Brussels, 01/07/2009 (Agence Europe) - On Tuesday 30 June, the European Commission adopted a report which states that the agreements on rice, which were concluded in 2004 and 2005 with Thailand, India, Pakistan and the United States, "have achieved their objectives", as imports of rice have increased when necessary to cover the increase in consumption within the EU. Contrary to concerns expressed in certain quarters, the EU rice-growing industry has not been weakened by an increase in imports of white rice. It is worth noting that around two thirds of the rice consumed within the EU is grown in Europe.
The report firstly takes stock of the import flows based on the certificates issued. Between 2004/05 and 2005/06, imports of basmati rice remained stable at 270,000 tonnes; they rose from 324,000 tonnes in 2006/07 to reach 368,000 tonnes a year later. After the fourth growing season in which the basmati rice agreement was applied, the quantity of husked rice other than basmati for which import certificates were issued rose from 398,121 tonnes in 2004/05 to 550,741 tonnes in 2007/08. A substantial proportion of this 37% increase (148,770 tonnes) is due to the enlargement of the EU to Bulgaria and Romania, as these countries imported 78,985 tonnes of husked rice between them in 2004/05, before their accession to the EU. The net increase in the imports of the EU between 2004/05 and 2007/08 did not, therefore, exceed 70,000 tonnes. In 2004/05 and 2005/06, nearly a quarter of the EU's imports of husked rice came from the United States. Imports fell sharply after the discovery of LL Rice 601, a genetically modified variety which is not authorised within the EU, amongst batches of American rice in August 2006, which led EU importers to turn elsewhere in preference, for example to Thailand and Uruguay (which provided respectively 22% and 13% of the totals for 2007/08). Imports of semi-milled and milled rice rose steadily until 2007/08, when there was a massive leap of 50% (+ 150,000 tonnes) compared to the previous year. As a result of this, duty was increased to €175/t in March 2008, compared to €145 /t since the agreement entered into force in September 2005. Imports of broken rice climbed from 185,000 tonnes in 2005/06 to a stable level of 240,000 tonnes in 2006/07 and 2007/08. Due to the large quantity of rice produced in the EU, a considerable deficit in broken rice was noted on the EU market.
The report also explains that: - since 2004, variations in the production of rice in the EU have been linked to climatic conditions and consumer choice, rather than to import flows. Imports increased in order to respond to increased consumption in the EU; - the quantities processed by the EU
rice industry remained stable; - during the period in question, the agreement had no negative effect on the production of rice within the EU. In 2008, however, rice prices - like the prices of other
cereals - reached unprecedented peaks, which were passed on to prices on the internal market of
the EU. (L.C./transl.fl)