Dharashiv, India (Reuters) – Indian farmers’ hopes of bumper harvests after this year’s monsoon were dashed by heavy rains just before harvest that damaged their fields, destroying crops for millions of people who rely solely on agriculture for their livelihoods.
Losses are expected in crops such as cotton and soybeans, which is expected to increase farmers’ debt and limit rural consumption, which was forecast to grow after New Delhi reduced taxes on hundreds of consumer items.
“We were hoping to harvest 10 to 12 quintals of soybean per acre, but now we will be lucky if we get 2 to 3 quintals — and even that will require significant additional expenditure,” said farmer Kishore Hangargekar, using a unit equivalent to 100 kg.
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He was speaking after two days of incessant rain flooded his fields and submerged his crops in Dharashiv district in the western state of Maharashtra.
By then, the soybean crop was thriving, and farmers were preparing for the harvest.
Reduced productivity from excess rainfall is likely to halve agricultural growth to 3% to 3.5% in the December quarter from 6.6% a year earlier, said Garima Kapoor, an economist at Mumbai-based Elara Securities.
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Summer crops, such as soybeans, cotton, rice, vegetables, mature from September, a month in which there was rainfall 15% above this year’s average, with some regions receiving up to 115% more than normal.
Although agriculture contributes just 18% of India’s nearly $4 trillion economy, almost half of its 1.4 billion population depends on agriculture to earn a living.
No respite from the rain
Farmers are now scrambling to harvest summer crops before the start of winter sowing, which is due to begin next month, but the forecast for more untimely rain this week could delay planting and damage late-maturing summer crops.
Rain-damaged crops are fetching prices well below the government’s minimum support price as quality has deteriorated.
“Traders are buying the damaged crops at bargain prices and we have no option but to sell,” said farmer Sachin Nanaware, who sold his soybeans at 3,200 rupees ($36) per 100 kg (220 lb), below the government’s fixed price of 5,328 rupees.
Nanaware said he was hoping to buy a motorcycle and a television, but is now worried about paying off his bank loan.
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Excessive rain has increased soil moisture for winter crops such as wheat, canola and chickpeas, but many farmers say they cannot afford to buy seeds and fertilizer.
“We need money to buy seeds and fertilizers and to prepare the land,” said farmer Chaya Jawale.
“So we have no choice but to mortgage our gold jewelry.”
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Damage to soybean and cotton crops is expected to increase India’s vegetable oil imports in the marketing year from November by 1.5 million tonnes to a record 18 million, says industry analyst Thomas Mielke of Oil World.
