Milan, Feb 25 - World stocks of rice, one of the food staples across the globe, are expected this year to hit the highest level since 2002 on the back of strong output in 2008, the United Nations' food agency said on Wednesday.
World rice stocks carried over to 2009 are forecast to rise 8 percent to 118 million tonnes which would cover nearly 26 percent, or three months of expected consumption this year, the Food and Agriculture Organisation (FAO) said.
World paddy rice output rose 3.5 percent in 2008 to 683 million tonnes, or 456 million tonnes in milled rice equivalent, it said in its rice market report on its website www.fao.org, confirming its estimate published earlier this month.
The 2008 output growth pace was the highest since 2005 and was powered by improved yields per hectare and increased planted areas, the Rome-based agency said.
Much of the stock build-up is expected to happen in exporting countries, especially in China and India which hold the largest rice reserves. But traditional importers, such as Indonesia, Sri Lanka, Saudi Arabia and the United Arab Emirates, are also expected to boost their rice inventories.
Rice prices have steadily declined in the second half of 2008 but remain on average 80 percent higher for the entire year than in 2007, FAO said.
"Given expectation of good 2008 secondary crops soon to reach the market, a relaxation of Egypt and India's export restraints and subdued import demand, further price drops cannot be excluded in the next few months," it said.
Lower prices are expected to boost rice imports in 2009, with Asian countries seen absorbing 48 percent of total imports this year. Global rice trade is expected to rise by 200,000 tonnes to 31 million tonnes in 2009.
FAO said it was too early to make output forecasts for 2009.