Cereal output likely to rise 3.5 per cent

FAO puts total production at 250 mt against 241 mt a year ago.

The country's cereal output for the kharif and the rabi season combined is likely to go up by 3.5 per cent this year.

COMFORTABLY PLACED

FAO has estimated the paddy production in India to rise marginally to 140 million tonnes in 2007 against 139.1 million tonnes previous year

Coarse grains output is estimated to rise 5.12 per cent to 34.9 million tonnes

Wheat output is expected to go up by 8 per cent to 75 million tonnes against the government's estimates of 72 million tonnes

With the 2007 assessment year coming to an end, the Food and Agriculture Organisation (FAO) has estimated the country's cereal output this year at 249.9 million tonnes compared with 241.7 million tonnes in the same period last year.

The UN body, responsible for promoting food assurance to the food-starved countries, has estimated the rice (paddy) production in India to rise marginally to 140 million tonnes in 2007 against 139.1 million tonnes previous year. Similarly, coarse grains output is estimated to rise 5.12 per cent to 34.9 million tonnes.

The much hyped wheat output is also expected to go up by 8 per cent to 75 million tonnes against the government's estimates of 72 million tonnes and last year's production of 69.4 million tonnes.

In 2005, the wheat output was 68.6 million tonnes. The rise in production is attributed to increase in rabi acreage and favourable weather in major producing regions across the country.

The FAO forecast is somewhat in line with the government's advanced estimate of total foodgrains output for 2007-08 at a record 219.32 million tonnes, over 2 million tonnes higher than 217.28 million tonnes for 2006-07. The government estimates exclude grains used for animal feed.

According to the government estimates, the kharif grain harvest is expected to be 115.88 million tonnes, 5.3 million tonnes higher than the revised estimate of 110.57 million tonnes for the previous kharif season.

The rabi grain harvest, however, is projected at 103.44 million tonnes, down 3.27 million tonnes, from 106.71 million tonnes previous year.

Meanwhile, with dwindling stocks and continuing strong demand for cereals are keeping international prices at higher levels, despite a record harvest last season. Global wheat prices in January 2008 were 83 per cent more than those of a year ago.

FAO believes that the total world trade in cereals is expected to peak in 2007-08, driven mostly by a sharp rise in demand for coarse grains, especially for feed use in the European Union.