Kharif seen sprouting higher yields

Rural India could be in for a boom this kharif marketing season as growers are set to harvest better crop and get better prices. Almost all crops, barring the possibility of unseasonal rains, could follow the script of higher output as estimated by the Agriculture Ministry. However, rice production could be lower than Government's estimates. A clear picture is yet to emerge on sugar production but growers could still gain as production is likely to be higher than last year and exports are on the cards. Farmers in southern States, in particular, could reap the benefits of early rain, export demand and surging prices of edible oils and maize (corn). Cotton is likely to be the king of kharif crops as it is set for record production. Demand from exporters and spinning mills have already resulted in sharp rise in its prices. Pulses production is likely to be higher and though prices have dropped, they may not drop below the minimum support price level. Damages have been reported from Andhra Pradesh and Karnataka but they are unlikely to have a significant impact on overall production. In September, the Centre pegged kharif foodgrain production at 114.63 million tonnes (mt), up from last year's 103.84 mt.