Key Points

Kharif sowing has surged 4% this year, with rice and pulses leading the growth. ICRA projects agriculture GVA to rise 4.5% in Q1 FY26, backed by strong monsoon forecasts. Higher demand for biofuels has boosted maize cultivation, covering 108% of the normal area. The IMD predicts above-normal rainfall, ensuring favorable conditions for sustained crop output.

Key Points: Kharif Sowing Up 4% as Agri GVA May Grow 4.5% on Monsoon Boost

  • Kharif sowing up 4% YoY with rice leading at 13.4% growth
  • Agri GVA projected at 4.5% in Q1 FY26 due to strong monsoon
  • Maize demand for biofuels pushes coarse cereals sowing to 108% of normal
  • IMD forecasts above-normal rainfall to sustain kharif crop momentum
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Kharif sowing up 4 pc, agriculture gross value added may rise 4.5 pc: Report

ICRA reports 4% rise in kharif sowing, projects 4.5% agri GVA growth in Q1 FY26 driven by strong monsoon and higher crop demand.

"The uptick in sown area was led by rice (up 13.4% YoY) and pulses, particularly moong. – ICRA Report"

New Delhi, Aug 2

Gross Value Added (GVA) in agriculture is projected to grow by 4.5 per cent in Q1 FY26 and the kharif sowing during this period might exceed last year's level by 4 per cent amid good monsoon, a report has projected.

Aided by favourable monsoon, kharif sowing has been completed on 76 per cent of the normal sown area, up four per cent (year-on-year) as of July, according to the report by credit rating agency ICRA.

The uptick in sown area was led by rice (up 13.4 per cent YoY), pulses (up 3.5 per cent) particularly moong. Coarse cereals, particularly maize, contributed to a 3.7 per cent increase, with sowing at 108 per cent of normal area due to increased demand for biofuel.

The report expects agri GVA to grow by 4.5 per cent in Q1 FY26 and 3.5-4 per cent in FY26. This is led by healthy growth in output of rabi and most summer crops in AY2024-25.

Overall, presuming a healthy turnout for kharif output, the report expects the GVA growth of agriculture, forestry and fishing to print at 3.5-4 per cent in FY2026.

Kharif crops like rice, maize, bajra, jowar, soybean, cotton and several pulses are sown during the monsoon season, while summer crops like moong, urad and several vegetables are grown during the short period from March to June.

The India Meteorological Department's (IMD) expectations of above-normal rainfall during August-September 2025, coupled with the prevailing neutral El Nino, augur well to support the sowing of kharif crops.

All-India rainfall was above normal at 105 per cent of the Long Period Average (LPA) in July 2025, albeit lower than IMD’s forecast. Based on same estimates for August to September 2025, rainfall at the end of the entire season is implicitly expected to exceed 106 per cent of LPA.

- IANS

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Reader Comments

S
Shreya B
While the numbers look positive, I hope this growth actually benefits small farmers and not just agri-business corporations. The report mentions biofuel demand - are we prioritizing fuel over food security? Need balanced policies.
A
Arjun K
Great to see pulses production increasing! As a consumer, I've seen dal prices skyrocket in recent years. More domestic production should help control inflation in essential food items. Jai Kisan! 🙏
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Priya S
The report is optimistic but we must remember climate change realities. My uncle in Maharashtra says rainfall patterns have become unpredictable. One good monsoon doesn't solve long-term water management challenges.
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Michael C
Interesting to see maize demand growing due to biofuels. India's agricultural sector is clearly evolving beyond traditional food crops. This could be a game-changer for rural economies if managed sustainably.
K
Kavya N
Hope the government uses this opportunity to invest more in agricultural infrastructure - better storage facilities, cold chains and food processing units. Otherwise, post-harvest losses will negate these gains.

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