In addition, the government was late in establishing this year s rice export subsidy policy. Finally, lower production and declining stocks are also relieving some of the pressure to export. Therefore, this report reverts to a rice export estimate of 1.8 million tons for MY 2000, and a forecast of 2 million tons for MY 2001. China has a stable commercial market for broken rice which is used to produce rice flour, vinegar, noodles, animal feed, beer, etc. China does not import broken rice.
Domestic supplies meet demand.
Japan is currently the only export market for Chinese broken rice. In the first quarter of the current calendar year, China exported 2,259 tons of broken rice to Japan. The total rice area and production in 2001 are forecast to drop. It is the second year running that rice production is below consumption. However, middle rice yield is expected to increase, so middle rice production is expected to drop about one percent.