A sluggish demand due to weak rains and drought-like conditions may soften global prices of fertilisers such as di-ammonium phosphate & potash.
China has 4-5 times of India's storage capacity for water while Russia has storage capacity to meet any exigency.
The government is gearing up to tighten noose around direct selling and multilevel marketing companies operating in the country.
The maximum damage is likely to be on coarse grains as areas growing bajra, sorghum, maize and ragi are witnessing heavy rainfall deficit.
Monsoon is likely to bring showers to the rice, oilseeds, pulses and coarse cereal growing states by the middle of next week.
The weak monsoon may hurt crop output more than expected as rainfall has been much lower than the national average in the breadbasket states.
The government signalled strong preparedness for any eventuality and scaled up its estimate of food production in 2011-12 to a record 257.44 million tonne, or 5 million tonne more than what was estimated in April.
Indian sugar exporters are going slow on shipment in anticipation of better global prices ahead of Ramzan and concerns over a delay in Brazilian cane harvest.
The ministry of external affairs (MEA) is exploring opportunities for exporting 10 million tonne wheat on bilateral basis.
Even though the share of agriculture in the country’s GDP is declining, a year of poor rainfall means acute hardship for farmers which, in turn, has a negative impact on the economy.
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