Lock & down?

The story over the past month has of course been how the Covid-19 pandemic is influencing rice markets, mostly on the consumer side.

From IRRI, an article by Valera, H.G.A., J. Balié, and V.O. Pede which seeks to look at the wider implications:

'The impact of the COVID-19 crisis on rice-based agri-food systems is expected to be much more serious and deeper than the 2008-2009 GFC. Containment efforts to address the pandemic have already severely disrupted farm supplies such as seed, fertilizer, and other agro-inputs. The lockdowns imposed in countries heavily impacted by the COVID-19 pandemic have also created important labor shortage and migration within countries (e.g. India). This could result in a higher rural wage rate if limited labor availability continues.
The lockdowns are also changing the behavior of consumers. They have been stockpiling food and other essential items. Consumers have also tended to change their spending expectations, anticipating a much longer negative financial impact of the crisis. According to a recently published McKinsey & Company article, the outlook of consumer spending is gloomy for most European countries, while for countries like Brazil and Japan the spending propensity would be impacted less.
We argue that the COVID-19 pandemic could also impact food access, and more particularly rice demand, for three main reasons. First, the traditional distribution (retail, restaurants, and food stores) and logistic (ground, air and maritime transportation, as well as processing) channels have been disrupted. Second, employment has declined and incomes have been suppressed, especially for wage earners. Third, food prices have already been negatively impacted in many countries. The price of rice has increased in many Southeast sian countries between early March and mid-April 2020 as reported by Reuters.
The combined effect of these forces could lead to a shift in rice demand. As the income of families will decline substantially, households will spend less on relatively more expensive food items like meat, milk, vegetables, and fruits. Hence, in most Asian countries where rice consumption per capita is already high, we could see both a moderate increase in rice consumption per capita and an overall increase in rice consumption due to the fact that more people will have fallen below the poverty line. For them, the only affordable food is likely to be rice. However, these poor consumers are already negatively affected by the price spikes for rice, which further compounds their purchasing power (see real price levels in Figure 3). These two mechanisms (contraction of incomes and higher rice prices) have the potential to worsen the food insecurity situation of the most vulnerable and poorest segments of the population'. 

So what I read is that consumption might inch up, though most probably for lower grade rice, but as the past has revealed, if an exporter decides to cut back for domestic policies, then anything can happen.
More in-depth. The Diplomat (May 7):

'Much of the reason for rice’s stellar and almost unique performance in the commodities space is attributable to governments’ coronavirus lockdown measures across Asia. This resulted in most of the world’s largest rice net exporters, namely India, China, and Vietnam, as well as major up-and-coming net exporters like Cambodia and Myanmar, freezing their overseas shipments to ensure sufficient stocks of rice for domestic consumption. Thailand stands out as the one significant rice exporting country continuing to supply the region’s heightened rice-consumption needs throughout the pandemic.
...
China’s surging demand for rice at the beginning of the year was arguably the principal driver in boosting global prices for the agricultural commodity. In the first quarter of 2020, according to China’s Customs Statistics, the value of rice imports rose by 60.3 percent while the value of overall agricultural imports increased by 17.4 percent for the period.
...
Vietnam, currently the world’s fourth largest rice exporter, behind India, Thailand, and the United States, managed $1.4 billion in exports, last year, which accounted for roughly 5 percent of international rice exports. Even so, Vietnam restricted export volumes for April and May to ensure ample reserves for domestic use. For the sake of maintaining cooperative relations with neighboring countries and within the Association for Southeast Asian Nations (ASEAN) framework, Vietnam’s government has been conducting bilateral negotiations with the region’s net rice importers to secure special government-supply agreements.
According to Vietnam’s deputy minister for agriculture and development, the Philippines, which imports 90 percent of its rice from the country, will be one of the first to be informed of the exception to this temporary restriction as Manila awaits delivery of about 1.2 million metric tonnes of rice. Other regional net exporters that have imposed such export restrictions, including Myanmar and Cambodia as top-ten global rice exporters, are similarly negotiating such agreements with the region’s net importers.
Thailand, the world’s second largest rice exporter, on the other hand, remains open for new business as its regional competitors close down international rice sales. The Thai government announced that sufficient rice was cultivated to meet its annual export target, normally around 10 million tonnes yearly, on top of its domestic consumption of a similar quantity, even in the face of a debilitating drought that’s lasted since November last year. The price of Thai white rice 5 percent broken, which is an Asian export benchmark, has risen over 25 percent this year, even reaching a seven-year high, as India and other exporters imposed export controls. At the beginning of the year, Thailand’s rice export prospects were relatively gloomy, but a complete about-turn materialized when the coronavirus outbreak arose'.

FAO rice price update for May 2020 sort of agrees. More sales at higher prices:

'The FAO All Rice Price Index (2002-2004=100) increased by 15.9 points (7 percent) in April 2020 to reach 248.2 points, it’s highest level since December 2011.
...
Asian markets were still reeling from the impact of sudden surges in domestic demand spurred by concerns over the COVID-19 pandemic, when the late March suspension of new export contracts in Viet Nam was followed by news of Cambodia prohibiting Indica and paddy exports and of Myanmar temporarily halting the issuance of new export licenses. Logistical constraints linked to quarantine measures, particularly in India, compounded on the uncertain export policy environment, driving prices up across most Asian origins and qualities. Asian quotations began receding only mid-way through April, when Viet Nam instated an export quota, successively expanding it and ultimately deciding to repeal all export restrictions as of 1 May, and when Indian exports regained momentum as bottlenecks began to clear'. 

Agreed
Back to some of the related action. The Bangkok Post (Apr. 23) reports on domestic actions:

'Packaged rice manufacturers and distributors yesterday agreed to cut their prices by as much as 50%, as requested by the Commerce Ministry'.

But the threat of a sellers market, seems to have ebbed away. The Phnom Penh Post (Apr. 30) on Vietnam:

'Vietnamese Prime Minister Nguyen Xuan Phuc on Tuesday agreed with the Ministry of Industry and Trade’s (MoIT’s) proposal to resume rice export from May 1, in accordance with Decree 107/2018/ND-CP on rice export business'.

