Australia Still Facing Water Shortage

Australia's severe water shortage for the second year running is hampering the rice crop in the country as Australia will be able to export barely one-tenth of its usual average this year.

Australia's failed rice crop has been blamed for contributing to global shortages and a more than doubling of the global rice price.

World rice exports have been rising, from 22.7 million MT in 2000 to a forecast 29.6 million MT this year. Australia plays a small role: at most it has exported 667,000 MT compared with Thailand, which exports between six million and 10 million MT. This year, because of the drought, Australia will export just 70,000 MT.