Daily Global Rice E-Newsletter

Rice coalition eyes Cuba

Daily Global Rice E-Newsletter www.ricepluss.com

January 14, 2015 Volume 5, Issue I

Posted: Wednesday, January 14, 2015 12:00

am For Tri-County Newspapers

The USA Rice Federation has joined with

more than 25 prominent U.S. food and

agriculture associations and companies to

form a coalition that seeks to advance trade

relations between the United States and

Cuba.The U.S. Agriculture Coalition for

Cuba formally launched at an event in

Washington D.C. on Thursday that was

attended by Secretary of Agriculture Tom

Vilsack, a bipartisan group of members of

Congress, and Missouri Gov. Jay Nixon.The

purpose of the USACC is to re-establish

Cuba as a market for U.S. food and

agriculture exports and address liberalizing

trade between the United States and

Cuba.The coalition will work to end the

embargo and allow for open trade and

investment.

"We know the Cuban market for rice is not

theoretical. It is real, it is large, and it is

compelling," said Betsy Ward, president and

CEO of USA Rice, in a statement. "With

rice imports valued at more than $300

million, Cuba is the second largest importer

of rice in the Americas. And there was a

time when Cuba was our number one export

market — we look forward to a return to

those days."The U.S. rice industry has been

advocating for open trade and travel with

Cuba since the mid-1990s and was the first

U.S. commodity back in Cuba in 2001,

exhibiting at the Havana Trade Fair, which

led to the first U.S. rice sale to Cuba in more

than 40 years.Throughout the last decade,

USA Rice has sponsored numerous trade

missions, led and participated in many

forums, here and in Cuba, and participated

in eight Havana International

Fairs.Consequently, by 2004, U.S. rice sales

to Cuba were valued at $64 million.

However, U.S. government policy changes

reversed that trend, and by 2009, sales fell to

zero, where they remain.

"We applaud the Obama Administration for

their recent actions, and ask our leaders in

Congress to normalize trade with this nation

that we believe will once again become a

major market for U.S. rice," Ward said.

"Open trade with Cuba would be an

enormous boon for U.S. rice farmers, and

we look forward to working with the Cuban

rice industry so together we may supply the

Cuban people with high-quality, delicious

rice."

http://www.appeal-

democrat.com/colusa_sun_herald/rice-coalition-eyes-

cuba/article_f7e1e85c-9ba0-11e4-b1e4-

5f49fac7ed5d.html

Japan skips food wheat

purchase tender this week Tue Jul 1, 2014 8:11am GMT

TOKYO, July 1 (Reuters) - Japan's Ministry

of Agriculture skipped buying food quality

wheat via a regular tender this week. Since

July has 5 weeks, the ministry decided to

skip a tender this week and planned to start a

regular tender from the following week, an

official at the bureau said on Tuesday.Japan,

the world's sixth-biggest wheat importer,

keeps a tight grip on imports of the country's

second most important staple after rice and

buys the majority of the grain for milling via

tenders typically issued three times a month.

(Reporting by Michio Kohno; Editing by

Anupama Dwivedi)

http://af.reuters.com/article/commoditiesNews/i

dAFL4N0PC26520140701

Thai govt aims to sell 17m

tonnes of stockpiled rice

over 2 years

BANGKOK, Jan 13 (Reuters): Thailand's

government plans to sell around 17 million

tonnes of rice over the next two years from

stockpiles built up under the previous

administration's failed buying programme, the

commerce ministry said on Tuesday,

announcing a new series of tenders.

Thailand was the world's top rice exporter for

decades until its grain became uncompetitive

under the buying scheme brought in by ousted

former Prime Minister Yingluck Shinawatra

after she won election in 2011.The scheme paid

farmers well above market rates for their crops

and the Finance Ministry, in its most recent

estimate, said it caused losses of more than $15

billion to the state, although that would be

reduced if grain is sold.

"We have set up a plan to sell 17.8 million

tonnes of rice within a two-year timeframe,"

Chutima Bunyapraphasara, permanent secretary

at the ministry, told reporters.The aim is to sell

10 million tonnes this year and 7 million in

2016, she added.Terms of reference for a tender

for 1 million tonnes would be announced on Jan.

20, she said, adding that the ministry would hold

two or three tenders from January to March.The

authorities have held four, smaller tenders since

the military seized power last May and have sold

681,740 tonnes for around 6.36 billion baht

($194 million), Chutima said.

