Regional Rainfall Deficits Threaten Agriculture Despite Improved Monsoon Performance

The agriculture sector remains at risk due to regional disparities in rainfall despite an overall improvement in monsoon coverage compared to last year. Global edible oil prices recently exited a deflationary period and the impact of this on the domestic consumption basket remains a key concern. Though monsoon has been above normal at the national level, significant regional variations persist.

The shortfall will negatively impact overall agricultural productivity and output as approximately 97 per cent of kharif sowing has already been completed, leaving limited scope for recovery. The revised outlook reduces the likelihood of increased rainfall in the final weeks of the monsoon season, particularly in key agrarian regions where the rainfall has been deficient.

Presentation- Dibyabharati Nayak