Assocham predicts farm sector will grow 8 per cent

Buoyed by the met forecast of a good monsoon this year, industry chamber, Assocham yesterday projected an all time high grain output of 230 million tonnes this year and pegged the agri-growth at eight per cent in the just concluded fiscal (2003-04).

"As per its rough estimates, Assocham is of the view India's grain output will touch a record level of 230 million tonnes by the end of 2004-05", the chamber said.

Claiming the country's foodgrains production has already touched the estimated target of 220 million tonnes by the end of 2003-04, the industry chamber said the crops grown in October-November will have better prospects in terms of production.

"The major reason for this substantially high growth rate is production excedding target in 2003-04 and the forecast that good monsoon conditions will prevail in the coming months," Assocham president MK Sanghi said.

So far, government records show 9.4 per cent agricultural growth in April-December period of the previous fiscal, he said.

The country's cereal production fell from 198.83 million tonne in 2001-02 to 171.26 million tonnes the next fiscal due to severe drought conditions in most parts of the country, the chamber said, "A favourable monsoon and overall hike in the purchasing power capacity will lead to the farmers' community growing a variety of crops, thereby resulting in higher yields this year," it added.