India rice output may set record

NEW DELHI: India, the world’s second-biggest rice grower, may have a record harvest this year as increased planting offset drought in the East of the country. Production may total 100 million tonne in the year ending June 2011, compared with 89.3 million tonne a year ago, said Vijay Setia, president of All India Rice Exporters’ Association. Output was a record 99.2 million tonne in the year ended June 30, 2009, according to the farm ministry.

“It will be a bumper crop this year as overall rains have been good and the government has distributed hybrid and good quality seeds,” Setia said in an interview from Karnal.

A record harvest may prompt the government to lift a two-year-old restriction on exports at a time when global demand is expected to increase as surging wheat prices encourage buyers to switch to rice. Rice exports from Pakistan, the world’s third-largest shipper, are expected to slump after a flood damaged crops in areas accounting for 90% of agricultural output.

Indian farmers had planted 27.4 million hectare of rice as of August 13, compared with 25.1 million hectare a year earlier, the farm ministry said last week. The condition of the crop in 16 out of the 19 major rice-growing states is “normal,” the ministry said. Crop conditions are “poor” in Bihar and “satisfactory” in Kerala and West Bengal, the biggest grower, it said.

“According to preliminary reports we expect a 75% loss in rice production,” Ashok Kumar Sinha, Bihar’s agriculture production commissioner, said on Monday. The harvest may not be affected by drought in Bihar, Jharkhand, West Bengal and UP, agriculture minister Sharad Pawar has said.