16th april,2015 daily exclusive oryza rice e newsletter by rice

Daily Exclusive ORYZA Rice E-Newsletter
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1
Daily Exclusive ORYZA RiceNewsletter
Volume 5, Issue I
April 16, 2015

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2
Ending Levy Rice System will Have Negative
Repercussions on Indian Farmers and
Consumers, Warn Experts
Apr 15, 2015
The government of India's decision to end the levy rice procurement system from the 2015-16
kharif marketing season (October - September) is likely to negatively impact rice farmers and
consumers significantly, experts have warned, according to local sources.
The government felt the need to abolish the levy rice procurement as there was no proper
supervision system and the millers were often not paying Minimum Support Price (MSP) to the
farmers and were selling the better-quality grain in the open market. The decision was mainly
meant to ensure fair prices to farmers.However, experts say with the absence of levy rice
procurement system, farmers have to depend on government agencies and traders and millers to
sell their paddy. Most of the times, traders and millers avoid paying minimum purchase price
(MSP) to farmers, they say. In KMS 2013-14, most of the traders paid less than Rs.1,200 per
quintal against the prescribed MSP of Rs.1,360 per quintal and Rs.1,400 per quintal of common
and grade A paddy respectively, says a field officer overseeing procurement in Telangana.

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They say consumers will also have to bear consequences of this decision in the form of high
prices. “Denial of MSP to farmers by traders and millers, however, will not provide any respite
to the end-consumers. Millers will have the freedom to sell the rice stocks anywhere and resort to
hoarding to create artificial shortage and increase the price heavily,” sources in the Civil
Supplies Department were quoted as saying.Under the levy rice procurement system, millers
purchase paddy from farmers at MSP and the state governments in turn procure milled rice from
millers to meet their public distribution needs. Percentage of levy rice procured from millers
differs from state to state and used to be in the range of 30-75% of total procurement in
respective states. However, in August 2014, the government of India capped the levy rice
procurement from millers at 25% for the 2014-15 procurement season.
Japan May Cut Down Rice Purchases from
Thailand if TPP with U.S. Materializes, Say
Experts
Apr 15, 2015
Japan may cut down rice imports from Thailand and increase rice imports from the U.S. if the
Trans-Pacific Partnership (TPP) Agreement between Japan and the U.S. materializes, according

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to local sources.General Manager at the Norinchukin Research Institute in Tokyo told local
sources that if Japan-U.S. TPP goes through, Japan may prefer to import more rice from the U.S.
rather than from non-TPP countries.
Japan reportedly imported around 330,000 tons of rice from Thailand and around 60,000 tons
from China in FY 2014-15 (April - March), according to data from the Japan Agriculture
Ministry.Experts are expecting Japan to propose to the U.S. about increasing tariff-free rice
imports from Japan in order to take forward the TPP negotiations that have stalled due to an
impasse between the two countries over access to Japan's farm markets. Japan is likely to
increase imports from the U.S. by about 100,000 tons annually. The Japanese Premier is likely to
visit the U.S. shortly as part of efforts to conclude the TPP talks.
Japan is keen on protecting its major farm products, including rice, wheat, barley, beef, port,
dairy products, sugar and starch from foreign competition.Currently, Japan imports about
770,000 tons of rice under the annual minimum market access (MMA) quota as per the World
Trade Organization (WTO) obligations. The WTO regulations require Japan to import half of the
mandatory 770,000 tons from the U.S. The rice imports above the MMA quota carry a
prohibitive import tariff of around 778%.USDA estimates Japan to produce around 7.7 million
tons of rice and import around 700,000 tons of rice in MY 2014-15 (November - October) to
meet annual consumption needs of around 8.2 million tons.
Brazil Exports 262,471 Tons of Rice in First
Three Months of 2015
Apr 15, 2015
Brazil has exported around 262,471 tons of rice in the first three months of 2015, according to
data released by the Rice Institute of Rio Grande do Sul (IRGA).In March 2015, Brazil exported
around 142,643 tons of rice, nearly three times more than 49,915 tons exported in February
2014.Iraq remained the largest importer of Brazilian rice in March 2015 with around 61,765
tons, or about 43% of Brazil's total rice exports during the month. Senegal accounted for around
38,676 tons (about 27% of Brazil's total exports during the month); Netherlands accounted for
around 14,751 (about 10% of Brazil's total exports during the month); Sierra Leone accounted
for 9,191 tons (about 6% of Brazil's total exports during the month); and the Bolivia and Peru
accounted for 4% and 2.5% of Brazil’s total rice exports during March 2015 with around 5,938
tons and around 3,635 tons respectively.

