14th september 2020 daily global regional,local rice e newsletter

Daily Global, Regional & Local Rice E-Newsletter
1 | w w w . r i c e p l u s s . c o m , w w w . r i c e p l u s m a g a z i n e . b l o s g s p o t . c o m
September 14,2020 Vol 11 Issue 9
www.riceplusmagazine.blogspot.com
mujahid.riceplus@gmail.com 92 321 3692874

Editorial Board
ChiefEditor
 Hamlik
Managing Editor
 Abdul SattarShah
 Rahmat Ullah
 RozeenShaukat
EnglishEditor
 Maryam Editor
 Legal Advisor
 Advocate ZaheerMinhas
Editorial Associates
 Admiral (R) HamidKhalid
 JavedIslamAgha
 ZahidBaig(BusinessRecorder)
 Dr.AkhtarHussain
 Dr.FayyazAhmadSiddiqui
 Dr.Abdul Rasheed(UAF)
 IslamAkhtarKhan
Editorial AdvisoryBoard
 Dr.MalikMohammad Hashim
AssistantProfessor,Gomal
UniversityDIK
 Dr.HasinaGul
AssistantDirector,AgricultureKPK
 Dr.HidayatUllah
AssistantProfessor,University
of Swabi
 Dr.Abdul Basir
AssistantProfessor,Universityof
Swabi
 ZahidMehmood
PSO,NIFA Peshawar
 FalakNaz Shah
Head FoodScience & Technology
ART, Peshawar
Rice News Headlines…
 New Paddy Season in Pakistan ‫3۔۔‬
 The UAE’s sustainable food plan involves growing rice &
developing ‘soil’ …5
 Enough seeds benefit over 150k farmers in CAR ...6
 PhilRice Batac recognizes partners in seed …8
 New, free fertilizer app for rice available on PlayStore …9
 Ensuring Food Security in Pakistan…11
 Southern food bowl…18
 Mindanao leaders ask Congress to review rice …23
 State Tribal Museum Virtual Tour: Indigenous Methods of Food
Preservation by ‘Paraja’ Community…24
 Basmati rice tote bag is a real thing…25
 NESG vs CBN: A Battle of Wits?...26
 Punjab govt committed to doing more for rice sector…30
 IMF in 'initial stages' of Argentina loan talks: official…31
 Pb Govt Gives 50 Pc Subsidy On Micronutrients: Langrial
 Funding options for agriculture in Nigeria expands with N50 bln
scheme…33
 Rice, Sugar, and Pulses Lead India’s Agricultural Exports…36
 NFA still has P10-B for palay procurement…37
 India could lose basmati rice market in Iran to Pakistan as US
sanctions disrupt payments…39
 As low prices beset local farmers, PH expected to import more
rice…41
 Rice imports lowest in 20 years, agric exports drive …
 China's impact on poor Brazilians: prices of staples skyrocket,
black beans 30%, rice 20% ...46
 PhilRice mobile app to help optimize fertilizer dosages…47
 Bengaluru: Re-exam to be held for NLAT candidates who faced
glitches….48
 Buhari laments devastation of over 450,000 hectares of rice
farms ON … 48
 Angono SK Council trades recyclable plastic bottles for foodstuff,
face mask, face shield…50
 Heavy Monsoon Rains Benefit Punjab; Worst Affect Sindh, KP:
Arif Goheer … 53

Today Rice News Headlines...
New Paddy Season in Pakistan
Contributor :Dr. Hamid Malik
New Paddy arrival has started, in fact Coarse varieties like Super fine is already in the market for
the last couple of weeks. New Super fine is healthy , hope, milling recovery, a key economic
factor, will be better. Same is for hybrid Paddy , reaching to peak arrival gradually. Some
farmers have 90/100 maunds Paddy output which means a healthy return for farmers. I was a bit
worried on Super fine Paddy rates(started 1600/1700/40 kg & Hybrid 1350/40 kg, very high for
hybrid Paddy keeping in view Indian competition. Exporters have bought Rs57/kg ex Karachi
last week.
Better sense prevailed & Hybrid Paddy price on 27 August came down to 1225/1250 per 40 kg
& Miller's sold to Karachi based Exporters at 58.5 ex Karachi means FOB 274$/ton ,a
competitive price to compete lowest offers from India. But much lower than Vietnam &
Thailand. I guess Pakistan Rice Exporters will be able to sell like 250,000/300,000 or even more
tons in next 3 weeks or by end of September. The prevailing price of Non Basmati in Pakistan is
a win situation for Exporters & Miller's also & is a workable level for Pak Non Basmati
Exporters. Miller's should try to keep Hybrid Paddy buying at 1200/40 kg level & should not
start a price war due to lucrative international prices. I believe global Export market will remain
bullish till end of September as from October onward new arrival in Thailand & Vietnam will
start, Myanmar & Cambodia , so far, has good standing crops & prices may come down heavily
in November onward. One plus point is that global production of milled rice will remain less
than 500 million Tons(495 tons precisely ,mainly due to lower area of Paddy in Thailand &
damage caused by floods in Bangladesh.
India is going to have a big crop back to back & is also sitting on huge rice stocks. Pakistan is
expected to make new record of 7.6 million tons this year. Movement of Pak RS is very critical
for export earnings. I Will be able to comment next week. Very important is Paddy crop in Sind.
Recent heavy rain in Mirpurkhas, Sangarh, Lower Sind might have get damaged in some area.
Production figure will be reviewed in next 10 days. Non Basmati crop in Punjab is so far healthy
but rain will continue in Sept also which is bad for Non Basmati & good for BASMATI. In my
opinion this is best time to cover your position in Non Basmati NOW.
Thanks Allah, this year Owing to above average rains, favorable weather, Technical/financial &
logistics support of global institutions like Mars Foods/Sustainable Rice Platform & untiring
/sustainable efforts of Hybrid Seed Research/Marketing Companies lead by Guard Agriculture
Research , Hybrid production of Paddy is 4 tons to 4.4 tons /Acer(9.9/10.9 tons/hectare) in
Allahabad District Kasur Punjab. Hybrid Paddy is arriving since last 10 days nearing peak
arrivals. This is phenomenal & prodigious performance by Hybrid Rice sector which will give

15/20% increase to Farmers income this year. This is a promising start of new Rice season(Sept
to August) in Pakistan.
By accepting one fact that from last year ,Hybrid Seed has started encroaching our Basmati area.
Farmers income & Financial empowerment is prime factor to opt for Hybrid or Basmati/Basmati
like varieties. Basmati(Super & 515) & Basmati like varieties(C1121, 1509, Kissan) has failed to
increase Farmers income even by 10%. Super & 515 Basmati varities are max giving 43
mounds/Acer in best managed & most fertile Kalar area) & but Ave in Gujranwala Division,
Sheikhupura, Hafizabad is 36/37 maunds ,which means a Punjab Provincial average of these
elite areas is 37/38 maunds average. Farmers sell their Paddy from last week of October to end of
December. After that stockists hold it & sell at higher rates. Avearage realization of Basmati
Paddy at Farm gate has been Rs2385/40 kg which means per Acer earning Rs2385 x
38maunds=Rs90,600. This is 145/150 days crop from sowing of Nursery. More costly input &
water guzzling crop. Hybrid Paddy which is 70/80 days crop, its production this year (last 20
days) from Allahabad Chunian, Kangan pur, Mundi Ahmed Abad in District Kasur & Basirpur in
Deepalpur) is 100/110 maunds per Acer. Crops started at 1300 came down 1150 & mostly at
Rs1200/ 40 kg which means Rs114,000/Acer income, an increase of 20 % income of Farmers.
So it's natural, logical & inevitable that Hybrid sowing will increase in Dist Kasure, Deepalpur,
Okara, Arifwala, Pakpattan, Vehari, Nankana sahib, Sheikhupura gradually. One more reason for
increased area of Hybrid Rice is Heat & drought resistant varieties , Farmers friendly after sales
efforts/care by Hybrid Seed Cos. In case of Basmati Seed & crop management , because it's Govt
sector seed, least post sowing care & follow up. Another factor is authenticity of Hybrid Seed.
Below standard Hybrid Seed import can't be ruled out but it's negligible & importers & Brand
sellers are accountable.
Another point raised above is Paddy crop devastation this year in Sind. Germination was
excellent & weather remained favourable. But early down crop in Sangarh, Random Muhammad
Khan ,Matli, Talhar belt which was ready for harvest got hit & heavy rains damaged by 15%
standing crop, where expected production was 100 maunds/Acer in that belt. We r expecting
10/15 Crop damage overall in Sind but this has nothing to do with Seed quality. Due to Hybrid
Paddy Sind Farmers income has doubled(traditional Irri 6 on right bank of Indus river a is 55
maund. Rate is same. Inspite of crop loss in Lower Sind, I m expecting a record production of
milled Rice at 7.6 million tons to 8 million tons. Please look at post rain effected Paddy in
Golarchi last week with milled Rice which had got damaged/amber color.
I fear if we don't increase potential of our traditional Basmati, Super & 515 & Basmati like
varieties C1121, 1509 etc, Farmers will shift to Hybrid Paddy even in Kalar & Basmati
traditional areas.
# # #

The UAE’s sustainable food plan involves growing rice &
developing ‘soil’
By Matilda Coleman
September 13, 2020
With the UAE almost wholly reliant on food imports, food security is a national priority.
In recent months, the Covid-19 pandemic has heightened domestic concerns as global supply
chains of imports were disrupted.
The crisis also prompted renewed debate about how best to boost local agriculture and foster
farming innovation.
Searing summer temperatures, little rainfall and a landscape dominated by arid desert, has meant
that the UAE’s agricultural activities have been relatively restricted to small areas.
Grassroot thinking
That could soon change, however, say academics at Abu Dhabi’s Khalifa University, who are
developing ‘artificial soil’, made up of almost 90% desert sand.
Their goal is for the product to be used by local, and eventually regional farmers, to grow plants
& vegetation.
The soil created in the laboratory resembles the texture, porosity & fertility of soils found in
Thailand & Ukraine.
If patent approved, scientists in the capital are optimistic that it has the potential to transform the
UAE’s burgeoning home-grown crops sector.
To dig deeper into the topic, Inspire Middle East’s Rebecca McLaughlin-Eastham caught up with
Associate Professor, Dr. Saeed Alkhazraji, a passionate innovator who helped co-create the
earth.
He began by explaining the soil’s unique qualities, which should be given extra consideration in
light of the UAE’s extreme weather conditions.
“Farmers have to be aware that any crop they’re trying to grow [here] needs to be dealt with in a
specific way, to allow them to maximize their yield,” he said. “For example, if they want to grow
a plant that is difficult to grow in the UAE, perhaps you need to use a greenhouse along with the
soil that we are making.”
The soil’s potential to contribute to the local food supply chain, is significant, the Professor went
on to tell .
“There are many different crops that are challenging to grow in the UAE, crops that sustain
human lives, like rice and wheat – because of their excessive need for water.” said Dr. Saeed
Alkhazraji. “The soil that we developed can allow us to have better water management, because
it allows us to have a higher water retention than typical soils around the UAE.”
Desert rice
With rice a food staple of the UAE, the Ministry of Climate Change and Environment recently
announced a joint research programme with the Republic of Korea, aimed at cultivating rice in
the desert.The seeds were sowed back in 2019, cultivated using a water-saving drip irrigation
system, and the rice was recently harvested.
Preliminary results for the first project of its kind in the region, indicated a yield of 763kg of rice
per 1,000 square metres.