Government-to-government deals have been

done for larger amounts, of which 570,000

tonnes had so far been shipped or was about to

be shipped this month, she added.An audit

conducted after the military seized power in

May suggested that only 10 per cent of the grain

in the stockpiles was of standard export quality.

The buying scheme effectively lapsed in early

2014 when political turmoil meant Yingluck's

government was unable to pay farmers for their

grain.Thailand's parliament began an

impeachment hearing against Yingluck on

Friday over her role in the subsidy programme.

Critics denounced it as a wasteful handout to

supporters of Yingluck and her brother Thaksin

Shinawatra, another former premier ousted by

the military.

The country exported around 10.8 million tonnes

of rice in 2014, a record high, according to the

commerce ministry.Its previous record of 10.4

million tonnes was reported in 2011, after which

India took over as top exporter.Thailand is

experiencing drought in eight provinces, which

will cut its 2015 off-season crop output by more

than 30 per cent, according to the latest report

from the Office of Agricultural Economics.The

smaller harvest is unlikely to have a big impact

on global prices, which are still under pressure

from Thailand's stockpiles and bumper output in

rival exporters India and Vietnam.

http://www.thefinancialexpress-

bd.com/2015/01/14/75715

Officials prepare for rice

exports to China Published on Wednesday, 14 January 2015 16:15

To facilitate rice exports to China, the China

Certification & Inspection Group (CCIC) will

open an office in Yangon.

The Myanmar Rice Federation (MRF) will

send a list of 10 rice exporting companies

and other

documents to China. The CCIC will hold

talks between the Myanmar government,

COFCO Group and the companies that

signed the memorandum of understand with

the MRF over rice trading."Tasks for

starting rice exports are currently on our

plate. A meeting will be held this month.

Wewill assist in opening the CCIC office,

too," said Ye Min Aung, general secretary of

MRF.At the invitation of China early this

month, delegations from MRF, the Rice

Millers' Association, Myanmar Rice &

Paddy Traders Association, the Agriculture

and Irrigation Ministry and the

Commerce Ministry talked with their

Chinese counterparts about rice trading

agreements proposed in 2014 and finalised

the deal.Negotiations between the Myanmar

Agriculture and Irrigation Ministry and

China's Administration of Quality

Supervision, Inspection and Quarantine have

also taken place.Myanmar is thriving to

export its world-class quality rice to China.

Current exports are of

mediocre quality. World Bank studies

claimed the price of rice in Myanmar is the

most unstable among Southeast Asian rice

exporting nations.The studies explained the

40-per cent hike in Myanmar rice prices as

the result of weak market structures, poor

accessibility of information, limited product

variety and costly storage charges.In the

2013-14 fiscal year, Myanmar‘s exports of

1.1 million tonnes of rice earned US$400

million; in 2014-15, Myanmar is expected to

reap $500 million from 1.5 million tonnes in

rice exports.

http://www.elevenmyanmar.com/index.php?opti

on=com_content&view=article&id=8674:officia

ls-prepare-for-rice-exports-to-

china&catid=33:business&Itemid=356

Iraq submits a tender for

the purchase of 30 thousand

tons of rice

Photo Credit:Reuters/Ajay Verma

The Iraqi Ministry of Trade announced on

Tuesday launching a tender to process the

ministry with an amount of 30 thousand tons of

rice to cover the requirements of the ration card,

while economists justified it and said that

production would not fill the growing need for

several conditions.

Iraq is one of the major importers of grain in the

region to cover the ration card program that has

been applied since the nineties of the last

century.

The Ministry of Trade stipulated that the origins

must be from America, Uruguay, Argentina,

Brazil, Vietnam and Thailand with the

specifications of " White Grain."The ministry

said in a statement reported for "Shafaq News"

that " offers will be open up to 29/1/2015 but the

presentations must be accompanied by an initial

insurances by a bank guarantee or a check

certified for the General Company for Grain

Trade in the ministry.Analysts and economists

believe that Iraq's move towards the global

market is to meet the needs of its population of

grain for many economic conditions.

