Developing Countries Will Lead Global Rice Import Growth in 2013-22, Says USDA Rice growers positive California MG prices are UP Russia MG Harvest coming to end Egypt open rice exports Vietnam’s rice export in tough competition with India Thai rice exports in May Rise Above Target This Year Viet-Nam Rice exports likely to fall this year
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Rice production in Peru down 10 percent
Rice in Peru is surface irrigated and depends on the supply of water draining from rivers in the Andes Mountains. Most of the rice in Peru is harvested April through July. Harvested area for MY 2006 is estimated at 360,000 hectares.

Rice in Peru is surface irrigated and depends on the supply of water draining from rivers in the Andes Mountains. Most of the rice in Peru is harvested April through July. Harvested area for MY 2006 is estimated at 360,000 hectares.

Average yields in CY 2005 was 6.9 MT of paddy rice per hectare, but some farmers have yields as high as 14 metric tons per hectare. Since most of the production is carried out by small producers, rice quality and yields vary greatly depending on input levels which in turn depend on prices and economic conditions.

The International Development Bank has an ongoing project in the San Martin Region to promote a rice intensification system (SRI). The SRI consists in giving the plant more space to develop and obtain its nutrients, thus instead of planting each 25 cm, the SRI proposes to plant each 40 cm; and instead of planting five seeds it proposes to plant one or two. This project, which started a year ago, has already increased yields from 8 to 10 MT per hectare. There are about a thousand hectares under this system currently; its goal is to raise yields to an average of 14 MT per hectare.

Per capita rice consumption is estimated at about 52 kilograms. Rice is sold traditionally in small markets, weighed out and bagged from 50 kilos sacks. In recent years, with the expansion of supermarket chains in Peru, several consumer habits, including the purchase of rice, has changed. There is a growing demand for prepackaged one-kilogram bags of rice, and recently in ¾ kilogram bags, which now total 20 percent of all rice sales. Higher quality rice, including U.S. rice, is generally marketed in this way.

Peru imported 125,233 MT of rice in CY 2005, a significant increase from the 52,217 MT imported the previous year. This import increase was the result of less rice production due to the lack of rain. Uruguay continued to be the leading exporter to the Peruvian market with 86,934 MT. Rice exports from the U.S. increased by a ten fold to 31,721 MT. The largest rice importer, who owns the leading brand for bagged rice, has a long-term relationship with a Uruguayan rice exporter who not only provides good quality rice at a competitive price, but also grants them credit. Since the GOP implemented a ban on Asian rice based on phytosanitary issues, the imported rice market has been shared by the U.S. and Uruguay.

Some Peruvian importers are interested in purchasing paddy rice from the U.S., which is currently banned for SPS reasons by SENASA (the Peruvian SPS authority). Peru has banned paddy rice for many years on the ground that the hulls could transmit pests that are not present in Peru. Khapra Beetle is the principal pest of concern to Peru. This is more likely to occur if the paddy rice is sold as seed rather than milled, but Peru claims it cannot control to lift this ban. Currently a pest risk assessment is being done which will hopefully result in elimination of the ban and additional sales of U.S. rice.

The U.S. has been granted a duty free tariff rate quota of 72,000 MT for rice under the TPA. Since Uruguay will not receive the same level of tariff preference for rice under the Peru-MERCOSUR trade agreement, this could be an opportunity for U.S. rice exporters to recover its market share in Peru.

Under the Agreement with MERCOSUR, Peru will grant Uruguay the following tariff preferences for rice:

10 percent until December 31, 2008.
11 percent until December 31, 2009.
22 percent until December 31, 2010.
33 percent until December 31, 2011.
44 percent until December 31, 2012.
55 percent until December 31, 2013.
66 percent until December 31, 2014.
77 percent until December 31, 2015.
88 percent until December 31, 2016.
100 as of January 1, 2017.

Rice imports are assessed 25 percent import duty on CIF plus a variable levy applied under the Peruvian Price Band System. The Price Band System is an import tax, that depends on international prices, which assures that the import price of specific commodities, after payment of the levy, will equal a predetermined minimum import price. This tax, which is imposed on certain "sensitive" products, is expressed in dollars per metric ton. The current levy for milled rice is $5 per MT. Under the TPA the Price Band System is eliminated for products from the United States. It will remain in place for products from other countries, including MERCOSUR.
MGR Archive 10.3.2006
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Russia Rapan $ 700
USA Jupiter Rice $630
USA Calrose #1 $830
USA Calrose #1 Paddy $480
EU Prices Baldo €660
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