Promising Outlook for India's Kharif Season: Finance Ministry Expects Normal Monsoon, Ample Seeds, & Fertilizer

The Ministry of Finance, in its Monthly Economic Review report released on Monday, highlighted positive indicators for the agriculture sector in India. The report stated that a normal monsoon forecast by the India Meteorological Department, surplus water in reservoirs, sufficient availability of seeds and fertilizers, and robust tractor sales are favorable factors for a healthy kharif sowing season.

According to the report, the prospects for the agriculture sector are bright, similar to the manufacturing and services sectors. With India having three cropping seasons - summer, kharif, and rabi - the Kharif season, which involves crops sown in June-July and harvested in October-November, is expected to perform well. The report also mentioned the successful public procurement of wheat, despite unseasonal rains, indicating positive food security conditions.

Rural demand is gaining momentum, as evidenced by the strong sales of fast-moving consumer goods (FMCG) companies during the fourth quarter of the fiscal year 2022-23 and sustained double-digit growth in sales of two-wheelers and three-wheelers in April.

Looking ahead, the report expects healthy prospects for the kharif season, higher minimum support prices (MSP) for crops, and increased government spending to enhance farmers' income and boost the rural economy.

In terms of inflation, the report anticipates that the expected bumper harvest of food grains in 2022-23 and the positive prospects for the kharif season in 2023-24 will help keep food inflation low in the coming months. The wholesale inflation has recently declined to a 33-month low of (-) 0.9 per cent in April 2023, while retail inflation has gradually decreased to an 18-month low of 4.7 per cent in the same month.

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The report acknowledges that April is too early to forecast economic outcomes for the entire year but emphasizes that a good beginning is a positive sign for the future.

Overall, the Ministry of Finance's report highlights the positive outlook for the agriculture sector, with expectations of a successful kharif season and favourable inflation trends, which are likely to contribute to economic growth in the country.

source-ANI

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