17th february,2014 daily global rice e newsletter by riceplus magazine

17th February, 2014

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TOP Contents - Tailored for YOU
Latest News Headlines…
Thai government to end rice subsidy
Thai government admits lack of power to renew troubled rice subsidy
Thai government bank loan not enough to pay off rice program debt
Paddy rice prices climb on exports
Ang Thong farmers delighted after receiving rice pledging payments.
Slack buying pounds rice
Nagpur Foodgrain Prices Open- Feb 17
Commerce Ministry: Proceeds of rice sales will reach THB 12 billion in Feb
Govt to start paying farmers for rice scheme on Monday
Thailand to end rice subsidy scheme
Thai PM under siege, lengthy protests take toll on economy
Farmers association urges investigation into rising rice prices
NFA monopoly threatens rice industry
Record Harvest of Cambodia 2013/14 Main Season Paddy Crop Anticipated
Exporters of rice now subject to origin test
Rice farmers besiege Thai PM's office as protesters surround government HQ
GSB in south packed with nervous customers over rice-pledging scheme
Run on Thai Bank Linked to Rice Subsidy Points to Strain on Economy
Myanmar rice trade faces growing pains
Thailand reaping what it sowed
Oryza Shares Press Release - Cambodia Annouces New Code of Conduct to Address EU Concerns
Happy President's Day from Oryza!
Stakeholders Urge FG to Implement Agreed Duty on Rice
Multilayered control fails to prevent misuse of rice imports

Cell # 92 321 369 2874

Rice import restrictions a 'hanging issue,' says De Lima
Seeds of change
Unisame lauds Sindh for setting up agri business fund

Thai government to end rice subsidy
By Tom Peters
15 February 2014
Thailand‘s Commerce Ministry announced on Wednesday that a rice subsidy scheme for farmers would expire
at the end of February. The government of Prime Minister Yingluck Shinawatra, which is in caretaker mode,
has no power to continue to fund its ―flagship‖ policy, which has bought rice from farmers for up to 50 percent
above market rates since 2011. Almost four million families reportedly depend on the scheme—a crucial social
base for Yingluck‘s Puea Thai Party.The announcement comes amid ongoing anti-government protests led by
the so-called People‘s Democratic Reform Committee (PDRC), which disrupted the February 2 election,
preventing some six million people from voting. Hundreds of rice farmers have also protested in Bangkok in
recent weeks over the government‘s failure to pay $3.7 billion owed for their recent harvest.On Friday, police
dismantled two protest rally sites outside Government House, which have been occupied since November by
groups allied to the PDRC. Police previously refused to intervene to stop protesters disrupting the election.
Despite 130,000 officers being deployed on February 2, polling booths were shut down by protesters in 11
percent of the country.Make-up rounds of voting will not be organised by the Electoral Commission until late
April, and it is likely to be months before results are finalised and a new government can take office.
Meanwhile, the caretaker Puea Thai Party government‘s hold on power remains tenuous.Yingluck dissolved
parliament in December and called an early election in an attempt to shore up her rule, after the opposition
Democrat Party resigned en masse from parliament to join the PDRC‘s campaign.The three-month long protests
reflect deep divisions within the Thai ruling elite. The PDRC and Democrats draw their support mainly from
Bangkok‘s middle class, as well as southern Democrat strongholds.
They represent the interests of the traditional elite, including monarchists, military commanders and sections of
the state bureaucracy, who are deeply hostile to Yingluck and her brother, former Prime Minister Thaksin
Shinawatra, who was ousted in a military coup in 2006.The PDRC has called for the government to be replaced
by an unelected ―people‘s council‖—essentially a front for a military junta—which would scrap the Yingluck
government‘s ―populist‖ policies, including the rice subsidy and cheap healthcare. Commerce Minister
Niwatthamrong reportedly told farmers‘ groups last week that the government had tried to borrow money to pay
them but had been refused by several commercial banks.The rice scheme, which has accumulated losses of
about $2 billion per year, has been heavily criticised in business circles, including by the International Monetary

Cell # 92 321 369 2874

Fund. Last June, Yingluck‘s cabinet tried to appease business by cutting the subsidy by 20 percent, but backed
down after a backlash from farmers.
Powerful sections of big business are aiding this anti-democratic campaign. The media this week published a
list of alleged funders of the PDRC—apparently leaked by the government. These include several hotels;
Pramon Suteewong, president of Toyota in Thailand; and the Saha Group, the country‘s largest consumer
products conglomerate. Pramon and a spokesman for Saha denied any involvement.While attendance at the
PDRC‘s protests is reportedly dwindling, the government faces threats to its rule on several legal fronts. The
Democrats boycotted the election and have appealed to the Constitution Court to nullify it.
On Wednesday the court rejected the Democrats‘ petition but party leader Abhisit Vejjajiva said their legal
action would continue.Democrat lawyer Wiratana Kalayasiri told the Nation that the ballot could still be
challenged on the grounds that millions of people could not vote and candidate registration was disrupted—as a
result of the PDRC‘s protests, which the Democrats supported. An election in 2006 was nullified for similar
reasons, paving the way for the army to overthrow Thaksin‘s government.According to a poll published
yesterday in the Bangkok Post, 49 percent of state officials support the PDRC‘s protests and 57 percent want
Yingluck to step down in favour of a ―neutral‖ administration. The opposition‘s backers include sections of the
judiciary.
The National Anti-Corruption Commission (NACC) announced on Tuesday that it expected to lay charges
against Yingluck later this month for ―dereliction of duty‖ over the failure to prevent losses linked to the rice
subsidy scheme. If the NACC decides to indict Yingluck and take the case to court she would be required to
stand down from politics.The NACC has also accused hundreds of Puea Thai Party lawmakers of breaking the
law by attempting to change the constitution to make the Senate a fully elected body.While the government‘s
Centre for Maintaining Peace and Order has issued arrest warrants for 19 PDRC leaders, so far only one has
been arrested: Sonthiyarn Chuenruethai-naitham, owner and director of T-news agency. TheNew York
Times reported that Sonthiyarn ―has been described by the Thai media as an adviser to the Crown Property
Bureau, the agency that manages the massive royal fortune.‖Sonthiyarn was held for only three days before a
court ordered his release on Thursday.
On the same day, the Criminal Court refused to issue arrest warrants for three gunmen who police allegedly
fired on pro-government Red Shirt protesters in Lak Si the day before the election. Police had reportedly
supplied photos which identified the suspects, including two security guards working for the PDRC.Army Chief
General Prayuth Chan-ocha stated on Thursday that the army would remain ―neutral‖ but he again told
reporters: ―If any side uses weapons and the other side reacts, violence will increase and security forces will
have to intervene.‖ Prayuth refused to publicly support the election, and the military high command clearly
sympathises with the PDRC.Underlying the political deadlock is a rapidly deteriorating economy. On Monday,
the Nation reported that several banks and financial agencies have predicted the country‘s growth for 2014

Cell # 92 321 369 2874

could drop below 3 percent—compared to 6.5 percent in 2012—if the impasse is not resolved. The Yingluck
government and opposition, notwithstanding their mutual hostility, are united in their desire to impose the
economic crisis on the working class and rural poor through austerity measures.

Thai government admits lack of power to renew troubled rice subsidy
Prime Minister Yingluck Shinawatra faces new protests from unpaid farmers over controversial rice buy-up scheme

PUBLISHED : Tuesday, 11 February, 2014, 4:52pm
Thailand‘s caretaker government said on Tuesday it did not have the
power to renew a rice subsidy scheme when it expires at the end of the
month, risking further alienating farmers angry over late payments for
their current crop.Prime Minister Yingluck Shinawatra, assailed since
November by a largely urban, middle-class protest movement bent on
driving her from office, is now facing unrest among her Puea Thai
Party‘s natural supporters in the countryside, where many farmers have
gone unpaid for their rice for months.Yingluck has led a caretaker
administration since December, when she dissolved parliament and
called a snap election in an attempt to end the anti-government street protests. As a result, the government‘s
spending and borrowing powers are heavily curtailed.―We are just a caretaker government, which has no power
to extend any policy. The rice-buying scheme will end automatically on February 28,‖ Varathep Rattanakorn, a
minister in the prime minister‘s office, told reporters.The rice programme was one of the populist policies
associated with Yingluck‘s brother, Thaksin Shinawatra, a former prime minister central to a stubborn conflict
that has divided Thais since he was toppled by the military in 2006.The pledge to pay farmers a price way
above world rice benchmarks helped sweep Yingluck to power in 2011, but the scheme has become mired in
allegations of corruption and growing losses that are making it increasingly hard to fund.Thai caretaker Prime
Minister Yingluck Shinawatra. Photo: EPA
In recent weeks, big banks have refused to extend
bridging loans to help fund the programme,
unconvinced the government has the authority to
seek them, while China has cancelled a
government-to-government rice deal due to a
corruption probe.More than 1,000 farmers
protested outside the government‘s temporary
base in northern Bangkok on Monday and said
they would continue their campaign after a
meeting between their representatives and
ministers broke up without agreement.Finance
Minister Kittirat Na Ranong said on Tuesday the

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farmers would ultimately get paid and appealed for more time to arrange bank financing.―The government
believes it could complete the rice loan in a few days‘ time,‖ he told reporters ahead of a cabinet meeting. ―We
need to reassure financial institutions that the rice loan will not breach the law.After the meeting, Commerce
Minister Niwatthamrong Bunsongphaisan said the cabinet had approved taking 712 million baht (HK$168
million) from the state budget to pay some farmers but that it needed Election Commission approval first.―We
expect the Election Commission will approve it very soon because it‘s a problem for farmers,‖ he told
reporters.The farmers have kept their protests separate from the anti-government demonstrations that have been
blocking parts of Bangkok for the past three months.Those protesters, mainly drawn from Bangkok and the
south, say former telecoms tycoon Thaksin has subverted a fragile democracy with populist policies such as
subsidies, cheap loans and healthcare to woo poorer voters in the rural but populous north and northeast and
guarantee victory for his parties in every election since 2001.A February 2 election that the government hoped
would end the crisis was disrupted in several parts of the country, and a new administration cannot be installed
until voting is completed.

