5th february,2014 daily global rice e newsletter by riceplus magazine

5th February , 2014

TOP Contents - Tailored for YOU
Latest News Headlines…

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 Abu Dhabi set to become hub for the ‘queen of rice’
 Thailand’s think tank: Govt cornered to dead-end on rice
scheme
 UPDATE 2-Thai rice exporters see higher 2014 shipments, but
prices under pressure
 Thai protest leader mocks, PM defends rice-buying scheme
 Thai Government Seen Increasing Rice Sales After China
Cancels
 Export Forecast
 Laos Falls Short of Dry Season Rice Production Target
 NBI expands inquiry on rice smuggling
 The cancelled Chinese's rice deal will not affect wider exports
 Yanyong': Stockpiled rice sold at market prices
 BoT seeks to allay rice loan fears
 Rice import in pvt sector rises significantly in recent months
 PhilRice warns farmers about fake rice seeds
'3-IN-1' RICE | Variety to survive wet, dry, salty conditions in advanced research stage
Curbing smuggling is needed, not changing rice policy, says Agri official
Asian farmers introduced to flood-resistant 'scuba rice'
Rice Heists: Why the FBI Is Arresting Chinese Agricultural Scientists

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NEWS Detail…

Abu Dhabi set to become hub for the ‘queen of rice’
Triska Hamid
February 5, 2014 Updated: February 5, 2014 17:05:00

BU DHABI // For centuries, Arab and Persian traders on horseback set out from the peninsula to bring back that
most prized Indian export, basmati rice.Today, such is the appetite for biryani and pilau – cooked, of course,
with only the most fragrant, long-grained rice – that the region is the world‘s number one importer.Soon packets
of the ―queen of rice‖, as it is known, will bear the sticker: processed and polished in Abu Dhabi.The capital‘s
Al Dahra Agriculture is planning to invest US$150 million (Dh550m) in building a local factory to process
basmati rice.The company hopes its mill, which is expected to open in 16 months‘ time, will enable Abu Dhabi
to become a rice hub for the rest of the Middle East.
It comes after signing a joint venture in October last year with Kohinoor Food, which owns one of the largest
mills in India. Kohinoor will lend its expertise to the project. The mill will also store and distribute the rice and
be based in Kizad, the Khalifa Industrial Zone Abu Dhabi.The plant will initially focus on processing and
polishing basmati rice and will look at incorporating other types of rice in the future.―We are doing this for two
reasons,‖ said Nael Khalil Saifan, the chief operating officer at Al Dahra, at the Global Forum of Innovation in
Agriculture in the capital. ―One for food security.
We need to keep a minimum stock inside the country, we will have more than 60 silos. The other objective is to
approach the Middle East market.‖Saudi Arabia, Iraq and Iran are the world‘s biggest importers of basmati rice,
accounting for more than 90 per cent of global exports.Basmati is one of the premium varieties of rice, grown
mostly in northern India, including the Punjab region straddling India and Pakistan. More than 70 per cent of
the world‘s supply comes from India, and the rest from Pakistan. Kenya also produces a kind of basmati, while
the US variety is called Texmati.Basmati exports from India are about four million tonnes a year, while
Pakistan exports close to a million tonnes. About three million of that overall total is exported to the Middle
East.The mill in Kizad will process 100,000 tonnes a year of basmati rice initially, of which 75,000 tonnes will
be for the UAE.The company will then gear up to export more to the rest of the region. ―I think we can double
production over the next five years,‖ said Mr Saifan.
thamid@thenational.ae

Thailand’s think tank: Govt cornered to dead-end on rice scheme
Wednesday, 05 February 2014 By MCOT –

Feb 5 – The Thailand Development Research Institute (TDRI) has said the controversial rice subsidy scheme
has reached a dead-end and urged the government to urgently sell rice in its stocks to get money to pay

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farmers.TDRI president Somkiat Tangkitvanich
said the rice pledging scheme was bankrupt from
the start because the government bought rice at
high price but sold the grain at cheap price.The
government lacked an accounting system and the
financial burden was as high as Bt124 billion while
it is expected to earn only Bt10-15 billion from
rice trading this year, he said.The TDRI president
said problems arising from the rice scheme were
beyond liquidity crisis, adding that the government
had paid Bt700 billion between 2011 and 2013 to
purchase rice from farmers but earned only Bt150
billion.
The government is short of Bt500 billion while the two-year rice programme has wreaked havoc on the Thai
economy and destroyed the rice trading system, said Dr Somkiat.Ammar Siamwalla, TDRI distinguished
scholar, described the rice subsidy programme as ―corruption with receipts‖ and ―gigantic corruption racket.‖It
is a political party‘s populism policy to win over voters in the short term but damaged the country‘s economy in
the long term, he said.He said the government‘s assets, its rice in stock, are abundant but it could go bankrupt if
it keeps the rice for too long, or until the quality drops.The government‘s only solution is to urgently sell the
rice to make money to pay farmers, said Dr Ammar, adding that the government should recover some of the
corruption money from rice sales to contribute to payments to farmers.TDRI distinguished fellow Nipon
Poapongsakorn said Thailand‘s rice export status will plunge lower if the government insists on continuing the
rice pledging programme, and such a move will pave the way for Vietnam and India to become rice export
leaders in the global market

UPDATE 2-Thai rice exporters see higher 2014 shipments, but prices under
pressure
Wed Feb 5, 2014 4:28am EST

* Thailand expected to ship 7.5 million tonnes in 2014 -exporters association
* India ranks world's biggest exporter, Thailand third : USDA
* Prices expected to drop on rising supply
* Thai political chaos to put more pressure on rice prices (Adds comments on price pressures, data on global
production)
By Apornrath Phoonphongphiphat
BANGKOK, Feb 5 (Reuters) - The Thai Rice Exporters Association expects the country to export 7.5 million tonnes
of rice in 2014, up about 14 percent from the 6.6 million tonnes shipped in 2013, as the government struggles to fund

