Kharif foodgrains production at 115.3 million tonnes, as per the first advance estimates, is likely to be lower by around five per cent as compared to the previous year, the Reserve Bank of India (RBI) said.

mainly be on account of fall in the production of both pulses and coarse cereals, the apex bank said in its Macroeconomic and Monetary Developments Third Quarter Review 2008-09, released here today.

Among commercial crops, output of kharif oilseeds, sugarcane and cotton is expected to decline, it said.

However, rice production is expected to rise marginally over the previous year.

The procurement of foodgrains during 2008-09 (up to January 19, 2009) was higher than that in the corresponding period of the previous year, largely due to more than two-fold increase in wheat procurement.

Offtake of foodgrains up to October 31, 2008 was marginally lower as compared to the corresponding period last year, the central bank said.

Consequently, the total stocks of foodgrains with the Food Corporation of India and other government agencies nearly doubled to about 35.3 million tonnes as on November 1, 2008.

"The stocks of both rice and wheat are now higher than their norms," it said.

source: BS