The biggest of these is the prospect of a price crash in agro-produce when it starts arriving in the market. Staples like wheat and rice have been insulated against price volatility through open-ended procurement, but this cover is available only to a few commodities in selected states.
Farmers elsewhere continue to resort to distress selling if there is over-production. If this happens in the ensuing kharif marketing season that is round the corner, it will erode part of the gains that could be expected to accrue to individual growers and the economy due to good production.
This has already happened in apples and some other commodities that have started hitting the mandis. Though apple output has spurted by more than 50 per cent over last year