Amid the coronavirus lockdown, while many other sectors of the economy are falling into depression, the agriculture sector seems to be witnessing an uprising growth. According to NITI Aayog, the sector is estimated to grow at a rate of 3 percent for the year 2020-21 despite the spread of COVID-19 and the ever-extending lockdowns.
At a press conference, one of NITI Aayog’s member Ramesh Chand stated that the growth of the agriculture sector is 60 percent more than the other non-agriculture sectors, which is considered as a very rare happening. While the agriculture sector is witnessing a skyrocketing growth, agriculture-related segments like fertilizers, food grains, and tractors are also witnessing an uprising demand.
The tractors are being demanded outrageously while the output is less because of the factories operating at a quarter of their capacity. There are big players like Mahindra & Mahindra that are thinking of working in a second shift in order to deliver the required output to meet the demand. Moreover, some other players have indicated that the market would return to a normal situation within a quarter. However, experts suggest that the segment will continue to grow and will give its best performance in the automotive industry.
In a conversation with ETAuto, the Chief Executive of Farm Equipment Business of Mahindra & Mahindra, Hemant Sikka said, “Enquiry levels are going up, with 65% of our markets opened, this will go up to 80% within a week. The cash flow is strong in the rural area on the back of a very good harvest. The government has been proactive in getting the mandi system moving. If the infection curve does not worsen, we can return to normalcy within a quarter.”
As per reports, more than 80% of wholesale agriculture markets are now fully functional whereas, during the initial lockdown period, only 40% of markets were operational.