The economist , Falah Hassan told "Shafaq

News" that "Iraq has a great potential in the

production of agricultural crops, but the

conditions experienced in the country affected

local production significantly."He explained that

"local production in Iraq began to diminish year

after a year due to economic factors as well as

political factors , although it has recently

improved, but of course still modest in spite of

the many possibilities that exist in Iraq."Hassan

added, "there has been a clear deficit in the

coverage of such crops as wheat barley and rice,

so that Iraq covers domestic demand through

imports .. For example, rice needs large amounts

of water while Iraq is going through a crisis in

irrigation projects and this is a big challenge due

to lower levels of Tigris and Euphrates rivers by

the impact of upstream countries "Turkey and

Syria.

© Shafaq News 2015

https://www.zawya.com/story/Iraq_submits_a_t

ender_for_the_purchase_of_30_thousand_tons_

of_rice-ZAWYA20150114044000/

Nigeria: Govt Alleges

Sabotage of Rice Policy By

Investors

By Femi Adekoya

FOREIGN investors who have exceeded their

preferential allocation quotas for imports thereby

incurring N36.56 billion debts payable to the

nation's treasury are sabotaging the new rice

policy, the Federal Government said

yesterday.According to the Minister of

Agriculture and Rural Development, Dr.

Akinwunmi Adesina, the Federal Government

may also wield its big stick on importers who

were re-bagging locally produced rice as

imported one while receiving waivers for

such.Besides, the Federal Government noted that

it had concluded plans to establish and manage a

National Domestic Rice Production Fund

(NDRP Fund) that would be used to support

farmers and millers in expanding production and

milling operations in the relevant states of

previously intended investments by defecting

investors.

The Fund is expected to be generated from

recalled bonds from any of the 26 investors who

defaulted from their investment plans while

enjoying preferential allocation quotas under the

Domestic Rice Production Performance Bond

amounting to $195 million or N35.3

billion.Already, the ministry, citing data from

Nigerian Customs, identified Popular Farms and

Mills as well as other importers as responsible

for exceeding their import quotas under the new

policy.

Furthermore, the ministry identified three other

companies including Conti-Agro, Central

Trading and Export and African firms as having

imported 98,285 metric tonnes of rice without

approved quotas, thereby owing the treasury

N8.16 billion.A statement from the ministry

stated that the companies without waiting for

determination of the supply gap by the inter-

ministerial committees or issuance of quotas had

imported 634,270.16 metric tonnes of finished

rice. This represents 56 per cent of the total

imported finished rice under the new policy as at

December 3, 2014.

Adesina was quoted as saying: "Nigeria cannot

lose any revenue due to the economy. All

companies who have imported rice above their

allocated quotas must pay fully the amounts due

to the treasury. With the devaluation of the

Naira, all hands must be on deck to ensure that

all leakages are blocked. Nigeria is not for

sale."I will not be intimated, bought or

corrupted. I will not sell my country to any

foreign company. The President has given us a

clear matching order to make Nigeria self-

sufficient in rice and we will fully achieve this.

All who owe the Federal Government must pay

what they owe and Nigeria must lose no single

naira. No amount of malicious representation

will derail the new policy.

"According to the Customs, the importers agreed

to pay any duty and levy differential if their

eventual quota allocation turned out to be lower

than what they have imported."As at December

3, 2014, Popular Farms and Mills had exceeded

their approved quota by 300,204.53 metric

tonnes and Olam by 110,163.63 metric tonnes, a

combined total of 410,368.16 metric tonnes."

According to the new rice policy, Popular Farms

and Mills owes N19.379 billion in unpaid levies

while Olam's indebtedness is N9.02 billion.

Together, the two Asian companies owe the

federal Government about N28.39 billion.

"Rather than pay the levies owed, the two firms

wrote letters to the Minister asking for a revision

of their rice import quotas; Olam asked for

400,000 metric tonnes rice import quota, to

cover the quantities of rice that they had gone

ahead to import (or still desire to import)

without any approved quotas or Domestic Rice

Production Plans (DRPP) as required, but a mere

agreement with Nigerian Customs that they

would pay the duties due once the quota

allocations are out", the statement read in part.

The ministry expressed optimism of the national

supply gap of import grade rice declining from

the present 1.5 million metric tonnes to one

million this year, with a further projected decline

of 0.3 million MT in 2016 and zero in 2017

when the country is expected to become self-

reliant in rice production and when rice mills

purchased by investors become operational.

The ministry explained that the new rice policy

had stated that importation of brown or polished

rice should be limited to the national supply gap

for import-grade rice to be determined by an

inter-ministerial committee chaired by the

Agriculture Ministry, with membership drawn

from the Ministries of Finance, Industry, Trade

and Investment and the National Planning

Commission.

