Agricultural output to rise by 3.8% in FY12: CMIE

07 Mar 2011 Evaluate

According to CMIE, India's agriculture output is expected to rise by 3.8% in 2011-12 on assumption of favourable weather conditions. Production of major crops is projected to grow by 3.1% in 2011-12, while output of minor crops is projected to expand by 5%.Foodgrain production set to grow by 3.7% to 236.9 million tonnes in FY12. It is expected to surpass the record level of 234.5 million tonnes achieved in 2008-09. Higher output of rice and wheat will power this growth. Rice holds a share of 40% and wheat 35% in total foodgrain output.Wheat output has been growing consistently for the last seven years and this trend is expected to continue in 2011-12 fiscal. Wheat output is expected to touch record levels of 82.3 million tonnes in FY12. This increase will be largely driven by wider cultivation in the country's key wheat granaries-Uttar Pradesh, Madhya Pradesh, Punjab and Rajasthan. Prospects for the rice crop are positive for 2010-11 and 2011-12. Output is expected to grow in both the years on account of increased acreage and yield.

Pulses production is also expected to touch record levels in 2011-12. High accruals from pulses will motivate farmers to enhance coverage in 2011-12 as well. Pulses production is expected to expand by 19.3 per cent in 2011-12. Oilseeds production is expected to revive in 2011-12, after declining for two successive years. The demand-supply gap in oilseeds has inflated prices considerably for the last three years. Conducive weather conditions along with incremental returns, has encouraged farmers to increase the acreage of oilseeds in 2010-11. Hence, output is projected to recover by 15 per cent in 2010-11. In 2011-12, it is projected to grow by 2.9 per cent as steady demand will lead to healthy coverage.