The Economic Times

In response to rising production costs, the government is launching a sub-committee to assess fixed-cost payments for urea producers. This initiative may lead to changes in the payment framework, directly impacting government subsidy allocations. The current fixed-cost formula has been stagnant since the financial year 2002-03, prompting industry advocates to request that heightened costs be factored into forthcoming reviews.

The government has implemented a strategy to use e-way bill data to monitor subsidised fertiliser movement. Concerns over fertiliser supply due to the Iran war have prompted the Finance Ministry's analysis of trucking routes. Reports of route deviations and illegal unloading emphasize the significance of tracking fertiliser distribution. Increased enforcement has resulted in thousands of raids and notices against violators across India.

Farmers' organizations in Maharashtra and Karnataka are resisting the government's early sugarcane crushing proposal. They demand compensation for low recovery and higher prices for sugar and ethanol. A meeting with Union Food Minister Pralhad Joshi has been scheduled to discuss these concerns. Crushing immature sugarcane may lead to substantial financial losses for both farmers and sugar mills.

The Bharat International Rice Conference 2026 will focus on improving profitability in Indias rice-milling industry, which processes a crop with an indicative wholesale value of about 6 lakh crore annually.

Farmers in Latur district are facing a severe fodder crisis due to a lack of rainfall. Many are forced to harvest sugarcane crops to feed their livestock amidst deteriorating conditions. As a result, milk production has significantly decreased, impacting farmers' incomes. The Maharashtra government has declared a drought in majority of its talukas and announced relief measures. Local farmers are appealing for official fodder camps to be established urgently.

Union Finance Minister Nirmala Sitharaman stated that the Centre absorbs a significant urea subsidy for farmers. This subsidy currently stands at approximately Rs 2,700 for each bag of urea. Sitharaman emphasised the government's commitment to providing essential farm inputs despite rising global prices. Additionally, her remarks highlighted ongoing efforts to support agricultural investment in Andhra Pradesh. These initiatives aim to ensure that farmers receive necessary resources and maintain

In 2026, the Southwest monsoon recorded rainfall at 87 percent of the long-period average, the lowest since 2015. ICRA has lowered its agriculture growth forecast for FY27 to approximately 1 percent from 1.3 percent due to inadequate rains. Kharif sowing has decreased by 1.2 percent compared to last year, with rice and cotton crops showing notable reductions. Reservoir storage levels have significantly declined, raising concerns for the upcoming rabi season.

Ladakh has launched a pilot to grow high-value saffron on restored barren land in Leh, planting about 90,000 Iranian saffron corms across 4,000 square metres at Spituk Pharka. If successful, the project could diversify cold-desert agriculture and create a new income source for local farmers, youth and self-help groups.

Asian Games 2026 Medal Tally: India climbed to seventh place in the Asian Games 2026 medal tally after winning its 11th gold medal on Friday. The Indian womens recurve archery team made history by defeating South Korea in the final to secure a maiden gold in the event. Indias tally now stands at 67 medals, including 11 gold, 23 silver and 33 bronze.

India's rice production is expected to decrease, while global demand is projected to rise significantly. The country possesses sufficient surplus stocks to address international market needs. Other major rice-producing nations are under pressure, which presents opportunities for Indian exporters. Challenges such as rising fuel and fertilizer costs continue to impact the global rice market. This situation could enhance India's status as a key player in the international rice trade.

At present, imports of chana attract a 10% duty, while yellow peas are subject to a 30% duty. Tur and urad imports are allowed duty-free until March 31, 2027. The proposed reduction in duties on chana and yellow peas would be to improve domestic availability and contain prices. Prices of chana, moong, matar and tur have risen by up to 10% over the past month, with a 3-5% spike in the past week, as concerns over crop prospects combine with higher festive demand.

Argentine Ambassador Mariano Caucino highlighted the growing economic relationship between Argentina and India during a summit in Mumbai. Agriculture, particularly edible oils, serves as a core area of cooperation between the two countries. Argentina is experiencing record supplies of edible oils, significantly contributing to India's food security. In 2025, exports of soybean oil and sunflower products to India are expected to increase substantially.

Introducing the conference, Manju Dixit, All India Women Convener of BKS, called for a change in the traditional perception of women farmers.

El Nino conditions have strengthened further, raising concerns over India's monsoon rainfall, even as a positive Indian Ocean Dipole (IOD) may partly offset its impact, according to an ICICI Bank report.

The impact is showing in commodity markets: prices of several pulses are up amid crop concerns and festive demand. Maharashtra has declared drought across large parts, and Karnataka is facing similar conditions.

