minister Says no need
for importation
Pakistan working to remove obstacles in Iran barter trade
Rice Research Benefits Local Farmers
Higher R&D spend may help PHL in Asean integration bid
Thailand to reclaim top rice exporter spot after poor Indian
rains
Italy demands fairer rice deal
PH rice output seen hitting record high
Korea asks trade partners for cooperation in rice tariff talks
Price for rice shoots up as drought hits other states
Rice inspections continue in Nakhon Sawan
Nagpur Foodgrain Prices - APMC & Open Market-July 21
India pitches high agri growth despite poor rains
Late monsoon starts farmer's "journey to hell"
CODEX Approves Inorganic Arsenic Maximum Level for Rice

Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com

News Detil
Rice grower tapping into sustainable straw bale home building trend
ABC Rural
By Alex Blucher
Updated Mon 21 Jul 2014, 10:55am AEST
PHOTO: Riverina rice grower, Trent Gardiner, supplies straw to sustainable builder, Sam Vivers, both in a straw bale
home in being built in Mudgee. (Alex Blucher)
RELATED STORY: Straw bale houses: More than fairy tales.
MAP: Mudgee 2850
Building homes using mud and straw began at the start of last century on the prairies in the mid-west of
America.
But as a partnership between a central west builder and a
Riverina rice grower in New South Wales shows, it's
seeing a resurgence in rural Australia.Mudgee-based
builder, Sam Vivers, says that this isn't only because of a
greater awareness of environmental sustainability among
home owners."One thing that is definitely pushing
people towards it is rising energy costs, these houses are
much cheaper to run."We've just had one of our houses
rated at 8.5 stars out of 10 on the energy rating system,
they are very efficient to run."They are very warm in
winter and cool in summer," he said.
AUDIO: Rice grower tapping into rising demand for straw bale homes (ABC Rural)
The straw bale home building costs are comparable to a double brick home.Sam Vivers builds a complete house
from start to finish for between $2,000 and $2,500 per square metre.The builder says that the best straw to use is
rice straw."We find it is a little bit more robust than wheat straw and we have a constant supply from a supplier
who gets it from southern NSW. "Even though we pay the cost of transport and embodied energy in that
transport, we can get a reliable, repeatable product any time of the year," Mr Vivers says. That supplier is Trent
Gardiner, who grows rice, wheat, barley and oats in the Riverina.
He supplies national parks and ski parks, and electricity distributors for revegetation purposes, as well as the
sustainable building sector.The Coleambally grower says that he is the only farmer he knows that bales straw
specifically for the building industry."The house building section started about 15 years ago as something that


was viable and about six or seven years ago started to get a head of steam.Mr Gardiner says that it's become a
very important part of his business."It started as a sideline, 2000 bales a year, now it's around about a third of
our income comes from just the straw, which is the by-product of our main crops," he said.The income from
rice straw has kept him afloat during tough times."We just went through the millennium drought through the
early 2000's, there was probably eight years there where we relied on straw as our main income, so it's been
fantastic for us," Mr Gardiner said.
Topics: sustainable-and-alternative-farming, sustainable-living, house-and-home, building-and-
construction,rice, mudgee-2850, coleambally-2707, orange-2800

Rice farmers should watch for rice borers, stinkbugs
J ul. 21, 2014 |
BATON ROUGE Louisiana rice farmers should be on the lookout for Mexican rice borers and stinkbugs, according to
LSU AgCenter entomologist Mike Stout.
The Mexican rice borer was found in Louisiana in 2008 and
is spreading, Stout said. Last year, it was found in Acadia
Parish and this year, in Evangeline Parish. The borers have
long been established in Texas, and as that population has
built up, they have been moving eastward.The borers lay
eggs on rice plants, and the larvae bore into the plant. There
they can feed on the stem but are protected from insecticide
applications. They are difficult to scout for, and there is only
a narrow window of time that insecticides are effective.Its
too early to tell how bad damage from borers in Louisiana
will be this year, Stout said, but their growing geographic footprint is concerning.The big question right now is if the
Mexican rice borer will be a major problem for us, Stout said. Its been a problem for Texas rice farmers, but here in
Louisiana we have similar borers that have been here for more than 100 years and dont cause consistent problems.
Stout said DuPonts Dermacor seed treatment is effective in reducing problems with rice borers. For farmers that didnt
plant seeds treated with Dermacor, the best thing they can do now is watch for damage, scout their fields and treat with a
pyrethroid insecticide if they find rice borer adults, egg masses or larvae. As the season progresses, stinkbugs will arrive.


Stout recommends scouting fields with a sweep net once rice heads develop. There are a number of insecticides that
effectively control stinkbugs.
The earlier part of this rice season saw increased numbers of fall armyworms compared to past years, Stout said. Its not
clear why, and that increase is probably not a trend, he said.The rice water weevil, another early-season pest that is
consistently a major yield-reducer, emerged a little later this year because of the cold winter. The weevil population
remained about the same as in previous years. The lesson is that you shouldnt be deceived if theyre late, Stout said.
Similarly, Stout said he has seen fewer stinkbugs so far this year. They could be late or their population could be down, he
said, but it is still important for farmers to be vigilant, scout their fields and take action if needed.
Image: This photo provided by the LSU Agricultural Center shows a Mexican rice borer on a sugarcane leaf. / File pho

Feature: Multi nutrient rice kernels can fill gaps in rice fortification
Sunday 20th of July 2014
MANILA, July 20 (PIA) - Rice fortification in the Philippines began in the early 1940s.

It was conceptualized by Dr. R.R. Williams, who incidentally also discovered vitamin B1 or thiamine.Fortifying
rice by adding thiamin, niacin, and iron was implemented in the country to alleviate the problem of beriberi or
thiamine deficiency.For instance, after a larger pilot-scale test of fortified rice in Bataan, mortality from beriberi
was significantly reduced in the covered areas. In the following year, mortality from beri-beri was virtually
eliminated in covered areas in Bataan.

