After government estimates said that Indian agriculture could be heading for bumper kharif crop harvest, experts say that it could provide a major fillip to rice exports. However, the development could potentially put increased pressure on the government to buy the crops at the MSPs, if market rates fall below the benchmark rates on bumper arrivals at mandis.
According to government estimates production of kharif foodgrains for 2018-19 crop year (July-June) has been estimated at a record 141.59 million tonne on the back of increased acreage under paddy and expected better yield in pulses and coarse cereals. Notably, last year’s kharif output was 140.73 mt as per the latest (fourth) estimate, up from 134.67 seen in the first estimate.
Interestingly, rice output in kharif 2018-19 is estimated to be a record 99.24 million tonne in this kharif season, up from 97.5 million tonne in the previous season. This could potentially boost up the exports, say experts.
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