Farm sector GVA rises 3.7% in Q1 FY26, up from 1.5% a year earlier

Gross value added (GVA) for agriculture and allied activities is projected to grow at 3.7 per cent in real terms during the first quarter of FY26. This would be up from 1.5 per cent during the corresponding period of the previous financial year on hopes of good crop production in assessment year (AY) 2025-26.

 

The April-June quarter in any financial year is usually a lean period for farming and related activities. And, estimates are broadly compiled based on the target for that financial year, third estimates of the previous AY (2024-25 in this case) along with summer season estimates of major livestock products for FY26 and fish production estimates for Q1 of FY26.

   

The second advance estimates of area and production of horticulture crops for AY 2024-25 have also been considered for the first estimate of Q1 in agriculture, an official statement said.

 

In nominal terms, GVA growth for agriculture and allied activities is estimated at 3.2 per cent in the first quarter of FY26 against 7.5 per cent in the corresponding period of last financial year.

 

“Agriculture growth of 3.7 per cent is more of residual rabi harvest which will not cover the kharif crop for this year. This will get reflected in Q3 numbers (partly in Q2),” Madan Sabnavis, chief economist at Bank of Baroda said.

 

Sequentially, the estimates show that GVA growth for agriculture and allied activities in the first quarter of FY26 is estimated to be among the last three quarters.

 

Going forward, farm sector growth in the subsequent quarters is projected to be better. This is due to buoyant kharif production in 2025-26 on the back of strong monsoon performance.

 

The southwest monsoon from June 1 to August 29, across all parts of India cumulatively, has been 6 per cent above normal with South, Central and North-West India receiving 10 per cent, 9 per cent and 25 per cent surplus rains, respectively. Only East and North-East India got 18 per cent deficit rains during this period.

 

As a result of this, sowing of kharif crops till August 22 has covered 107.39 million hectares which is 3.54 million hectares more than the same period last year.

 

Paddy and maize have led the way with 2.9 million and 1.18 million extra areas covered this year so far in comparison to the corresponding period of last year.