United Nations Radio

World rice production is expected to increase in 2008 by 12 million tons, according to the Food and Agriculture Organization of the United Nations.

The first FAO forecast of the year says that production increases, which amount to almost two percent, would ease the current very tight supply in key rice producing countries, such as Bangladesh, China and India. Production outlook is also positive in Africa countries such as Egypt, Guinea, Nigeria and Sierra Leone. At the same time, demand outstrips supply in the international rice market and prices are increasing. FAO says that while higher rice production in 2008 could reduce the pressure, short term volatility will probably continue. Concepcion Calpe, a Senior Economist at the FAO specializing in rice, says both consumers and producers can benefit:

"If you say for rice consumers, I would say it's positive if the production grows. For producers, it's another story because they have completely different interests. Producers are benefiting today from the high prices and I would add that it's time for them to benefit from the high prices because for many, many years, they were the ones to suffer."

Reporting for UN Radio, I'm Gerry Adams.

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