The timely onset of monsoon as well as its early spreading over the entire country, almost 20 days ahead of normal date, has been cheering the farming community. Normal rainfall in the first two months of the monsoon season has led to surges in acreage under various crops during the ongoing Kharif season. Besides, the sharp rise in the MSP for all Kharif crops as well as special package announced by the central government attracted the farmers to increase their acreage under various crops. While announcing economic package, the central government made amendments to the Essential Commodities Act by removing wheat, pulses, edible oil, etc., thereby paving the way for free movement of these goods. Besides, the central government also permitted the farmers to sell their products anywhere in the country without inter-state barriers. All these initiatives are taken to achieve the goal of doubling farmers’ income by 2022 as announced in the first general budget of the NDA 1.0 government.
By the end of July 2020, total area brought under Kharif cultivation is 882.18 lakh hectares, up by ~14% YoY and it is 17 per cent lower than previous 5-years average. All the Kharif grown crop acreage is higher than last year number except small millets. Some of the crops acreage in the current season is higher than previous 5-years average total acreage for the entire season. Groundnut and soybean acreage is higher by 10 per cent and six per cent respectively than the previous 5-years average indicating that the country is heading for its biggest crop harvests in the current season. India is getting ready for its biggest Kharif crop harvest in 2020-21 thanks to the timely monsoon, government support in the form of higher MSP, allowing farmers to sell their products anywhere in the country without any inter-state entry barrier, Rs1.63 lakh crores of special package to the sector and removal of commodities from the Essential Commodities list.
The writer is head (commodity & currency research) at Karvy Comtrade Ltd