Agricultural growth, according to official estimates, is pegged at 4.8 per cent for the current fiscal as against 1.9 per cent in 2012-13, on expectation of a record food grains, pulses and cotton production buoyed by a benevolent monsoon.
Depreciation of the rupee might put some pressure on food inflation. However, a substantially good performance in agriculture is expected to negate its effects. Early and decent monsoon had a positive impact on sowing of both Kharif and Rabi crops. Output of rice, wheat, coarse cereals and pulses will be significantly high. Fruits, vegetables and animal husbandry are also not lagging behind with a projected annual growth of around 4 to 5 per cent this year.
India's sugar production should be given special emphasis as it is estimated at 23.7 million tonnes in the 2013-14 marketing year. It’s good news for the industry, considering the fact that the domestic consumption of sugar is approximately 23 million tonnes. India may also witness a fifth consecutive year of excess sugarcane production in 2014-15.
Drought conditions of last year led to a shortage of sugarcane seeds but, sowing has been in full swing this year.The procurement price of sugarcane is slated to increase in order to give the farmers an enhanced price for their produce, to sustain the industry. The need of the hour is good export policies to help farmers get better prices for sugarcane.
photo courtesy- firstpost
