17th July, 2014 Daily Global Rice E-Newsletter by Riceplus Magazine

Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.
com
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17
th
July , 2014

TOP Contents - Tailored for YOU
Latest News Headlines

UN strengthens regulations on lead in infant formula and
arsenic in rice
Olam To Produce 36,000 Metric Tonnes Of Rice For Nigerian
Market-MD
India's monsoon rain deficit narrows, enters active phase
FAO revises downward estimate for 2014 world paddy
production
World Rice News 07.17.2014
South Korea to scrap rice import caps from start of next year:
reports

News Detail
UN strengthens regulations on lead in infant formula and arsenic in
rice
Source: UN Food and Agriculture Organisation - Wed, 16 Jul 2014 11:00 GMT

Daily Rice E-Newsletter by Rice Plus Magazine www.ricepluss.com

Author: UN Food and Agriculture Organisation
Any views expressed in this article are those of the author and not of Thomson Reuters Foundation.
17 July 2014, Geneva - UN food standards body the Codex Alimentarius Commission this week adopted new
standards to protect consumer health worldwide, including setting out maximum acceptable levels of lead in
infant formula and of arsenic in rice. Jointly run by the UN Food and Agriculture Organization (FAO) and the
World Health Organization (WHO), the Codex Alimentarius Commission sets international food safety and
quality standards to promote safer and more nutritious food for consumers worldwide. Codex standards serve in
many cases as a basis for national legislation, and provide the food safety benchmarks for international food
trade.The annual meeting this week was attended by representatives from 170 countries and the European
Union, as well as 30 international governmental and non-governmental organizations.Lead in infant formulaT.
he Codex Alimentarius Commission adopted a recommendation that no more than 0.01 mg per kg of lead
should be permitted in infant formula as consumed. Infants and young children are particularly vulnerable to the
toxic effects of lead. They can suffer profound and permanent adverse health effects, particularly affecting the
development of the brain and nervous system, which can diminish their ability to learn.Lead occurs in the
environment and trace amounts can end up in the ingredients that are used in the production of infant
formula.Levels of lead in infant formula can be controlled by sourcing raw materials from areas where lead is
less present.Arsenic in riceFor the first time, Codex has adopted a maximum level for arsenic in rice of 0.2
mg/kg.Long-term exposure to arsenic can cause cancer and skin lesions. It has also been associated with
developmental effects, heart disease, diabetes, and damage the nervous system and brain.Arsenic is naturally
present at high levels in the groundwater and soil in some parts of the world.
The toxic element can enter the food chain when it is absorbed by crops from water and soil. Rice in particular
can take up more arsenic than other crops and as a staple food for millions of people can contribute significantly
to arsenic exposure, which is detrimental to human health. Arsenic contamination in rice is of particular concern
in some Asian countries where paddy fields are irrigated with groundwater containing arsenic-rich sediments
pumped from shallow tube wells. Improved irrigation and agricultural practices can help reduce arsenic
contamination, for example growing crops in raised beds instead of flooded fields. The Commission also agreed
to develop a new code of practice that will help countries comply with the maximum level set and provide
producers with good agricultural and manufacturing techniques to prevent and reduce contamination.eterinary
drugs
Codex recommended that the use of certain veterinary drugs should be restricted in food-producing animals in
order to prevent residual amounts of the drugs remaining in meat, milk, eggs or honey. The eight drugs
(chloramphenicol, malachite green, carbadox, furazolidone, nitrofural, chlorpromazine, stilbenes and
olaquinadox), including antimicrobials and growth promoters, can potentially have adverse effects on human
health and may contribute to the development of drug resistance.Other measuresCountries also agreed on
maximum levels of pesticide residues and additives in foods as well as maximum levels of contaminants,
including toxins called fumonisins that are produced by mould growing on maize.


Other measures include new safety and quality standards for foods such as raw scallops, passion fruit, durian
and okra.Future workCountries decided on a range of topics for future development, including establishing
standards for black, white and green pepper, cumin, oregano, thyme and garlic, and setting maximum levels for
cadmium in chocolate and cocoa-derived products.The Commission also discussed the need for a Codex
standard for ready-to-eat foods for malnourished children, on the proposal from UNICEF, to guarantee the
safety and quality of such foods. The Commission decide to follow up on this discussion at its Committee on
Nutrition and Foods for Special Dietary Uses.
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a
comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse
links. Views expressed in the comments do not represent those of the Thomson Reuters Foundation. For more
information see our Acceptable Use Policy.

