India pegs 2023-24 foodgrain production at record 332.4 million tonnes

The Government on Wednesday released the final crop estimates of the last crop year (July 2023-June 2024) which showed that foodgrains (rice, wheat, nutri cereals, maize and pulses) production in 2023-24 crop year (July-June) was at a record 332.3 million tonnes (mt), up by less than 1 per cent from 329.69 mt in 2022-23. However, looking at the upward revision from the previous third estimates, there has been over 3 mt rise in foodgrains production due to higher output in rice and maize.

The total rice production has been estimated at 137.83 mt, up from 135.76 mt in 2022-23 despite a downward revision for kharif season crop by over 1 mt in the final estimate for 2023-24 from the previous third round of estimate (in April). The rice production in rabi and zaid (summer) season has been recorded a tad lower than their respective levels in 2022-23, despite the government raising the combined output (only two seasons) in the final round by more than 2 mt from the previous round.

The rice output has been recorded at 113.26 mt for kharif season against 110.51 mt in 2022-23, 14.6 mt in rabi (against 15 mt year-ago) and 9.97 mt in Zaid (against 10.24 mt).

Private sector holding

“The Agriculture Ministry may have revised the rice production upward, but why the Food and Commerce Ministries do not believe those as they continue to put export restrictions,” wondered an exporter. The government continues to levy 20 per cent export duty on parboiled rice and has banned shipments of raw rice, including 100 per cent broken variety.

Similarly, the Agriculture Ministry has raised the wheat output to 113.29 mt in the final estimate for 2023-24 from 112.93 mt in the third estimate, despite the fact that the Food Ministry recently tightened the stock holding norm which prescribes maximum quantity any entity/trader can keep at any time, in order to make more grain available in the market. Private sector is said to have kept 10 mt of wheat as per the stock declaration. There has been a ban on wheat export since May 2022.

The final estimate also showed that pulses production declined to 24.25 mt from 26.06 mt in 2022-23 and oilseeds output dropped to 39.67 mt from 41.36 mt.

The Ministry has attributed the decline in pulses, coarse cereals, soyabean and cotton production to “drought-like conditions” in southern States as well as in Maharashtra and also because of a prolonged dry spell during August especially in Rajasthan. There was record 36 per cent deficiency in the rainfall during August 2023.

Sugarcane output cut

Sugarcane production, too, decreased to 453.15 mt in 2023-24 from 490.53 mt in 2022-23 and cotton output fell to 32.52 million bales (1 bale equals to 170 kg) from 33.66 million bales. The soyabean production also recorded lower at 13.06 mt (14.99 mt). However, mustard production rose to 13.26 mt from 12.64 mt.

Maize production in 2023-24 dropped to 37.67 mt from 38.09 mt in 2022-23 due to a big drop in Kharif season’s crop which could not be completely offset despite higher output in Rabi and Zaid (summer) seasons. The Kharif maize’s output has been estimated at 22.25 mt against 23.67 mt in 2022-23. But, the maize production in Rabi season has been pegged at 12.03 mt in 2023-24. up from 11.69 mt a year-ago and that of Zaid crop at 3.39 mt against 2.72 mt.

The output of nutri-cereals (jowar, bajra, ragi and small millets) in 2023-24 has been estimated at 17.57 mt against 17.32 mt in 2022-23.