With the steady momentum in monsoon rains over the last seven days, India’s rainfall deficit reduced by 11 percentage points to 25% from 36% a week ago. The revival in monsoon rains has accelerated the planting of rice, oilseeds, pulses, cotton and coarse grains.
Over the last seven days, 40% of the country has received normal rainfall up from 20% a week ago because of the heavy rain in most regions except northern and northwestern parts. However, monsoon rainfall needs to remain strong for at least another month to minimise rural distress created by six weeks of largely dry weather across the country. The southwest monsoon covered the entire country two days after its normal date July 15.Indian Meteorological Department (IMD) has forecasted heavy rainfall in many parts of country, particularly central and western India in the next three days.
The Central Water Commission has stated that water reservoir position in the country has improved over the previous week amid heavy rainfall in northern and central India regions. In previous week, the situation in water reservoirs was worrisome as they were filled up to only 26% capacity, down sharply from 42% last year, and the 10-year average of 30%. In India, water reservoirs normally fill up rapidly in July and create a water reserve for irrigation, drinking and power generation until the following year's monsoon.
Poor monsoon can impact Indian economic growth as the agriculture sector, which comprises around 15% of the GDP, is mainly depended upon the monsoon rains. Around 55% arable land in the country depends entirely on rain for irrigation. Timely and normal monsoon is essential for rabi season (winter crops) and it also raises the water table and moisture content in the soil. 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.
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