INDIA (11 August)

From the beginning to the middle of July, very heavy rainfall in the eastern parts of the country, caused significant flooding in primary rice growing areas. In contrast, more moderate showers over central parts maintained adequate to abundant moisture reserves for coarse grains and oilseeds, and increased moisture for rice across north-central parts. Elsewhere, rainfall was generally favourable for crops in western and southern parts. Overall planting conditions for the Kharif rice crop across the country were reported to be generally favourable. Since the onset of the monsoon, in early June to 6 August, 30 of the country's 35 weather sub- divisions had received normal or above normal rainfall. The ideal planting time for most kharif crops is between mid-June and mid-July. Although planting can take place through late July and early August farmers have to use lower yielding short season varieties if available.

Output of the 1996/97 wheat crop, harvested in March/April, has been officially revised up to 68.7 million tons some 4 million tons than forecast earlier, six million tons above last year and 3 million tons higher than 1995's record production of 65.8 million tons. The record outturn is partly attributed to an increase in area sown in expectation of higher prices and partly to favourable conditions during the crucial months of February and March. The official estimate of total grain production (including milled rice and pulses) has also been revised up to a record 198.2 million tons for the 1996/97 marketing year, compared to 185.04 million tons in the previous year.

Domestic procurement of wheat for 1997/98 is almost complete and it is estimated that some 9.2 million tons have been purchased, around one million tons more than last year but 3 million tons below the 1995/96 procurement of 12.3 million tons. Official reports indicate that foodgrain stocks rose to 17.4 million tons in May (12.6 million tons of rice and 4.8 million tons of wheat) from 16.4 million tons in April. Compared to May 1996, rice and wheat stocks are some 7 percent and 60 percent lower respectively.