The success of the rice enrichment experiment in Bataan led to the enactment of the Rice Enrichment Law in
1952, which required all rice millers and wholesalers to enrich rice. Implementing the law had major setbacks,
including non-compliance by rice millers to fortify rice.Since rice millers and traders constitute a formidable
sector in the economic and political structure of the country, enforcing the fortification law wavered.Another
hindrance to implementing the law was the high cost of monitoring for compliance throughout the
country.Interest in rice fortification was revived in the early 1980s to help address micronutrient deficiencies.
The Food and Nutrition Research Institute-Department of Science and Technology (FNRI-DOST), has been at
the forefront of fortification technology developments since then in support to the Philippine Food Fortification
Law of 2000 or Republic Act 8976.

The FNRI, for its part, has made significant researches on rice fortification using extrusion technology.The
FNRI developed an iron rice premix designed to alleviate the persisting iron deficiency anemia (IDA) in the
country.Efficacy studies and market trials of the FNRI shows that feeding with iron fortified rice was cost
effective and efficient in lowering IDA prevalence.The institute also developed rice premix enriched with iron
and zinc.The multi-nutrient extruded rice kernels (MNERK) can help reduce iron deficiency anemia (IDA) and


the emerging zinc deficiency in the country.The FNRI identified the optimum formula using a statistical tool
that revealed acceptable sensory response from trained taste panelists.Results of the MNERK study will be the
basis for efficacy studies, market trial, and scale-up productions.Studies are being conducted on the MNERK to
estimate the shelf-life of the premix, determine the retention of the nutrients after cooking and investigate the
possibility of incorporating vitamins and other minerals to the kernel.

For more information on food and nutrition,
contact: Dr. Mario V. Capanzana, Director, Food and Nutrition Research Institute, Department of Science and
Technology, General Santos Avenue, Bicutan, Taguig City; Tel/Fax Num: 8372934 and 8373164;
email:mvc@fnri.dost.gov.ph, mar_v_c@yahoo.com; FNRI-DOST website:http://www.fnri.dost.gov.ph. (Abbie
L. Padrones, FNRI-DOST S & T Media Service/PIA-Caraga)

PhilRice launches new program for farmers

By Ferdie G. Domingo | Jul. 21, 2014 at 12:01am
MUOZ CITY, Nueva EcijaThe Philippine Rice Research Institute (PhilRice) has launched a Rural
Transformation Movement, which was intended to provide farmers easy access to technologies that are
sustainable and ecologically efficient, a senior official said.Dr. Eduardo Quilang, PhilRice deputy executive
director for development, said that under the movement farmers will be encouraged to optimize farm space
through crop diversification and to integrate agri-business with rice farming.Our nine stations will serve as
service provider to help farmers establish farm enterprises, Quilang said.
One of the two campaigns to be waged under the movement is dubbed Be RICEponsible. It is an offshoot of
the National Year of Rice 2013.The RICEponsible campaign was an appeal to consumers not to waste rice, to
eat brown rice and other staples, and to value the hard work of farmers. Studies showed that despite continued
urbanization, 2.8 billion people will continue to live in rural areas by 2050.Rural Transformation Movement in
the Philippines supports the thrust of the government to alleviate poverty, food security, higher income, climate
change resilience, and employment creation.

22 states now grow rice in Nigeria Minister Says no need for importation
21.Jul.2014 DISQUS_COMMENTS Collins Nnabuife -Abuja
Minister of Agriculture and Rural Development, Dr Akinwumi Adesina, has said with the new drive in rice
production and the amount of arable rice land in the country, Nigeria has the capacity to produce rice sufficient
for its populace.Adesina, who made this known at the weekend, while chatting with newsmen, said rice could
be grown in all the states in Nigeria, except for one state, adding that the importation status on rice had


continued to decrease. When we started, only 10 states grew rice, but now, 22 states are growing rice. The total
gross of value of rice added to the domestic economy over the last three years was about N750 billion, he said.
He added that the government had increased the area of cultivation in rice by 1.9 million hectares and farmers in
Nigeria are getting five to six tonnes per hectare yield with the new variety of rice introduced recently in the
country.Adesina also said currently, farmers and small scale processors had net income worth N407 billion
from the current transformation in the rice sub-sector.So, you can see that we are creating value for the
domestic economy, because we are engaging people to work, we are also increasing the GDP of those
states.The minister also revealed that importers now get empty bags of imported rice, give it to the Nigerian
rice millers to fill and then sell at the cost of the foreign rice.Speaking on the new rice policy, Adesina said that
the policy, which raised tariff on imported rice, was done to give Nigerian farmers fighting chance to increase
their production.

He, therefore said the new rice policy, which has been relaxed gave rise to the establishment of small scale
millers all over the country, adding that it really increased production.Commenting on mechanisation, Adesina
said that initially, government used to import tractors, but now, the private sector have established a N20 billion
200 agricultural equipment hiring centres across the federation.The idea behind the establishment according to
the Minister was that the private sectors will bring in the tractors, while the government will provide
mechanisation service support
Pakistan working to remove obstacles in Iran barter trade
Economic Desk
On Line: 20 July 2014 15:19

