Agricultural crop production is projected to grow at a modest rate of 2.3 per cent in FY 09, the Centre for Monitoring Indian Economy (CMIE) said in its monthly report here.
However, the collection of non-foodgrain crops would witness a slowdown in the growth from an estimated 4.9 per cent in FY 08 to 3.5 per cent in FY 09. At 2.3 per cent, crop production in FY 09 would be the lowest rate of growth in the past three years. Nevertheless, this would be a substantial improvement over the past trend as it would be the fourth consecutive year of an increase in crop production. India has not seen four consecutive years of positive growth in agricultural crop in the past.
CMIE expects higher output of rice and wheat during FY 09. Wheat production is projected to rise by 1.2 per cent to 76.5-million tonnes. Firm wheat prices are expected to attract farmers to sow larger areas under crop in the next season. The price of wheat is expected to remain firm during the current season even as the fresh crop arrives in the market. This is because of the MSP for rabi-marketing season FY 09 that has been fixed at Rs 1,000 per quintal. Wheat prices are unlikely to fall below this level.
However, the collection of non-foodgrain crops would witness a slowdown in the growth from an estimated 4.9 per cent in FY 08 to 3.5 per cent in FY 09. At 2.3 per cent, crop production in FY 09 would be the lowest rate of growth in the past three years. Nevertheless, this would be a substantial improvement over the past trend as it would be the fourth consecutive year of an increase in crop production. India has not seen four consecutive years of positive growth in agricultural crop in the past.
CMIE expects higher output of rice and wheat during FY 09. Wheat production is projected to rise by 1.2 per cent to 76.5-million tonnes. Firm wheat prices are expected to attract farmers to sow larger areas under crop in the next season. The price of wheat is expected to remain firm during the current season even as the fresh crop arrives in the market. This is because of the MSP for rabi-marketing season FY 09 that has been fixed at Rs 1,000 per quintal. Wheat prices are unlikely to fall below this level.
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