Let it rain…

If the June and July rainfall turns out to be as good as expected, hopes are up for better agricultural output in the current kharif (summer) season. A growth of 4.5-5 per cent in agriculture can push up the GDP growth rate to 7 or 8 per cent. Good farm output would also result in increased rural income and soften the inflationary trend.

The food reserves in the central pool are at present higher than the buffer norms and yet at a manageable level. The sugar stocks are satisfactory. Good rains are likely to increase the stock which may call for the ‘‘management of the plenty’’.

Early arrival of the monsoon in South India and good rains in other parts of the country where the monsoon has not yet reached, has encouraged farmers to go for early sowing.

The Crop Weather Watch Group of the Agriculture Ministry has noted higher area coverage under paddy, cotton, coarse cereals and sugarcane. There has also been a higher area coverage under jute and mesta crop in eastern India.

By May-end, south, south-east, and parts of western and northern India had received good rainfall. The average rainfall across the country in the period March 1-May 31 was 25 per cent above normal.