Olam To Produce 36,000 Metric Tonnes Of Rice For Nigerian Market-MD
ARTICLE | JULY 17, 2014 - 2:55PM | BY AUGUSTINE AMINU
Nigerias dream of becoming self sufficient in rice
production got a boost as Olam integrated Rice mill comes
to full operation in Nasarawa State.Olam's 6,000-hectare
greenfield farm in Nasarawa State was on Monday
commissioned by President Goodluck Jonathan.The Rice
mill is said to be the largest in Africa.
The Managing Director of Olam for Africa and Middle East, Mr. Venkataramani Srivathsan disclosed that the
newly commissioned Olam Nigeria's integrated rice mill would produce additional 36,000 metric tonnes of rice
for the nation's domestic market.In his address at the occasion, Srivathsan noted that the establishment of the
rice mill was part of the company's contribution to the federal government's quest for the actual inaction of self-
sufficiency in rice production, stressing that "This mill, commissioned by President Goodluck Jonathan,
characterizes three important aspects; it demonstrates how large-scale commercial farms can work hand in hand
with smallholders to help advance Nigeria's agricultural transformation agenda, generating rural prosperity
brought local processing.


"It also underlines the country's ability to grow quality, nutritious rice that can enhance domestic food security
by providing an alternative to imports and as Olam's kicks off its global 25th anniversary celebrations this
month, it represents a marker of our ongoing commitment to Nigeria, the country where Olam's was
founded."The target of Olam, he said, is to increase its acreage in Nasarawa up to 10,000 hectares, a move he
added would bring the company's total investment in the integrated farm and milling facility to over
N18billion.While inaugurating the rice mill, President Goodluck Jonathan linked the huge investment in the rice
producing sector to the enabling policy put in place by his administration, stressing that the policy had led to
exponential increment in the number of rice mills from one to 18 over the last three years.Jonathan noted,"The
private se for is responding strongly to our rice policy, as the number of rice mills has grown from just one three
years ago to 18 today. Our goal of making Nigeria a net exporter of rice will be achieved faster by encouraging
large commercial farms that will complement our small-scale farmers.
"Large me banished rice farms like Olam 6,000-hectare farm will not only boost food production, but also
provide significant opportunities for jobs in rural areas. These mills are producing high quality local rice that
meets international standards and competes well with imported rice."Buttressing the President's position, the
Minister of Agriculture, Dr. Akinwumi Adesina, noted that the thrust of the policy of government was to make
Nigeria a net exporter of rice, rather than being importer.According to him, Olam's investment in
commercialized rice far and integrated rice mill would help boost domestic production and milling of
international quality grade rice in Nigeria.He therefore declared that,"This is a clear demonstration that our
approach of taking agriculture as a business, while enabling the private sector to drive growth of the agriculture
sector, is working.
India's monsoon rain deficit narrows, enters active phase

Reuters | New Delhi | Published: Jul 17 2014, 16:05 IST

The deficit in India's monsoon rains is expected to narrow next week as the grain bowl in the country's
northwest, oilseed areas of central parts and cotton belt of the western region are set to get higher


downpours.The monsoon rains were 15 percent below average in the past week, against 41 percent below
average rainfall in the previous week, the weather office data showed.On Thursday, the annual rains covered the
entire country two days later than schedule. Last year, monsoon covered the country almost a month ahead of
schedule, helping grain output hit a record level.Rains are vital to India's farm sector, which accounts for about
14 percent of the country's nearly $2 trillion economy. Two-thirds of its 1.2 billion population live in rural
areas.

The late revival of monsoon after six straight weeks of poor rains should speed up plantings of main summer
crops such as rice, corn, cane, soybean and cotton."This active phase is likely to continue for next ten days,"
said B.P. Yadav, head of the National Weather Forecasting Centre at the India Meteorological Department.Poor
rains since the start of the June-September season had raised concerns that India would face its first drought in
five years with coverage for most of the main crops slipping below their half way marks.The predicted wet run
in monsoon should improve the level of water in reservoirs that is important for drinking purposes, hydro power
generation and irrigation
FAO revises downward estimate for 2014 world paddy production

