Monsoon Update on June 10 | Rainfall likely to increase in second half of June

Rainfall is likely to increase in the second half of June as the monsoon extends over the country, following a period of sparse rainfall until mid-June, according to the Indian Meteorological Department (IMD).

The rainfall during the current monsoon season is likely to be 103 percent of the long-period average, which would then mark the fourth consecutive year of India experiencing a normal monsoon season, according to the India Meteorological Department's second long-range forecast.

Barclays India said in its Emerging Markets Research that reservoir storage remains healthy and added that the country's reservoirs stood at about 30 percent of the total capacity. However, that amounts to 107 percent of the available capacity in the year-earlier period and 133 percent of the 10-year average for this point in the season. Reservoir storage levels are essential for agriculture even as the means of irrigation have diversified.

The government's recent revision of the Minimum Support Prices for summer crops remains benign, ranging from four percent to six percent on average. The inflationary impact is unlikely to be material, according to Barclays India's report.