July 22, 2011

India's crop prospects brighten on monsoon rains

Crop prospects across India - including in the western province of Gujarat, which has been in the grip of a dry spell - have improved as the annual monsoon rains have picked up, narrowing a rainfall deficit.

Rainfall between July 14-20 was 7% above the long-term average, according to the India Meteorological Department, following two successive weeks of below-average rains that raised concerns about crops.

The seasonal rainfall deficit had widened to 3% below the long-term average last week, but now stands at 1% below normal. So far, 12% of the country has had below-average rainfall, while 88% had normal or excess showers.

"The rains are improving, but Gujarat and the southern state of Andhra Pradesh still remain areas of concern," said a senior weather department official.

The June-September monsoon season brings about 70% of India's annual rainfall and is crucial for crops as about 60% of the country's farmland is rain-fed.

Gujarat, the country's largest producer of groundnut and cotton, had 80% below-average rains until the end of June, but now the gap has narrowed to 34%.

However, poor rains in Andhra Pradesh are causing worries for rice plantings. Only 9% of the state's rice area has been sown so far, a state government official said.

The output of rice in Andhra Pradesh, a leading producer of the grain, could fall by up to 10% during the main summer season because of delayed rains, according to B. Vithal Reddy, advisor to the state's Rice Industry Association.

"It's still a bit early. The picture will become clear in a month's time," he said.