Saturday, September 15, 2012

Monsoon revival helps crops like rice, cane, soyabean & others recover from drought

MUMBAI: Higher than average rainfall for the past three weeks in India, the world's second-biggest producer of rice, sugar, and cotton, will help boost yields of summer-planted crops which were affected by the weak rain at the beginning of the monsoon season.

The June-September monsoon rains are vital for agriculture sector, where 55 percent of farmland is rain-fed. Here are some key facts about the impact of the recent revival in the monsoon.

RICE: Rice makes up 70 percent of India's summer-sown crops, which in turn make up about half of India's total crop output. Key rice growing states in the east and south received good rains in the past two weeks, and the revival will help the crop which is in the grain formation stage.

In some areas of Andhra Pradesh and Odisha states, the crop was damaged due to heavy rains. Farm Minister Sharad Pawar said on Wednesday the recent rains would help improve yields but overall production could be lower than the previous year due to the deficient monsoon.

The govt is sitting on huge stockpiles of rice and has been exporting the grain since September 2011.

Rice acreage is 4.2 percent lower than the previous year and traders expect an up to 8 percent drop in production from the 91.53 million tonnes produced in the previous year. Ample stocks will help India continue unrestricted exports.

CANE: The leading sugar producing states of Maharashtra and Karnataka received more than average rainfall in the past two weeks, helping the maturing cane crop. But the rains are unlikely to completely neutralise the damage due to the April-to-July dry spell.

Overall cane acreage in the country is 4.5 percent higher than last year, but analysts expect production to drop to 24 million tonnes in the 2012/13 season beginning October against the current year's 26 million tonnes. This decline will ultimately squeeze the surplus that can be exported.

SOYBEAN: The recent rains have helped soybeans, the main summer-sown oilseed. Soybean production in 2012/13 is likely to rise to 11.8 million tonnes from 11 million tonnes in the current year, JP Morgan said in a research report last week. Despite the higher output, India's edible oil imports in the 2012/13 season beginning November will rise due to a drop in groundnut and cotton seed supplies. India is the world's top vegetable oil importer.

COTTON: Poor rainfall at the start of the monsoon season and unattractive prices cut cotton acreage by 4.7 percent from the previous year. Yields were expected to drop sharply but the revival in Maharashtra and Gujarat states compensated some of the losses.

Traders estimate cotton production at around 34 million bales each of 170 kg for the 2012/13 season starting Oct. 1, lower than the current year's record 35.3 million bales. Lower output is likely to hit exports.

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