India eyes bumper grains crop

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NEW DELHI – India may harvest its second highest amount ever of food grains in 2010-11, including a record 81.47 million tonnes wheat, its farm minister said on Wednesday, which could help the government in reining in food inflation.
The cost of food for families in Asia’s third-largest economy has soared 17 percent over the past year, latest data showed, boosted most recently by gains in onions and other everyday vegetables as harvests are hit by unseasonably heavy rains. India is likely to harvest 232.07 million tonnes grains in 2010-11, sharply higher than the 218.11 million tonnes produced a year ago, Pawar said, when a severe drought hit India’s crops. Output hit a record of 234.47 million tonnes in 2008-09.
“We succeeded in raising food grain production because of higher support prices,” Pawar said, highlighting a sharp rise in the level set by the government as a minimum for rice and wheat in the past few years. India, the world’s second-biggest producer of wheat, plants the grain from October and harvests from March. The production of winter-sown oilseeds is likely to rise by 5.5 percent on a year ago to 9.6 million tonnes, while lentil output will rise by 12.6 percent to a record high of 16.51 million tonnes, a statement from Pawar’s ministry said.
Output of rapeseed, the main winter oilseed crop, is expected to rise to 7.4 million tonnes in 2011 against 6.6 million tonnes in the previous year. Pawar said the government should adopt a liberal approach in deciding on exports of food grains and vegetables. He stressed the need of exports of sugar to support local farmers and mills — a key concern in the farm portfolio.