Business Standard

Food output estimate crosses target

- ABHISHEK WAGHMARE

India will produce about 277.5 million tonnes (mt) of food grains in 2017-18 as against the target of 274.5 mt for the agricultur­al year, according to the second advance estimates of crop production released by the department of agricultur­e, cooperatio­n and farmers welfare on Tuesday.

India will produce about 277.5 million tonnes (mt) of food grains in 2017-18 as against the target of 274.5 mt set for the agricultur­al year, according to the second advance estimates of crop production released by the department of agricultur­e, cooperatio­n and farmers welfare on Tuesday.

A record 24 mt of pulses are expected to be produced in 2017-18, and with imports of 5.1 mt already completed in the April–December period, this year will witness a consecutiv­e year of over-supply on pulses to the tune of 30 mt, as against annual consumptio­n of 23 mt in India.

Rice production of 96.5 mt trumped the first advance estimate of 94.5 mt. Similarly, two nutri-cereals, maize and bajra, exceeded their first advance estimate to take overall production to record levels.

Sugarcane production had fallen 12 per cent in 2016-17 to 3 billion tonnes, but has recovered 15 per cent to 3.5 billion tonnes this year. A recent survey estimated that sugar production in Maharashtr­a has doubled this year, which will improve India’s sugar output by 12 per cent to 29 mt.

The second advance crop production estimates were released on February 27, almost a fortnight later than their normal date of release of February 15.

Production of pulses in India had fallen to a six-year low of 16.3 mt in 2015-16 after back-toback drought conditions in major growing regions, inflating their wholesale and retail price to record levels. This had prompted farmers across states like Maharashtr­a, Karnataka and Madhya Pradesh to sow more, which resulted in a supply glut in 2016-17.

In 2017-18, after a price crash, sowing of tur and moong subsided, but that of urad (kharif crop) and gram (rabi crop) has continued to rise in the current year. With a considerab­le increase in uradand gramarea and production, and a considerab­le reduction in soybean and wheat, Madhya Pradesh effectivel­y impacted nationwide crop estimates this year.

Record production of kharif pulses — red gram, green gram and black gram —at 9.6 mt in 2016-17 dwindled in 2017-18 to 8.8 mt, but rabi pulses, held up by chana (gram), are expected to post a record production of 15.1 mt, from 13.5 mt in the previous year.

India effectivel­y managed a surplus of about 13-14 million tonnes of pulses in two years, courtesy 30 mt of production in addition to 5-6 mt of imports for two consecutiv­e years. This surplus would most probably get shipped out of India — after opening up of exports in December — or get stocked by traders to enter the market in times of shortage if the upcoming year shows poor monsoon and agricultur­al performanc­e.

Wheat sowing went down 20 per cent in Madhya Pradesh, reducing its nationwide production from 98.5 mt in 2016-17 to an estimate of 97 mt in 2017-18. All major non-food crops — oilseeds, cotton, jute and sugarcane — are estimated to be produced at levels lower in 2017-18 than their all-time record which was achieved at some point in the last decade. Overall production growth is being led by revival of foodgrain production after consecutiv­e droughts of 2014-15 and 2015-16, as against non-food crops which dominated agricultur­al growth in the crop sector in the last decade.

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