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.