‘Surplus rains to help reduce food inflation, raise demand’ 

Farmhands engaged in dibbling weeding at a cotton area on the outskirts of Hyderabad

With Kharif crop sowing up 1.5% over final yr’s ranges by late September, and the wholesome Southwest monsoon boosting reservoir ranges in addition to Rabi crop prospects, meals inflation is predicted to recede and rural demand is prone to see a gentle rebound within the second half of 2024-25.

As of September 30, the monsoon had yielded an 8% surplus over the long-period common, and reservoir ranges stood at 87% capability by September 26, Financial institution of Baroda economist Sonal Badhan mentioned in a observe. Barring the northern area, the place reservoir ranges are 68% of capability in contrast with 86% final yr, all different components of the nation have extra water stocked up than a yr in the past in addition to their regular ranges.

“Above-normal monsoon helped farmers to not solely sow extra crops this Kharif season but additionally helped in diversification of crops,” Motilal Oswal Monetary Companies analysts mentioned in a report. That is seemingly to enhance the farm sector’s gross worth addition (GVA), and increase rural demand, whereas assuaging inflationary pressures on meals gadgets, they reckoned.