India expects record grain harvest

FAVOURABLE weather and a rise in the land under cultivation is expected to push India to a record food grain production of 207 million tonnes this year, according to official estimates.

That figure compares with 194m last season and the previous record of 199.3m tonnes in 1996-97.

The final figure for this years crop still depends on the monsoon but agriculture ministry officials report that 32 of 35 meteorological subdivisions in India have received normal or more than normal rain.

Rice has so far been sown over 28m hectares (69m acres), up 800,000 hectares over last season.

If the bumper harvest does materialise the government will maintain a large buffer stock to hold price rises.

• Financial Times 03/09/98 page 36