new Delhi. The Reserve Bank of India (RBI) last week reduced the repo rate and reverse repo rate to some extent to reduce the impact on the economy due to the nationwide lockdown implemented in the country to prevent the spread of corona virus. Has With this move of the Reserve Bank, banks' loans will be cheap and at the same time there will be a possibility of getting less interest on the money kept in banks as fixed deposits. This move by the Reserve Bank is expected to bring more money into the economy than before.
But will this step be more helpful in upgrading the economy facing lockdown? Or is it going to prove cumin in the camel's mouth. The fourth phase of lockdown is underway in the country (31 May). The government has relaxed the rules for industries, but the level at which the industries are operating before lockdown has not even reached half of that level.
But despite all the difficulties, there is one sector where the work is being done at a faster pace than before and that is the agricultural sector of the country. The government is also expecting a lot from this sector and that is probably why Reserve Bank Governor Shaktikanta Das said after the announcement of the cut in repo and reverse repo rate last week that this time only the ray of hope from the agricultural sector Is coming
After all, why is it that the economists and government of the country are now looking towards the agricultural sector to save the economy? What has happened in the agriculture sector which is a ray of hope from there? The answers to these questions are giving statistics related to the agricultural sector, whether it is agricultural production, purchasing crops from farmers or why farming of kharif crops. Statistics on all fronts are a ray of hope for the government.
First, if we look at the crop production this year, the yield of cereals, pulses, oilseeds and cotton has been good. Wheat, rice and oilseeds have recorded a record increase, while pulses and cotton yields are higher than last year. According to the estimates of the Ministry of Agriculture, the country has produced 11.79 lakh tonnes of rice, record 10.71 lakh tonnes of wheat and record 3.35kore tonnes of oilseeds during 2019-20. Pulses production this year is estimated at 2.30 kor tonnes and cotton production is 360 lakh bales (170 kg).
The farmers had done their work by producing records of most crops and now it was the turn of the government. The government has also purchased a large quantity of crops from farmers. There has been a record purchase of rice, out of the total 11.79 million tonnes of rice produced in the country, so far, 39 percent i.e. 4.59 million tonnes has been purchased by the government. Similarly, out of the total 10.79 crore tonnes of wheat produced in the country, about 30 percent i.e. 34.14 million tonnes have been purchased and in many major wheat producing states, wheat is still being purchased from farmers in large quantities, it is likely that this year A new record will also be made for wheat procurement.
Talking about other crops, purchase of mustard, gram, pigeonpea, urad, moong, lentils and groundnut is also going on. As of 22 May, 5.42 lakh tonnes of mustard from over 2.16 lakh farmers, about 5 lakh tonnes of arhar from 5.30 lakh farmers, about 6.75 lakh tonnes of gram have been purchased from 40.39 lakh farmers. All this purchase of crops from farmers has happened at the support price and the government says that at present the support price of the crop is more than one and a half times the cost. This year, the support price of paddy is Rs 1815 and Rs 1835 per quintal, the support price of wheat is Rs 1925 per quintal, Rs 4425 for mustard, Rs 4875 for gram, Rs 5800 for tur, Rs 7050 for moong, Rs 4800 for lentil, Urad is Rs 5700 and groundnut is Rs 5090 per quintal. The support price of cotton has been fixed at Rs 5255 and Rs 5550 per quintal.
Government procurement of huge amounts of farmers' crops has gone to the farmers, which is expected to increase demand and supply in rural areas in the coming days, which can prove to be helpful for the economy. In the coming days ahead of the agricultural sector, more expectations have started to rise. Cultivation of kharif crops has started all over the country and this year sowing of kharif in the initial season is going much further than last year. As of May 22, the area under kharif paddy is 37 percent ahead of last year, while the area under kharif pulses is 33 percent and the area under kharif oilseeds is 26 percent.
Going forward, the kharif sowing is expected to increase sharply and this year the Meteorological Department has released a forecast of normal rainfall during the monsoon season which will be helpful for kharif crops. Agriculture will help improve the economy in the event of increasing kharif production. Our country is almost self-sufficient in terms of food grains, pulses, cotton and sugar, but we have to depend on foreign countries for edible oil. Increasing the production of food grains and cotton in the country can help increase exports after the country's needs are met and the dependence on imports for edible oil will be reduced if the oilseeds yield increases.
This post was published on May 25, 2020 12:18 pm
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