Rising agri commodity prices providing export push; see rural demand improving: Prabhudas Lilladher

In an interview with CNBC-TV18, Amnish Aggarwal, Head-Research, Prabhudas Lilladher, said that rising prices of agricultural commodities have opened up export options. Aggarwal mentioned that farmers are likely to benefit from the higher prices and he estimates Rs 55,000-60,000 crore as the incremental revenue that the they might derive.

He said, “Russia and Ukraine are major players in many agri commodities ranging from sunflower to wheat, maize, mustard, barley etc., and the prices of these have shot up significantly in the last month, month-and-a-half because of the Russia-Ukraine war. In many of these commodities, India was an importer but due to sharp increase in global prices now, the export market has opened up for the Indian supplies, and this incidentally has coincided with rabi crops because mustard and wheat are rabi crops in India.”

“We have conducted extensive channel checks, which suggest that the farmers are likely to benefit from this because the current prices prevailing in various grain markets are between 12-15 percent higher and if the situation sustains, which I believe should, the prices will go up once the harvesting season is over. So we estimate maybe around Rs 55,000-60,000 crore should be the incremental profits to the farming community from 3-4 major crops during rabi season only,” said Aggarwal.