Two weeks later, Cambodia follows suit. The Phnom Penh Post (May 13):

'The government has decided to allow the rice industry to resume exports of white rice to global markets after a ban was issued in March.
The lifting of the ban comes as the Philippines seeks to import an additional 300,000 tonnes of milled rice from major producers in Southeast Asia.
The decision is in response to a request by the Cambodia Rice Federation (CRF) to gradually resume white rice exports from May 20, said a letter sent from the Ministry of Economy and Finance to the CRF on Wednesday and signed by Minister Aun Pornmoniroth.
In March, Prime Minister Hun Sen ordered a temporary suspension of white rice and paddy exports to ensure adequate domestic supply, food security and price stability in the Kingdom during the Covid-19 pandemic'.

So are we now back where we started?

Edge

Meanwhile the non-Covid related news on rice and Cambodia.

Phnom Penh Post (May 3) notes how the rice related statistics are on the up:

'Cambodia exported 300,252 tonnes of rice to the international market in the first four months of this year – equivalent to $210 million – the highest export volume in the past decade, the Cambodia Rice Federation (CRF) said in a report.
The export volume is 40.46 per cent over the 213,763 tonnes reported in the same period last year, it said.
China accounted for 41 per cent of exports or 122,094 tonnes, the EU and the UK 32 per cent or 97,337 tonnes, ASEAN countries 13 per cent or 37,428 tonnes and other countries 14 per cent or 43,339 tonnes.
CRF secretary-general Lun Yeng told The Post on Sunday that rice exports have reached 48.41 per cent of last year’s total exports. The spread of Covid-19 has led to a higher demand for food and storage in all countries, he said'.

Reports galore, hopefully not all following concern the same. The Phnom Penh Post (May 12):

'The government and the private sector are jointly studying the feasibility of lowering paddy production costs and refining milled rice export plans to increase the competitiveness of Cambodia’s market.
Ministry of Commerce secretary of state Sok Sopheak on Monday said ongoing discussions are aimed at identifying the challenges and giving the Kingdom’s rice sector a competitive edge'.

The Khmer Times (May 13) runs an article

'The Ministry of Commerce and development partner – CAVAC (Cambodia Agriculture Value Chain Programme) – have reviewed a study on rice export cost, aiming to enhance the competitiveness of Cambodia’s rice export'.

But not yet published. 

Oh yes, same source, same day even, but different article:

'The Ministry of Commerce and Cambodia Rice Federation (CRF) are continuing working to solve the long-running challenges of the Kingdom’s high cost of electricity and transportation in order to boost the country’s rice industry.
...
The Ministry said that the main challenges for Cambodia rice exports include the high cost of electricity, the high cost of transportation, fee costs at ports and the cost of shipping from ports to the destinations'.

Pity to have spent money researching this. It's been this case like since always.

Strict

Cassave remains on the up. The Phnom Penh Post (Apr. 29):

'Cambodia exported 1,115,365 tonnes of cassava to the international market in the first three months of this year, inching up around 1.6 per cent from 1,097,803 in the year-ago period, said a report from the Ministry of Agriculture, Forestry and Fisheries'.

 Khmer Times (May 7) on cashew:

'Cambodia exported 186,205 tonnes of cashew nut to foreign markets in the first four months of this year, according to a report from the Ministry of Agriculture, Forestry and Fisheries'.

Rubber acts as expected, a downwards spiral. The Phnom Penh Post (April 16):

'Rubber exports in the first three months of this year declined sharply as a result of tightened measures at border checkpoints to prevent the outbreak of the Covid-19 disease, plantation owners and exporters have said.
Long Sreng International Co Ltd general manager Heng Sreng told The Post on Monday that his company exported a very small amount of rubber in the first three months of the year due to restrictions on the Cambodian border with Vietnam.
Long Sreng International owns the Boeung Ket Rubber Plantation in Stung Trang district’s Prek Kak commune in Kampong Cham province.
Over the past three months, the company has exported 50 tonnes of rubber to the international market, down from the year-ago figures of between 250 and 300 tonnes, he said'.

Novelty. The Khmer Times (May 7):

'A local investor has created a large-scale dragon farm community in Preah Vihear province in response to local and export demand.
Cambodian agronomist Yang Siang Koma and local partners are planning to grow 1 million dragon fruit trees covering 1,000 hectares of land in Sambor Neak community.
“We expect ultimately to create 3,000 to 10,000 jobs for residents,” he said, adding that the fruit has great potential in the market, noting that Vietnam exported $1 billion of the fruit to international markets last year'.

Not all fruits are on the up. The Khmer Times (May 1) reports on difficulties  with exporting mango, though not really naming what the problem is:

'Mong Reththy Group (MRG), the largest local agribusiness company, and Korean mango exporter Hyundai Agro are discussing ways to seek a solution for mango exports.
Chang-Hoon Lee, managing director of Hyundai Agro, told Khmer Times yesterday that both sides have discussed the current situation of the local mango market.
“We agreed to exchange skills, techniques and know- how to each other. We [Hyundai] will support MRG to follow the guidelines to meet South Korea’s regulations because the Korea market is very strict with chemicals and records, plus worm and disease control when it comes to such fruit exports,” he said'.

Pepper received quite some newsprint. Phnom Penh Post (May 11):

'April marked 10 years since Kampot pepper became the first product to receive Geographical Indication (GI) status by the Ministry of Commerce.
Due to its high price and market favour resulting from its GI label, local farmers and investors are engaged in cultivating pepper in provinces across the Kingdom.
But market demand is very uncertain as the price of pepper not from Kampot or Kep, the two provinces recognised as legitimate areas to grow Kampot pepper, has plummeted, frustrating farmers.
Data from the Kampot Pepper Promotion Association (KPPA) shows that membership has increased to 455 families from 118 in 2010.
The number of wooden stakes, which farmers anchor into the ground for the pepper plants to grow around, used by its members has increased from 27,012 in 2010 to 727,317 this year.
Land designated for Kampot pepper cultivation has increased from 1ha in 2010 to 251ha today – exclusively in Kampot and Kep – and more than 100 tonnes of the prized pepper was produced last year.
The data also indicated that prices have increased significantly. Black pepper cost $5.75 per kg in 2010, while red pepper was priced at $10 per kg and white pepper cost $12 per kg.
The prices currently stand at $15 per kg for black pepper, $25 per kg for red pepper and $28 per kg for white pepper'.

