Wednesday, July 20, 2011

Indian Farmers Produce Record Food Grains

Indian farmers have produced record grain in the just-concluded 2010-11 farm year, even as the world struggled with shortages. Food grains consist of rice, wheat, coarse cereals and pulses. In 2009-10, the total farm output was 218 million tons as compared to 234 million tons in the year before.
The food grain production witnessed an all-time record 241.56 million tons of food grain during 2010-11, surpassing the earlier record of 234.47 achieved during 2008-09, on the back of a good monsoon and higher support prices for farmers.
The record production shows that the sustained focus on food grains and pulses in recent years by the federation has paid off rich dividends. The output of pulses and oilseeds, two key consumption items India is not able to produce enough, also hit a record high.
Major Factors
However, sustaining the record output may be difficult this year because of the poor rainfall in July may affect sowing and eventually the output. By mid-July, the country had received 3 percent below normal rainfall with 13 Meteorological Department’s reporting a deficit. The record food grain output was largely because of a sharp rise in production of wheat to 86 million ton against 81 million ton in the year before.
India has now set a target of 245 million ton food grain for the 2011-12 crop year. The 2010-11 can be termed a very good year. The overall food grains production target is 245 million ton for the 2011-12 crop year.’
According to the fourth Advance Estimates for the year, the food grain production surpassed the previous record of 234.47 million ton achieved in 2008-09 with a good margin and is significantly higher than 218.11 million ton produced in 2010-11. However the estimate is still less than the target of 244.50 million ton set in the beginning of the crop year 2010-11.
All commodities in the basket, including wheat at 85.93 million ton, rice at 95.32 million ton, coarse cereals at 42.22 million ton, pulses at 18.09 million ton, oil seeds at 31.10 million ton have achieved an all time record. Among the coarse grains, maize with a contribution of 21.28 million ton, is significantly higher that the production of 19.73 million ton achieved during 2008-09.
Cotton and Kharif Output
Cotton production also increased from 24.23 million bales in 2009-10 to 33.43 million bales in 2010-11. For the 2011-12 crop year, the Agriculture Ministry has pegged rice production at 102 million ton, 87 million ton for kharif and 15 million ton for Rabi, wheat at 85 million ton, coarse cereals at 41 million ton, and pulses at 17 million ton taking food grain output to 245 million ton.
India will be able to meet the demand under the proposed National Food Security Act for which the requirement is around 60-65 million ton.
Food Inflation
The comfortable food grain stocks has kept a check on prices of cereals, but the rising demand for vegetables, milk and fruits had kept overall food inflation high. Inflation in food articles has dropped to 8.31 percent at the beginning of July from over 20 percent at the beginning of the year.
Minimum Support Price Increases
The sharp increase in Minimum Support Price (MSP), for a number of crops has allowed farmers to apply more inputs to their crop, helping lift output across crops. The MSP for pulses was raised up to 700 per quintal before the cropping season last year. In the case of some pulses, the increase more than 20 percent.

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