Mumbai: India, the second-biggest producer of wheat and rice, is planning to release some wheat into the open market as production and government procurement has peaked this year.

Wheat production in the country is expected to touch a record 78 million tonnes in 2008 and the government expects rice production to reach 95.7 million tonnes, this season.

The government procured 22.2 million tonnes of wheat from farmers and may sell the grain in the open market to cool prices, Pawar said, adding it may also consider easing a ban on foodgrain exports by September.

''Production has been the highest since independence, and after fulfilling the requirement of the public distribution system, we are considering releasing wheat in the open market," Pawar said.

The government uses its foodgrain stock mainly to supply grains to the poor under the public distribution system.

The government banned wheat exports in 2006 and rice exports in April this year to ensure domestic availability and check rising food prices.

The government also imposed a ban on futures trading in rice, wheat and lentils as also soybean oil, rubber, chickpeas and potatoes to curb speculation.

Meanwhile, sowing of summer crops such as rice, oilseeds, cotton and sugar cane were satisfactory, Pawar said.

Area under rice was at around 969,000 hectares as of 20 June while sugarcane area was 4.07 million hectares, both lower than last year's.

The area under soybeans more than quadrupled to 103,000 hectares while peanut crop are rose to 237,000 hectares from 189,000 hectares last year.