labels: Agriculture, Economy - general
Economic Survey-2007-08: Food stocks comfortable even as production declines; non-food crops exceed target news
28 February 2008

In the current year, as per the second advance estimates of crops' production, a shortfall is expected in rabi crops.

The Economic Survey 2007-08 presented in Parliament today by the finance minister says that the overall production of foodgrains in 2007-08 is expected to fall short of the target by 2.2 million tonnes though it is expected to be 10.1 million tonnes higher compared to the second estimates for 2006-07.

The overall production of foodgrains was estimated at 217.3 million tonnes in 2006-07, an increase of 4.2 per cent over 2005-06. The Survey, however, pointed out that compared to the target set for 2006-07, it was lower by 2.7 million tonnes.

The increase in production in 2006-07 was largely because of higher production of wheat by 6.5 million tonnes (9.3 per cent) and of pulses by 0.8 million tonnes (6 per cent).

The actual production of foodgrains on an average was 93% of the target. Production of sugarcane and cotton, however, overachieved their respective targets in 2005-06 and 2006-07.

The foodgrain reserves in the country as on January 1 2008 was 19.2 million tonnes comprising 11.5 million tonnes of rice and 7.7 million tonnes of wheat.

This, along with projected arrivals of wheat imports, would be adequate for meeting the requirement under TPDS and welfare schemes during the current financial year, says the Economic Survey.

Non-food crops exceeds target
The production of non-food crops, particularly sugarcane, cotton and jute (including mesta) exceeded both the targets and the levels achieved in the previous year, though production of oilseeds declined by 3.7 million tonnes or 13 per cent compared to the production in 2005-06.

Production of sugarcane is estimated to exceed the target, though it will be lower than the previous year. A shortfall of 2.8 million tonnes (10 per cent) is expected in the production of oilseeds compared to the target though it is still expected to be higher by 2.9 million tonnes compared to the final estimates of 2006-07.

New irrigation capacity added
Substantial irrigation potential has been created in the country through major, medium and minor irrigation schemes. The total irrigation potential in the country has increased from 81.1 million ha in 1991-92 to 102.8 million ha in 2006-07.

Irrigation is one of the six components for the development of rural infrastructure under the Bharat Nirman. During 2005-06 and 2006-07, 1.68 million ha and 1.94 million ha of irrigation potential, respectively, is reported to have been created.


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Economic Survey-2007-08: Food stocks comfortable even as production declines; non-food crops exceed target