INDIA: Govt estimates bumper cotton, oilseed output

INDIA: Govt estimates bumper cotton, oilseed output

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The year 2011-12 will witness bumper cotton and foodgrain output. According to the agriculture ministryΆs annual crop estimates for the year, the cotton crop will be 34 million bales (1 bale=170 kg), over 30 per cent higher than last year. Importantly, the year will be one of bumper foodgrain and oilseeds production.

Total production of oilseeds is expected to be around 33.6 mt (32.2 mt last year). Jute and mesta combined is projected at 12.3 mt (11.5 mt), while sugarcane and oilseed production are estimated to be 35 mt (31.5 mt) and 33.6 mt (32.2 mt), respectively.

After producing a record 244.5 mt of foodgrain in 2010-11, India is set for another year of record output, touching 245 mt in 2011-12, albeit a marginal growth year over year.
In the latest production estimates finalised by the ministry, rice production, in the kharif and the rabi season combined, is pegged at 102 mt, same as last year.

Wheat production is estimated at 84 mt as against 82 mt last year. Coarse cereal crop production is estimated a bit lower at 42 mt as against 44 mt. Coarse cereal crops include jawar, maize, bajra, ragi, small millets and barley. The pulses output estimate is pegged at 17 mt (16.5 mt), which according to market sources is not very encouraging and leaves scope for imports.

While kharif is the main monsoon season in India that runs from June- September; rabi is the winter season for sowing of crops, usually ranging from November till April. The main kharif crops are rice, coarse cereals, cotton, jute, mesta, sugarcane and oilseeds, while the main rabi crops include wheat, a small part of jawar, barley, pulses and oilseeds.

Officials explained that 2010-11 in itself was a year of record output and therefore, one year cannot result in drastic change in yield or acreage of crops. But, 2011-12 will also be a good year as far as agri production is concerned.

“For pulses and oilseeds, we have taken measures for increasing the area of production. This, however, will take time. For example, there is a technology mission on oilseeds and pulses. On the other hand, the second green revolution in eastern India to increase foodgrain output has already started. To this effect, the government has also announced attractive minimum support prices (MSP) for foodgrains this year. But this will also take time,” explained a highly placed official. MSP is a floor price announced by the government for all crops below which a farmer cannot sell the crops.

Besides the lucrative MSP announced this year for cotton, officials also attribute another reason for increasing acreage. They say the agriculture ministry, of late, has been laying greater emphasis on the eastern region for paddy and wheat output, since the soil capacity for these foodgrains is saturated in the traditional food belt in the north. Therefore, the ministry, based on the recommendation of the Commission for Agricultural Costs and Prices, has advised farmers to shift to cash crops like cotton and sunflower.

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