In the fiscal year 2024-25, agricultural output growth is anticipated to reach a five-year high of over 6%, supported by a normal monsoon and a low base effect. The India Meteorological Department predicted above-normal monsoon rainfall, signaling relief for agriculture after recent challenges. Despite challenges faced in the previous fiscal year, including El Niño impacts, the outlook for the current year appears optimistic.
Interestingly, in the FY25 interim budget, the government has allocated ₹86,000 crore for the state-fun rural job scheme, the same as the revised estimates for FY24.
Additionally, factors such as inflation in pulses and vegetables, as well as favorable conditions for rain-fed crops and millers, are being monitored closely. Despite fluctuations in food prices, expectations of increased production and easing inflation in certain commodities are on the horizon.
Commenting on the same, Mr. Maninder Singh, Founder & CEO of CEF Group says, “The news of a potential five-year high in agricultural output for FY25 is incredibly encouraging. The focus on sustainable practices aligns perfectly with the potential agricultural boom predicted. It's important to remember that a normal monsoon season plays a vital role in this growth.”
According to Mr. Rajesh Aggarwal, Managing Director of Insecticides (India) Ltd, "The projected increase in farm output stresses the importance of collaboration between the public and private sectors in supporting farmer prosperity. The government's efforts to create a conducive environment for agricultural growth, including initiatives to improve farmers' access to credit, technology, and markets are applaudable. By working together with policymakers and other stakeholders, the industry can unlock the full potential of Indian agriculture and ensure a brighter future for farmers nationwide."
This comes at a time when food inflation remains high though it eased slightly in March. The prices of food products like paddy, cereals, onion, potatoes, fruits, and meat rose during the month.
