Dubai’s rice re-export trade gains strength

tải xuống (9) DUBAI: Dubai is taking new steps to strengthen its role as a regional re-export hub for rice and other commodities.

With re-exports having almost doubled over the past five years, Dubai is now described as a key re-export hub.

With advanced infrastructure, excellent connectivity, clusters of distributors and a strong base of regional and international logistics firms, Dubai remains a preferred destination for re-exporting to the whole region despite recent economic woes.

Dubai’s exports head not only to the Middle East and Africa, but a great deal goes to South Asia as well.

It is against this scenario that Rice Dubai 2011 envisions Dubai to be a thriving re-export market for Cambodian rice exporters.

The founding committee of Rice Dubai 2011 is led by a top businessman in Dubai, Faisal Ali Mousa, who will lead a core delegation to Cambodia in the first week of September to explore the possibilities of the government entering the export market to impact positively the rice export market and rice re-export market from the UAE to the rest of the world.

Rice Dubai 2011 is an exhibition body by Dubai-based businessmen who have ventured out with the support of the Dubai Ministry of Foreign Trade to organize the first Rice Exhibition in the UAE.

The delegation will meet with Cambodia’s Ministry of Commerce (MoC) key officials. Mousa says the delegation looks forward to meet with Seun Sotha, adviser, MoC, and Cham Prasidhi, senior minister of commerce of Cambodia.

Rice Dubai 2011 is a concept of exhibition, which is scheduled from Nov. 3-5 at Madinat Jumeirah, Dubai, to bring together global players from the rice producing and exporting markets to benchmark new business thoughts and impact effectively the reach of rice to its consuming markets.

The initiative could not have come at a better time, than now, when the world is screaming ‘food crisis’ or ‘famine’.

The UAE is already the leading top re-exporter of rice in the world and its feasible logistical location on the world map as well as its very accommodating export-import trade laws makes re-export easy from Dubai ports.

Keeping with the need for rice exports to be increased from Cambodia, the government of Cambodia in 2010 axed its rice export licenses to exporters. Cambodian Prime Minister Hun Sen issued a new order in this regard to replace an old order of 2008 and introduced the Green Trade Permit.

This initiative was taken to sell more than 200 tons of the grain.

According to International Business Times, agriculture is central to Cambodia’s socio-economic development, contributing nearly 33 percent to the country’s GDP.

Eighty-five percent of the population lives in rural areas and agriculture is the primary source of livelihood for the rural poor.

This sector has become stable and less dependent on natural changes because of the advances in irrigation scheme and application of agricultural technologies.

Cambodia has been successful with rice production during the last decade, producing 7.58 million tons in 2009, of which the country has another surplus of about 3.5 million tons for export.

Cambodia’s rice cultivated area could be expanded up to 3.5 million hectares from 2.6 million hectares.

This could help the country reach a potential harvest of 12.25 million tons of rice.

The vision of the government of Cambodia is to transform the country into a rice basket making it a major rice exporting country in the global market.

In this regard, it has set the year 2015 as the target to achieve paddy surplus of more than four million tons and achieve rice export of at least one million tons.

The RGC has planned a number of programs and activities to increase rice production to make Cambodia one of the major rice exporting countries in the near future.

To address the climate change problem, Cambodia needs to increase its adaptive capacity to climate change and develop more climate resiliency programs.

Cambodia, rightly the size of Oklahoma, has a vast alluvial plain devoted to rice farming, according to the Cambodian Department of Agriculture.

Several major rivers, including the Mekong and Toni Sap, dissect this large lowland plain.

In Cambodia today, rice is the overwhelmingly predominant food crop being grown on an estimated 2.3 million hectares or nearly 85 percent of the country’s total cultivating area.

The rice cultivators grown are incredibly diverse with crop scientists estimating there are over 3,000 varieties being cultivated in the country.

Government officials in Cambodia today are concentrating on the nation increasing its revenue through exports.

