The report as well as previous issues of the Monitor can also be found at: http://www.fao.org/economic/est/publications/rice-publications/rice-market-monitor-rmm/en/

ROUND UP

The 2014 paddy season is virtually concluded. Although the dreaded effects of an El Niño weather event failed to materialize so far, the campaign was marred by various climatic setbacks, which were mostly behind an anticipated 0.5 percent contraction in 2014 world paddy production to 741.3 million tonnes (494.4 million tonnes, milled basis), 3.3 million tonnes less than anticipated last December. Although small, the seasonal decline stands out as the first registered since 2009, another campaign marked by weather anomalies. Particularly affected were a number of Asian countries (India, Thailand and Sri Lanka, in particular, but also Cambodia, the Democratic People's Republic of Korea, Indonesia, Nepal and Pakistan), which endured late and insufficient rains and/or floods. The 2014 season also ended negatively in Oceania, where Australia faced water supply limitations. The campaign unfolded more favourably in the other regions, helping the global season to close with an above-average production outturn, notwithstanding the decline from the excellent 2013 output. Although the lack of growth in 2014 is to be attributed principally to natural events, a lingering tendency for prices to fall also played a role. Indeed, weakening world quotations made it more difficult for a number of governments to bear the burden of bulging stock holdings and to sidestep concerns over the negative environment impacts of paddy cultivation. As a result, several countries, especially in Asia, have recently engaged in less expansionary paddy production policies, for instance through the freezing of official rice producer prices or the imposition of more stringent rice cultivation limits. At the same time, however, the pursuance of self- sufficiency remains a mainstay of policies, especially in Asian importing countries.