India: Uneven rainfall distribution may cause supply shock in crop prices
The report highlighted that crop damage in certain regions, where rainfall has been deficient, could lead to upward pressure on prices.
According to the report, several states have received excess rainfall. Rajasthan recorded 118 per cent above the Long Period Average (LPA), Madhya Pradesh received 57 per cent above LPA, Gujarat saw 48 per cent above LPA, and Haryana received 24 per cent above LPA.
In contrast, Karnataka (8 per cent above LPA), West Bengal (4 per cent above LPA), and Chhattisgarh (3 per cent above LPA) have received normal rainfall.
"The divergence in rainfall distribution implies a near-term supply-shock in prices of key crops that are produced in affected areas, due to crop damage," the report stated.
On the other hand, key agricultural states such as Bihar (42 per cent below LPA), Telangana (22 per cent below LPA), Andhra Pradesh (15 per cent below LPA), Tamil Nadu (6 per cent below LPA), Maharashtra (3 per cent below LPA), Punjab (2 per cent below LPA), and Uttar Pradesh (2 per cent below LPA) have received lower-than-normal rainfall.
Despite the uneven rainfall, the report mentioned that the kharif sowing has shown positive growth. Out of the normal sowing target of 109.7 million hectares, 70.8 million hectares have already been sown, compared to 68.0 million hectares in the same period last year. Last week alone, the sown area was 59.8 million hectares.
India's cumulative rainfall, as of July 21, stands at 374 mm, which is 6 per cent above the long-term average. However, this is a decline from the 9 per cent surplus recorded last week, mainly due to reduced rainfall in the Central and Northeast regions of the country.
The report suggested that while overall kharif sowing is progressing well, the divergence in rainfall could impact crop production in rain-deficient regions and may lead to supply-side price pressures in the near term.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Observer
6 hours ago
- Observer
13 tonnes of local honey showcased in Salalah
SALALAH: The 2025 edition of the Omani Honey and Turmeric Exhibition officially opened at the Grand Mall in Salalah. Organised by the Directorate-General of Agriculture, Fisheries and Water Resources in Dhofar Governorate, the exhibition — now in its third year — will run until the end of August and serves as a platform to promote high-quality local products and support entrepreneurs in the agricultural sector. This year's event features the participation of a wide range of farmers and beekeepers, highlighting Dhofar's rich natural resources, especially in honey and turmeric production, both of which enjoy a strong reputation locally and internationally. Eng Fael bin Mohammed al Jahfali, Director-General of the Directorate, emphasised that the exhibition is part of ongoing efforts to support agricultural production chains and enhance the economic value of local products. 'We aim to create a supportive environment for SMEs, while also fostering partnerships between farmers, consumers, companies and specialised institutions,' he said. Dhofar's unique geography and diverse pastoral environments provide ideal conditions for year-round beekeeping. The governorate is renowned for a variety of honey types, including frankincense, sidr, gum Arabic, samr, Rub' al Khali flower, sarb season floral and wild tree honeys. Currently, the governorate has 132 registered beekeepers managing approximately 11,000 beehives, with an estimated annual production of 90 tonnes of honey. Turmeric farming, localised in the mountainous areas of Dhofar, is also seeing promising growth. The 2024 season produced over 90 tonnes, and projections for 2025 indicate a potential yield of at least 150 tonnes, reflecting its rising economic, nutritional and therapeutic significance. The exhibition showcases over 13 tonnes of honey from 16 participating beekeepers, along with a dedicated section for Omani turmeric products. The event was inaugurated by Dr Talib bin Ali al Siyabi, Director-General of Finance in Dhofar Governorate. - ONA
Muscat Daily
8 hours ago
- Muscat Daily
Oman to take part in 2nd UN Food Systems Summit in Addis Ababa
Muscat – As per Royal Directives of His Majesty Sultan Haitham bin Tarik, Saud bin Hamoud al Habsi, Minister of Agriculture, Fisheries and Water Resources, will lead Oman's delegation at the 2nd UN Food Systems Summit Stocktake (UNFSS+4) in Addis Ababa, Ethiopia. The two-day summit, beginning on Monday, has been jointly organised by Ethiopia and Italy. The summit will focus on addressing challenges and opportunities in developing sustainable food systems while supporting international efforts to achieve Sustainable Development Goals. Since the previous UN Food Systems Summit+2, the Ministry of Agriculture, Fisheries and Water Resources has aligned its sectoral strategies with both Oman Vision 2040 – particularly its 'sustainable environment' pill-ar for natural resource conservation – and the UN SDGs in coord- ination with guidelines from Food and Agriculture Organization. The participation underscores Oman's commitment to global food security initiatives while implementing national policies for sustainable resource management. The summit comes as countries worldwide reassess food systems following recent global supply chain disruptions and climate change impacts on agricultural production. Oman's delegation will share the country's experiences in water resource management, fisheries sustainability and agricultural development during working sessions. The high-level UN meeting will bring together policymakers, scientists and private sector representatives to evaluate progress since the 2021 Food Systems Summit and accelerate transformation towards more resilient, equitable and sustainable food production and distribution networks worldwide. Oman's involvement reflects its active role in addressing both regional and global food security challenges through multilateral cooperation.
Observer
15 hours ago
- Observer
FTA with Oman almost finalised: Indian Minister
India's trade talks are in a 'very advanced' stage with the US, Oman, and the European Union, the country's Commerce and Industry Minister Piyush Goyal said on Saturday. Addressing reporters on Saturday, the minister said that the FTA with Oman is 'almost finalised', while negotiations with the EU and the US are 'making fast progress'. According to details on the Indian Embassy website, Indian The economic and commercial relations between India and Oman are robust and buoyant. Bilateral trade during FY 2023-24 reached US$8.947 billion and and for the FY 2024-25 reached US$10.613 billion. Investment flows, both ways, have been robust, as reflected in Numerous joint ventures have been established both in India and Oman. There are over 6,000 India-Oman joint ventures in Oman with an estimated investment of over US$776 million. Indian companies are investors in Oman, particularly at Sohar and Salalah Free Zones. The cumulative FDI equity inflow from Oman to India during April 2000 to March 2025 is US$605.57 million. Oman is India's 28th largest trading partner in FY 2024-2025, with total trade of US$10.61 billion, while India is Oman's third-largest non-oil export partner and fourth-largest in terms of imports. The main items of India's exports to Oman during the calendar year 2024 were light oils and preparations; Aluminium oxide other than artificial corundum; Rice; Boilers, machinery and mechanical appliances, parts thereof; Aeroplanes and Other aircraft and spacecraft; Electrical machinery and equipment and parts thereof; Other beauty / make up preparations; Plastic and articles thereof; Iron and Steel; Ceramic products, etc. The main items of India's imports from Oman during the calendar year 2024 were Petroleum oil crude; Liquefied Natural Gas; Urea, including fertilizer grade; Organic chemicals; Anhydrous ammonia; Sulphur, Earth and Stone, Plastering Materials, Lime; Plastic in primary forms.