This prompted the Ministry to say that, if successful on a large scale, the project had the potential
to shape the future of agriculture and be replicated in other arid regions.
Sharjah’s organic growth
The location of the rice initiative was the emirate of Sharjah, which according to scientists, is an
emerging hotbed of agricultural innovation in the UAE.
It is also home to the Sharjah Research Technology & Innovation Park, a place which supports
famers & harnesses new technology to produce sustainable local food all year round.
The Park notably contains a 150-square metre farm, and an eco-friendly Merlin Agrotunnel,
capable of producing a ton of organic fruits & vegetables each month.
In keeping with the country’s environmental and sustainable farming goals, all produce is
irrigated with seawater desalinated via solar energy.
SRTI’s CEO, Hussain Al Mahmoudi, predicts that in the next 5 years at least 30 percent of the
UAE’s food will be domestically produced.
He told Inspire that continuous research and development into new farming innovations &
agricultural technology will accelerate the sector’s growth in the years ahead.
“Since the inception of the Park, we’ve started to promote things like hydroponics technology,
aquaponics technology & tunnel farming. And they’ve all taken off,” he said. “At the moment,
we are [also] using Artificial Intelligence to study how aquaponics works, with relation to fish.
How the fish really move and how much food they eat.”
Sustainable agriculture
When asked about the economic feasibility of large-scale farming projects in the UAE, and how
production and harvesting costs could be kept down, Al Mahmoudi had this to say:
“I think the feasibility is there, because the UAE has an abundant amount of land. A lot of
farmers in the UAE, especially the national ones, get free land. If you couple this with the cost of
doing business here, it is also relatively low compared to other parts of the world. There’s also
the fantastic infrastructure – in terms of ports and airports and storage and other things.”
On the subject of the UAE being one of the world’s top rice importers, SRTI’s CEO is convinced
that producing home-grown rice would be game-changing for the domestic market.
“I think we can play a strategic role in growing rice,” he said. “We have the infrastructure, both
soft infrastructure and public sector, to really become a regional player in producing rice and
ensuring food security.”
https://upnewsinfo.com/2020/09/13/the-uaes-sustainable-food-plan-involves-growing-rice-
developing-soil/
Here are the latest news in the rice sector. Here are the important details you should know:
Enough seeds benefit over 150kfarmers in CAR,
Region 2

More than 150,000 farmers in Cordillera Administrative Region (CAR) and Cagayan Valley
(Region 2) benefitted from certified inbred seeds given by the Rice Competitiveness
Enhancement Fund (RCEF)-Seed Program this wet season.
“The program allocated almost 400,000 bags, which is enough for the rice farmers in CAR and
Region 2. This allotment can be distributed anytime,” Engr. Leo C. Javier, Department of
Agriculture-Philippine Rice Research (DA-PhilRice) in San Mateo, Isabela, branch director,
said.
Through partnership with the local government unit, the station had accomplished over 100
percent of its target delivery in said regions amidst community quarantine.
“We strictly followed physical distancing and wearing of masks to help ensure a safe
environment for the farmers receiving seeds,” Javier said.
Farmer-beneficiaries planted the certified inbred rice seeds, distributed at 20kg/bag, in almost
200,000 ha or 92 percent of the target area.
Implementers of RCEF-Seed Program also established 10 technology demonstration farms with
60 farmer-partners from both regions. Called PalaySikatan, the technology demonstration farms
showcase regional varieties, one location-specific technology, and newly released inbred rice
varieties. Machines such as walk-behind and riding-type mechanical transplanters are also
introduced to reduce production cost.
Furthermore, more than 90,000 farmers received Gabay sa Makabagong Pagpapalayan leaflet,
which contains information about modern farming while trainers and farm schools will receive
PalayCheck System booklet and primer, respectively.

The RCEF-Seed Program, which is a component of Republic Act 11203 or Rice Tariffication
Law signed by Pres. Rodrigo Duterte, allots P10 billion fund every year for the rice farmers.
Sponsored by Sen. Cynthia Villar, the program is a six-year government initiative to help the
farmers compete in the international rice market.
Bureau of Plant Industry, DA-regional offices, provincial and municipal government units, seed
grower associations, and policymakers assisted in program implementation in CAR and Region
2.
PhilRice leads the RCEF-Seed Program and is the government’s lead agency on rice research
and development mandated to help ensure a rice-secure Philippines. With eight stations across
the country, its programs and projects are in line with the DA’s “Masaganang Ani, Mataas na
Kita” battlecry. For more information about the Institute’s program, queries can be sent thru
PhilRice Text Center (0917 111 7423) or email prri.mail@philrice.gov.ph.
Source: Philrice
PhilRiceBatac recognizes partners in seed distribution
program
An official of the Department of Agriculture-Philippine Rice Research Institute (DA-PhilRice) in
Batac City, Ilocos Norte lauded partner-agencies in implementing a government’s flagship
program benefitting over 55,000 farmers in Region I.
Executed amidst a health crisis, the Rice Competitiveness Enhancement Fund (RCEF)-Seed
Program delivered more than 200,000 bags of free certified seeds of the region’s recommended
rice varieties.
“Despite limitations and danger posed by the pandemic, we’re happy that we have provided
farmers the needed seeds in time for the planting season. This is due to the cooperation, strong
commitment, and partnership among concerned agencies and local government units. We’re also
grateful to the support of our congressmen,” Dr. Reynaldo Castro, PhilRice Batac director said.
In Laoag City, Ilocos Norte, City Agriculturist Marilyn G. Martin shared that more than 1,000
bags were distributed to almost 1,000 farmers in two hours during Enhanced Community
Quarantine without breaking health and safety protocols.
“We minimized contact and held the distribution in a wide venue so that physical distancing is
observed,” she said.
The RCEF Seed Program, a six-year government initiative to help the farmers compete in the
international rice market, also helped some cooperatives expand their memberships.

“Many women-farmers applied for membership in our cooperative after receiving the free high-
quality seeds. They learned it’s easier for farmers to access government support if we’re
organized,” Anita Benito, president of Nasalukag Women’s Multi-purpose Cooperative in
Solsona, Ilocos Norte said. She added that their members expect higher yield from RCEF seeds
based on the crop’s stand.
Lauding the effort, Sen. Cynthia Villar, author of the Rice Tariffication Law, in which the
RCEF-Seed Program is a component, also cited the program implementers in a social media
post. Pres. Rodrigo Duterte signed the Rice Tariffication Law, which allots P10 billion fund
every year for the rice farmers.
“Congratulations to PhilRice Batac, DA-Regional Field Office 1, provincial/municipal/city
agriculture offices, and LGUs in implementing the RCEF- Seed Program in the Ilocos Region!
Let’s continue to support our farmers,” she posted.
PhilRice leads the RCEF-Seed Program and is the government’s lead agency on rice research
and development mandated to help ensure a rice-secure Philippines. With eight stations across
the country, its programs and projects are in line with the DA’s “Masaganang Ani, Mataas na
Kita” battlecry. For more information about the Institute’s program, queries can be sent thru
PhilRice Text Center (0917 111 7423) or email prri.mail@philrice.gov.ph.
Source: Philrice
New, free fertilizer app for rice availableon PlayStore

Right amount of nitrogen fertilizer for rice can now be generated through a free android
application developed by the Department of Agriculture-Philippine Rice Research Institute (DA-
PhilRice).
Derived from a four-stripped handy “ruler” called Leaf Color Chart (LCC), the PhilRice Leaf
Color Computing Application (PhilRice LCC App), which can assess nitrogen status of the rice
plant, is now available on Google Play Store
(https://play.google.com/store/apps/details?id=ph.gov.philrice.lcc).
Designed for farmers, extension workers, researchers, and students, the mobile app generates
nitrogen recommendations in just under a minute based on the digital images of intact rice leaves
photographed directly from the field.
Ailon Oliver Capistrano, PhilRice senior researcher, said that app users only need to lay down
the topmost, fully expanded rice leaf on smartphone’s front camera to capture its image with the
surrounding light as source of luminance.
According to him, nitrogen levels of rice plants can be measured from a digital photo of its
leaves, which is strongly correlated with actual leaf nitrogen concentrations.
“The app measures the intensity of green color based on the captured leaf images and converts
this into values correlated with the amount of nitrogen in the leaf,” he explained.
Different camera-types are normally installed in smartphones with variations in terms of
resolution. The research team found that regardless of brand, smartphone cameras will deliver an

