Does the currency in circulation equal the annual production of goods and services? I have learned that in a country currency is printed equal to production of goods and services in a year. 

I want to know if in a year a country produces rice of 10000 rs. The government will print currency of up to rs 10000. In the next year the country again produce rice of 10000 rs. Will the government again print 10000 rs. more? If yes will it not lead to excess currency in circulation?
The amount of currency in circulation does not equal the annual production of goods and services in a country. It is usually much smaller. 

For example, as of July 2013, currency in circulation—that is, U.S. coins and paper currency in the hands of the public—totaled about $1.2 trillion dollars.

In contrast the U.S. GDP for the same year was about $17 trillion dollars.

You can find more information on how Fed prints currency to meet demand from this Fed article.