Above-normal monsoon to spur rural demand

THE FORECAST OF "above-normal" southwest monsoon rains by the India Meteorological Department (IMD) has raised hopes of robust production of major crops, including rice, pulses, cotton, maize and sugar, as well-dispersed and timely rains would ensure improved yields and price stability, major agricultural companies have stated.

- SANDIP DAS

They said that this would also help boost rural consumption demand. "A good monsoon benefits the agrarian economy with improvement in crop yields and farmer incomes, driving positive sentiments. Together with increase in agricultural acreage and timely interventions spearheaded by the government, an above-normal monsoon is expected to boost rural demand in the days to come," S Sivakumar, group-head, agri-business, sustainability and IT, ITC, one of the largest integrated agri-business enterprises, told FE.