As per latest report, it has been revealed that Sri Lanka's rice production during the current Yala minor cropping season, it is expected to be 1.51 million metric tonnes, 6 percent below a 3-year average, according to a crop forecast. It has also been indicated that the forecast from 2016 will be lower than 2015 but higher than 2014.However, in 2015, there was a bumper Yala harvest with a larger extent being sown. The Department of Agriculture of the University of Peradeniya narrated that at the end of June 2016, about 379,882 hectares of paddy or 76 percent of a targeted 502,923 had been sown. As per data, it indicates that this was 8 percent lower than the past 3-year average and 24 percent lower than in the bumper year 2015, but 23 percent higher than in 2014.
Further, in this matter, it has been described that in May 22, a total of 429 hectares had been damaged by floods requiring re-cultivation. The highest production of 261,000 metric tonnes is expected from Anuradhapura followed by 163,000 tonnes from Kurunegala. It has also been stated that in last year Sri Lanka had a bumper harvest with stocks piling up at government warehouses. All, it was due to state intervention through guaranteed prices and import duty protection as the Sri Lanka's rice is not of international quality and prices are also high. Thus, surplus rice does not lead to exports like in other countries.
As per the report, it has been indicated that in last year Vietnam exported 2.64 billion US dollars of rice and excess rice is used for animal feed or beer production. While, the Thailand which practiced a guaranteed price scheme also ended up with large stocks. Among the suggested uses for the rice stocks are as animal feed and as feedstock for the ethanol production. However, in 2016 the global rice crop is expected to decline due to El Nino weather variations as per crop forecast.