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    GROUNDNUT PRODUCTION FORECAST

    India may import more food, feed and farm commodities as drought hits crops

    Amid predictions of drought in India this financial year, food and agricultural imports are anticipated to rise sharply. With serious reductions in kharif soybean and groundnut production, import requests are growing. The sugar and poultry industries are grappling with soaring feed costs, prompting an extension for raw sugar imports to be granted.

    Double trouble at the dinner table: When will food prices normalise for Indians?

    India’s food inflation: Food prices are rising unevenly, impacting household budgets, while inflation is projected to persist in upcoming months. Economists expect food inflation to reach up to 7% in the near future due to various factors. Weather risks, particularly from El Niño, could significantly affect crop yields and consequently food prices. Additionally, global events in West Asia contribute to higher energy and logistic costs.

    Pulses, oilseed prices rise as rain deficit hits crops

    Key pulse and oilseed prices have risen sharply compared to last year. Scanty rains are affecting the current kharif crop and raising rabi season output concerns. Tur and chana prices have increased significantly, while soyabean and groundnut have seen larger jumps. Forecasts of El Nino are also impacting chana prices for the upcoming rabi season. Despite output worries, industry veterans state the supply situation remains stable.

    From farm ponds to AI chatbots: India's blueprint for revitalising dryland agriculture
    RBI MPC Meeting 2026: Central bank flags a threat for Indian agriculture warming up in the Pacific

    The RBI has flagged El Niño and an uneven southwest monsoon as key risks to agriculture, rural demand and the broader economy, despite cutting its FY27 inflation forecast to 5%. Governor Sanjay Malhotra said government measures, including climate-resilient crops, water conservation and adequate foodgrain stocks, should cushion the impact, though volatile crude prices and geopolitical tensions continue to pose inflation risks.

    Kharif sowing picks up, but still 21% below last year

    Kharif sowing lags significantly behind last year due to delayed and uneven monsoon rains. Paddy, pulses, and oilseeds acreage shows substantial year-on-year declines. This reduced planting raises concerns about potential crop output and food inflation. Sugarcane acreage has seen a slight increase, bucking the overall trend. Below-normal rainfall forecasts for July further exacerbate these agricultural challenges.

    The Economic Times
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