Farm sentiment remained buoyant, driven by a healthy monsoon and further optimism of a good Kharif crop despite the COVID-19 pandemic, ratings agency ICRA said in a report.
Rural household incomes stayed resilient, supported by healthy farm cash flows across regions and aided by high levels of Rabi procurement under various government schemes after a bumper Rabi harvest, it added.
Besides, increased government support, via the likes of MNREGA and PM-KISAN, had helped create employment and easing liquidity pressure on rural incomes, brought about by large-scale reverse migration to rural areas during lockdown, the agency said.
Shamsher Dewan, VP, ICRA, said though there were fears of disruption in the Rabi procurement process, the same was “mitigated by prompt lifting of restrictions by the Centre for agricultural activities”.