New Delhi, Aug 2 Gross Value Added (GVA) in agriculture is projected to grow by 4.5 per cent in Q1 FY26 and the kharif sowing during this period might exceed last year's level by 4 per cent amid good monsoon, a report has projected.
Aided by favourable monsoon, kharif sowing has been completed on 76 per cent of the normal sown area, up four per cent (year-on-year) as of July, according to the report by credit rating agency ICRA.
The uptick in sown area was led by rice (up 13.4 per cent YoY), pulses (up 3.5 per cent) particularly moong. Coarse cereals, particularly maize, contributed to a 3.7 per cent increase, with sowing at 108 per cent of normal area due to increased demand for biofuel.
The report expects agri GVA to grow by 4.5 per cent in Q1 FY26 and 3.5-4 per cent in FY26. This is led by healthy growth in output of rabi and most summer crops in AY2024-25.
Overall, presuming a healthy turnout for kharif output, the report expects the GVA growth of agriculture, forestry and fishing to print at 3.5-4 per cent in FY2026.
Kharif crops like rice, maize, bajra, jowar, soybean, cotton and several pulses are sown during the monsoon season, while summer crops like moong, urad and several vegetables are grown during the short period from March to June.
The India Meteorological Department's (IMD) expectations of above-normal rainfall during August-September 2025, coupled with the prevailing neutral El Nino, augur well to support the sowing of kharif crops.
All-India rainfall was above normal at 105 per cent of the Long Period Average (LPA) in July 2025, albeit lower than IMD’s forecast. Based on same estimates for August to September 2025, rainfall at the end of the entire season is implicitly expected to exceed 106 per cent of LPA.
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