Pakistan is vigorously working to clear the obstacles in barter trade with Iran, as Islamabad is all set to clear the
power outstanding dues as well as ready to supply rice and wheat to Tehran on the account of commodity
exchange.Pakistan wants to clear all pending issues with Iran before the Joint Economic Council (JEC), which
is scheduled to meet this quarter. Therefore, an inter-ministerial committee headed by Finance Minister Senator
Ishaq Dar has met twice in last two weeks to resolve the pending issues.
An inter-ministerial committee met on Thursday on facilitating Pakistan-Iran trade, within the ambit of UN
sanctions. Finance Secretary Dr. Waqar Masood briefed the participants on the decisions made in the last
meeting held on July 5, 2014 and progress made so far. He informed that in consultation with all the
stakeholders, there are avenues that can be followed for trading with Iran on non-prescribed items and through


non-sanctioned entities. He said that NTDC is willing to clear outstanding dues of Iran on account of supply of
electricity to border areas and in this regard, Commerce Ministry is taking appropriate steps for commodity
exchange. It was further informed that Iran has already laid down transmission lines up to their border for
possible power supply to Gwadar and adjoining towns.
Secretary Commerce informed the Finance Minister that consultations are already at advanced stage for supply
of Basmati rice and wheat to Iran on account of commodity exchange. He also informed that Iran has recently
lifted ban on mango import from Pakistan and the gesture has set the pitch for enhanced barter trade. Finance
Minister directed the concerned Ministries and Departments to resolve outstanding issues immediately and
remove impediments in order to exploit full potential of bilateral trade. He mentioned about putting on fast
track all the pending issues for resolution in or before the Joint Economic Commission to be held soon. The
Finance Minister said that during the Prime Ministers visit to Iran, both the sides had reaffirmed their
commitment that while remaining within the ambit of UN sanctions, mutual trade and cooperation will be
enhanced with barter trade and commodities exchange mechanism.
He said that we need to build mutual confidence to overcome the impediments in barter trade and commodity
exchanges facilities enabling the two countries to benefit from their proximity and neighbourhood. Finance
Secretary Dr Waqar Masood, Governor State Bank Ashraf Wathra, Foreign Secretary, Aizaz Ahmed Chaudhry,
Shahzad Arbab, Commerce Secretary, Rana Assad Amin, Advisor to Finance Ministry Additional Finance
Secretary/SA to Finance Minister, Shahid Mahmood and senior officials of the Finance Ministry.
Rice Research Benefits Local Farmers
Wesley Williams

07/17/2014 04:38 PM -07/17/2014 07:12
PMRICHLAND PARISH -- Louisiana is one of the top rice producing
states in the country. On Thursday morning, north Louisiana rice farmers
gathered to discuss what's the crops outlook and new varieties that are
being grown.Rice researchers based out of Crowley, LA met with dozens
of local farmers in Richland Parish at a research plot."We're evaluating
different rice varieties in experimental lines that might be released as new
rice varieties," explained Steve Linscombe, a Rice Breeder with the Rice
Research Station."[These are] new varieties which will help us feed the


population better by using less water and fertilization," Damian Bollich commented.Damian Bollich has been
farming for over 30 years and says meetings like this are essential for the rice industry. He says the research has
taught him about different disease prevention and more efficient fertilization practices.
"It's just very, very beneficial for us to have these plots up here," mentioned Bollich. "Some of them are a little
bit different than what we have. They have different varieties from other states also that we can look at."Six
states produce 99% of the nation's rice: Arkansas, California, Louisiana, Mississippi, Missouri, and Texas;
Arkansas is the largest producer and Louisiana is the 3rd largest producer. Local farmers say they have a good
crop in the field this year, throughout the state."Generally across the rice belt most of the crop is looking good,"
said Reece Langley, Vice President for Government Affairs with the USA Rice Federation. "As we heard here
today at the field day, some of it is a little bit late compared to a normal year. But, it certainly still seems to have
good yield potential."Still, some farmers say they'd like to see the rice price a little higher.

"The price potential for medium grain because of some of the dynamics in the market is better than long grain,"
Linscombe stated. "But, we'd like to see the price of long grain come up a little bit."But the increase would have
little to no affect on prices on store shelves for consumer.Earlier this year, the Agricultural Act of 2014 was
passed. And now the Department of Agriculture is in the process of implementing new policies and programs
for agricultural producers and landowners thanks to the new farm bill.The industry is united to find solutions to
any challenges they will face during implementation. But, Langley says the rice industry is nervous about the
regulation of water that's used on the farm.
"There are a lot of regulatory issues that we are seeing coming out of the EPA," Langley said. "Things that deal
with how waters are treated under the clean water act."Langley flew into Louisiana earlier this week to be a part
of this rice field day so that he could educate growers about the new options that are available to them as they
sign up for new programs during the implementation phase.Growers will have until early 2015 to signup for
new programs based on the new farm bill policies.
Higher R&D spend may help PHL in Asean integration bid

Category: Agri-Commodities
20 Jul 2014
Written by Alladin S. Die
THE Philippines can ably compete in the impending integration of the economies of the Association of the Southeast
Asian Nations (Asean) if the government pours more money for research and development (R&D), government rice


researchers said.The country has to sharply scale up investments in R&D to compete in the Asean Economic
Community, the Philippines Rice Research Institute (PhilRice) said in a statement over the weekend. The
government-funded group cited a recent study by three University of the Philippines professors as the basis of
their call.If increased investment in R&D is achieved along with other ongoing policies and institutional
reforms, the countrys economy could in time be on a stronger platform to hurdle Asean challenges. This
will [reduce the blow] in [the] agricultural and manufacturing sectors, PhilRice quoted the authors of the
study as saying.
In their study Ernesto Pernia, Ramon Clarete and Gisela Padilla-Concepcion noted: Economic growth can be
effectively sustained by spending for technological innovation that results in new processes, products
and markets, and innovation in turn can come about from R&D made possible by economic growth.In
their paper titled the Role of Science, Technology and Research in Economic Development, the top
academicians said substantial investments in R&D are the drivers of sustained rapid growth and poverty
reduction of East Asian economies.They cited these economies as Taiwan, South Korea and Hong Kong,
whose pattern is also followed by the Philippiness Asean co-founding members particularly Singapore,
Malaysia, Thailand and Indonesia.Underinvestment in Philippine R&D, they said, could neither meet the
countrys present requirements nor the challenges posed by the Asean integration push.
PhilRice also cited an earlier study of current National Economic and Development Authority Director
General Arsenio M. Balisacan, which says that in agriculture, R&D contributes to 25-percent yield growth in
rice and that the country needs to increase its public spending on rice R&D.An attached agency of the
Department of Agriculture, PhilRice also noted the rather slow-paced improvement in public spending on
R&D in the Philippines relative to other countries from 1996 to 2008.PhilRice cited as bases the 2013
report of the International Food Policy Research Institute based in Washington, D.C., and the Bangkok-
based Asia-Pacific Association of Agricultural Research Institutions.Vietnam is reported to have increased
its public spending on R&D by over 270 percent, from $23 million to $86 million while the Philippiness
spending showed only a 3- percent increase from $129 million to $133 million.
Alladin S. Dieg

