1. India expects better monsoon rains this year; ‘achhe din’ for farmers on way

India expects better monsoon rains this year; ‘achhe din’ for farmers on way

India expects higher rainfall from the monsoon this year after patchy rains affected farm output last season, weather...

By: | New Delhi | Updated: March 5, 2015 10:13 AM
Monsoon rains are vital because India's farm sector accounts for 14 percent of the  trillion economy, and half of the country's farmland lacks irrigation.  (Reuters) Monsoon rains are vital because farm sector accounting for 14 % of the trillion economy, and half of the country’s farmland lacks irrigation. (Reuters)

India expects higher rainfall from the monsoon this year after patchy rains affected farm output last season, weather office sources told Reuters.

If the outlook turns out correct, ‘acche din’ will not be far from farmers and it will be another shot in the arm for Prime Minister Narendra Modi’s efforts to revive the economy after the Reserve Bank of India (RBI) unexpectedly cut its policy rate for the second time this year on Wednesday.

Monsoon rains are vital because India’s farm sector accounts for 14 percent of the $2 trillion economy, and half of the country’s farmland lacks irrigation. Weak monsoon rains have cut farm output in the past, stoking inflation.

Good rains this year could cause the RBI to continue to take the axe to rates.

“If the inflation remains under control and we get a good monsoon, then we will definitely see more rate cuts,” said Issac George, Chief Financial Officer of GVK Power & Infrastructure Ltd in Andhra Pradesh state.

“The budget last week has provided a framework for growth and the rate cuts will help efforts in that direction.”

The monsoon prediction is based on the fact that the El Nino weather pattern, which is marked by the warming of sea surface temperature on the Pacific Ocean, is in a “neutral” phase, said the sources at the India Meteorological Department (IMD).

El Nino can lead to drought in Southeast Asia and Australia and heavy rains in South America, hitting production of food such as rice, wheat and sugar. The Australian weather bureau on Tuesday forecast that the chance of an El Nino developing this year had risen to about 50 percent.

The IMD has already shared its current outlook with the government and is expected to come out with another assessment of El Nino in April, the sources said, declining to be named as they are not authorised to talk to media.

India’s monsoon was hit by an El Nino in 2009 when the four-month long season turned out to be the driest in nearly four decades.

Calculate your income tax post budget 2018 through this Income Tax Calculator, get latest news on Budget 2018 and Auto Expo 2018. Like us on Facebook and follow us on Twitter.

  1. G
    Gopinathan Krishnan
    Mar 10, 2015 at 7:54 pm
    “Monsoon rains are vital because India’s farm sector accounts for 14 percent of the $2 trillion economy, and half of the country’s farmland lacks irrigation. Weak monsoon rains have cut farm output in the past, stoking inflation.” Farm workers are among the lowest paid in India. More than 50% potion makes 14% Economy is an anomaly. The “Good Days” for farmers are only a dream as the current Global weather conditions does not show signs for a better rains in Asia. Gopinathan Krishnan is a retired NIO (CSIR) Scientist.
    Reply
    1. Mohan Mohan
      Mar 5, 2015 at 1:40 pm
      But, untimely rains are ominous.
      Reply

      Go to Top