(Bloomberg) -- India's crucial monsoon is off to a poor start, with rainfall 20% lower than normal across the country, raising concerns about the production outlook for key crops including sugar and rice.
The South Asian nation received 64.5 millimeters (2.5 inches) over the first 18 days of June, compared with the long-term average of 80.6 millimeters, according to the India Meteorological Department. Some regions including the biggest sugarcane-growing area got even less.
India's monsoon runs from June to September and irrigates about half of the nation's farmland, and lower harvests could lead to further or extended curbs on exports to keep a lid on domestic inflation. The country is a major shipper of rice and sugar and restrictions could flow to global prices.
Rains are also necessary for ensuring balance in the country's power system, from feeding dams for hydro generation while reducing demand from irrigation pumps. Parts of the nation are already grappling with excessive heat, leading to greater electricity consumption.
India's northwest has seen the least rain, with the 10.2 millimeters falling in the region 70% below the long-term average. That area includes the state of Uttar Pradesh, the country's top sugarcane producer.
The average June rainfall for the country as a whole will most likely be below normal, the India Meteorological Department said. Last month, the weather agency predicted above-normal rains for the monsoon season.
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