World Rice Milling Industry Changing Patterns and Coming Trends

World Rice Milling Industry Changing Patterns and Coming Trends
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Potential Trade Deal with Malaysia

Malaysia imports approximately 1 million tons of long-grain rice annually, largely from regional suppliers like Thailand and Vietnam. In addition to the United States, eight countries in Asia and North and South America are negotiating a broad regional trade agreement, and Malaysia was recently accepted into the group
source: http://www.usarice.com/

Import of Rice from Mynamar

According to a reliable source, the deadline for import of 30 metric tonne of rice from Myanmar to Manipur on zero duty has been extended till October 1 next year by the notication number 102/2010-Customes issued by the the Ministry of Finance, Government of India. But the extension of the deadline is not going to be of any use as possibility of issuing the import license is remote.

2010 USA Rice Outlook Conference

The 2010 USA Rice Outlook Conference's educational program will include an outlook on the global and U.S. economies and implications for agriculture as well as a farm policy outlook, focusing on factors shaping the development of the next farm bill.
2010 USA Rice Outlook Conference

International Rice trends

India, China, Thailand, Vietnam are the major producers of rice; prices are at a 10 year high while global stocks are at a 30 year low; Main exporters are Thailand, Vietnam, exporting about 4-5 million tons
every year;
Vietnam has lost about 500,000 hectares of irrigated lands since 2001 to 2007 to industrialization. Irrigated rice accounts for 80% of Vietnam's rice area and is grown on about 3.4 Million hectares and providing about 90% of the national production. The minister of Agriculture in Vietnam Cao duc
Phat has said that the loss is expected to equal current rice exports. It would mean the Vietnam will no longer have extra rice for export; Vietnam's rice farms are also affected by pests ;

Vietnam, India, Egypt and Cambodia has limited its rice exports. Thailand
has not issued any restrictions on its exports yet;
India has placed its rice exports at $1000 per ton as a disincentive even as
prices are $700 to 750 per ton of rice.

Commodity Trends: Global rice trade to rise 6%

Commodity Online
Global rice trade is set to rice by 6% this year to a 3-year high of 30 mn tonnes, according to International Grains Council. The global wheat production may decline by 2.37 per cent to 659 million tonnes (mt) in 2010, while output in India, the world's second-largest producer of the grain, is expected to remain stable at last year's level.
A recent report of the Council said that rice trade would be higher than the five-year average due to a rebound in shipments to Asia Deliveries to Far East Asia are forecast to rise 20%, to 8.1 million tonnes, due to strong imports by Bangladesh and the Philippines.
After almost close to two years of the ban on export of non-basmati rice in the wake of fears of domestic shortage of rice from early 2008, the Government has partially lifted the ban on export of non-basmati rice by permitting its exports to Sri Lanka and Nepal with a ceiling on diplomatic grounds to keep the friendly ties with neighbours.

REGISTRATION OF CONTRACTS FOR EXPORT OF BASMATI RICE

Agricultural and Processed Food Products
Export Development Authority
(Ministry of Commerce, Government of India)
April 1, 2010

TRADE NOTICE

REGISTRATION OF CONTRACTS FOR EXPORT OF BASMATI RICE
INCLUDING PUSA BASMATI 1121 (DEHUSKED BROWN, SEMIMILLED,
MILLED BOTH IN EITHER PARBOILED OR RAW CONDITION)

Vide Notification No 5 /2009-2014 dated September 07, 2009,
issued by Director General of Foreign Trade, Govt. of India, New Delhi
(DGFT) as amended vide Notification No 21/2009-2014 dated December
14, 2009 the export of Basmati Rice is allowed subject to the following
conditions:

1. Grain of rice to be exported shall be more than 7 mm of length
and ratio of length to breadth of the grain shall be more than 3.6;
2. Exports to Russian Federation permitted subject to preshipment
QUality certification issued by Sri Ram Institute for
Industrial Research or any other agency as may be notified
from time to time (Refer addendum placed at the end).
3. Export permitted only if the minimum FOB price is US$ 900
per ton or Rs.41,400/- per ton .
In case any foreign commission is paid at the time of exports or
subsequently then MEP shall be higher than US $ 900 per ton,
to the extent of foreign commission paid/payable and MEP of
US $ 900 per ton shall be maintained, exclusive of the foreign
commission.
4. Export of Basmati Rice will be restricted through the following six ports only :

(i) Kandla
(ii) Kakinada
(iii) Kolkata
(iv) JNPT, Mumbai .
(v) Mundra, and
(vi) Pipavav

