India output at 75 mt: FAO

The country's wheat output in 2008 is seen at 75 million tonnes, nearly the same as last year, United Nations' Food and Agriculture Organisation said on Wednesday.

"In India, the winter wheat area is estimated to be similar to last year's large area and prevailing weather conditions are favourable for crop development," the organisation said in its latest issue of crop update.

The FAO's forecast is quite close to the Indian government's wheat production estimate of 74.8 million tonnes for this season.

Last year's wheat production in the country is now estimated at 75.8 million tonnes.

The FAO said globally, early prospects point to the possibility of a significant increase in the wheat production in 2008, particularly in the wake of near record output likely in China, India and Pakistan and high acreage and yield expected in Europe.

Wheat carryover stocks for the year, however, are likely to shrink to a 25-year low of 147 million tonnes on strong demand and below-average 2007 production in major producing countries.

The FAO said year to June global trade in wheat is forecast to decline to 107 million tonnes, down 6 mln tn from the previous year.

"The reduction is mainly due to lower purchases by India, which, following an increase in production and improved levels of government stocks, is expected to import at least 4 mln tn less than the previous season," it said.

India had imported 5.4 mln tn wheat in the last season.

This year, it has so far contracted import of 1.3 mln tn wheat.

India Commerce secretary G.K. Pillai on Wednesday said the country does not need to import wheat at least till August as the government has adequate stocks.

He said the country was likely to have a carryover of about 5.6 mln tn wheat on Apr 1, higher than the buffer norm requirement of 4 mln tn.