Trust

Then that final paragraph in which we pull all that unrelated together. But maybe not so today.

First some Khmer related news. The Khmer Times (Apr. 28) notes that the government sees some interest in the organic growing sides of things:

'The government has announced it will launch rules and a special logo to certify food is organic.
...
Chan Pich, general manager of Signature of Asia, welcomed the move. He said currently only the private sector certifies organic standards for agricultural products in Cambodia. However, having a national organic standard is good because Cambodia wants to work within ASEAN organic standards, to have a proper logo for local products and have proper guidelines to build trust among producers and consumers'.

That said, the Phnom Penh Post (May 5) states that the kingdom is importing more and more of the non-organic:

'Cambodia imported more than 1.2 million tonnes of agricultural fertilisers and chemical pesticides in 2019, up more than nine per cent from 1.1 million tonnes in 2018, said a report from the Ministry of Agriculture, Forestry and Fisheries.
Of that, more than 1.14 million tonnes were fertilisers and 81,097 tonnes were chemical pesticides, it said.
The Kingdom imports more than 90,000 tonnes per month of about 2,600 types of fertilisers and pesticides to serve the agricultural sector'.

Then bringing into mind that we are a blog on hybrid rice and all it entails. The past we have had the opportunity to target Monsanto and it's new parent company Bayer. Responsibletechnology (Apr. 29) foresees doom:

'For Bayer’s Annual General Meeting yesterday, Monsanto investigator Jeffrey Smith predicted that Bayer will face possible bankruptcy from a new wave of lawsuits linking Roundup herbicide to numerous diseases, and that the current expected payout of up to $12 billion to more than 50,000 plaintiffs with Non-Hodgkin’s lymphoma (NHL) is only the beginning'. 

In line

Starting off with news on Thai struggles with noxious agro-chemicals. 
The Bangkok Post (Oct. 3) to the kick-off:

'Rifts within the Agriculture and Cooperatives Ministry over a proposed ban on three toxic farm herbicides are deepening amid claims the minister urged his staff to restrict the use of paraquat, glyphosate and chlorpyrifos, instead of banning them completely'.

So no ban, but restrictions. The pressure on the Ag Ministry though continues. The Bangkok Post (Oct. 7):

'Representatives of the government, farmers and consumers have unanimously voted to ban the use of three toxic farming chemicals in December in a decision that could end the months-long controversial issue.
Deputy Agriculture and Agricultural Cooperatives Minister Mananya Thaiset said on Monday the working group comprising the three groups voted 9-0 in favour of the ban on three chemicals — paraquat, glyphosate and chlorpyrifos — starting Dec 1 at a meeting at the ministry.
From that date, it will be illegal to have, sell, import or produce the substances'.

Bangkok Post (Oct. 12) notes more pressure:

'Ministers attached to the Bhumjaithai Party will quit their jobs if they fail to convince the authorities to ban three pesticides that have been used for farming despite their high toxicity, party leader and Deputy Prime Minister Anutin Charnvirakul said on Saturday.
Mr Anutin, who is also Public Health Minister, said that he and his colleague, Deputy Agriculture Minister Mananya Thaiset, are ready to show their spirit by tendering their resignations if the proposed ban is shot down by the National Hazardous Substances Committee (NHSC).
“We need to go because the failure means we have no power to rule,” Mr Anutin said.
Mr Anutin and Ms Mananya have spearheaded the campaign to ban the use of paraquat, glyphosate and chlorpyrifos, which are harmful to the environment and health'.

Meanwhile over in Laos, concern on pesticides has also been voiced, though the approach seems different.  The Vientiane Times (Oct. 17):

'The Ministry of Agriculture and Forestry has issued a new regulation that enables authorities to check the quality and safety of pesticides before they are used on crops in Laos.

...

The minister’s decision to issue the pesticide regulation came amid growing concerns over the safety level of pesticides, which are imported for use in agriculture. 
In the middle of this year, the government came under strong pressure, especially from the National Assembly, which demanded that the government stop the import of dangerous pesticides and chemicals and ensured that such products were of good quality before being used by crop growers in Laos.
In response to pressure from law makers and the public, the government announced it was suspending the cultivation of some cash crops after learning that the pesticides used in these areas had a harmful effect on farmers and local residents.
Observers believe that this regulation, which requires the producers and importers of pesticides to register their products, will enable the authorities to carry out checks on the quality and safety of pesticides used in Laos. The move is in line with the government’s policy to promote clean and sustainable agricultural practices'.

So despite all indications that a ban is required, the Lao authorities also prefer restrictions.

 

Lost
Cambodia's rice news revolves around statistics. 
For instance recapping the rice trade figures (Phnom Penh Post, Sep. 25):

'Cambodian rice exports to international markets were worth more than $265 million in the first eight months of the year, said Cambodia Rice Federation (CRF) secretary-general Lun Yeng.

Yeng told The Post on Wednesday that the Kingdom exported more than 340,000 tonnes of rice during the period. Rice exports last year, he said, reached more than 620,000 tonnes or more than $473 million'.

The outlook as always seems bright. The Phnom Penh Post (Oct. 14):

'After three consecutive quarters of decline, Cambodia’s rice exports to the European market are expected to grow in the fourth quarter following a Cambodia Rice Federation (CRF) working group’s visit to the EU to promote the produce, CRF president Song Saran said.

The exports dropped sharply in the first nine months after the EU imposed tariffs on the Kingdom’s rice at the beginning of this year.

Saran led the working group to several European countries to meet with various parties and look into issues related to Cambodian rice.

Following the EU’s import duty on Cambodian rice, price competition with other countries led to a decline in exports to Europe, he said.

...