Thailand to reclaim top rice exporter spot after poor Indian rains
BY RAJENDRA JADHAV AND APORNRATH PHOONPHONGPHIPHAT
MUMBAI/BANGKOK Mon Jul 21, 2014 8:35am IST
CREDIT: REUTERS/STRINGER
(Reuters) - Thailand is set to reclaim its status as the world's top rice exporter as weak monsoon rains curb
India's crop, helping the Southeast Asian country's new military government offload bulging stockpiles.Fewer
Indian exports would allow Bangkok to win better prices for the grain that it has been selling at a huge discount,
curbing losses on the stocks built up under a costly state intervention scheme."It is a good opportunity for


Thailand to manage its huge stocks at competitive prices," said Kiattisak Kallayasirivat, managing-director of
Bangkok-based Novel Agritrading Co Ltd.Thai rice prices flipped to a discount versus Vietnam grades for the
first time in decades earlier this year as the previous Yingluck Shinawatra-led government aggressively sold
from stockpiles.
Prices have since risen to par or premiums after
the junta stopped sales to inspect the quality of
the rice pile.Thailand plans to export 500,000-
600,000 tonnes of rice a month from August. At
that rate, it will take about three years to sell the
18 million tonnes built under the rice-buying
scheme introduced by the Yingluck government
that was ousted in May. "Thailand will be able to
fetch higher prices now that we have concerns
over supplies from India and better demand," a
Singapore-based trader said. "The increase in price will reduce their losses to some extent."The country sold 5
percent broken rice from its stocks for $360 per tonne, on a free on board (FOB) basis, earlier this year but now
a similar variety of old-crop rice is being offered at around $395 per tonne.
This, however, is still short of the estimated cost of 22,000 baht ($680) per tonne that the ousted government
incurred on buying paddy from farmers, milling and storage.With poor rains cutting Indian supply, Thai rice
exports could hit 10 million tonnes this year, near a record 10.6 million tonnes sold in 2011, said Duangporn
Rodphaya, director general of Thai Commerce Ministry's Department of Foreign Trade.India toppled Thailand
two years ago to become the world's top rice exporter as the intervention scheme priced Thai rice out of the
export market and as Delhi lifted a four-year ban on non-basmati rice sales in 2011 to trim stocks.
But India's output could be hit this year as rains, crucial for the summer-sown rice crop, were 40 percent below
average in the first six weeks of the June-September monsoon season.Indian exports have already been slowing
due to aggressive sales by Thailand and Vietnam, said B.V. Krishna Rao, managing director at Pattabhi Agro
Foods Pvt Ltd, a leading non-basmati rice exporter in India.In the June quarter, India exported 1 million tonnes
of non-basmati rice, dealers estimated, down almost 30 percent on a year earlier. The country is offering 5
percent broken rice at around $425 per tonne FOB, up from $410-$415 last month.Indian farmers had planted
paddy on 8.64 million hectares as on July 11, compared to 11 million hectares a year ago.In the year ended
March 31, India exported a record 10.86 million tonnes rice. Rao from Pattabhi Agro estimates overseas sales


will drop to 8 million tonnes in 2014/15."Certainly Thai exporters will gain from India's loss. The quantum
depends on how monsoon pans out in next two months," said a New Delhi-based dealer with a global trading
firm.
($1 = 32.1700 Thai Baht)
(Additional reporting by Naveen Thukral in SINGAPORE; Editing by Himani Sarkar)
Photo: Labourers plant saplings in a paddy field on the outskirts of Bhubaneswar July 19, 2014.

Italy demands fairer rice deal
Mon, 21 July 2014
Eddie Morton
Italy has demanded that the European Union restrict Cambodias
duty-free import status, as concerns over the survival of that
countrys rice sector appear to be reaching a fever
pitch.According to rice industry website Oryza, the Italian
government has officially submitted a request to the EU calling
for a new safeguard clause which, if approved, could end EU
nations zero-tariff treatment of rice imports from
Cambodia.Abnormal increase of import is reducing quotations of
European rice, bringing it under production costs level; this is
strongly damaging our farmers and millers, Italys vice minister for economic development was quoted as
saying in Oryzas report, posted late last week.

Under the Everything But Arms (EBA) agreement, which is granted only to developing countries, Cambodia
pays zero tax on all non-weapon exports to EU member states, including rice.The official complaint came a
month after rice industry website risoitaliano.eu leaked excerpts from a dossier prepared by the Italian
government. The document claims that the special treatment given to Cambodia by the EU triggered a 22 per
cent decline in annual rice plantings in Italy.The dossier adds that, with Italian rice prices at about $870 per
tonne and Cambodian prices at $590 per tonne, Italian producers are unable to compete. The dossier requests
that the EU impose a tariff of $230 per tonne on Cambodian rice imports to level the playing field.


Earlier this month, an Italian agriculture collective of farmers, including representatives from the Italian
Association of Rice Industries, protested in some of Italys largest rice-growing regions.EU Ambassador to
Cambodia Jean-Francois Cautain yesterday said he was awaiting information from EU headquarters in Brussels
and was unable to comment on Italys complaint.Cambodian Rice Federation (CRF) president Sok Puthyvuth
said there were mixed feelings in the Cambodian rice industry over the seriousness of Italys claims and that the
EU had repeatedly assured the rice body of the future of Cambodias EBA status.
We feel we still have the support from the EU. Some say we need to start bilateral talks with Italy; some say
not to worry, Puthyvuth said, adding that he hoped to commence communications with the Italian government
as early as this week.We want to solve this problem but there needs to be better communication and there
needs to be some compromise, he said.Ken Ratha, spokesman for the Ministry of Commerce, said the
government was waiting for the CRF to clarify Italys complaint before issuing an official response.Cambodian
rice exports to the EU reached 380,000 tonnes at the end of 2013, up from 200,000 tonnes at the end of 2012.

