Centre cuts wheat, rice estimates

The government has lowered its estimate for wheat, rice and pulses production in 2009-10 (July-June), but said the overall production would remain nearly unchanged from its May estimate at 218.20 million tonne (mt), with the losses offset by an increase in coarse cereals’ output.

It had pegged total food grain production in 2009-10 at 218.19 mt in May, down from the previous year’s record of 234.47 mt.
In a statement, the farm ministry said kharif output in the last crop year “was heavily impacted by a severe drought.”

“The impact was especially severe in the case of kharif rice, groundnut and coarse cereals.

In the subsequent rabi season, some ground was regained, but the overall production was still about 16 mt lower than 234.47 mt achieved in 2008-09.

The country suffered the worst drought in nearly four decades last year that clipped food grain production.

The farm ministry, in its fourth advance crop estimates for the 2009-10 crop year, pegged wheat output at 80.71 mt, lower than its May estimate of 80.98 mt. It also pegged rice production for the year slightly lower at 89.13 mt as against 89.31 mt estimated earlier.

A senior government official said while wheat production is seen lower on damage to the late sown crop due to a heat wave during March-April, rice production is seen down on damage to the boro rice crop in eastern India due to excessive rains.

Pulses crop is also seen about 180,000 tn lower than the earlier estimate at 14.59 mt.

Coarse cereals’ output, however, is now seen 640,000 tn higher than May estimate at 33.77 mt.

In the 2008-09 crop year, the country had produced 80.68 mt wheat, record 99.18 mt rice, 14.57 mt pulses and 40.03 mt coarse grains.

The government said total oilseed production in 2009-10 is now seen at 24.93 mt, nearly 2% lower than the previous estimate, and 10% lower than a year ago.

Oilseeds were among the worst affected due to last year’s drought. Sugarcane production, which had also taken a hit due to poor rains, remains substantially lower than the 2008-09 level, but is seen better than the May estimate as winter rains helped raise productivity.

The farm ministry pegged sugarcane production for 2009-10 at 277.75 mt, up from the May projection of 274.66 mt, but lower than the previous year’s 285.03 mt.

Production of all major crops had taken a hit in 2009-10 due to drought and has been one of the key reasons for high food inflation.

Food inflation has remained in double digits since June last year. The government is pegging hopes on a good kharif crop this year to help ease inflationary pressure.
NewsWire18