India’s driest august in a century stokes fears of more crop curbs

Monsoon rains irrigate about half of India’s farmland and are crucial for crops such as sugar and soybeans.

India received the lowest August rains since at least 1901, prompting concerns about weaker crop output and the potential for more export restrictions following the South Asian nation’s curbs on rice.

The country received 629.7 millimeters of rainfall this month, 36% lower than normal, according to data compiled by the India Meteorological Department. Total rainfall during June-August was 10% below average, the figures show.

Monsoon rains irrigate about half of India’s farmland and are crucial for crops such as sugar and soybeans. Erratic weather has hurt some harvests since last year, forcing the nation to restrict exports of wheat and rice to cool domestic retail inflation that surged to a 15-month high in July. The government has also imposed stockpile limits on some crops.

September rains will be crucial to make up the shortfall as the monsoon nears its end, especially given the onset of El Niño, which can bring drier conditions. Some main rice-growing regions in the nation’s east have had poor rainfall, hurting prospects of the biggest monsoon-sown food grain crop in the area, according to the weather office. The cane areas in the western and southern parts have also seen lower rainfall, it said.

Any decline in production of wheat, rice and sugar in the world’s second-biggest grower could put more stress on global food supplies and boost prices of major commodities. Rice prices in Asia are hovering near a 15-year high and sugar prices in New York are up more than 25% this year.

Monsoon rains typically commence at the start of June and reach the whole of the country by July 8, before extending through the end of September. They arrived on June 8 this year.