Good News For Farmers: There is good news for the agricultural economy and farmers of the country. A Motilal Oswal Financial Services Limited report states that the profit of the agriculture sector is expected to increase in the 2024-25 Kharif season. Due to higher production and lower input costs, farmers can earn more profit in the Kharif season than before.
Profitability Will Be Better
The report also shows that the falling prices of some crops (prices of main food grains and oilseeds have declined by 3.2 percent year-on-year) have partially reduced the benefits from higher production. Referring to different parts of the country, the report states that profitability in the northern states is expected to be relatively better than in the southern. At the same time, mixed results can be seen in the eastern and western belts.
These States Are At The Forefront
The report is based on interactions with various farmer producer organizations (FPOs) and farmers across the country for ground assessment of crop conditions, yields and farm profitability during the Kharif season. The report said that the country’s northern region has seen higher crop yields year-on-year as more rains have boosted paddy production.
At the same time, the southern region and Gujarat remained lagging, mainly because of floods caused by heavy rains that damaged crops. The central states in the northern region include Bihar, Punjab, Madhya Pradesh, Uttar Pradesh, Haryana, and Rajasthan.
There Is A Possibility Of Reduction In These
The report said that according to the first advance estimate of the government, the total production of food grains and oilseeds (which accounted for more than 84 per cent of the total area in the year 2024) is expected to increase by 6 per cent and 7 per cent, respectively. However, the production of other major crops like sugarcane and cotton is estimated to decline by 3% and 8%, respectively.
This Concern Was Also Expressed
According to the report, the fall in crop prices (main food grains and oilseeds) has partially reduced the benefits of higher production. The report also states that the cost of cultivation has come down marginally by 1.3 percent during the Kharif season due to a controlled inflation rate—a high base effect. Motilal Oswal expects the total farm profitability to be slightly higher on a pan-India basis for the Kharif season 2024-25.
