Categories: Business

Agriculture sector likely to grow 2.5 percent in FY21 says crisil

Photo: PTI

Agri Sector

new Delhi. Many areas have been affected by the corono virus epidemic, but agriculture remains the only positive sign. Agriculture is expected to grow by 2.5 percent during the year 2020-21. This estimate has been given in the report of CRISIL Research. However, some risks have also been talked about in this report. Important among them are the possibility of locust attack and the effect of lockdown on horticultural products. The report said that due to the epidemic and subsequent lockdown, demand for horticultural produce is likely to be affected more than food grains.

In fact, for food grains, the government's minimum support price (MSP) and procurement support. The report said that the government has announced an increase in MSP for 14 kharif crops, assuring farmers of 50-83 per cent benefit on their production cost. On the other hand, horticultural products are perishable. Wholesale prices declined in April, despite a significant decrease in arrivals at the mandis. The report said that due to lack of many sales, standing crops of horticultural produce were not harvested and now the effect of grasshopper attacks is seen on them. Similarly, there has been a decline in demand for flowers due to the closure of religious places and postponement of marriage ceremony etc.

The report said that fortunately, despite the lockdown, domestic consumption of milk has remained largely stable. While demand from the hotel and restaurant sectors, which contribute 15–20 per cent of the total milk consumption, has stumbled, but it is expected to improve gradually after removing the lockdown. The report said that the growth in agriculture and allied activities in the current fiscal year hinges on the high yields of food grains along with the normal monsoon. Horticultural crops may face some damage problems due to their perishable properties.

This post was published on June 5, 2020 12:21 am

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