Lower crops in Brazil, Pakistan and the Philippines push world rice production down – USDA

The U.S. Department of Agriculture (USDA) cut its estimates of global rice production for 2015/16 from last month mostly on crop reductions for Brazil, Pakistan, and the Philippines.

It also revised global trade in rice down slightly, as higher exports for India are more than offset by declines for Pakistan and Egypt, and smaller imports for Turkey.

Global stocks are revised lower this month largely on a reduction for Japan (primarily due to higher consumption). The U.S. season-average farm price is lowered, it said in its latest monthly report on world agriculture.

From 2012 to 2015, rice consumption in the European Union (EU) rose marginally and steadily alongside population growth. Because the region does not produce rice in large quantities, the EU relies on imports to meet domestic demand, the report said, adding that recently, Thailand, India, and Pakistan have accounted for the largest share of imports.

Over the past four years, however, an increasing proportion of imports have come from other origins. Under the Everything-But-Arms arrangement, rice imports from Cambodia and Burma gained duty free access, which expanded in 2009 due to the expiration of the quantitative limits on imported rice. Imports from Guyana doubled last year, as exporters diverted more shipments away from Venezuela and to EU, the report said.

In all, EU imported a record 1.8 million tons in 2015, nearly 40 percent of which arrived from Cambodia, Burma, and Guyana. Long grain rice shipments from these sources are expected to remain strong and to account for a significant portion of the EU’s imports this year, it added.

Selected trade changes for 2016

  • Brazil’s imports are raised 100,000 tons to 800,000 on higher import demand resulting from smaller crop.
  • Egypt’s exports are slashed 150,000 tons to 250,000 on a newly-implemented rice export ban.
  • European Union’s imports are revised up 100,000 tons to 1.6 million on stronger imports to date.
  • India’s exports are raised 400,000 tons to 9.0 million on higher levels of trade to the Middle East.
  • Pakistan’s exports are reduced 200,000 tons to 4.4 million on smaller exportable supplies.
  • Senegal’s imports are cut 115,000 tons to 985,000 due to higher production. · Turkey’s imports are trimmed 130,000 tons to 200,000 on lower consumption.

 

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