Oilseeds production to grow 16% in FY08

The production of oilseeds is estimated to be 16 per cent higher at 26.9 million tonnes during this financial year against 23.3 million tonnes in 2006-07, the Centre for Monitoring Indian Economy (CMIE) said in its May review.

Apart from the yield, area under oilseed cultivation is expected to go up by 1.3 million hectares to 28 million hectares in FY08. The expected increase in production would largely contribute towards a higher 5.5 per cent growth in non-food crop production in FY08 against 1 per cent decline in FY07, it said.

As a result, crop production is also projected to grow by 2.6 per cent against the nominal 0.3 per cent increase in FY07, a report said.

On the other hand, foodgrain production is projected to grow by a marginal 0.4 per cent. During 2007-08, rice production is projected to stagnate at previous year's level of 91 million tonnes, while wheat production is projected to rise to 74 million tonnes from 73.7 million tonnes in 2006-07.

Growth in the agricultural sector, including crops, livestock, fishing and forestry and logging, works out to 3 per cent in FY08 against 1.3 per cent growth estimated for FY07, it said.

Livestock, which has a 23 per cent share in the overall agriculture sector, is expected to grow at 4 per cent. But, its contribution would only be 0.94 per cent in the overall growth of the sector. Fishing, forestry and logging segment has a 9 per cent share in overall agriculture and is projected to grow 3 per cent. This segment would contribute 0.25 per cent to the sector.

Expectation of normal rainfall in the coming monsoon and comfortable reservoir levels are the two major factors in favour of agricultural sector this year, CMIE report said.

As per the release of India Meteorological Department forecast for 2007, south-west monsoon rainfall during June-September 2007 would be 95 per cent of the long period average.

Live storage of 76 reservoirs in the country was 46.35 billion cubic metres till April 12, 2007, which was 43 per cent more than the average of last 10 years, the report said.