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Page last updated at 06:54 GMT, Wednesday, 16 July 2008 07:54 UK

India 'hopeful of good harvest'

Indian supermarket
Food prices have risen sharply this year

India is expecting a good rice, corn and soya bean crop this year because of "encouraging" monsoon rains, the country's farm minister has said.

Sharad Pawar said higher prices paid to farmers for the crops would boost agricultural production.

Inflation has tripled over the last six months, driven by the soaring cost of food and fuel.

The government hopes that a good monsoon-driven harvest will bring down the price of food.

"The onset and distribution of monsoon rains across the country in the current season has been very encouraging, and we are hopeful of a rich harvest, especially of rice, maize and soya bean," Mr Pawar said in a statement.

Agriculture has been beset by many problems in India, including declining productivity and rising debt among farmers.

Earlier this year, the government announced a $1.8bn debt relief scheme covering nearly 30 million farmers across the country.

It is being seen by some as a last-ditch effort to head off an agricultural crisis in India.

Some 10,000 farmers are estimated to commit suicide in India every year, many because they cannot pay debts.


SEE ALSO
India in new interest rate rise
24 Jun 08 |  South Asia
Indian rupee continues to slide
23 Jun 08 |  Business
India inflation rate rises to 11%
20 Jun 08 |  Business
Indian inflation at 7-year high
13 Jun 08 |  Business
India's economic expansion slows
30 May 08 |  Business
Fuel pushes up Indian inflation
06 Jun 08 |  Business

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