Foodgrain production seen at 316 MT; record harvest of gram, mustard, wheat crop expected in rabi season

India is expected to harvest record wheat, gram and mustard crop in the ongoing rabi season, with the total foodgrain production estimated for 2021-22 at a record 316.06 million tonnes (MT). This is higher by 5.32 million tonnes than the production of foodgrain during 2020-21, according to the second advance estimates of foodgrain production released on February 16.

The estimated foodgrain production could potentially ease some of the food inflation concerns, particularly in pulses and oilseeds. The estimated wheat production in the 2021-22 crop year — that started from July — is projected to be at a record 111.32 million tonnes, up 1.58 per cent from last year.
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Mustard production is estimated at a record 11.49 million tonnes  - up 12.54 per cent from last year. Also, the gram production is likely to be at an all-time high of 13.12 million tonnes - up 10.16 percent from last year.

India's headline inflation rate based on the Consumer Price Index (CPI) jumped to 6.01 percent in January 2022, as per data released by the National Statistical Office on February 14.

At 6.01 percent, retail inflation was the highest in seven months and breached the Reserve Bank of India's upper tolerance band. The high inflation rate was mostly driven by rates of food, beverages, clothing, and footwear. The wholesale price inflation also remained in double digits for the 10th consecutive month in January.