Rice

In Vietnam, the 5-percent broken rice RI-VNBKN5-P1 was quoted at $395-$400 a tonne, FOB Saigon, up from $390 last week, and the highest level since November 2014. Prices are expected to rise further in Thailand and Vietnam, the world’s second and third biggest rice exporters. Demand from key importers of the grain has been strong this year. Most private traders and farmers are still holding grains for higher prices. Bangladesh also plans to increase rice imports from Vietnam to 500,000 tonnes by end-2017 and to buy 1 million tonnes of Vietnamese rice annually until 2022.

Bangladesh is set to import 250,000 tonnes of rice from Vietnam in a government-to-government deal, as part of an effort to build reserves, which are at 10-year lows, and rein in record-high local prices after flash floods hit output. The Philippines has also said it would issue a tender next month to import 250,000 tonnes of the grain from Thailand and Vietnam, and possibly also India. In India, the world’s biggest rice exporter, prices of 5-percent broken parboiled rice RI-INBKN5-P1 climbed by $2 per tonne to $415-$418, as demand from overseas buyers rose.

Bangladesh state grains buyer issued an international tender on May 29 to import 50,000 tonnes of parboiled rice, the third such tender for the month. The deadline for offers is June 11 and the rice is to be shipped within 40 days of signing the deal.

Iraq state grains buyer issued an international tender to buy at least 30,000 tonnes of rice. The closing date for the tender is June 11 and offers must remain valid up to June 15. The rice can be sourced from any origin worldwide.

Despite the late arrival of spring, planting in Kazakhstan has already almost caught up with last year progress, even outpaced it in some regions. The lag in individual grain growing regions results from rainy weather at the plantings time. Spring spiked cereals were sown on an area of 12.53 million hectare, 2017 (87.5% of the plan) that is 4.6% less than at the same time last year (13.13 million hectare or 89.6% of the plan). The rice sowing target in the country has already been exceeded by 11%. Kazakh farmers planted 102.7 thousands hectare of rice by the reporting date, or 14.5% more than at the same time last year (89.7 thousands hectare).

The National Rice Policy Committee has approved the 16.56-billion-baht sale of 1.66 million tonnes of old rice to auction winners, leaving only 160,000 tonnes of edible rice in the stockpile. the committee endorsed the sale of the rice that 24 bidders won in the second auction of old government rice this year. 90.84% of the 1.82 million tonnes put up for auction were sold. 90.84% of the 1.82 million tonnes put up for auction were sold.

Maharashtra will pay rice millers 30 rupees per 100 kg over and above the Centre-fixed 10 rupees per 100 kg for raw rice and the mandatory 20 rupees for parboiled rice. The additional payment will be eligible for milling of rice procured in kharif and rabi seasons of 2016-17 and beyond. The rates had not been revised since 2005-06, and from 2015-16, the state decided to make additional payment to prevent rice mills from discontinuing operations.

Riding on expected record harvest, India rice procurement already has surpassed the previous record of 36 million tonnes in market year 2009-10. The country rice procurement is estimated at 36.9 million tonnes compared to 32.6 million tonnes during the corresponding period last year. With additional procurement of rabi and summer rice expected to continue in eastern and southern states, India rice procurement in market year 2016-17 is likely to touch a record 38 million tonnes, about 4 million tonnes higher than last year. The USDA estimates India market year 2016-17 rice production at a record 108 million tonnes.

Prices of rice remained unchanged in the key wholesale market of Kapurthala. The steamed variety of Pusa 1121 basmati rice was sold at 7,000-7,200 rupees per 100 kg in Kapurthala, while the parboiled variety was sold at 6,000-6,100 rupees. Prices of 25% broken non-basmati rice were unchanged at 2,300 rupees per 100 kg.

India wheat exports in 2016-17 marketing year (Oct-Sep) are likely to be at 11 million tonne, up from 10.2 million tonne a year ago. the country had exported 5.2 million tonne rice, up from 4.8 million tonne in the year ago period. Indian rice exports have risen due to strong demand for non-basmati rice from African countries and neighboring Bangladesh, a record production at home and international parity in prices.

The cultivation of main crop rice and corn in Thailand is occurring much sooner than the year-ago period due to favourable rainfall and sufficient water reservoir levels. Thailand Royal Irrigation Department crop progress report indicated that approximately 300,000 ha main-crop rice has been planted in irrigated areas, compared to 4,800 ha in the year ago period. Thai rice exports during Jan-Apr (2017-18), was at 3.6 million tonne, up 2% on year. Exports of corn from the country in 2016-17 are revised up to 700,000 tonne, compared to 500,000 tonne in the previous forecast.

With chilli bringing tears to the growers with its rock-bottom price, the farmers in Bhadradri- Kothagudem are now switching to other crops. This Kharif, the farmers are going to cultivate paddy in 41,728 hectares and cotton in 36,647 hectares along with other crops. The district Kharif plan also focuses on cultivation of maize in 5,741 hectares.

The use of soil health cards has led to 16-25% reduction in cost of paddy cultivation and 10-15% reduction in pulses and oilseed farming in 136 districts of 16 states. After the introduction of soil health card scheme, there has also been 10-25% increase in paddy production, 10-15% in coarse cereals, 10-30% in pulses and 35-66% rise in output of oilseeds. Soil Health Card provides information to farmers on nutrient status of their soil along with recommendations on appropriate dosage of nutrients for improving soil health and its fertility.

Area under rice has gained momentum due to the recent rains and 349,000 heactres of land has been brought under cultivation of the water-intensive crop so far, higher than 329,000 hectares in the corresponding period last year. The weather department expects monsoon rains to be normal this year at 96% of the long-period average. Betting on good monsoon rains, the agriculture ministry is targeting food grain production at an all-time high of 280 million tonne in the new crop year that starts June, higher than this year record of 273.4 million tonne.

Rice prices fell in the key wholesale market of Kapurthala due to slowdown in export demand. The steamed variety of Pusa 1121 basmati rice was sold at 7,000-7,200 rupees per 100 kg in Kapurthala, while parboiled variety was sold at 6,000-6,100 rupees per 100 kg. Prices of both varieties were down 100 rupees from previous close. Prices of 25% broken non-basmati rice were unchanged and the grain was sold at 2,300 rupees per 100 kg.