World Grain - November 2013 - 100

RICE QUARTERLY

Rice

News Roundup
Global rice prices decline
on excess supply

DHAKA, BANGLADESH - Global rice prices continue their
downward spiral in the face of excess supply from the major exporting countries, according to a recent report from the International Rice
Research Institute (IRRI).
The report said rice prices on the global market declined by 5%
in September and October thanks to the good harvest in major rice
producing countries including Bangladesh.
The IRRI report indicates a further fall in the rice price as the crops
in the ﬁelds of most rice growing countries are "looking good."
The report also notes that rice is not the only crop in a bearish
mood. Others such as wheat, corn, and soybeans have also witnessed
a weakening of prices in the past few months with the prospect of
good harvests in North America.
As usual, Asian rice prices in the coming months will be inﬂuenced
by weather and politics. The main rice crop in most of Asia is progressing well, with isolated instances of ﬂood/drought in a few locations, such

as ﬂood in Pakistan and drought in parts of India (Bihar and Jharkhand).
Despite drought in these two states, India is expected to harvest
another bumper crop on the back of a normal monsoon in other ricegrowing states.
Imports are relatively quiet, with buyers anticipating lower prices
after the harvest. Chinese purchases of rice primarily from Vietnam,
Pakistan, and Myanmar have supported the market in the past few
months. China is well on its way to claiming the top spot in 2013 with
3 million tonnes of imports, with nearly half already imported in the
ﬁrst half of the year. Chinese imports may go even higher if global rice
prices continue their downward spiral for the remainder of the year.
Despite China's imports, the rice market will be under pressure in
the coming months with the arrival of the new crop. Weak currency
and a good monsoon harvest will keep India in the hunt for the top
exporter spot in 2013. The reluctance of Thailand to subsidize exports will keep it out of the white broken rice market.

FAO asked to help Africa's rice sector
ROME, ITALY - Africa's largest gathering of rice industry experts,
policy makers and farmers representatives has asked the United Nation's Food and Agriculture Organization (FAO) to "stimulate national, regional and global partnerships to (help) develop Africa's
rice sector."
The call came at the end of the 3rd Africa Rice Congress in the
Cameroonian capital of Yaoundé. Attended by more than 650 delegates from 60 countries, including 35 African nations, the event was
co-organized by the Africa Rice Center and FAO.
Africa is expected to produce 27.2 million tonnes of rice this
year, up by 2% over last year, while reducing its dependence on
imported rice.
In its ﬁnal declaration, the congress also called for increased investment in the modernization and mechanization of Africa's farming and in aggregation of farm output, while safeguarding land rights
of smallholders and improving livelihoods. It also urged the strengthening of farmer organizations to ensure that farmers capture a fair
share of value added in the value chain and more encouragement for
the development of public-private partnerships.
In support of promising productivity growth in the African rice
100

sector - especially in the Sub-Saharan region - FAO is looking
to strengthen its commitment to rice production in the region with a
particularly strong focus on sustainability.
Speaking at the congress, FAO Assistant Director-General, Agriculture and Consumer Protection Department Ren Wang said the
organization was in a strong position to help accelerate the already
good growth in rice productivity in Africa.
Wang said FAO is working on a new initiative that would help realize the full potential, productivity and production of Africa's major
rice ecosystems. It will also promote the use of quality seed as well as
secure the production of certiﬁed rice seeds for efﬁcient and sustainable rice production.
"We have an established and successful strategy in FAO's Save
and Grow campaign. We want to apply these sustainability principles
to rice in Africa," he added.
FAO's Rice Market Monitor predicts the 2013 rice harvest in Africa will yield 27.2 million tonnes (or 17.8 million tones on a milled
basis), 2% above 2012's output. It says West African countries and
Egypt will drive much of this growth, but a strong recovery in production is also expected in East Africa.
November 2013 / World Grain / www.World-Grain.com

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World Grain - November 2013

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