Country to keep 3.8 million hectares of rice cultivation land

dien-tich-lua-2811 (CPV)– The Ministry of Agriculture and Rural Development of Vietnam has submitted a plan to Prime Minister Nguyen Tan Dung which aims to encourage agricultural development nationwide until 2020, with a vision to 2030.

Under the scheme, the area of agricultural land will be 26.7 million hectares until 2020 while the land used for rice cultivation will be kept stable at 3.8 million hectares.

The scheme also set targets for the breeding industry. By transfering production to the farmhouse mode the plan aims to produce 3.5 million buffalos, 12 million cows, 34.4 million pigs and 358 million domestic fowls.

In terms of forestry, the scheme focuses on managing and using 16.7 million hectares of planned land sustainably and increasing salt production areas to 15,000 hectares.

Vietnam rice price shoots up

0 HANOI (Commodity Online) : Rice price in Vietnam, world’s largest rice exporter climbed sharply after global demand picked up, according to Viet Nam Food Association (VFA).

Purchasing price of material rice last week jumped by VND250-300 per kilo to VND8,600-8,700 per kilo for five-per cent-broken rice, and to VND8,45-8,500 per kilo for 25-per cent-broken rice, against the previous week, VFA said.

Price of finished rice also climbed by the same rate, VND300 per kilo to VND10,150 per kilo for five-per cent-broken rice, VND9,850-VND9,950 per kilo for 15-per cent-broken rice, and VND9,350-VND9,450 per kilo for 25-per cent broken rice.

The association said the increase of the domestic Rice prices was due to a promotion of purchasing rice for previously signed export contracts of local rice exporters.

Meanwhile, there was a rumour among local rice traders that the increase in purchasing prices of rice was due to a speculation of rice to surge in export price with Thai rice in the near future.

VN, Sierra Leone foster rice, seafood ties

images (7) VGP – Việt Nam and Sierra Leone will work to bolster cooperation on seafood and rice production, through the exchange of experts in the field.

Deputy Minister of Agriculture and Rural Development Nguyễn Thị Xuân Thu and Sierra Leone’s First Deputy Minister of Agriculture, Forestry and Food Security Alie Mansaray signed a memorandum of understanding on the cooperation on July 27 in Hà Nội, .

Mr. Mansaray said Sierra Leone treasures agricultural cooperation with Việt Nam, considering it a leading partner and pledged to create favorable conditions for Vietnamese experts and skilled workers to work in his country.

During the talks held earlier on July 25, Mr. Mansaray said Sierra Leone needs agricultural cooperation with Việt Nam as his country is dealing with low-yield rice varieties, outdated machines and cultivation methods, and insufficient amountsof fertilizers…

Ms. Thu said Việt Nam has sent agricultural experts to Sierra Leone to help it develop rice institutes, and will next month send more specialists to help outline a bilateral cooperation plan regarding rice and seafood.

Summer-autumn rice prices escalate

tải xuống (11) Rice prices have soared to an all time high of VND6,400-6,700 per kilogram, causing farmers to hold on to their rice in expectation of higher rates while traders are stockpiling the grain in large quantities.
Farmers in the Mekong Delta are nearing the end of their summer-autumn rice harvest season and rice prices have accelerated by approximately VND1, 500 per kilogram since the start of the harvest.

Nguyen Van Sau from Thoai Son District in An Giang Province said that summer-autumn rice prices are now the highest ever in the last few decades.

Price of husked rice too has risen. Processing plants paid VND9, 100-9,200 per kilogram at the Cai Rang wholesale market in Can Tho City yesterday.

Nguyen Thien Khanh, owner of a rice processing company says the price of summer-autumn rice is VND1, 000 higher than in the previous winter-spring rice crop season.

Rice output likely to fall sharply in South Korea

tải xuống (7) SEOUL (Commodity Online): Fast growing industrialization in South Korea is likely to its agriculture as country’s Rice production is likely to hit to ten year low this season.