almost similar reading at 5MP. This means that app users can install the app even in an
inexpensive smartphone brand and benefit from its function.
“The app is more accurate than the LCC as it eliminates subjective perception of users, which is
prone to variation or errors. The app is also handy for new users or adopters who have no
training or experience in the use of the manual LCC,” Capistrano said.
Meanwhile, Dr.Karen Eloisa Barroga, PhilRice deputy executive director for development, said
the app is useful for farmers who often apply too much nitrogen especially during wet season,
which results in pest infestation.
“Many farmers are now online. They also have their children to assist them. I’m sure that the
LCC app will quickly find its way to them to guide them in the accurate application of nitrogen,”
Barroga said.
January-April 2020 data of the DA-PhilRice Facebook page showed that 75% of its clients are
farmers who frequently use the Messenger. The rest are students, extensions workers, and
researchers.
Recommendations derived from the LCC app will be showcased in field demonstration while
farmers engaged through Facebook will be encouraged to download the LCC app.
Recently, Agriculture Secretary William Dar announced that the department will harness state-
of-the-art tools, systems and technologies to modernize and industrialize Philippine agriculture to
ensure food supply.
“By digitalizing agriculture, our farmers and fishers can achieve bigger yields of higher quality
products, at a more cost-efficient and sustainable manner….,” he said.
Philrice
Ensuring FoodSecurity in Pakistan
A significant percentage of Pakistanis face food insecurity and it is not because food is not
available but rather due to a lack of affordability and inequitable distribution. Pakistan’s
agriculture sector faces complex challenges that hinder productivity and yields which are much
lower than many regional countries.
Magazine Desk
September 12, 2020
Over the last few years, Pakistan has seen a drastic decline in the production of staple crops, such
as wheat, rice and cotton, due to natural disasters, volatile security situation and low economic

growth. As a result, the national nutrition survey 2018 points out that an estimated 37 percent of
the population faces food insecurity.
In Pakistan, food availability is not the real problem – the real issue lies in affordability and
inequitable distribution across the country that leads to price distortions, supply chain losses and
inadequate availability in some districts. The situation is exacerbated for the vulnerable groups of
women and children, and two-thirds of the population who live in rural areas that lack market
access.
In 2018, the government approved a comprehensive national food security policy, terming it the
most critical element of national security. This policy aims to enhance food availability, improve
food access, enable food utilization and ensure food stability by promoting a more sustainable
food production and distribution system in Pakistan.
However, agriculture faces a complex set of challenges that limit its productivity and, thereby,
hinder the goal of achieving food security. Some of these issues have been highlighted as
follows:
Self-sufficiency in fertilizer production
Before 1980-81, Pakistan imported well over 50 percent of its annual fertilizer requirements.
During the 1980s, the situation improved considerably after the expansion of the local industry;
however, the country was still a net importer of urea till 2012. The Fertilizer Policy 2001
encouraged investments in new fertilizer plants by providing regionally competitive and fixed
gas prices.

As a result, the local fertilizer players invested around PKR 162 billion in state-of-the-art
production facilities, which led to an increase of around 1.9 metric tons per annum of urea
production capacity. These investments enabled the country in attaining self-sufficiency of urea
through production from indigenous gases and reduced the reliance on imports which also
resulted in significant foreign exchange savings for the national exchequer.
Against a subsidy of PKR180 billion on lower feed gas price, the fertilizer sector has passed on a
benefit of Rs 600 billion over the last decade to the farmer community in the form of reduced
urea rates compared to international prices. Furthermore, the fertilizer sector is committed to
making continuous investments for the reliable operations of these plants and utilizing the idle
capacities to allow stable production of urea and contribute towards ensuring national food
security.
Going forward, the government must make commercially viable decisions which support the
national interest and provide to small farmers. The recent GIDC decision by the Supreme Court
could be a setback for the fertilizers industry, along with other industrial sectors such as textiles,
as it would be liable to pay huge sums (PKR 111 billion on non-concessionary gas and PKR 69
billion on concessionary gas, if applicable) even though the impact of GIDC was not passed on
due to price intervention by the government.
Further, the GIDC payment over two years would put an immense financial constraint on the
industry and jeopardize future investment plans of the businesses. In case GIDC becomes
payable on concessionary gas as well, it would make urea price increase imminent that would
directly impact the farmer community and agriculture sector of Pakistan.
The need for smart subsidies
According to the Pakistan Bureau of Statistics (PBS), around 10 percent of large landowners
hold 52 percent of the agricultural land in Pakistan. As part of its 100-day agenda, the PTI
government had envisioned a smart subsidy program to provide cheaper agricultural inputs to 3
million small scale farmers that own up to 5 acres of land and ensure food security with
affordable prices for the country.
Currently, the government provides an across-the-board subsidy on urea produced using
imported RLNG that disproportionately benefits the large landowners rather than small farmers

who need it the most. As per calculations, the large landowners get 52 percent of across the
board national subsidy, while the smallest farmers only get 19% of the government subsidy.
By introducing a sticker-based mechanism to roll out smart subsidy, as being already
successfully done for phosphates in Punjab, the government can ensure that small subsistence
farmers earn more and catalyze the growth of the agriculture sector. Through the smart subsidy
mechanism, much higher discounts on urea to small and medium-sized landowners can be made
possible.
Low crop yield and use of nutrients
Crop yields in Pakistan have considerably lagged behind our regional peers primarily due to
usage of non-certified/substandard seeds, improper nutrients application, lack of mechanization
and low agricultural research & development expenditure.
To ensure the availability and accessibility of food, Pakistan needs to boost yield per acre of
crops, modernize agricultural practices and promote public-private partnerships for greater
investments into research and development in the sector.
One of the primary reasons behind the country’s lackluster crop productivity is the lack of
application of phosphorus and potash fertilizers.
Experts have forecasted that with the use of balanced fertilizers, wheat productivity can be
enhanced by 35% and maize by 40%. A report by the Food and Agriculture Organization (FAO)

highlights the over-application of ‘Nitrogen’ by Pakistani farmers (77 percent of the total
nutrient application) against a recommended rate of 57 percent.
While manufacturers like Engro Fertilizers have introduced fertilizers comprising Nitrogen (N),
Phosphorous (P) and Potassium (K) in a balanced blended product (NPK), which is an optimal
combination of the key nutrients required for soil health, there is a need to create greater
understanding among farmers about the impact on agricultural productivity of these nutrients.
Read more: Pakistan’s Unusual and Unprecedented Food Inflation – What is driving it?
The Punjab government has previously implemented a targeted subsidy scheme for small-scale
farmers to encourage the application of Phosphorous (P) and Potassium (K) fertilizers, which
resulted in an increase in the use of these farm nutrients by 56 percent over the last couple of
years. To promote balanced use of fertilizers and improve agricultural output, the subsidy should
only be provided on Phosphate, Potassium and micro-nutrients products.
Earlier this year, the government had announced a subsidy package of PKR 37 billion on
fertilizers. Based on the impact on agricultural productivity, the subsidy on Nitrogen-based

products was rightly withdrawn, and it was decided to extend smart subsidy on Phosphatic (P)
and Potassium (K) products only. However, the subsidy scheme is yet to be executed as there is a
misalignment of provinces on the implementation mechanism.
Climate change
According to the latest Global Climate Risk Index ranking, Pakistan is the fifth most vulnerable
country to climate change. Recent past serves as a good example of what is yet to come as
temperatures are rising, rainfall and seasonal patterns are becoming increasingly unpredictable,
and natural disasters of floods, droughts and heatwaves are now more common.
Climate change has increased water demand of crops by up to 30 percent while decreasing the
yield by around 18 percent and pushing the prices of food higher. Small landholders, who
account for more than 80 percent of the total farmers, are most susceptible to the way climate
change is negatively impacting crops.
Therefore, policy measures by the government need to focus around limiting the impact of
climate change as a foremost priority. While climate change is inevitable, adaptation strategies
must be applied by bringing together knowledge and technology, developing institutional
capacity and introducing policies that help sustain crop production.

Access to capital/credit
Small and medium-sized farmers in Pakistan have limited access to formalized agri-loans due to
which they are encircled in a continuous debt trap at the hands of unorganized financing entities.
Therefore, the issue of organized financial inclusion of small farmer needs to be looked at from a
broader perspective because of its wider socio-economic implications.
The small farmers are heavily dependent on local arthis/middleman for credit availability due to
reluctance of the formal sector and its cumbersome processes. However, it has been realized that
without organized financial inclusion of these farmers, the agricultural sector of Pakistan will
continue to experience low growth and this, in turn, would limit the country’s progress as well.
Financial inclusion and private sector participation in this endeavor must be based on financing
across the entire ‘farm to fork’ value chain. There is a need for targeted, value chain aggregated
projects and cooperatives to improve efficiencies and credit worthiness of small farmers, as seen
from examples in Africa and India.

Collateral Management Companies (CMC) can help create an ecosystem that will improve
warehousing and crop grading practices, provide credit access and price discovery mechanism to
farmers and enable electronic trading of commodities. Technology should be leveraged to design
e-credit and e-subsidies initiatives that can be supported by the private sector.
The future of food security in Pakistan depends on how well the government achieves its
objectives outlined in the national food security policy. However, this would require strong
coordination and trust between the provincial and federal governments.
At the same time, the need of the hour is to engage with all stakeholders in the agricultural value
chain and take rational decisions that promote investment and public-private partnerships for the
overall well-being of small and medium-sized farmers.
https://www.globalvillagespace.com/ensuring-food-security-in-pakistan/
Southern food bowl
DAVAO CITY—Agriculture production areas in Mindanao have been
prepped up to provide a continuous supply of basic food items to quarantined
cities and capital towns of Mindanao and beyond, while local governments
have asked the national task force on Covid-19 to relax strict quarantine
protocols in agricultural areas.Mindanao regions such as the Caraga Region in
the northeast and Soccsksargen Region in central south are given various
forms of support, including seeds, farm inputs and financial assistance. Beneficiaries are mostly
hard-up farmers and their families.
Cornfields on a hilltop in Bukidnon in the Northern Mindanao region.
Livestock and crops such as vegetables and corn, which are considered secondary products of the
province, have also been given ample support in terms of research, marketing and a wider area
for planting.
The Mindanao Development Authority (MinDA), the government’s socioeconomic planning unit
for this southern Philippine island, has pushed this program as one of the key initiatives for
recovery in Mindanao in the midst of the Covid-19 pandemic.
The regions
In the first quarter of the year, all economic activities, including the wide areas of agriculture,
were at a standstill due to the quarantine restrictions imposed by the various local government
units (LGUs).
As food became scarce due to dwindling supplies, authorities eventually allowed the unrestricted
passage of trucks and vehicles carrying vegetables, crops and meat from the production areas.
The restriction on the movement of produce from farm to market was also lifted.In Agusan del
Sur in the Caraga Region, the Department of Agriculture (DA) Regional Office provided rice
seeds and fertilizer subsidies to farmers in time for the wet cropping season. Considered as the
region’s rice-producing province, Agusan del Sur was allocated P125.8 million, or 60 percent, of
the P207-million Rice Resiliency Project budget of the region.
“With a coastline of 36,289 kilometers, the fifth-longest in the world, and surrounded by seas
and ocean, it is unthinkable that the Philippines still imports fish from countries whose fishermen

