1st March ,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine

Daily Exclusive ORYZA Rice E-Newsletter

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www.ricepluss.com www.riceplusmagazine.blogspot.com

March 01,2016 Vol 7,Issue III


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Indian Finance Minister Enhances

Agricultural Credit in 2016-17 Union Budget

Feb 29, 2016

The Indian Finance Minister, who presented the Union Budget 2016-17 today, has enhanced the

agricultural credit to Rs.9 lakh crore (around $131 billion) from Rs.8.5 lakh crore ($124 billion) last year.

A total of Rs.35,984 crore (around $5.2 billion) is allotted for agriculture in the 2016-17 budget, he said.

The Minister also announced that the government aims to cover all the 140 million farm holdings in the

country under the soil health card scheme by March 2017. The soil health card scheme was introduced in

last budget. Under the scheme, the government will advise farmers on the usage of inputs like fertilizers

for different types of soils and for different types of crops after testing the soil in various soil testing labs

across the country.

He also noted that about 200,000 hectares would be brought under organic farming over a period of three

years. He stated that Rs.6,000 crore (around $874 million) would be allocated for sustainable

management of ground water resources.

The Minister announced that Rs.15,000 crore ($219 million) would be allocated towards interest

subvention to lower burden for farmers.

He also announced that a Unified Agricultural Marketing ePlatform would be provided for wholesale

markets.

Government of Rwanda May Stop Rice Imports by 2018 to Reduce Trade Deficit

Feb 29, 2016

The government of Rwanda may stop importing rice by 2018 as part of its efforts to reduce the

bulging trade deficit, according to local sources. Rwanda imported around $37 million worth rice

in 2015 compared to around $31.1 million in 2014. The country 's trade deficit stood at around

$1,761.3 million in 2015. Higher deficit is attributed to a fall in the countrys exports due to falling global prices.

The State Minister for Agriculture reportedly told the Parliament recently that the Agriculture

Ministry has drafted a new plan aimed at increasing the local rice production, enough to meet all

the country's needs by 2018.


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The measures reportedly include expanding the rice planting in marshland areas as well as

allocating more land to private investors who are interested in venturing into commercial rice

growing activities. Currently, only 28,500 hectares of marshland areas are used for rice

cultivation, while the country has a total capacity of 66,094 hectares.

"The new plan involves working with co-operatives and easing access to farm inputs to boost

production. The government is currently trying to address the challenges in rice production

including limited Post-harvest infrastructures, insufficient amount of good quality seeds due to

absence of efficient public seed production and distribution," said the Agriculture Ministry's

Permanent Secretary.

The Permanent Secretary in the Ministry of Trade and Industry added that streamlining the production and supply value chains will help increase local production."

The government of Rwanda is aiming to achieve rice self-sufficiency by increasing yields to 7

tons per hectares by 2018. In 2014, the Rwanda Agriculture Board (RAB) reportedly unveiled an

initiative that sought to increase rice production, ensure quality along the value chain, and ease

access to agro-inputs.

Rwanda imports about 40% of its annual rice demand of arbout 98,000 tons, according to the

USDA.

Cambodia Lacks Comprehensive Rice Export Policy, Say Exporters

Feb 29, 2016

Cambodian rice exporters have expressed concerned that Cambodia lacks a comprehensive rice

export policy, which can aid in boosting production and exports, according to the Phnompenh

Post.

They noted that despite winning the world's best rice competition for three consecutive years, the

Cambodian rice industry continues to face challenges such as access to finance, as well as

inadequate irrigation, milling and storage facilities.

Relevant ministries such as the Ministry of Economy and Finance together with the Ministry of Agriculture and CRF [Cambodian Rice Federation] have yet to come up with a thorough strategy

design, accompanying policies and policy implementation framework that can be rolled out to

enhance the competitiveness of our rice industry in the global market, especially within the

context of how to allow Cambodian millers to become a cost leader to compete with the same

level playing field [of our] Thai and Vietnamese counterparts, one of the leading exporters was quoted.


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Cambodias rice industry has a huge potential but unless we manage to solve the cost impediments, this potential may be squandered. It is the survival of the fittest, he added.

