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Jagat Agro

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802, 8th Floor, Ambadeep Building, 14  K. G. Marg Connaught Place, New Delhi - 110001

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We will be happy to supply you rice as per your requirement. Ask us for a quote when you want to buy next. 

RICE NEWS YOU CAN USE

Issue 63 - 29 Jul 2009

In an attempt to deal with the deficient rainfall in the country, the Food and Agriculture Minister Sharad Pawar has announced an immediate ban on exports of non-Basmati rice and wheat while offering subsidy on diesel to farmers. He ruled out the possibility of any shortage of food grains for the next 13 months. Elaborating the measures, Mr Pawar said exports of non-Basmati rice and wheat that was allowed through diplomatic channel would be completely banned.

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Miscellaneous Rice News

India: Poor Monsoon Shrinks Paddy Acreage - Delayed monsoon rains in parts of Northern India have affected the overall paddy sowing across the country with the area under the crop declining by almost 21 % to 114.63 lakh hectare till against 145.21 lakh hectare in the year-ago period.

According to the weekly crop weather data released by the Indian Agriculture Ministry, Cotton, arhar (pigeon peas), urad (black matpe), sunflowers are the only crops that have seen an increase in the sowing area.

According to a June 24 forecast by the Indian Meteorological Department, rainfall during June-September is likely to be below normal. Rainfall for India as a whole is likely to be 93% of the long period average, it said.

Indian Farmers Turn To Basmati Amid Water Issues - Lesser monsoon rains have made local farmers in Punjab and Haryana to focus on premium Basmati cultivation and an increase in acreage in the key producing states indicates higher output and export of the aromatic long grain this year.

According to members of the India Rice Exporters Association, fewer rains in the last month have not impacted, but benefited sowing of basmati rice in Punjab, Haryana and some parts in Uttar Pradesh because the premium variety requires lesser water.

India had produced about 3 million MT of premium basmati rice in 2007-08, of which, 2 million MT were exported, according to industry estimates.

FAO Predicts Reduction In India's Paddy Output - According to the latest estimate by the United Nations Food and Agriculture Organization (FAO), India’s rice output is likely to decline by a marginal 2.55 % this year on delayed monsoon and uncertainty over follow-up rain in the agriculturally crucial month of July.

Currently, sowing of kharif coarse grains and paddy for harvest in September is underway in the country. The early outlook for kharif crops is unfavorable because of the delayed southwest monsoon in some major producing regions. By July 2, the all-India cumulative rainfall was 46 per cent below average. However, the final outcome would depend greatly on the development of the monsoon rain in July and August, the report said.

The forecast has meanwhile envisaged a total cereal output at 260.6 MT this year as against 265.4 MT in the previous year.

Pakistan Rice Exports Touch $2.044 billion Mark - According to data released by the Rice Exporters Association of Pakistan (Reap), Pakistan has exported a total of 2,930,061 MT rice worth $2,044,525,931 in the fiscal year 2008-09 (FY09).

Out of the total, as many as 924,358 MT basmati rice worth $1,018,780,261 while 2,005,703 MT of non-basmati rice worth $1,025,745,670 were exported in this period.

                               Details of Rice Exported

           Through Kandla Port during May 2008 & 2009

Basmati

Srl No. Destination Qty(MT) Value(In Lakhs)

May 2008
1.       S. ARABIA    79413      41390.01
2.       KUWAIT       11022       5824.70
TOTAL                  90435      47214.71

May 2009
1.      S. ARABIA      35737     19960.70
2.      UAE              25839     14292.43
3.      IRAN               8623      4786.14
TOTAL                   70199     39039.27

Non Basmati

Srl No. Destination Qty(MT) Value(In Lakhs)

May 2008
1.     S. ARABIA          880       370.93
2.     SOMALIA          5709     1308.09
3.     KUWAIT           1062       529.66
TOTAL                    7651      2208.68

May 2009 - No Exports from India
 

Prices & Analysis 

Prices are now stable, in spite of poor Monsoons in June/July. It did rain in some parts of North India during end July but was not adequate. However Bumper Crop of Basmati etc expected because of late monsoon. The Farmers who could not plant Non Basmati because of lack of water will now opt for Basmati/Pusa/1121 Paddy. As per survey undertaken Pusa crop expected to be 40% less than last year and 1121 expected to be 60% more than last year.

Prices (All prices in USD). 

Export Prices CNF Gulf Countries. In USD PMT, all prices tentative in 45/50 kg new jute bags (Sortexed)(+-) Diff in Sea Freight.   PRICES ARE EXCLUSIVE OF EXPORT DUTY IF APPLICABLE

Crop                                 Year->

2007-08

2008-09 

Basmati

Raw Basmati 

NA

1675

Parboiled Basmati 

NA

1470

Raw Pusa  

NA

950

Pusa Parboiled 

NA

930

Pusa Steam

NA

990

Rice 1121 Steam

NA

1885

Rice 1121 Parboiled

NA

1660

Non Basmati

Sharbati Raw

NA

635

Sharbati Steam

NA

665

Sharbati Parboiled

NA

655

PR 106 Parboiled broken 5% 2/3 basis 

NA

425

PR 11 Steam

NA

615

Rice 11 Parboiled

NA

575

Rice 11 Raw

NA

530

 

Trade Reporting 

Saudi Buyers are still refraining from buying. in fact in May 2009 export to Saudi was less than 50% compared to the same period last year which has been covered up by export to UAE for onward shipment to Iran/Iraq. Large quantities of Sella 1121 purchased by Iranian Buyers at $ 1450/- to Rs 1475/-. However because of the high prices only blended material is now being contracted.

Recomendations 

Buyers who have not covered 2008-09 crop should now cover as stocks now depleting.

Disclaimer

Though analysis & recommendations contained herein are unbiased & sincere views expressed by Jagat News Team, buyers are advised to use their personal experience, wisdom and discretion for making purchase decisions.


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