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Severe Heat & Declining Crop Prices to Hinder Rural Recovery

Crops that are currently under cultivation could be impacted, as there could be lower yields if temperatures rise further

Ayushi Sikarwar
rural recovery
Rural Economy (Representational Image)

The rural demand, which has lately shown signs of revival, could be put under pressure once more as prices of important crops drop and unseasonably high temperatures raise the possibility of crop damage.

Farmers anticipate lower returns this rabi season compared to last year due to lower harvests brought on by unfavorable weather conditions as well as the potential drop in prices of some commodities like wheat and mustard. Prices for potatoes and onions have already fallen as a result of greater production.

Companies, on the other hand, think that they are optimistic that climate-related rural hazards will be transient. Rural markets, which account for more than 35 percent of yearly FMCG sales, are essential to the sector's overall health. The cost of staples, packaged food, fuel, and packaging increased dramatically over the past five to six quarters, placing strain on family incomes and slowing demand from the hinterland.

Crops that are currently under cultivation could be impacted, as there could be lower yields if temperatures rise further. This may lead to farmers' income coming under stress, which could again negatively impact rural demand.

Additionally, because wheat is grown in various states across the nation, it will experience a range of temperatures that the industry is carefully monitoring.

Rising Heat Across India

Electricity demand has recently reached almost record levels in various areas of the country due to high temperatures, raising concerns about yet another summertime power shortage.

The India Meteorological Department advised farmers to check wheat and other crops for indications of heat stress because temperatures have been up to 11C above normal in some areas over the past week.

When heavy industry roared back from pandemic curbs and the population struggled with sweltering conditions that saw a 122-year-old heat record broken, the peak demand for electricity hit 211 gigawatts in January, coming very close to an all-time high last summer.

The nation's energy network has already experienced two years of disruptions, so the unusually early arrival of hotter weather and predictions that power usage will increase as irrigation pumps and air conditioners are turned up are raising concerns.

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