Govt revise Wheat Production Number - Good for reducing the inflation

The Government on Wednesday revised its forecast for wheat production this year citing improved cultivation by farmers.

Wheat output may reach 73.7mn tons in the year ending June, exceeding 72.5mn tons forecast in February, Agriculture Secretary P.K. Mishra said in New Delhi.

India, world's second-biggest wheat producer, produced 69.35mn tons of the grain last year.

Wheat was planted in 28.45mn hectares (70.30mn acres), up 7% from a year ago, according to the Agriculture Ministry.

Global wheat prices are up 24% in the last 12 months. Wheat for delivery in May rose 1.5% to US$4.2575 per bushel in the after hours electronic trading on the Chicago Board of Trade today, ending three days of losses.

Global wheat prices surged to a 10-year high in October 2006, partly because India resumed imports in February 2006 after six years to meet a shortfall in domestic production.

India's foodgrain production may rise to 211.78mn tons from 208.6mn tons a year earlier, while output of oilseeds may fall to 23.26mn tons from 27.98mn tons,Mishra said.