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FAO forecasts bumper rice output

Star Business Report
Cereal production, including the staple paddy, is likely to increase 1 percent in 2014 from last year's record 5.51 crore tonnes, the Food and Agriculture Organisation said.
Assuming a good monsoon season and continued government support to the rice sector in the form of seeds, fertilisers and fuel subsidies, total paddy production (including the ongoing aus, aman and boro seasons) will rise 1 percent year-on-year to 5.20 crore tonnes, FAO said.
In 2013, rice production stood at 5.15 crore tonnes, a record output.
On average, aus, aman and boro seasons account for 7 percent, 38 percent and 55 percent respectively of annual paddy production.
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wheat imports are expected to soar40 percent to 26 lakh tonnes from last year's low level.
The increased wheat import reflects the government efforts to restore stock for public distribution programmes and stabilise domestic prices.
Rice imports, mainly by private traders, may increase to 6 lakh tonnes this year, prompted by lower prices in international market, it said.
Meanwhile, the UN agency said rice and wheat prices fell slightly in May with the start ofthe 2014 Boro harvest.
"Rice prices are expected to decline further in the coming months when the bulk ofthe harvest will enter the markets," it said.
Similarly, wheat flour prices weakened in May, as a result of the record 2014 wheat harvest and continuing distributions by the government through open market sales.
However, the ongoing procurement programme, which is set to end in June,
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Citing remote-sensed data, the United Nations agency said plantation of aus completed by mid-May and the above-average rainfall from early March to early June over the main rice-producing areas has facilitated land preparation and early crop development
It puts current season's aus paddy output at 36 lakh tonnes, 3 percent higher from the corresponding season of lastyear.
Wheat output may also rise 2 percent year-on-year to 14 lakh tonnes, it said.
"This reflects a slight expansion in area planted due to high prices at sowing time and improved yields, following adequate supplies of irrigation water," said FAO.
Production of maize is also likely to increase in the current year.
Despite high rice production last year, cereal imports are forecasted to surge 70 percent to 32 lakh tonnes in fiscal 2013-14.
'The projected increase mainly reflects higher wheat imports," said FAO, citing that