September 24, 2010

India's summer-sown grains output to rise 10%

The summer-sown grains production of India is likely to rise 10%, the government said, boosting hopes of higher food supply.

In 2010/11, India is likely to produce 114.6 million tonnes of summer-sown grain, a government statement said Thursday (Sep 23).

But higher supplies will not prompt the government to remove curbs quickly on exports of wheat and rice, which were imposed when output shrank and prices rose in the past.

"We cannot take a risk at this time because we are still finalising the quantity that will be required under the food security law," Farm Minister Sharad Pawar said, referring to India's plan to expand the distribution of subsidised grain to the poor.

Last year, a severe drought had dried up crops in several regions, reducing grain output by 12%, boosting food inflation and triggering large sugar imports.

India's summer-sown oilseeds output is expected to rise to 17.3 million tonnes from 15.7 million tonnes, government data showed. Trade officials said they expected a higher crop output than government estimates.

Adequate monsoon showers in most parts of India and cultivation of crops over a larger area has boosted crop outlook this year. Rainfall rose sharply this month, flooding fields in some parts of north India, but the monsoon is expected to start receding by early October, the weather office said.