It added that rice import quotas were issued on a

conditional basis to guarantee that the DRPPs

are met to achieve Federal Government's goal of

rice self-sufficiency."Specific qualifying criteria

to receive the quotas were stipulated and they

include: applying companies must be a

registered firm in the country and a member of

relevant trade association; only new investors

officially known to the Ministry via submission

of a DRPP will be allocated a quota; applying

companies must have a minimum planned

investment in rice production and processing of

$10 million.

"Basically, in order to qualify for a final quota

allocation, all qualifying companies had to

deposit a Domestic Rice Production

Performance Bond ("the Bond") as a means of

demonstrating a clear commitment to domestic

investments in rice production and processing.

For each investor, the Bond value will be

equivalent to 30 per cent of the value of the

quota received. This Bond must be secured at a

qualifying bank approved by the Federal

Ministry of Agriculture and Rural Development.

"Investors' rice investment plans will be strictly

monitored against key milestones. Failure to

execute on these plans will lead to a 'call' on the

Bond by the Ministry."The goal is to turn

importers into local producers and that is being

achieved. No one is hoodwinking anybody. A

detailed assessment of existing rice millers,

importers and new rice investors has also been

undertaken", the ministry explained.

However, when The Guardian tried to reach

some of the identified investors who have

overshot their quotas, they stated that the

Nigerian Customs was yet to communicate their

financial obligation to them in terms of the

excess imports, adding that they continue to

await Customs' response to them.

http://allafrica.com/stories/201501141088.html

Major Grant Awarded to

Rice Industry, DU for

Habitat Conservation

Efforts

From left: LA rice farmer John Owen,

USA Rice CEO Betsy Ward, and

NRCS Chief Jason Weller

WASHINGTON, DC -- Today Secretary of

Agriculture Tom Vilsack announced approved

grants from the first round of proposals to the

new Regional Conservation Partnership Program

(RCPP). The USA Rice Federation, Ducks

Unlimited, Inc. (DU), and more than 40

collaborating partners are pleased that the "Rice

Stewardship Partnership - Sustaining the Future

of Rice" project was selected for support.

This project will help rice producers conserve

natural resources such as water, soil and

waterfowl habitat, while having long-term

positive impacts on their bottom line.

The RCPP application process was very

competitive; less than half of all applications

were awarded funding, and no proposal was

fully funded. However, the USA Rice and DU

national request was deemed to have significant

merit, and the Natural Resources Conservation

Service (NRCS) - the agency responsible for

administering RCPP - awarded the partnership a

grant of $10 million, one of the largest awards

given under the program.

"The Mississippi Alluvial Valley, Texas' and

Louisiana's Gulf Coast, and California's Central

Valley are critical landscapes for waterfowl and

therefore ranked as some of DU's top priorities

for habitat conservation," said DU President and

Arkansas rice producer George Dunklin.A 2014

study conducted by DU scientists for The Rice

Foundation demonstrated that rice agriculture

provides 35 percent of the food resources

available to migrating and wintering dabbling

ducks in the regions where rice is grown in the

United States.

"U.S. rice farms are valuable, not just for the

nutritious commodity they produce and their

positive impact on the economy, but also as

important contributors to the entire ecosystem,

and today's announcement from NRCS and

USDA recognizes that fact," said USA Rice

Federation Chairman Dow Brantley, an

Arkansas rice farmer. "Wildlife and waterfowl

depend on our farms as much as any of us do."

Across the board

Established in the 2014 Farm Bill, the RCPP

competitively awards funds to conservation

projects designed by collaborating partners."The

USA Rice Federation, Ducks Unlimited, and all

of our partners commend the USDA for their

vision in creating partnership-driven

conservation initiatives, and we especially

appreciate each of the six state NRCS offices

who were instrumental in crafting a competitive

proposal," said Betsy Ward, President and CEO

of USA Rice. "This is a giant step forward for

conservation in ricelands with many more steps

to come."

"We applaud the many rice producers who

integrate extra conservation measures into their

rice production to maintain water quality and

provide much-needed waterfowl habitat," said

USDA NRCS Chief Jason Weller.

