The country's wheat production is estimated to achieve an all-time high of 81.47 million tonnes and the overall foodgrain output is projected to rise by over 6% to 232.07 million tonnes in 2010-11 crop year (July-June), sources said.
The bumper harvest is expected to contribute significantly to the economic growth. The government had yesterday projected 8.6% expansion in the economy, aided by an impressive 5.4% rise in agriculture and allied activities.
Quoting the second advance estimates of agricultural crops, sources said production levels of pulses and cotton are also seen at all-time high of 16.51 million tonnes and 33.9 million bales, respectively.
The government is scheduled to release the second advance estimate of foodgrain production tomorrow. The agriculture ministry releases estimates at different growing stages of the crops.
"Higher cotton production will help in bringing down the prices of fibres, which have gone very high, whereas in case of wheat and pulses there is already low inflation. Still, a higher production is very good sign for the country," Crisil principal economist DK Joshi said.
Wheat output in the previous year was a record 80.71 million tonnes, while the foodgrain production stood at 218.2 million tonnes in the 2009-10 crop year.
Although production of foodgrains (wheat, rice, pulses and coarse cereals) is likely to rise significantly compared to last year's level, it is slightly lower than the record of 234.47 million tonnes in 2008-09.
Rice output is also projected to surge to 94.01 million tonnes against 89.13 million tonnes last crop year.
Last year, rice output had declined by over 10 million tonnes due to drought in 2009-10 crop year, which had severely hit the country.
The country's foodgrain production is showing a sign of recovery due to good monsoon in 2010. The likely increase in foodgrain production in the current year would help the farm sector achieve higher growth and also help contain food inflation, which is over 15%.
Oilseed production is estimated to increase to 27.85 million tonnes in 2010-11 against 24.92 million tonnes in the previous crop year.
Similarly, the sugarcane production is likely to rise to 336.7 million tonnes from 277.7 million tonnes in the previous year.
"Country's policy is not conducive for farmer as the government is not allowing export of certain commodities like rice and wheat and production is excess," Consortium of Indian Farmers Association General Secretary Chengal Reddy said.
