World Rice Production 2009-2010

August 3, 2010- 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 Martket
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.