The agricultural growth has dropped to 2 per cent in the first quarter of 2019-20, down from 5.1 per cent during the same period last fiscal, as per the data released by the Ministry of Statistics and Programme Implementation.
Crops, including fruits and vegetables, account for about 53 per cent, the livestock products 32 per cent, and forestry and fisheries 15 per cent share of Gross Value Added ( GVA includes taxes, but excludes subsidies) in agriculture, forestry, fishing sector.
As per the latest kharif crops cultivation report, sowing of kharif crops is expected to be lowered by 17.67 per cent till date. Both Skymet and CRISIL Research have projected lower kharif yield due to flood and excessive rain.
According to officials of Agriculture Ministry, the growth rate in agriculture sector has dropped to 2 per cent in the first quarter due to slowdown in economy. “Extreme weather seems to have an impact on farmer incomes and growth rate. Due to this, consumption has been reduced. The slowdown in economy impacted the foodgrain production in the current crop year. This also means India is no longer the fastest growing major economy in the world,” said officials.
Besides, floods and excessive rain in 15 States including Maharashtra, Odisha, Kerala and Andhra Pradesh, besides weak rain in West Bengal and the Marathwada region of Maharashtra, are expected to affect the kharif crop this year. High-intensity rain in August is likely to increase pest attack on maize and paddy. Besides, over 240 districts have received less rain this year which has impacted the agriculture growth rate.
According to the Agriculture Ministry report, 1,009 lakh hectare land are under cultivation of kharif crops so far as against the 1,029 lakh hectare last year due to delay rain, excessive rain and floods in several States.
The RBI annual report released on Thursday said that it was difficult to diagnose the reason or nature of India’s slowdown. “The diagnosis is difficult, these conditions are hard to disentangle cleanly, at least in the formative State,” the RBI report said.