20-07-2024 10:30 AM | Source: Kedia Advisory
Kharif Sowing Insights : Paddy and Pulses Surge, Cotton Declines Amid Monsoon Revival by Amit Gupta, Kedia Advisory

Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel

https://t.me/InvestmentGuruIndiacom

Download Telegram App before Joining the Channel

Early kharif sowing gains have slowed to under 4% due to the approaching end of the planting season, despite recent monsoon improvements. Paddy acreage has increased significantly, while cotton planting has dropped for the first time in years. Soybean and oilseed sowing also show positive growth, though nutri-cereals face a decline. Arhar and pulse sowing have surged due to favorable market conditions.

 

Highlights

Kharif Sowing Progress: Early gains in kharif sowing have narrowed to under 4%, compared to over 10% a week earlier. This shift is attributed to the nearing end of the main planting window.

 

Monsoon Revival: The revival of the monsoon, influenced by a low-pressure system in the Bay of Bengal, is expected to enhance sowing activities, particularly in states with previously deficient rainfall.

 

Sowing Statistics: As of July 19, kharif sowing covers 704.04 lakh hectares (64% of the normal area), up by 3.5% from last year. The normal kharif area is 1,096 lakh hectares.

 

Paddy Acreage: The area under paddy has increased to 166.06 lakh hectares, showing a 6.7% rise from 155.65 lakh hectares last year. Key producing states are expected to improve sowing rates with better rainfall.

 

Cotton Sowing Decline: Cotton acreage has decreased to 102.05 lakh hectares, down by 3.4% from 105.66 lakh hectares last year. Declines are noted in Punjab, Haryana, Rajasthan, and Gujarat.

 

Soybean Coverage: Soybean acreage has reached 119.04 lakh hectares, nearing the normal area of 123 lakh hectares. This is a 9.2% increase from 108.97 lakh hectares last year.

 

Oilseed Area: The total area under oilseeds has risen by 8.1% to 163.11 lakh hectares from 150.91 lakh hectares last year, with groundnut showing a 12.6% growth.

 

Sugarcane and Jute: Sugarcane acreage has slightly increased to 57.7 lakh hectares. However, the area under jute and mesta has decreased to 5.64 lakh hectares from 6.03 lakh hectares.

 

Arhar Sowing Surge: The area under arhar (pigeon pea) has surged by 73% to 33.48 lakh hectares, driven by high market prices. Retail prices of arhar dal range between ?175-230/kg.

 

Pulse Acreage: Total sowing of pulses has increased by 22.3% to 85.79 lakh hectares. This is due to a significant rise in arhar and moong sowing, despite a slight drop in urad.

 

Maize and Nutri-Cereals: Maize acreage is up by 7.6% to 67.78 lakh hectares. However, nutri-cereals acreage has decreased by 8.3% to 123.72 lakh hectares, with bajra seeing a notable decline.

 

Conclusion

The current kharif sowing season is marked by mixed trends, with notable increases in paddy, pulses, and soybeans, driven by favorable rainfall in key states. However, a decline in cotton acreage and a drop in nutri-cereal sowing highlight shifting agricultural priorities and challenges. The revival of the monsoon offers potential for further gains, particularly in regions with previously deficient rainfall. The overall outlook remains positive, yet requires careful monitoring of crop trends and market dynamics to ensure stable production and supply.

 

Above views are of the author and not of the website kindly read disclaimer