A good monsoon, which is now in its withdrawal phase, is expected to bring a much needed relief to India's rural population. This year's monsoon has been benevolent enough to bring in more cash in the hands of farmers as a major percent of the normal area for the full kharif season has already been sown.
India’s economy is still dependent on agriculture, which relies on the monsoon for irrigating over half of its farmland. Generous rains this year prompted farmers to plant nearly 7 per cent more crops than last year, with the expectation of bumper yields. Though few regions such as Bihar, Jharkhand and the northeast are expected to witness a decline in crop production, larger harvests in the rest of the country will compensate it.
The country recorded more than normal rainfall at a time when food inflation is on the rise and overall economic growth has slipped to an all-time low. The monsoon is likely to have a substantially good impact on the agriculture sector and a rebound to the weakening economy. Moreover, the water reservoirs that irrigate crops and run hydel power plants have been replenished. According to official estimates, major dams of the country have recorded nearly 29 per cent higher water stock, at 125.84 billion cubic metres, as compared to last year.
An increase in rural income should strengthen the demand for consumer goods ameliorating countryside construction, thereby boosting the service sector. Food inflation is also anticipated to come down owing to substantial output of food, fibre, fuel and cash crops.
photo courtesy- Bhaskar Mallick