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Cuba (225 tons), U.S. (1,572 tons), Chile (839 tons), Cape Verde (1,911 tons), Trinidad and
Tobago (178 tons), Canada (635 tons), Angola (557 tons), Belgium (662 tons), Saudi Arabia
(364 tons), and others (1,924 tons) accounted for the remaining 6% of Brazil's total rice exports
in March 2015.Brazil exported around 1.24 million tons of rice in 2014, up about 2.4% from
around 1.209 million tons exported in 2013, according to data from IRGA.
Oryza U.S. Rough Rice Recap - Prices
Unchanged as Farmers Plant Crops
Apr 15, 2015
The U.S. cash market was unchanged today with little to trading to report as farmers focus on
getting their crop in the ground amid prices that look lackluster to those with crop left to
sell.Analysts note that the potential for new Iraq business could give the market what it needs to
move prices higher however some are concerned the addition of origins that were previously
excluded (Pakistan, Cambodia, India) may decrease the chances for the U.S. to be awarded some
of the business.

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USDA Post Forecasts Dominican Republic's
MY 2015-16 Paddy Rice Production at
776,000 Tons, Down 2% from Last Year
Apr 15, 2015
USDA Post forecasts Dominican Republic's paddy rice production to decline about 2% to around
776,000 tons (around 520,000 tons, basis milled) in MY 2015-16 (January - December 2015)
from around 793,000 tons (around 531,000 tons, basis milled) in the previous year due to a slight
decline in paddy rice acreage.The Post forecasts the country's paddy rice acreage at around
160,000 hectares, down about 1% from around 162,000 hectares last year. Rice is grown in two
cycles in the country with 75% crop grown in the main season and 25% crop grown in the
secondary season.
The average yield has been varying between 4 and 5 tons per hectare over the last ten year. The
Post expects no change in yields due to lack of improvements in irrigation facilities and
production technologies as well as lack of development of new varieties.
The Post estimates the country's milled rice consumption to slightly decline to around 533,000
tons in MY 2015-16 from around 538,000 tons in the previous year due to relatively higher
prices.USDA Post reports that both imports and exports by the Dominican Republic are limited

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as the country has been self-sufficient in rice production for the last fe years. The country
imported about 13,000 tons in 2014, of which about 92% came from the U.S. It exported around
8,000 tons of rice last year.
Dominican Republic has placed rice in Basket V of the The Dominican Republic-Central
America FTA (CAFTA-DR) and agreed for a tariff-reduction period of 20 years as well as
establishing a 99% out-of-quota tariff rate. The out-of-quota tariff rate will remain unchanged
during the first 10 years of the Agreement, until 2015. From 2016 to 2020 the out-of-quota tariff
rate will be reduced by 8% annually, and from years 2021 to 2025 by 12% annually. The country
also negotiated a special safeguard with an additional tariff rate, which can be applied until the
end of the tariff reduction period.
The Post forecasts Dominican Republic's MY 2015-16 stocks to decline to around 195,000 tons,
down about 4% from last year.
Vietnam Rice Seller Lower Some of Their
Quotes Today; Other Asia Rice Quotes
Unchanged
Apr 15, 2015
Vietnam rice sellers lowered their quotes for 25% broken rice by about $5 per ton to around $335 - $345
per ton today. Thailand rice sellers are out today due to national holiday. India and Pakistan rice quotes
are unchanged today.
5% Broken Rice
Thailand 5% rice was last indicated at around $385 - $395 per ton, about a $25 per ton premium
on Vietnam 5% rice shown at around $360 - $370 per ton. India 5% rice is indicated at around
$370 - $380 per ton, about a $5 per ton discount to Pakistan 5% rice shown at around $375 -
$385 per ton.
25% Broken Rice
Thailand 25% rice was last shown at around $355 - $365 per ton, about a $20 per ton premium
on Vietnam 25% rice shown at around $335- $345 per ton, down about $5 per ton from
yesterday. India 25% rice is indicated at around $345 - $355, about a $15 per ton premium on
Pakistan 25% rice shown at around $330 - $340 per ton.