Photo: An employee works at a rice shop in Phnom Penh Italy is arguing that its locally grown rice is unable to compete
against tax-free imports from Cambodia. Eli Meixler
PH rice output seen hitting record high
By Ronnel W. Domingo |Philippine Daily Inquirer
12:07 am | Monday, July 21st, 2014
Philippine rice output in the 2014-2015 marketing season that started this month is expected to reach yet
another record volume, even as the global production growth forecast was trimmed due to the looming El Nio
phenomenon.In its latest rice market report, the Food and Agriculture Organization (FAO) said it foresees
production in the Philippines to expand by 1 percent to 19 million tons of paddy rice, equivalent to 12.4 million
tons when milled.The FAO said this forecast was largely based on expectations of continued expansion of farm
areas planted to rice, driven by high prices and helped by government support to the domestic sector.The
forecast remains tentative, however, as the season is still at early stages in the country, having also opened this
year under the threat of possible El Nio-induced weather anomalies, the FAO said.Following international
market convention, the United Nations agency makes assessments and forecasts within a season that starts in
July and ends in June the following year.

The FAO cited a warning from the Philippine Atmospheric, Geophysical and Astronomical Services
Administration (Pagasa), which said that the last quarter of 2014 could see below-average rains, especially over
Luzon and Visayas and more generally in the month of December.Weather concerns have already prompted
officials to announce a set of measures to mitigate possible negative consequences on crop production, it


said.As for the just-ended 2013-2014 season, the FAO noted that the government pegged output at a record
18.75 million tons of palay or 12.3 million tons of milled ricewhich was 3 percent higher than the previous
season.Globally, the FAO eased its 2014-2015 output growth forecast to 0.52 percent from 0.54 percent, citing
slow arrival of seasonal rains as well as the threat of a long dry spell.The agency now expects worldwide output
at 750.9 million tons of paddy rice, which is 120,000 tons less than the previous projection.For Asia alone,
output is now expected to grow by only 0.16 percent to 679 million tons, which will still depend on whether
seasonal rains deliver. The previous forecast pencilled in a growth of 0.27 percent.

Korea asks trade partners for cooperation in rice tariff talks

Published : 2014-07-20 10:56
Updated : 2014-07-20 10:56
South Korea has asked its major trade partners including China and the United States for cooperation in its
upcoming negotiations to set tariff rates on its rice imports, the trade ministry said Sunday.South Korea on
Friday announced that it will open its rice market to tariffed imports, ending a 20-year waiver that had capped
the import of the grain to a set minimum. It now has to negotiate the tariff rates with the World Trade
Organization before the market opening from Jan. 1 next year.

In a bid to discuss cooperation in future talks, South Korea's Trade Minister Yoon Sang-jick held a series of
bilateral meetings with his counterparts from the U.S., China, India, Canada, Australia and France on the
sidelines of a meeting of trade ministers from the Group of 20 nations held on Saturday in Sydney, the ministry
said. During the meetings, Yoon explained his government's policy on the tariffication of the rice market and
asked his counterparts to support South Korea in the negotiations with the WTO, the ministry said.In addition to
the rice market, Yoon also discussed other pending economic issues with the trade ministers, the ministry
said. Yoon and his counterparts from Australia and Canada agreed to cooperate to bring their bilateral free trade
agreements into force. In talks with his Indian counterparts, Yoon discussed follow-up measures to honor
agreements reached at the South Korea-India summit in January, the ministry said. (Yonhap)

Price for rice shoots up as drought hits other states
PETCHANET PRATRUANGKRAI
THE NATION July 21, 2014 1:00 am
THE PRICE of Thai rice is expected to climb steadily in the next few months, mainly due to the appreciation of the baht,
the government's suspension of its rice releases during its inventory audit and concern over drought in many
countries.Thailand has a strong possibility of returning to its status as the world's largest rice exporter this year after its
export volume in the first half of the year surpassed India's.According to the Thai Rice Exporters Association, Thai rice


shipments abroad reached 5.2 million tonnes, compared with India's 4.5 million tonnes and Vietnam's 3.2 million
tonnes.The association believes Thailand could export up to 9 million tonnes of rice this year.
From July 9-16, the price of 100-per-cent grade B Thai white rice went up from US$432 per tonne to $443. The price of
benchmark 5-per-cent Thai white rice rose from $410 per tonne to $427, compared to $410 for Vietnamese rice.
The price of jasmine rice from the 2013/14 harvest increased from $1,052 per tonne to $1,073. The price of parboiled rice
rose from $435 per tonne to $449.

The sharp rise within a week was due mainly to the stronger baht, increase in the domestic price during the off-harvest
season and suspended sales by the government, said Chookiat Ophaswongse, honorary president of the association.The
baht has strengthened from 32.4 against the US dollar to 31.90 within a week. This caused the price of Thai rice in dollars
to rise.
The price of Thai rice would tend to rise slightly in the next few months because the market is closely monitoring whether
the Thai government would soon start selling rice from its stocks again.Pramoth Vanichanont, an adviser to both the
chamber's rice strategy working committee and the Thai Rice Farmers Association, sees the price of Thai rice heading up
in the next few months due to pressure from domestic prices.In the past week, paddy white rice jumped from Bt7,000 to
Bt8,500 a tonne, and it could hit Bt9,000 soon, he said.
"The rising drought problem in many countries will increase demand for rice imports in many countries. India could slow
down its rice exports this year as it is also worried about the drought crisis, which could encourage Thailand to export
more rice, as stocks are high this year," he said. The price of Thai rice is expected to increase $10-15 per tonne in the next
few months while the market waits for the government to reduce its stored rice.Duangporn Rodphaya, acting director-
general of the Foreign Trade Department, said the government is considering selling some rice soon instead of waiting for
the completion of warehouse inspections.The government plans to sell rice using many methods such as opening bidding
for general traders, selling on the futures market and clinching government-to-government contracts, she said.
Rice inspections continue in Nakhon Sawan
NAKHON SAWAN, Prime Ministers Office Permanent Secretary ML Panadda Diskul has been to inspect rice
warehouses in Nakhon Sawan. ML. Panadda Diskul, and the officers responsible have conducted mass rice
stock checks and uncovered widespread irregularities. The PM's Office permanent secretary said for example
rice inspectors had uncovered irregularities during an inspection at a warehouse in Nakhon Sawan's Krok Phra
district. He said several government-owned rice sacks were found to contain broken rice instead of jasmine rice.
All 175,000 sacks of pledged rice stored in the warehouse have been seized for further examination. The
permanent secretary added that the rice inspections are expected to be completed by the end of this month. The
inspection is to check the quality of rice since its quality could deteriorate due to the poor storage.


