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Excessive rainfall has hit kharif agricultural commodities, with five to seven per cent of crops feared damaged in major growing regions, especially flood-prone areas.
The India Meteorological Department reported 17 per cent excess rainfall through the country until July 31. Crops like paddy require long spells of heavy rain for germination and survive a short duration of flooding, too. But, inundation for a long while spoils the crop. With around half of agricultural crops being subject to flooding, chances of crop damage have risen.
Agriculture Minister Sharad Pawar had at the beginning of the monsoon season forecast this year’s foodgrain crop to surpass last year’s figure. Now, this might not happen. “Surplus rainfall does hold the potential to affect crops such as pulses and oilseeds. While paddy can be affected, given that it is a local product and we have stocks, there will be fewer issues on the price front. However as we are importing pulses and edible oils, any shortfall will mean higher imports and at a depreciated rupee, that will tend to spook up domestic prices, too. Therefore, it is a genuine concern, though we need to know the extent of damage,” said Madan Sabnavis, chief economist, CARE Ratings.
Total foodgrain output was a record 259.29 million tonnes in the marketing year (July – June) of 2011-12. With a marginal decline, it was 255.36 mt in 2012-13. Kharif and rabi constitute around half the annual output each.
However, rainy season crops hold potential for higher output. Also, prolonged rain leaves the desired moisture for favourable rabi crops. Encouraged by the early rainfalls and sowing trend, Pawar for a record foodgrain crop in 2013-14.
Total sowing area under kharif crops had shot up by 11.6 per cent to 82 mn hectares as on August 2 as compared to 73.46 mn ha around the same time last year. Barring sugarcane, all crops recorded higher sowing in this kharif, with pulses (7.95 mn ha versus 6.3 mn ha) and oilseeds (17.32 mn ha versus 14.49 mn ha) seeing steep growth. Because of weakening sentiment in the sugar industry, sugarcane plantation declined, albeit marginally, to 4.85 mn ha as against five mn ha by August 2 last year.
“Prolonged excessive rain in the soy growing belts, particularly in the Vidarbha region of Maharashtra and some part of Madhya Pradesh, have caused damage to the standing crop in the past two weeks. Although crop damage to the extent of five to seven per cent will slash the record output hope in the 2013-14 season, production shall remain near last year’s level, as acreage stands remarkably high so far. If excessive rains continue for the next two weeks, the extent of damage could increase and raise concerns over oilseeds and edible oil availability,” said Vedika Narvekar, chief manager (agri commodities), Angel Commodities Broking.
There is concern at reports of damage to oilseed crops in the central and western states and to paddy in the north and east. Analysts also report possible damage to cardamom and pepper crops in the south. Kharif oilseeds accounted for 61 per cent of total oilseed production in India in 2012-13. Soybean output was 72 per cent of the total.
The India Meteorological Department reported 17 per cent excess rainfall through the country until July 31. Crops like paddy require long spells of heavy rain for germination and survive a short duration of flooding, too. But, inundation for a long while spoils the crop. With around half of agricultural crops being subject to flooding, chances of crop damage have risen.
Agriculture Minister Sharad Pawar had at the beginning of the monsoon season forecast this year’s foodgrain crop to surpass last year’s figure. Now, this might not happen. “Surplus rainfall does hold the potential to affect crops such as pulses and oilseeds. While paddy can be affected, given that it is a local product and we have stocks, there will be fewer issues on the price front. However as we are importing pulses and edible oils, any shortfall will mean higher imports and at a depreciated rupee, that will tend to spook up domestic prices, too. Therefore, it is a genuine concern, though we need to know the extent of damage,” said Madan Sabnavis, chief economist, CARE Ratings.
Total foodgrain output was a record 259.29 million tonnes in the marketing year (July – June) of 2011-12. With a marginal decline, it was 255.36 mt in 2012-13. Kharif and rabi constitute around half the annual output each.
However, rainy season crops hold potential for higher output. Also, prolonged rain leaves the desired moisture for favourable rabi crops. Encouraged by the early rainfalls and sowing trend, Pawar for a record foodgrain crop in 2013-14.
Total sowing area under kharif crops had shot up by 11.6 per cent to 82 mn hectares as on August 2 as compared to 73.46 mn ha around the same time last year. Barring sugarcane, all crops recorded higher sowing in this kharif, with pulses (7.95 mn ha versus 6.3 mn ha) and oilseeds (17.32 mn ha versus 14.49 mn ha) seeing steep growth. Because of weakening sentiment in the sugar industry, sugarcane plantation declined, albeit marginally, to 4.85 mn ha as against five mn ha by August 2 last year.
“Prolonged excessive rain in the soy growing belts, particularly in the Vidarbha region of Maharashtra and some part of Madhya Pradesh, have caused damage to the standing crop in the past two weeks. Although crop damage to the extent of five to seven per cent will slash the record output hope in the 2013-14 season, production shall remain near last year’s level, as acreage stands remarkably high so far. If excessive rains continue for the next two weeks, the extent of damage could increase and raise concerns over oilseeds and edible oil availability,” said Vedika Narvekar, chief manager (agri commodities), Angel Commodities Broking.
There is concern at reports of damage to oilseed crops in the central and western states and to paddy in the north and east. Analysts also report possible damage to cardamom and pepper crops in the south. Kharif oilseeds accounted for 61 per cent of total oilseed production in India in 2012-13. Soybean output was 72 per cent of the total.
