New Delhi [India], May 22 : The forecast of a normal monsoon by the India Meteorological Department, surplus waters in reservoirs, adequate availability of seeds and fertilisers, and robust tractor sales augurs well for a healthy kharif sowing season, the Ministry of Finance said in its Monthly Economic Review report released Monday.
"Like the manufacturing and services sector, the prospects for the agriculture sector also appear to be bright," the report said.
India has three cropping seasons summer, kharif, and rabi.
Crops sown during June-July and harvested in October-November are kharif. Crops that are sown during October-November and the produce harvested from January-March depending on maturity is Rabi. Crops produced after rabi but ahead of kharif are summer crops.
It said despite unseasonal rains, smooth public procurement of wheat augers well for food security.
"Rural demand is also gaining momentum, as evident in sturdy sales of fast-moving consumer goods (FMCG) companies during Q4 of FY23 and sustained double-digit growth of two-three-wheelers sales in April."
Going forward, healthy prospects for the kharif season, higher minimum support prices (MSP) for crops, and increased budgetary spending by the government are likely to enhance farmers' income and boost the rural economy, the finance ministry report said.
On inflation outlook, it said going forward, the expected bumper harvest of food grains in 2022-23 and brightened prospects for the kharif season in 2023-24 are expected to keep food inflation low in the upcoming months.
Wholesale inflation, after remaining in double digits for 18 months, has now declined to a 33-month low of (-) 0.9 per cent in April 2023.
Retail inflation has also gradually declined from a peak of 7.8 per cent in April 2022 to an 18-month low of 4.7 per cent in April 2023.
"April is too early to forecast the economic outcomes for the entire year. A good beginning, though, is a harbinger of positive outcomes," it noted.
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