Weak monsoon in India raises concern over crops, economy
New Delhi : Monsoon in India has remained below average for the fourth consecutive week, with rainfall scanty over central and western parts of the country in the week ended on Wednesday, raising concerns about major crop production and the impact on the economy.
With rains being one of the crucial factors between India's farm output and economic growth; about 55% of India's arable land is rain-fed, and agriculture makes up about 15% of a $2.5 trillion economy that is Asia's third-biggest.
And the economy, which grew at its slowest in more than four years over the January-March quarter, isn't in any condition to take a big hit from a poor monsoon.
According to a report, if rains does not increase in coming two three weeks then India might be facing a crisis that hammers crop harvests and rural demand.
"Sowing has already been delayed by three weeks. If the monsoon doesn't revive in two, three weeks, then the entire season could be wiped out," said Harish Galipelli, head of commodities and currencies at Inditrade Derivatives & Commodities in Mumbai.
As per data released by the India Meteorological Department (IMD) this year's rainfall is 24% less than the 50-year average of the week ended on June 26.
The monsoon has so far delivered 36% less rainfall than normal since the start of the season on June 1 due to a delay in the onset of the seasonal rains.