Government's Proactive Measures Amid El Nino Concerns
Monitoring El Nino's Impact on Agriculture
With rising worries regarding the potential effects of El Nino, Union Minister Piyush Goyal has stated that both the central and state governments are vigilantly observing the situation. He emphasized that essential actions will be taken to confront any challenges that arise. Goyal remarked, "El Nino represents a global crisis, and we are closely monitoring developments. The Central and Maharashtra governments are ready to implement all necessary measures. Our primary focus is on farmers, and we are dedicated to their welfare and comprehensive development. Should a water shortage occur, we will take all required actions to address it."
In discussing the support for fertilizer pricing during global disruptions, Goyal noted, "During the conflict, the cost of a fertilizer bag surged to Rs 3,000; however, the Central Government absorbed this entire price increase within its budget. Currently, farmers can purchase a bag of fertilizer at the same price they did 12 years ago. A 90 percent subsidy was necessary, and PM Modi ensured that the Central Government shouldered this burden, preventing any financial strain on the states or farmers."
An ICICI Bank Research report indicates that the intensifying El Nino conditions and a delayed southwest monsoon are beginning to impact India's kharif crop season, with sowing activities lagging behind last year's figures, especially in pulses and oilseeds. The report highlighted increasing weather-related risks to the agricultural season, noting that "El Nino conditions have recently intensified, with the relative index surpassing the threshold level, suggesting further escalation. Importantly, the IMD has adjusted its rainfall forecast downward." The report also pointed out that rainfall distribution has been inconsistent across various regions, with key agricultural states like Gujarat, Maharashtra, Chhattisgarh, Madhya Pradesh, Telangana, and Bihar experiencing below-average rainfall this season. Nevertheless, it was noted that not all crop categories have been equally impacted, as rice acreage has increased by 28.4 percent year-on-year, and coarse cereals acreage has risen by 10.4 percent, which has helped mitigate some of the declines observed in pulses and cotton.