Farm sector to grow 3.7% in Oct-Dec on kharif output: 2nd advance estimates

The Gross Value Added (GVA) in agriculture and allied activities is projected to clock its best growth in FY23 during the October-to-December quarter, at 3.7 per cent, on the back of a strong kharif harvest, according to the second advance estimates of national income.

In the third quarter of FY22, GVA in the sector was 2.3 per cent at constant prices.

At current prices, the growth in the third quarter of this financial year is projected at 8.6 per cent, which is almost at the same level in the corresponding quarter of FY22.

This translates into an inflation impact of 4.9 per cent, the lowest in FY23.

The inflation impact came down in the third quarter of FY23 due to strong control measures initiated by the government and due to the global slowdown in commodity prices.

Overall, this financial year, the GVA for agriculture and allied activities is expected to remain at around 3.2 per cent at constant prices, compared with 3.5 per cent in FY22.  

Meanwhile, according to the second advance estimate of kharif production for the 2022-23 (July-June) season, rice output is expected to be about 108.07 million tonnes, which is lower than 111 million tonnes achieved last year.

Production was expected to be down due to drought-like conditions in the main growing regions of East India, such as UP, Bihar, Jharkhand and West Bengal.

According to the latest estimate, wheat crop in FY23 is projected to reach a record 112.18 million tonnes, up 4.12 per cent from last year, on the back of a sharp increase in acreage.