World Rice Crop Rising

ROME - Apr 2/08 - SNS -- World rice production will likely increase 1.8% this year to a forecast 12 million metric tons (MT) if weather conditions are normal, FAO said today.

Production increases would ease the current very tight supply situation in key rice producing countries, according to the first FAO forecast for this year. International rice trade is expected to decrease, mainly due to restrictions in main exporting countries.

Sizable production increases are expected in all the major Asian rice producing countries, especially Bangladesh, China, India, Indonesia, Myanmar, the Philippines and Thailand, where supply and demand are currently rather stretched. Governments in these countries have already announced a series of incentives to raise production.

Production outlook is also positive in Africa, where high world prices may sustain a 2% growth, particularly in Egypt, Guinea, Nigeria and Sierra Leone. Concerns about food import dependency in the region have led to a mobilization of resources towards the rice sector. Production is expected to recover strongly in Latin America. Rice production in the European Union is also expected to rise while it may contract in Japan, one of the few countries where producer prices fell last year.

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