Three reasons why farm sector growth may be nearing its LPA in FY22

Farm Sector Growth: Swift progress of southwest monsoon, sharp surge in govt procurement and general uptrend in commodity prices this year could deliver better numbers

Agriculture and allied activities are expected to clock a growth of 3.6 per cent at constant prices in FY21, slightly lower than 4.3 per cent in the previous financial year, but closer to the long-term trend for the sector at 3-4 per cent.

At current prices, the growth is expected to be around 6.6 per cent in FY-21, down from 12.5 per cent in FY20.

This means that the inflation impact, which some experts also attribute to a measure of farmers’ income provided there is perfect transmission, is expected to be 3 per cent in FY21, down from