A CRF report shows that the Kingdom’s rice exports reached 398,586 tonnes in the first nine months of this year – up 2.3 per cent from the same period last year, or 389,264 tonnes.

Rice shipments to the Chinese market stood at 157,793 tonnes during the period. This was up more than 44 per cent year-on-year. But exports to Europe fell to 135,471 tonnes, or down nearly 30 per cent.

The rest was exported to Asean markets, said the report'.

However despite the upbeat, the market in Europe for Cambodia rice imports (and Cambodian imports in general) is (as known) clouded by the Everything-but-arms-trade concessions that were revoked.  The Bangkok Post (Sep. 30):

'A World Bank report estimates [for Cambodia] lost export revenue of $654 million -- $510 million for garments and footwear and $144 million for milled rice -- if the European Commission (EC) ends the EBA privileges, which have been in place for 18 years.

...

Meanwhile rice traders are trying to direct the local market. The Phnom Penh Post (Sep 25):

'The Cambodia Rice Federation (CRF) has called on farmers to delay their paddy sales until after the Pchum Ben festival to avoid a drop in prices.

CRF secretary-general Lun Yeng said on Wednesday that more than 80 per cent of rice millers had postponed purchases of paddy since earlier this week, which has allowed brokers to buy it at prices lower than the market rate.

“If their paddy is not [at risk of being] affected by floods or destroyed by insects, farmers should not rush to harvest. Good paddy should not be priced below 1,150-1,200 riel [$0.28-$0.29] per kilogramme,” he said.

Narum, a rice farmer in Kratie province, said prices in the province were not as high as they were last year. This time last year, he could sell paddy for between 900 and 1,000 riel per kilogramme, but must now settle for between 700 and 800 riel'.

Polished
Over in Thailand, the Bangkok Post (Sep. 15) reports on the Thai rice price pay-off system:

'The rice price guarantee scheme will begin next month with farmers set to be paid the difference when the price falls below a predetermined benchmark, Deputy Prime Minister and Commerce Minister Jurin Laksanawisit said'.

And then in more detail. Bangkok Post (Oct. 16):

'The rice price guarantee scheme started on Tuesday, with eligible farmers set to receive the difference when market prices fall below the predetermined benchmark.
Commerce Minister Jurin Laksanawisit said the state-owned Bank for Agriculture and Agricultural Cooperatives (BAAC) transferred 9.4 billion baht in compensation directly to the accounts of 349,000 registered farmers.
The compensation will be paid mainly to growers of white rice paddy and fragrant Pathum Thani rice paddy if the market prices stay below a certain level.
Mr Jurin said the government is scheduled to pay the compensation every 15 days until the end of the harvest season'.

Vietnam has also been doing the numbers.  Vietnamnet (Oct. 8):

'According to Tran Thanh Hai, deputy director of the Import/Export Department under the Ministry of Industry and Trade (MOIT), Vietnam exported 5.4 million tons of rice in the first eight months of the year, an increase of 0.1 percent over the same period last year, but the export value was $1.96 billion, a decrease of 15 percent.
...
China, which was the biggest rice importer of Vietnam in previous years, has cut purchases. Exports to the market dropped by 65 percent.
In 2018, Vietnam sold rice at $500 per ton on average, but the price decreased in 2019. China, which imported rice in large quantities across border gates in previous years, began restricting imports through this channel in 2018.
Moreover, China has also begun applying the rice import quota scheme. It plans to import 5 million tons of rice this year, but in fact, it has imported 3.3 million only'.

Rice news from Laos.  Vientiane Times (16 Sep.):

'Many agricultural promotion companies in Laos have limited their rice exports because of the supply shortage in the domestic market despite high demand from overseas.

High rice prices and the impact of flooding within the country this season are the main reasons why farmers are storing rice for their own consumption, according to the industry and commerce sector.

Laos recently exported only 1,350 tonnes of polished rice to China as part of a 50,000-tonne export quota agreement between the Lao government and China National Cereals, Oils and Foodstuffs Corporation (COFCO)'.

So there's a shortage in the local market as there's also a need to export to China. Then the Vientiane Times (Sep. 27) reports on government measures to cool the market:

'The government has approved the sale of 2,000 tonnes of stockpiled rice to bring down the high market price after a shortage of supply meant the price of rice rose by over 20 percent above normal.
The move is aimed at cutting costs for consumers and easing the hardship of people on low and medium level incomes.
The Vientiane Industry and Commerce Department has directed the Khamphaengphet Chaengsavang Agriculture Promotion Co., Ltd. to sell the 2,000 tonnes of rice after the government and the company signed a contract to that effect.
Polished Grade B sticky rice is on sale at five locations in Vientiane for 6,500 kip per kg, from September 23-30. This price is 2,000 kip per kg less than the current market price. 

...

The government regularly stockpiles rice and has supplies available every year which can be put on sale when the market price of the staple becomes unacceptably high. This year, the price of polished sticky rice rose to an abnormally high level after a prolonged dry season followed by widespread flooding, meaning that rice yields were below the set target.
From January to June, the price of rice in Vientiane, mainly paddy sticky rice, rose by 3,425-3,500 kip per kg and the price of polished Grade B sticky rice by 6,335-7,000 kip per kg, according to the Vientiane Industry and Commerce Department.
From the end of June to September, the price of rice increased further to about 4,350 kip per kg for paddy sticky rice in the second week of September. Compared to June this was an increase of 1,500 kip or 24.28 percent, the Director of the Vientiane Industry and Commerce Department Director, Mr Berlin Phetchantharath, told the media.
The release of stockpiled rice is authorised by the Decree on the Management of Goods Price and Services No. 474/PM, dated November 18, 2010. The decree followed the appointment of a steering committee on the management of goods price and services in Vientiane'.

Tightlip
As an intermezzo, a feature from Nepal's Kathmandu Post (Oct. 13) on hybrid rice:

'There is a reason why Thakur is upbeat. This year, he is expecting to produce 9 tonnes of paddy on a hectare of land — three times the national average paddy productivity rate.

