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MOSL: AGRICULTURE-Maharashtra farm profitability under pressure; but set for a greener Rabi

Agriculture: Maharashtra farm profitability under pressure; but set for a greener Rabi

 

We attended the 'Kisan - India's Largest Agri Show' in Pune and interacted with farmers from various regions of Maharashtra, including Marathwada, Vidarbha and west. Key takeaways:

• In Kharif 2019, unseasonal rains dampened yield and quality of agri produce. This hurt realization and in turn profitability at the farm level. However, firm prices for maize and soybean will likely provide some support to farm profitability.
• That said, most farmers were unanimous in their view that Rabi acreage/yield will be better on the back of higher reservoir levels. As on 13th Dec'19, Rabi sowing was up 35% YoY in Maharashtra and 5.1% YoY at the pan-India level.
• Grappling with the issue of rising labor cost over the last few years, farmers are now keen to adopt mechanization techniques. At the event, farmers showed interest in equipment used in labor-intensive paddy/soybean sowing and harvesting activities.
• Key trends observed: (a) Digitalization of the value chain - BASF launched 'Xarvio Digital Farming Solutions' for crop scouting. (b) Airtight packaging solutions for protecting agri produce are gaining prominence. (c) Techniques to conserve water through creation of artificial ponds are becoming popular.