Nagpur Foodgrain Prices - APMC & Open Market-July 21
Mon Jul 21, 2014 2:36pm IST
Nagpur, July 21 (Reuters) - Gram prices in Nagpur Agriculture Produce and
Marketing Committee (APMC) reported higher on renewed demand from local millers amid thin supply from producing
region. Healthy rise on NCDEX, upward trend in Madhya Pradesh gram prices also fuelled prices here, according to
sources.

* * * *

FOODGRAINS & PULSES
GRAM
* Gram super best bold and medium zoomed up in open market on good buying support from
local traders. Stockists were activated because of poor monsoon report.

TUAR
* Tuar varieties ruled steady in open market on subdued demand from local traders amid
ample stock available in ready position.

* In Akola, Tuar - 4,200-4,400, Tuar dal - 6,000-6,400, Udid at 7,000-7,200,
Udid Mogar (clean) - 8,000-8,500, Moong - 7,200-7,600, Moong Mogar
(clean) 8,600-9,300, Gram - 2,500-2,800, Gram Super best bold - 3,400-3,700
for 100 kg.

* Wheat, rice and other commodities remained steady in open market
in thin trading activity, according to sources.

Nagpur foodgrains APMC auction/open-market prices in rupees for 100 kg

FOODGRAINS Available prices Previous close
Gram Auction 2,350-2,790 2,300-2,700
Gram Pink Auction n.a. 2,100-2,600
Tuar Auction n.a. 3,800-4,350
Moong Auction n.a. 4,400-4,700
Udid Auction n.a. 4,300-4,500
Masoor Auction n.a. 2,600-2,800
Gram Super Best Bold 3,900-4,200 3,800-4,200
Gram Super Best n.a.
Gram Medium Best 3,500-3,600 3,400-3,600
Gram Dal Medium n.a. n.a.


Gram Mill Quality 3,250-3,350 3,250-3,350
Desi gram Raw 2,850-2,950 2,850-2,950
Gram Filter new 3,000-3,200 3,000-3,200
Gram Kabuli 8,000-9,500 8,000-9,500
Gram Pink 7,200-7,400 7,200-7,400
Tuar Fataka Best 6,800-6,950 6,800-6,950
Tuar Fataka Medium 6,500-6,600 6,500-6,600
Tuar Dal Best Phod 6,100-6,250 6,100-6,250
Tuar Dal Medium phod 5,700-5,950 5,700-5,950
Tuar Gavarani 4,500-4,600 4,500-4,600
Tuar Karnataka 4,600-4,800 4,600-4,800
Tuar Black 8,000-8,300 7,900-8,200
Masoor dal best 6,200-6,450 6,200-6,450
Masoor dal medium 6,000-6,300 6,000-6,300
Masoor n.a. n.a.
Moong Mogar bold 9,600-10,100 9,500-10,000
Moong Mogar Medium best 8,500-8,700 8,400-8,600
Moong dal super best 8,100-8,700 8,000-8,600
Moong dal Chilka 7,900-8,400 7,800-8,300
Moong Mill quality n.a. n.a.
Moong Chamki best 7,900-9,100 7,800-9,000
Udid Mogar Super best (100 INR/KG) 8,500-8,900 8,500-8,900
Udid Mogar Medium (100 INR/KG) 7,600-7,800 7,600-7,800
Udid Dal Black (100 INR/KG) 6,000-6,800 6,000-6,800
Batri dal (100 INR/KG) 4,200-5,000 4,200-5,000
Lakhodi dal (100 INR/kg) 2,750-2,900 2,750-2,900
Watana Dal (100 INR/KG) 3,100-3,300 3,100-3,300
Watana White (100 INR/KG) 3,500-3,600 3,500-3,600
Watana Green Best (100 INR/KG) 5,000-5,600 5,000-5,600
Wheat 308 (100 INR/KG) 1,200-1,500 1,200-1,500
Wheat Mill quality(100 INR/KG) 1,600-1,850 1,600-1,850
Wheat Filter (100 INR/KG) 1,200-1,400 1,200-1,400
Wheat Lokwan best (100 INR/KG) 1,900-2,200 1,900-2,200
Wheat Lokwan medium (100 INR/KG) 1,600-1,800 1,600-1,800
Lokwan Hath Binar (100 INR/KG) n.a. n.a.
MP Sharbati Best (100 INR/KG) 2,600-3,300 2,600-3,300
MP Sharbati Medium (100 INR/KG) 2,100-2,500 2,100-2,500
Wheat 147 (100 INR/KG) 1,100-1,300 1,100-1,300
Wheat Best (100 INR/KG) 1,500-1,800 1,500-1,800
Rice BPT (100 INR/KG) 2,900-3,200 2,900-3,200


