July 23, 2008

Abundant rain gives India hope for rich harvest of corn, soy

Indian Agricultural Minister Sharad Pawar said he expects a rich harvest of corn, soy and rice crops due to plentiful and well-distributed rains midway through the monsoon season, following a record output of wheat earlier this year.

Monsoon rains, which last from June to September, are critical for farmers as only 40 percent of India's crop fields are irrigated.

High grain production will also help to keep domestic food prices under control, said Saumitra Chaudhuri, an economist from the Prime Minister's Economic Advisory Council.

Officials said India will continue to be self-sufficient in wheat, as it had been for the past two years.

India is the world's second largest producer of wheat and rice. Declining agricultural productivity in recent years led to concerns that India may no longer produce enough food for its population of more than one billion. This adds further pressure on world food prices, which has been climbing due to limited supplies.