The crippling drought hitting eastern Australia is tipped to wipe millions of tonnes off crop production this season according to a new report, as the food and grocery industry expressed concern about the likelihood of drought lifting input costs.

A new report from the federal government's agricultural forecaster has tipped the NSW winter crop to be down 46 per cent on last year, with steep falls also forecast for Queensland and Victoria.

The drought will wipe millions of tonnes off crop production in eastern Australia. Credit:Angela Wylie

But farmers have warned the crops in the three eastern seaboard states could be below these forecasts, given the impact of warmer conditions and frost in recent weeks and the prospects of a dry spring.

The forecast NSW total winter crop for 2018-19, at 3.89 million tonnes, is barely 26 per cent of the size of the massive 14.78 million tonne crop produced in 2010-11. The “winter crop” includes wheat, barley, canola and oats.