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The reduction in sown area for rice and pulses during Kharif season is expected to feed inflation in the coming months, said Bank of Baroda in a report.

The overall sown acreage for the Kharif season has declined by 0.8 per cent at the end of September 30, 2022 as compared to last year, the report notes.

Bank of Baroda said sowing area of rice and pulses continue to remain deficient, down by 4.8 per cent and four per cent, respectively.

Amongst pulses, arhar (4.4 per cent), moong (4 per cent) and urad (3.8 per cent) have registered lower sowing.

Area sown for oilseeds (1 per cent) and jute and mesta (0.1 per cent) remain lower compared with last year's levels.

On the other hand, sowing area of cotton (7.5 per cent) and sugarcane (0.9 per cent) have registered an improvement, Bank of Baroda said.

According to the report, the Central government has reiterated that it remains prepared to proactively deal with any price rise through possible steps like export restrictions.

Notably, both wheat (24.1millon ton against 20.5 million ton buffer) and rice (22.5 millon ton against 10.3 million ton buffer) stocks as of September 16 in the central pool remains above the buffer norm. On the other hand, higher reservoir level bodes well for winter crops, the report said.