International Rice Research Institute development director Duncan Graham hasexpressed concern that with further decline in world rice production, Indonesia, a major rice importer, could suffer food shortages in the coming years unless it improves its domestic rice production.

The international rice prices have allready increased from about US$240 PMT to more than $300 PMT and are expected to rise further amid reports that India might need to import 5 million MT of rice over the next 12 months.

Domestic rice production in Indonesia has een static over the years as increasing farming costs and low rice prices have caused many farmers to turn to other crops in the hope of improving their incomes.

Indonesia's rice imports fell from 6 million MT in 1998 to less than 1 million MT in 2004. The government increased the figure to more than 1 million MT this year due to harvest delays in some areas.