Global Rice Production May Be Smaller Than Forecast, FAO Says

Global rice production may be smaller than estimated after delays in the
onset of monsoon rains in parts of Asia, the UN Food and Agriculture
Organization said.

Output may fall 3 percent to 668 million metric tons this year, from a
record last year, the UN agency said in a report e- mailed today. The
agency previously forecast 2009 output to expand 1 percent to 696
million tons.

"Delayed progress of monsoon rains and erratic precipitation patterns
are behind a worsening of the 2009 production outlook in Asia," the FAO
said, noting that the region's output may fall 4 percent, or 22 million
tons, to 601 million tons this year from a year earlier.

Drought in India delayed planting of the rice crop in the world's
second-largest grower and consumer, raising concern the nation's
production may lag behind demand and deplete stockpiles. India's monsoon
rainfall was 39 percent below average in the week ended Sept. 30,
Surinder Kaur, a director at the India Meteorological Department, said
Oct. 1.

"Besides India, where the drop is likely to be particularly pronounced,
Taiwan, Iraq, Japan, the Republic of Korea, Nepal, Pakistan, Sri Lanka
and Thailand may also face declines," the FAO said.

Indonesia, the world's third-largest rice grower and consumer, is likely
to see delays of up to 30 days in the onset of the annual rains across
half of the country as a "moderate to strong" El Nino weather pattern
prolongs the dry season, the country's weather agency said last month.

The global rice trade was forecast to rebound by 2 percent to 30.7
million tons, as importers including the Philippines, the world's
biggest buyer, and the European Union boost shipments, FAO said.

The rice trade may fall 1 percent to 30.3 million tons next year as
demand from major importers weakens "amid favorable production
forecasts," the report said.