According to Korea Rural Economic Institute, South Korea’s rice production is forecast to hit a 10-year low this year due to shrinking farm land and lower yields caused by unfavorable weather conditions.

Rice production is expected to reach 4.12-4.24 million tons this year, down 1.2-4.0 percent from the previous year’s harvest of 4.29 million tons.

This year’s harvest could hit the lowest amount in 10 years. Rice production has been on a decline since 2001 when it came to 5.51 million tons.

Heavy rains and other extreme weather conditions led to the shrinkage, it added. Declining farm land was also cited as a reason for the lower output.

The institute said that the final figure will hinge heavily on weather conditions until next month as sunlight exposure during that period determines about 74 percent of annual output.

A smaller harvest could Lead to a hike in the price of rice, a major staple grain for Koreans. Rice prices are closely monitored by the government which has been striving to keep inflation in check.

The government helps stabilize the price of rice here by purchasing and unloading the grain in the market. The agriculture ministry said that it plans to buy about 340,000 tons of rice harvested this year from Oct. 25 to Dec. 31.

Meanwhile, South Koreans’ per-capita daily rice consumption is expected to contract up to 2.2 percent on-year to 195.3-196.4 grams this year, the institute said. This represents an annual per-capita rice consumption of 71.2-71.6 kilograms, the lowest amount in history, it added.

Rice export: many businesses “give up the games”

tải xuống (1)

After two months, the rice exporters who cannot meet the requirements stipulated in the Decree No 109, will be weeded out. To date, only 20 businesses have been recognized as meeting the requirements to become rice exporters.

Overly high requirements

The first Vietnamese business, which got the certificate on meeting all the requirements for rice export from the Ministry of Industry and Trade on June 9, or seven months after the Decree 109 was promulgated, was Angimex.

To date, about 20 enterprises have been allowed to export rice from October 1, 2011, the day when the decree takes effects. Meanwhile, there are more than 200 rice exporters in the market.

Under the new regulations, rice exporter has to have at least one specialized storehouse with the capacity of 5000 tons of rice, and a husking factory with the minimum capacity of 10 tons of rice per hour.

A director of a rice export company said that in order to build storehouses, one should have at least 5000 square meters of land located on advantageous position.

This proves to be an impossible mission for a short time. Even the Southern Food Corporation, a big rice exporter, once complained that it was very difficult to find suitable land plots to build stores under the government-initiated program on developing the storehouse system with the capacity of four million tons, because of the land price increases and the capital shortage.

After having land, enterprises would need to spend another 30-40 billion dong to build and run the stores. Also, as per the new regulation which has been released by the Ministry of Agriculture and Rural Development (MARD), enterprises also have to have driers and rice polishing lines.

Angimex, for example, has made heavy investment to build the storehouse system capable to contain 65,200 tons of rice, 11 husking workshops with the capacity of 5-30 tons per hour.

Under the Decree 109, enterprises also have to reserve the volumes of rice which are equal to 10 percent of the rice export volume of the last six months. If an enterprise exported 5000 tons in the last six months, it would have to keep in stocks at least 500 tons or rice. This means that 4.5 billion dong would be left idle.

Discouraged, many exporters accept to give up the games

A rice exporter complained that he has found the land for storehouse, but he still thinks about whether to continue the investment.

For the last many years, enterprises have been relying on their experiences in negotiations and market forecasting to do business. However, now, with the new decree, they have to jump into the fields where they do not have advantages – husking, drying and polishing rice.

Also according to the rice exporter, for the last many years, rice export companies have been flexibly using the storehouses of general sales agents and satellite enterprises, and this would be a big waste if they have to build storehouses of their own.

Meanwhile, it is unclear if farmers can use the same storehouses to reduce the post-harvesting loss percentage from the current level of 12-13 percent.

Many enterprises have reportedly sent applications to the Ministry of Industry and Trade for the certificates on meeting the requirements for rice export. However, the ministry has rejected the applications because of the lack of some necessary documents. Meanwhile, many other enterprises still keep quiet and take no actions. They do not intend to spend money to upgrade the material facilities, which also means that they plan to give up the games.