"The partnership between DU, USA Rice, and

USDA offers increased technical and financial

assistance to help producers accomplish these

goals on their land, and the tangible benefits to

farmers, the environment, and all Americans

will be felt for a long time."The Arkansas NRCS

has scheduled a meeting Friday, January 16, to

announce the state's RCPP project participants,

and to invite local rice farmers to an

informational session with RCPP Project

Sponsors. All 50 states and Puerto Rico received

NRCS funding for conservation projects and

have scheduled similar events in the coming

week.

Contact: Michael Klein (703) 236-1458

Louisiana Rice Receives

RCPP Funding

From left: Donald Berken, Kevin Norton, Jeff

Durand and Randy Jemison

BATON

ROUGE, LA -

The Natural

Resources

Conservation

Service (NRCS)

announced four

new

conservation projects today, two of which will

directly benefit the state's rice producers."We set

out to deliver conservation programs that would

work on rice, waterfowl, water quantity, quality,

and sustainability, and we've done just that,"

said Kevin Norton, the NRCS State

Conservationist for Louisiana. "This is quite

special, bringing big new resources to Louisiana

that will translate into real conservation."

The state received approximately $1.5 million

for the three state conservation programs, and

Norton says the lion's share is going to the Rice

Stewardship Program in Southwest Louisiana,

proposed collaboratively by Ducks Unlimited,

the Louisiana Rice Growers Association, and

others. That region represents about 70% of rice

growing in the state, but rice producers in other

areas of the state will be eligible to participate in

the national USA

Rice-DU RCPP

program (see

lead story

above)."Rice is

good for ducks

and conservation

is critical," said

Alicia Wiseman,

Rice Stewardship Program Coordinator for

Ducks Unlimited Southern Region. "These

programs will help feed people, support

families, and provide habitat for waterfowl."

"This is a good day for Louisiana rice producers

who are excellent stewards of the land, and play

an important role in our state's economy and in

helping to feed us all sustainably," said Jeff

Durand, a Louisiana producer and co-chair of

USA Rice's Conservation Stewardship

Partnership who spoke at the event.The

programs are continuing to take shape and

develop and all rice RCPP programs are

expected to be major areas of discussion at state

meetings next month.

Contact: Michael Klein (703) 236-1458

California Rice

Commission Secures State-

Specific RCPP Funding

SACRAMENTO, CA - In a separate

conservation proposal, the California Rice

Commission (CRC) received an RCPP grant of

$7 million. This program will support many of

the same practices offered by the highly

successful Waterbird Habitat Enhancement

Program and efforts to develop a viable nesting

cover crop system for idled ricelands."Having

these additional resources should provide a big

boost to our industry's longstanding wildlife

conservation efforts," said Paul Buttner,

Manager of Environmental Affairs for the CRC.

"California ricelands provide habitat to nearly

230 wildlife species - millions of birds that fly

along the Pacific Flyway, and the value of

winter waterfowl habitat in California Rice is

estimated at $2 billion."

Contact: Deborah Willenborg (703) 236-1444

Western Rice Belt

Conference and Texas Rice

Council Annual Meeting set

for Jan. 21

PRESS RELEASE

Posted: Wednesday, January 14, 2015 4:00

am

PRESS RELEASE

The annual Western Rice Belt Production

Conference will be held on Wednesday,

January 21, 2015 at the El Campo Civic

Center. The conference will begin with an

Early Bird Session on Precision starting at

7:30 am. Registration for the conference will

begin at 8:00 a.m., with the remainder of the

program to follow. After a catered lunch,

provided by area agribusiness sponsors, the

program will conclude around 2:00 pm.

This joint effort of local rice committees,

The Texas A&M AgriLife Extension

Service, U.S. Rice Producers Association,

and Texas A&M AgriLife Research will

offer growers and others the opportunity to

hear presentations from the top Extension

and Research scientists from Texas and

Louisiana as well as respected individuals

from the rice industry. Topics and speakers

will include: Rice Policy Update, Dr. Joe

Outlaw; Rice Market Update, Dennis

Delaughter; Localized Effect of Carryover

Rice, Jay Davis; Rice Disease Mgmt

Update, Dr. Don Groth; Pesticide Laws and

Regs Update, Greg Baker; Groundwater

Update, Neal Hudgins; and Insect

Management in Rice, Dr. Mo Way.

