July 13, 2010

 

Monsoon's revival stimulates crop planting in India

Revived monsoon rains in India accelerated the planting of oilseeds and cotton last week, increasing the possibility of a strong harvest that should help calm soaring food prices.

 

The area under cotton cultivation rose by half, compared with the previous week, as monsoon rains reach 2% above normal, ending a two-week dry spell since June 18, agriculture ministry data showed on Monday (Jul 12).

 

Monsoon rains have been slightly below normal in the past two to three days but traders said heavy rainfall in the previous week had softened the soil, helping farmers plant crops.

 

Rainfall was 16% below average in June, then the shortfall narrowed to 10% last week.

 

While total rainfall since June 1 is now 13% below normal, key crop areas such as the soy-growing Madhya Pradesh in central India have received adequate rains.

 

"What's encouraging is that rainfall is uniformly distributed across the country rather than concentrated in specific areas, which bodes well for crop sowing," Citigroup said in a report.

 

Good rainfall leading to higher farm output should help Prime Minister Manmohan Singh's government tame high inflation that has triggered widespread street protests including a nationwide general strike. Weather officials expect adequate rain in the coming days.

 

Rainfall in soy-growing central regions may decline this week, weather officials said. Traders said soy sowing would continue as widespread rain last week had softened the soil.

 

On Friday (Jul 9), Agriculture Minister Sharad Pawar said the revival in monsoon rains would result in strong farm output, which was badly hit by last year's driest season in 37 years.