Agri Picks Report August 22, 2024: Geojit Financial Services

Geojit Financial Services's report on Daily Agri Picks

Farmers across the country have sown kharif crops over 103.1 mln ha as of Tuesday, up 2% from a year ago with notable increase in acreage of paddy and pulses, data from the farm ministry showed. The sowing improved since July due to increased rainfall after a slow start in June. The area under rice, one of the most important kharif crops, rose nearly 6% on year to 36.9 mln ha as of today. Progress in sowing of paddy and rice stocks with the Centre has led the government to allow graindeficient states to buy rice from Food Corp of India through open market sales, without participating in electronic auctions. After deficient production last year, the acreage under pulses was also up 6% on year at 12 mln ha as of Tuesday. Within pulses, acreage under tur was significantly up by 12% on year at 4.5 mln ha, the ministry data showed. The sharp increase in tur acreage was mainly due to the early onset of monsoon in top tur-producing states such as Karnataka. During the last kharif season, the sowing of crops was delayed due to erratic monsoon. This also weighed on production oftur and maize and delayed the sowing of rabi crops as well. Tur acreage in Karnataka was up 23% on year at 1.6 mln ha as of Saturday, the state's sowing data showed. The increase in water levels in the state's reservoirs and above normal rainfall so far has boosted the production of this pulse. Similarly, the area under maize in Karnataka was up at 1.53 mln ha as of Saturday from 1.48 mln ha a year ago. Maize acreage across the country was up 7% at 8.7 mln ha as of Tuesday. The area under oilseeds was 18.6mln ha as of today, up 1% from the corresponding period a year ago. Soybean acreage rose 1% on year to 12.5 mln ha. The acreage under cotton was 11.1 mln ha, down 9% from a year ago. Earlier this month, India Meteorological Department said rainfallin 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. The water level in key reservoirs in the country was 69% of the total live capacity as of Thursday, up 11% from a year ago and 14% higher than the 10-year average. So far in the southwest monsoon, the country has received 4% above-normal showers at 642.9 mm.

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