Published on August 25, 2003 Questions or Comments? Click here ! Rice Market Report China, India and other 13 developing countries of the Cairns group joined together to proposed an alternative framework for WTO negotiations on agricultural trade in Geneva against the EU-US proposal. 14 listed countries in joint propasal are major agriculural exporting countries as India, China, Brazil, Argentina, Chile, South Africa, Mexico, Columbia, Costa Rica, Bolivia, Guatemala, Peru, Thailand and Ecuador. Joint proposal mainly concerns about protecting its food security and livelihood of farmers. It asks for elimination of trade-distorting subsidies and other subsidies, define the special and differential treatment to be provided to the developing countries and seeks tariff cut by the developed countries. Unlike the US-EU plan, the US-EU is obstinate to cutting farm subsidies and unclear policy about special safeguards and special products protection to be provided to the developing countries. Domestic market situation Iran enter to the market to buy 30,000 tons of 5 percent broken rice at US$196 per ton fob as part of the Thai government's plan to establish rice distribution center in Iran to boost rice exports in Middle East. Rice export for Iran might increase to the extent of much as one million tonnes in the future. Another 50,000 tons of Thai rice sold to Russia during the visiting Russia, Ukraine and Kazakhstan. The government has proposed a bill to protect local plants and animal strains, including jasmine rice, within Geographical Indication (GI) under WTO's IRR regime. The Thai Department of Foreign Trade has forecasted the rice export will reach 700,000 tons this month. It also predicted August to be the best month for rice exports this year. According to the Thai Internal Trade Department, a total of 3,028,921.30 tons of rice excluding jasmine one exported between January 1 and August 21 this year. The figure marked a 19.15 percent (717,635.15 tons) decline from 3,746,556.45 tons during the same period last year. Exports between August 1 and 21 totaled 386,917.35 tons, increased from 218,274.40 tons during the same period in 2002. In the week ending August 22, ten vessels arrived at Bangkok Port to load a total of 82,300 tons of rice bound for Philippines (35,000 tons) Nigeria (22,000 tons), Iran (10,500 tons) Indonesia (8,600 tons).and Malaysia (6,200 tons). World market situation Exporters India India and Pakistan will visit London next week to discuss European Union's proposed changes in current rice import regime allowing duty concession on basmati rice to Euros 250 per ton. The government launched a scheme to promote Indian Basmati rice abroad on Aug 15 by gifting the rice along with recipes of rice dishes to passengers of Air India and Indian Airlines. Vietnam The country expected that the rice exporting to the world market will increase since low supplies in US, India and Pakistan, including higher rice prices in Thai. Rice market still steady with soft demands. Brazil purchased 40,000 tons of 5% broken rice for August shipment and it is expected to receive the order from Indonesia. US US and EU move to exempt WTO members from considerably tariff cuts for some sensitive products. These nations, inturn, would have to either set maximum tariff rates on these products below certain level or increase import quotas. In the case of rice, the minimum access volume would be set at 7.2 percent of annual consumption. The USDA reported net sales of 28,500 tons during the week ending August 14, which were 55 percent increase from previous week. The major buyers were Haiti (9,600), Venezuela (8,800 tons), Hondurus (4,900 tons), Jamaica (4,400 tons) and El Salvador (2,000 tons). The department also reported shipments for a total of 121,900 tons during the same period bound for Brazil (47,900 tons), Venezuela (30,000 tons), Mexico (17,400 tons), Haiti 7,200 tons), Honduras (6,900 tons) Germany (2,900) and Liberia (2,300 tons). Pakistan The rice market still quiet with no fresh demand. the rice shipments were moved to buyer countries as the old contract's due. Mostly export to African countries such as Nigeria and Kenya. China will launch an investment in Pakistan to promote corporate farming and assist the latter in finding more export market. Global Rice Prices Thailand USD/ton (FOB) USA USD/ton (FOB) Pakistan USD/ton India USD/ton Vietnam USD/ton FWR 100% A 520 Long (AR) 236.2-275.6 IRRI-6 10% 200 PR 106 5% 196 5% 183 WR 100% B 197 Medium (AR) 275.6-374 IRRI-6 15% 196 PR 106 5% PB 195 10% 178 5% 191 Medium (CA) 315-472.4 IRRI-6 25% 189 PR 106 25% 175 15% 171 25% 174 Short (CA) 403.54-472.4 IRRI-6 5% 210 Basmati 850 25% 163 www.oryza.com ** All price are FOB Prices As the table above, exporting prices of Indian rice are unchanged. The rice prices of exporting countries are strong up as the rice supplies shortage during the lean months and poor production. The prices of Thai Hommali Rice 100%A quote at US$520, continuing increase sharply from US$510 last week. Thai white rice 25% quoted US$174 over US$173 last week. The prices of US rice are shifted, the California medium and short grains quoted US$315-472.4 and US$403.54-472.4, the ranges are wider than US$315-452.76 and 403.54-413.40 last week. Pakistani rice prices mostly sore up, the price of IRRI-6 10% and 5% quoted to US$200 and US$210, increase from US$196 and US$204 last week. All of Vietnam rice are higher. White rice 5%, 10%, 15% and 25% are US$183, US$178, US$171 and US$163, increase from US$182, US$173, US$166 and US$161 last week.     - The prices of Vietnam rice are expected to continuing increase because of the country get the new market in South America and Jakarta's new law on import tax. Production &stock In the wake of a sharp reduction in global stock in 2003/2004 to the lowest level in two decades with total 85.1 million tons, 21.4 tons below 2002/2003 though the global rice production is 11 million tons over the year 2002/2003 to 390.6 million tons in 2003/2004. The Association of South East Asian Nations has approved the 'East Asia Emergency Rice Reserve System project' induced by Thailand for creating emergency rice stocks among producing countries such as Thailand, Vietnam, Myanmar and China to support other members with rice shortage. This project also seek financial assistance from wealth non-rice producers. According to the Indian Meteorological Department (IMD), the monsoon probably to return to northern and southern regions. Rice sowing has completed to 56.2 percent of the normal acreage of 40.6 million hectares. The acreage of rice in India this year is better compared to last year. Sowing has been finished in 17.5 million hectares over the 15.5 million hectares last year. According to the central weather bureau of Vietnam, more than 4,000 ha of summer-autumn rice n Quan Binh and other areas in central province has saved by rainfall of 15-22 mm after several months of drought. The Vietnam government continues to agro-forestry-salt restruturing and set a food grains output target at 37.3 tons including 34.5 tons of rice in 2004, which is achieve 4.6 percent annual growth rate in 2004 and 5 percent in 2005. Intergrated Pest Management program being applied to 73 percent of rice growing areas in Vietnam has save 0.04-0.06 tons of rice seed and 0.007-0.025 tons of nitrogen fertilizers per ha with reduce using pesticide spray by 50-100 percent in 2002-2003. Local farmers can save the expenses around US$3.28-32.24 per ha. Vietnam government set the budget of US$300 million for agricultural development in 2004, which includes building dams for flood control and upgrading crossbred rice varieties. Importers Indonesia The drought crisis in the country has already reduced Java's rice output by 300,000 ton this year. However, the country no need more rice imports due to it reserve stocks has adequate rice to meet the local demand. Jarkata decided to raise taxes by nearly 19 percent on imported grain on next January. Philippines The country will import 500,925 tons of rice, exceeding 610,000 tons contracted for this year to more reserving stocks. Philippines consumes 20,300 tons daily, the participants estimated to have buffer stocks for only 76 days. Since the country's adherence to the General Agreement on Tariffs and Trade under WTO in 1994, the country increase rice import by 540 percent and agricultural trade deficit over US$5.2 billion. Local farmers have sought a moratorium on rice import to relief the affect from WTO's agricutural trade liberalization. According to Provincial Agriculture Office (PAO), the country calculated the rice crop damaged from typhoon Kabayan and heavy monsoon rains at US$705,527, over the US$278,410 of the previous PAO estimated the rice crop damage on July 31, which was hit by typhoon Harurot. The Philippines Bureau of Agricultural Statistics reported the paddy rice production contracted 5.13 percent on year, compare with 1.88 percent last year. However, it is achieving 4 percent of targeted growth rate in 2003 though the output in first half year below the target. The crop sub sector expanded 1.16 percent in first half. National Food Authority released the Republic Act No. 8976 to fortify rice to be sold in NFA's accredited outlet from next month. NFA will provide 343 dryers, which have a drying capacity of 206 tons per hour each. It will be adding vitamins and minerals to increase nutrition in rice during the fortifying process. Japan Rice fields in Japan are likely to faces the worst rice havest for over a decade as intense cold condition in July's dry wind that blew 18 times and a sunlight drop by around 20 percent in average. In August, there was the light bright only three days for providing over five hours of sunlight. In Fukushima Prefecture, 5.8 percent husk rice were affected by rice blight in late July and sore up to 17 percent in early August. Rice crop in six prefectures is slowly grow by three to seven days behind the normal. Development The United Nations' International Atomic Energy Agency at Seidersdorf, Austria, has produced the new rice strain with salt-resistant by using the gamma irradiation to induced mutation in seeds of the popular rice varieties such as Bicol and IR-9. The National Biotechnology Committee on Agriculture of Thailand drafted the development plan during 2004-2012 period aim to improving the quality and productivity of eleven commodities, including jasmine rice, common rice and rice for food processing. It focuses on making jasmine rice more resistant to bad conditions such as flood and drought, with maintaining its aromatic smell and softness.   Questions or Comments? Click here ! Source: FoodMarketExchange.com