Rice trade to fall 5 per cent in 2012, UN agency predicts

Last year's rice exports reached a record 34.5 million tonnes but are expected to drop to 32.8 million tonnes in 2012, according to FAO estimates.

 

"Among the countries expected to import less rice in 2012 are Bangladesh, Indonesia, Nepal, Nigeria and the Philippines," the FAO said. Production is up in those countries, reducing the demand for imports.

Thailand, the world's leading rice exporter for five decades, shipped 10.5 million tonnes last year, but the kingdom will ship less in 2012 due to a government price-guarantee scheme that makes its export prices uncompetitive, the FAO predicted.

The policy has already reduced rice shipments by 50 per cent year-on-year since November, according to the Thai Rice Exporters Association.

"Basically the government has jacked up the rice price to the equivalent of 800 dollars free-on-board basis, while the highest world price is 500 dollars," said Vichai Sriprasert, an honorary president of the Thai Rice Exporters Association.//DPA