By Luzi Ann Javier

May 10 (Bloomberg) -- Global production of rough rice, the staple for half the world’s population, will rise to a record 710 million metric tons this year, as harvests in India and the rest of Asia recover from drought, the United Nations said.

Output will expand 4 percent from 680 million tons in 2009, as production in India, the world’s second-largest grower and consumer, is forecast to increase 15 percent to 151 million tons, the UN Food and Agriculture Organization said in a report e- mailed today.

“The chances of El Nino conditions dissipating over the coming months have improved, which would support a return to more normal weather conditions, to the benefit of still-to-be- planted crops,” FAO said. “India is anticipated to drive much of the production upturn in the region.”

Higher global output may help extend a slump in prices, as it eliminates the risk that India may turn to the overseas market to meet domestic demand. Rough rice futures jumped to last year’s high of $16.27 per 100 pounds in Chicago partly because of speculation that India may become a net importer this year for the first time in more than two decades.

Rice for July delivery gained 0.5 percent to $11.855 per 100 pounds in after-hours electronic trading on the Chicago Board of Trade at 11 a.m. Singapore time. The contract has plunged 20 percent this year.

“Greater availability of supplies from the harvesting of the 2009 secondary crop in the northern hemisphere and the 2010 main crops south of the equator could give grounds for further price declines,” the FAO said.

Production in the Philippines, the world’s biggest rice importer, may expand 9 percent to 17.4 million tons from “the disappointing 2009 season” as the government provides seed subsidies to farmers and the European Union extends a $13.5 million agricultural assistance program, the FAO said