Afp, Rome, The Daily Star, 13 May 2008

Rice production in Asia, Africa and Latin America is forecast to reach a new record level in 2008, but world rice prices could remain high in the short term, the UN Food and Agriculture Organisation (FAO) said Monday.

However the destruction of Myanmar’s food resources by a deadly cyclone could decrease national rice production and impair access to food, according to first FAO estimates.

“World paddy production 2008 could grow by about 2.3 percent, reaching a new record level of 666 million tonnes, according to our preliminary forecasts,” said FAO rice expert Concepcion Calpe.

Production growth could even be higher if recent appeals and incentives to grow more rice lead to expansion, according to the Rice Market Monitor.

But the May 3 cyclone disaster in Myanmar could well worsen the forecast,say FAO officials.

“The cyclone damage could worsen the current global rice production outlook,” said an FAO statement.

“The cyclone struck when paddy farmers were harvesting their dry season crop accounting for 20 percent of annual production.

“Entire rice-growing areas are flooded and many roads and bridges are impassable. Several rice warehouses and stocks were destroyed. Rice prices in Rangoon (Yangon) have already surged by nearly 50 percent.”

“Myanmar may need to turn to neighbouring countries, such as Thailand and Vietnam for rice imports,” the FAO said: “This could lead to further pressure on world prices.”

For the first time, paddy production in Asia could surpass the 600 million tonne benchmark this year, amounting to 605 million tonnes, Calpe was quoted as saying.

“Major gains are expected all across the region,” she said. “Bangladesh, China, the Philippines, Thailand and Vietnam could register the largest gains. Prospects are also buoyant for Indonesia and Sri Lanka, despite some recent flood-incurred losses.”

Assuming normal rains in the coming months, rice production in Africa is forecast to grow by 3.6 percent to 23.2 million tonnes in 2008.

Paddy production in Latin America and the Carribbean was expected to rebound by 7.4 percent to 26.2 million tonnes.

Rice prices have skyrocketed by around 76 percent between last December and April, according to the FAO Rice Price Index.

International rice prices were expected to remain at relatively high levels, as stocks held by exporters are expected to be reduced heavily.

To avoid food scarcities in their own countries, major rice exporters have imposed export bans, taxes or minimum ceilings, the agency noted.

These measures further restricted the availability of supplies on international markets, triggering yet more price rises and tighter supply conditions.

For prices to fall, favourable weather conditions must prevail in coming months and governments relax rice export restrictions, the FAO said.

Even then, rice prices are unlikely to return to the levels of 2007, as producers have to pay much more for their fertilisers, pesticides and fuel.

Nazmul Ahsan, The Daily New Age, 26 May 2008

Rice exporters to European markets are facing utter uncertainty as more than 1500 tonnes of grain, mostly miniket and nazirshail varieties, wait at Chittagong port and different silos for government’s permission for export, following ban imposed to check the soaring price of the staple in the local market.
   Commerce ministry on May 6 imposed a ban on export of rice other than aromatic ones to contain the soaring rice prices caused mainly due to paucity in imports and production shortfall, both here and in rice exporting countries.
   The ban order, however, did not mention anything about the fate of letter of credits already opened and contracts signed before the imposition of the ban, exporters alleged.
   The Chittagong customs house has declined to give clearance against at least 10 consignments of rice readied for export by different companies, including Ma Enterprise, Ira Trade International, Pickers Associates, Sonargaon Export, Sonargaon Trading, Jahanara Linkers and Wadud Traders.
   The total amount of exporting rice by these companies and held by customs department at Chittagong is about 800 tonnes, sources said.
   ‘We cannot allow the rice export due to the ban. We have sought for decision from the commerce ministry in this regard.’ a joint commissioner of Chittagong Customs told New Age on Sunday.
   Exporters expressed their helplessness at the government decision and said they should be allowed to export rice against which money had already been transferred to the local banks.
   The destinations of the non-aromatic rice are Italy and Germany. People of Bangladeshi origin living in European countries are the main customers of local rice, exporters said.
   ‘I export rice and vegetables to European markets and my buyers of vegetables would look for other sources if I fail to export rice, against the L/Cs opened before the ban,’ a frustrated exporter told New Age.
   At least eight exporters have applied to the commerce ministry for allowing their rice to be exported, saying their contract with buyers had been signed much before the government’s ban.
   Exporters informed that Islam Enterprise of Demra signed a contract with Laky Soc of Italy in April, 2008 to export 120 tonnes of rice, Shoronika Enterprise entered into an agreement with Quick Service Import of Italy on March 1, 2008 to export 500 tonnes of rice and Janata Foods signed with a German company on May 1, 2008 to export 250 tonnes of rice.
   ‘All of us are now lobbying so that we are allowed to export,’ a victim of situation told New Age.
   The commerce secretary, Firoz Ahmed, said the ministry would withdraw the ban for the victims after examining their export price which is much lower than the local prices.
   The secretary admitted that he had received complaints from rice exporters who have been blocked with about 1,000 tonnes of rice and affected by the export ban.
   They would be given permission after examining the export prices, Firoz told New Age.
   ‘How can I allow rice export at Tk 40-Tk 42 per kg, which is lower than the local market,’ questioned Firoz.
   Sources, however, informed that more than 90 per cent of the miniket and nazirshal, now stuck on their way to Europe, are quoted between Tk 58 and Tk 61 per kilogram.
   The country exported rice worth above Tk 37 crore during the first eight months of the current fiscal, up from Tk 28.20 crore of the same period of the last fiscal, according to the figures of Export Promotion Bureau.
   The rice export basket includes chinigura, miniket, paijam and nazirshail, EPB officials said.
   Meanwhile, the country during the first eight months of the current fiscal had imported rice worth $600 million, at least ten times higher than the quantity bought during the period a year ago.