It is expected that the food grain production will do well, but the
sugarcane and cotton production is projected to fall in the financial year of
2012-13. It is said by the economic think tank CMIE itself.
Centre for
Monitoring Indian Economy (CMIE) said in its monetary report that higher output
of rice and wheat, along with a recovery in production of course pulses and
cereals, is expected to boost the overall production of the food grains, which
is projected to grow by 0.6% to 247.6 million tonnes in 2012-13.
But the sad news
is that the production of sugarcane and cotton is expected to decline and limit
production of non-food crops to levels lower than the last year.
According to the
tentative sowing report, acreage of sugarcane has scaled up by over two percent
to 48.6 lakh hectares as of May 8. Though the cultivation of sugarcane is much higher
and it expects it to slowdown in the subsequent period, CMIE said.
However, CMIE
expects sugarcane production to fall by 0.9% to 342.5 million tonnes in FY 13.
It is mainly due to a fall in the acreage.
It has to be
mentioned here that in FY 12, a sharp increase in cotton acreage had resulted
in record production of 35 million bales. However, this excess production was
not being able to match with similar demand during the corresponding marketing
seasons. As a result of that cotton prices plunged, which is eventually causing
huge losses.
CMIE expects
these losses to motivate cotton growers to turn into alternative crops in the
current season. Cotton production is expected to fall by a huge 7.8 % to 32.2
million bales in FY 13.
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