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a controversial rice intervention scheme.Thailand's embattled government desperately needs money to pay farmers
for rice it guaranteed to buy at above market rates. But with parliament dissolved and the government in a caretaker
role, uncertainty has grown over the future of the scheme.The controversial policy has underpinned crucial rural
support for the government of Prime Minister Yingluck Shinawatra, which is now in limbo after holding an election
boycotted by the opposition and disrupted at the ballot box.
"We expect the government to release a substantial amount of rice from state warehouses so we would have more
supply for exports this year. But prices are likely to fall," rice export association president Chareon Laothammatas
told reporters.The government said it would open a tender to sell 400,000 tonnes of rice from state stocks next
week.Rising rice supplies and uncertainty over the future of the intervention scheme, which expires on Feb. 28,
would put pressure on prices, said the association."That means prices will definitely be on a downward trend as
everybody knows that supply is rising everywhere," Chareon said.The U.S. Department of Agriculture (USDA) has
predicted a bumper crop in India of around 103 million tonnes in 2013/14.Thailand is expected to produce 20 million
tonnes and Vietnam was likely to have 27 million tonnes, according to the USDA data.Thailand's protracted political
crisis was also expected to add pressure to prices, exporters said."Prices are likely to fall as there is no certainty over
whether the current caretaker government can renew the scheme when it expires, while farmers are due to harvest a
second crop," said Vichai Sriprasert, a honorary president of the association.
The price of common grade Thei 5 percent broken white rice was offered at $445 per tonne on Wednesday, slightly
higher than the same Vietnamese grade at $390-$400 per tonne, exporters said.The USDA has forecast Thailand will
export 8.5 million tonnes in 2014 as global demand rises, especially in China and Africa.According to the USDA,
India remained the world's biggest exporter, shipping 10.5 million tonnes in 2013.Vietnam ranked number-two,
exporting 7.2 million tonnes, while Thailand was third with 6.6 million tonnes of exports. (Editing by Michael Perry)

Thai protest leader mocks, PM defends rice-buying scheme
BY AMY SAWITTA LEFEVRE AND PRACHA HARIRAKSAPITAK
BANGKOK Wed Feb 5, 2014 11:46am GMT
(Reuters) - Thailand's fiery protest leader denounced the
government's battered rice-buying scheme as corrupt and
the prime minister leapt to its defence on Wednesday, days
after an election did nothing to restore stability in the
divided country.Suthep Thaugsuban and his supporters
have been trying to topple Prime Minister Yingluck
Shinawatra since November, prompting the government to
announce a state of emergency ahead of Sunday's vote,

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which was boycotted by the opposition.The rice programme was among the populist policies pioneered by
Yingluck's brother, Thaksin Shinawatra, a former prime minister central to the conflict that has divided Thais
for eight years. He was toppled by the military in 2006.Generous subsidies for farmers were a centrepiece of the
platform that swept Yingluck to power in a landslide election win in 2011, but have left Thailand with vast
stockpiles of rice and a bill it is struggling to fund.Losses to the taxpayer, estimated at 200 billion baht ($6
billion) a year, have fuelled protests against Yingluck and payment problems risk alienating farmers at the heart
of her support base in the poorer north and northeast."Yingluck took farmers' rice more than seven months ago
and hasn't paid them," Suthep told supporters on Wednesday, even as another warrant was issued for his
arrest."Some of them have killed themselves and some of them are crying in front of the television because they
don't have a penny ... The government said the rice-purchasing policy was to help farmers but instead the policy
became part of the government's corruption machine."Yingluck and her government are being investigated by
an anti-graft panel for alleged irregularities in the rice scheme. That and other cases going through the
politicised courts could dissolve her Puea Thai Party and ban top officials.The rice programme is close to
collapse after the commerce minister said China had cancelled an order for 1.2 million tonnes due to the
corruption investigation.State-run Krung Thai Bank has joined other lenders in saying it will not provide loans
urgently needed to rescue a scheme that has at times been buying rice at prices up to two-thirds above the
prevailing benchmark rates.

"MONEY WENT TO THE DOGS"
Anti-government protests have been blocking parts of Bangkok in the latest round of an eight-year dispute that
broadly pits Bangkok's middle class, southern Thais and the royalist establishment against the mostly poor, rural
supporters of Yingluck and Thaksin.Ten people have been killed in sporadic bursts of violence, although the
capital has been calm since Sunday's disrupted poll."Farmers who took their rice to milling houses received just
over 10,000 baht ($310) when the price they were guaranteed was 15,000 baht," Suthep said at a rally at one of
the protest sites in Bangkok's central business district."The rest of the money went to into the mouths of the
dogs ... Each of these dogs is fat."Yingluck said the government was only trying to help farmers.
"These problems stem from the dissolution of parliament (last year) which made it difficult under the
framework of the law to approve payments," she told reporters."Whether this scheme is extended or not is up to
the next government ... Everyone knows that the government does not have the power to do anything that will
affect the incoming government so this issue may take time to resolve."The Criminal Court approved arrest
warrants on Wednesday for 19 protest leaders, including Suthep, for violating the state of emergency.The
decree bans political gatherings of more than five people, despite the fact that thousands have gathered at main
intersections every night since it was introduced last month.Labour Minister Chalerm Yoobamrung, who is in
charge of the state of emergency, has threatened to arrest protest leaders several times but has yet to act.Suthep

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faces charges of murder related to violence in 2010 when, as deputy prime minister, he sent in troops to crush
protests by "red shirt" supporters of Thaksin. More than 90 people were killed.
Suthep is due to appear in court on Thursday in that case.The demonstrators say Yingluck is Thaksin's puppet
and the costly giveaways that won his parties every election since 2001 are tantamount to vote-buying using
taxpayers' money.They say Thaksin's new political order is tainted by graft and cronyism and want an appointed
"people's council" to replace Yingluck and overhaul a political system hijacked by her brother, who lives in
exile to avoid a jail term for graft.Protesters succeeded in disrupting voting in a fifth of constituencies in
Sunday's election. The incomplete poll, the results of which have not been announced, means Yingluck could
head a caretaker administration for months, unable to make policy decisions, until vacant seats can be filled.
(Writing by Nick Macfie; Editing by Robert Birsel)
By Supunnabul Suwannakij Feb 5, 2014 3:09 PM GMT+0500

