Mumbai: Sowing for Rabi season, which is still on, is slightly lower as compared to same time last year, which may translate into lower production and put pressure on prices, Care Ratings Friday said.
"The sowing for the Rabi season is currently on and the progress has not been very satisfactory. As on December 19, a total of 511 lakh hectares of land was under cultivation, compared with 540 lakh hectares at the same time last year," Care Ratings said in a report here.
Rabi season accounts for roughly half of the overall agricultural production, compared to last year.
The kharif output has been sub-optimal as per the First Advance Estimates of the Agriculture Ministry, it said. However, this has not translated as yet into any adverse impact on inflation.
Any deficit in area that is cropped can lead to lower production and put pressure on prices, it said.
However, it said, even as the Rabi crop progress as per area under cultivation has been lower than last year, there are still around 3-4 weeks left before sowing is completed.
Wheat is likely to make up for the shortfall and move closer to normal.
Area under wheat till December 19, stood at 268.3 lakh hectares, compared to 273.1 lakh hectares in the same period last year, it said.
The Rabi harvest is also important as it has to compensate for the lower kharif harvest to average out overall growth in agricultural production, which also goes into the Gross Domestic Product (GDP).
Agriculture growth was 4.6 percent last year and with kharif output declining, Rabi will have to grow by at least 2-3 percent to ensure that overall production remains in the positive zone, the report said.
Overall growth of 5.5 percent in GDP which has been projected by the Finance Ministry would be contingent on the farm sector contributing positively to this growth rate, it opined.