5. All other provisions of the Notification no. 93 (RE-2007)/2004-09
dated 1st April, 2008 shall remain unchanged, and shall continue to apply.
6. Export allowed subject to registration of contracts with APEDA, New Delhi,prior to shipment
APEDA has, therefore, evolved the following procedure for the Registration of the Contracts and issuance of Registration-cum-Allocation Certificate(RCAC).PROCEDURE Application for Registration of Contracts for
export of Basmati Rice will have to be filed by the exporters on line at APEDA website
viz.www.apeda.com
The applications will be received in the office of the Agricultural and Processed Food
Products Export Development Authority (APEDA), 3rd Floor, NCUI Building, 3 Siri
Institutional Area, August Kranti Marg
(Opp.Asiad Village), New Delhi – 110016 or one of its regional offices. (Detailed addresses at Annexure I)
PROCESSING CHARGES
Processing charges of Rs. 25 per MT of the  contracted quantity shall be paid by the applicants. This amount shall be paid by Demand Draft/pay Order drawn in favour of APEDA. All applications for registration of
contracts should be accompanied by Demand Draft/Pay Order of requisite amount .

REGISTRATION
The applications shall be scrutinized in the office of APEDA and a Registration-Cum-Allocation Certificate (RCAC) shall be issued to the applicants for quantity contracted.

DESPATCH
DETAILS
While registering a new contract online exporters are required to provide details of
actual shipments made against RCACs issued w.e.f. April 1, 2010. RCACs in
original with copies of shipping documents are required to be submitted after
completion of dispatches against each RCAC

VALIDITY The RCAC shall be valid for such period as may be specified in the LC/Contract.
SELF CERTIFICATION
It would be mandatory for the exporters to furnish, along with their application a self
Certified certificate certifying that the product sought to be registered and exported
meets the specification mentioned above and
is of Indian origin.

AMENDMENT 1. RCAC once issued will not be amended in respect of the particulars of the buyer and
FOB price.
2. The validity of an RCAC will be extended, only once, for a maximum period of 45 days.
3. No amendment will be made in the RCACs, validity of which has already expired.
Asit Tripathy
Chairman

ADDENDUM
Exports to Russian Federation Permitted subject to pre-shipment quality certification issued by one of the following laboratories:

1. Shriram Institute for Industrial Research, New Delhi
2. Shriram Institute for Industrial Research, Bangalore
3. Insecticide Residue testing Laboratory, Pune,
4. Geochem Laboratories Pvt. Ltd., Mumbai
5. Reliable Analytical Laboratories, Mumbai
6. Delhi Test House, New Delhi
7. Arbro Pharmaceuticals Ltd., New Delhi
8. Vimta Labs, Hyderabad

September 16, 2009
DGFT had issued a Notification No 5/2009 –2014 dated 7th September 2009 for export of Basmati Rice at an MEP of US $ 900 per ton or Rs 41,400/- per ton FOB. There was an additional clause which is as under:

Export of Basmati Rice, as above shall be subject to the additional condition that foreign commission upto 12.5% is to be allowed for computation of MEP and any discount/commission in excess of 12.5% will not be allowed for calculation of MEP (and FOB price will have to be higher to that extent)

We had sought clarification on commission but DGFT vide their letter dated 16th September, 2009 have asked APEDA to maintain the Commission clause as it is.
Placed in the file is the Trade Notice which may kindly be approved for issue

Navneesh Sharma
DGM
Advisor (Cereals)

The China Market for Rice

China is by far the largest rice producer and consumer in the world. The magnitude of the rice market in China is hard to exaggerate and the potential role of China in the global rice system is immense. Approximately one-third of all the rice in the world is produced and consumed in China. Given its size we would expect the market for rice in China to be complex. However, the absolute and relative size of the China market for rice does not fully capture the complexity. In a real sense, several markets for rice coexist
simultaneously in China. These markets are differentiated by type, quality, location and customer focus. Imports and exports add further dimensions. In addition, the agricultural and food situation in China is changing rapidly, so what was true a few years ago must be reevaluated and the present situation cannot be simply projected into the future

China likely to import Indian basmati rice

China is expected, in the next 2-3 months, to allow Indian basmati rice imports as the two countries have recently reached a political consensus, a top official of agri-export promotion body Apeda has said
India, which has exported 10.6 lakh tonnes in the first six months of the 2009-10 fiscal, has been attempting for several years to resolve the trade barrier with China, though basmati rice has been exported to the neighbouring country through informal ch annels

Japan, China and Thailand Can Solve the Rice Crisis—But U.S. Leadership Is Needed

The world rice market is in crisis, with export prices soaring to $1,100 per ton in April, from
$375 per ton in December.2 If action is not taken, prices may double again, returning them to
stratospheric real levels last seen during the crisis in 1973/74 (Fig. 1). The loss of rice
production in Myanmar due to Cyclone Nargis complicates the task of stabilizing the world rice
market. Fortunately, the release of rice stocks by Japan, China, and Thailand can bring rice
prices down now, possibly cutting them in half by the end of June. But the U.S. government must
take the lead in making this happen. To do so, it will need to get U.S. rice growers on board with
the plan, a potentially difficult roadblock.

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