All this is because Thakur cultivated two high yielding hybrid varieties— Arize 6444 Gold and Arize Idea hybrids. He owns 1.7 hectares (2.5 bigas) of land. As the ripening period of these varieties is 125 days, Thakur is expecting to harvest his crop towards the end of October. The early ripening time has also given him ample time to prepare for a mustard farm in the next cropping cycle.

...

Thakur is expecting to at least double his income this year. “People, mostly my neighbors, had called me crazy when I decided to go for a hybrid variety,” remembers Thakur. “They are all tightlipped now.”

In Nepal, most farmers do not use hybrid paddy because they cannot produce the seed and have to buy them every year from the market.

But Thakur decided to take the risk. His hybrid journey began after he got a handful of hybrid paddy seeds from Nepal Krishi Company, Buddha Air’s corporate social responsibility initiative that works on farm mechanisation and commercialisation.

Thakur is a bit worried as well. “Since it’s a new variety, I don’t know what rate I will get for my produce. I don’t know if consumers will prefer eating these varieties.”

...

Farmers in the area say that hybrid varieties have many advantages but there are disadvantages as well. “We have to buy the hybrid varieties every year from the market as it cannot be reproduced,” she Khanal. “We are worried that it may make us dependent on seeds. “It’s expensive as well.”

The price for Arize 6444 seeds per kilo is Rs600 while Ranjit costs Rs70 per kg.

...

Nepal Krishi Company and Bayer BioScience of India had signed a memorandum of understanding last May to begin a pilot project to use two-hybrid paddy seeds this summer which have the potential to double productivity.

The company has piloted these hybrid varieties on 35 bighas of land. Out of the total land, these varieties have been cultivated with the latest technology and tools on a demonstration plot of 20 bighas owned by Birendra Bahadur Basnet, managing director of Buddha Air, who is also a board member of Nepal Krishi Company. The remaining 15 bigas are owned by the local farmers.

“By October end, we will see the result—the actual cost of production and productivity—of the hybrid varieties,” Basnet says. “The Krishi company’s objective is not only to produce paddy but we want to establish the fact that paddy farming can be done commercially.”

As always, it's about economics. It's also strange that a company uses a social initiative to push hybrid rice with a multinational company which only has one interest.

Dispersed
The Khmer Times (Oct. 7) reports on investment on Cambodian agriculture:

'Green Leader Holding Group Limited, a Hong Kong-listed firm, announced last week that it is increasing investment in the local market by building a new mango processing plant in Tboung Khmum province.

...

In May, Green Leader opened a $20-million cassava-processing factory in Kratie’s Snuol district

The company said the facility can process up to 130,000 tonnes of starch a year, absorbing 500,000 tonnes of raw cassava'.

More mango news. Khmer Times (Oct. 4):

'Cambodian mangoes are ready for export to the South Korea market with the first shipment officially kicking off in early November, Hyundai Agro, the Korean exporter, said.

...

Although the company got permission from the government, Chang Hoon Lee noted that there is another obstacle when it comes to competition with Vietnam, Thailand, Peru, and the Philippines.

Vietnam and Thailand have an air cargo connection with South Korea and enjoy a very low cost of transportation. Every day, Thailand sends more than 100 tonnes of mangoes to Korea and they are dispersed everywhere in one day, while Vietnam’s duties for mango exports are lower than for Cambodia because of the free trade agreement area, Mr Lee pointed out.

...

He noted that there are no cargo airplanes between Korea and Cambodia so the company is figuring out how to send 10 to 15 tonnes of mango by ship'.

Khmer Times (Oct. 2) looks at the evolving trade issues concerning Kampot's pepper:

'A lack of demand is driving a large number of Kampot pepper farmers to quit the crop, the Kampot Pepper Promotion Association said yesterday.

Many farmers are finding it difficult to sell their harvests, according to KPPA president Ngoun Lay. He estimates that 20 to 25 percent of small-scale farmers (those farming less than 3,000 square meters of land) have abandoned the crop after this year’s harvest season, which recently finished.

Mr Lay said an oversupply of the crop is causing farmers in Kampot and Kep provinces to switch to other crops like mango.

...

“For example, before a buyer would order 10 to 20 tonnes of pepper, but now they only need from 2 to 10 tonnes because they are also growing the pepper themselves. This is hurting farmers,” he said.

He noted that the crop is now grown in 290 hectares of land in both provinces by 445 farmers. Combined, those farmers produce a total of 100 tonnes a year on average, but buyers are demanding only about 70 tonnes a year.

A kilogram of Kampot black pepper fetches $15, while red pepper and white pepper sell for $25 and $28 per kilogram, respectively. However, some farmers have had to sell their black pepper for $13 a kilogram, red pepper for $22 and white pepper for $26, Mr Lay noted.

...

Low-quality pepper used to fetch $10 per kilogram, but now, due to oversupply, some farmers are selling it to Vietnamese merchants for as low as $2 per kilogram'.

Rubber. The Phnom Penh Post (Oct. 14):

'Cambodia exported $231 million worth of rubber in the first nine months of this year, a year-on-year increase of nearly 22 per cent from $190 million last year, a Ministry of Agriculture, Forestry and Fisheries official said on Monday.

Khuon Phalla, director of the Department of Administration and Legislation under the ministry’s General Directorate of Rubber, told The Post on Monday that Cambodia’s rubber exports during the period reached 173,072 tonnes, a year-on-year increase of 23.35 per cent from 140,303 tonnes.

...

However, Sopheak Nika Investment Agro-Industrial Plants Co Ltd director Men Sopheak said the rubber market during this period was not as strong as last year.

The current rise in rubber exports is merely due to an increase in the number of mature rubber trees, he said, which produce a larger harvest from year to year'.

Some news on evolving land issues. Taking a French company to a higher level. The Phnom Penh Post (Oct. 1):

'The group, from seven villages in Pech Chreada district’s Bou Sra commune, filed a lawsuit at a French court last year to claim damages and demand compensation from Bollore, a firm that funded Socfin-KCD.
They said they were under threat of losing their land, traditions and customs since the arrival of Socfin-KCD, which had received loans from Bollore to operate a rubber plantation in Mondulkiri since 2008.
...
He said some 800 families, mostly Bunong indigenous members, have been severely affected by the project after Socfin-KCD obtained investment rights to plant rubber trees and other cash crops on 2,368ha on a 70-year contract.
Of the more than 800 families, he added, 640 are directly involved in the land dispute. They turned to the French court after the provincial authorities claimed the dispute had been solved'.

