Centre front-loads Rs 1.41 trillion farm spending as El Nino risks loom

The central government has front-loaded agriculture spending, disbursing 21% of its full-year allocation of Rs 1.41 trillion in the April-June quarter, more than double the 9% spent in the same period last year, according to government data reviewed by Livemint. The department of fertilizers also spent 38% of its annual allocation by June, up from 26% a year ago. The move aims to cushion rural incomes and consumption against a weak monsoon and El Nino, which have left 47% of districts with deficient rainfall as of early August, the India Meteorological Department (IMD) said.

Union Agriculture Minister Shivraj Singh Chouhan, however, said on August 18 that the impact on kharif production is unlikely to be significant, as the sowing deficit has narrowed to less than 1% of the year-ago level. The Hindu Businessline reports that Chouhan noted rainfall was sufficient for crops in most parts and the number of vulnerable districts had fallen from 262 to about 100. He acknowledged localised impact in Karnataka and Telangana. Meanwhile, the European Centre for Medium-Range Weather Forecasts warned the best of the monsoon may be over, with El Nino strengthening, and private forecaster Skymet has cut its rainfall outlook to 85% of the long-period average, predicting a 70% chance of drought.