Economy

RBI upbeat on monsoon, crop prospects

VINSON KURIAN THIRUVANANTHAPURAM | Updated on January 09, 2018

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The Reserve Bank is upbeat on the playout of a good monsoon and its implications for the crop production targets for 201718.

In its monetary policy statement, the Central Bank said that overall, these developments should help achieve the crop production targets at a higher level than the peak attained in the previous year.

A normal and well-distributed monsoon for the second consecutive year has brightened the prospects of agricultural and allied activities and rural demand.

By August 1, rainfall was one per cent above the long period average (LPA) and 84 per cent of the country’s geographical area received excess to normal precipitation.

Kharif sowing has progressed at a pace higher than last year’s, with full-season sowing nearly complete for sugarcane, jute and soyabean.

The initial uncertainty surrounding sowing of pulses, barring tur and rice in some regions, has also largely dissipated.

Sowing of cotton and coarse cereals has exceeded last year’s levels but for oilseeds, it is lagging, tne RBI said.

Procurement operations in respect of rice and wheat during the rabi marketing season have been stepped up to record levels – 36.1 million tonnes in April-June 2017. Stocks have risen to 1.5 times the buffer norm for the quarter ending September.

Published on August 02, 2017

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