BY PANARAT THEPGUMPANAT AND APORNRATH PHOONPHONGPHIPHAT
BANGKOK Sun Feb 16, 2014 6:25am EST

Workers at the Udon Permsin rice mill pile up sacks full of rice to for storage in the northeast province of Udon Thani, Thailand January 21, 2014.
CREDIT: REUTERS/NIR ELIAS

(Reuters) - A loan given to the government bank operating a
controversial and expensive rice program could temporarily ease
pressure on Thailand's prime minister, but it is a fraction of the sum
needed to settle a 130 billion baht ($3.99 billion) debt owed to up to
a million farmers.Thailand's Government Savings Bank said on
Sunday it loaned 5 billion baht ($153.42 million) to the Bank for
Agriculture and Agricultural Cooperatives (BAAC), but stopped
short of confirming whether the money would even be used to pay
farmers for rice bought under the scheme.The program was operated
through the state-owned BAAC and paid farmers well above the market rate for their rice, making it uncompetitive
on world markets.As a result, the government has struggled to sell enough rice to fund the scheme, prompting
thousands of farmers, many of whom have been waiting for their money for months, to take to the streets in protest.
Thailand's anti-graft body said it may also file corruption charges related to the program.

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"The Government Savings Bank has lent 5 billion baht to the BAAC, but we have no idea what the BAAC will use
the money for. This is a normal interbank loan," Worawit Chailimpamontri, president of the Government Savings
Bank, told reporters, adding that the loan might raise concerns among the bank's clients if used to fund the struggling
program.Thai government officials and representatives from the BAAC were not available to comment.Hundreds of
farmers continued to rally at the commerce ministry in Bangkok on Sunday. The unrest has added to increasing
pressure on Prime Minister Yingluck Shinawatra who has been facing off against a Bangkok-based protest
movement seeking to drive her from office for more than three months.In a further blow to the scheme and her
party's stability, Thailand's anti-corruption agency is investigating the money-guzzling subsidy program.
Thailand's National Anti-Corruption Commission (NACC) said last week it expects to file formal charges later this
month against Yingluck for her role in the rice scheme while an NACC panel has already brought formal corruption
charges against 15 people involved in government-to-government rice deals.Those allegations prompted China to
cancel a deal to buy 1.2 million tons of Thai rice.The rice program was a signature policy of Yingluck, who swept to
power in 2011 with the help of millions of rural votes, but it could prove to be her government's undoing.The
government opened a tender to sell 400,000 tons of rice from state warehouses last week in an attempt to pay
farmers. Eighteen exporters submitted bids to buy up to 460,000 tons, prompting the government to announce it
would sell a further 500,000 tons from state warehouses next week due to over subscription.In sign of the enormity
of the rice problem, traders told Reuters the two sales combined are unlikely to raise around 20 billion baht, a
fraction of the 130 billion baht needed to pay farmers.
The rice intervention scheme has helped fuel anti-government protests in Bangkok that began in November. The
protests, which are still blocking parts of the city, have found much of their support from middle-class, urban
taxpayers outraged at what they see as waste and corruption in the rice scheme.The commerce ministry said last
week that it did not have the authority to extend the scheme beyond February as the caretaker government of
Yingluck has been left with limited policy-making powers pending the outcome of a February 2 election.Varathep
Rattanakorn, a minister to the prime minister's office, asked anti-government demonstrators to stop trying to make
common cause with farmers who are protesting in Bangkok, although separately from the political demonstrations,
and allow the government to try to resolve payment issues."We must make a distinction between the pressing needs
of farmers and the National Anti-Corruption Commission investigation into the rice pledging scheme," said
Varathep.
($1 = 32.59 Thai baht)
(Writing by Amy Sawitta Lefevre; Editing by Matt Driskill)

Cell # 92 321 369 2874

The Myanmar Times

Summary A increasing demand for rice from abroad has led the price of paddy rice in Myanmar to grow 25.84

percent over the past year as recently acquired duty-free access in other countries is expected to drive exports further
in 2014, experts said. "The current price of paddy is the best since Cyclone Nargis [in 2008]. We will be able to pay
the debts that built up in previous years," he said, adding that the land used to cultivate rice could grow as much as
20pc for the coming summer crop.
Get Veooz 360 for Paddy Rice, Percent

Ang Thong farmers delighted after receiving rice pledging
payments
Date : 17

2557

BANGKOK, 17 February 2014 (NNT) — Ang Thong farmers are delighted to finally be receiving the rice
payments from the Bank for Agriculture and Agricultural Cooperatives (BAAC). Ang Thong BAAC Head, Mr.
Amnuay Rakchat revealed that the Ang Thong BAAC has received a total of 2 million baht from the
government to be distributed as payments under the rice pledging scheme. The sum is broken down into
800,000 baht for farmers in Muang district, another 800,000 baht for Chaiyo district, and 400,000 baht for Pa
Mok District. The BAAC of Ang Thong today started giving out the rice pledging payments to 8 farmers worth
approximately 52,000 baht. Mr. Amnuay went on to say that the BAAC will continue to pay the rice pledging
payments to farmers once the government transfers the necessary capital to the bank — adding that payments
can be immediately made as the required documents by the farmers have been readily prepared.

Slack buying pounds rice
OUR CORRESPONDENT
KARNAL, FEBRUARY 17:

The rice market may rule around current levels
without much alteration this week, said market
sources. Lack of buying interest pulled
aromatic and non-basmati rice down by ₹50
300 a quintal on Monday.Absence of bulk
buying pulled rice prices down, said Amit
Chandna, proprietor of Hanuman Rice Trading
Company. Despite a fall, rice prices are still
ruling on the higher side, he said. However, a

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few experts see this fall as a temporary phase and expect that market may recover in coming weeks.In the
physical market, Pusa-1121 (steam) dropped by ₹200 to ₹9,00050, while Pusa-1121 (sela) quoted at ₹7,900
8,000, down ₹150. Pure Basmati (Raw) dropped by ₹300 to ₹12,200. Du
plicate basmati (steam) sold at
₹7,000 a quintal, down ₹50 .
Pusa-1121 (second wand) was at ₹7,100, Tibar at ₹6,150 while Dubar at ₹5,000.
In the non-basmati section, Sharbati (Steam) sold at ₹5,000, while Sharbati (Sela) eased by ₹200 to ₹4,600.
Permal (raw) sold at ₹2,320 and Permal (sela) at ₹2,340. Prices of PR (Sela) and PR-11 (Steam) varieties went down by
-11
₹200 each, PR (sela) sold at ₹2,700 while PR (Raw) at ₹2,600, respectively.
-11
-11
PR14 (steam) sold at ₹2,950, ₹300 down.
Paddy Arrivals
About 4,000 bags of Pusa-1121 arrived and went for ₹4,250 a quintal.
(This article was published on February 17, 2014)

Keywords: Rice market, much alteration, buying interest, aromatic rice, non-basmati rice

Nagpur Foodgrain Prices Open- Feb 17
Mon Feb 17, 2014 3:26pm IST
Nagpur, Feb 17 (Reuters) - Gram and tuar prices in Nagpur Agriculture Produce and Marketing
Committee (APMC) showed weak tendency on poor buying support from local millers amid poor quality
arrival. Downward trend in gram on NCDEX and weak condition in Madhya Pradesh gram prices also affected
sentiment, according to sources.
*
*
*
*
FOODGRAINS & PULSES
GRAM
* Gram varieties moved down in open market in absence of buyers amid increased supply
from producing regions.
TUAR
* Tuar varieties recovered in open market on renewed demand from local traders amid
weak supply from millers. Reports about weak overseas arrival also pushed up prices.
* Masoor varieties reported higher in open market on increased demand from local
traders amid thin arrival from producing regions.

Cell # 92 321 369 2874

* In Akola, Tuar - 3,900-4,000, Tuar dal - 6,000-6,200, Udid at 6,000-6,300,
Udid Mogar (clean) - 7,000-6,200, Moong - 8,000-8,200, Moong Mogar
(clean) 9,400-9,600, Gram - 2,600-2,700, Gram Super best bold - 3,500-3,700
for 100 kg.
* Wheat, rice and other commodities remained steady in open market
in thin trading activity, according to sources.
Nagpur foodgrains APMC auction/open-market prices in rupees for 100 kg
FOODGRAINS
Available prices Previous close
Gram Auction
2,700-2,850
2,760-2,920
Gram Pink Auction
n.a.
2,100-2,600
Tuar Auction
3,900-4,050
4,000-4,100
Moong Auction
n.a.
6,100-6,300
Udid Auction
n.a.
4,300-4,500
Masoor Auction
n.a.
2,600-2,800
Gram Super Best Bold
3,800-4,000
3,800-4,200
Gram Super Best
n.a.
Gram Medium Best
3,400-3,600
3,600-3,750
Gram Dal Medium
n.a.
n.a.
Gram Mill Quality
3,200-3,300
3,200-3,400
Desi gram Raw
2,900-2,950
2,950-3,050
Gram Filter new
3,200-3,500
3,300-3,600
Gram Kabuli
7,900-10,300
7,900-10,300
Gram Pink
7,700-8,100
7,700-8,100
Tuar Fataka Best
6,400-6,600
6,300-6,500
Tuar Fataka Medium
6,100-6,200
6,000-6,200
Tuar Dal Best Phod
6,000-6,150
5,800-6,000
Tuar Dal Medium phod
5,500-5,700
5,400-5,700
Tuar Gavarani
4,250-4,300
4,100-4,200
Tuar Karnataka
4,400-4,500
4,300-4,400
Tuar Black
7,100-7,300
7,000-7,200
Masoor dal best
5,400-5,500
5,300-5,400
Masoor dal medium
5,100-5,300
5,000-5,200
Masoor
n.a.
n.a.
Moong Mogar bold
8,700-9,950
8,700-9,950
Moong Mogar Medium best
8,800-9,200
8,800-9,200
Moong dal super best
8,500-8,800
8,500-8,800
Moong dal Chilka
7,900-8,200
7,900-8,200
Moong Mill quality
n.a.
n.a.

