Production of major crops likely to fall by 2.8% in FY13: CMIE
Mumbai: Major crops production in the country, both food and non-food, is expected to decline by about 2.8 percent in 2012-13, mainly due to lower output of paddy, coarse cereals and pulses following irregular rainfall, economic think-tank CMIE has said.
"Production of non-food crops is projected to fall by 2.7 percent in 2012-13. Along with 2.9 percent decline in output of food grains will lead to a dip in production of major crops by 2.8 percent in 2012-13," Centre for Monitoring Indian Economy said in its monthly report.
In food grains, the fall will mainly due to lower output of rice, coarse cereals and pulses. Irregular rainfall during 2012 southwest monsoon season has an impact on the cultivation of both food and non-food crops during recently completed kharif season, it said.
However, sowing activities in the ongoing rabi season has picked pace and was reported to be 1.2 percent higher than last year, according to the report.
As on January 4, 2013, cultivation of wheat was 1.6 percent higher at 286.4 lakh hectares compared to last year.
The increase in wheat acreage is mainly due to the government's announcement of a hike in the minimum support price (MSP). The MSP of wheat has been increased by Rs 65 per quintal to Rs 1,350 per quintal.
"We expect the growth in wheat acreage to be offset by a fall in its productivity. Wheat production is expected to fall marginally by 0.1 percent to 98.3 million tonne in 2012-13," the report said.
Similarly, rice production is projected to dip by 3.4 percent to 100.8 million tonne in 2012-13.
Poor progress in rice sowing during kharif and rabi season is largely responsible for the fall in output, the report said.
Kharif output accounts for nearly 80 percent of total rice production in the country.
The rice acreage declined by over 4 percent.
During the ongoing rabi season, rice cultivation has decreased by 25.7 percent to 4.5 lakh hectares by January 4, 2013.