June 18 (Bloomberg) -- Thailand, the world's biggest rice exporter, may harvest 29 percent more from its second crop as record prices encourage farmers to boost plantings, potentially swelling global supplies and easing concerns about a shortage.

Output of rough rice will probably rise to 8.9 million metric tons for the May-to-June harvest, the Office of Agricultural Economics said on its Web site. The crop was planted on 5 million acres (2 million hectares), 27 percent more than a year earlier.

Rice-growing nations across Asia and Africa are ramping up output after U.S. prices surged to a record in April, driven by export curbs by some producers and increased demand. The gain may help to curb export prices, damp inflation and prompt growers such as India and Vietnam to abandon trade restrictions.

``Most farmers have rushed to turn vacant land into a rice field because of the record price,'' said Prasit Boonchuey, president of the Thai Rice Farmers Association. ``They hope to earn a windfall from the high prices.''

Rough-rice futures on the Chicago Board of Trade, which touched a record $25.07 per 100 pounds on April 24, have gained 79 percent in the past year on rising export demand. The most-active contract rose 1.3 percent to $20.05 at 12:46 p.m. in Bangkok.

The benchmark Thai export price for 100 percent grade-B white rice rose to a record $1,038 a ton on May 21, according to the Thai Rice Exporters Association. The latest weekly price, which was $867 a ton on June 11, is due to be released later today.

Corn Record

Soaring prices of rice, corn, wheat and palm oil, coupled with record energy costs, have stoked concern that the world may face food shortages, rising civil unrest and increased hunger. U.S. corn futures touched a record $7.915 a bushel on June 16 after the flooding of farmland. Crude oil reached a record the same day.

United Nations Secretary-GeneralBan Ki-moon called June 3 for a 50 percent increase in world food production by 2030, saying that failure to feed the world's growing population will mean civil unrest and starvation.

Farmers are ``responding to record prices,'' said Kenji Kobayashi, an analyst at Kanetsu Asset Management Co. ``As long as the price stays at a higher level, producers, including Thailand, will try to seed more crops by increasing planting acreage.''

India, which has curbed rice exports to guarantee local supplies, may produce a record 95.5 million tons this year, 2.5 percent more than 2007, a government official said on May 29. Vietnam, which has also restricted exports, is set for bumper harvests, the Vietnam News Agency reported June 6. The Philippines, the world's biggest rice buyer, has vowed to achieve 98 percent self-sufficiency by 2010.

Early Rains

Early rains in Thailand this year raised water levels in dams and reservoirs, boosting supply to rice-planting areas, the ministry said in the Web site statement. The second-crop forecast was reported earlier today by Krungthep Turakij, a Thai newspaper.

Thailand will produce a record 31.2 million tons of rough rice this year, 3.4 percent more than last year, according to a Government House statement on June 6. It takes about 100 tons of rough rice to produce 65 tons of the milled grain.

Thailand plants the smaller, second crop during the dry season from January to March, with farmers using irrigation. The first crop, which usually accounts for about two-thirds of total output, is rain-fed and harvested between September and December.

To contact the reporter on this story: Anuchit Nguyen in Bangkok at anguyen@bloomberg.net

Last Updated: June 18, 2008 02:36 EDT