FAO cuts 2012 global rice output forecast by 7.8 million tonnes

The United Nations’ food agency today August 6, 2012 lowered its global rice forecast for 2012 by 7.8 million tonnes but was confident that world production will still increase.

Global rice paddy production is expected to total 724.5 million tonnes, compared with the original forecast in April of 732.3 million tonnes, the Food and Agriculture Organization (FAO) said in its July 2012 issue of the Rice Market Monitor released today.

“The downward revision was mainly the result of a 22 percent lower-than-average monsoon rainfall in India through mid-July, which is likely to reduce output in the country this season,” it said.

The FAO indicated that production forecasts were also reduced for Cambodia, the Chinese Province of Taiwan, the Democratic People’s Republic of Korea, the Republic of Korea and Nepal, all of which may see a production drop in 2012.

Rice prices have remained “surprisingly” stable after gaining 2% in May, the agency observed but warned that the “future direction of rice prices remains uncertain”.

Asia accounts for the lion’s share of global rice production, and the FAO is predicting the region will reap 657 million tonnes in 2012, up 0.4 percent from its strong 2011 performance.

Global rice trade in 2012, however, according to the FAO is expected to decline by one million tonnes to 34.2 million tonnes, largely as a result of reduced import demand from Asian countries.

By Ekow Quandzie