Thai Government Seen Increasing Rice Sales After China Cancels
The Thai government is poised to boost rice sales from record state stockpiles to fund a buying program from
farmers, hurting prices of the grain this quarter, according to a shippers‘ group.Prices of Thai 5-percent
broken white rice may plunge to $370 a metric ton as the government seeks to generate cash to appease
farmers, said Chareon Laothamatas, president of the Thai Rice Exporters Association. That would be the lowest
price since December 2007, according to the Rome-based Food and Agriculture Organization. The grade was at
$456 today.The program is a centerpiece of Prime Minister Yingluck Shinawatra‘s caretaker government,
which is under pressure from protesters demanding her administration be replaced by an unelected council.
Farmers have not been paid for crops sold to the government under the program, which has spurred record
reserves. China‘s Heilongjiang province canceled a rice purchase as confidence was hurt by an anti-corruption
probe, Deputy Prime Minister Niwattumrong Boonsongpaisan said yesterday.―There is no magic pill to wipe
away stockpiled rice,‖ Chareon said in an interview in Bangkok today at an event organized by the group,
which forecasts that state stockpiles will rise to 20 million tons. ―It may take about five years to get rid of these
stockpiles. The government needs to sell the grain at attractive rates and cut new supplies.‖The price of Thai 5percent broken white rice, a benchmark grade for the staple for half the world, slumped 30 percent after
reaching a three-year high in 2011, when Yingluck‘s government introduced the purchase program to try to lift
prices and rural incomes. Anti-government protesters led by Suthep Thaugsuban have said the program is

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corrupt while seeking to overthrow Yingluck‘s administration with months of rallies in Bangkok and attempts
to disrupt elections held on Feb. 2.

Export Forecast
Rice exports from Thailand may surge 13 percent to 7.5 million tons this year, according to a forecast from the
shippers‘ group. That would be the highest level since 2011, when the rice exports reached their peak.―Prices
may plunge to $370 a ton in the first quarter as the government is in a rush to sell,‖ said Chareon. ―Concerns
over the quality of rice in the state stockpiles are also weighing on Thai prices.‖Yingluck‘s administration is
seeking to borrow 130 billion baht ($4 billion) to pay farmers for harvests in the current crop year that started
October after spending almost 689 billion baht in the past two years to buy the grain.
The program will run until the end of February, leaving a new government to decide on rice policy, according to
the caretaker government.The government will invite bids for about 400,000 tons and will continue to sell from
the stockpiles, Niwattumrong said yesterday. The Finance Ministry is finding it difficult to raise funds to make
subsidy payments to farmers because of pressure from anti-government protesters, Permanent Secretary
Rungson Sriworasat told reporters Jan. 3.
To contact the reporter on this story:
Supunnabul Suwannakij in Bangkok atssuwannakij@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

Laos Falls Short of Dry Season Rice Production Target
February 4, 2014

Laos Falls Short of Dry Season Rice Production Target 2014-02-04 Laos is falling behind on its rice-growing
target this season as poor irrigation systems and the promise of better prices for cash crops pushes farmers to
plant less of the grain, according to officials and news reports. The Ministry of Agriculture and Forestry had
urged farmers across the country to plant 126,000 hectares (311,000 acres) of rice this dry season, which ends in
April. But as farmers eschew the water-intensive grain for vegetable crops, only 44,100 hectares (109,000
acres), or some 35 percent of the goal, have been planted, according to government statistics. This will leave
Laos short on its harvest target of 500,000 tonnes (551,000 short tons) of rice this season, an agriculture official
told RFA's Lao Service . "The plan for planting rice this dry season has been able to reach only 35 percent of
the target because many farmers have turned to growing more cash crops," the official said, speaking on
condition of anonymity.
"Because of this, rice production for this season will not reach the target," the official said. Sharp drop This
year's planting area will suffer a sharp drop from the 96,200 hectares (238,000 acres) in the same period in
2013, which was still short of that year's goal, the state-run Vientiane Times reported. The ministry believes
farmers have been discouraged from planting rice by the low price of the commodity and insufficient water

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supply from irrigation systems in the country's north, which unlike the south relies more heavily on irrigation,
the paper said. Instead of rice, farmers in the north are using the paddy areas to grow vegetables such as
watermelon, bean, eggplant, tomatoes and chilies to sell, according to the paper. The ministry has made
attempts to promote better irrigation management among local-level officials, instituting a Nationwide
Irrigation Day last year and calling for stricter enforcement of regulations on using water, the Vientiane Times
reported last year.
Budget woes Farmers say the irrigation systems have been left in disrepair due to budget problems. In July,
officials said as many as 42 irrigation systems in Vientiane province were left unrepaired following damage by
floods in 2011 and 2012, hampering rice planting targets in the province, the KPL Lao news agency reported.
The impoverished country is aiming to join the ranks of its rice-exporting neighbors within the next decade but
has fallen short on rice production targets in recent years. According to a government report last month, rice
production in Laos for 2012-13 reached only 3.52 million tonnes, or 93 percent of the yearly plan which was set
at 3.8 million tonnes, according to the Vientiane Times . Reported by RFA's Lao Service . Translated by
Somnet Inthapannha. Written in English by Rachel Vandenbrink . Copyright (c) 1998-2011, RFA. Used with
the permission of Radio Free Asia , 2025 M St. NW , Suite 300, Washington DC 20036.

