Early prospects for the wheat crop, for harvest in April/May, are uncertain, reflecting the adverse weather conditions which prompted the decline in sown area. Water accumulated on the fields in December and early January made them unfit for wheat cultivation. It is reported that the Government is likely to import around 4 million tonnes of wheat in 1997/98. The country’s wheat production in 1996/97 was around 16.9 million tonnes and the Government had to import 3 million tonnes to bridge the shortfall.
Current estimates for paddy production indicate that the country is likely to produce 4.5 million tonnes of rice in 1997/98, some 19 percent above the average for the preceding five years and about 5 percent higher than 1996/97. The increase in production is attributed to higher yields and the small increase in area cultivated.
In an attempt to stimulate the agricultural sector the Government announced in late 1997 a comprehensive package of incentives. This includes increases in support prices for various crops, relief in the prices for key agricultural inputs, improved availability of agricultural credit, better irrigation and drainage and better quality control of fertilizers and pesticides.