Agfax Buzz:
    May 14, 2012
    150px_2004-rice-mature-head-1

    Congress Members Request Detailed Information on Brazil’s Rice Exports

    AgFax.Com - Your Online Ag News Source

    By Bob Cummings, USA Rice Federation

    U.S. Rep. Bill Cassidy (R-LA) last week led a bipartisan group of rice-state Representatives in a letter to U.S. Trade Representative Ron Kirk and U.S. Department of Agriculture Secretary Tom Vilsack that expresses concerns and seeks specific responses about Brazil’s use of a government sponsored domestic marketing and pricing initiative for rice exports.  The Program for Product Flow (PEP) gives an unfair advantage to Brazil’s rice exports, the letter says.

    The PEP Program provides a subsidy to a buyer of paddy, or harvested, rice that equals the difference between a set support price and the prevailing market price.  The subsidy is provided on the condition that a buyer moves the rice to specific regions within Brazil or to an export destination.  In 2010-2011, Brazil’s rice industry harvested and exported a rice crop that was 17 and 25 percent greater, respectively, than the the previous year. During that period, Brazil expanded its rice exports to the United States and in countries where the United States competes commercially, such as Haiti, Nicaragua and Nigeria.

    “Making the export of rice a condition for receiving price support is an export subsidy and we understand that Brazil has a ‘zero binding,’ in WTO terms, for rice export subsidies,” the letter says. “In other words, Brazil cannot use export subsidies for rice without breaking its WTO obligations.”

    The Representatives ask Kirk and Vilsack to identify specific actions the U.S. government has taken with regard to Brazil’s 2010-2011 rice exports and an explanation about the use of the PEP Program during the same period.

    Leave a Reply

    Name and Email Address are required fields. Your email will not be published or shared with third parties.

    Agfax Rice News

    Arkansas: Rains Slow Planting Progress – USDA4-21

    Crop Progress: Spring Wheat Planting Jumps, Other Crops Still Slow – DTN4-20

    California: Rice Planting Begins, Almonds Being Sprayed – USDA4-20

    Louisiana: Another Slow, Rainy Week – USDA4-20

    AFB Rice Close: Stocks Continue to Weigh on Prices4-20

    Louisiana Rice: Rains Stop Fieldwork, Southern Crop Growing Well4-20

    Louisiana Rice: 10 Things You Need to Know About Sheath Blight4-20

    Way on Rice: Sugarcane Aphid – Scout Your Sorghum Crop4-18

    Rice Crop: Planting Moves Ahead Despite Rain Delays in Some Areas4-18

    Rice Market: Futures Dipped, But Didn’t Fall Out of Bed4-18

    Arkansas Rice: Planting Put on Hold. Again.4-17

    Rice Planting Stalls Out During A Really Wet Week – AgFax4-17

    AFB Rice Close: Little Market Support Remains4-17

    How Will China’s Investments in Agriculture Affect U.S. Producers?4-17

    Conservation Compliance: 5 Steps Needed Before June 1 Deadline4-17

    Mississippi: Temperature, Moisture Determine Planting Time4-17

    AFB Rice Close: Markets Unaffected by Slow Planting4-16

    USDA Reminds Farmers to Certify Conservation Compliance by June 1 Deadline4-16

    U.S. Drought Outlook: Improvements Expected Across the Plains4-16

    Drought Monitor: Mississippi River, Gulf Coast Get Drenched4-16

    U.S. Drought Monitor Quick Look Video – AgFax4-16

    Texas Fertilizer Fire, 2013: What Did We Learn? – DTN4-16

    Arkansas Rice: Bacterial Panicle Blight – Hard on Yields, Difficult to Control4-16

    AFB Rice Close: Market Still Under Pressure4-15

    Propane Stocks Continue Climb4-15

    Gasoline: Strong Regional Price Movements4-15

    Diesel Prices Move Lower4-15

    5 Business Practices to Take Home From Ethiopian Farmers – DTN4-15

    AFB Rice Close: Strength Gained from Outside Markets4-14

    AFB Rice Close: Large Stocks, Lack of Demand4-13