FAOs forecast for global paddy production in 2006 has been downgraded by 2 million tonnes from last report and now stands at 635 million tonnes, marginally above the 2005s level. Much of the downward revision reflects adverse weather conditions, which have led to much less buoyant crop prospects in Bangladesh, China and Nepal.

2005 was a record breaking year for the world rice economy. For the third consecutive season, global paddy production experienced a brisk expansion, which lifted it to an all time high of 628 million tonnes. Growth reflected relatively favourable weather conditions in Asia, western Africa and South America and the positive effects of high prices in 2004, which had fostered a general increase in plantings. Tight domestic supplies in a...