Demonetisation effect may linger on agri-commodities
New Delhi, Feb 1, 2017, DHNS:
Sounding a word of caution, the Economic Survey has said the effects of demonetisation could linger on supplies of agricultural commodities such as milk, sugar, potatoes and onions. Vigilance is essential to prevent other agricultural products becoming in 2017-18 what pulses were in 2015-16, according to the Economic Survey 2016-17 tabled in Parliament by Finance Minister Arun Jaitley.
It said milk procurement had been low due to currency shortage and sugar supplies could be hit as drought in southern states would restrict production of cane. It pointed out that sowing for onions and potatoes had been low which could affect their supplies. The Survey, however, pegged agricultural growth at 4.1% – the same as the Central Statistical Organisation estimated – on the back of a good monsoon after two successive drought years. Last year, the farm sector grew at a dismal 1.2%.
At 84%, the farm credit growth has been impressive when compared with 59% achieved by September 2015. The credit target for 2016-17 was fixed at Rs 9 lakh crore as against Rs 8.5 lakh crore set for 2015-16, it said. It pointed out the challenges facing the sector like regulation on farm trade, issues related to IPR in seeds and frequent recourse to stock limits among others creating “uncertainty” for farmers.
It said milk procurement had been low due to currency shortage and sugar supplies could be hit as drought in southern states would restrict production of cane. It pointed out that sowing for onions and potatoes had been low which could affect their supplies. The Survey, however, pegged agricultural growth at 4.1% – the same as the Central Statistical Organisation estimated – on the back of a good monsoon after two successive drought years. Last year, the farm sector grew at a dismal 1.2%.
At 84%, the farm credit growth has been impressive when compared with 59% achieved by September 2015. The credit target for 2016-17 was fixed at Rs 9 lakh crore as against Rs 8.5 lakh crore set for 2015-16, it said. It pointed out the challenges facing the sector like regulation on farm trade, issues related to IPR in seeds and frequent recourse to stock limits among others creating “uncertainty” for farmers.
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