NBI expands inquiry on rice smuggling
THE NATIONAL Bureau of Investigation (NBI) has expanded its probe on rice smuggling in the country,
Justice Secretary Leila M. de Lima said yesterday.
―We expanded NBI‘s probe on rice smuggling. They‘re expanding it beyond the case of Davidson Bangayan
also known as David Tan but we‘re still building up the case against Davidson Bangayan,‖ Ms. de Lima told
reporters in a chance interview yesterday.Ms. de Lima said the names of other alleged big-time rice smugglers
have already floated in areas like Cebu City, Iloilo, Cagayan de Oro, Davao and the Bicol region.The Justice
chief said the focus remains on Mr. Bangayan. Ms. de Lima said she has a standing instruction to the NBI to file
the case as soon as they finish their investigation.Mr. Bangayan, for his part, has earlier denied he is a big-time
rice smuggler but admitted that he is involved in rice trading on a ―small-time‖ basis.
REPRIMAND SOUGHT

Meanwhile, an umbrella organization of agricultural industries has asked the Supreme Court (SC) to reprimand
a Davao City judge for stopping the Customs bureau from seizing smuggled rice.The Samahang Industriya ng
Agrikultura, Inc. (Sinag), an organization composed of 33 federations and organizations, yesterday filed a
seven-page complaint against Davao City Judge Emmanuel C. Carpio, saying the latter should be held
administratively liable for ―unjust judgment.‖Mr. Carpio, the presiding judge of the Davao City Regional Trial
Court (RTC) Branch 16, stopped the Bureau of Customs (BoC) from seizing the rice shipments of Starcraft
International Trading Corp., which was later sold to Joseph M. Ngo.The case stemmed from the bureau‘s order

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last Nov. 5, 2013 to hold over 3.3 tons of rice owned by Starcraft for lacking the requisite special permits from
the National Food Authority (NFA).
The order prompted Mr. Ngo to ask for a writ of preliminary injunction before the Davao RTC to stop the BoC
from holding the rice shipments. Mr. Carpio then issued a preliminary injunction against the Port of Davao‘s
District Collector, prompting Sinag to file the case before the high court against the judge for alleged ―unjust
judgment.‖In its complaint, Sinag said the Customs bureau were doing their duty of preventing smuggling in the
country‘s ports when it seized the shipments. Sinag noted that the Davao Port is still waiting for a legal opinion
from the Customs main office over the contentious NFA permit. -- M.F.E. Flores

The cancelled Chinese's rice deal will not affect wider exports
Date : 5

2557

BANGKOK, 5 February 2014 (NNT) - The Thai Rice Exporters Association has confirmed China‘s withdrawal
from the government‘s rice agreement, claiming it will not affect the private sector‘s exports. As the
government struggles to secure funds to pay farmers participating in the pledging program, China announced it
had pulled out of a deal to buy 1.2 million tonnes of Thai rice. The association noted however that the deal last
year had still not been officially finalized, and won't have an impact on overall rice exports to China which
totaled 300,000 tons last year.
The association nonetheless urged the government to exercise more transparency regarding rice auctions and to
release the rice stock at 11 baht per kilogram, which is closer to the prevailing Vietnamese rate. The exporter
body also made known that the rice-pledging scheme had generated massive revenue losses and advised the
government to scrap the scheme as soon as possible. The association forecast that Thailand will export 7.5
million tons of rice this year, worth 4.5 billion US dollar or 140 billion baht.

Yanyong': Stockpiled rice sold at market prices
Date : 5

2557

BANGKOK, 5 Feb 2014, (NNT) - Deputy Commerce Minister, Yanyong Puangrach, has reaffirmed that rice in
the government's stockpile has been sold at market prices, denying rumors that the government has been selling
its rice under market prices. According to Yanyong, he has assigned the Department of Foreign Trade to
negotiate rice deals with the private sector, focusing on firms with purchase orders from foreign countries;
adding that the private sector has initially placed orders with the Ministry for 850,000 tons of white and jasmine
rice. The deal, which is to be completed in two month's time, will be worth to the tune of 10 billion baht, which
will be paid to farmers for their pledged rice.

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Yanyong also urged the media to be extra careful when presenting the news related to the rice pledging scheme,
citing recent rumors that the government had been selling the pledged rice at a huge loss. Mr. Yanyong said that
it was impossible for the government to make deals that would cause tremendous losses to the nation.
The private sector's demands for Thai rice are relatively high at the moment, said Yanyong, adding that the
Ministry is figuring out how much rice it can sell. As for the Government-to-Government rice deals, Mr.
Yanyong said the Ministry has been in constant negotiations with various foreign countries; however, the
process is more complicated now, as the current Thai government is a caretaker one. Related agencies have
been assigned to look into possible deals with previous trading partner countries, while pushing for a speedy
delivering of existing orders.

BoT seeks to allay rice loan fears
Published: 5 Feb 2014 at 17.43,Online news: Finance

The Bank of Thailand has found no evidence of unusual money
withdrawals this week, despite media reports that depositors have
pulled more than 9 billion baht from three banks over fears their
money could be used to finance the government's rice-pledging
scheme.A banner warns of 'mega corruption' in the rice-pledging
scheme. The Bank of Thailand has found no evidence of unusual
money withdrawals this week, but media reports said depositors
have pulled more than nine billion baht from three banks over
fears their money could be used to finance the rice subsidy
scheme. (Photo by Chanat Katanyu).
Salinee Wangtal, assistant governor of the Central Bank, said the bank‘s monitoring systems had found no
reports of unusual money withdrawals that were cause for concern.She made the comments in response to
media reports that around six billion baht from two-state run banks and three billion baht from a commercial
bank had been withdrawn within the space of a week.Anti-government protesters had speculated that the staterun Government Saving Bank and Krungthai Bank could be sympathetic to lending the caretaker government
money to finance the beleaguered rice scheme. TMB Bank, which used to be state-run but is now a commercial
operation, was also implicated as a potential source of funds for the pledging programme. However, all three
have denied that they plan to offer loans to finance the scheme. The caretaker government now owes farmers
for more than 100 billion baht for rice pledged under the initiative.Ms Salinee insisted that commercial banks in
Thailand are still performing well, having generated combined profits of 220 billion baht in 2013 as banks.
The non-performing loan average for Thai banks stands at 2.4% of total outstanding loans, which is also
normal, she said. A non-performing loan is a loan that is in default or close to that point. The Thai banking
system also has the highest allowances for doubtful debt in the world, at 3.8% of outstanding loans, she
added. Doubtful debts are those debts that banks are unlikely to be able to collect.Ms Salinee said the central

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bank projected that loan extensions will grow by 8-10% this year, which is in line with economic growth but
lower than te 11% loan extension growth seen in 2013.

