September rains will cool down the heat of inflation, this way common people will get relief - Newztezz Online


Friday, September 15, 2023

September rains will cool down the heat of inflation, this way common people will get relief

The rains in agricultural areas in September have raised hopes that food inflation will reduce in India. Rice and soybean have benefited from the rains, whose sowing area has seen an increase. The area under sowing of paddy has increased by 2.7 percent year-on-year, while the area under soybean has increased by 1.3 percent.

Common people can get relief from inflation in the month of September. When retail inflation figures come out next month, the figure may be less than 6 percent. The reason for this is the rains in the country in the month of September. Due to which the production of rice and soybean may increase. Rice which has troubled the governments and common people not only at the national level but also at the international level.

The September figures that have come out in India have shown that due to excess rains, the two major Kharif crops, rice and soybean, will get a lot of help. Whose sowing area has seen an increase. Earlier in August, moisture stress had arisen due to severe shortage, which had increased the concern of decline in production.

Increase in area of ​​rice and soybean

According to government data, the area sown under paddy has increased by 2.7 per cent year-on-year to 40.3 million hectares till September 8, while the area under soybean has increased by 1.3 per cent to 12.54 million hectares. Amresh Kumar Nayak, director of the ICAR National Rice Research Institute, said the rice-producing northern states of Punjab and Haryana have met their water requirement through irrigation. But the eastern states, which are major rice producers, have received good rainfall in September, which has helped in rice transplantation, which was a major concern.

Rice was sown more in these states

According to experts, slower food inflation may give the central bank more room to ease its monetary policy to boost economic expansion. There is information about more sowing of paddy in Bihar, Chhattisgarh, Jharkhand, West Bengal and Uttar Pradesh. Nayak said that if this pace of rain continues for the next few days, then we will not see much difference in the size of the crop compared to last year. Similarly, September rains have helped the soybean pods from which oil is extracted to flourish, said DN Pathak, executive director of the Soybean Processors Association. He said that we were worried about the lack of moisture in the soybean crop. But now that (worry) has gone away.

Rainfall situation in September

Rain fell over central and southern parts of the country in the first few days of September, reducing the total rainfall deficit in the first half of the month by 6 per cent, which was followed by a 36 per cent deficit in August, which was the driest in 122 years. Central India, which was deficient by 47 per cent in August, has received 13 per cent more rainfall than the long period average (LPA), while the south has received 47 per cent more rainfall than the LPA this month. However, in the first 15 days of September, North-West and East/North-East are still short by 30 per cent and 44 per cent respectively. According to the Indian Meteorological Department, the southwest monsoon is expected to cause widespread rain in the central and eastern regions till September 21.

Connection between crop and inflation

The total sown area of ​​all crops is 108.85 million hectares, slightly higher than last year's 108.8 million hectares. Economists say rains will help, but the final harvest will decide the impact on inflation. Bank of Baroda Chief Economist Madan Sabnavis said the increasing area is certainly positive for rice, but it will have to be translated into bringing the produce to the market. Paras Jasrai, senior analyst at Ind-Ra, said that light rain can also play an important role. He said that sowing has been good, but attention has to be paid to the spatial variation in rainfall as it can have a big impact. For example, there has been rain deficiency in West Bengal, Uttar Pradesh and Punjab.

No comments:

Post a Comment