Control
Couple of snippets from the region. 
Oddly, the Phnom Penh Post (Oct. 1) reports on sugar concerns:

'The Thai sugar industry has been hit by the twin crises of falling exports and sliding prices, industry experts have said.

The most imminent threat to the industry is the falling price of sugar in the global market, which has currently dropped by $0.22-$0.24 per kilogramme, the lowest price in six years'.

Then the focus shifts towards Vietnam. The Phnom Penh Post (Oct. 10):

'Vietnam is in the process of getting a licence to export avocado to the US, according to the Vietnam Trade Office in the US.

The Vietnam Trade Office’s branch in the US’ San Francisco said avocados are mainly sold at big supermarkets with large volumes, so they must meet the high requirements of the US market.

Avocado distribution companies must be responsible for controlling the stages of a supply chain, from production to distribution, while exporters need to have sufficient quality certificates.

To enter the US market, avocados must meet the minimum requirements of the regulations on maturity, colour and weight. Avocados must be intact, clean and without insects.

...

In Vietnam, avocado trees are now grown in many provinces and cities, but concentrated in the Central Highlands region with a total area of 8,000ha.

Dak Lak province – which borders Mondulkiri province’s northern Koh Nhek district in Cambodia – is the largest producer in Vietnam with a total area of more than 4,300ha.

Following are Dak Nong province – across the border from Mondulkiri’s southeastern O’Raing district – with an area of nearly 2,600ha, Lam Dong province and Gia Lai province – which borders Cambodia’s Andong Meas and O’Yadav districts in Ratanakkiri province'.

Surge

The usual:

Rice in Cambodia. In the wider region. The alternatives. Wider rural issues. And a parting shot at Monsanto.
That's all.

Cambodia thus. 
Vietnamplus.vn (May 7) looks at the latest rice export statistics, which reveal that China is putting it's money where it's mouth is:

'Cambodia’s rice exports to China have surged strongly after the European Union (EU) imposed duties on rice imports from the Southeast Asian nation, the World Bank (WB) said on May 6.
The EU in January imposed tariffs for three years on rice imported from Cambodia and Myanmar to curb an increase in imports from those two countries and to protect EU producers such as Italy.
Cambodia has filed a challenge with the European Court of Justice (ECJ) against the duties.
According to the WB’s country economic update, after the tariffs were imposed, Cambodia’s milled rice exports to the EU in February were only 10,080 tonnes, a 57.8 percent decline from the previous month.
Cambodia exported 270,000 tonnes or 43 percent of its total milled rice exports to the EU in 2018, the WB said.
The decline in Cambodia’s rice exports to the EU was more than offset by the increase in the country’s rice exports to the Chinese market, the WB said in its report.
Cambodia’s rice exports to China grew by 45.6 percent, and it managed to increase its overall exports of rice by 2 percent during the first two months of the year'.

The above comes hot on the heels of the Khmer Times (Apr. 26) revealing:

'China will agree to buy 400,000 tonnes of Cambodian rice in a memorandum of understanding that will be signed tomorrow in Beijing, according to the Cambodian Ministry of Commerce'.

More Chinese investment (Khmer Times, May 27) too:

'In a meeting with Minister of Commerce Pan Sorasak, Bi Guangmin, chairman of the board of Henan at Yuguang International Economic and Technical Cooperation, unveiled plans to build a warehouse and a silo with a capacity to store up to 1 million tonnes of rice'.

On the storage subject. The Phnom Penh Post (May 28):

'With more plans for rice storage and silos in Cambodia, industry insiders have expressed their optimism that a lack of facilities will not pose a challenge for the Kingdom’s rice market this year.
Cambodian Rice Federation vice-president Norng Veasna said thanks to efforts from the private sector’s rice millers and support from state institutions, the harvest season this year will not see the same issues as in the past few years.
Drying silos and rice storage facilities can currently be found in almost every province'.

The last Cambodian rice news snippet: the  Khmer Times (May 28) notes efforts being made to add Japonica rice to the palette of rice exports:

'Minister of Agriculture Veng Sakhon last week said that tests on Japonica rice have ended, yielding encouraging results. Those tests were being conducted in Kampong Thom province, and show that yields of Japonica are nearly twice as big as those of other varieties grown in the Kingdom.

A hectare of land planted with Japonica can produce 6.5 tonnes of rice, Mr Sakhon said in a post on the ministry’s Facebook page. On average, a hectare in Cambodia yields 3.5 tonnes of rice.

...

Song Saran, CEO of Amru Rice, said Japonica has great potential but that Cambodia is still not ready to plant it for commercial purposes.

“After many tests, we have concluded that Japonica rice can grow well in Cambodia with very high yields,” he said.

“However, the variety needs a lot of water, so we must now study how to reduce the amount of water required,” said Mr Saran, whose firm has also conducted tests on the variety'.

Shifts
Looking at the wider region and rice, just a limited amount of news.

Thailand's official subsidies for rice are directed to high-input rice growing. But they also seem to be interested in low-input rice cultivation. The Nation (May 28):

'The Thai Ministry of Agriculture and Cooperatives and the German government's international co-operation agency on Friday announced the launch of a joint public-private project aimed at transforming the central plains of Thailand to low-carbon rice farming.

...

Under this project, some 100,000 local rice farming households covering 2.8 million rai of rice fields in six provinces of Chainat, Angthong, Pathum Thani, Sing Buri, Ayutthaya, and Suphan Buri would shift to a sustainable method of rice-growing. This is intended to increase their productivity while also cutting greenhouse gas emissions, which contribute to the rising global temperature, the minister said.

The project - having a revolving fund and providing training to farmers - would have farmers shifting from their current method of rice growing to apply the low greenhouse gas-emitting way, use appropriate rice seed strain and related technologies (such as the land-levelling, the alternated wet and dry water management for rice fields, the fertiliser application based on soil testing and analysing, and the rice straw and stubble management to avoid applying a haze-creating method of burning)'. 

