Rice

National Agromet Advisory services has recommended farmers in Maharashtra to transplant paddy till the end of next week. The progress of southwest monsoon is likely to be good in Maharashtra in the coming days, with western Maharashtra likely to see heavy rains accompanied with thunderstorm, the IMD said.

The central government has procured 38.6 million tonne rice so far in the 2016-17 (Oct-Sep) marketing year, up 13.4% on year. The Centre is buying rice from farmers at a minimum support price of 1,470 rupees per 100 kg. Procurement has been the highest in Punjab, where the government has purchased 11.1 million tonne of the food grain, up 18.2% on year. In Chhattisgarh, 4.7 million tonne rice has been procured so far, up 35.4% on year, and in Haryana, government agencies have bought 3.6 million tonne rice, up 25.2% from a year ago. Procurement has been higher year-on-year in most states as India rice output in 2016-17 (Jul-Jun) is estimated at a record high of 109.15 million tonne.

PEC Ltd has floated a tender to sell 500,000 tonne of non-basmati rice (white or parboiled rice) from the crop of 2016 or later. The tender will close on Friday. The entire quantity will be shipped in 3-4 months from the date of conformation of supply by PEC.

Prices of basmati and non-basmati rice also fell in Haryana Karnal market due to weak export demand besides subdued buying. The white sella basmati rice was selling in Karnal, down 100 rupees from previous close and Pusa 1121 steamed rice was selling down 50 rupees. Prices of non-basmati rice were also down as arrival of summer paddy from Uttarkhand and Uttar Pradesh has flooded the market. Arrival of 1509 variety of summer paddy started nearly one week back and so far, 1.5 million bags (1bag=100kg) have arrived in Karnal market.

India kharif paddy acreage was up 4.5% on year at 1.67 million hectares due to good progress of monsoon rains across major growing regions. Southwest monsoon rains have been near normal so far and according to the India Meteorological Department, the currents are likely to cover most parts of the country in the next two to three days. Typically, monsoon covers the entire country by Jul 15.

The company inaugurate a rice plant of 60,000-tn initial capacity at Rotterdam in Netherlands. The company would process varieties such as Basmati, Thai, Jasmine and American rice at the new plant. Shares of the company traded at 68 rupees, up 5.8%, on the National Stock Exchange.

It nigh impossible to think of a south Indian meal without rice. And now, with the country getting ready for the rollout of the goods and services (GST) tax regime, South Indians, for whom rice is a staple food, have a reason to worry – all varieties of branded rice are set to get dearer by 5% per kilogram, come July 1. Karnataka is likely to be worst affected owing to the additional cess on grains levied by the state government on traders and millers. Besides the 5% GST tax on branded food grains, the state government levies a 1.5% market tax on food grains, which the Agriculture Marketing Produce Committee (APMC) has decided to continue even after the rollout of GST.

Rice exporters see a pick-up in demand for the Indian cereal from Bangladesh as the recent floods in that country have impacted output and sent prices high. Also, a drought in Sri Lanka has resulted in improved demand for the finer varieties such as sona masuri. Bangladesh recently floated three tenders to import about 1.5 lakh tonnes of white rice and par-boiled rice. A fourth tender is expected in July 1st week. Export prices have improved by about 15 per cent since the beginning of the year. As against FOB price of $360-370 per tonne in January, prices of white rice have now moved to between $420 and $430 a tonne.

Prices of rice were largely unchanged, with the 1121 sella basmati rice sold at 5,800 rupees per 100 kg in Delhi and the 1121 steam non-basmati variety priced at 6,500 rupees in Taraori, Haryana.

Sri Lanka has opened immediate talks with three countries (Indonesia, Pakistan, Thailand) to procure a rice tranche to stabilize its domestic markets. Sri Lanka are looking for par-boiled (Nadu) and Samba categories at this moment and can start with 300,000 MT.

Japan International prices of rice are on rise, with Thai rice trading at highest in about three years amid growing demand from Iran. Export prices of grade-A Thai white rice came to $492 a ton in mid-June, up 10% from a month earlier and the highest since August 2014. A big buyer is Iran, which has returned to the international markets after its landmark nuclear deal with six world powers. The Iranian government and corporate buyers in the country got their hands on 40,000 tons to 50,000 tons of jasmine rice and grade-B white rice recently. Thailand rice exporters are eagerly securing supplies for shipment to Iran. Appreciation in the Thai baht is lifting international prices as well.

Prices of rice remained unchanged in the major markets. In Karnal, Haryana, 1121 basmati sella rice was quoted at 5,300-5,400 rupees per 100 kg, while permal raw variety non-basmati rice traded at 2,800 rupees per 100 kg.

Bangladesh state grains buyer issued its fourth international tender since May, looking to import 50,000 tonnes of parboiled rice as it grapples with depleted stocks and record local prices. The deadline for offers is July 9, with the rice to be shipped within 40 days of signing any deal. Growing demand from Bangladesh will help stoke Asian prices. Ataur Rahman, additional secretary at the food ministry, told Reuters last week, that country import 200,000 tonnes of white rice at $430 a tonne and 50,000 tonnes of parboiled rice at $470 a tonne from Vietnam in a government-to-government deal. Those rates are sharply higher than what it has been paying through previous tenders. Bangladesh is buying 50,000 tonnes of white rice at $406.48 a tonne and 100,000 tonnes of parboiled rice at $427.85 and $445.11 a tonne through tenders.

USDA Madagascar 2017/18 rough rice production is estimated at 3.5 million metric tons, down 0.2 MMT from last year. The estimated output is below the 5-year average due to a severe drought in the central and northern regions of the country where nearly 80 percent of Madagascar rice is grown. Area is estimated at 2.2 million hectares, down 0.2 million hectares from last year due to the drought. Seasonal rainfall during the first half of the rice growing season (November 2016 through February 2017) was the lowest in the past 36 years. The drought in the central and northern parts of the country reduced planting and significantly reduced yields.