The Texas Rice Council will also conduct

their Annual Meeting in conjunction with

the 2015 Western Rice Belt Conference. The

Texas Rice Council will conduct their

producer elections during the lunch hour,

following the announcement of the Rice

Poster Contest.For more information,

contact the Texas AgriLife Extension office

in Matagorda County 979-245-4100 or

Wharton County 979-532-3310, or go

tohttp://wharton.agrilife.org and click on

Events to view a flyer for the Rice

Conference. 2 CEU‘s (1 L&R and 1 IPM)

for TDA Pesticide Applicators will be

awarded at this event. CCA hours have been

applied for and will be offered pending

approval.

http://www.yourhoustonnews.com/friendswood/living/western-

rice-belt-conference-and-texas-rice-council-annual-

meeting/article_cb18ba90-5b4a-53f3-8e39-

10fb8992b503.html?utm_source=USA+Rice+Daily%2C+January

+14%2C+2015&utm_campaign=Friday%2C+December+13%2C+

2013&utm_medium=email

Compete on quality

India should not oppose Pakistan's bid to

call its rice basmati

Business Standard Editorial Comment | New

Delhi

January 13, 2015 Last Updated at 21:38 IST

India's bid to protect its basmati-rice

growers through getting a geographical

indications (GI) registration has come up

against formidable hurdles. These come not

just from basmati growers in Pakistan, but

also Madhya Pradesh, which it did not list

among traditional basmati-growing regions.

TheAgricultural and Processed Food

Products Export Development

Authority (Apeda) wants to thwart other

countries from selling their scented rice as

basmati globally. Many attempts have been

made in the past by foreign rice-trading

companies to confuse consumers by using

similar-sounding names, such as Jasmati and

Kasmati.

Apeda has spent crores of rupees on court

cases abroad to preserve the basmati epithet

for the typical Indian long-grained, non-

sticky aromatic rice. The GI registration at

home would strengthen its case in

international litigation.Apeda's woes are

rooted in the fact that it has sought the GI

status for basmati grown only in the

contiguous region spanning Punjab,

Haryana, Himachal Pradesh, western Uttar

Pradesh, Uttarakhand, Delhi, and parts of

Jammu and Kashmir. Madhya Pradesh's rice

industry has claimed that its state is also

located in the Indo-Gangetic belt, part of

which is suited for basmati cultivation.

Pakistan's Punjab and adjoining regions,

especially the foothills of the Himalayas, are

well known for producing basmati rice -

which, in fact, is the main competitor of the

Indian basmati in the international market.

The Geographical Indications Registry,

which grants the GI status, had observed in

an order issued in December 2013 that it

was duty-bound to guard the interests of

producers of all the areas from where a

product came. Apeda is, however, now

contesting this plea in the Chennai-

based Intellectual Property Appellate

Board (IPAB).

Technically, the GI label is meant to set

apart a product whose quality, reputation

and other traits are attributable to its

geographic origin. This definition applies

perfectly only to the desi basmati, such as

Basmati 370, whose photosensitive nature

allows it to be grown only in a region having

a particular day-length during the basmati-

growing season. That limits basmati

cultivation to only the northwestern part of

undivided India. However, the new evolved

basmati types, including the high-yielding

dwarf and semi-dwarf varieties, are, by and

large, not photosensitive and can, thus, be

grown in areas outside the traditional

basmati belt as well.

These varieties have now almost totally

replaced the desi basmati in the domestic

and export markets. It would, therefore, be

unfair to deny them basmati status

irrespective of where they are grown.It was

indeed Pakistan's folly that it did not accept

India's offer in the past to jointly seek global

GI registration for basmati. Now that

Pakistan's basmati industry has, on its own,

come forward for similar cooperation,

Apeda should not drag its feet. India can

compete with Pakistan in the global

basmati bazaar on the basis of quality. A

denial of Islamabad's claims may not, in any

case, withstand the scrutiny of the World

Intellectual Property Organization.

Source with thanks:The Business Standard

Buffalo meat beats basmati

rice in export market

Ajay Modi Last Updated: January 14,

2015 | 17:08 IST

Buffalo meat exports have overtaken those

of basmati rice for the first time. Both fall in

the category of agriculture/processed

exports, with the latter dominating the scene

for the last several years. According to

Commerce Ministry data, India exported

buffalo meat worth $3.22 billion in the April

to November period of the ongoing financial

year [2014/15], up over 16 per cent from

corresponding period of last year

(2013/14).In the same period, the figure for

basmati rice remained unchanged at $2.96

billion. Basmati rice exports in 2013/14 was

$4.87 billion as compared to buffalo meat's

$4.35 billion.

