The third year of wet weather from La Nina is "proving a headache" for southern NSW rice growers, as SunRice Group says it may waive a contract provision that charges growers a fee if they don't supply committed levels of paddy.
While the wet weather has been a "great thing for rice production generally" - with water storage at its highest level in decades and water prices at low levels - it hasn't been great for rice planting, the rice giant says.
"I have been speaking with a number of growers and I know that rice preparation has been extremely challenging and some plantings have been delayed," SunRice chairman Laurie Arthur told growers in a letter released to the ASX on Friday.
"This has been the case with my own farms here at Moulamein (in the Murray River area of NSW) where I have had recorded rainfall at levels not previously seen at this time of year.
"The threat of flood is also front of mind for many growers."
Mr Arthur says while it's critical the company receives as much of the committed volumes of paddy as possible, it knows Riverina farmers are worried about the provision in their contracts.
That provision won't be enforced if growers aren't able to plant as a result of the wet weather contracts, Mr Arthur said, although SunRice isn't expecting that outcome.