Of the overall target, 177.72 mt is expected to come from the rabi season, agriculture minister Shivraj Singh Chouhan, said at the National Agriculture Conference-Rabi Campaign 2026 Tuesday.

India has announced a reduced foodgrain production target of 373.93 million tonnes for the 2026-27 crop year. The decision comes amidst concerns over El Nio weather patterns impacting agricultural conditions across the country. Sowing operations for kharif crops have been completed, while rabi crop planting will start in October.

Thousands of women farmer workers from all states across the country will participate.

Agriculture Minister Shivraj Singh Chouhan has asked states to prepare rabi crop plans based on water availability and soil moisture, with water-stressed areas prioritising less water-intensive crops. He also called for higher cultivation of pulses and oilseeds to reduce Indias import dependence, while flagging drought conditions in Maharashtra and Karnataka.

Prices of key pulses including chana, moong, tur and matar have risen sharply over the past month, with wholesale rates increasing up to 11%, according to IPGA data. Industry executives attributed the surge to growing concerns over crop deficits, moisture stress, lower Australian supplies and stronger festive demand.

The rabi season in India is expected to encounter difficulties due to the El Nino weather pattern. Agriculture Secretary Atish Chandra highlighted the challenges faced during the kharif season in rainfed regions. Crop diversification is needed for self-sufficiency despite research and income hurdles. Infrastructure modernization is crucial to prevent farm losses and ensure market access. A robust digital agriculture system is essential for accurate data utilization in crop production planning.

Karnataka Deputy Chief Minister G Parameshwara announced immediate relief for drought-hit farmers, offering Rs 2,500 each. This initial aid aims to support 45-50 lakh farmers and will cost the state Rs 1,250 crore. Further assistance will depend on the Union government's response and assessments of the drought situation. While total drought losses in Karnataka are expected to exceed Rs 40,000 crore, additional relief measures will follow.

The first phase, from roughly 1967 to 1995, was dominated by the need to achieve food security, says the paper.

The world's second-largest sugar producer had remained structurally surplus for nearly a decade but was forced to import sugar in the 2025-26 season after lower output pushed domestic prices to record highs. Prolonged rainfall shortages in Maharashtra and Karnataka, coupled with the state prioritising reservoir water for drinking over irrigation, are expected to reduce sugar content in cane due for crushing from October, executives said.

Balrampur Chini Mills Ltd (BCML) has received 75 crore in grant assistance from the government to set up a pilot-scale research and development facility for polylactic acid (PLA) co-polymers. The facility will focus on developing specialised PLA grades and co-polymers for higher-value applications and generating the process know-how needed to move products from laboratory research to commercial-scale manufacturing. The site will be India's first integrated commercial PLA manufacturing facility,

Landed sulphur prices in India have doubled since January to around $1,050-1,100 a tonne, according to industry estimates.

Nabin Kumar Roy, Chief General Manager, NABARD, emphasised that enhancing farmers access to Kisan Credit Cards remains a priority and called for coordinated efforts among government departments, banks, cooperatives and development institutions.

Due to erratic monsoon patterns, farmers in India are cutting back on their investments in pesticides, fertilizers, and seeds. The irregular rainfall is posing serious challenges to crop yields this year, compelling them to be cautious about their expenses. Agrochemical market players are witnessing a decline in demand for crop protection products, leading experts to advocate for consolidation in the congested farm input market to better manage these uncertainties.

The industry bodies said the correction reflected market dynamics as well as continued government efforts.

State agriculture minister Dattatray Bharane has confirmed a large contraction in the production of cotton and soybean, while the agriculture department has initiated an early crop assessment to calculate compensation as farmers are removing wilted crops from fields.

Rates staying high despite the release of buffer stocks shows the challenge of bringing prices down across markets, particularly when retail rates differ substantially between locations and sellers, trade anaylists say.

Assam's updated tea incentive scheme introduces exciting export benefits designed to enhance the quality of CTC tea. The initiative promises a Rs 3 per kg bonus for single-origin Assam tea exports and significantly boosts subsidies for Orthodox and Specialty tea production. Additionally, improved working capital assistance is provided, with Matcha tea now part of the program, aiming to fortify Assam's tea exports and the Guwahati auction platform.

Chouhan said states would have to deliver on commitments made during the conference, including deadlines for Farmer ID generation and other components of AgriStack.