Buffalo meat exports saw a phenomenal

growth of 31 per cent in quantity and 36 per

cent in value last year (2014).Among the top

export destinations were Vietnam, Malaysia,

Egypt, Thailand and Saudi Arabia.Russia

has recently opened up its market for Indian

buffalo meat and four plants have been

certified by Russian authorities.

It is interesting to note that all this has

happened within the first year of Prime

Minister Narendra Modi tenure.As BJP's

Prime Ministerial candidate prior to the

elections last year, Modi, in his election

campaigns, had attacked the then Congress-

led UPA government for promoting a 'Pink

Revolution' by encouraging meat exports.

Naturally, there was a fear among meat

processors that exports will take a hit if the

BJP-led NDA coalition came to power. This,

however, has not happened. The government

has made no hostile move towards this

sector and exports continue to boom.The

country has successfully built an enviable

reputation of being a reliable and

competitive exporter of buffalo meat. So far,

there has been no incidence of livestock-

related diseases such as foot and mouth

disease from any of the importing nations.

Source with thanks:Business Today

Rural India slowdown

threatens Modi's promise of

" "better days

Rajendra Jadhav, Nivedita Bhattacharjee and

Suvashree Chaudhury Mumbai/New

Delhi/Padali Last Updated: January 15,

Sugarcane grower Nilesh Kadam has

abandoned plans to buy a tractor. He doesn't

have enough money, like many farmers hit

by erratic weather and sliding prices for the

cotton, soybean and rubber they produce.

Tougher times in rural communities spell

bad news for Prime Minister Narendra

Modi, who swept to power last May with a

promise of "better days" - new jobs and

development to lift hundreds of millions of

Indians out of poverty.

"I was expecting a hike in cane prices this

year, but mills are paying 20 per cent less

than last year. I don't have enough money to

buy even a motorcycle, let alone a tractor,"

says the 29-year-old Maharashtrian

farmer.It's not just the weather gods and

capricious markets that are to blame for the

hardship besetting Kadam's village of

Padali, 280 kilometres south of Mumbai. A

shift in government spending ordered by

Modi is also hitting rural consumers and the

industries that serve them."Rural

consumption was one of the pillars holding

up growth," said Aditi Nayar, senior

economist at Icra, the Indian arm of ratings

agency Moody's.

She expects weak demand in rural areas to

have contributed to a slowdown in economic

growth in October-December from 5.3 per

cent in the previous quarter.Tractor maker

Mahindra & Mahindra is idling its factories

for a few days a month after sales slid by

nearly a third towards the end of last year.

Consumer goods firms and auto makers

have also reported weak sales.More than

800 million of India's 1.25 billion people

live in the countryside, accounting for 35 per

cent of the economy. Modi's Bharatiya

Janata Party (BJP) faces the verdict of voters

towards the end of this year in Bihar, a large

state in the Hindi belt where many of the

rural poor live. West Bengal and Tamil

Nadu are among major states that go to the

polls in 2016.

WELFARE CUTBACKS

Seeking to woo rural voters, the last

government raised grain purchase prices,

bailed out indebted farmers and promised

100 days paid labour a year to anyone who

wanted it.The measures boosted the

spending power of rural consumers and

cushioned business from a fall in urban

demand after the 2008 financial crisis.

Eventually, though, they stoked inflation

and forced the Reserve Bank of India (RBI)

to hike interest rates.To cap inflation and

state borrowing, Modi has limited rises in

farm support prices to below the inflation

rate and scaled back the jobs scheme.

He wants to invest savings in infrastructure

and skills to boost India's long-term

growth.While inflation has eased with these

policies, firms that profited from booming

rural demand are struggling due to the

sudden slowdown.Rajesh Jejurikar, chief

executive of the farm equipment and two-

wheeler division at Mahindra & Mahindra,

said delayed rains, poor crops and reduced

disposable incomes had hit tractor sales at

the market leader.Trends show a striking

divergence between town and country sales

of two-wheelers: motorcycles - more

popular in the countryside - fell 3.5 per cent

in December while scooters, ridden mainly

by city dwellers, leapt 24 per cent from a

year earlier, industry figures show.

GLOBAL COMMODITIES FALL

Modi's shift from policies that support

demand to ones boosting investment and

productivity have also coincided with a

steep fall in global prices of farm

commodities, making imports cheaper and

hitting Indian exports."Exports of many

commodities have become less lucrative and

in some cases unfeasible," said Faiyaz

Hudani at Kotak Commodity Services.The

government's ability to ramp up spending on

roads, railways and irrigation projects that

would benefit rural India is, meanwhile,

hobbled by budget constraints.

