Despite poor rains in major crop producing states, the agricultural scenario looks fairly stable as area under cultivation has been higher this year for almost all crops so far, CARE Ratings said.
As on September 4, the total area sown under kharif crops increased by 1.97% to 998.67 lakh hectares as compared to 979.40 lakh hectares in 2014 despite poor rainfall conditions, the rating agency said in its report.
The monsoon season for India, starting June, looked positive, leading to an increased sowing for the months of June and July.
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The country is witnessing one of its driest years as it received only 658.9 mm of rainfall against the normal 768.9 mm as of September 8.
The maximum rainfall deficit was seen in the southern peninsular region, which witnessed 22% lesser rains from its long term average.
Central and north India, comprising areas of Madhya Pradesh, East Uttar Pradesh, Haryana and Punjab, received only 683 mm rainfall, from the normal level of 812mm.
Although the region has received deficit to scanty rains, well-developed irrigation facilities will keep agricultural production on course.
The country may witness higher pulses crop as area sown under pulses increased by 11% so far this kharif season, it said.
CARE Ratings believes that with monsoon being in its last month, it is to be seen if the southwest monsoon, retreating from parts of northwest India, will provide some relief to agricultural output.
Rabi sowing, which begins after the kharif harvest, can be affected if unseasonal rainfall takes place as it is damaging for rice, it said.