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May 13, 2008
Record Rice
Yield Expected,
but Prices will Rise: UN
New York
Rice production in Asia, Africa and Latin America will reach record
highs in 2008, but prices could also continue to rise in the short
term, the United Nations Food and Agriculture Organization (FAO) has
said.
Harvests will surge by 2.3 percent and reach an all-time high of
over 600 million tonnes, but prices will remain high in the near
future because a large portion of this year's crop will only be
harvested at the end of 2008, according to FAO.
However, the UN agency warned that the destruction of Myanmar's food
basket by the Cyclone Nargis earlier this month could lead to a
worsening of the global rice production outlook.
The cyclone, which flooded rice-growing areas and destroyed several
warehouses and stocks, hit Myanmar as paddy farmers were harvesting
their dry season crops, which account for 20 percent of the
country's annual rice production.
Prices of rice in Yangon, former capital city of Myanmar, have
jumped by 50 percent, and if the country turns to neighbors such as
Thailand and Vietnam for imports, this could lead to a further
upwards pressure on global prices.
According to the FAO Rice Price Index, international prices soared
by 76 percent between December 2007 and April 2008.
"Prices are expected to remain extremely firm, at least until the
third quarter of 2008, unless restrictions on exports are eased in
the coming months," said FAO rice expert Concepcion Calpe.
Major rice exporters, including India, have recently set export
bans, taxes or ceilings to prevent shortages in their own countries.
"These measures further restricted the availability of rice supplies
on international markets, triggering yet more price rises and
tighter supply conditions," Calpe said.
Only Thailand, Pakistan and the US are the leading exporters,
selling rice overseas without any constraints.
Rising prices of fertilizers, pesticides and fuel are also
contributing to the rise in prices of rice.
Average rice consumption worldwide is predicted to go up by 0.5
percent to 57.3 kg a year, and despite the rising prices of rice,
consumers are shifting away from more expensive foods, such as meat
and meat products.
The price rise has revealed other medium-term limitations, including
the low level of investment in agriculture and limited funding for
agricultural research, FAO said in a news release Monday.
May 13, 2008
IANS | Top
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