Rice import in pvt sector rises significantly in recent months
Importers likely to manipulate local mkt
FHM Humayan Kabir

The private sector has significantly raised rice import in recent months, taking the advantage of poor
government food stock and higher price in domestic market, sources said Wednesday.
Experts and business circle fear that the private sector would dominate the domestic rice market unless the
government raises its food procurement drive both from internal and external sources.The reserve of rice has
dropped significantly in recent times as the total government stock was 9,42,000 tonnes including 700,000
tonnes till January 15 last. A year back, the reserve was 1.3 million tonnes.Local think-tank Centre for Policy
Dialogue (CPD) said recently that the lesser food stock especially rice in recent days compared to previous
years is much lower which causes concern.Executive Director of the CPD Professor Mustafizur Rahman said
the government should go for import of rice from India or any other food supplying countries in a bid to boost
stock as the international market is cool now.
Development analyst Dr Mirza Azizul Islam said the poor public stock of the food grain would create room for
the private importers to manipulate the local market. "I think the private importers have already taken the
advantage and started to intervene in the retail price. The retail price in the local market has already showing
upward trend," he said.Muhammad Al Amin, Senior Research Associate of the CPD said, "If the public stock is
not enhanced, the private sector would get chance to destabilise the market.The government would lose its
market intervention tools, if it does not boost its rice stock to more than 1.0 million tonnes from the current
stock of nearly 700,000 tonnes. The local market could be manipulated by the private importers, he said.
According to government data, the rice stock in July-December period of the current financial year (FY) 201314 has dropped by nearly half compared to the past couple of years.During July-December period of FY2014,
the rice stock has fallen to 676,000 tonnes compared to 1.13 million tonnes in the same period last FY2013 and
from 11.16 million tonnes in the same period of FY2012, official data showed.Director General of Food,
Ahmed Hossain Khan, said there would be no scope for the private sector to manipulate the market as
government stock would rise more than 1.0 million tonnes, a comfortable level for the country."Our
procurement target of 1.0 million tonnes of food grain would be achieved within this month as Aman
procurement has got momentum in recent weeks," he told the FE."We are close to achieve 300,000 tonnes of

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rice procurement target. The entire 45,000 tonnes of wheat from abroad would reach soon as we have already
opened the LC," he said.
Earlier on November 28 last, the Directorate General of Food issued a circular directing its regional offices to
procure 200,000 tonnes of Aman.Interestingly, the government, unlike the private sector traders, is not
interested to exploit the prevailing favourable food price situation in the international market despite the fact
that its own food reserve has gone down considerably over the last one year.Between July and December of
FY2014, the government imported only 350 tonnes of rice which was 2200 tonnes in the same period last
FY2013 and 43770 tonnes in FY2012, the government data showed.The rice prices in the domestic retail market
have gone up by nearly Tk 2 to Tk 5 per kilogram over the last few weeks.

PhilRice warns farmers about fake rice seeds
Category: Agri-Commodities
04 Feb 2014
Written by Ramon Efren R. Lazaro / Correspondent

THE Philippine Rice Research Institute (PhilRice) is cautioning farmers from procuring rice seeds after it
discovered unauthorized use of its supply in Nueva Ecija and Isabela. To be assured of the rice seeds that
farmers have bought, PhilRice advises the farmers to contact the Farmers‘ Text Center at 0920-9111398 to
verify prices, rice varieties being sold and quality of the seeds.In a statement, PhilRice said investigations by a
fact-finding committee showed that hybrid-rice seeds claimed to be from PhilRice were mixed with other
varieties and sold at P6,000 per 20 kilogram. PhilRice-produced hybrid-rice seeds cost only P195 a kilo.Dr.
Eufemio Rasco Jr., PhilRice executive director, said, ―We sell registered seeds to growers and they in turn
produce certified seeds, which are widely sold to farmers. It could be that sacks with the PhilRice ‗brand‘ and
certification tags are bogus.
Rest assured that we are after entities who claim that they are selling PhilRice-produced seeds, although these
are not really PhilRice-produced and may not even be PhilRice varieties.‖The statement said the country‘s lead
agency in rice research and development found that Javan Agri -Trading Co. used PhilRice sacks in distributing
Mestiso 24, a hybrid-rice variety to a cooperative in Cabiao, Nueva Ecija. Analysis of the sample seeds showed
the seeds were actually PSB Rc240, an inbred variety. The cooperative members said they were encouraged to
buy the seeds despite of the high price because they were delivered ―right in their doorsteps,‖ reducing their
traveling cost.
―We have asked the authorities to investigate on this. For the meantime, our farmers can contact our Text
Center
or
check
PhilRice-produced available
seeds in http://www.philrice.gov.ph/index.php?page=products&page2=seeds,‖ Rasco said.To ensure purity and
cleanliness, Rasco said PhilRice-produced seeds undergo a month-analysis conducted by National Seed Quality

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Control Services, a division under the Bureau of Plant Industry that oversees seed and planting material
production, processing, storage and distribution.
―We assure our farmers that our seeds have a minimum-germination rate of 85 percent. High-quality seeds can
contribute to a 5-percent to 10-percent increase in grain yield, so this is why, we maintain our standards on
seeds,‖ Rasco said. Other than agriculture establishments and seed centers, farmers can also buy seeds at
PhilRice stations in Science City of Muñoz, Nueva Ecija; Batac, Ilocos Norte; San Mateo, Isabela; Los Baños,
Laguna; Murcia, Negros Occidental; RTRomualdez, Agusan del Norte; Midsayap, North Cotabato; and Ligao
City, Albay. In another development, Rasco had also committed to support community share agriculture (CSA)
or bringing together the farmers and consumers, through the institute‘s Intensified Rice-Based Agri-Bio
Systems Program, which aims to develop a sustainable, ecological efficient, and socially acceptable systems
that will generate P1 million annual income in a hectare.

