An anticipated squeeze in global rice availability amid buoyant demand may push up world prices of the grain in 2005, the United Nations' food agency FAO said on Monday. "As import demand is anticipated to remain strong, the current world rice price weakness is likely to be only temporary and quotations could regain momentum next year," the Food and Agriculture Organisation (FAO) said in a statement.
World rice paddy output is estimated at 611 million tonnes in 2004, up 27 million from 2003 and close to the record level of 1999, but consumption is expected to outstrip production and rice supplies for international trade would be limited, it said.
World trade in rice could fall by about 900,000 tonnes in 2005 from about 26.1 million tonnes this year due to supply constraints, mainly in Thailand, India and Uruguay. It said additional demand might have to be filled by drawing down on stocks.
World rice inventories at the end of the 2004-rice season would be at 99 million tonnes, 4 million tonnes lower than a year ago. FAO said production gains were expected in Afghanistan, North Korea, Pakistan, Philippines and Vietnam, while adverse weather conditions could cause output to drop in Bangladesh, Cambodia, India, Malaysia, Myanmar, Nepal, Sri Lanka and Thailand.
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