MUMBAI, Aug 13 (Reuters) - Erratic monsoon rains and lower sowing may cut the output of summer-sown crops in India, pushing up food prices and inflation, which is into double digits already.
The total area under all major summer-sown crops like rice, maize, oilseeds, pulses, cotton and sugarcane has fallen nearly 5 percent on year to 78.2 million hectares this year up to Aug 7, government data showed.
"Area under cultivation was lower than last year. This kind of trend points towards lower kharif crop," said Madan Sabnavis, chief economist at National Commodity and Derivatives Exchange, the biggest exchange for agriculture commodities in the country.
India's annual monsoon rains, crucial to its economy, covered the southern and western parts of the country in early June, ahead of the usual time of arrival, boosting hopes of good output, but soon weakened, which may impact acreage and yield.
It revived by July-end and early August, but heavy downpours led to a flood-like situation, damaging part of the crop.
"The monsoon is certainly less than perfect. It has been delayed in western parts impacting oilseeds and pulses crop," said a chief general manager in National Bank for Agriculture and Rural Development (NABARD).
The bank is the apex body that facilitates credit flow for promotion and development of agriculture and allied industries.
Sixty percent of the country's cultivable land is dependent on the monsoon for irrigation, and farm-related activities are the main source of livelihood for three-fifths of India's billion-plus people.
"I spent 20,000 rupees for ploughing and other land preparation operations. But I failed to cultivate anything on six acres due to scanty rains," said Bharat Mali, a 35-year-old farmer in Sangli district, around 400 km from Mumbai.
A flood-like situation still persists in many parts of the southern state of Andhra Pradesh and Maharashtra in the west.
"If the same condition continues for 15 days then definitely overall output is going to get impacted," Sabnavis said.
Area under oilseed cultivation was expected to rise, guided by higher prices, the NABARD official said. However, except soybean the area under all other oilseeds has fallen sharply.
India is not self-sufficient in edible oil and pulses and imports them in bulk.
"We need to import more pulses this year. Government agencies have already floated large import tenders," K.C. Bhartiya, president of Pulses Importers' Association of India, said.
"But there is a shortfall in international market as well and prices are very high. So prices will remain on higher side in Indian market," he said.
India's edible oils import may jump more than 50 percent in the first half of the crop year from November, as its summer-sown oilseed crop is set to fall 13 percent due to weak rainfall, Govindbhai Patel, a leading trader, told Reuters last month.
"Prices are expected to rule firm in coming months due to lower output and good demand," Harish Galipelli, head of research at Karvy Comtrade Ltd, said.
India's festival season starts from end-August and demand for agricultural commodities like sugar, edible oil usually increases ahead of the season.
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