2017

Oct 10 Mumbai

Agriculture: Profitability under a cloud


Summary

 

India, the second-largest food producer in the world, appears set for another year of near-bumper production despite the not-so-well-spread monsoon. Sowing for kharif crop, which is entering its last leg, is already close to last year's levels save for a few states.

 

Despite this, farms in most states could see a drop in profitability. Half of the top 15 states that account for over 60% of the annual sown area are showing a drop in average per hectare profitability for their top crops.

 

Among other things, lower commodity prices, too, could spoil the farmers' party. This, even as a surge in the gross non-performing assets on lending to agriculture and the announcement of waivers may whet the risks and turn lenders cautious on pre-harvest loans, which account for a large percentage of agriculture loans.

 

The talking points included:

  • What does this year's monsoon mean for agriculture?
  • How are crop profitability and mandi prices trending for major crops?
  • How will farm profitability vary by state?

 

The presentation was followed by a panel discussion and Q&A session.



Key findings

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