Monsoon Weakens; Concern Over Agricultural Output

After an encouraging start, the southwest monsoon has slowed considerably. Rainfall during the first ten days of June has been reported at nearly 26% below normal, and weather experts expect below-average precipitation across many regions over the next two weeks.

The development is being closely watched because the Indian economy remains heavily dependent on monsoon rains. Delayed rainfall could affect the sowing of rice, cotton, soybean and pulses, potentially influencing food prices and rural incomes. However, meteorologists expect conditions to improve in early July, which could limit the impact on crop production.