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Foodgrain output down 2.8 per cent, non-food items down 10.1 per cent

Agriculture output suffered during 1997-98, with foodgrain production declining by 3.1 per cent to 193.10 million tonnes during the year as against last year's record output of 199.30 million tonnes, according to the Reserve Bank of India's Report on Currency and Finance for 1997-98.

The lower foodgrain production during the year was due to the sharp negative growth in the yield levels and marginal fall in area under cultivation.

The downtrend was compounded by adverse agro-climatic conditions prevailing in the country. Although the overall rainfall during the south-west monsoons of 1997 was reported to be slightly above normal, the inter-temporal and inter-spatial distribution was sub-optimal causing extensive damages to the crops, the report noted.

Notwithstanding the lower output levels, total procurement of wheat and rice by the public sector agencies during the period stood higher. This was facilitated partly by positive price support.

However, total off-take of these two foodgrain items fell due to lower consumption under the public distribution system and targeted public distribution system as also negligible open market sales.

Higher procurement of foodgrains amid lower off-take had resulted in higher level of stocks at the end of March 1998. In the wake of significantly increased procurement of wheat in 1998-99, the grain inventory continued to rise further.

The index number of agriculture production for all crops during 1997-98 was placed at 165.7 (base: triennium ending 1981-82=100) and reflects a decline of 5.9 per cent as against growth of 9.5 per cent in 1996-97. The primary contributor to this position was the non-foodgrains, the index for which showed a sharper decline of 10.1 per cent as compared to foodgrains, which were lower by 2.8 per cent, said the report.

Season-wise analysis shows that the 'kharif' foodgrains output at 101.6 million tonnes during 1997-98 was 2.8 million tonnes lower than the previous year's peak output of 104.4 million tonnes.

The 'rabi' output at 91.5 million tonnes was 3.4 million tonnes lower than than the last year's record output of 94.9 million tonnes.

Thus, the shortfall of foodgrains during the year represented the combined outcome of poor performance of both 'kharif' and 'rabi' harvests.

The sharp fall in the output of all major commercial crops, except tea, coffee and rubber, worsened the outlook for the agrarian sector during 1997-98. The decline in non-foodgrains production emanated from lower output of oilseeds, cotton, sugarcane, potato and onions.

The output of nine major oilseeds dropped from 10.9 per cent to 22.2 million tonnes in 1997-98 from the record level of 25 million tonnes the previous year.

Among the nine major oilseeds, the output of groundnut fell by 16 per cent, sesame by 11 per cent, rapeseed/mustard by 29 per cent, linseed by 24 per cent, safflower by 64.8 per cent and sunflower by 12.1 per cent. Soyabean production increased by 25.4 per cent to 6.5 million tonnes.

Cotton crop was affected by extensive spread of plant diseases in all major cotton-growing states. Cotton production at 11.1 million bales reflected an almost 22 per cent decline over the previous year's output of 14.3 million bales.

Sugarcane production also registered decline of 5.4 per cent to 262.2 million tonnes during 1997-98. Production of potato slumped sharply by 27.4 per cent, while onions shrank by 3.5 per cent.

However, output of beverage crops showed encouraging signs during 1997-98, with tea production growing by 3.9 per cent to 810.6 million kg and coffee produce rising by 11.2 per cent to 228 million kg.

UNI

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