Monsoon improves; Kharif crop sowing gains momentum

UR Associates has come out with its report on agri sector.

Rice, wheat and coarse grain levels see a dip in the central pool: The rice, wheat and coarse grains reserves in the central pool witnessed a fall during the month of June. While the rice reserves have fallen by 1.44 mt to 30.71 mt, wheat reserves have fallen by 0.36 mt to 49.81 mt and coarse grains have fallen by 0.041 mt to 0.53 mt. While these reserves are considerably higher for rice and wheat compared to last year, the reserves of coarse grains are less than half compared to June 2011.

Late rains may damage cotton crop

Cotton increased by about Rs 400-500 a candy of 356 kg as monsoon is delayed in production areas. Prices may rise further if the wait for rains prolongs. “The market is worried as late rains may damage the crop. Buying by mills and exporters has pushed up the fibre crop. Though the supply is restricted, export demand is low too,” said a broker here. The Sankar-6 variety was traded at Rs 34,800-35,000 a candy the new V-797 variety at Rs 28,000-28,500. About 9,000 bales of 170 kg each arrived in Gujarat, while 21,000 bales arrived in the rest of the country. Kapas or raw cotton gained Rs 20-25 to Rs 800-905 for a maund of 20 kg. In Maharashtra, A grade low micronaire (29 mm) quoted at Rs 34,700-35,000 a candy and high micronaire at Rs 35,000-35,700.

Agriculture sector’s bad loans rose 47% in FY12: Subbarao

Bad loans from the agriculture sector have grown by 47% in the fiscal year 2011-12, higher than the 40% growth in such loans from non-agricultural sectors, Reserve Bank of India (RBI) governor D. Subbarao said. This is because of a “lagged effect of double-digit growth” in bank credit to the sector and a slowing economy, he said. A system-wide identification of non-performing assets (NPAs) has also contributed to the rise in bad loans from the sector, Subbarao said.

$67.6 million ADB Loan to Boost Investment for Agribusiness Infrastructure in Bihar

Asian Development Bank (ADB) and the Government of India have signed a $67.6 million loan that will help improve physical and institutional links to support agriculture in the state of Bihar. The loan will help expand agricultural value chains and facilitate better linkages for small scale farmers with processors, agribusiness entrepreneurs, and service providers in Muzaffarpur and Patna-Nalanda regions of Bihar. The loan is the first tranche of a $170 million multitranche financing facility under the Agribusiness Infrastructure Development Investment Program. 

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