New Delhi, Nov 3 (Inditop.com) The erratic monsoon during this year, followed by floods in some parts of the country, could have lowered India’s foodgrain output by some 14-15 million tonnes, Finance Minister Pranab Mukherjee said Tuesday.
“I’m waiting for a hard assessment of the sub-normal southwest monsoon and the impact of floods in some parts of the country,” the finance minister said at the annual Economic Editors’ Conference.
“There are some estimates that grain production will be less — 14-15 million tonnes. But we will have to wait for the inputs,” he said during the interactive session, which, he added, would also be his last, ahead of the national budget in February.
India had logged record foodgrain output in 2008-09 (July-June), estimated at 233.87 million tonnes. But the failure of monsoon — on which depends 60 percent of India’s agriculture — cast a shadow on this year’s crop.
Mukherjee said there were some distinct signs of a pickup in the Indian economy, even though the global outlook, following the financial crisis since last year, remained uncertain. The farm sector was also a concern.
But in what will bring cheer to industry, the finance minister said the fiscal stimuli packages announced since December will continue till the economy stabilises, though the central ban has indicated a phased exit in its monetary policy update last month.
Mukherjee said some more state-run companies will be on the block for some divestment and that the government’s aim will be to sell stake in those public sector units in which outside holding is less than 10 percent.
“A few other public sector undertakings have been identified for sale of small portions of government shareholding in the domestic market and for issue of fresh equities to meet their fund requirements, if required.”
He said during the past three months, the market capitalisation of two state-run firms — power utility National Hydroelectric Power Corp (NHPC) and hydrocarbons major OIL — jumped 106 percent and 177 percent respectively after divestment.
As a result, he said, the total value of the residual holding of government in these two companies has also increased by 78 percent in the case of NHPC and over 121 percent in OIL.