Excessive rice cultivation puts soil fertility at risk

images Southern Institute for Agricultural Science and Technology director Bui Chi Buu spoke with the newspaper Nong thon Ngay nay (Countryside Today) about plans to expand the area under rice cultivation.

We do not know the exact area of rice cultivation in the Mekong Delta, but right now there are about 2.6 crops a year. Though agricultural land in the delta is fertile, it is dangerous to overexploit the land. Farmers in other countries are afraid of cultivating three crops of rice a year, as the soil’s fertility is gradually reduced. I am not opposed to autumn-winter crops, but we should be aware of the cost of growing the crops. I think the Ministry of Agriculture and Rural Development already carefully considered this before the expansion of the autumn-winter crops by 100,000ha. However, provinces outside the delta must now consider the specific production conditions in their localities.

The whole delta grows about 2.6 crops each year. In other countries, farmers plant three crops that are not rice to avoid insect problems. Cultivated soil will use polyphenol to ensure the soil maintains its nutrients throughout the three successive crops. Farmers will have to invest a great deal of money and time before having a highly productive yield.

The number of crops planted each year in the Mekong Delta still needs to be determined. To do so, we must have an accurate number of cultivated land in the region. As far as I know, there are very few places capable of planting two crops of rice and one cereal crop in the current 500,000ha of cultivated land. Most of the rest grow three crops of rice each year.

The existing coefficient is already high in the delta; it may be raised, but it risks exploiting the soil. The delta has rich land, but it is not inexhaustible. The soil needs alluvium left by floods. In my opinion, the slogan ‘Living along with flood’ remains valuable.

I think they do not. It is possible to grow rice at any time. In the southern province of Tien Giang, for instance, many localities grow seven crops of rice in two years. However, as I already said, rice grows slowly if the soil does not have time to become fertile again.

We must alternate one cereal crop between two crops of rice. If we grow rice uninterruptedly, ploughing the soil then becomes mandatory. I want to remind localities that the Ministry of Agriculture and Rural Development only dictates the principle of expanding rice cultivation areas. Each of the localities need specific planning to lower the risks. They should not harvest too late, harvest time should be no later than November 15 this year. — VNS

Thailand to start rice pledging from November

images (4) BANGKOK (Commodity Online) : World’s largest Rice exporter Thailand said it will form a Rice Policy Committee before starting the rice pledging in November.

This will enable country’s new government to pay farmers Bt15,000 a tone for unfilled Paddy and Bt20,000 for paddy jasmine rice as the new board should be set up promptly to plan for the upcoming rice-harvest season.

However, it has not yet set the prices of Pathum rice and sticky rice. Thailand has about 2 million tonnes of rice in its stockpiles.

National Rice Policy Committee faces a major task in drafting plans for implementation of the rice policy involving

It will also consider whether to use the same conditions of the rice-guarantee project for farmers to join the pledging project. The Commerce Ministry will also cooperate with the Agriculture and Science ministries to survey Rice plantations to ensure accurate figures on plantation area and expected production.

In addition, the Commerce Ministry will propose that the new board gradually release rice from the current stockpiles to clear warehouses for new crops.

The ministry reported that the volume of the country’s rice exports from January to August 24 was 8.2 million tonnes. Export value was $4.55 billion (Bt137.5 billion).

The average export price for jasmine rice is $1,004 a tonne, $626 a tonne for 100 per cent white rice, and $555 a tonne for parboiled rice.

Whirlwinds damage over 2,000ha of rice

tải xuống DONG THAP — Heavy rains and whirlwinds ruined over 2,000ha of summer-autumn rice in southern Dong Thap Province’s Thanh Binh District on Monday afternoon.

The rice yield is forecast to be 20-30 per cent reduced.

Local farmers expect to harvest the rice in the next few days.

Authorities have directed the full capacity of water pump operation to save the rice from flood. — VNS