PMEAC pegs farm growth at 4.8pc in FY'14 on good monsoon

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Growth expectations at 4.8 per cent for the current fiscal buoyed by good rains. Growth expectations at 4.8 per cent for the current fiscal buoyed by good rains.
SummaryThe good performance in agriculture will have moderating effect on food inflation.

Prime Minister's key economic advisor C Rangarajan today pegged agriculture growth at 4.8 per cent for the current fiscal on expectation of a record

foodgrains, pulses and cotton production buoyed by good rains.

The good performance in agriculture will have a moderating effect on food inflation though depreciation of the rupee may put some upward pressure, said the report of Economic Outlook for the 2013-14 fiscal released by him.

Related: PMEAC's C Rangarajan lowers GDP growth estimate to 5.3 per cent for FY14

The report of Prime Minister's Economic Advisory Council (PMEAC), headed by Rangarajan, however, recommended promotion of high-value agriculture and reforms in agri-marketing policies including the APMC Acts for boosting further growth.

Related: Keeping fiscal deficit target a challenge, says PMEAC

"Agriculture is projected to grow at 4.8 per cent in 2013-14 as against 1.9 per cent in 2012-13. Early and good monsoon had a huge positive impact on sowing activity. Thus, both kharif and rabi crops are expected to be good, " it said.

Related: Drawdown on foreign reserves to fund CAD

The farm sector growth will be higher than the growth trend of over 3.5 per cent in recent years, it said.

Driven by good monsoon and better reservoir position, PMEAC projected that overall, 2013-14 is likely to see higher output in rice and wheat, and significant gains in coarse cereals and pulses.

Related: There is no case for India's rating downgrade, says Rangarajan

"Output of foodgrain can be expected to hit a new record this year. ...Output of pulses may be en route to crossing 20 million tonnes -- the highest output level ever recorded, and nearly double the production level of decade ago," the report said.

Related: RBI to keep monetary policy tight till rupee stabilises, says PMEAC

The country had harvested record 259.49 million tonnes of foodgrain in 2011-12 crop year (July-June). However, it fell marginally to 255.36 million tonnes last year.

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