EU Commissioner Defends Zero Duty Rice Imports from Asian LDCs

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Daily Exclusive ORYZA Rice E-Newsletter
Contents are published with permission of ORYZA.com

Vol 5.Issue XIII
2nd
September,2015

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Bangladesh to Allow Aromatic Rice Exports
Until December 31, 2015
Sep 01, 2015
The government of Bangladesh has extended the time limit for aromatic rice exports until
December 31, 2015 in order to enhance the share of the country's brands in foreign markets,
according to local sources.The time limit for aromatic rice exports expired on June 30 this year,
but the Commerce Ministry issued a notice on August 31, 2015 extending the time frame till
December 31.
However, some exporters expressed concern that the government should have extended the time
limit until June 30, 2016 to strengthen exports. They noted that a delay in the announcement had
led to losses to some exporters as they had to either cancel the orders or hold off shipments. The
added that the most of their orders were taken up by the Indian and Pakistan exporters.

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In June 2015, the government extended the time frame for aromatic rice exports by an year but
maintained ban on parboiled rice exports in order to keep prices stable. The government actually
banned exports of all kind of rice in November 2008, but resumed aromatic rice exports in mid-
2012.
Exporters reportedly wanted the government to resume aromatic rice exports as the grain is quite
popular among Bangladeshis and other South Asians living in Europe, North America, Australia
and the Middle East. Fragrant rice exports earned about $7.34 million in FY 2013-14 , up about
51% from the previous year.
Italian Expo to Focus on Boosting Organic
Rice Yields
Sep 01, 2015

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The Second International Conference on Systems of Organic Rice Production (ORP), which is to
begin today in Italy as part of the Milan Rice Expo, will focus on boosting organic rice yields in
Italy, according to local sources.
The conference will particularly highlight on various methods of cultivation that will increase
organic rice production in the country. It will also highlight the latest research, technological and
agronomic innovations related to organic rice sector.
The organic rice sector is reportedly growing very fast in Italy. The area under the organic rice in
Italy has reached around 9,000 hectares especially in Lombardy and Piedmont. Also
consumption of organic rice and organic rice products such as pasta and bread substitutes
increased about 73% between 2012 and 2014.
The Conference is being sponsored by the University of Milan and the Local Action Group
Lomellina.
EU Trade Commissioner Defends Zero Duty
Rice Imports from Asian LDCs
Sep 01, 2015

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Responding to a written interrogation by an Italian MEP, the EU Trade Commissioner defended
the EU's stance to import rice at zero-per cent duty from the Asian Least Developed Countries
(LDCs) under the Everything But Arms (EBA) agreement.
She noted that the EBA initiative was meant to help LDCs integrate in the global economy. The
main aim of the EBA was to increase exports and thereby help generate growth and reduce
poverty in the LDCs.
The Commissioner noted that the European Commission (EC) is well aware of the importance of
the EU rice industry in the light of imports from the LDCs. However, she said the increasing
imports from the Asian LDCs should be assessed considering the overall situation in the rice
market. She stated that imports from LDCs such as Myanmar have replaced EU rice imports
from non-EBA origins meaning that the EU market has so far been able to absorb these
additional rice import volumes. She reiterated that the EU has been importing only those
qualities of rice, for which the demand exceeds production.
She also noted that the EU price levels are currently high and there are no signs of serious
disturbances to the EU rice market. However, she assured that the EC will continue to monitor
the EU rice market in close cooperation with the member states' customs authorities.
The Association Italian Rice Milling sector (AIRI) have replied to the Commissioner's response
saying that only multinational companies that have invested in those countries are substantially
benefiting from the EBA rule. The Association also noted that Cambodian and Myanmar rice
growers are not getting any positive consequence from increased exports. It reiterated that the
Cambodian press has repeatedly reported that the EBA agreement has encouraged the
circumvention of rules of origin, with a flow of rice from other countries where there is no
exemption of duty to EU.
Responding to a written interrogation by an Italian MEP, the EU Trade Commissioner defended
the EU's stance to import rice at zero-per cent duty from the Asian Least Developed Countries
(LDCs) under the Everything But Arms (EBA) agreement.
She noted that the EBA initiative was meant to help LDCs integrate in the global economy. The
main aim of the EBA was to increase exports and thereby help generate growth and reduce
poverty in the LDCs.
The Commissioner noted that the European Commission (EC) is well aware of the importance of
the EU rice industry in the light of imports from the LDCs. However, she said the increasing
imports from the Asian LDCs should be assessed considering the overall situation in the rice
market. She stated that imports from LDCs such as Myanmar have replaced EU rice imports
from non-EBA origins meaning that the EU market has so far been able to absorb these

