FAO Sees More Rice in 2006

ROME - Apr 7/06 - SNS -- Rice production seta new record in 2005 and could exceed that this year, according to the FAO Rice Market Monitor published today.

"For the third consecutive season, global paddy production experienced a brisk expansion, which lifted it to an all time high of 628 million metric tons (MT). Growth reflected relatively favorable weather conditions in Asia, western Africa and South America and the positive effects of high prices in 2004, which had fostered a general increase in plantings," according to the report.

Based on a first and very tentative forecast, global paddy production in 2006 could rise to 634 million MT, 6 million or 1% more than in 2005. However, forecasts will remain highly tentative, at least until August/September, when more information on the South-West monsoon in Asia will be available.

With regard to trade, tight domestic supplies in a number of countries confronted with production shortfalls in 2004 prompted a surge of global imports in calendar 2005 to a record volume of 29 million MT.

For calendar 2006, FAO forecasts have been lifted to 27.8 million MT, but they remain 4.1 percent lower than in 2005. The contraction from last year's exceptional performance is anticipated to be mainly import-driven, as demand by several major importing countries is expected to weaken, according to the report.