'3-IN-1' RICE | Variety to survive wet, dry, salty conditions in
advanced research stage
By: Joel C. Paredes, Special to InterAksyon.com
February 5, 2014 5:33 PM nterAksyon.com
The online news portal of TV5
LOS BANOS, Laguna – It‘s not just coffee that can be packaged as ―3-in-1.‖ The
challenge of climate change has spurred scientists to fast-track work on a climateresilient variety that can tolerate flooding while surviving in a prolonged dry
season, and saltiness which is a common problem in farms near coastal areas in the
Philippines.The so-called ―3-in-1‖ is just one of the new varieties that the
International Rice Research Institute (IRRI) has been developing to help mitigate
climate change and sustain agricultural productivity in rice-producing countries
like the Philippines, forced in recent years to import rice from countries that used to
send their farm experts to study at IRRI.Dr. Bruce Tolentino, IRRI Deputy Director
General ―We‘re really like a factory,‖ says Julian Lapitan who heads the IRRI
Partnership Office. Old varieties that IRRI developed are now being put together ―in the hope that this addresses
climate change challenges.‖
While the research is still in the ―advanced stage‖ for this new variety, Lapitan noted that they have more
actively promoted the ―submarino‖ in the aftermath of the typhoon Yolanda. This new variety can survive
flooding and still produce an average yield of 6.4 tons per hectare. It actually came from the ―mega variety‖
popularly known as IR64, but with genes inserted in it to make it flood-tolerant.It was gathered that also among

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some 30 new varieties IRRI developed to help mitigate climate change are rice plants that are salt-tolerant – the
―Salinas‖ – and the ―sahod‘ulan – which can survive prolonged drought situations.
Also programmed: '2-in-1' variety
Meanwhile, the scientists have also programmed for commercial use the so-called ―2-in-1‖ variety, which could
tolerate flooding, but can also be exposed in drought situations. The next stage—developing successfully the
―3-in-1‖ is apparently the crowning glory of this series to defy the challenge of climate change.After Typhoon
Yolanda devastated the Central Philippines, IRRI immediately turned over 13 tons of high-yielding varieties
through the Department of Agriculture program to seed growers and members of the Irrigators Association and
the Seed Bank Cooperatives in Leyte and Samar.
The donation can cover 220 hectares of devastated, but irrigated rice lands, and eventually produce in-bred
seeds that are high in purity in these areas, according to Lapitan.Few may realize it, but IRRI has also been
working closely with the DA and the Philippine Rice Research Institute (Philrice) in helping government attain
its rice self-sufficiency target, according to Dr. Bruce Tolentino, IRRI‘s deputy director general.IRRI promises
technology support to the Philippines to accelerate high-yielding varieties.The Los Baños based organization
has also been collaborating with government in helping provide credit, farm-to-market roads, marketing support
and rice information for agriculture stakeholders in the country. ―(But) perhaps our biggest contribution here is
to provide seeds that are climate-resistant varieties,‖ Lapitan noted.The IRRI scientist believes that the country
is already 98 percent self-sufficient in rice.
Flood-tolerant varieties
According to IRRI, during flooding the rice plant elongates its leaves and stems to escape submergence. Deepwater rice varieties are now able to do this ―rapidly enough to survive.‖There‘s a complication: these highyielding varieties cannot also elongate enough if floods last more than a few days. The rice plants ―expend so
much energy trying unsuccessfully to escape that they are unable to recover,‖ explained the experts.
To deal with this, IRRI plant breeders then discovered that a single gene,
the SUB 1 gene, could resist submergence for up to 14 days. Scientists
isolated the SUB 1A gene, which was derived from an Indian rice
variety, and identified the genetic code that controls submergence
tolerance. The SUB 1A gene activates when the plant is submerged,
making it dormant and conserving energy until the floodwater
recedes.The improved varieties incorporated with the SUB1 gene have
also shown yield advantage of 1-3 tons following flooding of 10-15
days. They have been released under the nomenclatures of Swara Sub1
in India and Samba Mahsuri in Bangladesh. In the Philippines, it‘s now the IR 64 Sub1, which can survive
submergence in water for 14 days if the plant is still in its vegetative stage.

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‗Sahod-ulan‖
The sahod ulan variety, on the other hand was one of drought-tolerant varieties which have been released in
several countries and are now being planted by farmers. These included the Sahbhagi Dhan in India and the
Sookha Dhan varieties in Nepal. The average yield advantage of these drought-tolerant varieties over droughtsusceptible ones is 0.8-1.2 tons per hectare under drought conditions.IRRI scientists actually identified several
key regions of the rice genome—called quantitative trait loci (QTLs)—that give the rice drought tolerance and
improve rice grain yield under such conditions.IRRI is now working towards introducing drought tolerance into
popular high-yielding rice varieties in the IR64, among others. To get a better insight into this complex trait, it
has also begun studying what molecular and physiological processes these drought-tolerant varieties provide.
‘Healthier’ rice
Meanwhile, Lapitan explained that they are confident that despite the
controversy over the ―Golden Rice,‖ they can develop a commercial
variety that can address vitamin A deficiency.The Golden Rice, a
genetically-engineered variety being developed by IRRI in the
Philippines in partnership with Philrice, contains beta carotene, a
source of vitamin A.Despite criticism from some quarters, those
behind the project assure the public that they have subscribed to strict
government bio-safety regulations.Lapitan said that apart from
developing climate-resilient verities, the thrust should be to provide
people with ―healthier‖ rice and educating them to reduce wastage of the grains. ―Our waste is not just on
production, but on consumption,‖ he said.

Curbing smuggling is needed, not changing rice policy, says Agri
official
By ELIZABETH MARCELO, GMA News February 5, 2014 8:36pm

Government must focus on solving the problem of smuggling and not on changing the policy, an Agriculture
official said Wednesday, contrary to the position taken by the Department of Justice on the raging controversy
over the proliferation of smuggled rice.As the controversial issue of rice smuggling rages, Justice Secretary
Leila De Lima on Monday said the Department of Justice is studying ways to regulate the volume of rice
entering the country apart from the imposition of qualitative restrictions (QR) on rice imports."We are also
studying if there are measures that the NFA (National Food Authority) can undertake to regulate rice
importation other than the continued imposition of QR,‖ De Lima said on Feb. 3 when the the Senate committee
on agriculture resumed its investigation into rice smuggling.

