FAO lowers forecast on rice trade in 2016 as NFA defers importation
The Food and Agriculture Organization lowered its estimates on rice production but sees slightly lower trade in the commodity this year as the Philippines and Sri Lanka downscaled imports.
“An announcement from the Philippines’ National Food Authority that it had deferred decision on additional imports weighed, but speculation that Indonesia could enter the world market for more supplies provided support,” the FAO’s March 2016 Market Monitor said.
The FAO lowered its forecast on trade in rice to 45.3 million tons this month from 45.4 million tons in February.
The FAO said the new forecast reflects the downscaling of imports by the Philippines and Sri Lanka.
The FAO also lowered its rice production forecast to 491 million tons because of worsening expectations for crops in India, Afghanistan, Bangladesh, and Iran.
The FAO said there are concerns on rice production in Vietnam and its exports because of above-average salinity levels in some areas.
The FAO said the dry season crop conditions for rice production in the Philippines are generally favorable except in the southern part of the country because of insufficient rainfall. (By: Eileen A. Mencias)