Major crop output to fall by 0.5 per cent in 2012-13: CMIE

MUMBAI: Even though the overall agriculture sector is expected to do well in 2012-13, major crop production is projected to fall by 0.5 per cent, economic think tank CMIE has said.

"Major crop production is projected to decline in 2012 -13 by 0.5 per cent, owing to a fall in output of non-food crops like soyabean, cotton and rapeseed," the Centre for Monitoring Indian Economy (CMIE) said in its monthly report.

Cotton production is expected to fall by 7.8 per cent to 32.2 million bales in 2012-13 even though the acreage rose by over 12 per cent to 29.3 lakh hectares by June.

"We expect the cultivation to slow down and settle at level lower than last year. Hence, a fall in acreage is expected to limit production in 2012-13," it said.

A projected growth in output of livestock, forestry and fisheries, along with a modest 4 per cent rise in production of minor crops, is expected to lift growth of the agriculture sector to 2.4 per cent in 2012-13, the city-based research agency said.

Kharif cultivation of foodgrains and oilseeds has been sluggish due to delayed rains. In order to boost cultivation of these crops, the Centre had announced a steep increase in their minimum support price (MSP) last month.

The MSP of paddy was raised by 15.7 per cent, while that of maize and bajra by over 20 per cent for 2012-13.

Weak precipitation has dampened the Central Government's efforts and kharif sowing have been undertaken on a mere 127 lakh hectares by June 29, lower by 12 per cent year-on-year, it said.