could be fishing in our waters.”—Mindanao Development Authority Secretary Emmanuel F.
Piñol
This move is seen to increase local rice production through the use of high-quality seeds and
fertilizer given to an estimated 30,000 rice farmers covering 32,277 hectares.
The regional DA office also allocated P7.4 million under its Expanded SURE Aid Fund as cash
assistance to 296 farmers and fishermen whose incomes were badly affected by the enhanced
community quarantine since the early phase of the lockdown.
The farmers and fishermen came from the municipalities of Las Nieves, Nasipit, Buenavista and
Cabadbaran City, Agusan del Norte, and Bayugan City, Agusan del Sur. The financial assistance
was released by Baug Carp Beneficiaries Multipurpose Cooperative and the Bayugan Achievers
Multipurpose Cooperative as partner conduits.
Sustained food production
OFFICER-IN-CHARGE Assistant Regional Director for Operations Rebecca Atega said the
government wanted to ensure sustained food production despite the challenges and restrictions of
the pandemic.
The rice hybridization program started two years ago in 2018, when hybrid seeds used by the
farmers increased production by 17.11 percent in 2019, indicating the adaptability of hybrid
seeds in the farms. The barangays of Lemon, Basag and Ampayon in Butuan City were chosen as
the technology demonstration sites, covering 100 hectares.
The demonstration farm program would be supported by the SL Agritech Corp., SeedWorks,
Bioseed, Ramgo, Bayer, Pioneer, Syngenta, Advanta and LongPing, alongside the DA-Philippine
Rice Research Institute (DA-PhilRice) and Phil-Sino Center for Agricultural Technology
(PhilSCAT).

“As the country transitions to the so-called new normal, the Department of Agriculture-Caraga
continues to come up with different interventions and advocacies to promote a sustainable and
secure food production through the Plant Plant Plant program,” said Director Abel James I.
Monteagudo.
In this September 5, 2015, file photo, fishermen line up to have their catch of tuna weighed at a
fish port in General Santos City, nicknamed the Tuna Capital of the Philippines. The city is the
regional center for commerce and industry of the Soccsksargen region.
Other interventions include the distribution of various vegetable seedlings and seeds given to
nonfarmers who want to have their own vegetable gardens. Just in the first week since the
program was introduced, no less than 200 individuals have availed themselves of this assistance.
In addition to vegetables, the DA-Caraga promoted backyard corn production and launched the
Project Maisan sa Nataran, or Pro-Mais, as the latest addition to the integrated and diversified
home food production program.
Corn has its health benefits, such as controlling diabetes, preventing heart ailment, and lowering
of hypertension. Through the project, individuals who have available area of at least 100 square
meters and were willing to plant corn were given one-fourth kilo corn seeds.
To further encourage people to patronize corn, free tasting of rice-corn blend—or cooked rice
mixed with corn—was also conducted. To complement this food production initiative, the
Organic Agriculture (OA) program also handed out organic concoctions that the people could
use and apply on their vegetables to ensure these would be safe for them and their families to
consume.

The World Bank-funded Philippine Rural Development Program also saw the construction of the
warehouse, seedling production building and seedbed for rubber tree growers. This infrastructure
support amounting to P8.4 million further re-energized the farming sector in the Caraga Region.
The collaboration between the regional DA, Department of Public Works and Highways and the
various LGUs in Caraga made possible the completion of 121 farm roads costing P1.9 billion.
From 2015 to 2019, a total of 185.6 kilometers of farm roads was constructed in the region.
Other initiatives included the turnover of 50 head of cattle to backyard raisers in Agusan del
Norte, vegetable production by the Soccsksargen Police Regional Office, turnover of P3.7
million worth of farm inputs and tools to the farmers of Makilala and Tulunan towns in North
Cotabato, and turnover of 100 bags of conventional hybrid corn seeds, 2,664 packs
of pinakbet seeds, 276 kilos of mungbean seeds, 200 bags of inorganic fertilizers, 70 rolls of
laminated sacks, 76 rolls of high-density polyethylene pipes and 150 units of water plastic drums
at Sitio Flortam, Barangay Batasan, Makilala.
Self-reliance
MinDA Secretary Emmanuel F. Piñol has encouraged LGUs in Mindanao to be self-reliant, “as
the country grapples with the effects of Covid-19.”
Piñol believes “that in order to restart the economy and bolster socioeconomic development in
the island-region, every local government unit should rely on their own concerted efforts and
abilities in this time of recovery since the national government, on the other hand, has been
devoting its resources to the ongoing fight against the pandemic.”
“LGUs cannot expect a lot from the national government.
The national government has no funds now. In fact, the funds of agencies have been sequestered
[for Covid response]. So, there’s not much money to talk about right now,” Piñol said in a mix of
English and Filipino, noting that majority of government funds were realigned to combat the
pandemic.
He said MinDA must refocus its programs to help the economy regain its momentum once again
and yield concrete results “that will be felt on the ground despite the presence of financial
difficulties and limitations.”
Addressing his management team, he said: “Our objective is to really restart the economy of
Mindanao. Here’s what we should consider in prioritizing our programs: what program will have
immediate effect that can quickly benefit our people and restart the economy,” he said.
While efforts for economic restoration remain under way, he said it is also the right time for
LGUs “to unleash their individual coping mechanisms and maximize resources under the new
normal.”
“So, whatever we do in Mindanao right now will be guided by the philosophy of self-reliance.
We will have to encourage LGUs to really invest,” Piñol added.
In his recent visits to Impasugong, Talakag, Sumilao and Lantapan (Imtasula) in Bukidnon, he
urged the mayors to look for ways to prop up their local economies.
“You buy equipment. Don’t be scared to borrow. Buy the needed equipment because you have to
build your own roads right now.”
Among the Covid-19 response programs that MinDA is actively taking on are the Balik
Probinsya, Bagong Pag-asa BP2 program, Sustainable Agriculture Project for Imtasula areas and
MinDA Tienda.
It has also started to validate the different fish center sites to double Mindanao’s current
aquaculture and fisheries production of two million metric tons annually by year 2025.

“With a coastline length of 36,289 kilometers, the fifth-longest in the world, and surrounded by
seas and ocean, it is unthinkable that the Philippines still imports fish from countries whose
fishermen could be fishing in our waters,” he said.
Piñol also asked local chief executives to urge lawmakers to review the rice importation law,
Republic Act 11203, saying that farm-gate prices of palay had dropped from P22 a kilo two
years ago to just P11 per kilo in many areas of the region during harvest season.
He reported also that the municipality of Kalawit in Zamboanga del Norte has earmarked a 200-
hectare plantation area for the first 200 families coming home from Metro Manila under the BP2
program.
MinDA already turned over on August 18 a P500,000 support fund for the survey of the
proposed BP2 site.
The province will give each family a house and the whole community of returning families will
work as one in undertaking agricultural production.
“In contrast, the Kauswagan Model has a compact area of 6.3 hectares where the beneficiaries
will undertake organic chicken and vegetable production,” he said.
This week, Piñol suggested that grains storage complexes with modern dryers and silos be
established in at least four corn-producing regions of Mindanao to ensure food security on the
island and propel the economy adversely affected by the pandemic.
“This problem is not new. As a farm boy who grew up among rice and corn farmers, I saw the
frustration and disappointment in my late father and other farmers’ faces when their earnings
after four months fell way below what they had expected. This trapped them in an endless cycle
of poverty where they borrowed money to plant and paid back with what they harvested,
oftentimes leaving them in deep debt,” Piñol stressed.
He likewise discussed the measures which are the salient features of the Mindanao Corn
Development Program that MinDA is crafting, and which will be submitted as a priority project
for inclusion in the Mindanao Peace and Development Program, or Rise Mindanao.
Image credits: Teoderico Decierdo | Dreamstime.com, Hugo Maes |
Dreamstime.com, minda.gov.ph, Jamesbox | Dreamstime.com
https://businessmirror.com.ph/2020/09/13/southern-food-bowl/
DA gives P53.8-Magri-machinery to Davao rice farmers
ByRuth Palo
September 13, 2020
DAVAO CITY: The Department of Agriculture (DA) gave a total of P53.8-million worth of
agri-machinery to rice farmers in the Davao Region under the Rice Competitiveness
Enhancement Fund mechanization component held recently in Tagum City, Davao del Norte.
DA Secretary William Dar, who led the distribution, highlighted the agency’s priority programs
to help rice farmers reduce the cost of production and increase their income. Included among the
agri-machinery were 32 floating tillers, 23 hand tractors, 13 combine harvesters, 13 four-wheel

