Rice

India exports of basmati rice are likely to be around 4 million tonnes in the current financial year that slightly down from 4.04 million tonnes last year. The country exported 3.25 million tonnes in Apr-Jan, down 5.3% on year. Demand from Iran has the potential to provide a fillip to India exports. Average realisations from exports for the current fiscal are likely to be lower at 210 billion rupees, against 227.2 billion in the previous year Prices of basmati rice rise by 20-25% during the recent three-month procurement season that ended December, due to lower supplies and firm demand. Output of basmati in India is estimated to have fallen 23% on year to 6.2 million tonnes in 2016-17 (Jul-Jun), due to a significant reduction in acre. Basmati rice exports is likely to grow to Rs 22,000-22,500 crore and volume to around 4.09 million tonne mainly supported by an increase in average realisations in FY18.

ICRA sees India FY17 basmati exports largely unchanged at 4 million tonnes.

Guyana will now be able to bid on three quotas, totalling 30,000 metric tonnes of paddy for export to Mexico, following the Govt of Mexico decision to allow the tax-free importation of 150,000 metric tonnes of paddy and rice products from outside of the North American Free Trade Agreement(NAFTA) member states. Normally taxes for countries, other than NAFTA member states, trading with Mexico, are 9% on paddy and 20% on rice products.

Guyana cleared for paddy exports to Mexico.

India will need to produce 120 million tonnes of rice in 2030 to feed its one and a half billion plus population using less land, less water, less manpower and optimising all agri input usages. Cultivable land areas are expected to shrink and there will be pressure on resources. Rice is the staple food for more than 60% of Indians. The current production is about 106 million tonnes. (Source: Times of India)

India needs 120 million tonne rice by 2030.

Solvent Extractors Association will ask paddy and wheat growers in Punjab and Haryana to partly switch to mustard so as to meet the aim of 10 million tonne mustard output by 2020. A shift to mustard will also check a sharp fall in underground water table level in the two states as the oilseed crop needs comparatively less water for growth. Use of genetically modified mustard crop would also help in meeting the objective of 10 million tonne mustard production. Higher mustard production in domestic markets will reduce burden on imports of edible oils. The country meets 70% of its domestic demand through imports of edible oils and Mustard crop accounts for around 20% of the total oilseed basket.

Solvent Extractors Association of India ask to paddy, wheat farmers of Punjab, Haryana to grow mustard.

The wholesale grains market during the week on the back of rising demand from retailers against restricted supplies. An increase in demand from retailers against tight stocks position on fall in supplies from producing regions mainly attributed the rise in rice basmati and non-basmati prices. In the national capital, rice basmati common and Pusa-1121 variety rise respectively. Non-basmati rice, permal raw, wand and IR-8 followed suit and finished higher from previous close.

Prices of rice basmati and non-basmati firmed up.

Rice bran oil production is expected to grow 20% in 2017-18 (Apr-Mar) to 1.2 million tonnes owing to rising demand from health-conscious consumers. Major demand for the oil is seen arising from West Bengal, Punjab and some pockets in southern India. The country produced around 1 million tonnes of the premium oil last year. In West Bengal, rice bran oil production is seen growing to around 200,000 tonnes in 2017-18 from 180,000 tonnes in 2016-17.

Emami Agritech sees FY18 rice bran oil output rising 20%.

Non-basmati rice prices firmed up at the wholesale grains market due to increased demand from retailers. Increased demand from retailers against restricted supplies from producing regions mainly helped non-basmati rice prices to trade higher.

Non-basmati rice edges up on increased demand in India.

Rice prices firmed in Thailand on a stronger baht while prices dipped in Vietnam and India. Thailand sold 3.6 million tonnes of rice abroad between the start of the year and March21 which is up 2.7% from the same period last year. In India, 5% broken parboiled rice fell due to amid less demand. In Vietnam, 5% broken rice fell as supply increased during the main harvest season. Global demand is not so strong as Thailand is still selling their inventor. Vietnam rice shipments fell 26.5% last year to 4.8 million tonnes, while exports of the grain in the first two months of 2017 decreased 23.5% year on year to 738,000 tonnes.

Asia Rice-Thailand rice prices firm on stronger baht but dip in Vietnam and India.

Govt plans to sell 8 million tonnes of white rice inventory within this year. The inventory is part of rice stocks of 18 million tonnes accumulated from the rice subsidy scheme implemented by previous govt. 8 million tonnes comprise three grades of rice; 3 million tonnes food grade, 3.66 million tonnes industrial-use grade and 1 million tonnes of rotten rice which can be used only for alcohol production. Govt put up 1.3 million tonnes of food-grade rice for auction last month and another 1.5 million tonnes will be put up for auction in May.

Govt to sell 8 million tonnes from rice stocks this year in Thailand.

Rice output could decline to below 18 million metric tonnes after the quantitative restriction on rice is scrapped on June 30. Rice output in MY 2017-2018 could settle at 17.93 MMT, lower than the 18.52 MMT projected for the current marketing year 2016-17 which would end on July 31. The projected decline in unmilled rice output, the imports could double to 2 MMT during MY 2017-18. Rice farmers are expected to shift to planting corn that local corn output could reach 8.3 MMT in 2017-18 which is 2% higher than the 8.1 MMT estimated output in 2016-17. In 2017/18, corn production will likely increase due to firm feed demand by the expanding domestic livestock and poultry industries. and also, this increase in corn production in the country imports could decline to 500,000 metric tonnes in 2017-18 from 600,000 metric tonnes in 2016-17.

Farmers to dump rice for corn when quantitative restriction ends in Manila(Philippine).