InvestorQ : Is it true that agricultural output is likely to be better than Industrial output in FY21?
Mary Joseph made post

Is it true that agricultural output is likely to be better than Industrial output in FY21?

Answer
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sara Kunju answered.
1 month ago


It has been clearly acknowledged by the government of India that for the fiscal year 2021 agriculture could be the star performer. In fact, agriculture is expected to cushion the impact of a slowdown in the industrial as well as the services sector. It has already been reported that sowing for Kharif has already been 14% above last year in this season.

This promises a bumper year for Indian agricultural output, especially on food crops. The government had assured attractive MSP for all agricultural products and that is likely to contribute to higher farm incomes and rural demand for goods and services. Farm output was least impacted by COVID and saw limited impact compared to urban India.

Monsoons have been normal in June and July and for the months of August and September the rainfall is expected to be 104% of the long period average (LPA). As per the IMD definition this will classify as a year of normal monsoon. Good rains and strong crop output are key to the government’s stated goals of doubling farm incomes by 2022.