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additional rice import volumes. She reiterated that the EU has been importing only those
qualities of rice, for which the demand exceeds production.
She also noted that the EU price levels are currently high and there are no signs of serious
disturbances to the EU rice market. However, she assured that the EC will continue to monitor
the EU rice market in close cooperation with the member states' customs authorities.
The Association Italian Rice Milling sector (AIRI) have replied to the Commissioner's response
saying that only multinational companies that have invested in those countries are substantially
benefiting from the EBA rule. The Association also noted that Cambodian and Myanmar rice
growers are not getting any positive consequence from increased exports. It reiterated that the
Cambodian press has repeatedly reported that the EBA agreement has encouraged the
circumvention of rules of origin, with a flow of rice from other countries where there is no
exemption of duty to EU.
The European Commissioner for Agriculture also reassured the EU rice sector that rice imported
under the EBA agreement won't affect the EU rice sector. "I think we had a reasonable outcome
on rice, that in no way will damage the market situation neither in Italy and in Spain, which is
another of those producers of rice. I dont'hear those vices resulting on the market place
anticipated, arising from the modest amount of import of rice into the European Union as parte
of this agreement,” he said.
Indonesia Allocates $258 Million to Support
Rice Production During Drought
Sep 01, 2015
The government of Indonesia has allocated about Rp 3.5 trillion (around $258 million) to support
rice production during the drought conditions, local sources quoted the Finance Ministry's
Director General for Budgeting.The official told local sources that the fund would be used in
case the drought conditions worsen leading to a drop in rice production. He noted that of the
allocated amount, around Rp 1.5 trillion (around $105 million) would be used to ramp up the rice
reserves at Bulog and use the remaining Rp 2 trillion (around $153 million) to help stabilize
prices.
The Central Statistics Agency (BPS) estimated the El Nino-induced drought to peak from
October to the beginning of next year. Paddy rice planting in Indonesia usually begins in October
followed by harvests in January next year.The state logistics agency Bulog has ruled out any rice

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shortages within the country until December 2015. Bulog reportedly has a rice reserve of 1.5
million tons. The reserves are expected to reach 2 million tons by the end of the year.
One of the Bulog officials noted that the agency is continuing to procure rice and targets to buy
between 15,000 and 20,000 tons of rice every day.Meanwhile, the government is optimistic of
achieving surplus rice production in 2015 despite concerns of drought affecting the rice output
and has ruled out imports this year. The BPS is estimating 2015 paddy rice output to reach
around 75.55 million tons (around 47.6 million tons, basis milled) in 2015. The government is
keen on achieving self-sufficiency in rice production and stop imports over the next few
years.USDA estimates Indonesia to produce around 36.3 million tons of rice, basis milled
(around 57.17 million tons, basis paddy), and import around 1.25 million tons of rice in MY
2014-15 (October - September). Some analysts are forecasting imports to reach about 1.6 million
tons.

