The growth trajectory of the economy, evident through the supply-side elements of GDP, signifies a robust enhancement across various sectors. Among these sectors, agriculture emerges as a pivotal domain, showcasing substantial progress in the sowing of Kharif crops in the fiscal year 2023-24, surpassing both the preceding year’s figures and the five-year average. These advancements, reflected in the initial estimates for 2023-24, forecast a resilient output for major Kharif crops. Concurrently, the ongoing Rabi sowing season has depicted encouraging progress, foretelling a robust Rabi crop output. Factors such as elevated reservoir levels, sufficient availability of fertilizers and seeds, and escalating tractor sales have contributed significantly to amplifying sowing acreage and yield outputs.
Simultaneously, expeditious advancements in the procurement of wheat and rice have ensured a continuous augmentation in food reserves. The elevation in buffer stocks not only aids in alleviating inflationary pressures induced by irregular rainfall patterns but also reinforces the nation’s food security.
The statistics for Kharif sowing in 2023-24 reveal a 0.2 percent increase compared to the preceding year and a 1.5 percent surge over the average sowing of the past five years. Notably, the area under rice and sugarcane cultivation has escalated by 1.9 percent and 7.8 percent, respectively, in comparison to the previous year. Projections indicate an estimated production of Kharif crops at 148.6 million tonnes in 2023-24, showcasing an increment of 3.1 million tonnes from the average foodgrain production of the past five years.
As of November 10th, 2023, the overall rabi sowing has recorded a 1.6 percent upswing, standing at 140.8 lakh hectares in contrast to the previous year. Particularly encouraging is the increased sowing area for rabi oilseeds, escalating by 8.9 percent in 2023-24, signifying a positive outlook for oilseed production.
Water reservoir levels stand adequate to irrigate rain-fed agricultural regions, showcasing a promising scenario for agriculturally significant areas. As of November 2nd, 2023, total live storage in 150 crucial reservoirs accounts for nearly 79 percent of last year’s storage and 91 percent of the ten-year average.
In September 2023, fertilizer sales registered a 5.7 percent upsurge compared to the same period the previous year, ensuring sufficient availability for the ongoing Rabi sowing season. Moreover, the availability of quality seeds, standing at 325.3 lakh quintals against the requirement of 293 lakh quintals for Rabi 2023-24, guarantees a smooth sowing process for Rabi crops.
The agricultural sector also witnessed an upsurge in tractor sales in October 2023, accompanied by a 16.8 percent YoY growth in credit support to agriculture in September 2023. Notably, wheat procurement during the ongoing Rabi Marketing Season from April 1st to October 15th, 2023, surpassed the procurement from the corresponding period of the prior year by 39.4 percent.
In the ongoing Kharif Market Season, as of November 1st, 2023, 108.2 LMT of rice has been procured, with Punjab, Haryana, and Tamil Nadu contributing significantly, benefitting around 25 lakh farmers. A total quantity of 521.3 LMT rice is anticipated to be procured during the entire 2023-24 season, promising a bolstered rural demand in the forthcoming months. Food security is robustly assured, with the total foodgrain stocks with Food Corporation of India (FCI) maintained at 1.8 times the buffer norm requirement for the October-December 2023 period.