Cell # 92 321 369 2874

Moong Chamki best
8,000-8,500
8,000-8,500
Udid Mogar Super best (100 INR/KG) 7,200-7,600
7,200-7,600
Udid Mogar Medium (100 INR/KG) 5,800-6,600
5,800-6,600
Udid Dal Black (100 INR/KG)
4,700-5,000
4,700-5,000
Batri dal (100 INR/KG)
4,000-5,000
4,000-5,000
Lakhodi dal (100 INR/kg)
3,000-3,100
3,000-3,100
Watana Dal (100 INR/KG)
3,100-3,200
3,100-3,200
Watana White (100 INR/KG)
3,200-3,300
3,100-3,200
Watana Green Best (100 INR/KG) 4,200-4,500
4,200-4,500
Wheat 308 (100 INR/KG)
1,700-1,800
1,700-1,800
Wheat Mill quality(100 INR/KG) 1,825-1,875
1,825-1,875
Wheat Filter (100 INR/KG)
1,650-1,850
1,650-1,850
Wheat Lokwan best (100 INR/KG) 2,400-2,500
2,400-2,500
Wheat Lokwan medium (100 INR/KG) 2,000-2,200
2,050-2,200
Lokwan Hath Binar (100 INR/KG) n.a.
n.a.
MP Sharbati Best (100 INR/KG) 3,000-3,600
3,000-3,600
MP Sharbati Medium (100 INR/KG) 2,400-2,900
2,400-2,900
Wheat 147 (100 INR/KG)
1,600-1,700
1,600-1,700
Wheat Best (100 INR/KG)
1,700-1,750
1,700-1,750
Rice BPT new(100 INR/KG)
2,800-3,200
2,800-3,200
Rice Parmal (100 INR/KG)
1,700-1,850
1,700-1,850
Rice Swarna old (100 INR/KG)
2,500-2,750
2,500-2,750
Rice Swarna new (100 INR/KG)
2,300-2,400
2,300-2,400
Rice HMT new (100 INR/KG)
3,700-4,200
3,700-4,200
Rice HMT Shriram (100 INR/KG) 4,700-4,900
4,700-4,900
Rice Basmati best (100 INR/KG) 11,000-13,500
11,000-13,500
Rice Basmati Medium (100 INR/KG) 6,300-7,600
6,300-7,600
Rice Chinnor (100 INR/KG)
5,500-5,800
5,500-5,800
Rice Chinnor new (100 INR/KG) 5,100-5,500
5,100-5,500
Jowar Gavarani (100 INR/KG)
1,400-1,600
1,400-1,600
Jowar CH-5 (100 INR/KG)
1,700-1,800
1,700-1,800
WEATHER (NAGPUR)
Maximum temp. 27.2 degree Celsius (81.0 degree Fahrenheit), minimum temp.
13.0 degree Celsius (55.4 degree Fahrenheit)
Humidity: Highest - n.a., lowest - n.a.
Rainfall : nil
FORECAST: Partly cloudy sky. Maximum and Minimum temperature likely to be around 28 and 12 degree
Celsius respectively.
Note: n.a.--not available
(For oils, transport costs are excluded from plant delivery prices, but included in market prices.)

Cell # 92 321 369 2874

By Zaw Htike | Monday, 17 February 2014

A increasing demand for rice from abroad has led the price of paddy rice in Myanmar to grow 25.84 percent
over the past year as recently acquired duty-free access in other countries is expected to drive exports further
in 2014, experts said.

The price of emahta white rice, which makes up better than 90 pc of the country‘s rice production, is currently
selling for US$488 per 100 baskets (or 2.05 tonnes) on the markets, up from $356 per 100 baskets sold one year
ago, farmers said.―The high price is the result of demand for rice from China and this year the EU‘s demand for
rice from Myanmar is going up because the country entered the generalised system of preferences agreement, so
the price is not likely to go down in the short term,‖ said U Lu Maw Myint Maung, joint general secretary of the
Myanmar Rice Federation.Paddy rice prices usually fall early in the season and bounce back mid-season after
most of the harvest has been sold, sapping farmers‘ profits. But last November-December, prices reached an
early-season record of $377 per 100 baskets and continued increasing to its current price levels.U Kyi Aye,
chair of the Myanmar Farmers‘ Association (MFA) of Dedaye township, Ayeyarwaddy Region, said that high
prices are driving farmers to switch out other crops in favour of rice as profits are allowing others to pay off
debts accrued from years of low prices and heavy flooding.―The current price of paddy is the best since Cyclone
Nargis [in 2008]. We will be able to pay the debts that built up in previous years,‖ he said, adding that the land
used to cultivate rice could grow as much as 20pc for the coming summer crop.
MFA chair U Soe Tun said that even though the land available for summer crop was less than a quarter of the
land available for rainy-season crop, it represents one-third of Myanmar‘s estimated annual rice production of
14 million tonnes.―The current record prices are likely to stay high because of Chinese demand. I think farmers
will profit, though many still worry about falling prices and bad weather,‖ he said.In addition, some experts are
worried that the market is unsustainable as prices are mainly being driven by illicit trading on the Chinese side
of the border. Rice producers are currently withholding stock from traditional trading partners in an attempt to
secure more favourable prices from China, where traders are able to offer a higher price from dodging local
taxes.While such illicit traders are able to offer a better premium on imports than those who use the legal
channels, they tend to not honour contacts and pay significantly less than promised, offsetting market gains
while creating an unhealthy bottleneck for exports.
As a result of the bottleneck, government officials have said that total exports for processed rice will likely fall
to less than half of the government target of 3 million tonnes in the 2013-14 fiscal year.―We know that the
government is trying to deal with the Chinese regional government to make this market legal, though there has
not been seen any tangible result from it yet, so this is something we need to worry about,‖ said U Soe Tun,
adding that a shift in Myanmar‘s trade policy with China could upset the entire market.According to data from
the Ministry of Agriculture, 1.6 million hectares (4 million acres) of land are currently available for the summer
crop, though indebted farmers have been unable to harvest some of it.

Cell # 92 321 369 2874

Commerce Ministry: Proceeds of rice sales will reach THB 12 billion in Feb
Sunday, 16 February 2014By NNT

BANGKOK, 14 February 2014 Another
huge stock of rice from the government‘s
rice subsidy scheme will be distributed this
month, with more to be put up for sale in the
Agricultural Futures Exchange of Thailand
(AFET).Commerce Minister Niwatthamrong
Boonsongpaisarn said the government had
received orders for more than 600,000 tons
of rice from foreign countries and 400,000
tons more would be sold after the ministry
held an auction for the scheme‘s rice
inventory. The rice was from the 2011/2012
and 2012/2013 crop years, he said.More
200,000 tons were expected to be sold in the
AFET to rice traders, said the minister. He
added that the government would be able to sell around one million tons of rice worth 12 billion baht in February alone which
was equal to the amount of rice sold last month.

Govt to start paying farmers for rice scheme on Monday
Monday, 17 February 2014By MCOT

BANGKOK, Feb 16 - Caretaker Deputy
Prime
Minister
Niwatthamrong
Boonsongpaisarn today reaffirmed that the
government tomorrow will begin distributing
Bt4 billion per day to farmers for the overdue
payment on the rice pledging scheme.Mr
Niwatthamrong, also commerce minister,
said that the Bank of Agriculture and
Agricultural Cooperatives (BAAC) will start
paying the overdue rice payments to farmers
who participated in the first round of the rice
pledging scheme for 2013-2014.He said the
government has collected more than ten
billion baht from several financial sources
including loans and rice sales themselves.He
said every BAAC branch will make
payments through the farmers' bank
accounts, adding that those who joined the rice pledging scheme first will receive payment first.The minister said the BAAC
will be able to distribute the overdue payment at about Bt4 billion per day, and urged farmers not to come to demonstrate in
Bangkok.Mr Niwatthamrong added that the ministry expects to sell all 460,000 tonnes of rice from the subsidy scheme after it

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opened the auction last week.He said almost 200,000 tonnes of rice will be additionally sold to foreign buyers who have made
direct purchase orders with the ministry.Overall, the ministry will make about Bt7 billion of income, plus another 220,000
tonnes sold in the Agricultural Futures Exchange of Thailand last Thursday.He said the announcement of all rice purchases is
expected to be revealed on Monday.

Thailand to end rice subsidy scheme
By Michael Peel in Bangkok

Thailand is to scrap a contentious rice subsidy scheme that has cost billions of dollars
and stoked the country‘s deepening political crisis, the government said on Tuesday.The
crisis-hit programme, which hassparked protests from unpaid farmers, will end this
month because the nation‘s caretaker administration has no authority to extend it,
ministers said. The sudden announcement raises the stakes in the battle for political
control of Thailand, although the government refused to rule out reviving an ailing scheme that is central to its
appeal to its rural electoral heartland.The rice programme officially eats up at least $4bn a year but is gripped by
a funding crisis, with the administration of Yingluck Shinawatra, prime minister, unable to raise money from
banks or bonds to settle debts with farmers dating as far back as September.
Prof Kevin Hewison, director of the Asia Research
Centre at Australia's Murdoch University, said the
subsidy‘s scrapping was probably required by law but
was
also
―convenient‖
for
embattled
ministers.―Yingluck‘s government will no doubt be able
to breathe a bit easier if the scheme can be let go or
significantly revamped for next year,‖ he said. ―The
political cost of the scheme may have turned from
positive to negative for them, if the problem of unpaid
farmers
extends.‖Niwatthamrong
Boonsongpaisan,
deputy prime minister, said the rice scheme would finish
until further notice at the end of the rice season on
February 28, as the caretaker government‘s limited
powers to raise and spend money meant it could not
prolong the subsidy.Anti-government protesters‘
sabotage of February 2 elections has made it impossible to declare a result and has left the Yingluck
administration limping along with limited powers to raise and spend money.
Mr Niwatthamrong said any fresh rice subsidy programme would have to be ―considered carefully‖ and might
need to be sanctioned by the national election commission, which many government supporters see as proopposition.Unpaid farmers who once benefited from the Yingluck administration's largesse have mounted
roadblocks and protests inside and outside Bangkok since the start of February, spurring opposition protest
leaders to try to woo them. Demonstrators have collected money for farmers and given them a platform on rally

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stages to speak about their problems.But the farmer protester numbers are still relatively small and some of
those demonstrating are historically not supporters of Ms Yingluck.
While rice-growers loyal to the government have been getting angrier about the payment delays, some also
blame the opposition‘s blockade of ministries and disruption of the elections.Farmers attracted by a rice subsidy
that paid well above world market rates formed a crucial plank of Ms Yingluck‘s 2011 landslide election
victory, along with other popular policies such as $1-a-time medical treatment.But the government‘s plan to buy
rice and sell it on a rising world market has backfired, with international prices falling and Thailand losing its
crown as the world‘s top rice exporter amid sharp criticism from the International Monetary Fund and
others.The government has for months been trying to secure bridging funding for a scheme costing more than
$7bn a year by some estimates, but bond issues have been patchily supported and banks, which Yingluck
supporters say are part of the traditional elite at the opposition‘s heart, have refused to make loans.

