will government's massive surge in investment ... - Myiris.com

Apr-Jun 2013 Earnings Preview
Sowing patterns across crops‐lakh hectares
Crop Area in 2013‐14 Area in 2012‐13 YoY gr.
Rice 39.1 29.7 32%
Pulses 10.5 - NA
Coarse cereals 29.3 5.6 425%
Oilseeds 60.7 11.8 413%
Sugarcane 47.4 49.4 ‐4%
Cotton 55.8 31.4 78%
Jute & Mesta 8.2 8.1 1%
Total 251.0 135.9 85%
Source: Ministry of Agriculture, PL Research
Average MSP hike of 5% for kharif 2013‐14 (lower than average of
12% of last three years)
The govt. has announced the MSPs for kharif 2013-14; average MSP hike is to the
tune of 5% which is sharply lower than the average hikes of 12% effected during the
last three years. For certain crops like urad, jowar, ragi, sunflower seed and
nigerseed, the MSPs have been kept unchanged. Paddy rates have been hiked by
5.0%. However, the largest increase in MSP was seen in tur and soyabean where
MSPs were hiked in excess of 11% so as to encourage domestic production and
replace imports.
MSP YoY increases
YoY 2006‐07 2007‐08 2008‐09 2009‐10 2010‐11 2011‐12 2012‐13 2013‐14 Current
Paddy
Rs/qtl
(i) Common variety 1.8% 11.2% 31.8% 17.6% 0.0% 8.0% 15.7% 4.8% 1,310
(ii) A - Grade 1.7% 10.7% 30.4% 17.0% 0.0% 7.8% 15.3% 5.1% 1345
Wheat 15.4% 33.3% 8.0% 0.0% 1.9% 1.8% 14.7%
Tur / Arhar 0.7% 9.9% 29.0% 15.0% 30.4% 6.7% 20.3% 11.7% 4,300
Moong 0.0% 11.8% 48.2% 9.5% 14.9% 10.4% 25.7% 2.3% 4,500
Sesame 0.6% 1.3% 74.1% 3.6% 1.8% 17.2% 23.5% 7.1% 4,500
Urad 0.0% 11.8% 48.2% 0.0% 15.1% 13.8% 30.3% 0.0% 4,300
Jowar (Hybrid) 2.9% 11.1% 40.0% 0.0% 4.8% 11.4% 53.1% 0.0% 1,500
Jowar (Maldandi) 11.7% 38.7% 0.0% 4.7% 11.1% 52.0% 0.0% 1,520
Bajra 2.9% 11.1% 40.0% 0.0% 4.8% 11.4% 19.9% 6.4% 1,250
Maize 0.0% 14.8% 35.5% 0.0% 4.8% 11.4% 19.9% 11.5% 1,310
Ragi 11.1% 52.5% 0.0% 5.5% 8.8% 42.9% 0.0% 1,500
Cotton (Medium Stable) 1.7% 38.9% 0.0% 0.0% 12.0% 28.6% 2.8% 3,700
Cotton (Long Stable) 0.5% 2.0% 47.8% 0.0% 0.0% 10.0% 18.2% 2.6% 4,000
Groundnut-in-shell 0.0% 2.0% 35.5% 0.0% 9.5% 17.4% 37.0% 8.1% 4,000
Sunflower seed 0.0% 0.7% 46.7% 0.0% 6.1% 19.1% 32.1% 0.0% 3,700
Soyabean (Black) 0.0% 1.1% 48.4% 0.0% 3.7% 17.9% 33.3% 13.6% 2,500
Soyabean (Yellow) 1.0% 2.9% 32.4% 0.0% 3.6% 17.4% 32.5% 14.3% 2,560
Nigerseed 1.7% 1.6% 94.0% 0.0% 1.9% 18.4% 20.7% 0.0% 3,500
Source: Ministry of Agriculture, PL Research
July 8, 2013 33