Bengaluru, NFAPost: Kharif season farm-gate profits set to increase 3-5% on-yearEarly onset and good distribution of the south-west monsoon has paved the way for robust kharif output, raising hopes in hinterland.
As on August 21, 2020, rains were 7% above the long-period average. Good spatial and temporal distribution has prompted sowing across crops in most states.
CRISIL Research expects a 2-3% rise in sown area on-year at ~109 million hectares for kharif season 2020. The area under paddy cultivation is set to increase because of both rains and reverse migration of labour to the eastern and southern states.
On the other hand, area under vegetables, cotton and maize would be lower than in the previous season as lower prices have discouraged farmers from sowing them.
CRISIL Chief Economist Dharmakirti Joshi said the CRISIL Deficient Rainfall Impact Parameter, or DRIP, scores point towards healthy performance of agriculture this year.
“DRIP, in addition to rainfall deficiency, considers vulnerability arising out of the lack of irrigation buffer across states and crops was red flagging Rajasthan as an adversely impacted state till early August. But with rains catching up, the risk has come down substantially,” said CRISIL Chief Economist Dharmakirti Joshi.