Chennai: Kharif sowing of key crops has picked up in the first week of August with favourable progress of monsoon. The overall Khaif sowing was up 2.9 per cent yoy as of August 2, 2024, with higher acreage in paddy, oilseeds, and pulses.
As the monsoon picked up, rice sowing grew 5.3 per cent to 27.7 million hectares against 26.3 million hectares in the same period last year. The sowing picked up in key producing states such as Uttar Pradesh, West Bengal, Odisha, and Bihar. The rice acreage in the top 10 states accounting for the 79.6 per cent production was up 7.2 per cent, finds India Ratings.
Rainfall for pulses and oilseeds was 15 per cent and 16.5 per cent higher than normal. The overall pulses sowing grew 10.9 per cent to 11.1 million hectares against 10 million hectares last year. In 4.2 million hectares, Arhar sowing was 25 per cent higher while Moong was 12.3 per cent up. For pulses, rainfall in key producing states such as Maharashtra, Gujarat and Karnataka was higher than normal.
For oilseeds, the rainfall in states such as Madhya Pradesh, Maharashtra, and Gujarat, which account for 54.1 per cent of the oilseeds production has been higher than normal, leading to oilseeds acreage being higher by 3 per cent to 18 million hectares against 17.5 million hectares. Groundnut acreage grew 12.3 per cent.
Coarse cereals sowing grew 3.2 per cent with jowar growing 5.9 per cent, maize 10.3 per cent and small millets 28 per cent. However, bajra acreage fell by 5 per cent and ragi sowing by 19 per cent. In 5.8 million hectares, sugarcane sowing was 1 per cent up, but cotton sowing was down 8.3 per cent in 10.8 million hectares.
“If the monsoon progresses as per the expectations of the Indian Meteorological Department (IMD) coupled with an even spatial spread, we expect the agriculture growth to pick up to 4.3 per cent in FY25 from 1.4 per cent in FY24. This will also help in controlling food inflation in H2 FY25”, said Paras Jasrai, Senior Analyst, Ind-Ra.
High food inflation has been one of the key factors that kept retail inflation elevated. Cereals and products weigh 9.7 per cent in the CPI basket. The inflation in this category has been inching up since March 2024. Despite higher acreage, pulses inflation is expected to remain elevated till October 2024. India has high import dependence for meeting domestic demand for pulses and pulses inflation since June 2023 has been in double digits and peaked at 20.3 per cent in November 2023. The impact of increased pulses acreage on production will only be felt from October 2024.
