Amid Covid gloom, farm sector blooms for the most part

Jannie Delucca

The Covid-19 lockdown and provide chain disruptions above the past few months have strike several industries. But the farm sector seems to have escaped these with the minimum influence.

Even though horticulture and dairy farmers did experience the brunt of the lockdown, for the farm sector as a complete, it has not been undesirable at all. Sample these numbers:

Procurement less than the minimum help price tag (MSP) programme in wheat during the rabi marketing season (2020-21) was about eleven.seven tonnes by conclude-April versus 19.six million tonnes (mt) in the exact same time last year. Having said that, in the subsequent two months, procurement greater drastically: by June 12, total procurement by FCI and Point out businesses in wheat touched 37.seven mt (up eleven for every cent YoY from 33.9 mt). And, given the MSP was at ₹1,925/quintal this year versus ₹1,840/quintal last year, it was a major aid for farmers.

In pulses also, procurement has been increased than last year benefitting above 8.seven lakh farmers. Due to the fact March NAFED has procured about 17 lakh tonnes of gram by way of two,395 centres (at MSP of ₹4,875/quintal vs. industry price tag of about₹4,two hundred/quintal). Give that there is a single far more thirty day period left for rabi arrivals to conclude, total procurement in gram may well be drastically increased in rabi last year, total procurement in gram was seven.seventy one lakh tonnes.

Equally, procurement in mustard seed has also been increased. So much, NAFED has procured about seven.53 lakh tonnes of mustard seed from about two.96 lakh farmers.

Better MSP procurement and PM-KISAN disbursements that have achieved to above 9.five crore farmers have in fact boosted farm sentiment.

Better liquidity

Farmers are paying out far more on agri inputs. Fertiliser revenue in April and May possibly ended up up almost seventy five for every cent above last year. Revenue of key fertilisers which include urea, DAP (diammonium phosphate), MOP (muriate of potash), NPK and other individuals in the two months ended up at sixty.three lakh tonne, up from 34.six lakh recorded last year. Revenue of DAP and NP/NPK fertilisers far more than doubled YoY. Even though this may well be simply because of timely onset of monsoon and farmers increasing the spot less than cultivation, it also implies liquidity in their palms.

 

The craze of increased fertiliser consumption has been noticed considering that November — so, a single just can’t dismiss it off as a consequence of an increase in stocking by fertiliser dealers in anticipation of closure of creation units due to the lockdown.

Around the past two months, the demand from customers for seeds and pesticides has also been potent. Ram Kaundinya, Director Normal, Federation of Seed Field of India, mentioned: “Seed offtake considering that April has been really potent. Cotton, rice and millets have been picked up by farmers far more than last year, showing close to ten for every cent development. In rice, also, we have noticed a good uptake of immediate sown rice, which needs less labour considering that there is no transplantation. Farmers have been a little bit reluctant to plant perishable crops like veggies for anxiety of not currently being ready to transport and offer them due to lockdowns and also simply because of absence of availability of labour.”

Tractor revenue also ended up also good in May possibly, recovering from April’s lows. Tractor producers are pointing to an increasing choice amongst farmers in direction of mechanisation. Mahindra & Mahindra, which retains an about 40 for every cent share of the domestic tractors industry, sold about 24,017 units last thirty day period, towards 23,539 units in May possibly 2019. Escorts (12 for every cent share in tractor industry) sold six,454 units in May possibly while Sonalika Team sold 9,177 units (up eighteen.six for every cent YoY).

Kharif sowing progressing effectively

The present-day kharif season, also, is expected to be potent, with a bumper output. As on June 12, the spot less than all kharif crops was up thirteen for every cent YoY at ninety two.fifty six lakh hectare (eighty one.seventy four lakh hectare), for every formal information. Place protected less than cotton was eighteen.9 lakh hectare (15.32 lakh hectare).

The monsoon so much has been surplus, stories the India Meteorological Office. Reservoirs also have sufficient quantities of water. For every information, as on June eleven, the storage available in 123 reservoirs in the place that are tracked by the Central Water Fee was 54.636 BCM, towards 31.372 BCM last year.

It is expected that the present-day season, also, will be good for agri input corporations. Farmers may well also see an earnings increase if procurement is higher in cereals and cotton like last year.

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