Drought hits rice crop in Indonesia

THE severe drought suffered by Indonesia in the course of the past 12 months means its rice production will fall by 6.25% to 46.3 million tonnes this year. The shortfall means Indonesia will have to import.

It plans to import 3.1m tonnes in 1998-99, the biggest amount since the start of the decade. Production in 1997-98 was almost 50m tonnes.

The imports will come mainly from Thailand and Vietnam and it is now expected to be a net importer for several years despite aiming to be self-sufficient.

Global rice production this year is estimated by the US Department of Agriculture to be about 386m tonnes, most of which is consumed in the producing countries. Trade volumes are expected to grow by 20% to 25m tonnes.

Global supplies may be tighter later this year because China may cut its production. China is currently suffering severe flooding.

• Food shortages in Indonesia threaten half the people, FWi, 09 July
• Rice price crisis in Indonesia, FWi, 17 June
• SE Asian rice devastation hits economy, FWi, 30 September 1997
• Financial Times 20/08/98 page 26