Key pulse and oilseed prices have risen sharply compared to last year. Scanty rains are affecting the current kharif crop and raising rabi season output concerns. Tur and chana prices have increased significantly, while soyabean and groundnut have seen larger jumps. Forecasts of El Nino are also impacting chana prices for the upcoming rabi season. Despite output worries, industry veterans state the supply situation remains stable.

El Nio effect: El Nio has left more than 50% of India grappling with drought conditions, severely affecting kharif crops currently in the fields. Maharashtra has been particularly hard hit, with extreme drought affecting a large part of its agricultural areas. Other key agricultural states are also experiencing varying levels of drought, raising concerns about crop yields and soil moisture levels as winter sowing approaches.

The United States has sought details from India on the use of rice for ethanol production. Washington has alleged that Indias rice stocks exceed food security requirements, affecting global trade. Indias price support policies have also been cited as contributing to higher domestic rice supplies. The World Trade Organization is expected to discuss these concerns later this month. Indias allocation of rice for ethanol production has reportedly increased significantly.

Average sugar prices stayed below Rs 60 per kg for four days. Government measures and imports helped ease prices after recent increases. Festive demand caused some regional price hikes, particularly in southern states. Major sugar-producing states like Maharashtra saw prices decline. The government maintains adequate stocks despite a lowered production estimate.

Rice is getting costlier in India as the US-Iran war drives countries to secure food supplies and boosts overseas demand. Basmati prices have risen 15-20% and non-basmati varieties 20-25%, with traders expecting little relief until the new crop arrives in October-November.

Raw sugar futures have reached their highest level since March 2025. Strong Indian import demand and Brazilian supply disruptions are driving these gains. India has opened a tax-free import quota to meet domestic needs. The government warns mills against unjustified price increases during festivals. El Nio and oil prices also influence the global sugar market.

Agriculture sector NPAs have significantly decreased to single digits, according to Nabard Chairman Shaji Krishnan V. Boosting crop productivity and enhancing credit facilities will drive further improvements, he said.

Indian sugar mills are asked to ensure adequate supplies for the upcoming festival season. Domestic mills are seeking to import nearly 800,000 tons of duty-free raw sugar. The government directed mills to sell sugar at reasonable prices. Officials will continue monitoring prices and take corrective measures. This aims to keep sugar rates stable for consumers.

The upcoming PM KUSUM phase will feature a dedicated agrivoltaics component for farmers. This initiative will allow farmers to earn income from generated electricity. The focus will be on small farmers, cooperatives, and panchayats. Agrivoltaics combines farming and solar power generation on the same land. More research is needed to optimize crop and solar configurations.

Renewed weakening of rainfall in August and expectations of a deficient September could pose risks to Indias upcoming rabi season, Crisil said. It flagged cotton, bajra, maize, tur, groundnut and soybean as particularly vulnerable. Rainfall deficiency has widened to 14%, while September rainfall is forecast below normal.

Demand for jobs under the new rural employment scheme increased in August. Work sought by households rose significantly from the previous month. Millions of people sought employment opportunities across various Indian states. The new law provides more guaranteed employment days annually. It also sets a minimum daily wage for all workers.

Rising sugar prices are pushing packaged food companies towards another round of price hikes or smaller pack sizes. Bikaji Foods is rolling out a 2% price increase across its sweets portfolio, while analysts at Anand Rathi expect 2-5% hikes or shrinkflation in packaged foods as sugar, tea and coffee prices rise.

As officials and ministers from India and the 11 ASEAN member states gather in New Delhi for a two-day meeting, the substance of this partnership lies less in the communiqu than in the research, training and field-level programmes it has steadily built since 1992

India is considering liberalizing foreign direct investment norms for plantations. More commercial crops like bananas could be included under this policy. The government aims to boost exports of bananas significantly in coming years. This move seeks to enhance India's global market share in banana production. Stakeholder consultations are currently underway for this proposed policy change.

The Punjab Cabinet approved key policies for paddy procurement and movement in 2026-27. Amendments to Punjab Public Service Commission regulations were also sanctioned by the council. Thirty-three hospital posts were revived, and 138 new healthcare positions were created. Eighty vacant Medical Officer (Dental) posts will be filled by the department. These decisions aim to enhance public services and farmer support across the state.

Severe drought conditions in Nilgiris have drastically reduced green tea leaf supply. Tea factories are experiencing significant revenue losses and production declines. Small farmers face immense hardship due to crop failure and inadequate prices. Rainfall deficits have caused a substantial drop in tea productivity across the region. Government assistance is urgently needed for affected tea growers and workers.

Leaving farmers 'Bhagwan Bharose': The cost of MSP to ethanol gaps