Inflationary pressures to put curbs on agri exports
The inflationary pressure, which has been a constant cause of worry for the government, is expected to attract restrictions on agricultural exports, Centre for Monitoring Indian Economy (CMIE) said in its monthly review here.
By PTI |
MUMBAI: The inflationary pressure, which has been a constant cause of worry for the government, is expected to attract restrictions on agricultural exports, Centre for Monitoring Indian Economy (CMIE) said in its monthly review here.
The high international prices and the consequent increase in exports has caused inflation to surge (hovering over 7%) it said, adding that this prompted the government to clamp down on exports of some agri commodities in order the improve availability and cool down prices.
Demand for agri commodities remained strong during FY08 as reflected in the surging price in the domestic and global markets. This helped farmers garner higher returns for their goods, the report stated.
Demand supply mismatch in the international market, pushed up prices of essential commodities like rice and cotton. In FY08, cotton price shot up by 14% depending on quality. The high global price made export more remunerative.
Non-basmati exports shot up by 55% during April and in FY07, 3.7 million tonnes of non-basmati rice was exported. Cotton exports also increased to 0.9 million tones in Arpil-December 2007 from 0.6 million tonnes in the same period of the previous year.
India���s agricultural output is estimated to have moved up by 2.8% during FY08 after rising by 4% in the previous year, the report said.
According the report, rice production has been pegged at 94 million tonnes in FY08, as against 93.4 million tonnes a year ago.
Higher acreage accounted for this rise since yield is not expected to show any significant improvement, CMIE said. In FY08, wheat production is estimated to have crossed 75 million tonnes for the second year in a row. In addition to the marginal fall in wheat acreage, a delay in sowing had raised fears of a lower crop.
However, favourable weather conditions in the form of an extended cold spell during January-February led to a sharp improvement in productivity. Consequently output is estimated at 75.4 million tonnes, compared to 75.8 million tones in the previous year.
In addition, surging exports, driven by a shortage in international market and a consequent upturn in price, encouraged large area under cotton in FY08.
The high international prices and the consequent increase in exports has caused inflation to surge (hovering over 7%) it said, adding that this prompted the government to clamp down on exports of some agri commodities in order the improve availability and cool down prices.
Demand for agri commodities remained strong during FY08 as reflected in the surging price in the domestic and global markets. This helped farmers garner higher returns for their goods, the report stated.
Demand supply mismatch in the international market, pushed up prices of essential commodities like rice and cotton. In FY08, cotton price shot up by 14% depending on quality. The high global price made export more remunerative.
Non-basmati exports shot up by 55% during April and in FY07, 3.7 million tonnes of non-basmati rice was exported. Cotton exports also increased to 0.9 million tones in Arpil-December 2007 from 0.6 million tonnes in the same period of the previous year.
India���s agricultural output is estimated to have moved up by 2.8% during FY08 after rising by 4% in the previous year, the report said.
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The slowdown was on account of the modest increase of 1.2% in foodgrain production. Non-foodgrain output surge by 4.9%. According the report, rice production has been pegged at 94 million tonnes in FY08, as against 93.4 million tonnes a year ago.
Higher acreage accounted for this rise since yield is not expected to show any significant improvement, CMIE said. In FY08, wheat production is estimated to have crossed 75 million tonnes for the second year in a row. In addition to the marginal fall in wheat acreage, a delay in sowing had raised fears of a lower crop.
However, favourable weather conditions in the form of an extended cold spell during January-February led to a sharp improvement in productivity. Consequently output is estimated at 75.4 million tonnes, compared to 75.8 million tones in the previous year.
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The report said that cotton production is estimated at 27 million bales during FY08, as against 22.6 million bales in the previous year. This reflects a hefty rise of 19.5%. Production has been booming for the past five years. The use of Bt seeds on a higher area led to a significant improvement in yield.In addition, surging exports, driven by a shortage in international market and a consequent upturn in price, encouraged large area under cotton in FY08.
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Production of oilseeds is estimated to have gone up by 7% to 26.7 million tonnes. In the previous year, output had recorded a steep drop of 14.5%. Higher production for groundnut and soyabean is likely to have more than compensated for the steep fall in rapeseed and mustard production, the report said.Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
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