Business World

With Indian Meteorological Department projecting a welcome southwest monsoon season during 2020, the agriculture industry has started showing a spike in trade. In a recent report CRISIL has projected tractor industry likely to be unhurt from Covid-19. Unlike rest of the automobile industry that is facing double digit drop in sales,  tractor may still do well despite  37 per cent on-year decline combining April and May this year.

The IMD has forecast the south-west monsoon to be at 102 per cent of the long period average (LPA) in calendar 2020. Crucially, it sees rains well-distributed at 96-107 per cent of the LPA in all the four regions. The monsoon’s approach so far has been timely with rains ...

Hindustan Times

Businesses are banking on a bumper harvest and high rural incomes to drive demand for goods after the coronavirus pandemic stunted growth in the country’s cities, where most of the factories and offices are located.

Business leaders expect a normal monsoon, record sowing of summer crops, improved winter harvest and a raft of government measures to help farmers and boost rural incomes to boost demand for goods ranging from two-wheelers to tractors. Among others that stand to benefit are consumer durables makers, farm inputs producers, cement companies and essential goods manufacturers.

Tractor sales, a bellwether for rural demand, have picked up strongly across rural belts and are headed for a record growth in June, industry executives said.

Early Times India is the land of villages and agriculture is the main source of income for the farmers.70 per cent of the Indian population still thrives on the income generated through cultivation. Farmers are the spine of India. Agriculture sector is unquestionably the largest livelihood provider and is considered as the largest private enterprise in India. This sector provides the commodities and raw material required in non-agriculture and industrial sector. Although the contribution of this sector to the Gross Domestic Product (GDP) is declining year after year but still this sector is significantly contributing to the GDP of the nation. By 2030, when India’s population is estimated to be around 150 crores, the requirement of food grains will ...

Indo Asian Commodities

The normal onset and steady progress of monsoon have increased the sowing area under kharif crops to more than double the level a year ago until June 26, improving chances of another year of record grains production.

The area under all kharif crops was at 315.6 lakh hectare as on June 26, nearly 30 per cent of the ‘normal area’ of 1,064 lakh hectare. Monsoon covered the entire country on June 26, 12 days earlier than the normal schedule and at the fastest pace since 2013.

Though the government is betting on a bumper harvest to increase the overall agriculture growth and boost the rural economy, farm-gate prices will remain a key concern. A big positive ...

Business Standard

After three years of muted growth, agri input companies are eyeing a double-digit sales jump in the current kharif sowing season due to timely start and evenly distribution of the south west monsoon rainfalls, which triggered 30 per cent increase in acreage in June 2020.

Agri input companies faced multiple challenges like demonetisation, erratic monsoon and low prices of agri produce which battered farmers’ profitability and cash flows, leading to poor demand for agri inputs like fertilisers and pesticides. Their revenues, therefore, clocked a mere 5.8 per cent compounded annual growth rate (CAGR) between FY17 and FY19. But now their revenues are expected to grow 12-15 per cent and net profit by 30 per cent in FY21.

Auto Car Pro

The automotive industry in India may have witnessed one of the worst periods in a decade, and the ongoing Covid-19 pandemic just further added to it. But going by the gradual restarting of industry, and expectation of a well-distributed and normal monsoon – as forecast by the Indian Meteorological Department (IMD) recently – rating agency CRISIL expects there will be just 1 percent contraction in tractor sales volumes this fiscal.

The company says despite a 37 percent YoY decline in April and May combined, tractor volumes will likely be barely a percent below last fiscal’s level, in sharp contrast to a double-digit decline expected for the rest of the automobile industry. That, and lower raw material ...

The Hindu

The government remains tight-lipped on the possible extension of the Pradhan Mantri Garib Kalyan Anna Yojana, which was announced by Finance Minister Nirmala Sitharaman as part of the first rescue package during the COVID-19 pandemic. The scheme ends on June 30.

The scheme, announced for a three month period, covered 80 crore ration card holders. Each household was provided 5 kg of food grains (rice or wheat) and 1 kg of pulses (only channa) free of cost. Already, 21 states — both BJP-ruled and Opposition-led governments — have appealed to the Centre to extend the scheme for another three months till September.