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
Australia Medium Grain Rice #1 $ N/A    Egypt 101 #2 $760    Egypt 178 #2 Rice $730    EU Prices Baldo €660    EU Prices LG-A Ariete 5% €550    EU Prices MG Lotto 5% €500    EU Prices RG Balilla 5% €500    Russia Rapan $ 700    USA Jupiter Paddy $375    USA Calrose #1 Paddy $480    USA Jupiter Rice $630    USA Calrose #1 $830   

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NERICA variety promoted by the Nigeria Gov
Nigeria’s rice production in MY2006/07 is forecast at 2.8 million tons, up from 2.7 MMT in MY2005/06. The projected increase is based on a combination of improved input supply and favorable weather outlook. Under the Presidential Initiative on Rice, the GON is promoting the adoption of the New Rice for Africa (NERICA) variety developed by the West African Rice Development Institute in Ivory Coast. The variety is resistant to the African Rice Gaul Midge disease and it is high yielding. A key element of the initiative is the GON’s subsidy on basic farm inputs, especially improved rice varieties.

Nigeria is a growth market for parboiled rice. Despite efforts by the GON to achieve in self-sufficiency in rice production, import demand continues to increase. Rice is a regular item in the Nigeria diet, largely because of the convenience and the variety of ways it can be prepared. Consumers view rice as a relatively low-cost food alternative to traditional foods, such as yams and cassava. This situation is not likely to change this year despite the higher levy on rice due to markedly higher prices for substitutes such as cassava and yam.

Post forecasts Nigeria’s rice imports in MY2006 at 1.6 million tons, up from the revised MY2005 estimate of 1.5 million tons. The projected increase is due to limited supply of locally produced rice and other alternatives such as yams and beans. Although the local press continues to report that the GON will ban rice imports in 2006, Post believes that it is unlikely because of the domestic supply shortfall.

In November 2005, the GON announced a new tariff structure in line with the harmonized ECOWAS Common External Tariffs. The tariff on rice was reduced from 110% to 50%. However, the GON introduced an additional “special tariff” of 50% on rice. This brings the effective total tariff to 100%. The GON indicated that additional tariff was imposed to encourage local production of rice.

High duties create the incentive for tariff avoidance and smuggling. For instance, because rice imports to Benin Republic attract only 35 percent duty (about $200 per ton price advantage over imports through Nigerian ports), Nigerian importers simply land their imports in Benin and then smuggle them into the country. Some importers ship to Cotonou port (Benin) and declare them as transit goods destined to the land-locked countries of Niger and Chad. Transit goods attract only five percent duty in Benin. The rice is subsequently smuggled into Nigeria.

Trade sources estimate that approximately 300,000 tons of rice is smuggled into Nigeria annually. Nigeria is the only market for parboiled rice in the West African sub-region; neighboring countries are markets for regular milled white rice.

Currently, U.S. milled parboiled rice can compete for a share of the top niche segment of the Nigerian market. U.S. rice exporters are encouraged to collaborate with leading Nigerian importers to boost sales of their products. Promotional activities should target the growing middle to high-income consumers. These segments of the market are willing and able to pay for premium quality U.S. rice. Given appropriate marketing support, this market segment can increase commercial import purchases from the U.S. to 100,000 tons annually, up from 12,000 tons in MY2004/05.

At present, only two Nigerian rice importers have licenses to import brown rice at a reduced duty rate of 20 percent. Three other applications are pending. Under the terms of the license, the companies are allowed to import 100,000 tons of brown rice each over a period of one year. The licenses are renewable. Under Nigeria’s current investment code, investors may be granted special concession to import brown/paddy rice as a "raw material" at a reduced duty. The GON favors local value addition to imports of milled rice. All imports of brown rice are from Southeast Asia but importers have indicated interest in looking to the United States to secure their supplies.
MGR Archive 7.5.2006
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Region Type Price  
Russia Rapan $ 700
USA Jupiter Rice $630
USA Calrose #1 $830
USA Calrose #1 Paddy $480
EU Prices Baldo €660
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