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Oryza Overnight Recap – Chicago Rough
Rice Futures Tumble along with Corn and
Beans
Sep 01, 2015
Chicago rough rice futures for Nov delivery are currently trading 26 cents per cwt (about $6 per
ton) lower at $11.900 per cwt (about $262 per ton) during early floor trading in Chicago. The
other grains are seen trading mostly lower in early morning action; soybeans are currently seen
trading about 1.4% lower, wheat is listed about 0.7% higher and corn is currently noted about
0.9% lower.
U.S. stocks fell about 2% on Tuesday, the first day of trade for September, as weak Chinese data
pressured global markets. The Dow Jones industrial average briefly traded more than 400 points
lower in correction territory. The Nasdaq Composite wiped out gains for 2015 and struggled to
stay out of correction. The index traded about 1.9% lower after earlier falling more than 2%.The
S&P 500 was within 0.5% of correction territory. Two sets of key Chinese data disappointed
traders on Tuesday.
The official manufacturing purchasing managers' index (PMI) edged down to 49.7 in August
from 50 in July, while the final Caixin/Markit manufacturing PMI came in at 47.3 in August, the
lowest reading since March 2009. Even more worrying, China's services sector, which has been
one of the lone bright spots in the sputtering economy, also showed signs of cooling, a similar
business survey said. In U.S. economic news, the August ISM manufacturing index fell to 51.1
from 52.7 the prior month for its weakest read in over two years, according to Reuters. Also in
focus will be a speech on the economic outlook on the U.S. economy from Boston Fed President
Eric Rosengren in New York at 1:10 p.m. ET. Gold is currently trading about 0.8% higher, crude
oil is seen trading about 5% lower, and the U.S. dollar is currently trading about 0.3% lower
at 9:15am Chicago time.
Myanmar to Resume Rice Exports from Mid-
September, Says MRF
Sep 01, 2015

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Myanmar, which has imposed a temporary ban on rice exports after heavy rains and floods hit
the northern and western regions of the nations, is likely to resume rice exports in mid-
September, local sources quoted sources from the Myanmar Rice Federation (MRF).Myanmar
temporarily halted rice exports in the first week of August until mid-September when the new
harvest is expected to reach the markets. The decision was also taken to prevent price hikes in
the flood-affected areas. However, since about 15% of paddy fields or about 400,000 hectares
were expected to be damaged by the floods, analysts expected the government to extend the ban
until November 2015 in order to ensure sufficient stocks for domestic consumption as well as
stabilize prices.
“New rice will come onto the market as next month is harvest season, then the market price will
be stable,” the Joint Secretary of the MRF was quoted. “There is enough for local consumption
now, that’s why we will resume exports as scheduled,” he added.The MRF is expecting this
year's rice exports to be lower than last year. “Though we expected to export about 2 million tons
of rice this year, we won’t reach that [target]. Now we expect to export less than 1.5 million
tons,” said the MRF official.

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Myanmar is a net exporter of rice and its exports have been increasing consistently for the past
few years. Myanmar exported around 1.8 million tons of rice in 2014. The MRF expects a paddy
output of around 14 million tons (around 8.96 million tons, basis milled) in 2015.USDA
estimates Myanmar to produce 20 million tons of paddy rice (around 12.8 million tons, milled
basis) and export around 2.2 million tons of rice in MY 2015-16 (January - December 2015).
Oryza Afternoon Recap - Chicago Rough
Rice Futures Fall as Outside Markets Once
Again Weigh on U.S. Grain Prices
Sep 01, 2015
Chicago rough rice futures for Nov delivery settled 29 cents per cwt (about $7 per ton) lower at
$11.865 per cwt (about $262 per ton). The other grains finished the day mostly lower; Soybeans
closed about 1.5% lower at $8.7400 per bushel; wheat finished about 0.3% higher at $4.8625 per
bushel, and corn finished the day about 1.7% lower at $3.6900 per bushel.U.S. stocks fell over
2% on Tuesday, the first day of trade for September, as weak Chinese data pressured global
markets. The Dow Jones industrial average traded about 420 points lower, still in correction,
after briefly falling about 440 points. The Nasdaq composite wiped out gains for 2015 the S&P
500 joined the other indexes in correction territory.
Stocks hit session lows in afternoon trade after Boston Fed President Eric Rosengren said in a
speech that the central bank's jobs target to raise rates has largely been met, but that its inflation
target is not as clear cut. Rosengren is a nonvoting member. Two sets of key Chinese data
disappointed traders on Tuesday. The official manufacturing purchasing managers' index (PMI)
edged down to 49.7 in August from 50 in July, while the final Caixin/Markit manufacturing PMI
came in at 47.3 in August, the lowest reading since March 2009. Even more worrying, China's
services sector, which has been one of the lone bright spots in the sputtering economy, also
showed signs of cooling, a similar business survey said. In U.S. economic news, the August ISM
manufacturing index fell to 51.1 from 52.7 the prior month for its weakest read in over two
years, according to Reuters.
In Europe, equities accelerated selling after the weak Chinese data, with all major bourses in the
region down about 2%.As of early afternoon Tuesday, the Dow Jones industrial average traded
down 382 points, or 2.34%, at 16,138. The S&P 500 traded down 46 points, or 2.34%, at 1,926,
with financials and energy the greatest decliners. The Nasdaq traded down 96 points, or 2%, at
4,680. Gold is trading about 0.7% higher, crude oil is seen trading about 7.4% lower, and the
U.S. dollar is seen trading about 0.5% lower about 1:45pm Chicago time.

