Agri-businesses shrug off demonetisation impact, grow by 5.2% in March qtr

Growth was due to record production of grains in FY17

The country’s gross value added (GVA) in the agriculture, forestry and fishing sector grew 5.2 per cent in the January-March quarter, final one of the 2016-17 financial year.

This was the highest in two years, with record production of foodgrain and horticulture. The GVA for agriculture and allied activities during the same quarter of the year before was 1.5 per cent. Output of grain was a record high despite the acute cash crunch right in the middle of the rabi sowing season. On November 8, 2016, the Centre had announced that the currency notes of Rs 500 and Rs 1,000 denominations would cease to be legal tender from midnight.

Even so, farmers brought a higher area under cereals, pulses and oilseeds as compared to previous years. 

The full-year GVA growth in agriculture, forestry and fishing is estimated ato 4.9 per cent, as against 0.7 per cent in 2015-16. Foodgrain production in the 2016-17 crop year was estimated at 273.38 million tonnes, the highest since Independence. Horticulture output is projected at 295 mt. Wheat production is estimated at a record of a little over 97 mt. That of pulses is estimated to be 22 mt.  The southwest monsoon in 2016 was the first normal one after droughts in 2014 and 2015. 

The rains aided a record kharif output and seemed to have a positive impact on the rabi.