How do you see the rains impacting the Kharif output and will have an impact on food prices?

A very good monsoon spurred farmers to plant summer crops with enhanced acreage by nearly 7% this year compared to last year. The monsoons had hit India on time leading to timely sowing of the Kharif crop and also the rains were adequate to ensure good output.

Agricultural Ministry released data which showed that farmers sowed 108.2 million hectares with Kharif crops such as rice, corn, cotton, soybeans and sugarcane. For India remains the mainstay as more than half of the land does not have any irrigation facilities.

Overall food production, according to the government estimates, is expected to cross the target of 298.32 million tonnes in the 2020-21 sowing year. This will clearly outdo the previous year when the farm output was 295.67 million tonnes.

Rice planting area increased from 35.4 million hectares last year to 38.9 million hectares in the current year. Oilseeds were planted across 19.3 million hectares, up from 17 million hectares last year. Soybean also saw a 10% spike to 12 million hectares this year.

Even cash crops like cotton managed higher acreage this year at 12.8 million hectares. Last year was a drought year but late rains resulted in reservoirs filling up in September which resulted in a very good Rabi crop.