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Parboiled Rice
Thailand parboiled rice was last indicated at around $385 - $395 per ton. India parboiled rice is
indicated at around $365 - $375 per ton, about a $15 per ton discount to Pakistan parboiled rice
shown at around $380 - $390 per ton.
100% Broken Rice
Thailand broken rice, A1 Super, was last indicated at around $320 - $330 per ton, about a $10
per ton premium on Vietnam 100% broken rice shown at around $310 - $320 per ton. India's
100% broken rice is shown at around $275 - $285 per ton, about a $10 per ton discount
to Pakistan broken sortexed rice shown at around $285 - $295 per ton.
Vietnam Enterprises Buy 99% of Targeted
One Million Tons Rice Under 2015
Stockpiling Plan as on April 13, 2015
Apr 15, 2015

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Vietnam enterprises have bought about 99.4% or around 994,294 tons of targeted one-million
tons of winter-spring rice under the government-approved stock piling plan from March 1 - April
13, 2015, Bloomberg quoted local sources as saying. The scheme is understood to close
today.The government had approved the stockpiling plan to prevent prices from falling during
the harvest of the winter-spring crop. The government has been assisting businesses with 100%
soft loans for four months to buy rice under the program. This is the sixth consecutive year that
the government of Vietnam has approved the rice stockpiling program during the harvest time of
the country's largest winter-spring crop. The Mekong Delta region is expected to harvest about
6.34 million tons of winter-spring crop.
The stockpiling program coupled with the Philippines contract to supply 300,000 tons of rice are
expected to push up prices considerably.According to data from UN's Food and Agriculture
Organization (FAO), wholesale prices of 25% broken rice in the Dong Thap province of the
Mekong Delta region increased to around 7 million Dong (around $330) per ton in March 2015
from around 6.7 million Dong (around $310) per ton in February 2015. Similarly, wholesale
prices of 20% broken rice increased to around 6.9 million Dong (around $320) per ton in March
2015 from around 6.65 million Dong (around $310) per ton last month.
Generally, the past experience shows that the government approved stockpiling plans were not
that effective in controlling price falls. Lack of proper storage facilities is cited as the main
reason for enterprises not showing interest in buying rice under the program. However, this time,
the program is said to have been conducted more effectively due to improved connections among
Mekong Delta provinces and cities.
Oryza Overnight Recap – Chicago Rough
Rice Futures Slightly Lower, Market
Attempts to Recover from Recent Losses
Apr 15, 2015
Chicago rough rice futures for May delivery are currently noted 0.2 cents per cwt (about $0.44
per ton) lower at $10.190 per cwt (about $225 per ton) ahead of floor trading in Chicago. The
other grains are seen trading mostly higher overnight: soybeans are currently seen about 0.2%
higher, wheat is listed about 0.6% higher and corn is currently noted about 0.6% lower.
U.S. stock index futures indicated a higher open on Wednesday, amid more first quarter financial
earnings and a swathe of economic data. Financial company earnings are expected to grow by

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12%, in what is seen being a down quarter for the S&P 500, according to Thomson Reuters.
Mortgage applications decreased 2.3% from the prior week as interest rates ticked up slightly,
according to the Mortgage Bankers Association. Meanwhile, the Empire Manufacturing survey
for April Manufacturing activity showed growth in New York State unexpectedly contracted in
April, weakening for a third straight month as the pace of new orders fell to a multi-year low, a
New York Federal Reserve survey showed on Wednesday.
The index showed a decline of 1.19 in April versus March's 6.90 read. There will be a flurry of
Fed speakers, including Vice Chairman Stanley Fischer, who is part of a panel discussing
macroprudential tools at 10:30 a.m. the International Monetary Fund's spring meeting. In
Europe, equities continued to hold higher on Wednesday as the European Central Bank
announced it would not change rates. Gold is currently trading about 0.3% higher, crude oil is
seen trading about 1.8% higher, and the U.S. dollar is currently trading about 0.1% higher at
8:30am Chicago time.
Philippines Intends to Expand Rice Import
Origins
Apr 15, 2015
The Philippines procurement agency is exploring ways to import rice from different countries
such as Pakistan, Myanmar, and India in order to diversify rice import origins, dominated by
Vietnam and Thailand. The nation is one of the biggest importers of rice in the world. Last year
the Philippines imported about 1.2 million tons of rice and it is estimated to import about 1.6
million tons this year, according to USDA data.
With the availability of other possible sources for rice, the country can better manage the costs
and have other alternatives in case of natural disasters and typhoons that regularly ravage its
agriculture. Philippine National Food Authority (NFA) officials are working with the trade
missions of Pakistan, India, and Myanmar to obtain Memorandums of Agreement (MOA) similar
to what the country has with Vietnam, Thailand and Cambodia.The Philippines uses a Minimum
Access Volume (MVA) structure wherein local businesses are permitted to import 755,000 tons
of rice, subject to a 35% tariff, which is different from state-owned NFA tenders. The NFA
Council hasn’t opened the MAV route this year and unconfirmed reports suggest that the
government is considering removing tariffs on rice imports, according to local sources.

