Agri Picks Report July 09, 2024: Geojit Financial Services

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Geojit Financial Services's report on Daily Agri Picks

Farmers across the country have sown kharif crops over 37.9 mln ha as of Monday, up 14% 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 above-normal rainfall so far in the 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 19% from a year ago at 6.0 mln ha as of today. The acreage under pulses was 3.7 mln ha as of today, up 55% from 2.4 mln ha a year ago. Within pulses, acreage under tur surged 409% to 2.1 mln ha from 409,000 ha a year ago, the ministry data showed. The sharp increase in tur acreage is 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 the erratic monsoon. This also weighed on the production of tur and maize and further delayed the sowing of rabi crops. However, the forecast of an above-normal southwest monsoon this year by the India Meteorological Department bodes well for the agricultural sector this year 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 as well. The IMD has forecast that the southwest monsoon rainfall is likely to be above normal at over 106% of the long-period average. During the season so far, India has received a weighted average rainfall of 234.6 mm, 2% above the normal of 230.4 mm for the period, according to the data from the IMD. The government last month raised the minimum support prices of key kharif crops to encourage farmers to sow more pulses and oilseeds. The government increased the minimum support prices of 14 key kharif crops by 1.4-12.7% for the marketing season 2024-25 (Oct-Sep). The minimum support price of tur has been increased by nearly 8% to 7,550 rupees per 100 kg for the upcoming season, and that of urad by 6.5% to 7,400 rupees per 100 kg.

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