Mumbai, August 24: The agricultural sector as a whole is expected to record its first decline after a record six years of continuous growth and is projected to contract by two per cent in 2009-10, Solvent Extractor’s Association of India (SEA) has said.
While Union Budget will aid the economic growth, the monsoon failure will hit growth this year. The precipitation during the first two months of the monsoon was 19 per cent below normal, SEA President Ashok Sethia said here today.
Barring Karnataka, the entire country suffered delayed or very low rains. The steep fall in the precipitation till July is expected to hurt both, the area sown this kharif season and the crop yield. Water reservoir levels have been low and the poor rains raise concerns regarding their replenishment this year, he said.
This has an impact on the winter rabi crop as well.
Foodgrain production is projected to decline by 5.6 per cent, oilseeds by 3.3 per cent, sugarcane by 8 per cent and cotton by 8.9 per cent. Overall agricultural crop production is projected to fall by 4.7 per cent in 2009-10, Sethia said.
The acreage under oilseed crops as on August 20, shows a decline and reported at 154.1-lakh hectares from 168.3 lakh hectares last year for the same period against normal area of 166.4 lakh hectares. Area under soybean is maintained at the same level of last year and reported at 94.5 lakh hectares as against 94.1 lakh hectares last year.
—Agencies