Rice Parmal (100 INR/KG) 1,600-1,800 1,600-1,800
Rice Swarna old (100 INR/KG) 2,700-2,900 2,600-2,800
Rice HMT (100 INR/KG) 4,000-4,300 4,000-4,300
Rice HMT Shriram (100 INR/KG) 4,700-5,200 4,700-5,200
Rice Basmati best (100 INR/KG) 10,400-13,000 10,400-13,000
Rice Basmati Medium (100 INR/KG) 7,300-10,000 7,300-10,000
Rice Chinnor (100 INR/KG) 5,200-5,600 5,200-5,600
Jowar Gavarani (100 INR/KG) 1,300-1,500 1,300-1,500
Jowar CH-5 (100 INR/KG) 1,600-1,700 1,600-1,700

WEATHER (NAGPUR)
Maximum temp. 26.6 degree Celsius (79.9 degree Fahrenheit), minimum temp.
23.9 degree Celsius (75.0 degree Fahrenheit)
Humidity: Highest - n.a., lowest - n.a.
Rainfall : 10.1 mm
FORECAST: Generally cloudy sky with one or two spells of rains. Maximum and Minimum temperature likely to be
around 27 and 23 degree Celsius respectively.

Note: n.a.--not available

(For oils, transport costs are excluded from plant delivery prices, but
included in market prices.)

India pitches high agri growth despite poor rains
By From InpaperMagazine
Updated a day ago
The shortfall in the June-September monsoon, which accounts for more than 70pc of Indias annual rains, has
narrowed to 40pc of the 50-year average since June 1.Reuters
Finance Minister Arun Jaitley, in his maiden budget presented to the
Indian parliament on July 10, expected agricultural growth to be
sustained at over 4pc this fiscal in line with what the previous
United Progressive Alliance government had been managing over
the past few years.However, with the elusive south-west monsoon,
attaining the 4pc growth target appears to be quite ambitious. The
progress of the monsoon has been dismal over the first 45 days so
far from June 1 to July 15 and the prospects of its revival appear bleak.According to the Indian


Meteorological Department (IMD), which keeps promising a revival over the next few days, there has been a
massive 40pc departure from the long period average (LPA) for the country as a whole as on July 16.The worst
affected are the northwest (with a departure of 53pc from the LPA), and central regions (with a 51pc departure
from the LPA). In early June, the IMD had predicted rainfall of 93pc of LPA during July and 96pc for August
for the country as a whole. Rainfall below 90pc of LPA is considered a meteorological drought.Indias National
Commission of Agriculture had, in 1976, categorised droughts into three types: meteorological, hydrological
and agricultural.

The National Oceanic and Atmospheric Administration of the US has defined agricultural drought as a
combination of temperature and precipitation over several months leading to less than 90pc in yield.The IMD
classifies drought when the rainfall for a week is half of the normal or less and when four such consecutive
weeks occur from mid-May to October, it is considered an agricultural drought. The governments National
Remote Sensing Centre defines drought as a condition when the amount of water needed for transpiration and
direct evaporation exceeds the amount available in the soil.Whatever be the definition, a deficit of more than
40pc of the LPA as evident in the countrys agricultural belts in northwest and central India is
undoubtedly going to be classified a drought. Of course, the IMD is hopeful that rainfall in the rest of season till
September will be much better than during the first 45 days, and that the deficit would reduce
significantly.Droughts are indeed not unusual in India, a country where two-thirds of the cultivated land is
dependent on monsoons.
In fact, the monsoon is erratic in four out of 10 years in the country, and about a third of the land is chronically
drought-prone, receiving less than 750mm of rainfall annually.There have been about half a dozen severe
droughts in India over the past four decades, with the worst being in 1972 and 2009. Even in those years, the
rainfall deficit was less than 25pc. Agricultural production usually falls off by 10pc in a drought year.
LAST year was a good one for Indian agriculture, with production of food grains touching 263m tonnes, against
255.36m tonnes in the previous year. Agricultural product exports also shot up to $45bn, up from $41bn in the
previous year.Jaitley was confident that even if many parts of the country faced drought, or drought-like
conditions, there were adequate food grains in stock. Sowing of kharif crops, excluding paddy, has been far
lower this year. According to the agriculture ministry, sowing has happened in a little over 25m hectares of land
till July 12, which is half the comparable figure in 2013. The worst affected have been pulses, oilseeds, cotton
and cereals. Sowing of kharif crops has happened in just 35pc of the average area sown over the past five years.
With the monsoon having virtually been absent over central and northwest India affecting states including
Punjab, Haryana, Gujarat, Madhya Pradesh and Maharashtra the production of pulses, cotton and soyabean
is expected to be badly impacted this year. The only saving grace is the relatively better rainfall in east and


northeast India and in the southern peninsula, with departures of 25pc and 27pc respectively from the LPA.H S
Gupta, director of the Indian Agricultural Research Institute (IARI), points out that the erratic monsoon would
impact production of cotton, pulses, soyabean and groundnut. Sowing of oilseeds, mainly soyabean, is down by
88pc, while cotton sowing has shrunk by almost 50pc. Rice sowing, though, has reduced by less than 20pc.
A spokesman for the India Pulses and Grains Association says many farmers have migrated to other crops as the
delayed rains have affected the sowing of pulses. The countrys major pulse growing states include Gujarat,
Maharashtra, Madhya Pradesh and Rajasthan, all of whom are reeling under deficit rainfall.But Gupta is
confident that with central and northwestern India receiving relatively better rainfall last week, farmers would
start sowing these crops over the coming days, improving the overall situation.The prices of pulses, vegetables
and fruits have already started rising with fears of lower production this year. One of the major factors for the
defeat of the Congress-led United Progressive Alliance government was its failure to control food inflation.The
BJP, which had launched a vociferous campaign against the government in the run-up to the elections, now
finds itself in an unenviable position at the start of its tenure, with the monsoon playing truant. Government
leaders including Jaitley claim that it is possible to manage inflation by releasing food grains from godowns and
intervening in the markets by banning exports and increasing imports.
Fortunately for the government, inflation eased to 7.3pc in June, the lowest in three years, because of a fall in
food prices. The government claimed credit for this, noting that its move to impose restrictions on exports of
farm items had its impact.While onion prices had soared a few weeks ago, the government imposed a minimum
export price of $300 on the bulb, cooling down domestic prices. But with the failure of the monsoon, there is
fear that onion prices would once again start climbing. The government is now toying with the idea of imposing
a ban on onion exports for a couple of months.
Published in Dawn, Economic & Business, July 21st, 2014
Late monsoon starts farmer's "journey to hell"
BY RATNAJYOTI DUTTA
SHAMLI India Sun Jul 20, 2014 3:37pm IST
(Reuters) - Farmer Asghar Bhura scrapes a living by growing
sugarcane, but this year's late monsoon has left his tiny plot parched
and he will earn nothing from his harvest. Bhura will have to go and
work for a big grower to feed his family of six, making 250 rupees
($4.00) a day, as he did when India suffered its last severe drought in
2009. "I have no option but to become a bonded labourer just to feed
my family one meal a day," said Bhura, 50, looking at his stunted crop on his third of a hectare of land.


