USDA in its latest World Agricultural Production Estimates report has forecasted India’s rice production for the year 2014-15 to be decline by 4% from 106.4 million tons in 2013 to 102 million tons in 2014 due to poor and delayed rainfall in the country.

USDA has forecasted the 2014 paddy yield to be declined by 3.4% y/y to around 3.52 tons per hectare, average rice acreage at 43.5 million hectares, down about 1% from around 43.9 million hectares in 2013.

The report has showed that the water deficiency in the soil has affected the rice growth in popular rice producing states like Haryana, Punjab and Uttar Pradesh, southern states as well as the north-eastern states.

As the kharif crop season which is from June – December which accounts for  about 85% of India’s total rice production has been affected due to below average rainfall, it is expecting favorable soil moisture conditions, replenished irrigation reservoirs and relatively firm domestic prices would encourage famers to begin planting for the rabi crop (November – April),

USDA expecting that the crop from Rabi season will be able to recover all the losses which the country has faced in the Kharif season.

The Indian Agriculture Department has estimated that 2014-15 (October 2014 – September 2015) kharif rice production at around 88.02 million tons, down about 4% from around 91.69 million tons produced during the same time in 2013-14.