GM RICE & GLOBAL TRADE + Monsanto's loss widens

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1. GM rice likely to make trade more complex 2. Monsanto Q4 loss widens, stock fall on 2007 forecast -------------------- GM rice likely to make trade more complex Experts in IRC see challenge in assessing implication of trade on food security http://www.financialexpress.com/fe_full_story.php?content_143180 ASHOK B SHARMA ECONOMY BUREAU Posted online: Thursday, October 12, 2006 at 0000 hours IST NEW DELHI, OCT 11: The rice market in the near future would be complex due to the proposed commercialisation of genetically-modified (GM) rice, trade experts at the 2nd International Rice Congress (IRC-2006) cautioned. The issue would be linked with food safety and certification. During the

discussions in the session on market intelligence and international trade, experts also said that the challenge would be to assess implication of future rice market and trade on food security, International Food Policy Research Institute (IFPRI)’s Asia director, Ashok Gulati said while briefing mediapersons on Wednesday. Food and Agriculture Organisation (FAO)’s director, Prabhu Pingali said, “In future rice will become an inferior commodity in Asia, but its importance will grow in Africa. Per capita rice consumption in most Asian economies is declining due to rising incomes and rapid urbanisation. At the same time, global trade in rice is growing at a faster rate than other major cereals, such as wheat and corn. Global trade in rice increased from 4% to 7% of total production during 1992-2004. Rising production has led to decline in real prices for the crop, which has helped to sustain household food security. Evidence shows countries move away from taxing

rice to subsidising it as domestic income levels increase.” Gulati blamed the subsidy regime for the fall in global rice prices. In the session on breeding rice for resistance to biotic stress, experts said through marker-assisted selection useful genes resistance to bacterial blight, blast and gall midge have been pyramided. The newly pyramided rice lines show broad spectrum of resistance to these pests. The rice varieties and hybrids so developed in the process were, however, not genetically modified ones as no transgene from other crops were involved. Denying ISAAA report of commercialisation of GM rice in Iran, DS Brar of International Rice Research Institure (IRRI) said, “We have so far received no confirm reports on this issue.” In the session on nutrient use efficiency, experts suggested the site-specific nutrient management (SSNM) approach

which would enable farmers to optimally nourish their crops and increase productivity and production. The SSNM approach would also help restore soil health aggravated by umbalanced use of different chemical fertilisers. On seeds production, experts said that on a global scale the price of seeds were higher than price of grains. However, in Indian context the seed prices in general are not a cause for concern. Certification for quality seeds has gain importance. More than 80% of hybrid rice seed are being produced in Kareem Nagar and Warangal districts in Andhra Pradesh.-- Monsanto Q4 loss widens; stock falls on 2007 forecast http://www.financialexpress.com/fe_full_story.php?content_id=143154 Posted online: Thursday, October 12, 2006 at 0000 hours IST

OCT 11: Monsanto Co., the world’s biggest developer of genetically modified seeds, said its fourth-quarter loss widened because of a shift in sales to earlier in the year. The company’s 2007 profit forecast was below analyst estimates, sending the stock down as much as 6.9%. The net loss in the quarter ended August 31 widened to $144 million, or 27 cents a share, from $125 million, or 23 cents, a year earlier, St. Louis-based Monsanto said today in a statement. Per-share profit in fiscal 2007 will be $1.50 to $1.57, the company said. Analysts forecast $1.62. Seed revenue, including fees from genetics licensed to rivals such as DuPont Co., fell 2.4 percent to $532 million, Monsanto said. Those segment results lagged behind some analysts’ projections, JP Morgan Securities Inc. said in a report. Monsanto shares tumbled $3.02, or 6.5%, to $43.39 at 9:40 a.m. in New York Stock

Exchange composite trading after touching $43.21. Before Wednesday, they had gained 63% in the past year. —Bloomberg

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