Healthy farm sector performance to aid COVID-impacted economy: CRISIL

Date posted: Wednesday 26 August 2020

As the Indian economy heads towards de-growth on account of the severe impact of COVID-19, a more than normal rainfall and higher showing has come as harbinger of robust crop output this Kharif season giving rise to hope and respite during troubled times. In a report Silver lining in dark clouds, CRISIL Research said better agriculture output this year will lead to 3 to 5% increase in [per hector] farm gate price of crops in the Kharif season leading to higher [cultivation] income for farmers. While eastern India, followed by north will lead in profitability of farmers by 26% and 4% respectively, the growth in south will remain flat and western India will see negative growth of 4%, the report said. This season will witness better profitability for rice, sugar cane and apple farmers while cotton, maize and onion farmers will suffer losses, the report added. With rains 7% above the average and well distributed across regions CRISIL Research expects a 2-3% rise in sown area on-year at 109 million hectares for kharif season 2020. Area under paddy cultivation will increase because of both rains and reverse migration of labour to the eastern and southern states.

(The Hindu)

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