Rice Harvest in India Seen at Record as State Prices Increased

26/6/2012Rice production in India, the second-largest grower, is set to climb to a record after local prices were raised, potentially allowing the nation to sustain exports for a second year and swelling a global cereal glut. The monsoon-sown harvest may gain 10% in the year beginning July 1 from 90.8 million metric tonnes a year earlier, said Tarsem Saini, president of the Federation of All India Rice MillersAssociation. An end to a three-year ban on exports last year and a forecast for normal rain will spur farmers to increase planting, he said. The monsoon crop that was sown from this month accounts for about 80% of annual output. Futures have slumped 41% from a record in 2008 after farmers around the world increased plantings. Global output will climb to 466.5 million tonnes this year from 463.98 million tonnes in 2012, the U.S. Department of Agriculture said June 12. [Bloomberg]