Thai PM under siege, lengthy protests take toll on economy
BY AMY SAWITTA LEFEVRE

(Reuters) - Protesters seeking to oust Prime Minister
Yingluck Shinawatra surrounded Thai government
headquarters on Monday in response to police efforts to clear
them from the streets, as farmers besieged her temporary
office to demand payment for rice.Thailand has been in crisis
since November, when Bangkok's middle class and the
royalist establishment started a protest aimed at eradicating
the influence of Yingluck's brother Thaksin, a populist former
premier ousted by the army in 2006 who is seen as the power
behind her government.Data published on Monday showed
the economy grew just 0.6 percent in the fourth quarter from
the third and, with the country likely to be without a fully functioning government for months, the state
planning board slashed its forecast for 2014.About 10,000 anti-government demonstrators surrounded
Government House in Bangkok, taking back control of a road the police had cleared them from on Friday in the
first real sign of a pushback by the authorities after months of protests.
These protesters view Yingluck as a proxy for Thaksin, who has lived in exile since 2008 rather than face a jail
term for abuse of power handed down in absentia that year."We will use quick-dry cement to close the gates of
Government House so that the cabinet cannot go in to work," said Nittitorn Lamrue of the Network of Students
and People for Thailand's Reform, aligned with the main protest movement.It was a symbolic gesture, Yingluck

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having been forced to work elsewhere since January.The separate protests by rice farmers could turn out to be
more damaging for Yingluck.Rural voters swept her to power in 2011, when her Puea Thai Party pledged to pay
rice farmers way above market prices for their harvest. But the program has run into funding problems and
some farmers have not been paid for months.
"END OF OUR TETHER"
Television showed farmers climbing over barbed wire fences and barriers at a Defense Ministry compound
where Yingluck has set up temporary offices. They pushed back riot police, who retreated from confrontation,
but did not enter the building."The prime minister is well off but we are not. How are we going to feed our
children? I want her to think about us," said one protesting farmer. "Farmers are tough people, they wouldn't
normally speak out but they are at the end of their tether."Farmers' representatives later met ministers, but when
Finance Minister Kittirat Na Ranong came out to speak to the crowd he was pelted with plastic bottles.
The government hopes to sell about 1 million tons of rice through tenders this month to replenish its rice fund
and is also seeking bank loans to help it pay the farmers.The Government Savings Bank said on Sunday it had
lent 5 billion baht ($153 million) to the Bank for Agriculture and Agricultural Cooperatives (BAAC), which
runs the rice scheme.It did not say what the money would be used for, but some depositors, apparently hearing
on social media that it would be used for the rice payments and would therefore help the government, took their
money from the bank on Monday."Today the bank's clients took out around 30 billion baht.
Most clients who withdrew were in Bangkok and the south. Around 10 billion baht was deposited. This doesn't
impact the stability of the bank," Worawit Chalimpamontri, president of the savings bank, told a televised news
conference.He said there would be no more interbank lending to the BAAC because the loan was "misused". He
did not elaborate.The 30 billion baht withdrawn represents about 1.6 percent of total deposits, according to
Reuters calculations.
DISRUPTED ELECTION
Yingluck called a snap election in December and has since led a caretaker administration with only limited
powers.The election took place on February 2 but it was disrupted in parts of Bangkok and the south, the
powerbase of the opposition, and it may be many months before there is a quorum in parliament to elect a new
prime minister.

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The Election Commission has set April 27 as the date to re-run voting that was disrupted but the government
said on Monday it wanted the much earlier date of March 2."According to the law, the House of
Representatives must convene 30 days after a general election," Pongthep Thepkanjana, a deputy prime
minister, said after a meeting between the commission and government.
That date seems improbable, especially as the commission and government can't agree on procedures for fresh
voting and the Constitutional Court may be asked to rule.The anti-government protesters, who are aligned with
the main opposition Democrat Party, want electoral rules changed to limit Thaksin's influence before an election
is held, although their precise demands remain vague.They accuse Thaksin of nepotism and corruption and say
he used taxpayers' money for generous subsidies and easy loans that have bought him the loyalty of millions of
poorer voters in the north and northeast.Consumer confidence sank in January to its lowest level in more than
two years and, with big infrastructure projects on hold because of the political vacuum, the planning agency cut
its forecast for economic growth in 2014 to between 3.0 and 4.0 percent from 4.0-5.0 percent seen in
November."Confidence is low and private sector demand in the domestic economy remains weak given the
political deadlock," said Gundy Cahyadi, an economist with DBS Bank in Singapore.
($1 = 32.5900 baht)
(Additional reporting by Panarat Thepgumpanat, Athit Perawongmetha and Orathai Sriring; Writing by Alan
Raybould; Editing by Alex Richardson and Robert Birsel)
Image: 1 OF 4. Soldiers stands guard at the temporary office of Thai Prime Minister Yingluck Shinawatra during a
protest in Bangkok February 17, 2014.
CREDIT: REUTERS/CHAIWAT SUBPRASOM

Farmers association urges investigation into rising rice prices
2014/02/16 18:19:09

Taipei, Feb.16 (CNA) In the face of rising prices for rice, the Changhua County Farmers' Association urged the
central government Sunday to investigate and prevent high prices from hurting both farmers and consumers.The
prices for indica rice and japonica rice in the central agriculture-based county have surged to record highs of
NT$41.43 (US$1.38) per kilogram and NT$40.62 per kg, respectively, said Liao Chen-hsien, an executive at
the association, citing statistics from the Council of Agriculture.Prices have been driven up by a falling harvest
caused by typhoons and plant diseases last year, said Liao, who has toured the county's major rice production

Cell # 92 321 369 2874

hub of Tianjhong Township to get to the bottom of the issue."Although prices have gone up, farmers are not
making money but rather losing it because the rice output has been too low," he said.While urging authorities in
Taipei to look into whether distributors are hoarding the grain, he also called for a release of rice stocks to
deflate prices.
(By Wu Jhe-hao and Flor Wang)
enditem/WH

NFA monopoly threatens rice industry
By Rey E. Requejo | Feb. 17, 2014 at 12:01am

While the country‘s leaders continue to be obsessed with the
hunt for ―illegal rice importers,‖ two former heads of the
National Food Authority were in agreement that flawed
government policy, not smuggling, poses the biggest threat to
the nation‘s rice industry.Anthony Abad explained that
smuggling was just one of the many symptoms of a flawed
system of rice regulation while Lito Banayo warned that
government‘s continued monopoly of rice importation could
cause NFA‘s debt to balloon to as much as P190 billion.
A total of 404,000 bags of rice from Vietnam imported by National Food Authority are being unloaded in a
private wharf in Davao City in this file photo. Loaded in two vessels, the rice will be stored in NFA Davao City
warehouses of which some of the stocks will be transferred to other provincial offices to ensure that reserves are
within ideal level. RENE B. LUMAWAG ―Rice smuggling occurs because there is an unmet demand of a
hungry population. Smuggling and the illicit importation of rice simply reflect a deficit in supply,‖ said Abad, a
lawyer and international trade expert.At the Senate hearings, so-called ―illegal importations‖ were attributed to
the absence of a definitive policy on the World Trade Organization (WTO)-granted ―special privilege‖ of
quantitative restrictions (QR) on the importation of rice that had expired in June 2012.During the hearings, the
Department of Agriculture maintained that despite its expiration, importation quotas on rice will remain in place
until 2017, even as the Philippines has yet to succeed in negotiating an extension with fellow WTO member
countries.But Abad believes otherwise: ―When you have an agreement that is time-bound, the ―special
treatment clause‖ expires upon the deadline. The Philippines is the only country left that maintains a QR.‖The
DA and attached agency NFA have been criticized by some sectors for supposedly using QR and the issuance
of import permits to maintain a ―monopoly‖ over rice trade.Abad, who was NFA administrator from 2000 to
2002, agreed that the ―outdated QR system and government rice monopoly, only lead to high prices,
inefficiency, corruption, and smuggling.

Cell # 92 321 369 2874

‖In a television interview, Banayo, for his part expressed astonishment at how the agency has come to
monopolize rice trade over the last year.―In the third year of this Aquino administration, 2013, I was surprised
to read in the papers that it was only the NFA doing the importing, without participation from the private
sector,‖ he said in the vernacular.Supposedly, under the 2010 Food Staples Self-sufficiency Program (FSSP),
the country‘s rice self-sufficiency roadmap, importation should primarily be the role of the private sector.―The
private sector should be the one to import. The NFA should, little by little, remove itself from rice importation
and concentrate on local procurement, which we followed for two years,‖ Banayo, who was administrator
during the first two years of the Aquino presidency, described the agency‘s thrust under his watch.Moreover, he
warned that the NFA‘s continued monopoly over rice importation, through government-to-government
transactions, is a virtual ―white elephant,‖ costing the country billions in public funds.

