The Italian Rice Industry Association (AIRI) said European farmers,struggling to compete against low-cost producers such as the United States,Thailand, India and Pakistan, were ploughing increasing quantities of riceinto intervention.

Intervention, buying in food commodities at guaranteed prices, is theunderlying support mechanism of EU farm policy.

AIRI estimated that EU stocks of paddy rice had steadily risen to more than495,000 tonnes at the end of 1999, representing 20 percent of the EU'sannual production.

Italy, the EU's biggest rice producer by far, had contributed more than215,000 tonnes of the total.

On April 1, the first day of the intervention period, European farmersoffered 140,000 tonnes of paddy rice to EU stockpiles, AIRI's directorRoberto Carriere told Reuters late on Tuesday. The intervention period runsuntil the end of July.

"If the European Union does not use these stocks for food aid as quickly aspossible, they will deteriorate and have to be destroyed," AIRI said in astatement.

"While the appeals of the United Nations to rich countries multiply in orderto save millions of seriously malnourished people, the EU risks having todestroy thousands of tonnes of rice for which it has paid," AIRI said.AIRI said that the delivery of the EU rice stocks to the world's hungrywould cut the EU's own costs.

It estimated that EU taxpayers had paid 180 million euros ($171.8 million)for the rice stocks and that it cost more than 1.8 million euros per monthto store it. Rice can be stored in warehouses for two to three years beforeit becomes unfit for consumption, Carriere said..

EU rice stores grow
AIRI said it would become increasingly difficult to find the storagecapacity for the rice as stocks continued to mount.

"Unless urgent action is taken, it will be almost impossible to find thewarehouses to keep this enormous quantity, and the cost to the EuropeanUnion could exceed three million euros per month, as well as the cost ofacquiring the rice," it said.

AIRI said rice was ideally suited to feed the world's hungry as it is themain cereal consumed globally, accounting for more than 66 kilos per headannually. Rice can be transported, distributed, cooked and conserved easily.Italy's rice production is used domestically for the traditional dishrisotto, consumed mainly in the North of the country, as well as for theanimal feed industry.

Carriere said several African countries, such as Mozambique, Madagascar andthe Horn of Africa region, as well as Iraq, North Korea and Indonesia, andsome Latin American countries, would benefit greatly from rice aiddeliveries.

The Rome-based UN Food and Agriculture Organisation said on Monday thatnearly 16 million people needed emergency food aid in drought-stricken eastAfrica and the threat of starvation was severe in some areas.

"Excessive rice in the EU could be used to reach the needy, and wouldrepresent at the same time a considerable saving of resources," AIRI said.