Aides to Finance Minister Arun Jaitley have

advised him to loosen fiscal deficit targets in

next month's budget to create room to

invest. It's not clear, though, whether he will

do so as that could delay a growth-boosting

interest rate cut by the central bank.Since his

general election triumph, the BJP has racked

up a series of gains in state polls - including

in Maharashtra. But Kadam, who voted for a

rival party, isn't convinced and says the

patience of rural voters is being tested.

"During the campaign, Modi was saying

better days are coming. Where are the better

days?" the young Maharashtrian farmer

asks. "He has made things worse for us."

(Reuters) http://businesstoday.intoday.in/story/rural-india-

slowdown-poses-threat-modi-promise-of-better-

days/1/214619.html

Functional and healthy

GM foods have large

market potential

By Nathan Gray+

14-Jan-2015

Last updated on 14-Jan-2015 at 14:55 GMT

potential, says new research.

The new data,

published in Nature

Biotechnology,

suggests that while the

majority of

developments in genetically modified crops

provide no additional health benefit to the

consumer, those that do have good market

potential.Led by Hans De Steur of Ghent

University, the team behind the research said

various GM crops with health benefits have been

developed – with notable examples including

rice enriched with pro-vitamin A (also known as

'Golden Rice') and folate-enriched rice,

developed at Ghent University.

―Fifteen years after the development of 'Golden

Rice', which was the first GMO with health

benefits, the developers of such transgenic

biofortified crops have little reason to celebrate,‖

said the team. ―To date, none of these GMOs are

approved for cultivation, unlike GMOs with

agronomic traits.‖ Despite these regulatory

hurdles, six major staple crops have been

successfully biofortified with one, or more,

vitamins or minerals.Now the research team has

‗convincingly demonstrated‘ that there is a

strong market potential for such products –

showing that consumers are willing to pay more

for GM food with health benefits, with

premiums ranging from 20% to 70%.

―This differs from GMOs with farmer benefits,

which are only accepted by consumers when

they are offered at a discount,‖ said the

team.Experts from the Infant Nutrition Council

(Aus-NZ), Malaysian Dieticians Association and

Euromonitor will discuss how Apac countries

differ in their infant formula needs, and how to

best market their products within Asia‘s strict

regulatory framework.The team added that

although GM foods with health benefits ‗are not

a panacea‘ for eliminating malnutrition, they do

offer a complementary and cost-effective

alternative when other strategies are less

successful or feasible.

Source: Nature Biotechnology

Voume 33, Pages 25–29, doi:10.1038/nbt.3110

"Status and market potential of transgenic

biofortified crops"

Authors: Hans De Steur, et al

CCC Announces Prevailing World Market Prices

WASHINGTON, DC -- The Department of Agriculture's Commodity Credit Corporation today announced the

following prevailing world market prices of milled and rough rice, adjusted for U.S. milling yields and location, and

the resulting marketing loan-gain (MLG) and loan deficiency payment (LDP) rates applicable to the 2014 crop,

which became effective today at 7:00 a.m., Eastern Time (ET). Prices are unchanged from the previous

announcement.

World Price MLG/LDP

Rate

Milled Value

($/cwt) Rough

($/cwt) Rough ($/cwt)

Long-Grain 16.76 10.63 0.00

Medium-/Short-Grain 16.19 10.90 0.00

Brokens 10.11 ---- ----

This week's prevailing world market prices and MLG/LDP rates are based on the following U.S. milling yields and

the corresponding loan rates:

U.S. Milling Yields

Whole/Broken

(lbs/cwt)

Loan Rate

($/cwt)

Long-Grain 55.83/12.59 6.50

Medium-/Short-Grain 62.39/7.92 6.50

The next program announcement is scheduled for January 21.

CME Group/Closing Rough Rice Futures

CME Group (Prelim): Closing Rough Rice Futures for January 14

Month Price Net Change

January 2015 $10.985 - $0.255

March 2015 $11.150 - $0.295

May 2015 $11.405 - $0.280

July 2015 $11.635 - $0.275

September 2015 $11.210 - $0.275

November 2015 $11.290 - $0.070

January 2016 $11.590 - $0.040

March 2016 $11.590 UNCH