Record Harvest of Cambodia 2013/14 Main Season Paddy Crop Anticipated
17.02.2014

Harvesting of the 2013/14 main wet season paddy crop began in early December and will continue in some
areas up to February.The preliminary official estimates put the 2013 main season paddy crop at a record level of
7.3 million tonnes, up 1.7 per cent on last year‘s bumper output of the same season, reports FAO.The increase is
mainly attributed to an estimated 3.3 per cent expansion in plantings. However, heavy monsoon rains during
September and October 2013 resulted in localised flooding across northern parts of the Mekong River Basin.
According to the Ministry of Agriculture, Forestry and Fisheries (MAFF) the floods are estimated to have
damaged close to 128 000 hectares of paddy crop (or 5 per cent of the total cropped area for the main season),
particularly in Battambang, Banteay Meanchay and Siem Reap, important rice growing provinces.
Planting of the 2013/14 secondary dry season (irrigated) paddy crop is nearing completion. A preliminary
official estimates, as of end-December, indicate that 472 483 have been planted under rice crop, some 4.6 per
cent below the area planted at the same period in 2013.The decrease in planted area is mainly a result of below
average rains in December 2013. Official reports indicate adequate provision of seeds and yield promoting
inputs which are expected to assist crop productivity.The aggregate 2013/14 rice output, including the ongoing
main and secondary seasons, is officially forecast at a record level of 9.3 million tonnes, slightly above last
year‘s bumper level.Harvesting of the 2013 maize crop was completed by October 2013.Latest official
estimates point to a harvest of 911 127 tonnes, some 4 per cent below last year‘s level. The decrease in
production is mainly attributed to a 6 per cent decline in the planted area, as a result of farmers switching to rice
crop. There is a decrease in area planted to maize for the third consecutive year in row.Overall, the cereal output
for 2013 is estimated at 10.3 million tonnes.

Exporters of rice now subject to origin test
Mon, 17 February 2014

Cell # 92 321 369 2874

Daniel de Carteret and Chan Muy Hong

Stringent rules to prove that rice exported from Cambodia is actually from Cambodia will be detailed today,
according to a copy of a joint agreement between the Ministry of Commerce and industry associations.The
Code of Conduct seeks to reassure the European Union that rice is local and not mixed with grain from Vietnam
in an attempt to boost exports. The allegation first emerged in industry publication Oryza about two months
ago.The EU‘s Everything But Arms (EBA) scheme gives developing countries like Cambodia duty-free access
to European markets. Adding rice from any other country to exports would make the product ineligible for the
special treatment.―This COC is to prove that we are clean, honest and we do not cheat in our business,‖ said
Kim Savuth, president of the Federation of Cambodian Rice Exporters, a co-signatory to the Code of
Conduct.Exporters requesting a certificate of origin from the Ministry of Commerce will be required to show
proof through invoices and receipts that the rice is local.An audit committee consisting of both industry and
non-industry representatives is tasked with investigating claims of fraud.Penalties include the permanent
revocation of an exporter‘s certificate of origin, which strips the business of duty-free access to Cambodia‘s
largest market.The Code of Conduct goes into effect a month from today on March 17.
Contact authors: Daniel de Carteret and Chan Muy Hong

Rice farmers besiege Thai PM's office as protesters surround government HQ
BY AMY SAWITTA LEFEVRE

BANGKOK Mon Feb 17, 2014 12:13pm IST
(Reuters) - Hundreds of unpaid Thai rice farmers swarmed around the temporary office of Prime Minister
Yingluck Shinawatra on Monday, threatening to storm the building if the beleaguered premier did not come out
and speak to them.The escalation of the protest by farmers, who have not been paid for crops sold to the
government under a state rice-buying scheme that helped sweep Yingluck's Puea Thai Party to power, came as
thousands of demonstrators seeking to unseat the prime minister surrounded the government's headquarters.Live
television pictures showed farmers climbing over barbed wire fences and barriers at the Defence Ministry
compound in north Bangkok where Yingluck has set up temporary offices. They pushed back a line of riot
police, who retreated from confrontation, but did not enter the building."The prime minister is well-off but we
are not. How are we going to feed our children? I want her to think about us," said one protesting farmer.
"Farmers are tough people, they wouldn't normally speak out but they are at the end of their tether," she
added.The farmers have mostly kept apart from a broader anti-government protest movement, about 10,000 of
whose members surrounded the prime minister's main Government House offices in central Bangkok early on
Monday.Those protesters view Yingluck as a proxy for her elder brother, Thaksin Shinawatra, a self-exiled
former prime minister who clashed with the establishment before he was overthrown by the army in 2006."We
will use quick-dry cement to close the gates of Government House so that the cabinet cannot go in to work,"

Cell # 92 321 369 2874

Nittitorn Lamrue, leader of the Network of Students and People for Thailand's Reform, a group aligned with the
main protest group, told reporters.
The disturbances came as gross domestic product (GDP) data showed growth slowed sharply in the final quarter
of 2013, as the political paralysis caused by months of unrest and a disrupted election began to take its toll on
Southeast Asia's second-largest economy.Protesters moved concrete barriers to block entrances of Government
House and poured cement over the barriers in what they said was a "symbolic gesture" to show the building was
closed. Yingluck has been forced to work from the temporary offices since January.
NOT USING FORCE
"There are enough soldiers and police inside Government House to protect the building and the grounds,"
National Security Council Chief Paradorn Pattanathabutr told Reuters. "The protesters said they will not come
inside so we aren't expecting a confrontation."Bluesky TV, the protest movement's television channel, showed
demonstrators spilling into the grounds of the nearby Ministry of Education. Protest leaders asked officials
working there to leave the ministry, or join their movement.Broadly, the political crisis pits the Bangkok middle
class and royalist establishment against supporters of Yingluck and her billionaire brother Thaksin, who has
lived abroad since 2008 to avoid a jail sentence for a graft conviction he says was political motivated.
Demonstrators accuse Thaksin of nepotism and corruption and say he used taxpayers' money for generous
subsidies and easy loans that have bought him loyalty from millions of working-class voters in the north and
northeast.An election on February 2 failed to heal the deepening crisis. Protesters disrupted polls in a fifth of
constituencies, a result that left parliament without a quorum to approve a new government leaving Thailand in
political limbo under a caretaker administration with limited powers.Hundreds of riot police began an operation
on Friday to reclaim protest sites and reopen roads and state offices, some of which have been blocked for more
than three months.Labour minister Chalerm Yoobamrung, who is in charge of the security operation, said police
would press ahead with a plan to reclaim protest sites near government buildings.The protesters, led by
firebrand former deputy premier Suthep Thaugsuban, have vowed to remain on the streets until they topple
Yingluck's government and usher in political reforms before an election.
Security forces put up little resistance when protesters move to occupy ministries and key intersections over the
past few months.The government, haunted by memories of a bloody 2010 crackdown by a previous
administration that killed dozens of pro-Thaksin "red shirt" activists, has largely tried to avoid
confrontation.Despite that cautious approach, 11 people have been killed and hundreds hurt in sporadic violence

Cell # 92 321 369 2874

between protesters, security forces and government supporters.The protest movement has seen numbers dwindle
but has experienced a second wind by trying to align itself with the protesting rice farmers.The country's anticorruption agency is investigating allegations that Yingluck, who is head of the national rice committee, was
negligent in her role overseeing the programme.(Additional reporting by Panarat Thepgumpanat and Athit
Perawongmetha; Editing by Alex Richardson and Robert Birsel)

GSB in south packed with nervous customers over rice-pledging
scheme
February 17, 2014 3:20 pm

Branches of the Government Saving Bank in two southern provinces were crowded on Monday with people
seeking to verify reports that the bank will lend money to the government to repay rice farmers in debt under
rice-pledging scheme.Some of them were seen withdrawing their savings out of fear their money will be used to
help pay the debts to the farmers.Their officials wore black in protest at the bank's decision to be part of the
government‘s struggling efforts to repay the Bt130 billion its owes to the rice farmers.In Satun, the bank's
administration hung a banner on the front which read, "The bank will not use customers‘ savings to repay the
rice-pledging scheme".
Pun Sripat, 48, said that she monitored news reports about the issue but was not sure if the reports were
accurate. However, she said the report was later confirmed so she, along with relatives and neighbours came to
the bank to withdraw their savings.However, some customers have confidence that the bank will not use their
savings to repay the debts. Some of them were seen depositing money into their accounts.The bank‘s manager
Sompob Panthong meanwhile said the bank has earlier assured customers that the bank would not use their
savings. "The customers understand the situation," he said.The bank‘s Krabi branch saw many customers
withdrew the money from their accounts out of fear that the bank will use their savings to help fund the scheme.
Chatchawan Ritthirueng, 56, said he and his wife believe that the bank would give their savings to help the
government repay the debts. "So we came here to withdraw most of the money from the account and leave just
Bt500.The branch‘s manager Patcharee Narawisut said that many customers today came to withdraw their
savings. "All I can do is to tell them not to be panic. I did not know yet the total amount of money withdrawn. I
already informed the provincial bank‘s administration," she said.The numbers of people withdrawing money
today are relatively higher than before, she said.

