Record grain output will help new government

NEW DELHI Fri May 16, 2014 12:42pm IST

A farmer winnows paddy crops at a field on the outskirts of Agartala, November 28, 2013. REUTERS/Jayanta Dey/Files

A farmer winnows paddy crops at a field on the outskirts of Agartala, November 28, 2013.

Credit: Reuters/Jayanta Dey/Files

Related Topics

NEW DELHI (Reuters) - India is set to harvest a record 264.4 million tonnes of grains in the crop year that ends in June, the farm ministry said on Friday, easing pressure on a new government that may have to deal with poor monsoon rains later in 2014 due to the El Nino weather pattern.

"Record output in wheat and rice provides a breather against the El Nino threat," said Tajinder Narang, a trade analyst.

He added that record output would help the new government continue the country's policy of unrestricted grain exports in the short term.

Opposition candidate Narendra Modi will be the next prime minister of India, with counting trends on Friday showing the pro-business Hindu nationalist and his party headed for a resounding election victory.

Total rice output is expected to hit 106.29 million tonnes in the current crop year, up from 105.24 million tonnes the year before. Wheat output is likely to reach 95.85 million tonnes, compared to 93.61 million tonnes produced a year earlier.

Farmers in India, the world's second-biggest rice and wheat producer, harvested 257.13 million tonnes of grains in the crop year to June 2013.

The weather office on Thursday said annual rains could hit the southern Kerala coast on June 5, roughly five days behind their normal arrival.

Monsoon rains irrigate nearly half India's farmland.

Record rice and wheat output will boost stockpiles, providing a cushion against a possible El Nino, which forecasters around the world say is increasingly likely.

El Nino is a weather pattern marked by heating up of sea surface temperature in the Pacific Ocean, and usually causes droughts in the Asia Pacific including India.

Since grain export restrictions were eased three years ago, India has emerged as the world's top rice exporter and a key supplier of wheat to Southeast Asia and the Middle East.

(Additional reporting by Ratnajyoti Dutta)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Diplomacy

REUTERS SHOWCASE

Maruti Results

Maruti Results

Maruti Suzuki says profits helped by sentiment, not growth.  Full Article 

Tracking the Monsoon

Tracking the Monsoon

Monsoon turns patchy after revival.  Full Article 

ICICI Profit Up

ICICI Profit Up

ICICI Bank Q1 net profit up 17 percent, beats estimates.  Full Article 

Pharma Sector

Pharma Sector

FDA raises concern over drug production process at Cadila  Full Article 

Coal India

Coal India

Some Coal India mines may be run by foreign firms - minister  Full Article 

Fuel Prices

Fuel Prices

IOC to cut petrol prices by 1.5 pct from Friday  Read 

Economic Pulse

Economic Pulse

India's infrastructure output growth hits 9-month high in June  Full Article | Related Story 

Joint Bid

Joint Bid

ONGC, Oil India bid $1.5 bln for stake in Murphy Oil's Malaysia assets - sources  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage