According to the report, it is a record high Kharif sowing, leading to a bumper Kharif harvest. And it indicates that Indian farmers are about to ride high this season. The Food Price Index of UN Food and Agriculture Organization (1) has gone upwards in the last three months. Also, annual food inflation based on the global index had bounced from negative territory in August.
This change turns out as good news for Indian farmers who will be sitting on a good harvest. It was possible because of the timely monsoon rainfall. The center’s push to the agricultural sector in the four months of the financial year helped.
International food prices have been volatile for almost a year. It also continues to slump as the world grappled with the pandemic, while it touches a record high since December 2014. Between August 2019 and January 2020, inflation based on the FPI raised from 1.99% to 9.94%.
The Change in the Index Within Months
With the outbreak of COVID-19, the FPI crashed from a 61-month high in January to a 48-month low in May. The same can attribute to a collapse in world food trade. And demand as most countries imposes lockdowns to curb the spread of the novel coronavirus.
After an extended, the period of low producer realizations, supplies of many commodities were tightening. Commodities like sugar, rice, skimmed milk powder, and palm oil were among them.
However, now the index is gaining for three straight months, June, July, and August. It is getting indicative of a price recovery. In fact, in some commodities such as wheat, raw sugar, coffee, soybean, and cocoa, is already apparent. This price increase in certain items also signals well for Indian peasants.
On Friday, the Ministry of Agriculture said it is a record high Kharif crop sowing this season in India. It is about on the back of 8.4% above average monsoon rainfall. He further added that a record of 1,095.35 lakh hectares area is sown until now.