India raised its estimate for wheat and rice output to a record-large 252.56 million tonnes in the year to June, up 3.2 percent from a year ago on crop-friendly weather, the Wall Street Journal reported, quoting unnamed farm ministry officials.
The latest forecast is about 2 million tonnes more than a prior projection of 250.46 million tonnes. The higher estimate is largely because of better-than-expected wheat production following a prolonged winter chill in February and March which improved yields, the report said.
The government has revised estimates for wheat output to a little over 90 million tonnes from the previous forecast of 88.31 million tonnes, the report quoted farm ministry officials as saying ahead of the government's estimates due on Monday. This compares with the US Department of Agriculture estimate of Indian's wheat output at 86.9 million tonnes in a report earlier this month. India's all-time high grain harvest this year is likely to exacerbate storage problems with the world's second largest wheat and rice producer sitting on a burdensome stockpile.
India's April 1 wheat stocks at government warehouses were 19.9 million tonnes, nearly five times the official target of 4.0 million tonnes for the quarter ending June 30. Rice inventory for the same period was 33.3 million tonnes against a target of 12.2 million tonnes. Overflowing grain bins helped India ease a ban on exports in September. Rice exports have been brisk since then but lower global prices have slowed down sales of wheat.
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