2012 rice trade to fall in weaker demand: FAO

BANGKOK, (Asia Pulse) - The international rice trade is forecast to fall by approximately 1 million tonnes, or 5 per cent, this year as improved harvest prospects in several major importing countries may reduce overall demand after achieving a worldwide record of 34.5 million tonnes (milled basis) in 2011, according to the United Nations' Food and Agriculture Organization (FAO). The total rice trade should decline to about 32.









8 million tonnes. Among the countries expected to import less rice in 2012 are Bangladesh, Indonesia, Nepal, Nigeria and the Philippines.

In Thailand, the recent extension of government-sponsored pledging programme for secondary paddy crops is likely to keep the countrys rice export prices high. As the result, the worlds leading rice exporter is expected to incur a contraction in shipments, as buyers seek better prices from competitors, FAO said in a statement released here on Wednesday.

Supply constraints will probably inhibit exports also from Argentina, Brazil, Myanmar, the United States and Uruguay. Viet Nam, the worlds second-largest rice exporter, may not match its export totals from 2011. Cambodia, China and Pakistan, on the other hand, appear set to increase shipments, while Indias return to the export market, following the lifting of a ban on non-basmati rice exports, should also boost export totals from that country, FAO said