Foodgrain output in India may hit record, all set to keep inflation low

India’s cereal production in the current Kharif season could be the same, if it does not exceed record production last year at 138 million tonnes (MT), a prospect that will contribute significantly to economic growth in the current year. In addition to alleviating The inflation pressure on food.

Friday, 75% of “normal kharif area” was sown and areas in major crops except oilseeds were higher than in the same kharif period last season. According to data published by the Ministry of Agriculture, 791 hectares have been sown lakh, down 3% compared to the same period last year.

Planting will be completed by mid-August. However, as permanent oil crops in the regions of Saurashtra, Kutch and northern Gujarat were partially destroyed by heavy rains, there are doubts about these crops, whose robust harvest is essential to reduce India’s oil import bill edible.

Contrary to expectations that the growing area under pulses may decline this year after a sharp fall in prices in recent months, the area planted was 114.88 lakh hectares until Friday, 7% more than in the period Comparable from 2016 to 17.
Agricultural experts say that heavy rainfall with the increase in MSP (minimum support price) for impulses may have motivated farmers to plant more.

Total pulse output in 2016-17 is estimated at 22.40 mt versus 16.35 mt in 2015-16. However, the harvested area fell by 15% to 34.88 lakh hectares, retail prices have experienced a sharp fall of over 40% in the last month due to an outstanding performance in kharif last year. “As there is no other remunerative crop, farmers tend to plant legumes.

Although the arahar area has been reduced by 15%, it will have no effect on prices because we have large stocks remaining, “said Nitin Kalantri, secretary of the Maharashtra Association Dal Miller. Increasing food inflation reached a slight depression of -2.12% in June if the good monsoon, as expected, resulting in exceptional agricultural production in 2017-18, inflation pressure on food also monitored in the coming months, according to analysts.

“A higher area means that food inflation would be kept under control, which would give the RBI (Reserve Bank of India) sufficient guarantees when it decides to cut interest rates by the end of this year. Prices are not recovering enough, because of the rural tourism tension, agricultural profits could decline, which is not enough to increase the clamor for loan waivers, but also to reduce rural consumption, “said a relationship between Axes of capital.

Cereal production in the Indian campaign (July-June) is almost equal between the kharif and the rabi seasons. Last year there was a record production at both stations – kharif and rabi 135.34 mt 138 mt. Due to normal precipitation last year, the country’s grain production of food in the year 2016-17 harvest is estimated at an all-time record of 273.38 tons, or 8.7% more than the year previous.

The low cotton area also increased considerably more than 20% to 111.55 lakh hectare, against 92.33 lakh hectare last year. Gross value added in agriculture and the related sector increased by 4.9% in 2016-17, compared to only 0.7% last year, thanks to a plentiful harvest after two consecutive years of drought.