Agri Picks Report March 06, 2024: Geojit

commodities

Geojit's report on Daily Agri Picks

Farmers in Gujarat have sown crops across 289,981 ha as of Monday for the 2023-24 summer season, down 19.4% from 359,645 ha in the corresponding period of last year, according to the state agriculture department data. The normal acreage for the season, which is the average of the last three years, is 1.1 mln ha. Bajra, paddy, sesamum, and moong are the main crops grown in the state during summer. The total area under cereals was at 127,380 ha, marginally down from last year's area of 127,764 ha. Paddy was sown over 77,985 ha, up 32.7% from last year. Paddy is the second-largest cereal grown in the state. However, the area under bajra, the key crop grown during summer, was lower at 46,271 ha than last year's acreage of 65,614 ha. The pulses grown during the season are urad and moong. The acreage under pulses was at 11,438 ha, down 52% on year. Moong was sown over 9,352 ha as of Monday, lower from 15,159 ha during the same period last year. Urad acreage plunged to 2,086 ha from 8,628 ha in the same period of the previous year. Groundnut and sesamum are the main oilseed crops sown during the season in the state. Groundnut has been sown over 12,830 ha, down from 15,337 ha last year. Sesamum was sown over 19,713 ha, lower than 30,781 ha last year. The area under vegetables was at 34,231 ha, down from 40,289 ha a year ago. Onion acreage plunged to 1,542 ha from 4,332 ha a year ago. Sugarcane acreage has also fallen to 4,909 ha from 6,355 a year ago, the data showed. Fodder acreage fell 30% on year to 75,221 ha, according to the data. Traders and exporters of cumin seed, or jeera, expect crop production in India to be higher by 70% in 2024 on account of higher sowing and higher yields. According to crop estimates put forth jointly by the Federation of Indian Spice Stakeholders and the Agriculture Produce Market Committee, Unjha, on Sunday, jeera production this year is expected to be at 10.3 mln bags, higher by around 4.25 mln bags of 55 kg each, compared with 6.06 mln bags last year. In tonnage terms, the total production is expected to be at 566,660 tn this year, up 70% from 333,100 tn a year ago. "The farmers have got weaned towards jeera as last year prices reached very high. With likely bumper production this year, prices are not expected to run away. Currently, demand for exports is high and may sustain till June," Ashvin Nayak, chairman of the federation said at an industry event in Ahmedabad. "The production in countries outside India could be the next trigger for prices." The organisations came out with their findings after a survey held across crop growing regions in Gujarat and Rajasthan, over a four-week period ended Feb 22, interviewing farmers. The organisations, however, released the survey results with a caveat that the findings were subject to the vagaries of weather. Last year, there was a substantial difference between the figures of the crop estimates released in the survey and actual production. In 2023, jeera growing regions saw multiple spells of rain on 17 of the 30 days, immediately after the announcement of the survey findings. With a major share of the crop lying in the fields then, there was up to 40-50% difference between estimates and actual production. Production of jeera in the key state of Rajasthan is expected to be at 5.68 mln bags, up 53% or 1.96 mln bags, compared with 3.72 mln bags last year. The production in Rajasthan is estimated at 312,410 tn this year, up from 204,450 tn last year. In Rajasthan, the area under jeera in almost all districts has shown recovery over the last year as farmers prefer cumin seed over other crops due to higher prices. The area under cultivation is said to have increased 44.8% to 743,200 ha from 513,100 ha. The yield is also likely to improve 5% to 420 kg per ha this year, up from 398 kg per ha last year, the survey findings stated. Production in the second-most important jeera growing state of Gujarat is expected to almost double, or up 2.28 mln bags, at 4.62 mln bags, compared to 2.34 mln bags last year. The production in Gujarat is thus expected to rise 98% to 254,250 tn this year from 128,650 tn last year, primarily due to a massive jump in overall sowing this season. The report suggested Gujarat is also estimated to witness a jump of 100.1% in the area under sowing this year, at 521,000 ha, compared to 260,350 hectares last year. The yield in the state is, however, expected to fall marginally by 1% at 488 kg per ha, compared to 494 kg per ha last year, the survey stated.

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