Good monsoon may not be good for the farmer

A good monsoon will bring some cheer to consumers, companies and the equity market. But bullish headlines will conceal the downside: this could be a dismal season for profitable farming. A farmer has one objective: maximise returns from his piece of land. As the cost of inputs, labour, machinery and fuel rises, he needs more cash to cultivate and market his harvest. As the cost of living rises, he needs more cash to meet household expenses. High commodity prices bridge this gap and leave alittle extra in the bank.

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