tractors, 8 riding-type transplanters, 4 walk-behind transplanters, one reaper and one precision
seeder.
https://www.manilatimes.net/2020/09/13/news/regions/da-gives-p53-8-m-agri-machinery-to-
davao-rice-farmers/767552/
MindanaoleadersaskCongressto reviewrice
importationlaw
By: Jigger J. Jerusalem - @inquirerdotnet
Inquirer Mindanao / 02:51 PM September 13, 2020
CAGAYAN DE ORO CITY—Mindanao leaders are asking Congress to revisit the Rice
Tariffication Law, or Republic Act 11203, in a bid to address the sharp drop in the income of rice
farmers whose production now competes with supply from abroad.
The call came through a resolution of the governing board of the Mindanao Development
Authority (MinDA) that counts among its members local and regional leaders of the government
and private sector.
MinDA is the government’s chief coordinating agency for fostering development in Mindanao.
Among the members of its governing board are Bangsamoro chief Minister Ahod Ebrahim and
Sen. Juan Miguel Zubiri.
Secretary Emmanuel Piñol, MinDA chair, noted that the farm gate price of palay or unmilled rice
in some parts of Mindanao has dropped to P11 per kilo, from P22 per kilo two years ago.
The price of P11 per kilo is below the average production cost of P12 per kilo, Piñol said.
Implementation of the Rice Tariffication Law began in March last year, doing away with
quantitative limits to imports of the staple crop while also setting higher tariffs that would go into
the Rice Competitiveness Enhancement Fund (RCEF) to support the local rice industry.
The law aims to provide affordable rice prices for consumers as well as raise the income of rice
farmers.
However, Piñol, who used to be the country’s Agriculture chief, said there is “irrefutable evidence
that the unimpeded rice importation has caused injury to the local rice industry and rice farmers of
Mindanao.”
“The resolution was presented during the MinDA governing board meeting as among the issues
and problems which could affect Mindanao’s economic recovery following the coronavirus
pandemic,” he explained.
Mindanao has about 1.2 million hectares of rice farms, generating over 350,000 jobs.
If left unchecked, Piñol said the worsening situation of rice farmers could adversely affect the
economic recovery efforts of Mindanao.
Piñol cited studies conducted by the Federation of Free Farmers showing that while rice consumers
benefited from the lower rice prices, at an estimated value of P6 billion, rice farmers lost about P80
billion because of reduced income from very low farm gate prices.

“Additional losses which have yet to be quantified were also reported in ancillary activities to rice
production, including land preparation equipment utilization, milling and processing and by-
products like rice bran and rice hulls,” he added.
He revealed that Sen. Zubiri, who voted for the Rice Tariffication Law, has expressed openness to
revisiting the measure.
“If it is really causing injury to the rice industry and hardships to our farmers, then it is only fair
that we review the law,” Piñol quoted Zubiri as saying.
JE
https://newsinfo.inquirer.net/1334801/mindanao-leaders-ask-congress-to-review-rice-
importation-law#ixzz6XzWWQaZm
State Tribal Museum Virtual Tour: Indigenous
Methods of FoodPreservationby ‘Paraja’Community
STATE AT LARGE
By Pragativadinewsservice
On Sep12, 2020
Bhubaneswar: As a new initiative of the ST&SC Development Department, State Tribal
Museum goes virtual. Visitors can visit the museum virtually by opening the Twitter pages
@scstrti, @stscdev in every Sunday.
On 13th September visitors can visit the indigenous methods of food preservation by ‘Paraja’
community. Paraja are the agrarian tribe settled in the districts of Koraput, Nawarangapur,
Malkangiri, Kalahandi, and Rayagada in the Southern Odisha. For the vast majority of ‘Paraja’
who live in Odisha, life revolves around paddy cultivation.
To ensure food and seed security, the ‘Paraja’ follow traditional methods of food preservation.
They preserve food grains like rice, finger millet, black gram, and green gram. They prefer to use
organic pesticides and pest control techniques.
The ‘Paraja’ community of Koraput cultivates open-pollinated local varieties of rice. Indigenous
traditional knowledge of ‘Paraja’ tribes reflect that they use leaves of the crown flower, neem,
and bitter gourd. These leaves are mixed with cow dung and cow urine and the mixture is
allowed to ferment for 15-20 days. The resultant liquid is filtered and used as pesticide spray.
If a pest attack is observed, interestingly ‘Paraja’ use spiders for natural pest control. An odd
number of Sala Palm leaves (5,7,9) each bearing cobwebs is planted among the growing
seedlings. The practice being a combination of traditional beliefs and scientific observance. The
Goleki or Bamboo grain bin serves as the storehouse of the family’s rice. The grain beans are
placed in a small room with the ‘Paraja House. The second way of preserving rice is in a wooden
storage bin known as ‘Gaadia’.
Using traditional practices, the ‘Paraja’ preserves grain, pulses, and vegetables. The ‘Paraja’
maintain the biodiversity of the Koraput region favouring open pollination rather than hybrid
seeds. Their traditional practices, the use of organic pesticides, and insecticides natural pest
control, and indigenous methods of food preservation are studied by Agriculture Scientists.

‘Parajas’, much before the invention of refrigerators and other machinery, were trying to
preserve using their own indigenous methods. Different kinds of vegetables mainly mushroom,
Potato, ginger, cauliflower, and many other vegetables were preserved often pretty long time
using their indigenous method and using organic materials, said Prof. Dr. Akhil Bihari Otta,
Director, SCSTRTI.
https://pragativadi.com/state-tribal-museum-virtual-tour-indigenous-methods-of-food-
preservation-by-paraja-community/
Basmati rice totebag is a real thing
September 11, 2020

NDTV – Next time you get Basmati rice, don’t throw the sack away – instead, try re-purposing it
into a trendy tote bag. Sounds rather like a strange thing to do? Many on Twitter would agree
with you if you answered yes. In fact, thousands of people on the microblogging platform were
left stunned to discover that ‘Basmati rice tote bags’ are a thing that actually exist.
The bags came to light last week when a Twitter user wrote “I can’t believe this is real” while
sharing a picture of a Basmati rice tote bag, which is exactly what it sounds like – a sack re-
imagined into a bag.
More details on Weekend’s Borneo Bulletin
https://borneobulletin.com.bn/2020/09/basmati-rice-tote-bag-is-a-real-thing-2/
NESG vs CBN: A Battleof Wits?
September 13, 2020 4:58 am
SimonKolawolelive By Simon-Kolawole, Email: simon.kolawole@thisdaylive.com, sms: 0805
500 1961
SIMONKOLAWOLE! BY SIMON KOLAWOLE
Amidst the series of tough decisions rolled out by President Muhammadu Buhari as the Nigerian
economy gasps for breath under the weight of low oil prices and the coronavirus pandemic, a
mini-war broke out between the Central Bank of Nigeria (CBN) and the Nigerian Economic
Summit Group (NESG) last week. In a statement with the title “Matters of Urgent Attention”,
NESG dished out subtle and not-so-subtle criticisms of the CBN over its development finance,
and questioned the transparency and sustainability of the interventions.
The CBN, in a reply dripping with fury, defended its record and called
to question the intellectual authority of the NESG leadership.
As journalists, we love “two fighting” because it gives us a litany of
headlines. But this is not a joke. We are discussing matters that affect
the life of every Nigerian — rich and poor, high and low, northerners
and southerners, schooled and unschooled. NESG was set up as a non-profit private sector
organisation in 1996 with a mandate “to promote and champion the reform of the Nigerian
economy into an open, private sector-led globally competitive economy”. Therefore, the face-off
between NESG and CBN should be seen as a “contest of ideas” on the economic health of
Nigeria and Nigerians rather than some media relief from the socio-economic tension.
Although NESG raised many issues, most were aimed at the CBN: the efficiency of the
agriculture intervention under the anchor borrowers programme; transparency in foreign
exchange transactions, disbursement of intervention funds, and price ﬁxings “without appropriate
policy clarity”; provision of “immunity” for CBN officials in the newly amended Banking and
Other Financial Institutions Act (BOFIA); “distortions” in the liquidity and interest rate
management; and the “quantitative easing” (what you and I would call pumping money into the
economy) by the CBN to fund the large deficit caused by low oil prices and effects of the
pandemic.

For one, NESG got it wrong when it said CBN was seeking immunity for its officials under the
amended BOFIA. The provision, according to the CBN, “protects the Federal Government, the
Central Bank of Nigeria and their respective officials against adverse claims for actions or
omission in good faith exercise of powers under BOFIA and other specified statutes including
the Central Bank of Nigeria Act and regulations…” In fact, the “immunity” has been there as far
back as 1991. This error makes NESG vulnerable to accusations of pursuing an agenda and
questions its credibility, given the calibre of professionals within its ranks. Some also find it a bit
curious that the NESG chose to go to the media rather than utilise its communication channels
with the CBN and federal government.
But immunity is the smallest issue, if you ask me. The NESG wants the government to re-open
our borders “given its negative impact on trade and employment”. Our work in ECOWAS, it
said, “must also effectively harness trade opportunities within the sub-region”. That is, allow
trans-border trade to continue unhindered. In an ideal world, you cannot fault the logic. In fact,
some will argue that shutting the borders is primitive. But what do you do when, in practice, free
trade becomes an open invitation to the smuggling of rice, eggs, cars, fuel and even arms —
thereby ruining your own economy and security? This was not the intention of those who wrote
the ECOWAS treaty.
Ideally, you say “beef up security then”. But what do you do when the people beefing up the
security are the ones facilitating the illegal trade? The incentives to be corrupt or to corrupt the
system are so high. It’s a no-win situation. Open the borders, you are damned. Close the borders,
you are damned. Yet we all know that the borders cannot be closed forever. But some will ask:
what is CBN’s business with the borders? It’s a good question. The CBN has, for all intents and
purposes, become a major stakeholder having financed agriculture extensively and feeling
threatened that if the borders are re-opened so soon, the gains particularly in rice and poultry
farming will go down the drain.
The issue of border closure as it affects the economy should ordinarily be addressed by the
ministry of finance or presidency, rather than the CBN. The bank still ventured an opinion,
though, stating: “Benin Republic imports as much rice as China and nearly as much frozen
chicken as the UK… In which country does the NESG think all these rice and chicken end up?
How then can a Nigerian rice farmer or poultry owner survive?” However, the border closure
also comes with unintended consequences. I would love to suggest how to effectively curb the
illegal trade but I have no idea. ECOWAS countries should sit down and develop the solution.
For now, Nigeria is the biggest victim.
On the power sector, I was initially critical of Mr Godwin Emefiele, the CBN governor, for the
apex bank’s intervention. I kept asking: why should the CBN be providing loans to the power
sector? Today, I look back and conclude that but for the CBN, the sector would have collapsed
long ago. The liquidity problem was grave. The fiscal authorities did not want to approve tariff
increase for obvious reasons. You would be justified to argue that it was not CBN’s business to
intervene. But doing nothing, especially when you have the leeway to provide the financial
oxygen, also has dire consequences for the economy. Let’s now hope the industry will be saved
with the new tariffs.
We can apply similar arguments to agriculture intervention. I wrote a sceptical article some years
ago when Emefiele announced a forex ban on 41 import items, including rice. I argued then that
what we really needed was a fiscal policy, not just a monetary one, to grow our agriculture and
become self-sufficient. This is typically the position of free market economists. To them,

