World Wide Rice Production

World Wide Rice Production


According to the Food and Agriculture Organization (FAO) of the U.N., 80% of the world rice production comes from 7 countries. However, if we talk about world rice production 2009-2010, the figures below show the worldwide rice production by countries- in fact, the top ten countries of world counted for their rice production.



Country

Rice Production

China

Mt: 166,417,000 (32.7%)

India

Mt: 132,013,000 (26.0%)

Indonesia

Mt: 52,078,832 (10.2%)

Bangladesh

Mt: 38,060,000 (7.5%)

Vietnam

Mt: 34,518,600 (6.8%)

Thailand

Mt: 27,000,000 (5.3%)

Myanmar

Mt: 24,640,000 (4.8%)

Philippines

Mt: 14,031,000 (2.8%)

Brazil

Mt: 10,198,900 (2.0%)

Japan

Mt: 9,740,000 (1.9%)



There has been a major decline in world rice production since late 2007 due to many reasons including climatic conditions in many top rice producing countries as well as policy decisions regarding rice export by the governments of countries with considerable rice production.

Reasons for Low World Rice Production in 2009


Global rice prices started increasing in November 2009 after months of steadily declining since reaching an all time high in May 2008. Problems related to rice supply in two major rice producing countries- India and the Philippines- have been the primary reason for low world production of rice and the reversal of price trend.



Rice Market



In September-October 2009, the Philippines got hit by two major typhoons causing damage to rice crops on ground. Approximately one million tons of rice in storage also got damaged. India too saw the worst drought since 1972 that reduced its 2009 Kharif (wet-season) crop by at least 15 million tons from a total of 85 million tons in the previous kharif season. There were also major floods in southern states of India Andhra Pradesh and Karnataka. Andhra Pradesh, one of the major rice production state of India was affected first by drought and then by flood. Thus, rice cultivation in India saw a real setback in 2009. As a result of low rice production in the two major rice producing countries of world, the Philippines and India were in the market to purchase rice than to sell rice.



Current World Rice Stocks


Despite a low world rice production in 2009, the current global rice stocks are much higher than in 2007. In the last two years, rice stocks have increased by more than 16 million tons- from 75 million tons in 2006 91.5 million tons in 2009. Most of these increase in world rice stocks is accounted to China, India, Indonesia and Thailand. Therefore, the rice market should be more stable now than in 2007.



World Rice Production in 2010


As of January 2010, planting of paddy crops was already well advanced in southern hemisphere countries. In South America, however, the season opened negatively due to drought or excessive rainfall that have delayed sowing of the main crops. It is also feared that drought related to El Nino may decrease rice production in Indonesia. Australia is expected to show an increase in rice production though its output would remain below the highs of the early-2000s. The rice production outlook is uncertain in southern African countries in view of the January and March cyclone period there.

World trade in rice in 2010 is predicted to recover slightly to 30.5 million tonnes. This increase is supported by a strong import demand from Asian countries, especially the Philippines. Purchases by Brazil and the United States might also rise, while deliveries to African countries could diminish. The 2010 trade recovery would be sustained by increased rice exports by Thailand which and also by China, Myanmar and Viet Nam, compensating for reduced shipments from Cambodia, the United States and Uruguay. Indian stocks, however, would not be available to the international market but will provide relief to the Indian domestic rice market as the country doesn't need to turn to import in the near future.

As a result of the improved 2009 production estimates, the FAO forecast of world rice stocks at the close of the marketing years ending in 2010 has been raised by 6 million tonnes to 123 million tonnes, representing a 1% drop from opening levels. Much of the contraction is expected to be in the five major exporting countries, which, as a group, are predicted to close the year with a 24% draw down to 24.5 million tonnes. Conversely, rice importing countries like Indonesia and the Republic of Korea, are expected to build their inventories. Relative to world consumption, global rice reserves appear ample and sufficient to cover roughly 27 percent of utilization in 2010.