Unseasonal rainfall is expected to increase prices of commodities in short supply and reduce the returns for farmers in commodities that are perishable and where farmers have lost their crop.
Wheat prices jumped 4% on Monday on news of heavy rainfall in wheat growing areas. The arrival of the new crop of wheat will be delayed by 10-15 days, which will keep the prices firm. Wheat production is also expected to fall by 3-4% because of the widespread rainfall in wheat growing states like Rajasthan, Madhya Pradesh, Gujarat, Bihar, Gujarat, and Maharashtra.
Prices of jeera, which were already ruling at record high levels, have moved upwards during past 3/4 days by 6-7% as the harvest ready crop has been damaged in Rajasthan.
Madhya Pradesh is the largest producer of chana in the country, where about half of the crop still standing in the fields will be damaged.
This rainfall is expected to substantially reduce the disposable surplus in the hands of the farmers, increasing worries about rural spending. Wheat farmers will now get lower prices for their crop as the rainfall will damage the colour, shine, size, and gluten content of wheat grains.
Isabgol, an important cash crop of Rajasthan, which is mostly exported, has suffered up to 50% loss. Prices of grapes have crashed by 30%-40% since a week as rainfall damaged the crops.”Isabgol is a very sensitive crop, 90% of which was standing in the fields. We fear about 50% loss to isabgol production,” said Ashwin Nayak, spices industry veteran from Rajasthan.
Heavy rains in the last one week have damaged harvest-ready crops of wheat, mustard, chana and summer fruits like mangoes, watermelons, muskmelons, bananas, and vegetables. Biggest loss will be borne by the wheat farmers as almost the entire crop was standing in the fields ready to be harvested in a period of a fortnight to a month.