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―This is what we are really studying at the moment," she added.However, Agriculture Assistant Secretary and
National Rice Program coordinator Dante Delima said in a text message to GMA News Online there is no need
to tinker with policy at this point in time."I think there is no need to adjust the policy on rice import volume,‖
Delima said.―What we need is to curb rice smuggling, that is where the government needs to focus," the
Agriculture official said. During the hearing early this week, De Lima told the Senate panel one measure the
Justice Department is looking at is to have a stricter accreditation system for private rice importers.Under the
Philippine laws, the NFA is the sole agency that can import rice, mandating public companies that want to go
into business to secure from the NFA import permit.According to NFA records, top private rice importers were
operating without import permits in 2013. Among the companies the NFA identified were Silent Royalty
Marketing, Medaglia De Oro Trading, and Jade Brothers Farm and Livestock Inc.Medaglia De Oro and Jade
Brothers earlier told the NFA that they can import rice without a permit, citing a World Trade Organization
(WTO) agreement that Manila entered into several years ago removing such restriction on private importers.
"As to what will prevail, whether, international law or domestic law... there may be an apparent conflict, but
there is no real conflict if these can be harmonized," De Lima said.To conform with the WTO agreement, the
Agriculture Tariffication Act of 1996 (Republic Act 8178) was passed to remove qualitative restrictions on
imports of all agricultural products – except rice.However, the Agriculture Tariffication Act did not specify
until when the QR on rice imports is in effect. Currently, the Philippines allows a Minimum Access Volume
(MAV) of 350,000 metric tons (MT) of rice imports at 40 percent tariff duty while imports beyond MAV are
levied a 50 percent tariff.
"We believe that while Congress has not passed a law repealing a particular section of the Tariffication Act that
exempts rice from the removal of restrictions, we should follow the law," Agriculture Undersecretary for
Policy Segfredo Serrano said during the same Senate hearing.He said restrictions on rice import volume is
necessary to shield local farmers from the entry of cheaper rice produce from abroad. Last October, India, China
and Indonesia expressed support for the Philippines when it appealed before the WTO Committee on Trade in
Goods to extend the QR on rice imports. European Union, Japan and Korea had also expressed support for the
Philippine petition in previous WTO hearings. However the Philippines needs to convince other countries
involved in WTO negotiations such as Australia, Canada, El Salvador, Pakistan, Thailand, US, and Vietnam to
concur with its petition. Another hearing on the petition is set in March 2014. – VS, GMA News

Cell # 92 321 369 2874

Asian farmers introduced to flood-resistant 'scuba rice'
Updated 6 February 2014, 14:18 AEST
Scientists are promoting the benefits of a rice variety called 'Scuba rice' to help boost the food security of floodprone communities in Asia and the Pacific.As the name suggests, 'Swarna-Sub1' is almost flood-proof, able to
survive under water for up to two weeks.Maria Malabayabas, a scientist from the Philippine-based International
Rice Research Institute, IRRI, in Australia for a conference of agricultural economists, explains the benefits of
the new variety.
Presenter: Sen Lam
Speaker: Maria Malabayabas, scientist, International Rice Research Institute, IRRI
LAM: And I understand that this new variety came about after the 2009 floods in India?
MALABAYABAS: Actually it was already distributed in 2008. In the year 2000 they were starting to breed
this kind of variety, and national release in India was in 2008.
LAM: But after the floods was the strain proven to be good?
MALABAYABAS: Yes most of the farmers who adopted they found that compared to the ordinary variety, the
yield has an advantage, like one-point-three times per hectare, that's the advantage over the normal Swarna.
LAM: So what countries in our region, in the Asia Pacific region do you think are suited for this kind of rice
variety?
MALABAYABAS: Well for Swarna-Sub1 it's widely used in India and some parts of Bangladesh and Nepal.
So these areas usually affected by floods.
LAM: So as far as you know are farmers in India being gradually introduced to this new strain, are they
embracing it?
MALABAYABAS: Yes they are embracing but as a social scientist our worry is that how long they're going to
be using it, because the benefits of using it only are visible when there's submergence or there's flood. Now if
there's no flood, it's just a normal rice variety.
LAM: But are there deterrents about this particular variety that might put farmers off from planting it?
MALABAYABAS: When farmers don't usually see the benefits of it, they just go to another variety and drop
it. So that's our worry, well our … is starting to look at the adoption if they're going to continue using it or not,
because Indian farmers usually use a variety for almost 20 years continuously. So this rice is quite new to them
and there's a risk in shifting from the old to the new variety. They see that it's still the same as the ordinary one,
so a farmer would think why do they need to shift to a new variety, still go back to the usual variety.
LAM: And when you speak about the risk, what exactly do you mean?

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MALABAYABAS: Since they have a small area if they're going to a lot it or put a part of their area to that
variety and the performance is not good, so it's a big risk for them.
LAM: So tell us a bit more about STRASA?
MALABAYABAS: STRASA is a project funded by Bill and Melinda Gates, and one of their programs is to
develop varieties which are stress tolerant, not only for floods, but they're also developed for drought and
salinity, and now they go to heat and cold varieties. And right now they have quite a number of varieties that
have been developed. And as social scientists we are testing it and trying to see the adoption and the impact of
these varieties to farmers.
LAM: And so it's been seven years in the making, how many farmers have STRASA reached do you think?
MALABAYABAS: It's an estimate of around three-million but we don't know the transfers, it's just guestimate
for three million, it might be an under-estimate. So it might be more than that.

