On the back of an excellent monsoon, the mid-year economic review on Friday forecast a double-digit farm sector growth for the first time in 14 years with an all time high foodgrains output of 220 million tonnes.

"Like on several previous occasions such as 1988-89, 1980 -81, 1975-76 and 1967-68, in years of good monsoon following a drought, the agriculture and allied sector may grow at a double digit rate," Finance Secretary D C Gupta said while releasing the second mid-year review of the economy.

• Mid-year review sees 7% growth

Foodgrain output, which is projected to reach 220 million tonnes during the current year, is heading towards a new record, crossing the earlier peak of 212 million tonnes in 2001-02, he said.

For the current fiscal, the first quarter CSO estimate of GDP growth in the agri and allied sector at 1.7 per cent, as  against 2.7 per cent recorded during the corresponding period relates to the pre-monsoon period, he said, adding that the bountiful monsoon is expected to impact growth in the second and third quarters.

He said the record output projections were based on the first advance estimate for kharif and good rabi season prospects with comfortable water levels in the 71 major reservoirs of the country.

Prospects are also bright for oilseeds and pulses crops as crop area under them is not only up compared with the last two years, but also compared with the normal kharif acreage under these crops.