Foodgrain production is set to rise to a record 277.5 million tonnes in 2017-18, according to the agriculture ministry. Foodgrain production is set to rise to a record 277.5 million tonnes in 2017-18, according to the agriculture ministry. At this level, food production is about 0.9% higher than the 275.1 million tonnes produced in 2016-17, also a record crop year, the second advance estimates of crop production released by the ministry showed on Tuesday. While higher production of foodgrains and non-food crops like cotton and sugarcane suggest a recovery in agriculture is underway, the record foodgrain production and likely fall in output prices puts the spotlight on the proposed minimum support price (MSP) policy. However, the record foodgrain production during the year may not boost India’s farm sector growth rate due to the base effect of 2016-17, which also was a record crop year.

Source: Mint February 27, 2018 19:30 UTC