Monsoon rains have improved significantly after scaring the Indian economy of a worst drought in 80 years. There was above-average rainfall last week for the first time since it took-off in late May. The development will help the kharif crop that is under sowing and include crops like rice, sugarcane cotton and oil seeds, etc.
According to the Indian Meteorological Department (IMD), rainfall during the week ended July 15 was 6% more than the long-term average (LTA). The shortfall for the season starting June 1 narrowed to 27% of the LTA as on July 15 compared with 45% last month.
The IMD also forecasts ample rainfall in the next five days in most parts of India, except parts of northwest region of the country. The development is crucial not just for the agriculture sector but for the economy as a whole too. Nearly 60% of the farm land depends on the annual rains and failure of monsoon could have been a disaster for the farm sector.
Further, though agriculture directly contributes only about 17% of India’s GDP, it has been the rural consumption that has helped the economy recover faster than expected. As such, failure of farm sector could have taken the wind out of India’s rapid recovery than most of the developed world.
However, monsoon rainfall is still not equally spread across the country. Northwest India, including the key grain producing regions like Punjab and Haryana and the Western UP continue to suffer from poor rains. However, this region has better irrigation arrangements than most of the country.