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IMD Forecasts Below‑Normal July Monsoon Amid El Niño – Risks to Kharif Crops, Inflation and GDP

The India Meteorological Department forecasts July rainfall below 94% of normal amid a strong El Niño, threatening Kharif crops, raising food‑price inflation, and potentially trimming GDP growth. UPSC aspirants should note the agricultural‑economic link, policy responses like the Nutrient‑Based Subsidy, and the broader fiscal and monetary implications.
The India Meteorological Department (IMD) has warned that July rainfall will be below normal, falling short of 94% of the long‑term average. The forecast follows a 40% deficit in the first month of the monsoon and weak June rains (99.5 mm vs. 165.3 mm average). Union Agriculture Minister Shivraj Singh Chouhan linked the shortfall to a potential ‘super’ El Niño event, raising concerns for the upcoming Kharif crops season. Key Developments July rainfall projected at below 94% of normal, extending June’s 39.8% deficit. Minister Chouhan warned of a ‘super’ El Niño impact on rain‑fed agriculture. RBI cautioned that an adverse monsoon could hurt growth‑inflation outlook. Potential rise in food‑price inflation; CPI at 3.9% in May 2026, up from 3.5% in April. Government approved a ₹41,533 crore Nutrient‑Based Subsidy (NBS) for kharif fertilizers. Important Facts India’s food‑grain output in FY 2024‑25 reached 357.73 million metric tonnes (MMT) , a 25.43 MMT rise from the previous year. However, a weak monsoon threatens this gain. GVA from agriculture could contract, reducing rural incomes by up to 10% . Lower farm earnings depress demand for non‑farm services such as construction, affecting overall GDP growth. Analysts estimate a possible loss of 20–65 basis points in GDP growth if El Niño a
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Key Insight

Weak July monsoon threatens crops, inflation and growth – a key UPSC focus.

Key Facts

  1. जुलाई की वर्षा दीर्घकालिक औसत से 94% से कम होने का अनुमान, जिससे जून की 39.8% कमी बढ़ती है।
  2. IMD का पूर्वानुमान मानसून के पहले महीने में 40% की कमी के बाद आया है।
  3. RBI ने चेतावनी दी कि कमजोर मानसून वृद्धि‑महंगाई दृष्टिकोण को नुकसान पहुँचा सकता है।
  4. भोजन‑कीमत महंगाई मई 2026 में 3.9% तक बढ़ी (अप्रैल में 3.5% से)।
  5. सरकार ने Kharif उर्वरकों के लिए ₹41,533 crore Nutrient‑Based Subsidy को मंजूरी दी।
  6. FY 2024‑25 में खाद्य‑अनाज उत्पादन 357.73 MMT तक पहुँचा, लेकिन कमजोर मानसून इस बढ़ोतरी को उलट सकता है।
  7. विश्लेषकों का अनुमान है कि यदि El Niño‑प्रेरित सूखा बना रहता है तो GDP वृद्धि में 20–65 बेसिस पॉइंट की संभावित कमी हो सकती है।

Background

India’s economy depends heavily on monsoon rains for Kharif agriculture, which supplies most food grains and supports rural incomes. An El Niño event weakens the monsoon, raising food‑price inflation, straining the RBI’s price‑stability mandate, and threatening overall GDP growth, making it a cross‑cutting issue for environment, agriculture and macro‑economics in the UPSC syllabus.

UPSC Syllabus

  • Essay — Economy, Development and Inequality
  • GS3 — Major crops, cropping patterns, irrigation and agricultural produce
  • GS3 — Disaster and disaster management
  • GS3 — Farm subsidies, MSP, PDS, food security and technology missions
  • GS1 — Distribution of Key Natural Resources
  • GS3 — Indian Economy - Planning, mobilization of resources, growth, development and employment
  • Prelims_GS — Demographics and Social Sector
  • GS1 — Poverty and Developmental Issues
  • GS3 — Government Budgeting
  • Essay — International Relations and Geopolitics

Mains Angle

In GS‑3 (Economy & Agriculture), discuss how an El Niño‑induced weak monsoon can affect agricultural output, rural incomes, inflation and GDP, and evaluate the effectiveness of policy measures like the Nutrient‑Based Subsidy and crop‑insurance reforms.

