Record foodgrains production in 2011 facilitates Food Bill

The agriculture sector performed exceedingly well in 2011, with record foodgrains production of over 240 million tonnes giving enough leeway for the government to lift a ban on exports of wheat and non-basmati rice and introduce the Food Security Bill in Parliament.

Farmers' long-standing demand for crop loans at a 4% rate of interest was met during the year, although with a rider that the facility would be available to only those farmers that pay their crop loans on time.

A sharp rise in the farm credit target by Rs 1,00,000 crore to Rs 4,75,000 crore and the launch of new schemes with a total outlay of Rs 1,500 crore to raise production of nutri-cereals, fodder, palm oil, vegetables and protein supplements were the other major highlights of the year.

These items -- and not wheat and rice -- were the major contributors to food inflation, which remained high almost throughout the year before falling sharply to nearly a four-year low of 1.81% for the week ended December 10.

Helped by timely and bountiful rains last year, the agriculture sector bounced back with a record harvest of 241.56 million tonnes of foodgrains in the 2010-11 crop year, with production of wheat, pulses and coarse cereals touching an all-time high.

In the 2009-10 crop year (July-June), foodgrains production fell by 16 million tonnes to 218 million tonnes due to a severe drought in 2009.

A noteworthy performance was seen in pulses and oilseeds production, on which the government has focused its efforts to make India self-sufficient and reduce dependence on imports.