India's rice output may touch 99 mn tonnes in 2010-11: USDA

Ahead of the planting of kharif rice crop from next month, the US Department of Agriculture (USDA) has pegged India's rice output up by 13 per cent at 99 million tonnes in 2010-11, on higher prices and a normal monsoon.

Last year, the country's rice production had slumped to a five-year-low, at 87.5 million tonnes, because of a poor monsoon, it said in its latest report.

About 85 per cent of the country's total rice output is grown during the kharif season (between June and September), while the rest of the 15 per cent is cultivated during the rabi season (between November and February).

"The major factors shaping the 2010-11 crop outlook are both market and weather-related. Rice production is projected to increase to 99 million tonnes (milled), up 13 per cent from 2009-10," the USDA said.

The official forecast of a normal monsoon, which was announced recently, and the higher minimum support price (MSP) for rice are expected to boost farmers' planting intentions in the upcoming kharif season.

Farmers expect procurement prices (MSP) to either improve or remain firm in 2010-11, it noted. Last year, the government increased the minimum support price (MSP) of rice to Rs 1,000 per quintal for the common variety, and Rs 1,030 per quintal for the Grade A variety.

The USDA further said, "If the current weather forecast holds, it will be in contrast to last year’s unfavourable monsoon season."

While the monsoon is critical for the rain-dependent kharif crop, it also plays an important role in replenishing irrigation reservoirs vital for rabi (winter) crop irrigation.

The area under cultivation is expected to increase by 10 per cent to 45 million hectares from last year, while yields are expected to rise by 3 per cent to 3.3 tonnes per hectare. Punjab, Haryana and Uttar Pradesh produce the most rice during the kharif season.