April 7, 2011
 

India to set new record for grain production

India's grain production is set to hit an all-time record of 235.88 million tonnes in 2010-11, the agriculture ministry said on Wednesday (Apr 6).

The latest crop approximations beat the projection made in the second advanced approximations in February by three million tonnes. They also surpassed the current production record of 234.47 million tonnes attained in 2008-09.

A crop year in India runs from July to June. Wheat production is predicted to rise by three million tonnes over the February forecasts to 84.27 million tonnes and pulses by almost one million tonnes to 17.29 million tonnes, agriculture minister, Sharad Pawar, said, terming it the largest production quantity ever recorded.

Wheat production in the last year stood at 80.8 million tonnes and pulses at 14.66 million tonnes. The two are among the most commonly imported agricultural commodities. The latest crop projections have come as a reprieve for the government, which has been having trouble for the past several months containing persistently high food inflation.

Food inflation in the year to March 19 stood at 9.5%. The government has been relying heavily on these crop projections to reduce the impact of high food prices.

Analysts say the higher pulses output may not lower the country's import reliance, as consumption is rising along with production. However, it will surely increase the government's bargaining power in the international market.