The revival in monsoon rains over the last five-six days has reduced the rainfall deficit by 8 percentage points to 35% and accelerated planting of crops which was at half of last year's level. Rainfall is expected to continue for the next 10 days which would help farmers plant more rice, oilseeds, pulses, cotton and coarse grains. However, the late sowing may mean lower returns, particularly if rainfall is uneven in the weeks ahead. The southwest monsoon covered the entire country two days after its normal date July 15.
In current year, monsoon had been very weak till the first half of July and rain deficit had grown to 43%. However, with good rains forecast for the rest of July, the Indian Meteorological Department (IMD) expects the deficit to progressively narrow in the coming days.
Monsoon rain is crucial for India as 55% of the arable land depends entirely on rain for irrigation. Timely and normal monsoon is also vital for rabi season (winter crops) also as it raises the water table and moisture content in the soil. Though, agriculture sector accounts for only about 15% of the economy, monsoon has a wider impact because it affects millions of people in villages who depend upon agriculture. Further, a poor monsoon can impact India’s exports, stoke inflation particularly food inflation and lead to lower demand for products ranging from cars to consumer goods. In 2009, India had faced worst drought in nearly four decades that forced the country to import large amount of food commodities.