Then the Phnom Penh Post (Apr. 30) looks at rice exports from Laos:

'Laos is anticipating reduced income from rice exports this year in the wake of widespread flooding across the country last year.
The country set a target of $45.6 million for rice exports last year but could only achieve $31.4 million, according to the Ministry of Industry and Commerce.
This year, the government is expecting to earn only $25.2 million from rice exports, a significant decline compared to last year’s figure'.

Instead

On the developing of alternatives to rice growing, there's lots of Cambodian related news reports on bananas.
Phnom Penh Post (Apr. 30):

'Cambodia can now directly export yellow bananas to China, without relying on Vietnam as an intermediary, a Ministry of Agriculture, Forestry and Fisheries announcement said.
The General Directorate of Agriculture under the Ministry of Agriculture, Forestry and Fisheries on Monday announced that to send bananas directly to the Chinese market, exporters must comply with certain requirements'.

Khmer Times (May 2) chimes in:

'Five Cambodian companies have been given permission to export bananas directly to China, the Ministry of Agriculture announced earlier this week.
The announcement follows the signing of a protocol on the exportation of bananas in August between China and Cambodia, an agreement that effectively allows Cambodia to ship the fruit to China.
According to the ministry, five local companies are now allowed to export directly to China after a group of Chinese experts visited their farms in Cambodia and gave them the nod'.

 And then (Khmer Times, May 10):

'Cambodia yesterday began the process of sending its first shipment of bananas to the Chinese market, after five local companies were greenlighted by the Chinese government last month.
During a ceremony attended by Agriculture Minister Veng Sakhon, 100 tonnes of bananas were stored at a warehouse in Phnom Penh, ready to the shipped to the Chinese market.
No official date has been given as to when the shipment will take place'.

Khmer Times (May 13) has an interview with a banana industry leader:

'Mr Hun Lak [Longmate Agriculture director]: Our investment, which was approved by the Council for the Development of Cambodia last year, sits on 1,000 hectares of land located in Chhuk district, Kampot province. The capital investment is about 32 million dollars. We have planted yellow bananas on over 400 hectares of land and so far our plantation has run for 15 months. This year, we expect to send 22,000 tonnes of fresh bananas to the Chinese market, and expand to 33,000 tonnes a year by 2020. About 120 tonnes of fresh bananas, equivalent to six containers, have been packed at our packaging house facility in Kampot province and was loaded onto the ship on May 11 ready to be sent to China. It would take about 10 days to get to the destination, namely: Dalain, Shanghai and Shenzhen cities in China. Our banana shipment to the market will pass Sihanoukville Autonomous Port and Phnom Penh Autonomous Port. If the Sihanoukville port is busy, we will carry through the Phnom Penh port instead'.

Vietnamplus.vn (May 3) looks at neighbouring Laos and bananas:

'Banana is expected to be Laos' top agricultural export in 2019 despite the local government’s ban on the expansion of plantations around the country, according to local daily Vientiane Times.
In 2017, the Southeast Asian country earned 167.9 million USD from banana exports. The figure dipped to 112 million USD in 2018, but is expected to rise to 168 million USD in 2019, according to the Lao Ministry of Industry and Commerce.
The bulk of the crop will be sold to China and some to Thailand'.

Trends
Differing crops, differing prospects.
The Phnom Penh Post (May 22) on coffee:

'Vietnam's coffee exports have fallen in both volume and value terms this year, according to the Ministry of Agriculture and Rural Development.

It exported 629,000 tonnes worth $1.1 billion in the first four months, a year-on-year decrease of 13.4 per cent in volume and 22.5 per cent in value.
The trend is forecast to continue this month, the ministry said'.

Khmer Times (May 23) on silage:

'Japanese company Applied Natural Products (ANP) is planning to invest in the production of sorghum silage in Battambang province'.

Khmer Times (May 10) yet again with regards to black pepper:

'Production of renowned Kampot pepper, one of Cambodia’s only two products to be registered as a Geographical Indication in the European Union, will increase substantially this year, the Kampot Pepper Promotion Association said.
The association projects a 69-tonne hike in yields, meaning that about 90 tonnes will be produced.
However, the figure is lower than that of 2017, when more than 100 tonnes were produced, said Ngoun Lay, the association’s president'.

Khmer Times (Apr. 30) on the kingdoms rubber:

'Rubber production increased by 32 percent in the first quarter of the year, with most of it shipped abroad, according to the latest official report'.

Spoils
Besides banana's, there's plenty more fruit news. 
The Khmer Times (May 21):

'Cambodia hopes to start exporting longan to Thailand in the near future, with the two countries planning to sign an agreement on phytosanitary requirements.
Longan is poised to become the second agricultural product officially exported to Thailand following mango.
...
Un Theng, representative of an agricultural community in Pailin province, said the fruit is grown across the province, with annual yields of 7,000 tonnes.
He said the fruit now fetches from 4,000 riel ($1) to 5,000 riel ($1.25) per kilogram, adding that it is mostly bought on-site by visiting Thai merchants.
“We asked the General Department of Agriculture to conduct work on phytosanitary requirements so that the fruit can be exported legally to Thailand.”
However, even after the countries sign the protocol, Mr Theng said exporting the fruit will be troublesome.
“The General Department of Agriculture would likely require that we have a certificate for every shipment. However, we export the fruit on a daily basis and cannot wait to obtain the certificate because then the fruit could spoil,” he said.
“We want to be able to ship as much as we want with just one certificate,” he said.
He noted that a Chinese company is now building a longan processing and treatment factory in the province.
“As far as I know, the company will purchase our longan. We will be able to choose: we can sell to the Thais or to the Chinese,” he said, adding that the factory is now 80 percent complete'.

Khmer Times (May 7) rejoices on export opportunities for mangoes:

'Five local mango farms were inspected by Korean officials in March, but the results of the inspection have not been made public yet, the Ministry of Agriculture revealed this week'.