Petchanet Pratruangkrai

The Nation July 18, 2014 1:00 am
The FOOD and Agriculture Organisation's Rice Market Monitor (RMM) has slightly lowered its forecast for global paddy
production this year from a previous projection, partly because of the slow onset of seasonal rains in Asia.And it warned
that the outlook was dependent on the timing and intensity of the looming El Nino weather phenomenon.The FAO report
forecasts 2014 production of 750.9 million tonnes, or 500.7 tonnes on a milled basis - 120,000 tonnes less than foreseen in
April and just 0.5 per cent above the revised 2013 estimate.Hiroyuki Konuma, FAO assistant director-general and regional
representative for Asia and the Pacific, said that if drought in Asia - particularly in India - became serious, Thailand could
become the world's largest rice exporter instead of India this year.
Konuma said the FAO estimated that Thailand would export about 9 million tonnes of rice this year, 35 per cent higher
than the 6.6 million tonnes in 2013, but would still hold 18.5 million tonnes of stock at the end of this season.India would
likely remain the No 1 rice exporter (10 million tonnes) followed by Thailand (9 million tonnes) and Vietnam (7 million
tonnes) in 2014.The FAO is closely monitoring the drought situation in India.According to the RMM, Asia is anticipated
to garner about 679 million tonnes in 2014, a volume only 0.2 per cent - or 1.1 million tonnes - higher than 2013.
However, much will depend on seasonal rains, especially over the critical month of July."Such meagre growth reflects
expectations of a poor season in India, but also in Indonesia, Nepal, Sri Lanka and Thailand, all of which might face year-
on-year contractions," said the FAO report. "By contrast, Bangladesh, mainland China, Myanmar, Pakistan, the
Philippines and Vietnam are anticipated to see production expand, often underpinned by additional government support.


"The United Nations agency's 2014 production outlook for Thailand points to a 2-per-cent year-on-year drop to 37.5
million tonnes, or 24.8 million tonnes on a milled basis. This is because of the delayed onset of rain and expectations that
farmers will plant less in anticipation of steep reductions in producer prices from those offered under the ousted elected
administration's paddy pledging programme.Global rice utilisation in 2014-15 is set to expand 2.2 per cent to a new high
of 502.3 million tonnes on a milled basis, sustained mainly by demand for food but also for other uses such as seeds, post-
harvest losses and non-food industrial usage. Based on the latest projections of population, the global per-person food-rice
intake will remain stable at around 57.6 kilograms.The FAO has raised its forecast of global trade in rice this year by
about 100,000 tonnes and is now projecting a record 39.4 million tonnes, an outstanding 6-per-cent increase from the
depressed 2013 level.
The 2.3-million-tonne expansion would be underpinned by strong import demand, mainly in Asia, where key markets
such as Bangladesh, Indonesia and the Philippines are stepping up purchases abroad in an attempt to rebuild inventories
and/or quell inflationary pressure.On the export side, Thailand is projected to capture much of the world's import-demand
growth this year, reflecting a return of competitiveness following the suspension of the pledging programme and large
offloads from state warehouses, according to the RMM. Larger shipments from Thailand would partly displace deliveries
by India, which, nonetheless, are envisaged to remain sizeable.
World Rice News 07.17.2014
17.07.2014
Cambodian farmers are looking toward a new organization to help them get the best prices for their rice, but
many are skeptical disparities between farmers and traders can be overcome. Cambodia exported about 380,000
tons of rice in 2014. But economists say it could do a lot better. Poor yields and poor market structures have
traditionally hurt the industry, while neighbors Thailand and Vietnam have become international powerhouses
in rice export. Before the Cambodian Rice Federation was created, 84 companies and three associations were in
operation for the collection, production and export of rice.
***
India's rice exports to the U.S. are expected to increase after the U.S. decided to permit shipments containing
small levels of a chemical residue, senior Indian rice industry official said Tuesday. The U.S. had rejected the
majority of rice shipments from India, the world's top rice exporter, since 2011 because of the presence of the
chemical tricyclazole, a widely used pesticide in India that isn't legal for use in the U.S.
***
Indonesian agriculture ministry forecast the country's rice outputs (hulled rice production) to be surplus by 4.2
million ton this year despite a decline in production of un-hulled rice, a senior official said here on Wednesday.
This is the country's first of its three forecasts of rice production in a year, which expected the production of the
un- hulled rice was estimated at 69.871 million ton in 2014, scaling down from 71.28 million ton in 2013, said
Haryono, acting director general at the ministry. "With the forecast of outputs of 69.871 million ton un-hulled
rice and the number of population 252.165 million people, based on calculation (we) are still surplus of 4.2
million ton," he said at his office.
***


Bangladesh is likely to harvest slightly more rice crop in fiscal 2014-15, the US Department of Agriculture
(USDA) said in its latest report Total rice output may rise 0.60 percent to 3.48 crore tonnes in the current fiscal
year from last year, the agency said.
***
South Korea to scrap rice import caps from start of
next year: reports
BY MEEYOUNG CHO