Run on Thai Bank Linked to Rice Subsidy Points to Strain on Economy

Cell # 92 321 369 2874

Government Says Protests Will Cause Economy to Slow in Months to Come
By WARANGKANA CHOMCHUEN and NOPPARAT CHAICHALEARMMONGKOL
Updated Feb. 17, 2014 12:03 p.m. ET
BANGKOK—Depositors have withdrawn nearly $1 billion from a bank linked to a foundering rice-subsidy
program, the bank said Monday, in one of
the first signs that Thailand's months-old
political stalemate is starting to affect the
economy.Adding to the pressure on Prime
Minister Yingluck
Shinawatra,
a
government agency Monday forecast
economic growth rates would slow in the
months to come because of the unrest. The
prime minister has faced street protests
since November calling on her to
resign.Woravit Chailimpamontri, chief
executive at Government Savings Bank,
said that depositors withdrew 30 billion
baht, or $930 million, over the past three days after the bank extended a 5 billion-baht loan to a financial
cooperative involved in a state-subsidy program.
The cooperative, which buys rice from farmers at up to 50% above market prices, has been singled out by the
antigovernment protesters as representative of the kind of damaging populist policies pursued by the prime
minister to build rural support, which has translated into large parliamentary majorities.As the withdrawals at
Government Savings Bank worsened, Mr. Woravit said it wouldn't extend any further loans to the Bank for
Agriculture and Agricultural Cooperatives, which manages the rice subsidy program.
In recent weeks, the Yingluck administration has struggled to secure loans from commercial banks to pay the
rice farmers, who are demanding payment for grain they already handed over to the government.After
dissolving parliament in December in a bid to ease tensions, Ms. Yingluck now governs in a caretaker capacity
without any power to make major spending decisions. Protests and blockades of voting centers prevented Ms.
Yingluck from forming a new government after national elections on Feb. 2, and a fresh round to complete the
ballot isn't set until April.The political pressure on Ms. Yingluck continues despite government efforts to clear
protesters from some sites in the capital.

Cell # 92 321 369 2874

Protest leader Suthep Thaugsuban, a former deputy premier, on Monday urged his supporters to continue a
blockade at the main government office in downtown Bangkok."Yingluck Shinawatra will not have a chance to
return to work at the Government House, in this life or next," Mr. Suthep said. His supporters set up concrete
barriers in front of some of the gates and sealed them with cement in their latest bid to force Ms. Yingluck to
step down.Chalerm Yubamrung, chief of the government's special security center, said the police will launch
another operation to reclaim government buildings from the protesters on Tuesday.Thailand's economy has until
recently largely withstood the turmoil that followed the military's ouster of former leaderThaksin Shinawatra,
the current prime minister's brother, eight years ago.While it has struggled, along with peers such as Malaysia
and Indonesia, to regain the growth rates it saw in the 1980s and 1990s, Thailand largely has managed to
continue attracting large amounts of foreign investment, especially in the automotive industry.
In the past few weeks, though, consumer confidence has sagged badly, clouding the longer-term outlook for
Southeast Asia's linchpin economy.The National Economic and Social Development Board, a government
agency, said Monday that the months of protests will limit growth in the first half of this year.The board
forecast growth in full-year GDP to tick back up to between 3% and 4%, as reviving Western demand boosts
exports. The figure also assumed the tourism industry, which grew at a record 20% last year, will weather the
political unrest.
The unrest has dented consumer confidence, though, and affected spending, according to the agency. Private
consumption contracted 4.5% in the fourth quarter, a level not seen since the Asian financial crisis in 1997,
according to Rahul Bajoria, a regional economist with Barclays."Overall, the domestic economy still remains a
matter of big concern," he said. "At this point, there is no end—it's hard to say when the political uncertainty
will disappear."Major investors such as Toyota Motor Corp. have warned that future investments could be
jeopardized if the economic effect of the monthslong protests against the government and Ms. Yingluck
worsen.The board reported that the country's gross domestic product expanded 0.6% on year in the fourth
quarter compared with 2.7% growth in the third quarter, with the economy growing 2.9% in 2013 compared
with 6.5% in 2012.
Image: Thai farmers battle with soldiers in a protest over rice-subsidy payments. Agence France-Presse/Getty
Images

Corrections & Amplifications
Suthep Thaugsuban is a former deputy prime minister of Thailand. An earlier version of this article incorrectly
said he was formerly a prime minister of the country.

Cell # 92 321 369 2874

Write to Warangkana Chomchuen at warangkana.chomchuen@wsj.com and Nopparat Chaichalearmmongkol
at nopparat.chaichalearmmongkol@wsj.com

BY PANARAT THEPGUMPANAT AND APORNRATH PHOONPHONGPHIPHAT
BANGKOK Sun Feb 16, 2014 6:25am EST

Workers at the Udon Permsin rice mill pile up sacks full of rice to for storage in
the northeast province of Udon Thani, Thailand January 21, 2014.

(Reuters) - A loan given to the government bank
operating a controversial and expensive rice program
could temporarily ease pressure on Thailand's prime
minister, but it is a fraction of the sum needed to settle a
130 billion baht ($3.99 billion) debt owed to up to a
million farmers.Thailand's Government Savings Bank
said on Sunday it loaned 5 billion baht ($153.42 million)
to the Bank for Agriculture and Agricultural
Cooperatives (BAAC), but stopped short of confirming
whether the money would even be used to pay farmers for rice bought under the scheme.The program was
operated through the state-owned BAAC and paid farmers well above the market rate for their rice, making it
uncompetitive on world markets.
As a result, the government has struggled to sell enough rice to fund the scheme, prompting thousands of
farmers, many of whom have been waiting for their money for months, to take to the streets in protest.
Thailand's anti-graft body said it may also file corruption charges related to the program."The Government
Savings Bank has lent 5 billion baht to the BAAC, but we have no idea what the BAAC will use the money for.
This is a normal interbank loan," Worawit Chailimpamontri, president of the Government Savings Bank, told
reporters, adding that the loan might raise concerns among the bank's clients if used to fund the struggling
program.Thai government officials and representatives from the BAAC were not available to comment.
Hundreds of farmers continued to rally at the commerce ministry in Bangkok on Sunday. The unrest has added
to increasing pressure on Prime Minister Yingluck Shinawatra who has been facing off against a Bangkokbased protest movement seeking to drive her from office for more than three months.In a further blow to the
scheme and her party's stability, Thailand's anti-corruption agency is investigating the money-guzzling subsidy

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program.Thailand's National Anti-Corruption Commission (NACC) said last week it expects to file formal
charges later this month against Yingluck for her role in the rice scheme while an NACC panel has already
brought formal corruption charges against 15 people involved in government-to-government rice deals.Those
allegations prompted China to cancel a deal to buy 1.2 million tons of Thai rice.
The rice program was a signature policy of Yingluck, who swept to power in 2011 with the help of millions of
rural votes, but it could prove to be her government's undoing.The government opened a tender to sell 400,000
tons of rice from state warehouses last week in an attempt to pay farmers. Eighteen exporters submitted bids to
buy up to 460,000 tons, prompting the government to announce it would sell a further 500,000 tons from state
warehouses next week due to over subscription.In sign of the enormity of the rice problem, traders told Reuters
the two sales combined are unlikely to raise around 20 billion baht, a fraction of the 130 billion baht needed to
pay farmers.The rice intervention scheme has helped fuel anti-government protests in Bangkok that began in
November. The protests, which are still blocking parts of the city, have found much of their support from
middle-class, urban taxpayers outraged at what they see as waste and corruption in the rice scheme.
The commerce ministry said last week that it did not have the authority to extend the scheme beyond February
as the caretaker government of Yingluck has been left with limited policy-making powers pending the outcome
of a February 2 election.Varathep Rattanakorn, a minister to the prime minister's office, asked anti-government
demonstrators to stop trying to make common cause with farmers who are protesting in Bangkok, although
separately from the political demonstrations, and allow the government to try to resolve payment issues."We
must make a distinction between the pressing needs of farmers and the National Anti-Corruption Commission
investigation into the rice pledging scheme," said Varathep.
($1 = 32.59 Thai baht) (Writing by Amy Sawitta Lefevre; Editing by Matt Driskill)

Myanmar rice trade faces growing pains
The Myanmar Rice Federation (MRF) has stressed a need for tangible rice policies to keep abreast with
industries in neighbouring countries.
Published: 17/02/2014 at 08:01 PM
Newspaper section: breakingnews

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Farmers plant rice seedlings in Dala township near Yangon in August 2013. (Photo by AP)
A longstanding ban on private rice exports was scrapped in 2010 under the former military junta, but the
modernisation needs of Myanmar‘s agricultural sector remain vast. The world‘s largest rice exporter from 1961
to 1963, Myanmar‘s output today lags vastly behind that of its neighbours. And unlike those neighbours —
countries such as Thailand, Vietnam, India and China — Myanmar lacks a comprehensive set of rules
governing foreign investment in agriculture and the export of the country‘s most important crop, according
to Democratic Voice of Burma.Ye Min Aung, general-secretary of the MRF, said adopting more comprehensive
rice policies will allow foreign investors to make their own decisions freely on which areas to invest — such as
seed production, rice milling or industrial farming.
"The policy, to ensure sufficient domestic production and export the surplus, is rather too general and we rice
millers need more precise and strategic policies specifying roles of rice millers, traders, companies and farmers
as well as the insurance system and many more," said Ye Min Aung.
He said the MRF will cooperate with the government, international organisations and civil society groups to
work out new rice policies."A plan has been underway to draft new rice policies under supervision of the MRF
which will be presented to the President and the public, as well as political parties and civil society
organisations for their input and advice," he said.India — currently the world‘s largest rice exporter – shipped

