Thai Rice, Sugar, Rubber Output May Fall on El Nino

Thailand, a key exporter of rice, rubber and sugar, may miss production forecasts for the three commodities this year because of dry weather caused by El Nino weather event, the Office of Agricultural Economics said.

“El Nino is likely to have a severe impact on agricultural production,” Apichart Jongskul, secretary general of the Office, said in an interview in Bangkok today.

Thailand, the world’s top rice exporter, may produce 27 million to 29 million metric tons in the crop year started Oct. 1, compared with 31.65 million tons in the previous year, he said. Sugar output may total 7.3 million tons, less than 7.6 million tons forecast previously, and production of rubber may be 3.1 million tons, compared with 3.33 million tons estimated earlier, Apichart said.

Still, “the decline in production won’t have a significant impact on domestic and export markets,” he said. “Supplies will be adequate.”

Sales of sugar from Thailand, the second-biggest supplier, may rise to 5.52 million tons from 5.30 million tons in 2009, he said. Exports of rubber may rise to 2.85 million tons from 2.7 million tons, while rice sales may be 10 million tons from 8.57 million last year, Apichart said.

El Nino, the weather pattern that creates a warming of the Pacific Ocean, can reduce rainfall or prolong the dry season in parts of Asia, damaging agricultural output.