Do More With Reuters
Partner Services

RPT-UPDATE 1-Monsoon rains lash India, cover most of country

Tue Jun 17, 2008 8:00am IST
 
Email | Print | | Single Page
[-] Text [+]

(Repeats story issued late Monday)

By Mayank Bhardwaj

NEW DELHI, June 16 (Reuters) - India's monsoon rains in the first half of June were more than 40 percent above the long-term average, raising hopes of strong crop output at a time when rising food prices have helped push inflation to 7-year highs.

A senior official at the India Meteorological Department (IMD) told Reuters on Monday that rainfall in the June 1-15 period was 44 percent above normal, adding the rains had now spread across most of the country.

The monsoon arrived in New Delhi at the weekend, two weeks ahead of usual. The four-month rainy season normally kicks off around June 1 in the southwestern state of Kerala and covers the entire country by mid-July.

"Rainfall for June 1-15 has been very good, and the monsoon has covered almost the entire country except some parts of Rajasthan," an IMD director, B.P. Yadav, said.

With only 40 percent of farmland irrigated, most of India's small farmers rely on the monsoon to water their crops. A good season of rains also boosts rural demand for a range of products and is a key factor in determining expansion in the larger economy.

Analysts say above average rainfall will help farmers growing oilseeds like soybean and groundnut, as well as rice and sugarcane, as it will raise soil moisture levels and cut irrigation costs.

Farming and related activities generate income for more than two-thirds of India's 1.1 billion people. Traders said it was too soon to declare the 2008 monsoon a good one.  Continued...

India Investment Summit 2009
India Investment Summit 2009

Top executives and bankers discuss their own plans and the broader opportunities and challenges for India.  Full Coverage 

GLOBAL RECOVERY

A labourer works on a flyover bridge at a construction site in New Delhi October 14, 2009. REUTERS/Parth Sanyal/Files
Global economy in holding pattern - IMF

The global economy is in a holding pattern and vulnerable to more upheaval, the head of the IMF said, adding a lasting recovery will depend on policymakers taking the proper steps in the coming months.  Full Article 

A man walks past a bronze statue of a bull outside the Bombay Stock Exchange (BSE) building in Mumbai in this March 25, 2008 file photo. REUTERS/Punit Paranjpe/Files
Bubble trouble?

With India's benchmark stock index, the BSE Sensex, at around 17,000 points, are the Indian equity markets looking at a possible bubble?  Commentary 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives

SPECIAL REPORT

Himangshu Watts
India's food dilemma

Indian farms are failing to attract capital or talent, either from rich landlords or the students who graduate from agricultural universities.  Full Article | Related Story 

showcase

U.S. Recession
U.S. Recession

A trip through the epicenters of the American recession.  Full Coverage 

 
Central Banks Cautious
Central Banks Cautious

Reuters tracks the policies of the world's top central banks as the debate over global economic recovery rages on.   Full Coverage 

 
T P Raman
Column - RBI leads the world

Reserve Bank of India's approach ring-fenced the banking system.   Full Article 

 
Funding Blues
Funding Blues

A popular tactic used by Indian brokerages to raise money for rich clients is likely to be banned.  Full Article 

 
Not Enough Jobs
Not Enough Jobs

Venture capital creates jobs, but not enough.  Full Article 

 
Column - A Sweet Dream
Column - A Sweet Dream

There are good reasons for Ferrero to consider a combination with Cadbury.  Full Article