restricting imports under any guise is a no-no. We could not legally ban rice import because of
WTO rules, but we could stop funding rice imports. We could help our local industry grow and
reduce the pressure on the exchange rate. That was what CBN did and we have clearly made
progress in rice farming.
The NESG made a valid point, in my view, about the sustainability of CBN’s interventions,
especially the deficit caused by minimising the impact of COVID-19 on the economy. Their
argument is that the government should “consider a strong communicating (communication)
strategy that engages the people and prepares them for tougher times ahead whilst the current
reforms take effect”. It said that the “current business as usual disposition is not sustainable”.
Except there is something unsaid here, I think this is a fair point. The CBN cannot afford to
pump money into the system for too long; at some point, the bubble will burst. It’s going to be a
painful journey to recovery.
Still, the CBN defended its “quantitative easing” by drawing parallels with how central banks
across the world reacted to the pandemic by expanding their balance sheets through monetary
measures that would otherwise be considered “unorthodox”. The US Federal Reserve Bank
provided loans to non-banking institutions and bought corporate bonds usually classified as
below investment grade. The bank pumped a stimulus of $3 trillion into the American economy,
and there is no plan to stop until the economic impact of COVID-19 begins to ease significantly.
We don’t know when. The European Central Bank also pumped in $1 trillion as the pandemic bit
harder in the European Union.
Even the Bank of England that initially said it would resist “political influence” ended up
opening its treasury to the UK government to save the economy. The UK government, in trying
to save jobs, undertook to pay as much as 80 percent of staff salaries for certain businesses. It
provided “bounce back” loans of maximum £50,000 to small businesses, repayable over five
years after a one-year moratorium. The government also did an “eat out to help out” scheme to
save the eateries and restaurants. In all, the Bank of England injected over £750 billion into the
UK economy by buying government and corporate bonds. Nothing is cast is stone about
economic theories.
By the way, I am not against this battle of ideas. We can have a decent debate devoid of rancour
and ill will. For instance, some think we should re-open our borders; others think it is premature
except we want to hurt the little progress we have made. Check both ideas. Neither is 100
percent right or wrong. In all policy decisions, there are always trade-offs. We left the border
open for decades and suffered immense damage to the economy and security — but it also
promoted legitimate trade and created legitimate jobs. We’ve now closed the border and have
reduced smuggling and protected some sectors of the economy, but legitimate trade is also
suffering! There must be a way out.
Emefiele has come under heavy criticism but the whole truth is that the economy is in a big
mess. Fiscal mess. Monetary mess. We are in desperate times. We are taking desperate measures.
Even before the coronavirus pandemic, we were living on borrowed time. Our overreliance on
oil was bound to drown us one day. The severe distortions that come with poorly managed oil-
powered economies have damaged the normal economic, social and political order. All the
arguments about trade, agriculture and monetary policies, etc, are products of an economic and
socio-political system built on a feeble petrodollar foundation. Let’s hope we have finally
reached the turning point.

AND FOUR OTHER THINGS…
HARDENED CRIMINALS
Kaduna state lawmakers have passed a law prescribing castration for rapists. For sure, we need
to tackle the rape menace with all our might, but I’m not sure the lawmakers got medical advice.
They would have discovered that castration (removal of the testes, except they are talking about
cutting off the penis entirely) does not prevent rape. A castrated man can still have sex but he
cannot father a child. Castration can affect the ability of a man to have an erection, but even that
can be taken care of with aphrodisiacs and medication. We should also realise that rapists are
perverts — they are not just interested in having sex, but having it without restraint. It is not that
I have a better punishment for rapists, but castration is not it. Overrated.
NAKED ABUSE
Close to rape is sexual harassment. The Obafemi Awolowo University, Ile Ife, organised a
webinar on Wednesday inspired by Naked Abuse, a book by celebrated columnist and Ife
alumnus, Mr Olusegun Adeniyi, on sexual harassment in African universities. In his remarks,
Vice-President Yemi Osinbajo spoke my mind when he said: “The victim must always be seen
as the victim. There cannot be an excuse, especially given the power configuration between
students and lecturers, that the victim could have somehow invited the abuse upon themselves.”
We only justify perfidy when we blame the victim. Imagine a robber accusing you of inviting
robbery on yourself by having a car! Twisted.
GANA GONE
The death of Terwase Akwaza, aka Gana, “the most wanted bandit in Benue state”, remains a
mystery. Did soldiers kill him extra-judicially or was he really taken down in a gun fire
exchange? It is scary, all the same, that he appeared to have enjoyed the sympathy of some
politicians. I remember that in the early 2000s, some Niger Delta boys were bred as militias by
one or two governors, only for them to become Frankenstein monsters that went completely out
of control. Has it become a Nigerian culture now? The early growth of Boko Haram was
fertilised by politicians who used and dumped the youth. Today, thugs and bandits operate
fiefdoms all over the country. Terrifying.
OSHIOMHOLE VS OBASEKI
On Saturday, the governorship election will hold in Edo state. The key contest is a reverse of the
2016 poll: Mr Godwin Obaseki, then of APC now of PDP, squaring off with Pastor Osagie Ize-
Iyamu, then of PDP now of APC. After he got into office, Obaseki fell out with his Comrade
Adams Oshiomhole, his benefactor. This governorship battle is, therefore, not an ordinary one. If
it goes Obaseki’s way, that means he has taken out two heavyweights with one blow. If it goes
Ize-Iyamu’s way, Oshiomhole would have made his point and Obaseki would likely fade into
political oblivion. Clearly the stakes are extremely high. My plea to all: play well, play fair.
Sportsmanship.
https://www.thisdaylive.com/index.php/2020/09/13/nesg-vs-cbn-a-battle-of-wits/

Punjab govt committed to doing more for rice sector:
minister
Recorder Report
12 Sep 2020
LAHORE:The Punjab government has been giving 50 percent subsidy on the micronutrients and is
committed to introducing more measures to facilitate rice sector.
Under the Prime Minister's Agricultural Emergency Program, subsidy is being given to farmers
for the approved varieties of paddy seeds, agricultural machinery, large and small components
and herbicides with a hefty amount of Rs. 6.32 billion. Punjab Minister for Agriculture Malik
Nauman Ahmad Langrial stated this while speaking at a launching ceremony of Journal of the
Rice Exporters Association Pakistan at the Lahore Chamber of Commerce and Industry.
LCCI President Irfan Iqbal Sheikh, Senior Vice President Ali Hussam Asghar, Chairman Rice
Exporters Association Shahjahan Malik, Member Rice Exporters Association Captain Taimur
Ahmed (retd), Pir Nazim Hussain Shah and Chief Adviser to the Minister of Agriculture Punjab
Shahid Qadir were also present on the occasion.
Under the Prime Minister's Agricultural Emergency Program, various projects are being
implemented worth Rs. 300 billion. In these projects, subsidy is being given to farmers for the
approved varieties of paddy seeds, agricultural machinery, large and small components and
herbicides with a hefty amount of Rs. 6.32 billion; the Minister said adding that rice crop is
important for our nutritional needs as well as earning foreign exchange. Pakistani basmati rice is
loved all over the world for its aroma and quality.
The Minister said the farmers will be given trans-planters and rice harvesters at 50 percent
discount and rice choppers will also be given to the farmers on subsidy. He said that the LCCI
will be given representation in the agriculture committee of the Punjab government. He said the
government will coordinate with rice exporters in regard with the use of pesticides. Competitions
should be held among the farmers to encourage production, adding that the government is
working to develop long grain basmati which is internationally acceptable.
During the financial year 2018-19, rice was exported 2.19 million tonnes and country earned
foreign exchange of $ 2.04 billion. Under the Prime Minister Agricultural Emergency Program, a
plan to increase paddy production per acre has been launched in 15 districts of Punjab which will
increase the average production of coarse, and basmati varieties of paddy by 20 and 10 men per
acre respectively, he said.
The provincial government is striving to make the agricultural sector active and developed and
for this purpose, despite financial constraints, priority is given to the agriculture sector by the
federal and provincial governments, he added.
Speaking on the occasion, Senior Vice President LCCI Ali Hussam Asghar said that there is a
lack of Research & Development, especially in developing hybrid seed varieties for Basmati.
Other countries, despite of the fact that we have most suitable soil for basmati cultivation, have
developed more hybrid varieties of rice. He also said the most effective remedy for lowering the
cost of production is increasing the per acre yield. This has been witnessed in case of coarse

variety where hybrid rice replaced IRRI and took tremendous yield jump in Sindh. He was of the
view that there is a need to work in collaboration with the private and public research institutes
to introduce new varieties especially hybrid in Basmati rice, which could ensure quantum jump
in its production thus leading to more export surplus as well as the economic well-being of the
farmers.
He stressed upon the need of participation of private sector in seed development; the current
MNFSRD regime for seed certification needs to be shifted to truth-in-labelling regime. He
pointed out the areas that need intensive work including seed development, Better farm practices
and higher yields through water management and mechanical transplanting and Research and
Development.
Copyright Business Recorder, 2020
https://www.brecorder.com/news/40018169/punjab-govt-committed-to-doing-more-for-
rice-sector-minister
IMFin 'initial stages'ofArgentina loantalks: official
The IMFis in the early phase oftalkswith Argentina over a newfinancing programme,and is gathering
information onhowbestto help the country,confirms spokesperson.
IMF SPOKESMAN GERRY RICE. | IMF
The International Monetary Fund is in the early phase of talks with Argentina over a new rescue
package, and is gathering information on how best to help the crisis-hit nation, a fund official
said Thursday.
"We are in the initial stages of the process," IMF spokesman Gerry Rice told reporters, noting
that fund officials are focused on "fact finding" and "listening to the Argentine authorities for
their sense of priorities."
After defaulting on its debt in May for the ninth time in history, the government of President
Alberto Fernández in late August reached a deal with foreign creditors to restructure US$66
billion in debt after months of tense negotiations, giving it US$37.7 billion in debt relief.
Once a deal seemed assured, Buenos Aires formally opened consultations with the IMF to agree
new terms on the repayment of a US$44 billion bailout loan agreed in 2018 (the original credit
line was worth US$57 billion, though not all of it was received by Argentina).
The talks with the Washington-based crisis lender are "taking place in what I would characterise
as a very constructive climate," Rice said at a press conference, but there is no date yet for a
sending a mission to Argentina to further the discussions.
Key topics in the talks include the government's "plans to strengthen macroeconomic stability,
kick start growth and job creation and reduce poverty, unemployment and, of course, to help
Argentina fight the pandemic, which is an additional serious challenge," the official said.

