Ahead of the seven-phase Lok Sabha elections, keeping food prices under check has emerged as one of the topmost priorities for the government. Food prices would likely have a bearing on the preferences of voters. In the past, there have been instances when governments have been voted out over rising food inflation.

Onion and potato production is expected to be down in the 2023-24 crop year, while the tomato output could be marginally higher, the Department of Agriculture's first advance estimates of horticultural output released on Thursday showed. "Production of onion in 2023-24 is expected to be around 25.47 million tonnes compared to around 30.20 million tonnes last year due to a decrease of 3.43 million tonnes in Maharashtra, 0.99 million tonnes in Karnataka, 0.35 million tonnes in Andhra Pradesh and 0.31 million tonnes in Rajasthan," the official statement by the department of agriculture said.

The central government plans to increase the number of highly beneficial neem trees in the country from the existing one tree for every 50 Indians to one tree for every 10 Indians to meet the rising demand from different sectors for neem oil. Presently, India has 18-20 million neem trees in the country, of which 40-45 per cent are in Uttar Pradesh, followed by Maharashtra, Rajasthan, and Tamil Nadu, among others. To achieve the target, the number of neem trees has to rise to almost 140 million.

A few days back, Atul Ganatra, president of the Cotton Association of India, presented a grim scenario of the crop's prospects in the 2024-25 season that starts in October. Addressing the association's annual general meeting, Ganatra said the area under the crop could go down by at least 10 per cent in the coming season due to falling yields and realisation, leading to farmers losing interest. The fear of a decline in acreage comes against the backdrop of India's cotton production probably falling to its lowest in a decade, according to estimates.

If states have to fall in line with MSPs declared by political parties, they will have to do so in violation of central order or bear the full expense of the surplus procured at above MSP rates.

Higher growth in vegetable demand relative to supply in the recent past has led to an upward trend in inflation, with spikes becoming more frequent. A study by rating agency Crisil found that vegetable inflation has been the most volatile in the food category, in fact. Inflation volatility is detrimental for both consumers and farmers and also sidetracks policymakers in the short term, necessitating frequent and repeated price-smoothing measures.

The government's decision to impose a 20 per cent export duty on parboiled rice and a $1,200 per tonne minimum export price (MEP) on basmati rice has pulled down overseas shipments of the former by almost 83 per cent and around 30 per cent of basmati exports in a month. Data sourced from various trade agencies and shippers showed that between August 25 and September 20, export of basmati rice has shrunk from 342,605 tonnes in 2022 to around 241,083 tonnes in 2023. Similarly, export of parboiled rice, after the imposition of 20 per cent duty during the same period, has dropped from 1.16 million tonnes in 2022 to just around 204,190 tonnes in 2023.

The Centre, for the first time, has initiated a draft proposal for setting up an All India Institute of Medical Sciences (AIIMS)-like institute of national importance for animal health, education and research in Delhi to be called the All India Institute of Veterinary Sciences (AIIVS).

After a steady surge, prices of pulses, except those of urad and masoor to some extent, are showing signs of stabilising amid a revival of monsoon rains over major growing areas of Maharashtra and Karnataka, and on expectations of a rise in imports. Chana prices, which too had moved up in recent months, have dropped by almost 3 per cent since the end of August due to increased liquidation of government stocks, official data shows. Monsoon rains seem to have benefitted the standing soybean crop as well.

Even before NCP-Ajit Pawar leaders came to meet in Delhi, the central government decided to buy 200,000 tonnes of onions from farmers at Rs 24.1 per quintal. This was among the highest prices at which onions have ever been bought from farmers.

Any long dry spell could cause moisture stress in the standing crop during the crucial maturing stage and also make it prone to pest and disease attacks.

A prolonged break in monsoon rains in most parts of the country is threatening to hit the yield of kharif crops. It could even delay the upcoming rabi sowing. Major agricultural states, such as Maharashtra, Madhya Pradesh, Andhra Pradesh, Punjab, and Gujarat, have witnessed a deficit of 30-80 per cent in southwest monsoon rainfall in August compared to the long-period average for the month. Meteorologists see no big revival in monsoon rains from hereon, though they forecast "some activity" over the Bay of Bengal on September 5-6.

Pulses are most vulnerable to pests and diseases if the monsoon remains patchy for the rest of the season.

The last few years have been uncharacteristically good for the Indian sugar sector for a variety of reasons. While on the one hand, the weather supported good crop production; on the other hand, the programme to blend ethanol with petrol took off in a big way. The long-pending problem of burgeoning sugarcane arrears almost came down to nil and exports boomed to record highs.

Barely days after imposing a 40 per cent export tax on onions to cool down soaring prices, which, in turn, triggered widespread protests across the main growing belts, the Centre on Tuesday sought to mitigate both political and economic tensions gripping parts of Maharashtra. It decided to procure an additional 200,000 tonnes of onions at Rs 2,410 per quintal for its buffer stock from farmers, a rate that is strikingly close to the price at which they were being exported before the 40 per cent duty was levied on August 19. The export price before the imposition of the duty stood at around $320 per tonne free on board (approximately Rs 2,650 per quintal).

India's leading commodity exchange, National Commodity and Derivatives Exchange (NCDEX), and private weather forecasting company Skymet took a significant step towards launching the country's first tradeable weather index on Monday (August 14) by entering into an agreement to deepen their understanding of the impact that weather has on agricultural commodities. The memorandum of understanding (MoU) between NCDEX and Skymet is a profound step in the direction of linking farmers with the weather in a scientific way, according to an official statement. Sources indicate that NCDEX and Skymet will conduct workshops and seminars across the country to educate farmers about how they can scientifically use weather forecasts to hedge risks.

The El Nino impact on the Indian monsoon typically manifests by way of extended break in rainfall.

India's decision to ban the export of non-basmati white rice has pushed up global prices, prompting multilateral lending agencies, such as the International Monetary Fund (IMF), to call for a reconsideration of the move. Though nothing has been spelled out yet officially, sources said, the government might consider requests for government-to-government sale of non-basmati white rice, especially to West African nations where India is a major supplier. Also, traders and exporters of specialty regional rice varieties like sona masuri or gobindo bhog feel that they have been short-changed.

The Rajya Sabha on Tuesday gave its green light to the Multi-State Cooperative Societies (Amendment) Bill 2023. This Bill introduces significant amendments to the Multi-State Cooperative Societies (MSCS) Act. These modifications aim to enhance the transparency and accountability of these cooperatives' operations in a bid to improve governance.

Rising prices of cereals and concerns over rice production in the 2023-2024 crop year due to insufficient rains followed by floods could be the possible causes.