Business Standard

Kharif acreage hits all-time high

Bumper harvest may ease inflation; experts wary of excess rains, pest attack

- SANJEEB MUKHERJEE

The country’s kharif acreage area has touched a record of 108.22 million hectares during the week ended August 28 — 7.15 per cent more than the area covered last year — raising hopes of a harvest in excess of 149 million tonnes (mt) during the 2020 season. The last all-time high kharif planting was in 2016 at 107.57 million hectares.

A good kharif output could help in bringing overall retail inflation — hovering around 7 per cent since April — within the Reserve Bank’s threshold of 2-6 per cent.

A big question mark, however, remains on the demand to absorb this surplus production. Unless demand picks up strong- ly in the months ahead crop prices might collapse, hurting growers, experts said.

“Sowing of rice is still continuing while planting of pulses, coarse cereals, bajra, and oilseeds is almost over. We are confident that total foodgrain production in 2020-21 will cross the target of 298.32 mt,” Agricultur­e Minister Narendra Singh Tomar said on Friday.

Experts and farmers, however, said the on-ground situation for some crops was not that encouragin­g due to incessant rainfall and pest attacks.

In Madhya Pradesh (MP), for instance, officials and traders said production of soybean, the main kharif crop, could be 10-15 per cent less than last year due to the stem fly attack. Indorebase­d Soybean Processors Associatio­n of India (SOPA) said the attack might lead to 10-12 per cent drop in production but much would also depend on the weather in the coming weeks.

Last week, SOPA estimated that India's soybean production could jump by 32 per cent in 2020 to 12.25 mt from a year earlier.

For MP, SOPA had estimated a 11.5 per cent rise in production to 5.8 mt in 2020. But now, production in 2020 is likely to be near last year’s level of 5.2 mt.

Scientists said it was difficult to revive crop in parts attacked by stem flies despite the efforts by farmers and agricultur­e department officials.

The monsoon in 2020 till August 28 is almost 9 per cent more than normal. The rainfall, which was nearly 10 per cent below normal in July, picked up pace in August and till a few weeks back, August rains were 24 per cent above normal.

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