Chennai,  The reduction in rice and pulses sown area during the Kharif sowing season can be problematic, said the Bank of Baroda in a research report.

"Sown area of Kharif crops is marginally lower compared with last year. Deficient rains continue to adversely impact the sowing area of rice and pulses. The impact of the same may be manifested in lower production and might also be translated into higher inflation. Hence, it requires further monitoring," the report notes.

The sown area of rice and pulses is down by 4.5 per cent and 4.1 per cent, respectively, this year as compared to the previous year.

According to the report, the government procurement of wheat was low last season as a lot of production was exported and farmers sold their produce in the open market as the Minimum Support Price (MSP) was lower than the market price.

Stocks of wheat have gotten depleted due to the diversion for the PM food programme for the poor. Due to the wheat shortfall the government has substituted the same with rice as part of the scheme.

"It is therefore imperative for the rice production to be normal this time or else there will be challenges in both procurement as well as prices," the Bank of Baroda report said.

Crop area sown is virtually on par with last year though there are shortfalls in rice and pulses which can be problem areas going ahead.