Argentina's troubles have been exacerbated by the coronavirus pandemic, with more than a third
of the country's population of 44 million living in poverty.
Inflation stands at 40 percent and the IMF expects Latin America's third largest economy to
shrink by 10 percent this year.
https://www.batimes.com.ar/news/economy/imf-in-initial-stages-of-argentina-loan-talks-
official.phtml
Pb Govt Gives 50 Pc Subsidy On Micronutrients: Langrial
Fri 11th September 2020 | 10:06 PM
Punjab government was giving 50 percent subsidy on the micronutrients and also
committed to introduce more measures to facilitate rice sector
LAHORE, (APP - UrduPoint / Pakistan Point News - 11th Sep, 2020 ) :Punjab government was
giving 50 percent subsidy on the micronutrients and also committed to introduce more measures
to facilitate rice sector.
These views were expressed by Minister for Agriculture Malik Nauman Ahmad Langrial during

the launching ceremony of Rice Exporters Association of Pakistan (REAP) Journal at
the Lahore Chamber of Commerce and Industry (LCCI) on Friday.
The minister said that the farmers would be given transplanters and rice harvesters at 50 percent
discount,a dding that rice choppers would also be given to the farmers on subsidy.
He said that the LCCI would be given representation in the agriculture committee of the Punjab
government.
Speaking about the measures which government had planned to implement, the minister said
that government would coordinate with rice exporters in regard with the use of pesticides.
He said that competitions should be held among the farmers to encourage production, adding that
the government was working to develop long grain Basmati which was internationally
acceptable.
Speaking on the occasion LCCI Senior Vice President Ali Hussam Asghar said that there was a
lack of Research & Development, especially in developing hybrid seed varieties for Basmati.
Other countries, despite of the fact that we had most suitable soil for Basmati cultivation, have
developed more hybrid varieties of rice.
He said the most effective remedy for lowering the cost of production was increasing the per acre
yield.
Ali Hussam Asgahr was of the view that there was a need to work in collaboration with the
private and public research institutes to introduce new varieties especially hybrid in Basmati rice,
which could ensure quantum jump in its production thus leading to more export surplus as well
as the economic well-being of the farmers.
LCCI Vice President Mian Zahid Jawaid Ahmed, Chairman REAP Shahjahan Malik, Pir Syed
Nazim Hussain Shah and LCCI executive committee members were also present on the occasion.
https://www.urdupoint.com/en/business/pb-govt-gives-50-pc-subsidy-on-micronutrients-
1027311.html
Funding options for agriculture in Nigeria expands with N50
bln scheme
14 SEP 2020
THE NATION
Published 14 Sep,2020 via The Nation - The Agricultural Credit Guarantee Scheme (ACGSF)
Amendment Act assented to by President Muhammadu Buhari increased the share capital of the
fund from N3 billion to N50 billion. The new scheme is in line with Central Bank of Nigeria’s
(CBN’s) move to increase lending to the agricultural sector and support increased food
production. The fund provides a guarantee for bank loans for agriculture and boost lending to
agriculture. Financing of production farm machinery, production equipment, processing, storage
and transportation are now allowed under the amended ACGSF Act, writes COLLINS NWEZE.

Before now, farmers were the least that banks would consider for loans. Such loans, if approved,
were deemed lost from the outset, especially when advanced to smallholder farmers.
Today, the story is different. Both the smallholder farmers and established ones can take a shot at
bank loans. Also, lenders, which previously saw agricultural loans as high risk, are now seeing
the potential of how much a well-priced credit can add to their balance sheets and profitability.
The amendment of the Agricultural Credit Guarantee Scheme (ACGSF) Bill raised share capital
of the fund from N3 billion to N50 billion, a step that allowed more farmers to access
agricultural loans.
A breakdown of the ACGSF Amendment Act 2019 shows that the sharing ratio is Federal
Ministry of Finance (60 per cent) and Central Bank of Nigeria (40 per cent). The maximum for a
non-collaterised loan under the scheme is now N100,000.00, the maximum amount for
collaterised loan granted to individuals, cooperative societies and corporate entities is now N50
million, up from N10 million.
Also, complete Agricultural Value Chain financing is now allowed as well as the financing of
production farm machinery, production equipment, processing, storage and transportation.
This Act amends the ACGS Fund Act Cpa. A11, Laws of the Federation Nigeria 2004, to
enhance capital base, expand coverage of the scheme, increase the size of the loanable fund,
increase membership and give more powers to the board.
Further details of the ACGSF showed that the amended section 2 of the Principal Act enacted by
the National Assembly of the Federal Republic of Nigeria, now requires that the Minister shall
appoint a chairman, a representative of the Nigerian farmers, a representative of the Federal
Ministry of Finance, and a representative of the Federal Ministry of Agriculture. The fund was
increased from N100 million to N50 billion, which may be increased by such amount the Board
may determine and that amount shall be contributed in a proportion as the board may prescribe.
President Buhari signed and certified the ACGSF Bill into law.
CBN Governor Godwin Emefiele identified agriculture financing as the way forward for the
economy. He explained that part of its developmental role, the CBN has in collaboration with the
Federal Government established the ACGSF for promoting agricultural enterprises in Nigeria.
The fund, he added, will complement other special initiatives of the apex bank in providing
concessionary funding for agriculture.
According to Emefiele, “there was no need to allocate scarce forex to rice importers when vast
amounts of paddy rice of comparable quality produced by poor hard-working local farmers
across the rice belts of Nigeria are wasted, and farmers are falling deeper into poverty at a time
the government exports their jobs and income to rice-producing in overseas countries.
“A few decades ago, Nigeria was one of the world’s largest producers of palm oil but, today, we
import nearly 600,000 metric tonnes while Indonesia and Malaysia combine to export over 90
per cent of global demand.
“Under these circumstances, I believe it is appropriate, and in fact, expected, that the CBN
contributes to protecting the jobs and incomes of local farmers, using some of the same
principles Western economies use to justify the protection of their farmers through huge
subsidies.”
Noting that agriculture remained the largest employer of labour, the CBN chief said the sector
contributes about 24.2 per cent of the country’s Gross Domestic Product (GDP).

Emefiele described as unacceptable that the greatest share of the demand for forex goes directly
to importing agricultural produce.
He said: “So, the CBN has both a direct and indirect rationale to ensure that this sector is revived
in a significant way. In this regard, we are gratified that the CBN’s Anchor Borrowers’
Programme (ABP), together with other initiatives like the CACS and Nigeria Incentive-based
Risk Sharing System for Agricultural Lending (NIRSAL), are proving to be successful in several
states.”
He explained that in Kebbi State alone, over 78,000 smallholder farmers cultivate about 100,000
hectares of rice farms. It is expected that over one million metric tonnes of rice will be produced
in that state alone this year.
Bankers’ Committee and Agric Financing
The CBN and commercial banks, under the aegis of the Bankers’ Committee, restated their
commitment to expanding bank lending in agro-business to discourage importation of goods that
can be produced locally.
The bankers also stated their resolve to explore large corporates as anchors to lend to participants
across the value chain to improve the capacity of Nigeria’s agro-businesses to create sustainable
jobs and inclusive growth.
The bankers affirmed their commitment to financial deepening of the economy, improving
financial access to key sectors of the economy, innovative solutions for the critical finance of
generation, provide finance for small and medium enterprises, among others.
“We note that four basic commodities that are consumed by Nigerians – rice, wheat, fish and
sugar jointly account for a significant amount of the country’s annual import bill. We are
convinced that the nation can produce these consumables in required amounts to meet our
domestic consumption needs. With its attendant impact on Gross Domestic Product (GDP) and
job creation, agriculture remains a critical focus sector of the financial system,” the Committee
added.
Stakeholders speak on agricultural potential in the economy
The Group Chief Executive Officer (GCEO) of Ecobank Transnational Incorporated (ETI), Ade
Ayeyemi, has said Nigeria can feed Africa’s estimated 1.2 billion people if it harnesses the gains
of the agricultural value chain.
According to him, success in Nigeria’s agricultural sector means the reduction in the demand for
foreign exchange to import food items into the country and the development of the agribusiness
value-chain with a resultant effect in the creation of a new breed of entrepreneurs as well as jobs
for the teeming population.
Ayeyemi spoke at the Ecobank Agribusiness Summit in Lagos. The summit had its theme
“Unlocking Productivity and Investment Opportunities Across Nigeria’s Agribusiness Value
Chain”
Also speaking, Minister of Agriculture and Rural Development, Mohammed Nanono affirmed
that the administration of President Mohammadu Buhari is committed to finding a lasting
solution to issues bothering on food security affecting the country.
He stressed on the need for viable synergy and collaboration between relevant stakeholders in the
agricultural sector, to further promote its contribution to the Gross Domestic Products (GDP) of
the country.
“Nigeria’s potentials and prospects make the agricultural sector a pilot for economic
stabilisation, diversification and growth in the country. Indeed, the sector is a major contributor

