Delayed Monsoon Arrival: Monsoon has been playing an important role in Indian rural economy and agriculture. If the monsoon is good then the yield of the crop remains bumper, whereas due to the failure of the monsoon, the agriculture sector gets badly affected, whose negative impact is ultimately seen on the economy and on the market.
This is the forecast of the Meteorological Department
Talking about this season, the south-west monsoon, important for agriculture, has been delayed. According to the forecast of the Meteorological Department, there may still be a delay of up to a week in the arrival of monsoon in North India. However, the India Meteorological Department estimates that monsoon rains may be normal this year, which is a matter of relief.
Monsoon important for irrigation
The Meteorological Department had issued a forecast for the four-month monsoon season in early June. According to the Meteorological Department, in this season from June to September, the long-term average of monsoon can be 96 to 104 percent, which is a sign of normal monsoon. Monsoon rains are very important for the Indian economy, as irrigation of more than half of the country’s arable land depends on it. In this way, the monsoon has a direct relation with the inflation of food items.
Reserve Bank is afraid of this
As of now, the monsoon has been delayed, due to which the sowing of Kharif crops has started getting delayed. If the monsoon rains do not get better than expected, then the yield of Kharif crops may remain low. Due to this, the prices of food items can increase in the coming days. In such a situation, on the front of inflation, which is getting continuous relief for a few months, this benefit will be in danger of disappearing. The Reserve Bank has also expressed apprehension about this danger. Reserve Bank Governor Shaktikanta Das had said after the MPC meeting held this month that El Nino could pose risks on the inflation front in the coming days.
effect of bad monsoon
Monsoon is also directly related to the demand of rural areas. If the monsoon is bad then the demand in rural areas declines. Due to this many sectors especially consumption based sectors are directly affected. It is natural that the apprehension of deteriorating demand also negatively affects the stocks of consumption-based sectors. It is clear that the failure of monsoon is neither good for the country’s economy nor for the stock market.
read this also: These 33 stocks can earn you this week, know how long the opportunity is going to be available
