Agri Picks Report August 06, 2024: Geojit Financial Services

commodities

Geojit Financial Services's report on Daily Agri Picks

Farmers across the country have sown kharif crops over 90.5 mln ha as of today, up nearly 3% from a year ago,data from the farm ministry showed. The sowing of kharif crops has begun well as the Southwest monsoon rainfall has picked up after a slow start. The forecast of above-normal rainfall this season has boosted the acreage of key crops such as paddy, pulses, and oilseeds from the previous year. The area under paddy, one of the main kharif crops, was up 5.3% on year at 27.7 mln ha as of today. The better progress in paddy sowing and rice stocks with the Centre has led the government to allow the graindeficient states to buy rice from the Food Corp of India through open market sales, without participating in the electronic auction. After deficient production last year, the acreage under pulses was also up 11% on year at 11.1 mln ha as of today. Within pulses, acreage under tur was significantly up by 26% on year at 4.2 mln ha, the ministry data showed. The sharp increase in tur acreage was mainly due to the early onset of the monsoon in top tur-producing states such as Karnataka. During the last kharif season, the sowing of kharif crops was delayed due to erratic monsoon. This also weighed on production oftur and maize and delayed the sowing of rabi crops as well. The India Meterological Department on Thursday said rainfall in India is likely to be above normal in the second half of the Jun-Sep monsoon season as La Nina conditions are expected to set in by the end of August. The forecast of above-normal southwest monsoon bodes well for the agricultural sector as most kharif crops are heavily reliant on rainfall. Staggered withdrawal of the monsoon would benefit kharif crops and improve the soil moisture for the rabi season too. Also, the water level in key reservoirs in the country was 51% of the total live capacity, down 6% on year but 7% higher than the 10-year average, as of Thursday. The country has also received 4% above-normal showers so far in the southwest monsoon at 484.0 mm. The area under oilseeds was 18 mln ha as of today, up 3% from the corresponding period a year ago. Soybean acreage rose 2.7% on year to 12.4 mln ha. The acreage under cotton was at 10.8 mln ha, down 8.3% from a year ago. Last week, cotton acreage was down 6.5% from a year ago. The higher acreage under kharif crops is likely to help the government keep food inflation in check. India's CPI food price inflation was 9.36% in June, higher than 8.69% in May, the latest data by the National Statistical Office showed. The acreage under maize was up 10.3% on year at 8.2 mln ha as of today. The acreage under coarse cereals turned positive this week and was up 3.2% on year at 16.6 mln ha. The area under millets such as bajra was significantly lower than a year ago. The area under bajra fell 5% to 6.3 mln ha from 6.6 mln ha a year ago. Jowar has been sown over 1.4 mln ha so far, against 1.3 mln ha a year ago, the data showed.

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