Overall crop output may rise 4%

The overall growth in crop production during 2007-08 (FY08) works out to 4.1 per cent owing to rise in kharif crop production and expected good rabi crop, the Centre for Monitoring Indian Economy (CMIE) said in its monthly review.

"Production of all major crops is expected to see growth in FY08. However, growth would be more pronounced in case of non-food crops such as oilseeds, cotton and sugarcane," CMIE said.

Higher commodity prices and satisfactory rainfall encouraged farmers to bring more area under these crops, it added.

"The overall growth in crop production works out to 4.1 per cent in FY08. This will be the third consecutive year of good growth. After falling by 3 per cent in FY05, crop production was up by 7.4 per cent in FY06 and 3.2 per cent in FY07," CMIE said.

In India, kharif harvesting has begun. Production of kharif crop is expected to be higher than a year-ago season. Areas under foodgrain, oilseeds, sugarcane and cotton in the kharif 2007 was more than in 2006. CMIE's estimate for oilseed production is at 27 million tonnes during FY08 compared with 23.9 million tonnes produced in FY07.

Acreage of oilseeds was up by 9.2 lakh hectares to 177.6 lakh hectares in kharif 2007 compared With 168.3 lakh hectares sown a year ago.

Among oilseeds, production of groundnut will rise to 8 million tons in FY08 from 4.9 million tonnes in FY07. Soyabean production is also expected to remain higher on account of 8 per cent increase in acreage, CMIE said.

Sugarcane production is estimated at 365 million tonnes, it added.

The area covered under cotton was also up to 93 lakh hectares compared with 89.5 lakh hectares. Out of this, 55 per cent was under Bt cotton. Cotton production is estimated by CMIE at 27 million bales.

CMIE pointed out that the cotton crop has been benefited from an increase in area under Bt cotton. Between FY03 and FY07, cotton production has increase from 8.6 million bales to 23 million bales on account of rise in cultivation of Bt cotton, it said.

Acreage of pulses was up by 10 per cent to 125.5 lakh hectares in kharif 2007, compared with 113.7 lakh hectares in kharif 2006. Good monsoon and higher prices of pulses, at the time of sowing encouraged farmers to cultivate more pulses, CMIE stated.