A better than expected 2012 crop will see global rice production outpace consumption this year, according to the UN’s Food and Agriculture Organisation.
FAO said the new crop marked the eighth consecutive year of gains in rice stocks, and growth had been better than the level set last year.
“Compared to last year, world rice carryover stocks are expected to rise by seven per cent, or 10 million tonnes, to a new high of almost 170 tonnes, marking the eighth consecutive year of stock accumulation,” it said.
FAO said it raised its forecast for rice stocks after some of the main producing regions received better than expected weather.
The regulator raised its forecast by 4.2 million tonnes and said the season had been “progressing satisfactorily, especially after a revival of the monsoon rains since mid-August allayed fears of a repeat of the 2009 drought in India.”
“Prospects improved not only for India, but also for Egypt, North Korea, the Philippines, the United States and Vietnam, while they worsened in Myanmar, Colombia and Senegal,” it said.
While higher production has been good for consumers, some producers have also used favourable conditions to continue growing their business.
Sunrice, one of the world’s largest rice exporters, recorded revenue of $1 billion last year, and saw revenue growth of 23.4 per cent year on year.