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an estimated 10.15 million tonnes abroad in fiscal year 2012-13. Myanmar can barely keep up with domestic
demand, producing an estimated 12.7 million tonnes over the same period, with consumption hovering at
around 11.7 million tonnes.Soe Tun, chairman of the Farmers Association, said the new policies need to be
inclusive and represent everyone in the rice sector in order to be successful."We see that having the policy will
contribute to development of the rice industry as we will be able to gauge where to focus knowing who‘s going
where, and we would like to urge for the inclusion of representatives from all sectors and organisations in
making a draft of the policy," said Soe Tun.In the short term, Myanmar rice exports face a competitive
challenge from an old foe – Thailand. In October 2011, the Thai government, under current Prime Minister
Yingluck Shinawatra, launched a controversial rice-pledging scheme to raise rural incomes and win votes,
offering farmers as much as 50% more than market rates for their crops.While agriculture subsidies are
common across Southeast Asia, the Thai rice-pledging scheme came with a twist: in an effort to leverage the
country‘s position at the time as the world‘s biggest rice exporter, Bangkok sought to limit exports and put the
bulk of the country's production into strategic reserves. The policy was premised on the notion that the global
price of rice would increase drastically without a steady supply of Thailand‘s finest, allowing the country to
reap a windfall later on.It didn‘t work. Competing producer nations filled in the gap, keeping prices relatively
stable.
Thailand‘s pledging scheme is scheduled to expire next month, but owing to the election recently held and the
Thai government's current "caretaker" status, it cannot finance the debts owed to farmers under the scheme by
further borrowing.In an effort to recoup some of the estimated $4.4 billion in losses incurred by the scheme,
Bangkok is likely to dump excess stores on the international market in the near future, undercutting competitors
and causing the global price of rice to plummet. While Ms Yingluck enjoys widespread support in the country's
agrarian heartland, the failure of the rice-pledging scheme may fatally weaken her embattled government if it
fails to compensate farmers at agreed-upon rates.For Myanmar's rice industry, the pledging scheme has been a
mixed blessing. Anti-government protesters have claimed that low-quality rice from Myanmar and Cambodia
has been smuggled across borders into Thailand in an effort to cash in on the subsidies. Smugglers along the
Thai-Burmese border have benefited as well, earning a premium in Myanmar for rice siphoned from official
stores in Thailand.
The Asean Economic Community (AEC) is scheduled to go into effect in 2015, marking the first tenuous steps
to create an Asean-wide common market. Agriculture has historically been among the most protected sectors in
the region, so it is unlikely that Myanmar‘s farmers will be overwhelmed by foreign producers right away.In
2008, the Shinawatra-linked prime minister of Thailand, Samak Sundaravej, proposed forming an Asean-wide
"rice cartel", allowing Southeast Asian producers to demand better and more uniform prices for their rice on the
international market. Such a scheme may eventually be incorporated into the AEC as efforts to remove barriers
to regional trade progress.

Thailand reaping what it sowed
Published: 17 Feb 2014 at 13.58
Newspaper section: Asia focus

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Rice cultivation is deeply rooted in Thai culture but we are seeing fewer and fewer young people pursuing the
career that has sustained some of their families for generations.Farmers‘ protests, which had been almost
invisible in the past decade, are back in vogue in the Thai capital. Emboldened by the success of the antigovernment movement, the disgruntled farmers are demanding immediate payment for their pledged rice at the
guaranteed prices promised half a year ago by the Yingluck Shinawatra government.The delay in payments due,
which have ballooned to some 120 billion baht, is a consequence of the legal constraints on spending by the
caretaker government. It also reflects the unwillingness of banks to risk lending to the government to pay
suffering farmers.
The populist rice scheme has long been criticised by economists locally and internationally for distorting the
market, sucking huge sums out of the national budget and being prone to corruption. Still, all governments,
including the current lame-duck administration and its predecessors, have resorted to politically juicy subsidy
programmes.Thailand is certainly not the only country to give subsidies to farmers. It is a very common practice
in Asia as well as in most developed economies of Europe and North America.But Thailand‘s rice-price support
scheme is perhaps unique as the country was the world‘s largest rice exporter. Stockpiling rice in hopes of
exporting at a higher price clearly seemed like a good idea to some politicians.Viroj Na Ranong, a Thailand
Development Research Institute research director, had warned for years that the government was lousy at the
rice business, and monopolising the trade completely by buying every grain of rice at 40% above market prices
only made the situation worse.Now the government‘s failure to sell rice has resulted in Thai rice losing market
share and left farmers unpaid.
Apart from helping to secure a resounding election win for the Pheu Thai Party in 2011, the pricey rice scheme
reflects the inflated ambitions of Premier Yingluck‘s brother, the exiled former prime minister Thaksin
Shinawatra. He once tried to persuade Thailand‘s neighbours to form a rice cartel, an Opec of rice if you like,
that could dictate world prices.But each country in the region has a different rice strategy as some are lowincome, some are middle-income and some are high-income. Some import rice, others export rice.The rice
industry is also getting more competitive. Stockpiling is risky as rice is perishable, unlike oil.If we think of a
regional rice strategy for the sake of food security, it would be a noble idea. And if we think of other support
programmes, such as price insurance that would pay farmers the average of historical market prices in the event
that prices fall too low (not a guaranteed higher price than the market), that also might do more good than harm.
One can take a look at India; it has the capacity to stockpile rice for certain years, but for the sake of food
security due to its huge population. This year, India is also expected to remain the world‘s largest exporter of 10
million tonnes, followed by Thailand (8.5 million), Vietnam (7.5 million), Pakistan (3.4 million) and the United
States (3.35 million).Premium rice from India (fragrant and basmati) also has been fetching higher prices,
around $1,500 a tonne, compared with $1,000 for Thailand‘s top grades, according to the Thai Rice Exporters‘
Association.More trouble looms for Thailand‘s rice industry. Domestic prices are stagnant and export orders are
not picking up. China has cancelled a small import deal because of concern about risk, while a bigger
government-to-government deal has been exposed as a fiction.But China was not the largest importer of Thai
rice in 2013. That title goes to Benin (919,041 tonnes), followed by Iraq (703,869 tonnes), South Africa
(419,373), and the United States (386,844).

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China imported only 327,559 tonnes, according to the Commerce Ministry and the Customs Department.A
bigger long-term challenge for Thailand is improving rice quality to maintain the country‘s global appeal.If any
lesson can be learned from Thailand by politicians from other countries, it is that karma is real. You reap what
you sow. Populist policies might make you a winner at the polls but if the management of those policies lacks
integrity and is poorly thought out, it will come back to bite you.All countries that use subsidies eventually face
trouble if their policies are not well thought through. In the meantime, Thailand might be wise to seek some
allies inside and outside the region to offer a helping hand by buying some of its rice stockpile to ease the
current problem.

Oryza Shares Press Release - Cambodia Annouces New Code of Conduct to Address
EU Concerns
Feb 17, 2014

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Cambodia released a new Code of Conduct (CoC) designed to resolve EU origin concerns since Cambodian rice
exports enjoy duty-free status to the EU as a Less Developed Country (LDC) under the Everything But Arms
(EBA) agreement.

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Tags: Cambodia rice exports

Happy President's Day from Oryza!
Feb 17, 2014

Oryza editorial team is working limited hours today will be back in full force
Tuesday. Global rice export quotes will be updated daily.
Tags: president's day

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Stakeholders Urge FG to Implement Agreed Duty on Rice
Category: Business News
Published: Monday, 17 February 2014 09:32
Written by naomi_maris

Bags of riceThe Rice Millers Importers and Distributors Association of Nigeria (RiMIDAN) has appealed to
the federal government to urgently implement the $190 duty per metric tonne of rice to save the businesses of
legitimate operators of the rice sector in Nigeria from collapse. Speaking at a press briefing in Lagos at the
weekend, the Secretary-General of RiMIDAN, Alhaji Shaibu Mohammed, expressed regrets over the current
poor handling of the duty process, stressing that not less than 20 vessels carrying rice are stuck in high seas as a
result.He said it was as a result of federal government‘s breach of the agreement reached with the association in
November 2013 that the present inefficiency persists.According to him, only recently, the federal government
through the inter-ministerial committee on dutiable rate held a stakeholders meeting with the dealers in Abuja
towards promptly arresting the rate of smuggled rice entering the country through the republic of Benin.He said
that the federal government had called a meeting of stakeholders to address the situation before the last
Christmas season, which accounts for the highest point of rice consumption annually. This was with a view to
ensure that the Christmas imports were done legally through the Nigerian ports by lowering the Nigerian
dutiable price to match that of Benin Republic currently $200.At the meeting, the Inter-ministerial Committee
approved the reduction of the duty from $570 to $190 per metric tonne as a benchmark for imported rice within
the stipulated time of two months.The inter-ministerial committee is composed of the presidential committee on
trade malpractices, customs and ministry of agriculture.The association has however expressed regret that the
new dutiable price for legally imported rice has not yet been implemented by the government, lamenting that
before now almost all the agreements reached by the committee concerning duty and benchmark were always
implemented immediately.
`The new dutiable for legal import was not implemented by government, even though it would have saved the
industry and boosted the FG revenue by N50 billion,‘‘ Shaibu said.He said they were so shocked that after the
federal government gave the go ahead to bring in rice, most of their members swung into action and ordered
rice that is now stuck in the high seas of the nation‘s territorial waters."The waiting game has been on for over
two months because certain government agencies are yet to receive some directives."He appealed to the
national assembly and the president to save the from the colossal loss adding that the Benin Republic parliament
had since passed a motion, which drastically reduced duty on rice, which has further made it easier for
smugglers to smuggle rice into Nigeria.He noted that the inaction of government to quickly implement the
dutiable rate of $190 had increased the spate of rice smuggling into Nigeria.The association noted that last year
alone, about three million tonnes of parboiled rice was smuggled into Nigeria through Benin Republic which
has caused a lost of N300 billion and gain of over N200 billion to the neighbouring countries that facilitated the
smuggling.He said that less that 100,000 tonnes of rice was legally imported into Nigeria in 2013.

