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.
