Rice

The import in the first four days of July was 60,000 tonnes, which is nearly half of the total import made last fiscal year. Wholesale prices of local rice dropped by Tk 1 to Tk 1.5 per kilogram. Imported rice prices were down by Tk 2 to Tk 2.5 a kg. The Trading Corporation of Bangladesh (TCB), claims coarse rice prices have dropped by Tk 2 to Tk 3 per kg and the fine varieties by Tk 1 to Tk 2. The government announced the cut in duty on rice import from 28 percent to 10 percent before the Eid-ul-Fitr to rein in the prices and to encourage the private importers.

Transplantation had been completed on 21.41 percent of the 1.55 million hectares of paddy fields. During the same period last year, the transplantation rate was 36.75 percent of the total land available. Last year, paddy fields totalled 1.42 million hectares. The paddy acreage increased to 1.55 million hectares at the end of the transplantation season because farmers planted paddy on more land due to abundant rainfall. This year, the monsoon entered Nepal on June 12, two days after the normal onset date.

The All India Rice Exporters Association has sought government intervention to urge the European Union to defer by two years the implementation of tighter tricyclazole tolerance norms for basmati. The European Union, one of the high-value buyers of Indian basmati, has reduced the permissible limit of tricyclazole residue in imported rice to 0.01 parts per million from 1 part per million with effect from Jun 1, 2018. The fungicide is used extensively in India to prevent leaf blast and neck blast in Pusa Basmati 1 and Pusa Basmati 1401–two of the most widely consumed basmati rice varieties in the EU. The maximum residue limit for tricyclazole is 3 parts per million in India and the US, and 10 parts per million in Japan–levels that usually have no adverse impact on human health.

The average price of 25% broken non-basmati rice exported from India rose 5.9% on year to $352 per tonne during Jan-Jun. Prices are recovering now due to improved demand at lower prices. In 2016, the grain was sold at $332 per tonne because of low demand from Iran and other buyers. In June, 25% broken non-basmati rice from India was exported at $361 a tonne, while that from competitors–Thailand and Pakistan–was sold at $441 a tonne and $360 a tonne, respectively. Prices of 25% broken rice from Thailand fell by 1.9% on year to $381 a tonne, while rice from Vietnam declined 1% on year to $337 a tonne.

Export prices of most rice varieties in Thailand fell in the week. The prices fell due to poor demand from Iran, a major importer, as domestic rice harvest began in the west Asian country. The prices of the 5% and 25% broken white rice fell by $6 and $4 per tonne to $455 and $427 per tonne, respectively, in the week. Thailand is India competitor in global rice exports.

Maharashtra has decided to sell 5,966 tonne unmilled paddy from 2015-16 crop. The state government has appointed a panel which oversee and complete the e-auction within 30 days. The state had procured 15,102 tonne paddy from Thane, Raigad and Singhudurg districts out of total 343,168 tonne it had purchased in the entire state under price support scheme in 2015-16. Around 9,135 tonne paddy, procured in Konkan region, had already been milled and 5,966 tonne of unmilled paddy would now be sold via electronic auction.

The People Republic of China donated 2,568 metric tonnes of rice to the Gambia government for free distribution in the seven administrative regions of the country. Another consignment of 1,260 metric tonnes of donated Chinese rice is due in Banjul before end of July.

Rains have left thousands of acres of agricultural land inundated, causing extensive damage to cotton, paddy and vegetables in several villages of Hisar, Bhiwani and adjoining districts. Despite best efforts by farmers to try and stop water inundating their fields, an overflowing Sirhind canal Kurd distributary has caused waterlogging in over 15,000 acres of farm land in nine villages of Barnala district. Around 5,000 acres in villages of Hisar, Bhiwani and adjoining districts of haryana.

Buying rice in Indonesia is over double the international standard price, despite the country being a major rice producer. Last year, Indonesia rice price was around US$1 per kilogram, while the international standard had it around US$0.4 per kilogram. As of March, this year, FAO recorded the average price of rice per kilogram in Indonesia at around US$0.79. This is one of the highest figures around the region, with other ASEAN members paying far less — Cambodia pays US$0.42 per kg, Thailand pays US$0.33 per kg, Vietonneam pays US$0.31 and just US$0.28 per kg in Myanmar. Limited space is also a factor contributing to high prices, with growers in Indonesia harvesting on average 0.3 hectares compared to two hectares in Vietonneam or Thailand.

The Commerce Ministry is brainstorming policies to stabilise paddy prices ahead of the harvesting season in the third quarter of the year, when 24-26 million tonnes of paddy are due to flood the market and depress prices. Government plans to use the existing price supporting scheme, for which the state-owned bank offered soft loans with a 3% interest rate to millers and local traders to encourage them to stock up on paddy during the harvesting season, both helping farmers while preventing the crop from flooding the market.

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.

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.