FAI, USDA anticipate “favourable” prospects for Indian rice, maize

Food and Agricultural Organisation (FAO) and the World Agricultural Production report of the US Department of Agriculture (USDA) have made upgrades on their outlook for Indian rice and maize based on the “favourable” prospects for the current rabi crops. The two bodies’ projection on the crop output may ease concerns over food inflation.

Photo Source: Shutterstock

New Delhi, March 10: Revised outlook of Indian rice and maize production indicates ease in food inflation worries. The March Market Monitor report of the UN Food and Agriculture Organization (FAO) and the World Agriculture Production report of the US Department of Agriculture (USDA) upgraded the crop outlook based on the “favourable” prospects for the current rabi crops.

The Market Monitor has said India’s wheat production is “under favourable conditions”, while the USDA expects higher production of the cereal. The outlook may ease concern in the global market over Indian rice production. Last year, rice production got hampered due to inadequate rainfall in key growing regions of West Bengal, Bihar, Jharkhand, Odisha, and eastern Uttar Pradesh.

The Ministry of Agriculture stated that India’s rice production has been estimated at a record 130.84 million tonnes (mt) despite the kharif output dropping over two mt to 108.07 mt this crop year (July 2022-June 2023) from 111 mt last crop year.

The USDA pegged India’s rice production at 132 mt for the marketing year (September 2022- August 2023)- up 2% from last crop year. Agricultural Market Information System (AMIS) said it has raised rice production by 6.4 mt.

The USDA said the harvested area is estimated at a record 47 million hectares (mh), which is up 2% from last year. Further, the agency said rabi rice planting, which accounts for 30% of total production, increased by 25%, offsetting losses that occurred during the kharif season. The USDA has estimated maize (corn) at a record high of 34.6 mt., at par with the Ministry of Agriculture’s projections.

“The harvested area is estimated at a record 10.1 mh- up 1% from last year due to higher prices. Yield is estimated at a record 3.43 tonnes per hectare- up 1% from last year,” it said.

It further said that the maize crop progressed under ideal growing conditions. The Market Monitor, however, noted that wheat futures continued to be affected by low priced Russian wheat offers in the latest tenders from Northern African importers, indicating that the Russian Federation has ample supplies to deliver in the near future.