Lack of sufficient rainfall may lead to a rise in inflation, adversely affect consumer purchasing power, and diminish demand, FADA said.
“Such developments would be particularly inopportune as they would coincide with the peak of India’s festive season, notably Navratri and Deepawali, traditionally periods of heightened consumer activity,” it said.
August was the driest month on record in India since 1901, with a rain deficit of 33% as compared with earlier expectations of a 6–10% deficiency, according to the Indian Meteorological Department.
While the forecast for September is for a normal monsoon, the pattern may be uneven, with certain regions receiving an above-normal monsoon and others witnessing below-normal rainfall. The minimum temperature is also likely to be higher than normal in most parts of the country.
