Agri Picks Report June 21, 2024: Geojit Financial Services

commodities

Geojit Financial Services's report on Daily Agri Picks

The southwest monsoon, whose progress had stalled for a few days, is likely to advance into some more parts of Gujarat, Madhya Pradesh, and Maharashtra over the next 3-4 days, the India Meteorological Department said on Thursday. The weather agency said conditions are also favourable for the monsoon current to advance into more parts of Odisha, the plains of West Bengal, and some parts of Jharkhand. It is also likely to advance into some more parts of Bihar and parts of eastern Uttar Pradesh in the same period and cover the remaining parts of sub-Himalayan West Bengal as well. On Thursday, the monsoon current advanced into more parts of Vidarbha, Chhattisgarh, Odisha, and Bihar. The northern limit of the monsoon now passes through Amravati and Gondia in Maharashtra, Durg in Chhattisgarh, Rampur in Uttar Pradesh, Malda in West Bengal, and Bhagalpur and Raxaul in Bihar. The southwest monsoon, which hit the coast of Kerala on May 30, has covered the whole of southern and northeastern India so far. It moved into most parts of Maharashtra and parts of Chhattisgarh and south Odisha by Jun 12. However, thereafter, its progress stalled. Heavy to very heavy rainfall is expected over Konkan, Goa and the ghat areas of Madhya Maharashtra during the next four days. The Cabinet Committee on Economic Affairs has 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 paddy (common) has been increased by 5% to 2,300 rupees per 100 kg and that of paddy (grade A) has been raised by 5% to 2,320 rupees per 100 kg. "The increase in MSP for Kharif Crops for Marketing Season 2024-25 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times of the All-India weighted average cost of production," the government said in a release. 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. The minimum support price of moong has been raised by just 1.4% to 8,682 rupees per 100 kg for 2024-25 season. The government has also increased the minimum support price of maize by 6.5% to 2,225 rupees per 100 kg. Minimum support prices, or the rates at which the government buys crops from farmers in case prices in the market fall, give security and direction to farmers in terms of realisation from their produce. They also help boost production of a desired crop. Higher minimum support prices prompt farmers to add more area under these key kharif crops. In recent years, the government has been promoting the cultivation of crops other than cereals, such as pulses and oilseeds and nutri-cereals, by offering a higher MSP for these crops. The highest absolute increase in minimum support prices over the previous year has been recommended for oilseeds and pulses, the government said in the release.

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21062024 - co