Amid Covid gloom, farm sector blooms for the most part
The Covid-19 lockdown and source chain disruptions above the past number of months have hit several industries. But the farm sector seems to have escaped these with the bare minimum effects.
When horticulture and dairy farmers did experience the brunt of the lockdown, for the farm sector as a complete, it has not been undesirable at all. Sample these figures:
Procurement less than the bare minimum assist rate (MSP) programme in wheat throughout the rabi promoting season (2020-21) was about eleven.7 tonnes by conclude-April vs . 19.six million tonnes (mt) in the exact same time very last calendar year. Even so, in the subsequent two months, procurement increased significantly: by June 12, whole procurement by FCI and Point out companies in wheat touched 37.7 mt (up eleven per cent YoY from 33.9 mt).
And, provided the MSP was at ₹1,925/quintal this calendar year vs . ₹1,840/quintal very last calendar year, it was a large aid for farmers. Incomes of farmers of rabi pulses would have also increased provided that the procurement rates are higher than MSP and very last year’s rates. In North India, the common wholesale rate of masur (lentil) is ₹6,814/quintal (very last calendar year exact same time it was ₹5,527/quintal) as opposed to an MSP of ₹4,800/quintal gram is investing at ₹5,564/quintal (very last calendar year ₹5,627/quintal) towards an MSP of ₹4,875/quintal.
A good monsoon throughout very last year’s kharif and this year’s rabi, and the PM KISAN disbursements that attain above 9.five crore farmers, have also helped enhance farm sentiment.
Higher liquidity
Farmers are paying out extra on agri inputs. Fertiliser gross sales in April and May ended up up practically seventy five per cent above very last calendar year. Product sales of major fertilisers like urea, DAP (diammonium phosphate), MOP (muriate of potash), NPK and other people in the two months ended up at sixty.3 lakh tonne, up from 34.six lakh recorded very last calendar year. Product sales of DAP and NP/NPK fertilisers extra than doubled YoY. When this may be due to the fact of well timed onset of monsoon and farmers raising the area less than cultivation, it also indicates liquidity in their fingers.
The craze of larger fertiliser use has been noticed due to the fact November — so, a single can’t dismiss it off as a consequence of an improve in stocking by fertiliser dealers in anticipation of closure of generation units due to the lockdown.
Around the past two months, the demand for seeds and pesticides has also been potent. Ram Kaundinya, Director Typical, Federation of Seed Sector of India, mentioned: “Seed offtake due to the fact April has been very potent. Cotton, rice and millets have been picked up by farmers extra than very last calendar year, exhibiting around 10 per cent progress. In rice, way too, we have witnessed a good uptake of direct sown rice, which demands less labour due to the fact there is no transplantation. Farmers have been a little bit unwilling to plant perishable crops like veggies for fear of not staying equipped to transport and market them due to lockdowns and also due to the fact of deficiency of availability of labour.”
Tractor gross sales also ended up also good in May, recovering from April’s lows. Tractor brands are pointing to an raising desire among the farmers towards mechanisation. Mahindra & Mahindra, which retains an about forty per cent share of the domestic tractors market place, sold about 24,017 units very last month, towards 23,539 units in May 2019. Escorts (12 per cent share in tractor market place) sold six,454 units in May whilst Sonalika Team sold 9,177 units (up eighteen.six per cent YoY).
Kharif sowing progressing properly
The recent kharif season, way too, is envisioned to be potent, with a bumper output. As on June 12, the area less than all kharif crops was up thirteen per cent YoY at ninety two.56 lakh hectare (81.seventy four lakh hectare), per formal details. Spot protected less than cotton was eighteen.9 lakh hectare (fifteen.32 lakh hectare).
The monsoon so considerably has been surplus, reports the India Meteorological Office. Reservoirs also have sufficient portions of water. For each details, as on June eleven, the storage readily available in 123 reservoirs in the region that are tracked by the Central Drinking water Commission was fifty four.636 BCM, towards 31.372 BCM very last calendar year.
It is envisioned that the recent season, way too, will be good for agri enter corporations. Farmers may also see an earnings improve if procurement is higher in cereals and cotton like very last calendar year.
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