WASHINGTON (Commodity Online): Bad weather conditions in the countries of Asia have impacted the global Paddy production to some extend as UN’s Food and Agriculture Organization foresee 3% decline in paddy output in 2009.

Paddy production this year is expected to be around 668 million tonnes, however this would be high as compared to previous years except the bumper crop production last year, said FAO in its Rice Market Monitor.

It observed that the erratic monsoon was the main reason for the worsening of production outlook of Asia in 2009. Besides India, where the drop is likely to be particularly pronounced, Taiwan, Iraq, Japan, South Korea, Nepal, Pakistan, Sri Lanka and world's largest rice exporter Thailand may also face declines.

Meanwhile, the decline outlook is expected to be counterbalanced with the bumper yields in Afghanistan, Bangladesh, Cambodia, China, Indonesia, Iran, Malaysia, Laos, Myanmar, the Philippines and Vietnam.

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Despite less favorable growing conditions this season, Paddy production in Africa is set to remain close to the outstanding 25.4 million tonnes gathered in 2008, reflecting an expansion drive from governments and renewed interest in the sector from both institutional and private investors.

According to the forecast, global rice trade in 2009 was expected to rebound by two per cent to 30.7 million tonnes. The recovery would be mostly on account of greater imports while deliveries to Bangladesh, Indonesia, Malaysia, Sri Lanka, Turkey and western African countries are set to fall, often sharply.

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