Friday, 7 August 2009

India’s Wettest Month to Get More Rain Than Forecast

India received more rainfall this month than forecast by the weather bureau, helping ease a dry spell that's affected sowing of crops in the world's second- biggest producer of rice, wheat and sugar.

The monsoon has strengthened since July 8, helping narrow the rain deficit to 19 percent so far this season from as high as 52 percent in June. High farm output will help Prime Minister Manmohan Singh push economic growth back to a 9 percent pace and to meet a poll promise of ensuring food security for the poor.

Agricultural output may not drop if plantings gather pace during next week in the northern states, the biggest growers of grain, sugar cane and lentils, Crisil Ltd., the Indian unit of Standard & Poor's said in a report yesterday.

"Empirical evidence shows that whenever poor rainfall in June is compensated by good rains in July and August, agricultural performance was normal," the rating agency said. "June rain, though relevant from the sowing perspective, is not a critical determinant of agricultural performance."

The nation, which has bought a record 30 million metric tons of rice and 25.1 million tons of wheat from farmers this year, may not face any shortage of food grain this year, Sonia Gandhi, chief of the ruling Congress Party, said today.

"We're assured by the fact that we have adequate buffer stocks" to cope with shortages, she told party lawmakers.


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