They noted that "a pragmatic, professional, and thorough marketing strategy with appropriate

market positioning and implementation plan" is necessary along with the government's on-going

efforts to develop a national brand name for the country's rice.

Meanwhile, the Cambodian Center for Study and Development in Agriculture (CEDAC) is

planning to expand the production of organic rice in the country to around 1,000 - 1,500 tons this

year due to its higher export potential. Local farmers affiliated with CEDAC produced around

400 tons of organic rice in 2014 and around 800 tons in 2015.

Cambodia has exported around 538,396 tons of milled rice in 2015 (January - December), up

about 39% from around 387,061 tons exported in 2014. The government of Cambodia aimed to

increase official rice exports to one million tons in 2015 but missed the target due to inadequate

milling facilities and infrastructure as well as lack of access to funding.

India Average Wholesale Rice Prices Decline Slightly m/m in February 2016

Feb 29, 2016

India average wholesale rice prices

have declined slightly in February

2016, after increasing for three

consecutive months. The decline can

be contributed to increasing supplies

from the on-going Rabi/secondary rice

crop (November - May)

harvests.Average monthly wholesale

rice prices in India stood at around

Rs.2,773.3 per quintal in February

2016, slightly up from around

Rs.2,782.77 per quintal in January

2016, and slightly down from their

year-ago levels of around Rs.2,787.06

per quintal.

In terms of USD per ton, wholesale rice prices in India stand at around $404 per ton (using

current exchange rates) in February 2016, down about 3% from around $415 per ton (using

historical exchange rates) in January 2016, and down about 10% from around $450 per ton

(using historical exchange rates) in February 2015.


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Analysts are expecting Indias average prices to increase due to a likely reduction in this year's output following below-average monsoon rains during the kharif season (July - December).The

government, in its second advance estimates for major crops, forecasts India's 2015-16 (July -

June) milled rice output to decline about 2% to around 103.61 million tons from around 105.48

million tons in 2014-15.

Indian Authorities Unearth $146 Million Scam in Basmati Rice Exports Routed to Iran

Feb 29, 2016

Authorities from the Directorate of Revenue Intelligence (DRI) have unearthed a massive scam

involving over 200,000 tons of basmati rice worth Rs.1,000 crore (around $146 million) in rice

exports routed to Iran, according to the Press Trust of India (PTI).

The DRI authorities found that the rice routed to the Bandar Abbas port in Iran was being

fraudulently diverted mid-sea to Dubai. They noted that exporters involved in the scam would

load the rice at the Kandla port in Gujarat. They have also filed shipping bills to Iran. However,

the consignment was diverted mid-sea to Dubai allegedly with the connivance of cargo ship

operators carrying the goods. They also noted that payments are understood to be made from Iran

to these exporters with the importers and port officials officially acknowledging the receipt of

rice.

The authorities are reportedly suspecting the involvement of about 25 rice exporters from

Haryana and Punjab in this scam.

Local sources noted that the intelligence agencies are investigating the end use of the rice off-

loaded in Dubai. They noted that the authorities are suspecting the use of rice as barter system to

fund some illegal activities. Locally, they are expecting the proceeds of the scam are a form of

black money, the sources said.

The DRI has reportedly involved the Supreme Court-appointed Special Investigation Team on

black money as well as the Enforcement Directorate to resolve the case. It is also in touch with

the concerned authorities in Dubai

Oryza CBOT Rough Rice Futures Recap - Chicago Rough Rice Futures Bounce Higher to Start the Week on a Positive Note


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Mar 01, 2016

Chicago rough rice futures for Mar delivery settled 10.5 cents per cwt (about $2 per ton) higher

at $10.495 per cwt (about $231 per ton). The other grains finished the day with mixed results;

Soybeans closed about 0.3% lower at $8.6100 per bushel; wheat finished about 0.2% higher at

$4.5325 per bushel, and corn finished the day about 0.7% lower at $3.5700 per bushel.

U.S. stocks traded higher Monday, the last trading day of February, amid higher oil prices and

after some disappointing data. U.S. crude oil futures extended gains trading more than 2.5%

higher near $33.70 a barrel in afternoon trade. In economic news, Chicago PMI came in at 47.6

in February, missing expectations and dropping from 55.6 in January. Pending home sales fell

2.5% in January, versus expectations for a slight gain. Key data for the week include ISM

manufacturing on Tuesday and the jobs report on Friday.

