The India Meteorological Department’s (IMD) announcement on the onset of monsoon in Odisha, the preliminary monsoon showers in Telangana and the expectations of widespread monsoon rainfall over the next few days has brought cheers to farmers, the Government, and the businesses such as agri-inputs and agri-commodities.
The stocks of fertiliser makers have gained up to 3 per cent on Wednesday, with the Chambal Fertilisers and Chemicals gaining (3.4 per cent), Gujarat State Fertilisers Chemicals Ltd (1.49 per cent), and GNFC (1.47 per cent), rising the most.
The sugar stocks too gained with Triveni Engineering and Industries rising (0.35 per cent), Shree Renuka Sugars (0.62 per cent), and Balrampur Chini Mills (0.18 per cent).
Though the monsoon arrival got delayed in Telangana and Odisha by a week, compared to its usual onset date, it had arrived in Kerala ahead of the schedule. Even as the timely onset is crucial for commencement of sowing, the progress and distribution of rainfall will be critical for the country’s agricultural production. For instance, in Kerala, despite the early onset, the rainfall since June 1 is deficient by 59 per cent, compared to its long period average.
Notwithstanding the delayed onset, the progress of the rainfall will be critical for the agro-based industry. Though the demand for agri-inputs such as seeds, fertilisers and agro-chemicals commences ahead of the monsoon onset and sowing, the progress and distribution of rainfall will determine the overall demand for the inputs during the season.
With the IMD predicting a normal south-west monsoon this year, its progress over the next few weeks will be crucial, given the global inflationary scenario for commodities, including agri-produce such as wheat largely fueled by the geopolitical situation.