homeagriculture NewsITC and Ruchi Soya say farmers have delayed sowing of crop after a weak start to monsoon
ITC and Ruchi Soya say farmers have delayed sowing of crop after a weak start to monsoon
The southwest monsoon is a lifeline for a majority of this country's net cultivated area that has no irrigation and a delay in its onset has meant that farmers have postponed the sowing of crops.
The southwest monsoon has arrived in Maharashtra, Gujarat, and Telangana, among other states, but after a delay of two to five days, as per the India Meteorological Department (IMD). The weak start to the monsoon has delayed the sowing of crops by some farmers, according to ITC's S Sivakumar.
"The monsoon commencement has been weak, and the first 10 days of June have seen 40 percent deficient monsoon," he said in an interview with CNBC-TV18, but added, "I think slowly we are catching up. More will be in the balance period. So, it's very early days of planting just yet."
The southwest monsoon is the lifeline for a majority of this country's net cultivated area that has no irrigation.
According to government data, the above table details the sowing of key Kharif crops in hectares in 2022-23, showing a year-on-year change in percentage terms as of June 13.
The data also shows that except for sunflower (up 25 percent) and sesamum (up 8 percent) there is a fall across Kharif crop sowing compared to 2021.
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Sanjeev Kumar Asthana, CEO at Ruchi Soya Industries, said demand in rural areas would pick up once the monsoon improves.
"In terms of the monsoon, the demand in the rural areas will pick up. The commodity prices have seen historical highs in the last 18 months. So the demand is very robust, and it is going to help the overall economy as well. Similarly, I also expect that this demand momentum will continue from the rural areas, which is going to help many FMCG companies as well," he said.
The real threat and hope
The biggest threat to agri-food inflation, though, is the Russia-Ukraine war, and if that is resolved along with a good monsoon, things might look up quickly.
"The biggest event is if Russia and Ukraine sort out their issues, I think the wheat markets would drop by more than $100 daily. Your availability of sunflower oil will significantly improve, and the logistics will improve," said Sivakumar.
Weather watchers believe that this year the La Niña effect will be potentially positive for Indian rains. Moreover, the IMD expects a better spread in central and western India.
(Edited by : Abhishek Jha)
First Published: Jun 15, 2022 8:08 AM IST
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