Backed by India, 2012 world wheat output seen at 690 mn tonnes

Helped by record output in India, the global wheat production is estimated to be the second highest ever at 690 million tonnes in 2012, United Nation's body FAO said.

World production of the essential food commodity is estimated at a record high of 700 million tonnes in 2011, Food and Agriculture Organisation (FAO) said in its latest report.

"FAO's first forecast for world wheat production in 2012 stands at 690 million tonnes, 10 million tonnes less than last year's record high, but still the second largest crop," FAO's quarterly Crop Prospects and Food Situation report said.

Plantings remain high in response to favourable price prospects but yields are assumed to return to average after bumper levels last year in some countries, it added.

"In Far East Asia, prospects for the 2012 wheat crop are generally favourable with output expected to reach last year's record level due in particular to good gains in India," the global body on farm sector noted.

In India and Pakistan, record high crops are expected, reflecting adequate supplies of water for these mostly irrigated crops and good price prospects encouraging an increased use of inputs to boost yields, it added.

According to FAO, wheat production in India is expected to rise by almost 2% to 88.3 million tonnes in 2012 from 86.9 million tonnes in 2011.

The Agriculture Ministry in its 2nd advance estimate has pegged wheat output in the country at 88.31 million tonnes in 2012-12 crop year (July-June) from 86.87 million tonnes in the year-ago period.

In Pakistan, output of the essential commodity is pegged to rise marginally to 24.4 million tonnes in 2012 from 24.3 million tonnes in 2011, it added.

In China, however, no significant change in acreage is expected and output may fall slightly from last year's record high, assuming a return to average yields after the bumper 2011 levels, FAO said.

Wheat output in China is forecast to decline by 2% to 115.5 million tonnes in the current year from 117.9 million tonnes in 2012, it added.