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Multilayered control fails to prevent misuse of rice imports
Vincent Lingga, Jakarta | Opinion | Tue, February 18 2014, 11:00 AM

Since rice is classified as one of the nation‘s strategic commodities, its import is severely restricted and subject to
multiple layers of control under the regulations of several ministriesThe import of medium-quality rice for domestic
price stabilization can be made only by the state-owned State Logistics Agency (Bulog) and the imports are based on
the volume set annually by an inter-ministerial rice task force chaired by the chief economics minister. Only rice of
premium quality and for special purposes can be imported by private companies (non-Bulog). But imports of both
medium-quality and premium-quality rice can be made only by companies that have both general import licenses
and special rice-importer licenses. Imports should be endorsed by a letter of recommendation from the Agriculture
Ministry which clearly stipulates details on the quantity and the quality of rice, the countries of origin and the
seaports of unloading in Indonesia.
The Trade Ministry (directorate general of foreign trade) can issue import licenses only on the basis of the letter of
recommendation from the Agriculture Ministry and the import specifications must also conform to those stipulated
by the latter.Copies of rice-import licenses are sent to 11 parties, including senior officials at the customs offices at
the designated seaports of unloading in Indonesia (mainly Tanjung Priok, Tanjung Perak, Tanjung Emas and
Belawan), to the Agriculture Ministry, the Office of the Coordinating Economic Minister and the trade office of the
Jakarta municipal administration.Before imports can be realized, importers must notify state-owned surveyor
companies, either PT Sucofindo or PT Surveyor Indonesia, in Jakarta about their import plans, complete with
technical specifications. This surveyor company will inspect the technical specifications of the rice at the seaports of
loading overseas or the warehouses of the rice suppliers overseas.Rice imports can be cleared by the customs service
in Indonesia only if they are supported by a surveyor‘s verification report certifying that the imported rice fully
conforms to the specifications as stipulated in the import license.Importers also must have a Rice Import Control
Card which must be filled out by the local customs service each time imports are realized stipulating such details as
the volume and classification of imported rice.
And importers must report to the Trade Ministry the import realization, supplemented with the Rice Import Control
Card bearing the signature and stamp of the local customs service.The question is then why after all this elaborate
bureaucratic procedure and multilayer supervision, misuse of rice import license still takes place? Furor broke out
over the past two weeks after it was discovered that more than 17,000 tons of medium-quality rice had been brought
in by private (non-Bulog) importers by manipulating their quality and their harmonized-system (HS) tariff
codes.Deputy Trade Minister Bayu Krisnamurthi cried foul, pointing out that if the rice was medium-quality it would
have entered the country illegally, because his ministry issued import licenses to private importers only for premiumquality rice and only on the basis of letters of recommendation from the Agriculture Ministry.This started a heated
blame game. The Agriculture Ministry vehemently defended its position, stressing it never recommended imports of
medium-quality rice to private importers. Likewise, the customs service, seemingly ―burned‖ by Krisnamurthi‘s
tirade, said it only cleared rice imports supported with approved documents from the ministries of trade and

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agriculture.The Supreme Audit Agency (BPK), the customs service and the ministries of trade and agriculture are
still
digging
into
the
alleged
rice-import
scandal.
The manipulation of the quality of the imported rice did not cause any state losses because all grades of rice are
subject to a fixed, specific import duty of Rp 450 (4 US cents) per kilogram and the impact was negligible as the
volume
involved
was
a
mere
0.0005
percent
of
the
national
rice
production.
But the controversy conveyed a strong warning.
These rather blurred tariff classifications seem to open loopholes for manipulation by importers.
_____________________
The government is acutely short of adequate technical competence and integrity in managing such trade-protectionist
measures through the distribution of import quotas of basic commodities. Just look at the recent wave of sugar- and
beef-import scandals. Such import irregularities never happened between 1985-1997 when Indonesian imports were
subjected by then president Soeharto to pre-shipment inspection at the countries of origin by the global surveyor
company, Geneva-based Société Générale de Surveillance (SGS).Part of the problem should be blamed on the vague
HS classification of tariff codes for rice in place since 2012. First of all, the import-tariff book does not mention such
terms as medium or premium quality for rice but classifies this commodity only using 10-digit codes for its specific
characteristics.
When the government changed the import-tariff book in 2012, medium-quality rice, which under the old tariff
regime had been under a separate HS tariff code (1006.30.90.00), was classified in the same tariff code
(1006.30.99.00) together with such premium-quality rice as Basmati and Japonica. Thai Hom Mali rice was moved
from the 1006.30.15.00 to the 1006.30.40.00 code.Futher complicating the matter, such rice trademarks as Japonica
(formerly Japan), Basmati (India) and Thai Hom Mali (Thailand) can currently be imported from anywhere, as these
rice varieties are now grown outside their native countries. Just like Thailand‘s Munthong durian, which is now
planted in Bogor. These rather blurred tariff classifications seem to open loopholes for manipulation by importers
who exploit the inadequate technical competence of officials or in collusion with corrupt officials.
The clearest and loudest warning from this controversy is that the government should improve its institutional
capacity and the internal control of officials directly involved in managing import-restrictive measures, especially as
regard to such basic commodities as rice, sugar, beef and horticultural products.The future challenges are even
tougher because the new Trade Law which was enacted last week vests ever broader authority in the government to
control the import or export of certain commodities considered vitally important to the basic needs of the people.
This means the government will be involved directly in the trading of many more commodities through the
distribution of quotas, special import licenses and other restrictive measures. A corrupt bureaucratic and political

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system crowded by greedy businesspeople could ―creatively‖ exploit and turn such import-restrictive measures into
cash cows.
_________________
The writer is senior editor at The Jakarta Post.

Rice import restrictions a 'hanging issue,' says De Lima
By Edu Punay, The Philippine Star
Posted at 02/18/2014 3:38 AM | Updated as of 02/18/2014 3:38 AM

MANILA, Philippines - Justice Secretary Leila de Lima believes the National Food Authority (NFA) might
have some problem in imposing the quantitative restrictions on rice importation if the expiration of
government‘s commitment to the World Trade Organization-General Agreement on Tariffs and Trade (WTOGATT) is strictly read.In an interview, De Lima said a legal team from the Department of Justice (DOJ) has
come up with an initial position, although her legal opinion has yet to be released.―If we go by the strict legal
sense of the issue, I‘m afraid we have some problem there,‖ she said.―Because as we very well know, the WTOGATT is a commitment. That forms part of the law, the maxim pacta sunt servanda (agreements must be
kept).‖However, De Lima said the DOJ is considering views contrary to this interpretation.―The international
law was ratified by the President and concurred by the Senate, and has since become part of our body of laws,‖
she said.
―What should be answered now is the question: which should prevail, the WTO agreement or the domestic
law?‖De Lima said this is a ―hanging issue‖ emanating from the varying interpretations on the rice import quota
that the government has imposed.―We are currently studying the matter and we are looking at varying
interpretations,‖ she said.De Lima said the DOJ and the Office of the Solicitor General would still have to
weigh the conflicting views before issuing a definitive legal opinion.―I have also ordered a thorough study into
the legislative intent of the Agriculture Tariffication Law,‖ she said.Stakeholders in the rice industry have been
waiting for the DOJ legal opinion to guide the courts in resolving petitions for injunction filed by rice
importers.The GATT has allowed WTO member-countries to restrict the importation of sensitive agricultural
products.However, the agreement expired in June 2012.While renegotiating with member-countries on the
extension of the pact, the government has continued to impose the quantitative restrictions.In questioning the
policy, rice importers said their importations should be allowed even without import permits as long as the
corresponding taxes are paid, now that the WTO-GATT has already expired.
BOC dealing with smuggling
At the Bureau of Customs, public information officer Charo Logarta-Lagamon said they have initiated a multipronged approach to deal with the problem of smuggling of agricultural commodities.―I think everybody knows
that we are not denying that smuggling is still a concern even for the new leadership of the bureau... (But) we

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are doing a multi-pronged approach to keep smuggling to a minimum,‖ she said.The smuggling of agricultural
commodities cannot be stopped overnight, Lagamon said.New Customs Commissioner John Sevilla has given
priority to transparency in transactions at the BOC.Details of every importation could now be seen through the
BOC‘s website.Stringent measures have also been imposed to prevent unscrupulous people from entering BOC
premises and acting as fixers for firms transacting business.Lagamon said since assuming office last Dec. 9,
Sevilla has initiated systemic reforms at the BOC because smugglers would just change company name and
resume their activities if authorities would only concentrate on running after them.―The commissioner is now
addressing the problem... at the core of the system to mitigate and eventually eradicate smuggling,‖ she
said.The BOC has issued several alert orders for shipments, and some smugglers have reportedly stopped
operating.Lagamon said the BOC has tied up with the Bureau of Internal Revenue (BIR) to check the
registration of importers.
―The BIR checks if they have a record of the importer, and if proper taxes were paid,‖ she said.―By doing so
they weed out the fictitious companies and identifies those that have the capacity and legitimacy to
import.‖Many of the cargoes passing through the ―green lane‖ belong to multinational companies, Lagamon
said in response to allegations that it is being used as an avenue for smuggling.Even if smugglers manage to slip
their shipment through the green lane, they would still be caught by the Post Entry Audit Group under the
Department of Finance-Fiscal Intelligence Unit, she added. – With Evelyn Macairan

Seeds of change
Given the agro-climatic variation, Nepal needs to be breeding seeds; not depending on global corporations.Over
the ages, farmers have selected from among the variations produced by sexual reproduction or by mutation so
that our generation now inherits a staggering number of varieties of the few plants that we have selected for
farming from among the millions of species available. In the past, planting materials were saved from previous
crops or accessed from other farmers through barter or sale. Now of course the seed industry is a major part of
modern agriculture and the cost of seeds bought commercially represent an important input cost for farmers. In
the last century, research to develop new varieties and the expenses incurred in their promotion were mainly
borne by the public sector—both government agencies and publicly funded organisations like the International
Maize and Wheat Improvement Centre (CIMMYT) in Mexico and the International Rice Research Institute
(IRRI) in the Philippines. The dwarf wheat RR 21 developed by CIMMYT and the dwarf rice IR 8 developed
by IRRI have perhaps fed the largest number of human beings ever.
Patents and products
Norman Borlaug, father of the Green Revolution, was supported by the Rockefeller Foundation in his work to
develop disease resistant high yield dwarf varieties in Mexico. Borlaug worked for a public institution and
neither he nor his backers (CIMMYT or the Rockefeller Foundation) patented the varieties of ‗miracle wheat‘
or even the concept of dwarf varieties that can respond economically to much higher inputs. This was in the
fifties and sixties, a different age indeed. Unfortunately, this present age is one of the private sector and this

Cell # 92 321 369 2874

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