World rice production is expected to increase this year by 1.8 percent (12 million tons) assuming normal weather conditions, according to a forecast made by the United Nation’s Food and Agricultural Organization (FAO). The increase in production is expected to ease the tight supply situation in key rice producing countries. FAO expects:

• Production increase in major rice-producing Asian countries especially China, Bangladesh, Indonesia, the Philippines, Myanmar, India and Thailand (most of which are experiencing tight supplies)
• Two percent growth, partly sustained by high world food prices, in Egypt, Nigeria, Sierra Leone and Guinea
• Reduced production in the US because of competition for more profitable crops, and in Australia because of an expected drought

Limited rice supply has recently brought sudden increase in prices. Further increase in price, however, is expected to diminish in the coming months with the arrival of the new rice harvests from Brazil, Uruguay, Thailand, Vietnam and India.

The complete news article is available at http://www.fao.org/newsroom/en/news/2008/1000820/index.html