Bhura's borderline existence is shared by many farmers in the district of Shamli, in the sugarcane belt of the most
populous state, Uttar Pradesh, three hours' drive north of the capital New Delhi.With this year's monsoon rains
several weeks late, the world's second-largest sugar and rice producer is on the verge of widespread drought in the
face of a developing Pacific Ocean weather event known as El Nino, which is often associated with drought in South
Asia.In good years, the four-fifths of local farmers who tend a hectare or less, can get by. In bad years, they slide
into debt. Some lose their land. Others are forced into servitude.Hunger for land and water feeds social tensions. In
nearby Muzaffarnagar, communal clashes last year killed about 65 people, most of them Muslims, and displaced
thousands more.
The farm sector accounts for about 14 percent of the economy but two thirds of its 1.2 billion people depend on
farming to live. Most poor live on the land. Areas that lack irrigation are most vulnerable when the rains
fail.Although the national weather office said on Thursday that the monsoon had covered all of India, rainfall in the
first six weeks of the wet season has been more than a third below normal.A poor monsoon could raise imports of
cooking oil to India, the leading buyer of vegetable oils. The country may also cede its position as top rice exporter
to Thailand.Cane and basmati rice fields in Shamli, a district carved out of Muzaffarnagar three years ago, showed
gaping cracks on a recent visit."For me, my wife and two sons and two daughters, the journey to hell has already
started. Our stomachs will be half empty soon," said Bhura, whose gaunt face and unkempt beard betrayed anxiety
and exhaustion.
LATE RAINS
Even if the monsoon revives during the rest of the planting month of July, farmers here expect losses of at least a
fifth in summer-sown crops like rice, corn, cane, soybean and cotton.India harvested 348 million tonnes of cane last
year, with an average sugar content of 11 percent.Productivity in Uttar Pradesh typically lags that of other growing
regions like subtropical Maharashtra due to poorer soils and a less favourable climate. Another two weeks without
rain could lower both tonnage and sugar content, possibly to 8 percent, local farmers reckon.Farmers worry the
impact this year could be worse than five years ago, when India suffered its worst drought in four decades.
Subsequent supply shortages from the country pushed New York sugar prices to 30-year highs.
"The rains improved in early July five years ago, but this year the dryness stretched beyond the second week of
July," said Yogendra Singh, who mainly grows cane on five hectares of land.Cane fields here are irrigated with
water from canals built during British colonial rule. But the sturdy crop, planted twice a year, only blooms when it
rains regularly. "Canal water can initiate sowing activities in cane but water from the sky is vital for the nourishment
and growth of the crop," said Singh, who retired from the Indian Air Force two decades ago to join his three brothers


in farming.Though production will fall this year, India will not have to trawl the global market for sugar because of
surpluses piled up over the past four years.
CROP SWITCH
Other farmers are turning away from cane to other crops that they hope will safeguard their incomes."I have
switched to cultivation of banana as it promises much higher returns than cane or basmati rice," said Nameet Panwar,
24, who is just starting out farming one hectare of his family's land.Panwar expects to earn a minimum of 1 million
rupees ($16,600) from growing bananas, he says, more than twice that of cane even if the sugar plant is harvested
twice a year.Responding to the late monsoon, local authorities have put contingency plans into action, including
providing quick-growing seed varieties of pulses to growers and ensuring adequate supplies of pesticides and
insecticides at farmers' doorsteps."We too have in place a drought contingency plan to mitigate any situations arising
due to rainfall that is 50 percent below normal," said district magistrate N.P. Singh. Marginal farmers would be given
work digging wells. ($1=60.1050 Indian Rupees)
(Editing by Douglas Busvine and Richard Pullin)
CODEX Approves Inorganic Arsenic Maximum Level for Rice

ARLINGTON, VA -- Last week, the CODEX Alimentarius Commission, a
working group of the United Nations Food and Agriculture Organization and
World Health Organization, approved a recommendation from their Committee
on Contaminants in Foods (CCCF) to establish a maximum level (ML) for
inorganic arsenic in polished (white) rice of 0.2 mg/kg, along with the future
development of a code of practice for growing rice.Reece Langley, USA Rice Federation's vice president for
government affairs participated on behalf of the U.S. industry in the April CCCF meeting where the
recommendation to CODEX was made (see USA Rice Daily, April 4, 2014).

"We feel now, as then, that this white rice ML is not expected to present a problem for U.S.-grown rice based
on testing to date," said Langley. "Of course no ML was established for brown rice and that is something that
we'll continue to monitor and work on."Langley says the CCCF will discuss the brown rice ML issue at their
next meeting in early 2015 and that he will participate in the sessions.It is expected that countries will use the
CODEX standard as a benchmark for establishing their own national standards. Under World Trade
Organization agreements these levels are considered to be protective of human health and requirements in trade
unless individual nations that want to establish a different level can show special circumstances.
Contact: Michael Klein, (703) 236-1458

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