SEOUL Thu Jul 17, 2014 6:26am EDT
A farmer holds a sickle on a rice field in Gimje, south of Seoul, September 22, 2009.
CREDIT: REUTERS/LEE JAE-WON
(Reuters) - South Korea will on Friday announce plans to scrap caps on rice imports from the start of 2015, instead
managing shipments into the country using a system of steep tariffs, domestic media including the state Yonhap
news agency reported on Thursday.While the possible move is unlikely to spark a short-term surge in rice imports as
hefty tariffs would deter buyers from making overseas purchases, it marks a key psychological shift in a politically
sensitive sector and will anger farmers worried it could pave the way towards lower duty down the line.
The ministries of trade, agriculture and finance will hold a joint
briefing on Friday on the country's rice import policy,
spokesmen for the bodies said, declining to give details.
Yonhap did not cite sources in its report.The shift has long
been expected as a 20-year-old agreement on rice import
quotas with the World Trade Organisation expires at the end of
2014, with the nation under pressure to take bigger steps to
open its markets for the staple grain."This one-sided, sudden
notice without discussing with farmers is the kind of
announcement you would expect in a dictatorship," said Park
Heong-dae, an official from farmers' group the Korean Peasants League."Some managers of our group are setting up
a street strike in front of the government complex to block the (agriculture) minister's announcement tomorrow."The
government has held a series of public consultations on the outlook for its rice policy.
TARIFF RATES NOT FINALISED


The level of any import duty is yet to be finalized, but government officials and industry experts have said it would
likely be around 300-500 percent, bringing prices for imported rice in line with local grain.Under the current WTO
agreement, South Korea must buy 408,700 tonnes of foreign rice this year, or 9 percent of its demand. The amount
that must be purchased abroad has gradually increased from 51,000 tonnes in 1995.China usually accounts for 50-60
percent of total imports, the United States for 20-30 percent and Thailand for 10-20 percent, government data
shows.Of the 159 WTO members, only South Korea and the Philippines have tight controls on rice imports. The
Korean government, farmers and civic groups have been closely monitoring negotiations between Manila and WTO
members on the future of its restrictions.

OPEN DOOR?

Opponents led by left-wing farmer groups have said the tariff would eventually fall via free trade deals, opening the
door to more imports and hitting domestic growers hard."We have many concerns about whether the duty can really
stay at 300-500 percent levels as the government now vows, because the agriculture ministry's roles include not only
stabilising production but also helping provide food at low cost for the country's people," a farmer said at a public
consultation in June.

A free trade agreement between South Korea and the United States took effect in March 15 last year, while Seoul has
been in talks with China on a similar deal and also wants to join the Trans-Pacific Partnership trade pact.Officials at
the agriculture ministry have said, however, that rice would be excluded from any free trade agreements.South Korea
aims to produce 4.15 million tonnes of rice in the crop year that ends in October 2015, down 2 percent from a year
earlier as the number of rice fields shrinks, a government official said in April. Its appetite for the grain is estimate at
4.07 million tonnes during the crop year.

GLUTINOUS

An eventual pick up in imports has the potential to benefit Chinese growers, who produce the glutinous Japonica
variety of rice preferred by South Koreans and found in traditional dishes such as bibimpap.But a source at China's
agriculture ministry has said the country would focus on its own food security and would not increase rice exports to
South Korea even if caps were removed.The United States also exports Japonica, although market participants in
South Korea said Chinese rice is closer in flavor to locally grown grain. According to South Korean customs and
government data, Thai rice in 2013 fetched an average of $566 per tonne on a cost, insurance and freight (CIF) basis
- about a quarter of South Korean rice prices. U.S. rice cost $723 per tonne and Chinese $972, the numbers showed.

Meanwhile, some experts noted that any policy change would come against a background of gradually declining rice
consumption in Asia's fourth-largest economy, as more Western foods creep into diets.Data from the national
statistics office showed the country's per capita rice consumption has dropped nearly a fifth in the last decade."South
Korean eating habits are changing, we are seeing a move away from traditional rice consumption," said David
Charlwood at rice industry publication Live Rice Index in Singapore.(Reporting by Meeyoung Cho; Additional
reporting by Ju-min Park, Christine Kim, Chris Lee in Seoul, Naveen Thukral in Singapore and Niu Shuping in
Beijing; Editing by Joseph Radford)

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