to the national Gross Domestic Product (GDP), contributing about 27 per cent to the GDP and
the biggest in job creation in the non-oil sector”.
Nanono disclosed that the Federal Government has also earmarked N600 billion to enhance
farmer access to agricultural financing in the country. He said that about 2.4 million farmers
were targeted to benefit from the interest-free facility, designed to encourage the application of
modern technologies in rice and cash crop cultivation.
Nanono said the initiative would support farmers to achieve improved productivity, enhance self-
sufficiency and food security in the country. He said: “We have commenced farmer registration
exercise to capture their information, number of farmlands and locations.
“Also, the beneficiaries will be monitor to ensure effective utilisation of the facility, and mobilise
participation in subsequent programmes.”
ACGSF’s Linkage Banking Initiative
Through the ACGSF Self-Help Group Linkage programme, farmers are encouraged to form
themselves into groups of between five and 15 based on common purpose (informal and
informal). The groups are encouraged to undertake regular savings with a partner bank of their
choice. After operating such savings for six months, they could then apply to the partner bank for
a loan. The amount saved provides part cash security for loans to saving groups.
Bank loans to the groups are normally in multiples of the balance in their savings account at the
time of the application for the loan. The group savings security would not be drawn on until the
loans are fully repaid. The aim of the Self-Help Group Linkage Banking is to inculcate the
culture of savings and banking habit in-group members as well enable them to build up resources
for financing their farm projects without recourse to bank borrowing on the long run.
Understanding the ACGSF Amendment Bill
The ACGSF Amendment Bill, sponsored by Senator Andy Uba, a representing Anambra South
senatorial district, was targeted at improving the prospects of commercial agriculture as an
integral contributor to the Nigerian economy. This it seeks to do by expanding the capacity to
guarantee credit facilities extended to Nigerian farmers, and making the regulation of such
finances in consonance with international best practices.
Furthermore, the new Act will facilitate better management of agricultural funds, enhance greater
transparency, promote export business and safeguard the delivery of dividends to Nigerian
farmers.
Uba disclosed that the law would drive the course of Nigeria’s economic diversification.
Analysts said that with the signing of the ACGSF bill into law, the Federal Government is
reiterating its commitment towards repositioning the agricultural sector and enhancing its overall
contributions to the government’s overall earnings.
Copyright © 2020 Vintage Press Limited. Provided by SyndiGate Media Inc. (Syndigate.info).
https://www.salaamgateway.com/story/funding-options-for-agriculture-in-nigeria-expands-
with-n50-bln-scheme
Rice, Sugar, and Pulses Lead India’s Agricultural Exports
September 14, 2020
Gurneel Kaur

India assures UNFAO for an undisrupted supply of agricultural commodities as it sees a surge of
23% in agricultural exports. Rice, Sugar, and Pulses lead India’s agricultural exports.
Increase in India’s Agricultural Exports
While several countries witnessed disruption in trade, India’s agricultural exports increased
23.24% to Rs 25,553 crore during March-June this year, 4,818.2 crores more than the previous
year. Also, India’s agrarian GDP has registered an increase of 0.5% from 2017-18 to 2018-19.
Data released by WTO reveals that India’s agricultural exports and imports in the world
agriculture trade in 2017 stood at 2.27% and 1.90%, respectively.
While basmati rice worth Rs 8,591 crore tops the list of farm exports, non-basmati rice
contributed the highest rise of Rs 2,392 crore to the Agri exports. Non-basmati rice and sugar
together account for more than a 95% increase in the Agri commodities export.
India has Enough Stocks to Meet Global Demand
Agriculture commissioner S K Malhotra, in FAO’s 35th Asia-Pacific regional Conference,
assured that India has enough stock not only for domestic needs but also for global supply.
Further, he added that the government is focusing on penetrating wellness food under the “Brand
India” campaign into foreign markets.
Agriculture ministry officials stated that India’s agricultural export basket has a limited scope.
Though India’s rice is demanded globally, wheat is still not competitive at the international level.
Besides, India produces pulses to meet domestic requirements.
Prompt Action Amid the Pandemic Ensured Timely Procurement and Eliminated Wastage
Experts attribute this surge to the abundant availability of stocks of rice, sugar, and wheat.
Besides, India has also been quick in providing support to farmers during harvesting season amid
the pandemic. Moreover, India has also gained from the rise in Thai and Vietnamese rice prices
owing to poor weather conditions. Besides, the depreciation of Indian rupee against the dollar
facilitated exporters to quote lower prices. Not only has this but carryover stocks of sugar also
facilitated more significant shipments to Indonesia and Brazil. The country had also supplied its
excess wheat stocks to Lebanon and Afghanistan. Shipments to the African region, Malaysia,
the Philippines, and Russia have increased this year.
In all, India has the prospects of gaining immensely due to the mentioned reasons. It will need to
continue providing quality products in the international market to sustain the rise in agricultural
exports.
https://www.grainmart.in/news/rice-sugar-and-pulses-lead-indias-agricultural-exports/
NFA still has P10-Bfor palay procurement
Published September 14, 2020, 3:03 PM
by Madelaine Miraflor
For the remainder of the year, the National Food Authority (NFA) still has more than P10
billion budget to buy as much as 10 million bags of locally produced unhusked rice, a top
official of the state-run grains agency said.

In a text exchange, NFA Administrator Judy Dansal said NFA is still set to buy 10 million
bags of palay from rice farmers for the remaining part of 2020. If this isn’t enough, she said,
the agency could still buy more since it has “credit lines available.”
“For this year, we have P7 billion from subsidy, P5.5 billion from corporate receipts that
include our sales of rice, and P2.5 billion from cash and credit lines. So far, we already used
P3 billion for procurement,” Dansal said on Monday.
“Yes [we can buy more palay because] we have credit lines available and the DOF
[Department of Finance] supports us,” she added.
She said this amid calls by some groups for the Philippine government to buy more palay
from farmers so they wouldn’t be forced to sell their produce at current farmgate price of
about P11 per kilogram (/kg) to P12/kg.
In the Philippines, the cost to produce rice is about P12/kg, while NFA, whose sole mandate
has been reduced to buffer stocking for calamities and emergencies after the passage of Rice
Tariffication Law, buys palay at P19/kg.
Every year, NFA gets an annual budget of P7 billion to procure palay, which it sells to local
government units (LGUs) and other government agencies like Department of Social Welfare
and Development (DSWD) to support their relief efforts.
Dansal told Business Bulletin that while NFA could increase the amount of palay it could
buy for this year, the agency couldn’t buy it all because some farmers would still choose to
sell to traders.
“We don’t buy everything. The private traders of course will also buy because they have
clients requiring local rice too,” she said.
At present, NFA procures 33,775 bags of palay per day nationwide in different provinces.
In August, Dansal said it is not the supply, but the lack of rice milling facilities and low
buying price that impedes the agency’s palay procurement.
According to her, NFA’s rice milling warehouse could only cater to 25 percent of its palay
inventory, forcing the agency to keep its contract with private millers, while farmers
sometimes opt to sell their produce to traders when the farm-gate price of palay is higher
than the government buying price.
“The market dictates the price. So if the farm-gate price of palay is high, higher than the
P19/kg buying price of the government, the farmers sell their produce to the private
traders,” she said.
Also on Monday, the Federation of Free Farmers (FFF) pointed to the unabated entry and
unpredictable pattern of rice imports as the main cause for the current drop in palay
farmgate prices.
Data from the Philippine Statistics Authority (PSA) showed that palay prices have been on a
downward trend, averaging P18.39/kg in late August, down about 5 percent from their peak
in May 2020.
Field reports, on the other hand, showed that buying prices, as of September, have already
gone down to as low as P16/kg on a dry basis and to P11/kg to P13/kg for wet or freshly
harvested palay.

The FFF noted that the decline in farmgate prices is surprising considering that imports
from January to August 2020 totaled only 1.66 million tons, or about 25 percent lower than
in the same period last year.
In turn, national rice inventories as of August 1 were about 16 percent lower than in the
previous year, which should also help push the price of palay higher.
FFF National Manager Raul Montemayor attributed the declining prices to speculative
behavior of traders arising from the lack of a clear rice import policy from the DA.
“Many traders are playing safe and buying low because they fear that imports will continue
to come in and flood the market again in the coming months. Last year, they bought palay
from farmers during the first half of the year at relatively high prices and were caught
flatfooted by the massive inflow of imports in the second half of the year. Many of them
could not unload their stocks at a profit and some had to suspend their operations,” he said.
Normally, palay buying prices really go up in September because of the scarce supply of
palay and then go down only during the peak harvest season in October and November.
https://mb.com.ph/2020/09/14/nfa-still-has-p10-b-for-palay-procurement/
India could lose basmati rice market in Iran to Pakistan as
US sanctions disrupt payments
Tehran and New Delhi explore barter trading options even as Iran has stepped up importing
basmati rice from Pakistan.
NAYANIMA BASU 14 September, 2020 12:04 pm IST
File image of India's External Affairs Minister S. Jaishankar (left) with his Iranian counterpart
Javad Zarif | Photo: ANI
New Delhi: India could lose its position as the leading exporter of basmati rice to Iran, with
Tehran now beginning to procure the produce from Pakistan, ThePrint has learnt.
For the first time in decades, basmati rice exports from India to Iran have fallen drastically in the
first half of 2020-21 fiscal owing to disruption in payments, a result of the US-led sanctions.
New Delhi and Tehran are now exploring a conventional barter trading system to address the
rising concerns.
The matter was discussed between External Affairs Minister S. Jaishankar and his Iranian
counterpart Javad Zarif during the former’s recent visit to that country. Jaishankar had made
a stopover in Tehran while on his way to Moscow last week for the Shanghai Cooperation
Organisation’s foreign ministers’ meeting .
India and Iran have been discussing the barter trading system for nearly a year now, ever since
the Donald Trump administration began imposing tough economic sanctions on Tehran.
Iran has said it will buy basmati rice, sugar and medicines from India in lieu of fertilisers. New
Delhi, however, is yet to firm up its decision, Iranian government sources told ThePrint.
Iran is now importing basmati rice from Pakistan while Indian consignments worth Rs 1,500
crore are stuck owing to payment issues, the sources said, adding that Tehran has now asked

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