www.ricepluss.com
11
Ending Levy Rice System will Have Negative
Repercussions on Indian Farmers and
Consumers, Warn Experts
Apr 15, 2015
The government of India's decision to end the levy rice procurement system from the 2015-16
kharif marketing season (October - September) is likely to negatively impact rice farmers and
consumers significantly, experts have warned, according to local sources.The government felt
the need to abolish the levy rice procurement as there was no proper supervision system and the
millers were often not paying Minimum Support Price (MSP) to the farmers and were selling the
better-quality grain in the open market. The decision was mainly meant to ensure fair prices to
farmers.
However, experts say with the absence of levy rice procurement system, farmers have to depend
on government agencies and traders and millers to sell their paddy. Most of the times, traders
and millers avoid paying minimum purchase price (MSP) to farmers, they say. In KMS 2013-14,
most of the traders paid less than Rs.1,200 per quintal against the prescribed MSP of Rs.1,360

www.ricepluss.com
12
per quintal and Rs.1,400 per quintal of common and grade A paddy respectively, says a field
officer overseeing procurement in Telangana.
They say consumers will also have to bear consequences of this decision in the form of high
prices. “Denial of MSP to farmers by traders and millers, however, will not provide any respite
to the end-consumers. Millers will have the freedom to sell the rice stocks anywhere and resort to
hoarding to create artificial shortage and increase the price heavily,” sources in the Civil
Supplies Department were quoted as saying.
Under the levy rice procurement system, millers purchase paddy from farmers at MSP and the
state governments in turn procure milled rice from millers to meet their public distribution needs.
Percentage of levy rice procured from millers differs from state to state and used to be in the
range of 30-75% of total procurement in respective states. However, in August 2014, the
government of India capped the levy rice procurement from millers at 25% for the 2014-15
procurement season.
Global Rice Quotes
April 16th, 2015
Long grain white rice - high quality
Thailand 100% B grade 395-405 ↔
Vietnam 5% broken 360-370 ↔
India 5% broken 370-380 ↔
Pakistan 5% broken 375-385 ↔
Myanmar 5% broken 410-420 ↔
Cambodia 5% broken 435-445 ↔
U.S. 4% broken 480-490 ↔
Uruguay 5% broken 575-585 ↔
Argentina 5% broken 565-575 ↔
Long grain white rice - low quality
Thailand 25% broken 355-365 ↔

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Pakistan 25% broken 330-340 ↔
Cambodia 25% broken 410-420 ↔
India 25% broken 345-355 ↔
U.S. 15% broken 470-480 ↔
Long grain parboiled rice
Thailand parboiled 100% stxd 380-390 ↓
Pakistan parboiled 5% broken stxd 380-390 ↔
India parboiled 5% broken stxd 365-375 ↔
U.S. parboiled 4% broken 555-565 ↔
Brazil parboiled 5% broken 570-580 ↔
Uruguay parboiled 5% broken NQ ↔
Long grain fragrant rice
Thailand Hommali 92% 890-900 ↔
Vietnam Jasmine 475-485 ↔
India basmati 2% broken NQ ↔
Pakistan basmati 2% broken NQ ↔
Cambodia Phka Mails 810-820 ↔
Brokens
Thailand A1 Super 320-330 ↔
Pakistan 100% broken stxd 285-295 ↔
Cambodia A1 Super 345-355 ↔
India 100% broken stxd 275-285 ↔
Egypt medium grain brokens NQ ↔
U.S. pet food 370-380 ↔
Brazil half grain NQ ↔
All prices USD per ton, FOB vessel, oryza.com

16th april,2015 daily exclusive oryza rice e newsletter by rice

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16th april,2015 daily exclusive oryza rice e newsletter by rice