A farmer prepares his land to take up paddy cultivation on the outskirts of Viayawada on July 15, 2024.
| Photo Credit: KVS Giri

Indian farmers have accelerated planting of summer-sown crops, such as paddy, soybean, cotton, and corn, following above-average monsoon rainfall in July that came after a deficit in June, government data shows.

The Southwest monsoon usually begins in Kerala around June 1, before spreading nationwide by July 8, allowing farmers to plant summer crops. But in June, India received 11% less rain than average, after the monsoon lost momentum in mid-June and delayed sowing.

In the first half of July, there was 9% more rainfall than normal, which has helped farmers plant summer crops on 57.5 million hectares (142 million acres) by July 12, a tenth higher than last year, according to the Ministry of Agriculture & Farmers’ Welfare.

The lifeblood of the nearly $3.5 trillion economy, the monsoon brings nearly 70% of the rain India needs to water farms and refill reservoirs and aquifers. Without irrigation, nearly half of the farmland in the country depends on the annual rains.

‘The monsoon’s revival bodes well for yields’

“Monsoon’s revival will benefit summer crop planting and early-sown crops from June. Overall, the monsoon’s revival in early July bodes well for crops and yields,” said Ashwini Bansod, vice president, commodities research at Phillip Capital India Pvt. Ltd.

Farmers have planted 11.6 million hectares with paddy, up 20.7% on the same period last year, as record high prices prompted farmers to expand the area.

Higher rice planting could alleviate supply concerns in the world’s second biggest producer and consumer of the grain. India, the world’s largest exporter of the grain, surprised buyers last year by imposing a ban on the export of non-basmati white rice, following a ban on broken rice.

Higher rice procurement by government agencies from last season’s crop and expansion in paddy area could allow the government to ease restrictions on rice exports in October, said a New Delhi-based dealer with a global trade house.

Oilseeds, corn plantation up

Farmers had planted 14 million hectares with oilseeds, including soybeans, against 11.5 million hectares a year earlier.

Corn was planted on 5.88 million hectares, up from 4.38 million hectares a year earlier. The cotton area was slightly higher at 9.6 million hectares, while pulses planting jumped by 26% from a year ago to 6.23 million hectares.

The Ministry of Agriculture & Farmers’ Welfare keeps updating the provisional sowing figures as it gathers more information from the State governments.

Representational image.
| Photo Credit: Kommuri Srinivas

A Finance Ministry report on September 17 underlined the need for deft management of stocks of agriculture commodities in view of lower crop-sowing for the Kharif Season, stressing there should be no room for complacency on the inflation front.

Overall, inflationary pressures in India appear to be on a decline with a pre-emptive set of administrative measures by the government, agile monetary policy and easing of international commodity prices and supply-chain bottlenecks, according to the monthly Economic Review released by the Finance Ministry.

However, it said, there is no “room for complacency on the inflation front as lower crop-sowing for the Kharif season calls for deft management of stocks of agricultural commodities and market prices without unduly jeopardising farm exports.”

India’s rice production could fall by 10-12 million tonnes during the Kharif season this year due to a fall in paddy sowing area, Food Secretary Sudhanshu Pandey had said earlier this month.

The Kharif season contributes about 80% of India’s total rice production.

There was a huge lag in paddy sowing in the states of Jharkhand (9.80 lakh ha), Madhya Pradesh (6.32 lakh ha), West Bengal (4.45 lakh ha), Chhattisgarh (3.91 lakh ha), Uttar Pradesh (2.61 lakh ha), and Bihar (2.18 lakh ha) so far this kharif season.

Paddy is the main kharif crop and its sowing begins with the onset of the southwest monsoon from June and harvesting from October onwards.

Observing that India’s growth has been robust and inflation in control at a time when slowing growth and high inflation are afflicting most of the major economies of the world.

The report further said inflation in India, a net commodity-importing country, has been a by-product of externally situated exogenous pressures.

“Increase in international prices was reflected in an uptick in domestic prices, though the increase in domestic prices was relatively modest on account of the timely interventions taken by the government. Further, as these external pressures ease, inflationary pressures in India are also likely to subside,” it said.

Several indicators are already pointing to the easing of external pressures, the report said, adding, industrial metals and edible oil prices after peaking in March 2022, have softened, led by recessionary fears in advanced economies.

Crude prices have dropped 19.1% by August since the peak in the month of June 2022 and supply chains are getting restored with decline in port congestion.

The impact is already reflected in the decline in retail and WPI inflation since April 2022. Retail inflation eased to 7% in August as compared to 7.8% in April 2022.