India Sees Timely Monsoon Start With Focus on Rain to Ease Curbs
India expects the monsoon to start slightly earlier this year, with a forecast for above-average rain raising the prospect for bigger harvests and the easing of export curbs on some crops.
(Bloomberg) -- India expects the monsoon to start slightly earlier this year, with a forecast for above-average rain raising the prospect for bigger harvests and the easing of export curbs on some crops.
The four-month rainy period will begin on May 31, a day earlier than usual, with the southern state of Kerala poised to receive the first showers, according to a statement from the India Meteorological Department late Wednesday. Last month, the agency forecast higher than average rainfall this season.
The monsoon is crucial for India’s farmers because it irrigates fields and fills reservoirs that provide water for crops sown over winter when there is typically less rain. Traders and investors are betting robust harvests this year could lead to the government lifting some export restrictions, which were put in place to contain food prices ahead of general elections.
India is a major producer of wheat, sugar and rice, and global markets will be watching the spread of rainfall along with the volume.
Still, official projections can miss the mark and the agency has said its models do have a margin of error of a few days. The department said last year that the monsoon would hit Kerala on June 4, but rains arrived four days later.
Read More: Poorest Monsoon in Five Years Clouds India Sugar Export Prospect
--With assistance from Pratik Parija and Ruchi Bhatia.
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