China's net import volume of rice soars in 2012

China usually played as a net exporter of rice before 2011. However, the export volume of rice has witnessed a continuous decrease, while the import volume has witnessed a continuous increase in recent two years. According to data from China Customs, in 2011, China became a net importer of rice and its net import volume of rice soars sharply this year. China's import volume of rice hit 1.89 million tonnes in the first nine months of 2012, up 275.7% over the same period of last year, while the export volume of rice was only 237,000 tonnes, down 23.5% year on year. The net import volume of rice hit 1.65 million tonnes in the first nine months this year, even much higher than the total import volume of rice in the whole year of 2011, according to CCM’s November issue of AgriChina Investor.

 

China's total rice import volume in 2012 is estimated to hit 2.4 million tonnes to 2.5 million tonnes. Besides, the smuggling of rice is very common this year. Insiders revealed that China's actual import volume of rice may be much higher than the data from China Customs.

 

China's imported rice is mainly from Vietnam and Pakistan. According to data from the Ministry of Commerce of People's Republic of China, Vietnam exported 5.90 million tonnes of rice in the first ten months this year, exceeding Thailand for the first time and becoming the largest rice exporter in the world. Among the total, much was exported to China.

 

Although China's rice import volume increases greatly this year, it still accounts for a very small share in the total rice consumed in China. However, the price of imported rice is much lower, which shocked the rice price in domestic market.

 

"Imported rice is easily available in the domestic market at present. The price of imported rice is USD545.7/t to USD577.8/t, while that of home-produced rice is USD609.9/t to USD706.3/t. Imported rice has brought huge impact to the rice price in China," revealed by a rice trader in Jiangxi Province.

 

The purchase price of rice this year is also impacted by the low price of imported rice. For example, the purchase price of middle and late indica rice (before milling) is about USD425.4/t. Some farmers revealed that the purchase price is about the same as that of last year. However, the production costs, covering pesticides, seed, labour, etc., all witnessed increase this year.

 

"China does not advocate exporting or importing a large amount of rice. The sharp increase in rice import volume may impact farmers' enthusiasm for rice planting, to which the government should pay attention," according to Li Guoxiang, a researcher from the Rural Development Institute, Chinese Academy of Social Sciences.

Source: AgriChina Investor 1211

http://www.cnchemicals.com/Newsletter/NewsletterDetail_192.html

Content of AgriChina Investor 1211:

China's net import volume of rice soars in 2012

China to vigorously promote biological crop protection technology

Ukraine allowed to export corn to China

John Deere launches its fourth agricultural machinery factory in China

Huaying Agricultural sees first quarterly loss in Q3 2012

Greentown China enters modern agriculture formally

Guangdong Sky Dragon invests one-million Rongchang pig farm in Chongqing

China's edible fungi industry develops quickly in past decade

Cotton planting in Xinjiang supported by harvesting machinery

Q3 financial reports of domestic listed pesticide enterprises

Sugar: market price downtrend to continue in 2012/2013

Opportunities in domestic potato processing industry

2003-2012: Central Government allocates USD963 billion to Three Agriculture Issues

China's pesticide output up 20% in Jan.-Sept. 2012

Zhengzhou Hualiang and CCB set up cooperation

Hainan starts tropical plant base project

CMBC offers USD802.5 million of loan to tea enterprises

China's import volume of soybean and edible oil increases fast

Luoyang Zhengda launches 1.5 million pigs per year slaughtering line

……

AgriChina Investor, periodically published on 31^th every month, offers timely update and close follow up of agriculture investment in China, analyzing market data and trends, as well as related policies. Major columns include investment environment, investment dynamics, market watcher, market review etc.

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