December 9, 2010

Indian agricultural output seen to jump amid normal downpour

Agriculture activities are in full swing across India and the yield may see a boost in the midst of a normal monsoon in 2010, even though the land under cultivation is still the same.

"Agriculture is now starting to improve as the country witnessed a normal South-West monsoon (June-September) in 2010 after a 29% deficiency in 2009," according to a Mid- Year Analysis of the Economy for 2010-11 tabled in Parliament by Finance Minister Pranab Mukherjee.

A total of 912.8 mm of rainfall was received during the 2010 South-West Monsoon, 102% of the long period average (LPA) of 893.2 mm, it said.

Out of 597 meteorological districts for which data was available, 173 districts (29%) received excess rainfall, 240 (40%) normal, 173 (29%) deficient and the remaining 11 (2%) scanty rainfall during the season.

The acreage under cultivation has more or less remained constant, but productivity gains are expected.

Last year, the kharif season started on a good note, with sowing targets for most crops met. However, due to drought-like conditions over almost half the country, the crops were damaged, hitting productivity.

The area earmarked for cultivation with corn and other crops in 2010 is higher than last year. Yield gains will be large, improving production sharply.

The first estimates for kharif production in 2010-11 were released by the Agriculture Ministry in September this year and pegged production of foodgrains at 114.63 million tonnes and oilseeds at 17.27 million tonnes.

The government has raised MSPs (Minimum Support Prices) for 2010-11 kharif and rabi crops to be marketed in 2011-12.

The increase is particularly large for pulses in order to encourage higher investment and production, especially in light of a decline in production last year.