Rice

Egypt expects to import between 500,000 and 700,000 tonnes of rice paddy over the next year, after slashing its own cultivation earlier this year.

A major rice importer in China has signed a Memorandum of Understanding (MoU) with Thailand. Under the agreement, a minimum of 10,000 tonnes of Thai Kor Khor 43 rice will be sold in China via both traditional and online platforms. The rice will be sold to the Chinese company at 12,000 THB per tonne. It is expected that up to 13,000 tonnes of Kor Khor 43 rice will have been harvested by the end of next month. The rice has a low sugar content compared to other rice strains and produces a pleasant scent when cooked.

A Vietnamese company has won a bid to export 60,000 tonnes of Japonica brown rice to the Republic of Korea (RoK), defeating competition from rivals of China, Thailand and Australia. The deadline for delivery of 60,000 tons to South Korea’s port is September 15.

The country’s rice output this year could rise by 1.6 percent to a record high of nearly 13 million metric tons (MMT) on the back of favorable weather conditions and high farm-gate prices. Asia is expected to drive the global production expansion of 2018, harvesting a record 461.9 million tons, up 1.2 percent from 2017. Despite the record-high harvest, Manila’s rice imports this year would expand by half to 1.5 MMT, from 1 MMT a year ago, as the government seeks to beef up the National Food Authority’s (NFA) depleting stockpile and keep retail prices of the staple within affordable level.

Inidan farmers across the country sowed paddy across 11.68 mln ha this kharif season, down 8% on year. The area under paddy was also below the normal average area of 13.02 mln ha for the period. However, after a delayed start, the sowing of paddy picked up pace last week, with rainfall increasing over the country. Paddy acreage is up 73.53% from the previous week. Uttar Pradesh, which is the largest grower of paddy in the country, has recorded a fall of 11.7% on year in paddy area to 1.73 mln ha due to below-normal rains.

Sale of rice reserve price of rice will be taken as s. 2500/- per quintal for auction up to 30th sept. 2018. From 1st October 2018, it will be taken as Rs. 2500/- per quintal or MSP derived price, whichever is higher. Quantum of 20 LMT of Grade ‘A’ rice has been kept for sale under OMSS during 2018-19.

The government had 23.3 mln tn rice in its stock as of Jul 1, the highest since 2013, when the inventory was 31.5 mln tn.

Based on the latest data provided by Philippine Statistics Authority (PSA), the total rice stock inventory of the country was estimated at 2.36 million MT as of 01 June 2018. This was a drop of 8.24 percent from previous year’s level of 2.57 million MT and 18.85 percent below the previous month’s stocks level of 2.9 million MT.

The Philippines’ food security agency seek approval to import an extra 500,000 tonnes of rice this year to ensure healthy supply and stable prices in the local market. The cargoes should arrive in the country in December.

IMD’s Agrimet has advised farmers in Andhra Pradesh to control the spread of stem borer in the paddy crop by spraying pesticides. Paddy crop in the state is at tillering stage and current weather conditions are favourable for the occurrence of the pest. Farmers have been advised to keep an eye and spray pesticides if the infestation is spotted after spells of rain. The pest enters the stem and leaves and feeds on the internal tissues, which eventually hits the yield.

India’s rice exports are set to ease from October as the world’s biggest shipper of the grain boosts guaranteed prices that farmers receive for much of their crop, making new season cargoes expensive compared to supply from rival growers. Lower exports would mean that India loses market share in key Asian and African markets.

The decision to import rice aims at controlling the market and preventing the prices hike. On June 5, the government announced its plan to import rice (paddy, mulled and cargo rice), in a way to reduce the rice-cultivated areas due to the water shortage crisis the country is suffering from.

Farmers across the country sowed paddy across 6.73 mln ha this kharif season, down 14.9% on year. The area under paddy was also lower than the normal of of 8.57 mln ha for the period. The decline in acreage can be attributed to subdued monsoon rains in key growing regions. Paddy is a water-intensive crop. During Jun 1-Jul 8, the country received 214.2 mm rainfall, 8% below the normal weighted average of 233.5 mm. Sowing of kharif paddy was down in the key producing states of Punjab, Uttar Pradesh, Chhattisgarh and Haryana.

Exporters were this week offering Indian 5 percent broken parboiled rice at $388-$392 per tonne on a free on board (FOB) basis, nearly the same as prices quoted by Thailand exporters. But the hike in guaranteed price will force Indian exporters to offer the new season crop at around $430 from October, making exports uncompetitive.