European equities came off session lows to close mixed after China's central bank announced

further stimulus measures. The People's Bank of China cut further the reserve requirement ratio,

the amount of cash the country's banks have to hold, by 0.5% points after China's markets closed

Monday. The cut was the first since October and the fifth since last February. The reserve

requirement ratio comes into effect Tuesday and means most large Chinese banks will have a

reserve ratio of 17%, Reuters said. Asian equities closed mostly lower, with the Shanghai

composite down about 2.9% but above session lows and the Nikkei 225 reversing gains to close

down 1%.In afternoon trade, the Dow Jones industrial average was up 42 points, or 0.25%, at

16,682. The S&P 500 traded 5 points higher, or 0.4%, at 1,953, with utilities leading eight

sectors higher and health care and energy the only decliners. The Nasdaq composite was up 17

points, or 0.38%, to 4,607. Gold is seen trading about 1.1% higher, crude oil is seen trading

about 2.6% higher, and the U.S. dollar is seen trading about 0.1% higher at about 1:00pm

Chicago time.

Friday, there were 4,710 contracts traded, up from 3,079 contracts traded on Thursday. Open

interest the number of contracts outstanding on Friday increased by 264 contracts to 13,037.

Iraq Seeks to Buy 30,000 Tons of Rice in Tenders

Feb 29, 2016

Iraq is seeking to buy about 30,000 tons of rice in tenders from the U.S., Uruguay and Argentina,

Bloomberg quoted a statement from Iraq's Trade Ministry.

Deadline for submission of bid is reportedly March 8, 2016, and the offers will be valid till

March 14, 2016.


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Last week, Iraq passed off tenders to buy 90,000 tons of U.S. rice due to high prices. Bidders

reportedly offered South American rice at low prices.

Pakistan Resumes Banking Ties with Iran as Sanctions End

Feb 29, 2016

The State Bank of Pakistan (SBP) has resumed banking ties with Iran allowing all commercial

banks and financial institutions in the country to restart business with their Iranian counterparts,

according to Reuters.

"In line with the federal government's decision to implement the United Nations Security

Council Resolution regarding lifting of sanctions against Iran, the State Bank of Pakistan has

communicated to banks/financial institutions that previous sanctions on Iran have been removed

and normal business activities can be commenced within the scope of the Resolution," the central

bank was quoted.

"It is expected that the lifting of sanctions and restoration of banking channels between Pakistan

and Iran would revive normal trade and business activities between the two neighbours," it

added.

Major Pakistani exports to Iran include basmati rice, plastics, paper and oranges, and the big

imports items include liquefied petroleum gas, petroleum products, electric transformers and dry

fruits. The Rice Exporters Association of Pakistan (REAP) has been urging the government to

restore payment mechanisms between the two countries to help boost exports.

Earlier this month, the global transaction network Society for Worldwide Interbank Financial

Telecommunication (SWIFT) reconnected a number of Iranian banks to its system, allowing

them to restart cross-border transactions with foreign banks. The move came after sanctions were

lifted on Iran in January this year. Iranian banks were removed from the Belgium-based SWIFT

in March 2012, following the tightening of the international sanctions against Iran over its

disputed nuclear program.

Global Rice Quotes February 29th, 2016

Long grain white rice - high quality

Thailand 100% B grade 365-375 Vietnam 5% broken 355-365 India 5% broken 360-370 Pakistan 5% broken 335-345 Myanmar 5% broken 420-430


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Cambodia 5% broken 410-420 U.S. 4% broken 455-465 Uruguay 5% broken 445-455 Argentina 5% broken 435-445 Long grain white rice - low quality

Thailand 25% broken 345-355 Vietnam 25% broken 345-355 Pakistan 25% broken 305-315 Cambodia 25% broken 395-405 India 25% broken 325-335 U.S. 15% broken (sacked) 440-450 Long grain parboiled rice

