4 July 2012
JAKARTA (Commodity Online): Global rice market is likely to remain subdued as Indonesia, fourth largest rice producer, is unlikely to import the staple for 2012 on surplus production forecast on good weather.
The rice production is forecast to rise 4.3% to 68.59 million tons in 2012 against 65.76 million tons last year.
Last year, Indonesia imported 1.9 million tons of rice from Thailand, Vietnam and India to ensure food security in the country. Indonesia is expected to consume around 33 million tons.
With the rising population , the consumption rate is also rising. According to International Rice Research Institute, a person in Indonesia consumes on average more than 139 kg per person a year, it is among the highest in the world.
With the drop in purchase of rice by Indonesia, global rice prices are likely to drop. This is likely to affect the exports of India and other rice producing nation.
India is expected to produce around 103 million tons of rice and is expected to consume around 95 million tons. Rest is either exported or stored in the warehouses as carry over stocks.
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