Sowing of kharif crops continued to be better than last year till last week as the monsoon picked up pace in July, with agriculture inputs companies expecting a strong 10-20 per cent sales growth this season.
As per the latest data, till July 5, sowing has been completed in around 38 million hectares, which is over 14 per cent more than the area covered during the same period last year.
What is heartening to note is that the biggest jump in the acreage so far has been in pulses (arhar or tur) and oilseeds (soybean).
If sustained throughout the season and including other pulses and oilseed varieties, such as urad and groundnut, the trend should bode well for the final production.
A healthy domestic output of pulses and oilseeds in the kharif season should go a long way in lowering import dependency and controlling food inflation.
A big variable here is the weather, particularly in the main plant growth months. The good rains have already filled up the dry reservoirs.
Meanwhile, buoyed by a strong surge in the monsoon that arrived and hopes of healthy rains this kharif, plant protection and crop inputs companies expect a 10-20 per cent rise in sales this season.
“This kharif season, the early onset of the monsoon coupled with the forecast of good rains is expected to significantly boost the sales and demand for plant chemicals. With favourable weather conditions, farmers are likely to increase their acreage under cultivation, particularly for staple crops such as rice, soybeans, and cotton,” Tirth Shah, executive director of GSP Crop Science, told Business Standard.
He said the industry projections suggest that the overall market for agrochemicals could see a growth of 15-20 per cent this season (kharif) compared to the previous year.
Last year, as per Shah, the domestic agrochemical sector recorded sales of approximately Rs 30,000 crore, and this year, it is expected to reach around Rs 35,000 crore, driven by increased farmer confidence and favourable climatic conditions.
Ankur Aggarwal, managing director, Crystal Crop Protection Limited, said that given the conducive signals in the season, he expects a 10-11 per cent increase in demand due to the surge in need for seeds and crop protection products.
Analysts tracking the fertiliser sector also feel that cumulative sales this year of all fertilisers will clock a robust growth of 1-3 per cent, as has been the trend in FY24 as well.
In FY24, India is believed to have consumed around 60-61 million tonnes of all fertilisers.
The monsoon, meanwhile, till July 8, was 2 per cent cumulative across India, with rainfall in North-West India being 11 per cent more than normal so far in the season, while that in the South Peninsular region was 13 per cent more than normal.
Out of 36, 21 subdivisions have received normal rainfall during this period and 7 states are in the deficient zone.
“A major portion of sowing occurs during the July and August period. Coming weeks remain crucial in terms of distribution of rainfall, and the impact of the same will be reflected on kharif sowing,” Bank of Baroda said in a research note.
First Published: Jul 08 2024 | 7:45 PM IST