Rice Heists: Why the FBI Is Arresting Chinese Agricultural Scientists

LAM: Is there evidence that stress tolerant rice is beginning to feed
more people and allow more countries to achieve food
security? MALABAYABAS: Oh yeah because if they don't use
Swarna-Sub1 for example they're going to lose most of their crop. If
they're going to use Swarna-Sub1 they're going to be getting some
yield out of it even if there's flood in the area. Actually it's like this,
there's a gene, Sub1 gene and then they're going to incorporate it with a
major variety. In the case of India Swarna has been made one of the
popular varieties, so they incorporate it in that variety and call if
Swarna-Sub1 gene. Another example is in Bangladesh, they have this
normal BRRI dhan11 and then they incorporate it into Sub1 genes and
they call it BRRI dhan52. So they're targeting the major rice variety in
each country and putting the genes in it.In the last two months, the
U.S. government has arrested eight scientists for allegedly trying to
steal rare seeds that cost American companies tens of millions of
dollars to develop.On Aug. 7, 2013, a hot, muggy day in Little Rock,
Arkansas, U.S. Customs and Border Control stopped a group of
Chinese nationals as they were boarding a flight back to China and
asked to look inside their luggage.As customs agents began combing
through the bags, they discovered a treasure trove of rice
seeds, according to a federal indictment that was recently unsealed. In
one carry-on, ziplock bags of seeds were tucked into various pockets
and compartments. The seeds had also been hidden inside suitcases—in one case, they were stashed inside a

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paper copy of the Arkansas Democrat Gazette that had been folded into the shape of an envelope.Each of the
baggies and packets containing the seeds had a label of a few English letters. To the untrained eye, it looked like
gibberish. But they were actually coded references to specific and rare strains of rice.Most Americans have
never heard of Stuttgart, a town of 10,000 people that‘s a good 60 miles away from nearest big city.
But for those in the agricultural world, particularly those who study and trade in rice, Stuttgart is quite possibly
the most important place on the planet.The town is often referred to as America‘s Rice and Duck Capital.That‘s
of particular interest to China these days. China produces more rice than any other nation and is almost
synonymous with the crop. But because of a combination of lower output, rising consumption and higher
domestic prices, China over the last couple years has become a net importer of rice. That means it no longer is
roducing enough of the grain to feed its own population. Chinese rice imports will continue to grow by 10
percent this year, according to the International Grains Council.
Chinese farmers are getting desperate to increase the yield on their crops.Iincreasingly, they‘re coming to
America to figure out how to make seeds that grow bigger and better plants—and Stuttgart is a natural stop for
them.The town is home to the Dale Bumpers National Rice Research Center and to Riceland foods, which runs
the world‘s largest rice miller. According to some estimates, 40 percent of the America‘s rice is produced in
Stuttgart.But the Chinese who were stopped at the airport didn‘t just come to Stuttgart for the usual international
exchange visit. About two weeks earlier, they had been escorted through the Dale Bumpers center by their
Chinese American compatriot, Wengui Yan. Yan, who holds a PhD from the University of Arkansas, was Dale
Bumper‘s lead geneticist.The Dale Bumpers research center is a vast building with hundreds of offices, research
laboratories, seed storage facilities and greenhouses. It has a collection of some 18,000 rice cultivars, which are
used to study the quality and productivity of the grain. Yan had access to these buildings, but he did not have
clearance to remove—or distribute—any rice seeds from the facility.As the indictment points out, he ―lacked
authority to distribute those seeds to anyone else.‖ evertheless, according to the U.S. government, Yan passed
them to the members of the visiting delegation.
The Dale Bumpers Center, when contacted for this story, declined to comment, as did the Department of
Justice.Dion Honnell, manager of the Best Western in Stuttgart who was on duty the afternoon that Chinese
delegation checked in, doesn‘t recall the group, but says foreign delegations like those are fairly
common. ―Guests from 16 nations have stayed in the last year because of the Rice Research Center,‖ Honnell
says. ―There are so many foreign nationals that come through that we don‘t keep track of them.‖When
questioned at the airport, the Chinese claimed they were taking the seeds for research purposes. Their seeds
were confiscated but they were allowed to leave the country. That‘s because the delegation was not the FBI‘s
target.Yan was.Nearly four months later, on Dec. 11, 2013, Yan was arrested by the FBI. He is charged with
conspiracy to steal American trade secrets. If convicted, he faces a maximum penalty of 10 years in federal
prison and a fine of up to $250,000.Strangely, this doesn‘t appear to be an isolated incident—there have been
several Chinese nationals in the last few months that have been arrested by the Department of Justice, which
appears to be cracking down on the theft of agricultural trade secrets.Also last December, the FBI arrested
Weiqiang Zhang, a rice geneticist, on similar charges. The FBI alleges that Zhang, an employee of Ventria
Biosciences, a Colorado-based bioscience company that holds more than 100 patents for its rice-breeding
methods, handed that same delegation rice seeds that Ventria claims to have invested $75 million to create.A

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week later, in a separate case, the FBI field office in the southern district of Iowa announced it had arrested six
Chinese nationals who were part of a plot to steal trade secrets from U.S. seed companies.
―The defendants are alleged to have conspired to steal inbred corn seed from Dupont Pioneer, Monsanto and LG
Seeds,‖ the FBI noted in a statement following the arrest. ―After stealing the inbred corn seed, the conspirators
attempted to covertly transfer the inbred corn seed to China. The estimated loss on an inbred line of seed is
approximately five to eight years of research and a minimum of $30 million to $40 million.‖The United States
and China have a notoriously complex and often litigious relationship when it comes to protecting trade secrets.
Typically, American companies are wary about sharing digital or manufacturing assets with the Chinese. Some
American entrepreneurs understand these risks intimately well. McAfee, the security firm,
recently surveyed 1,000 senior IT decision makers and found that half the respondents rated China‘s ―threat
level‖ to their sensitive data in China as ―high.‖ A quarter of the respondents said they wouldn‘t even do
business with China because they felt their digital assets would be compromised.
But the recent arrests put a new spin on theft of intellectual property: It‘s now happening on American soil.
Literally.According to the indictment in the second of the two December arrests, Mo Hailong, who worked as
the director of international business for the Beijing Dabeinong Technology Group Company, was found on his
knees in an Iowan cornfield allegedly stealing propriety corn from Pioneer, a U.S.-based corn
breeder.According to the federal indictment, ―A Pioneer field manager saw Mo on his knees in the same
grower‘s field, which had just been planted within the previous two days, and another Asian male sitting in a
nearby car.‖ After Mo was confronted, he apparently ran into the car and drove off with his accomplice. The
field worker jotted down the rental plate number and Mo was arrested.
AUTHOR: Eric Markowitz
CONTACT: emarkowitz@vocativ.com

For Advertising SPECS & RATES
Contact:
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mujahid.riceplus@gmail.com
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