Less rain than normal in 41% of the country, this may increase inflation | Less rain than normal in 41% of the country’s area, this may increase inflation

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  • Less Rain Than Normal In 41% Of The Country, This May Increase Inflation

New Delhi9 hours ago

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Weak monsoon rains are expected to slow down the pace of economic reforms in India. In a country with more than half the population dependent on rain-fed agriculture, food prices are worrying to rise further. Retail inflation in India is already running above the RBI’s upper limit of 6%.

Sowing affected due to delay in rain
Usually, starting from Kerala on June 1 and reaching other parts of the country, the monsoon has been calm for the last three weeks after initially above average rainfall. Below average rainfall has been recorded in 41% of India’s area. Due to this delay, sowing of crops like rice, cotton and soybean has been affected.

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The absence of monsoon is expected to reduce farm income and rural demand in the coming times. The manufacturing and service sectors in the country are already going through a period of misery due to corona virus, in such a situation, the problems may increase due to the plight of the agriculture sector, which contributes 18% to the country’s economy.

July-August monsoon most important
Rahul Bajoria, economist at Barclay plc, says that the July-August monsoon is the most important for the sowing and production of crops in the country. Uneven rainfall and poor sowing may affect production. There is a risk of rising inflation. RBI is going to review interest rates next month.

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