China Plans to Import More Rice in 2014 at Prevailing Low Prices

The Chinese government is planning to advantage of the prevailing lower global rice prices by importing more rice at the current lower prices, according to a post on the government website.

Extra imports would help in boosting local rice STOCKS and supplies thereby ensuring food security in the country, according to National Agricultural Officers. The spokesman and Chief Economist at the Ministry of Agriculture also attributed the likely increase in imports to the declining global rice prices. However, he noted that the government would not solely depend on imports to increase rice stocks in the country. He added that imports would complement local rice production.

According to data from China's Customs and General Administration, China imported around 1.65 million tons of rice in the first eight months of 2014, up about 4% from around 1.586 million tons imported during the same period last year. China imported around 72.49 million tons of grains, including rice, in the first ten months of 2014, up about 19% from around 60.92 million tons imported last year. Rice imports constitute around 2.2% of the total grain imports by China.

Global rice export prices in major rice exporting countries such as Thailand, India, and Vietnam have been declining for the last couple of months due to stiff competition and increased supplies from ongoing harvests.

According to data from the UN's Food and Agricultural Organization (FAO), In November 2014, average export prices of Thai 100% broken prices declined about 2.3% m/m to around $427 per ton; Thai 5% broken prices declined about 2.3% m/m to around $418 per ton; Thai parboiled rice prices declined about 2.3% m/m to around $420 per ton; Thai 25% broken prices declined about 2.2% m/m to around $400 per ton and Thai fragrant prices declined about 9% m/m to around $1,062 per ton. Thai A1 Super declined about 2% m/m to around $338 per ton.

Export prices in Vietnam and India declined about 6% m/m and 2.4% m/m to around $379 per ton and $362 per ton respectively.

USDA estimates China to import around 3.9 million tons of rice in MY 2014-15 (July - June), unchanged from last year.

Source : Oryza.com