India's 2009 Wheat Output Will Post 2.3% Year-on-year Growth To 76,600 Tonnes

July 29, 2009 - PRLog -- India's 2009 wheat output will post 2.3% year-on-year growth to 76,600 tonnes. India benefits from a major agricultural industry, yet there is still a constant struggle to meet the needs of the vast, and still growing, population. As discussed in the recently published India Food & Drink Report for Q309, both the government and private investors are looking for ways to improve the country's agricultural output - particularly as the Indian population expands and consequently encroaches on arable acreage, while at the same time demanding more foodstuffs.

While the country has allowed the introduction of genetically modified (GM) crops in order to improve yields, it has also taken other measures to guarantee domestic supplies, such as a recent ban on wheat imports. However, it was announced in March that the Indian government may give the green light for wheat exports, easing curbs that have been in place for around two years, in anticipation of a bumper harvest for 2009. Buoyed by better-than-market state support prices, local farmers have continued plantings despite global wheat prices plummeting from 2008's mid-year highs. The expectation of an equally good yield in 2009 – the report predicts that India's 2009 wheat output will post 2.3% year-on-year (yo- y) growth to 76,600 tonnes - presents the rather more favourable headache of making room in storage facilitates for the current year's crop. With 2009 also predicted to be a record year for domestic rice production, the country should be able to resume basmati rice exports. However, the government has yet to reach a decision, with repeated delays having arisen owing to the country's elections.

Meanwhile, in April it was announced that the US-based Monsanto, a leading seeds and traits company, in collaboration with Indian firm Maharashtra Hybrid Seed Company (Mahyco), is to introduce a new biotechnological cotton seed that is designed to increase yields by up to 35%. Despite significantly improving crop yield potential, Monsanto's tactics in India have often received vociferous criticism. Some believe the claims regarding greater output to be spurious, and criticise Monsanto for dumping unsuitable technologies on the Indian market. Furthermore, there is the argument that introducing pest- or weed resistant seeds will give rise to more resilient pests, thus necessitating further biotechnological solutions, to the benefit of the company but exploiting farmers.

However, as the country's vast population continues to grow, demanding more foodstuffs, the report foresees Monsanto becoming stronger and more influential in the domestic market, particularly in the socially important areas of rice and wheat production; there have already been talks about beginning research and development (R&D) funding in these areas. Ensuring that this issue takes priority are reports such as those published in April by Mexico's International Maize and Wheat Improvement Centre (CIMMYT), which cautioned that India might become a net importer of wheat by 2020 unless it is able to raise productivity, which has stagnated at an average 2.7 tonnes per hectare (ha) for the last six years. The report suggested that India needs to assess all options - including GM technology and hybridisation - to revive productivity growth, meaning that, despite such controversy, Monsanto will likely increase its business activities in India.

http://www.companiesandmarkets.com/r.ashx?id=C6WWV84N6144637

# # #

Browse thousands of market research reports covering major markets, companies and countries. Www.companiesandmarkets.com is a central source of market research reports from the world’s leading analysts and report publishers.