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Kharif Sowing Near 2025 Levels; Rural Demand Seen Resilient

Kharif Sowing Near 2025 Levels; Rural Demand Seen Resilient
Kharif Sowing Close To 2025 Levels · m.rediff.com

Every year, farmers in India plant crops that are harvested in the autumn, and this is called kharif sowing.

This year, planting has nearly caught up to last year's levels, helped by rain across many parts of the country.

The rain sometimes stops for a little while, but it keeps coming back.

The next few weeks of rain are very important for the harvest.

Good rain means a good harvest and moist soil for the next round of planting, called rabi.

Some people worry that the rain might be weak, partly because of a weather pattern called El Niño.

A smart economist named Tanvee Gupta Jain says she does not think weak rain will hurt people's spending too much.

That is because farmers had two good years before this one, and the government is giving money and other support to villages.

She says rural families have stronger savings and easier access to loans now.

So even if things slow down a little, rural households should still be okay.

Key facts

Kharif sowing status
Nearly at 2025 levels as of week ended August 7
Weather
Rainfall continued across parts of India with occasional breaks
Analyst
Tanvee Gupta Jain, chief India economist, UBS Securities
Report
Rural Demand at Crossroads (UBS)
Rural demand outlook FY27
Sharp decline unlikely; growth could moderate from current levels
Supporting factors
Good crop years in 2023-24, government spending, welfare transfers, GST-related benefits, strong credit growth
Key risks
Below-par monsoon, El Niño concerns
Source
Business Standard (Sanjeeb Mukherjee)

Sources

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