BANGKOK (Dow Jones)--Global rice trade in 2008 is projected to rise by 1.7% to 29.4 million metric tons, the International Grains Council said in a report Friday.

  Rice imports in East Asia are projected to expand for the third consecutive year to 8.7 million tons, reflecting Bangladesh's 1 million-ton requirement increase due to damages to its paddy fields from cyclone Sidr last November, said the IGC.

  "Also seen higher are purchases by China (mostly of fragrant varieties from Thailand), at 700,000 tons, as well as slight increases in the imports of several smaller buyers. These will more than offset a projected decline in imports by Indonesia," said the report.

Indonesia's 2008 imports are forecast to fall by 400,000 tons to 1 million tons due to an estimated 5% rise in paddy output, while policies to promote domestic production in Africa may limit imports to around 9 million tons.

  Still, a significant recovery in rice imports by Iraq and modestly higher purchases by Cuba and the U.S. is expected.

  Rice exports by Thailand are forecast to decline by 7% this year to 8.7 million tons, following significant depletion of state reserves and a stronger local currency, the IGC said.

  However, "the sharp contraction in sales by the world's leading supplier is expected to be more than offset by increased shipments by others," said the report.

  In Vietnam, rice exports are projected to rise by 200,000 tons to 4.7 million tons, while improved supply prospects in Pakistan should allow recovery in exports to 2.9 million tons from 2.6 million tons last year.

  Among other key suppliers, U.S. exports are also forecast higher this year at 3.5 million tons.