Slow Monsoon Pace Raises Agricultural Concerns; Sluggish Cotton and Soybean Sowing Signals Pressure on Textile Sector

New Delhi. The weak progress of the Southwest Monsoon has begun to impact sowing operations for the Kharif season. With rainfall recorded at 43 percent below normal so far, the country’s key cash crops—cotton and soybean—appear to be lagging in the initial stages, sparking concern across both the agricultural and industrial sectors.

According to data from the Ministry of Agriculture up to June 19, cotton sowing has covered an area of ​​17.13 lakh hectares, compared to 22.82 lakh hectares during the same period last year; this represents a decline of 5.69 lakh hectares. Experts believe that if the pace of sowing does not pick up in the coming weeks, cotton production could be affected, potentially driving up the prices of cotton and yarn. This could have a direct impact on production costs within the textile industry.

The situation regarding oilseed crops is also unsatisfactory. A significant drop has been recorded in soybean sowing; the area under soybean cultivation has fallen from 2.50 lakh hectares during the same period last year to 1.30 lakh hectares this year. Consequently, the total area under oilseeds has decreased from 8.11 lakh hectares to 7.24 lakh hectares. Although marginal increases have been noted in the sowing of groundnut and sunflower, these gains have failed to offset the shortfall in soybean cultivation.

Paddy and Pearl Millet Emerge as Farmers’ Top Choices
In contrast to cotton and soybean, an increase has been observed in the sowing of paddy and coarse cereals. The area under paddy cultivation has risen by 4.26 lakh hectares to reach 12.36 lakh hectares. Meanwhile, the area dedicated to coarse cereals—including pearl millet (bajra)—has expanded from 2.14 lakh hectares to 4.05 lakh hectares. Farmers are increasingly attracted to these crops due to guaranteed government procurement and relatively low risk. On the other hand, global market uncertainty and the threat of pest infestations in cotton and soybeans are making farmers cautious.

Water management deficiencies increasing economic risk: Moody’s
Global rating agency Moody’s Ratings has expressed concern about India’s water management system in its latest report. According to the report, the country’s fragmented water management structure and excessive water subsidies are increasing financial and credit risks. The agency states that rules related to water allocation, pricing, and distribution have now become key factors determining the stability of any economy.

Moody’s has warned that if water management systems are not improved in time, the financial situation of states could become increasingly strained and their credit ratings could be affected.

80% of fresh water consumed in agriculture
According to the report, approximately 80% of fresh water in India is used in agriculture. Highly subsidized water rates are leading to uncontrolled exploitation, leading to rapid depletion of groundwater levels in many areas and increasing the risk of a worsening water crisis.

AI and data centers will increase water pressure
Moody’s also highlighted a new emerging risk. With the increasing use of cloud computing and artificial intelligence in the country, data centers are expanding rapidly. These centers require large amounts of water to keep them cool. The growing demand from data centers could put additional strain on already stressed water resources. According to the report, this could pose a major challenge for governments and utility companies in the coming years.