While the overall rainfall is 9% above normal, the eastern and northeastern parts of the country are deficient by 16%, which would impact rice cultivation as this region produces over one-third of the country’s total production.
As of mid-July, kharif sowing for rice across the country is down 13% year-on-year. Also, the entire jute and mesta cultivation is concentrated in the East and North East.
However, even if production of food grains falls, it may not impact retail food inflation much as rainfall doesn’t seem to be influencing inflation too much.