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Monday, there were 2,361 contracts traded, up from 1,939 contracts traded on Friday. Open
interest – the number of contracts outstanding – on Monday increased by 17 contracts to 10,963.
Thailand Rice Sellers Lower Most of Their
Quotes Today; Other Asia Rice Quotes
Unchanged
Sep 01, 2015
Thailand rice sellers lowered their quotes for 5% broken rice, 25% broken rice and Hommali rice
by about $5 per ton each to around $350-$360 per ton, $335-$345 per ton and $825-$835 per ton
respectively today. Other Asia rice sellers kept their quotes mostly unchanged
today.
5% Broken Rice
Thailand 5% rice is indicated at around $350 - $360 per ton, down about $5 per ton from
yesterday and about $25 per ton premium on Vietnam 5% rice shown at around $325 - $335 per
ton. India 5% rice is indicated at around $365 - $375 per ton, about $45 per ton premium on
Pakistan 5% rice shown at around $320 - $330 per ton.
25% Broken Rice
Thailand 25% rice is shown at around $335 - $345 per ton, down about $5 per ton from
yesterday and about $25 per ton premium on Vietnam 25% rice shown at around $310- $320 per
ton. India 25% rice is indicated at around $340 - $350 per ton, about $45 per ton premium on
Pakistan 25% rice shown at around $295 - $305 per ton.
Parboiled Rice
Thailand parboiled rice is indicated at around $360 - $370 per ton. India parboiled rice is
indicated at around $355- $365 per ton, about $60 per ton discount to Pakistan parboiled rice last
shown at around $415 - $425 per
ton.
100% Broken Rice

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Thailand broken rice, A1 Super, is indicated at around $315 - $325 per ton, about $10 per ton
from premium on Vietnam 100% broken rice shown at around $305 - $315 per ton. India's 100%
broken rice is shown at around $295 - $305 per ton, about $15 per ton premium on Pakistan
broken sortexed rice shown at around $280 - $290 per ton.
Global Rice Quotes
September 2nd, 2015
Long grain white rice - high quality
Thailand 100% B grade 360-370 ↔
Vietnam 5% broken 325-335 ↔
India 5% broken 365-375 ↔
Pakistan 5% broken 320-330 ↔
Myanmar 5% broken 415-425 ↔
Cambodia 5% broken 425-435 ↔
U.S. 4% broken 485-495 ↔
Uruguay 5% broken 535-545 ↔
Argentina 5% broken 530-540 ↔
Long grain white rice - low quality
Thailand 25% broken 335-345 ↔
Pakistan 25% broken 295-305 ↔
Cambodia 25% broken 410-420 ↔
India 25% broken 340-350 ↔
U.S. 15% broken 460-470 ↔
Long grain parboiled rice
Thailand parboiled 100% stxd 355-365 ↓
Pakistan parboiled 5% broken stxd 415-425 ↔

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India parboiled 5% broken stxd 355-365 ↔
U.S. parboiled 4% broken 570-580 ↔
Brazil parboiled 5% broken 545-555 ↔
Uruguay parboiled 5% broken NQ ↔
Long grain fragrant rice
Thailand Hommali 92% 825-835 ↔
Vietnam Jasmine 455-465 ↔
India basmati 2% broken NQ ↔
Pakistan basmati 2% broken NQ ↔
Cambodia Phka Mails 830-840 ↔
Brokens
Thailand A1 Super 310-320 ↓
Pakistan 100% broken stxd 280-290 ↔
Cambodia A1 Super 355-365 ↔
India 100% broken stxd 295-305 ↔
Egypt medium grain brokens NQ ↔
U.S. pet food 335-345 ↔
Brazil half grain NQ ↔
All prices USD per ton, FOB vessel, oryza.com

EU Commissioner Defends Zero Duty Rice Imports from Asian LDCs

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