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