Mumbai: Foodgrain production is expected to increase by 2.2% in FY 09, the Centre for Monitoring Indian Economy (CMIE) has said in its monthly review here.
CMIE expects foodgrain production to reach 234 million tonnes as compared to 230 million tonnes during FY 08, an increase of 2.2%.
Kharif acreage was down by 2.4% in 2008 due to the absence of rain in the crucial sowing month of July. But increased acreage and favourable weather conditions are expected to boost rabi production, the CMIE report said.
Despite expectations of higher foodgrain output, “Our projection for growth in total crop production during FY 09 stands revised downwards to 1.2% from our earlier estimate of 2.5%,” it said.
The scaling down of the growth rate was due to an upward revision in the Government’s final crop production figures for FY 08 and also on account of “our downward revision in production estimates of some non-food crops in FY 09,” it added.
The final estimate for FY 08 soyabean production was 10.97 million tonnes against 9.4 million tonnes as per the fourth advance estimate.
Sugarcane production was raised to 348.2 million tonnes from 340.6 million tonnes.
“We have also revised downward our FY 09 estimates for the production of some Kharif crops like soyabean and groundnut as yield was expected to be lower in these crops due to unfavourable climatic conditions,” CMIE said.
CMIE expects soyabean production to be 10.4 million tonnes against its earlier estimate of 10.8 million tonnes.
Groundnut production has been also revised downwards to 7.4 million tonnes. Sugarcane crop was expected to be around 304 million tonnes against the earlier projection of 313 million tonnes, it said.
As per the second advance estimate of crop production by the Union Ministry of Agriculture, except rice, gram and rapeseed and mustard, the production of all other crops like wheat, coarse cereals, arhar, oilseeds, cotton is estimated to have declined.