Following record high onion prices in 2015, farmers across the country have increased area under the crop substantially. However, prices have been ruling below the cost of production despite there being no restrictions on exports.
Despite floods hurting central and eastern India, farmers, traders and agriculture companies are hopeful about crop prospects this season, especially rice & pulses.
The state advised price, which is usually higher than the fair and remunerative price fixed by the Central government, was last revised in 2012-13.
A disinflationary trend could be seen in fruits and vegetables and items like pulses because of higher acreage of the latter and a normal monsoon after two straight years of drought.
India’s cotton production in 2015-16 declined to 338 lakh bales (one bale of 170 kg each), down 12.4 per cent from 386 lakh bales in the previous year.
However central government has claimed that sugar mills from Maharashtra have been holding sugar in anticipation of rise in prices.
Sugar prices have increased by more than 40% during the 2015-16 sugar year. However, mills claim that they have yet not been able to benefit of the rise in rates.
In a report released in April, the Australian Wool Production Forecasting Committee confirmed its December forecast of a 7% decline in shorn wool production in 2015-16.
The area under pulses has increased by 54 per cent, with urad registered the highest increase followed by tur and moong at 64% and 46%, respectively.
A July 26th forecast by National Australia Bank predicted a fall in chick peas and lentils from their peak of $1,200/tonne to $700/tonne by September 2017.
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