According to the latest report published by the U.N. Food and Agriculture Organization, FAO, global rice production is set to rise by 12 million MT or 1.8%, in the current year assuming normal weather conditions prevail.

The report also suggests that this rise in production is likely to offer some help to ease very tight global supply situation that has pushed prices to record highs.

Since January international rice prices have risen 20%, according to the FAO All Rice Price Index. In March high quality Thai 100% B rice rose to $546 PMT up 13% from the previous month and up 68% from the same time last year.

Despite the rise in output, the FAO forecasts rice trade to fall as main exporting countries restrict movement to protect domestic supplies.