But this is not all good news. The Khmer Times (May 14):

'The first shipment of Cambodian mangoes to South Korea will be delayed after the exporter failed to meet sanitary and phytosanitary requirements in the Korean market'.

Hmmm.
Better to dry. The Khmer Times (May 15):

'A Philippine firm will soon start exporting Cambodian dried mango to the Philippines and other markets, the Philippine ambassador recently revealed'.

Khmer Times (May 16) on oranges from Battambang:

'Oranges from Battambang and Pursat may become the next product to be awarded geographical indication (GI) status in Cambodia, with the Minister of Commerce now considering whether they deserve the label'.

More downsides, especially concerning the weather prospects. Or is the climate?
The Khmer Times (May 15):

'Durian production in Kampot and Kampong Cham provinces will decrease this year due to unfavourable weather conditions, according to the provincial agriculture departments'.

 Thailand is not much better of. The Nation (Apr. 24):

'The current drought and extreme summer heat could damage half of Uttaradit’s crop of iconic Long and Lin Laplae durians, the provincial governor and farmers fear.
The much-loved varieties fetch over Bt1,000 per kilogram in fruit retail sales or a Bt50,000 reservation fee per tree even before it bears fruit. But this lower northern province has this year already seen many durian, langsat and longkong trees wither'.

Against
Some more broader societal issues.
Inclusivedevelopement in a slightly dated article (Mar. 29) notes:

'Twelve indigenous communities in Cambodia’s northeastern province of Ratanakiri scored a major victory today when the government announced it was returning to them 20 spirit mountains and dozens of other spiritually significant areas that had been grabbed by the Vietnamese agribusiness giant Hoang Anh Gia Lai (HAGL). The communities have been embroiled in a decade-long land conflict with HAGL since their ancestral lands were granted to the company to develop large-scale rubber plantations.
...
The 2014 complaint related to the IFC investment in Dragon Capital’s VEIL fund, which bankrolled HAGL’s agribusiness ventures in Cambodia and Laos. In 2016 and 2017, IFC bought equity stakes totaling $125 million in two other Vietnamese financial institutions, TP Bank and VP Bank. The banks then went on to provide financing of more than $200 million dollars to HAGL, specifically to fund its rubber plantations in Cambodia, despite the pending complaint with the CAO.
The new 117-page complaint provides extensive evidence of environmental and human rights violations resulting from HAGL’s wholesale clearance of intact forests, waterways, pastures, orchards, spirit forests, graveyards and other sacred areas belonging to indigenous communities in Ratanakiri. The communities are particularly concerned about the loss of reserved land for practicing shifting cultivation, their traditional form of agriculture, and declining soil fertility on their current farming land if they are unable to shift to other areas. These cumulative losses have seriously eroded the communities’ sovereignty over their land and system of food production and consumption, which is deeply interconnected with their identity and way of life'.

Thailand's Nation (May 20) on government policies:

'The project to set up a sugar factory and a connected bagasse-fuelled power plant is posing a threat to one of the world’s renowned jasmine rice varieties – the Thung Kula Rong Hai – according to locals living in the Pathumrat district of Roi Et province.

Raising concerns about the project, locals have now rallied behind the Pathumrat Conservation Group.

“We are against the project,” the group’s core member Prayom Sa-ngiam-rat said, after submitting the signatures of more than 2,000 locals to the Roi Et governor to show the extent of local opposition.

...

Chainarong Sretthachau, a lecturer at the Mahasarakham University, disclosed that there were now nearly 30 projects to build both a sugar plant and a biomass plant at the same site in the country’s Northeast.

“This is a result of the current government’s policy to increase sugarcane plantations in the region without caring about possible adverse impacts,” he said.

Locals are worried that such large industrial operations will use lots of groundwater and local farmers will suffer. They also suspect that the power plant may consider using coal, if there are not enough bagasse for its power generation.

“We in fact should think about such industrial operations’ impacts on paddy fields,” Chainarong said.

He said the Thung Kula way of life was about people working in their paddy fields during the rainy season and herding their cattle during the dry season.

“If paddy fields in the area are replaced by sugarcane plantations, there will be no place for cattle. And very likely farmers will fall under the control of contract farming,” he warned'.

Blows
May (the month, not the Brexit PM) proved to be dark month for Monsanto and thus Bayer:
Guardian (May 7):

'Ever since Monsanto introduced its line of Roundup weedkillers to the world in 1974, the products have been touted by the company and regulators as extremely safe. The EPA reiterated that stance last week.
But the emergence of long-held corporate secrets in three public trials has revealed a covert campaign to cover-up the pesticide’s risks and raised troubling questions about lax oversight of all pesticides by the Environmental Protection Agency and other regulatory agencies that are supposed to be protecting public health'.

This article really reveals how the company used the system to it's benefits. Or better said, Monsanto was allowed to design the system itself.

Buzzfeed (May 13):

'A California jury awarded $2 billion on Monday to an elderly couple that developed non-Hodgkin's lymphoma after years of using Monsanto's popular weed killer Roundup, delivering a major blow to the agrochemical giant'.

Japan Times (May 13):

'Germany’s Bayer apologized Sunday after revelations in France that its subsidiary Monsanto had a PR agency collate lists of politicians, scientists and journalists and their views on pesticides and GM crops'.

ewg (May 29): 

'Monsanto paid a shadowy chemical industry front group to help push back against the mounting scientific evidence that the company’s signature Roundup weedkiller causes cancer, court documents reveal'.

Reuters (May 30):

'Los Angeles County sued Monsanto Co on Thursday, seeking to force the unit of Germany’s Bayer AG to help pay for reducing PCB contamination in dozens of bodies of water'.

And what does this add to the hybrid rice discussion?
Ultimately hybrid rice is being pushed as the next big thing. However the precious little reporting in favour of hybrid rice is now also circumspect. Companies themselves can't be trusted but also seems that these corporations will do everything to tinker the system of societal checks and balances to their favour. Even buying independent thinking (see f.i. earlier postings on Nobel laureates backing  Golden Rice) has to been regarded as suspicious. 
Very few different thinkers and publishers remain ...