FOOD SECURITY SNAPSHOT

• Favourable prospects for the 2012 rice crop

• Rice prices declining

Favourable prospects for the 2012 rice crop

Harvesting of the 2012 main season rice crop, which represents about 70 percent of the aggregate production, is near completion in the main producing areas of the north-east and north-west. This season’s output is anticipated to increase from last year’s levels, mainly as a result of favourable weather conditions during the growing period, despite of heavy rains in late April and early May which caused crop damages at local level. Planting of the 2012 second season rice crop is underway. Assuming normal growing during the season, the aggregate rice production (first and second crops) for 2012 is estimated at around 850 000 tonnes, 3 percent above average. Production this year was sustained by the Government’s introduction of higher paddy support prices and by the implementation of the “pignoración nacional” program. The program, which includes rice, beans, garlic and milk, aims to store the pledged products and release them as and when the market allows, avoiding saturation and low prices. The program has encouraged producers to make large investments in the agricultural areas.