India witnessed a bumper rabi season this year. However, Mandis across the country remained under lockdown, resulting in lower commodity prices, adversely impacting farmer's income.
Despite an overall increase in food grain production, their arrival into the market has declined by over 70% since the last year.
The government is trying to aid farmers by procuring crops at the minimum support price. However, the delay in procurement has caused a deep financial crunch for farmers. They also face the untimely risk of rain and hailstorms destroying the crop.
Key takeaways:
As per an estimate, realizations in maize, cotton and soybean have dropped by more than 20% since the last year. Although the situation is challenging for the farmer community; companies sourcing Agri commodities as raw material stand to garner major benefits.
