December 10, 2007

India, China post record cereal production this year

Surging economic giants India and China have harvested record cereal crops this year with most of the four percent increase in wheat output coming from India, the Food and Agriculture Organization (FAO) has said in a report.

The report states that the total paddy output in Asia this year was 580 million tonnes, slightly more than last year while corn production was recorded at 198.1 million tonnes, which is marginally higher than previous year.

The aggregate wheat output is estimated at 207 million tonnes, posting a four percent increase from last year.

The FAO also reported favourable weather conditions for winter crops, including wheat, in major wheat producing countries in Asia. Also, the cultivable area under wheat is expected to rise in response of high prices, it said.

Despite somewhat rosy picture of the cereal production in Asia, the report speaks of continuing insecurity in Sri Lanka, Afghanistan, North Korea and Timor-Leste and Mongolia, among others.

In India, the agency forecasts paddy production for this year at about 140 million tonnes, close to last year's good harvest, while corn output is estimated at 15.5 million tonnes, some 2 million tonnes above last year.

Similarly, the country's wheat output this year is pegged at 75 million tonnes, nearly 5 million tonnes more than 2006 and the five-year average.

As a result of the good yield, the country's wheat imports in 2007/08 (April/March) has been revised down from 3 million tonnes to 2 million tonnes. India imported nearly 6.7 million tonnes of wheat in 2006/07.