India Expects 89 MMT Rice Crop

WASHINGTON - Oct 8/06 - SNS -- Rice production in India is now expected to total 89 million metric tons (MT) in 2006-07, according to a recent report form the U.S. agricultural attache for the country.

Initial estimates compiled by the government show this year's kharif (fall and early harvested) rice production at 75.7 million MT, 2.3 million MT below last year's production. The lower estimate is ostensibly due to both uneven distribution of rainfall in some of the major rice growing states like Uttar Pradesh, Bihar and Assam as well as floods in some states.

Although the decline in kharif rice production is likely to be marginally offset by likely higher rice production in the rabi (winter season) crop because of improved irrigation availabilities, total rice production might fall short of last year's near record production of 91 million MT.

Despite record rice procurement of 28.1 million MT in MY 2005-06 (Oct-Sep), which is 3.5 million MT above the MY 2004-05 procurement, government rice stocks on September 1, 2006 were 7.6 million MT compared with 6.4 million MT a year ago.

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