The chamber said the 1999-2000 kharif oilseed output will be lower by 26 per cent, pulses by 9 per cent and cotton by about 2 per cent as acreage under these crops in Saurashtra and Marathwada regions in Maharashtra and parts of Madhya Pradesh were adversely affected by lack of rains.

"While rainfall has been normal, 19 per cent of the total cropped area comprising seven out of the country's 35 meteorological sub-divisions, received deficient rainfall," an Assocham study on food situation and prospects for 1999-2000 said.

The chamber said Saurashtra and Kutch areas had received less than half of the normal precipitation, and lack of rains in September had increased the areas with below normal rainfall.

However, the chamber study said the kharif output this year was likely to be slightly higher at 102.70 million tonnes compared to the revised output figure of 102.67 million during 1998-99.

While the rice output has been estimated at 74.9 million tonnes against last year's 71.8 millon tonnes, the sugarcane production is expected to rise by about 5 per cent.

Assocham said the fixation of higher procurement prices during the last few years had led to a perverse situation of prices of agricultural products declining between sowing and harvest.

"In the last few seasons, the minimum support price has in effect become a ceiling price, with market prices ruling at lower levels," the chamber said. Assocham said the official agencies had transformed themselves from `buyers of the last resort' to `buyers of the first resort,' leading to massive procurement and build up of unprecedented stocks on the state account.