1.3 Despite good growth, world foodgrains production declined by 2.1 per cent from 2.33 billion
tonnes in 2004 to 2.28 billion tonnes in 2005, owing mainly to decline in production in Europe (9.7%) and
North Central (N.C.) America (5.6%). Australia, however, registered a substantial increase (10.4%) in
production of foodgrains (Table 1.2). While world production of oilseeds registered an increase of 2.9
per cent, that of fibre crops decreased by 3.7 per cent. As in earlier years, Asia continued to dominate in
terms of production of most crops in 2005, its share in production of foodgrains, oilseeds and fibre crops being 47.7, 49.0 and 62.5 per cent, respectively. The post WTO regime intends to boost agricultural trade among nations with the premise that trade would be beneficial to all the constituents. A recent report by FAO has analysed the conditions under which trade liberalisation will be beneficial, particularly to the poor (Box 1.1).
National Bank for Agriculture and Rural Development