Thailand parboiled 100% stxd 365-375 Pakistan parboiled 5% broken stxd NQ India parboiled 5% broken stxd 350-360 U.S. parboiled 4% broken 480-490 Brazil parboiled 5% broken 520-530 Uruguay parboiled 5% broken NQ Long grain fragrant rice

Thailand Hommali 92% 665-675 Vietnam Jasmine 415-425 India basmati 2% broken NQ Pakistan basmati 2% broken NQ Cambodia Phka Mails 755-765 Brokens

Thailand A1 Super 325-335 Vietnam 100% broken 330-340 Pakistan 100% broken stxd 285-295 Cambodia A1 Super 335-345 India 100% broken stxd 260-270 Egypt medium grain brokens NQ U.S. pet food 280-290 Brazil half grain NQ

All prices USD per ton, FOB vessel, oryza.com

Vietnam Exports About 727,847 Tons of Rice During January 1 February 25, 2016

Feb 29, 2016


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Vietnam exported about 727,847 tons of rice in January 1 - February 25, 2016, up about 73%

from around 421,202 tons of rice exported in first two months of 2015, according to data from

the Vietnam Food Association (VFA). The average rice export price so far in this year stands at

about $399 per ton (FOB), down about 11% per ton from around $452 per ton recorded during

same last year. During February 1-25, 2016, Vietnam exported around 311,077 tons of rice, up

about 55% from around 200,814 tons rice exported in full month of February 2015, and down

about 25% from around 416,770 tons rice exported in full month of January 2016. The average

export price so far in February stands at around $387 per ton, down about 15% per ton from a

year ago and down about 5% per ton from a month ago.

Vietnam Rice Sellers Increase Their Quotes Today; Other Asia Rice Quotes Unchanged

Feb 29, 2016

Vietnam rice sellers increased their quotes for 5% broken rice, 25% broken rice and 100%

broken rice by about $5 per ton each to around $355-$365 per ton, $345-$355 per ton and $330-

$340 per ton respectively today. Other Asia rice sellers kept their quotes unchanged

today.

5% Broken Rice

Thailand 5% rice is indicated at around $355 - $365 per ton, on par with Vietnam 5% rice shown

at around $355 - $365 per ton. India 5% rice is indicated at around $360 - $370 per ton, about

$25 per ton premium on Pakistan 5% rice shown at around $335 - $345 per ton.


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25% Broken Rice

Thailand 25% rice is indicated at around $345 - $355 per ton, on par with Vietnam 25% rice

shown at around $345- $3505per ton. India 25% rice is indicated at around $325 - $335 per ton,

about $20 per ton premium on Pakistan 25% rice shown at around $305 - $315 per ton.

Parboiled Rice

Thailand parboiled rice is indicated at around $365 - $375 per ton. India parboiled rice is

indicated at around $350 - $360 per ton, about $55 per ton discount to Pakistan parboiled rice

last shown at around $405 - $415 per ton.

100% Broken Rice

Thailand broken rice, A1 Super is indicated at around $325 - $335 per ton, about $5 per ton

discount to Vietnam 100% broken rice shown at around $330 - $340 per ton. India's 100%

broken rice is shown at around $260 - $270 per ton, about $25 per ton discount to Pakistan

broken sortexed rice shown at around $285 - $295 per ton.

Oryza U.S. Rough Rice Recap - Prices Seen Steady after IGB Reissues Another Tender Including South American Origins

Mar 01, 2016

The U.S. cash market was seen mostly unchanged today after it was confirmed that Iraq canceled

their U.S. origin only tender and reissued another tender to buy at least 30,000 MT from either

the U.S., Uruguay, or Argentina.

Analyst note that the lower and unsolicited offers from South America on the old tender likely

complicated things for the Iraqi Grain Board as they likely faced difficulties justifying paying a

roughly $90 per ton premium for U.S. rice over South American.

Going forward, analysts expect that offers from the U.S. will decrease while offers from South

America will increase which some believe will give the U.S. a decent shot at booking one cargo.

Offers need to be submitted no later than March 8 and need to remain valid until March 14.

Exclusive News have been shared with written permission of ORYZA.com with thanks

Documents

1st March ,2016 Daily Exclusive ORYZA Rice E-Newsletter by Riceplus Magazine