Ministry revises harvest figure upwards from February estimates; should help ease food inflation
New Delhi: The country harvested a record 235.88 million tonnes (MT) of foodgrains in the 2010-11 crop year ended June, helped by all-time high output of wheat and pulses, the government announced today.
Economists feel that the higher foodgrain production will help ease food inflation, which stood at 9.5% for the week ended 19th March.
"The third advance estimate figures are available with me, which show an all-time record production of foodgrains at 235.88 million tonnes. Wheat at 84.27 million tonnes and pulses at 17.29 million tonnes are also the highest recorded production ever," agriculture minister Sharad Pawar said at the Kharif Conference to plan the next crop year.
The agriculture ministry has revised upward the estimates for foodgrain production to 235.88 million tonnes (MT) in the third advance estimates for 2010-11 from 232.07 MT in the second advance estimates released in February.
Thanks to a good monsoon, foodgrain production this year was nearly 18 MT higher than the 218.11 MT achieved in 2009-10 that was affected by drought. The previous record was 234.47 MT in 2008-09. In the foodgrains basket, the ministry has upped the production estimates for wheat, rice, pulses and coarse cereals.
"The benefit of higher foodgrain production is already showing in food inflation. The announcement of bumper crop would help further ease pressure on food prices," said DK Joshi, principal economist with credit rating agency Crisil.
According to the third advance estimates, wheat output has risen by 3 MT from the February projection to a record 84.27 MT. The earlier record was 80.8 MT in 2009-10.
Similarly, pulses output has been upped by nearly one million tonnes from the second advance estimate to a record 17.29 MT this year. Last year, pulses production stood at 14.66 MT, while the all-time record of 14.91 million tonnes was achieved in 2003-04.
While rice production has been revised upward marginally to 94.11 MT in 2010-11 from the second advance estimate, it is much higher than last year's output of 89.09 MT.
Coarse cereals production, too, has been revised slightly upward to 40.21 MT in 2010-11 from the earlier estimate. Last year's production stood at 33.55 MT.
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The investment objective of the schemes is to achieve long term growth. The schemes seek to achieve the objective by investing systematically in equity or equity related instruments.
During the first year, the scheme will invest up to 35% in equity or equity related instruments with high risk profile and 65%-100% in debt, money market and securitised debt instruments. In the second year, the scheme will invest up to 30%-70% in equity or equity related instruments with high risk profile and up to 30%-70% in debt, money market and securitised debt instruments. And in the third year, the scheme will invest up to 65%-100% in equity or equity related instruments with high risk profile and up to 35% in debt, money market and securitised debt instruments. Investment by the scheme in securitised debt will not normally exceed 20% of the net asset of the scheme.
The minimum investment amount for both the schemes is Rs5,000. CRISIL Liquid Fund Index and BSE Sensex will be the benchmark index. Bhupinder Sethi and Murthy Nagarajan Venugopal will manage the fund.
ICICI Prudential Mutual Fund new issue closes on 19th April
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The investment objective of the plan is to seek to generate regular returns by investing in a portfolio of fixed income securities/debt instruments which mature on or before the date of maturity of the plan. The tenor of the plan is one year.
The new issue closes on 19th April. The minimum investment amount is Rs5,000.
CRISIL Short Term Bond Fund Index is the benchmark index. Chaitanya Pande is the fund manager.