The agriculture sector has been severely affected by the weak monsoon, resulting in a decline in water levels in reservoirs

The agriculture sector in India has been significantly affected by the weak South-West monsoon. This year, there has been a reduction in the cultivation area for major crops like pigeon peas and sesame. Rain-fed crops have been considerably affected. In fact, more than half of the country's agriculture sector is dependent on rainfall for crop cultivation. This could lead to further distress as the need for expensive imports may be required to compensate for the shortfall and keep prices under control.

Due to the low rainfall, the sowing of crops like pulses has decreased by around 9%, and sunflower cultivation has decreased by up to 65%. The area under crops like urad, moong, and arhar (types of pulses) is 5.41 lakh hectares less compared to the previous year. Similarly, the area under sesame cultivation is reduced by 3.16 lakh hectares. This year, there are reports of approximately 8.68 lakh hectares of crop area in states being affected by floods or excessive rainfall. The kharif crop harvest has started, and in the coming weeks, the extent of the damage to total production will become clearer.

The monsoon began late in June, followed by excessive rain in July, then a decrease in rainfall in August, and again, in September, there was heavy rain in some parts of the country, such as Punjab and Haryana. This affected rain-fed crops. Consequently, there has been a surge in the prices of vegetables, particularly tomatoes and onions, leading to an increase in inflation and a strain on household budgets. The rising prices of staples such as rice, wheat, pulses, and spices are a cause for concern. According to the latest retail inflation figures, the food inflation component decreased by 6.56% in September due to a decrease in the prices of vegetables and cooking oil, but the prices of pulses increased by 16.38%, and the prices of spices increased by 23.06%. The prices of cereals increased by 10.95%.

Nearly 80% of India's rainfall occurs during the South-West monsoon, which replenishes the country's reservoirs. This water is used for irrigation during the subsequent agricultural season. This year, due to the low rainfall, the water storage in reservoirs is reported to be approximately 75% of last year, which could affect agricultural production in the upcoming Rabi season.