CANBERRA (Dow Jones)--Rice production in Australia hit an 80-year low in 2008 with just 19,000 metric tons produced, down around 99% from peak output of 1.64 million tons in 2001, according to a Grains Report issued Friday by the New South Wales state Department of Primary Industry.

  "This harvest is the lowest since 1928 due to the ongoing drought and the very low water allocations" for irrigation, according to the report.

  Just 2,100 hectares were planted for the latest crop, down from 177,000 hectares for the 2001 crop.

Australian rice exports averaged 580,000 tons a year in the 12 years ended June 2003, but exports have fallen sharply away as production declined in the face of drought, according to official data.

  Production from the Australian rice crop in 2007 was 161,000 tons.


   -By Ray Brindal, Dow Jones Newswires; 612-6208-0902; This e-mail address is being protected from spam bots, you need JavaScript enabled to view it


  (END) Dow Jones Newswires