Inflation worries: Is Modi Sarkar ready to combat rain deficit?

Mumbai: Prime Minister Narendra Modi on Thursday said that Centre and states should proactively mount a coordinated effort in implementing the advance action plan for the monsoon. 

Modi-led NDA government has a strong test to face as the country’s critical monsoon rains are delayed. The situation could lead to a huge rainfall deficit. 

The country received 45 per cent lesser rainfall than what was expected in its first spell, the IMD has said.

According to the Met department, the country has received 43.4 mm of rainfall as compared to normal rain of 78.8 mm from June 1 to June 17.

Northwest India is the worst hit receiving only 13.6 mm as compared to 28.7 mm, while central India received 31.7 mm. East and northeast received 100.1 mm of rainfall as compared to normal rainfall of 191.2 mm.

Large parts of  Kerala, coastal Karnataka, Goa and Maharashtra, Telangana and Vidharba region have received deficient rainfall. Coastal Andhra Pradesh, Jharkhand, Odisha, Chhattisgarh and Marathwada region of Maharashtra have received scanty rainfall.  

Low rainfall will reduce demand in rural India where farming is the main occupation and generates over 14 per cent of the country’s economic output. The rainfall in June is among the lowest in a decade with a deficit being measured at 38 per cent.

The scorching heat has dried up fields and sowing of main crops such as paddy, corn and sugarcane has suffered a setback, because of the delay. India is a rain-dependent country where about half of all farms lack irrigation systems.

Erratic monsoon has already shot up food prices, putting inflation at a 5-month high. The price of basic food items like onions has also skyrocketed.

The Modi government has however, restricted export of the commodity. In a bid to contain inflation, RBI has raised interest rates three times to keep consumer prices down.

Read: Monsoon rains reach Kerala coast

With the Union Budget around the corner, rising prices are burdening the common man and would impact the interest rates and are likely to stall economic revival promises by the new government.

The news of a weak monsoon has dampened the mood in the stock markets.

The Centre is also likely to increase the man-days under the MGNREGA from 100 to 150 or 200 days in drought-affected states, besides seeking greater convergence of the rural job scheme with other programmes, sources said.

Let us hope that the monsoon is just delayed and will revive in July.