World Grain - February 2009 - 74

RICE QUARTERLY: RICE NEWS ROUNDUP

Vietnam's export rice hits record price
HANOI, VIETNAM - The Vietnam Food Association
(VFA) announced on Dec. 29 that Vietnam's average export
rice price set a record in 2008. This year's average export
rice price is $575 per tonne, the highest price level since the
nation has become a major rice exporter.
The price is nearly double the $295 price level of 2007.
In 2008, the country exported nearly 4.5 million tonnes
of rice, meeting the target for the year of 4 to 4.5 million
tonnes. Rice exports brought in revenue of $2.576 billion to
the country.

VFA noted that Vietnam's agriculture, industry and trade
ministries forecast that rice will continue to be scarce on the
world market next year. Ministries attribute the scarcity of
rice to the global economic crisis and limited investment
in agriculture. In addition, major rice exporters like Thailand and India have increased rice reserves to ensure food
security.
According to the ministries, the world's rice consumption
in 2009 is expected to be 426 million tonnes, only 1% higher
than this year.

Japan tainted rice dealer to face charges
TOKYO, JAPAN - A Japanese food company president will
face criminal charges for selling tainted rice unfit for human
consumption to other food makers. Mikasa Foods President
Mitsuo Fuyuki admitted in September to instructing his employees to perpetrate the reselling of rice tainted with pesticides in deals intended to make profits. Now police will file
charges against Fuyuki, 73, and possibly others involved in
the scandal.

Charges against the Osaka food wholesaler will be pressed
by a joint law enforcement team of investigators from the prefectural police headquarters from Osaka, Fukuoka and Kumamoto, Japanese news agencies reported.
Officials say the firm is suspected of selling 110 tonnes
of the Chinese-produced rice tainted with the pesticide
methamidophos last year to a rice wholesaler in Fukuoka
Prefecture.

Basmati export duty abolished; imported cooking oils to be cheaper
NEW DELHI, INDIA - In view of stiff competition in the
overseas market, India announced on Jan. 20 that it was abolishing the export duty on Basmati rice to retain its market
share abroad and hiked subsidies on imported edible oils sold
through ration shops to make it cheaper for retail consumers.
The Empowered Group of Ministers, headed by External
Affairs Minister Pranab Mukherjee, decided to reduce the
"minimum export price" of Basmati rice to also enable Indian
exporters to compete with their Pakistani rivals.
"The export duty of 8,000 rupees a tonne has been abolished, and the minimum export price of Basmati has been reduced from 1,200 dollars a tonne to 1,100. The decision would
come into effect immediately," Commerce and Industry Minister Kamal Nath said after the meeting.
Nath said the ministers also decided to continue with the
zero duty on imports of crude palm oil and a ban on exports of
non-Basmati rice and wheat.
The decisions to remove the export duty would help the
country overcome its price disadvantage against Pakistan, exporters said.
"Loss of industry will be covered. India will be able to regain the market in Saudi Arabia," All India Rice Exporters
Association President Vijay Setia said.
However, he expressed doubts whether the country will be
able to increase exports to the European Union as contracts
have already been signed with Pakistani exporters. "Contracts
are normally signed by December-end," he added.
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Setia said no decision had been made on allowing a few varieties of non-Basmati rice. "As the complete production data
of rice has not yet been received, no decision was taken on
non-Basmati rice," he said.
The Commerce Ministry had proposed to allow export of
a few varieties of premium non-Basmati rice like Ponni and
Sarbati to help southern states where the crops are predominantly grown.
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