The monsoon is crucial for 60% of the farms in India and the approximately two thirds of the nation's population that depend upon agriculture for their livelihood. Considering the direct correlation between disposable income and ample rainfall, a delayed or below normal monsoon, messes with a lot more than just industry. It affects the economy as a whole.
The monsoons this time are expected to be below normal for the second time in three years. The government has just announced that the June-September rainfall will be at 95% of the long period average. For a nation already reeling under high food prices, this could potentially lower farm output and accelerate inflation even further.
Yes Bank's chief economist, Shubhada Rao, and chairman of the commission for agricultural costs and prices, Ashok Gulati, join CNBC-TV18 to discuss the effect of the below-normal, but well distributed rainfall on our economy. Below is the verbatim transcript. Also watch the accompanying video. Q: We have just heard from the MET department that it
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