India?s southwest monsoon dipped to 64% below normal during the week ending August 5, its second straight fall, widening the overall season?s deficit to 27% below normal as against 19% recorded during the previous week. Last week?s rainfall was the worst since mid-June, while total rainfall since the start of season on June 1 was a quarter below average, the India Meteorological Department said on Thursday.
Low rainfall also affected the stock markets with the Sensex dropping by 2.45% to close at 15,514.03. This was despite whole sale price based inflation sticking to a negative 1.58% as per another data released on Thursday. Weak monsoon could crimp recovery in the economy trying to come back to a 8% rate of growth for 2009-10.
However, sowing of other key kharif crops, like oilseeds, pulses and cotton improved because of late revival of rains in main growing areas.
Cotton had been sown in around 89.9 lakh hectare till July 30, almost 12 lakh hectares more than last year.
Sugarcane has been planted in around 42.50 lakh hectare till July 31, around 1.29 lakh hectare less than last year.
Oilseeds have been sown in around 141.79 lakh hectares till now, down almost 2.87 lakh hectares as compared to last with the fall largely being in groundnut.