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Overview

Full Article

The India Meteorological Department (IMD) has warned that July rainfall will be below normal, falling short of 94% of the long‑term average. The forecast follows a 40% deficit in the first month of the monsoon and weak June rains (99.5 mm vs. 165.3 mm average). Union Agriculture Minister Shivraj Singh Chouhan linked the shortfall to a potential ‘super’ El Niño event, raising concerns for the upcoming Kharif crops season.

Key Developments

  • July rainfall projected at below 94% of normal, extending June’s 39.8% deficit.
  • Minister Chouhan warned of a ‘super’ El Niño impact on rain‑fed agriculture.
  • RBI cautioned that an adverse monsoon could hurt growth‑inflation outlook.
  • Potential rise in food‑price inflation; CPI at 3.9% in May 2026, up from 3.5% in April.
  • Government approved a ₹41,533 crore Nutrient‑Based Subsidy (NBS) for kharif fertilizers.

Important Facts

India’s food‑grain output in FY 2024‑25 reached 357.73 million metric tonnes (MMT), a 25.43 MMT rise from the previous year. However, a weak monsoon threatens this gain. GVA from agriculture could contract, reducing rural incomes by up to 10%. Lower farm earnings depress demand for non‑farm services such as construction, affecting overall GDP growth. Analysts estimate a possible loss of 20–65 basis points in GDP growth if El Niño a

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Weak July monsoon threatens crops, inflation and growth – a key UPSC focus.

Key Facts

  1. जुलाई की वर्षा दीर्घकालिक औसत से 94% से कम होने का अनुमान, जिससे जून की 39.8% कमी बढ़ती है।
  2. IMD का पूर्वानुमान मानसून के पहले महीने में 40% की कमी के बाद आया है।
  3. RBI ने चेतावनी दी कि कमजोर मानसून वृद्धि‑महंगाई दृष्टिकोण को नुकसान पहुँचा सकता है।
  4. भोजन‑कीमत महंगाई मई 2026 में 3.9% तक बढ़ी (अप्रैल में 3.5% से)।
  5. सरकार ने Kharif उर्वरकों के लिए ₹41,533 crore Nutrient‑Based Subsidy को मंजूरी दी।
  6. FY 2024‑25 में खाद्य‑अनाज उत्पादन 357.73 MMT तक पहुँचा, लेकिन कमजोर मानसून इस बढ़ोतरी को उलट सकता है।
  7. विश्लेषकों का अनुमान है कि यदि El Niño‑प्रेरित सूखा बना रहता है तो GDP वृद्धि में 20–65 बेसिस पॉइंट की संभावित कमी हो सकती है।

Background & Context

India’s economy depends heavily on monsoon rains for Kharif agriculture, which supplies most food grains and supports rural incomes. An El Niño event weakens the monsoon, raising food‑price inflation, straining the RBI’s price‑stability mandate, and threatening overall GDP growth, making it a cross‑cutting issue for environment, agriculture and macro‑economics in the UPSC syllabus.

UPSC Syllabus Connections

Essay•Economy, Development and InequalityGS3•Major crops, cropping patterns, irrigation and agricultural produceGS3•Disaster and disaster managementGS3•Farm subsidies, MSP, PDS, food security and technology missionsGS1•Distribution of Key Natural ResourcesGS3•Indian Economy - Planning, mobilization of resources, growth, development and employmentPrelims_GS•Demographics and Social SectorGS1•Poverty and Developmental IssuesGS3•Government BudgetingEssay•International Relations and Geopolitics

Mains Answer Angle

In GS‑3 (Economy & Agriculture), discuss how an El Niño‑induced weak monsoon can affect agricultural output, rural incomes, inflation and GDP, and evaluate the effectiveness of policy measures like the Nutrient‑Based Subsidy and crop‑insurance reforms.

Analysis

Related PYQs

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Practice Questions

GS3
Medium
Prelims MCQ

El Niño impact on monsoon and macro‑economy

1 marks
5 keywords
GS3
Medium
Mains Short Answer

Agricultural GVA and overall GDP

10 marks
5 keywords
GS3
Hard
Mains Essay

Policy measures for agricultural risk management

25 marks
6 keywords
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