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Economy

India Faces Deficit Risks as Weak June Monsoon Raises Inflation Warnings

El Niño Conditions Result in 40% Rainfall Shortfall in June

India ended the month of June 2026 with a cumulative southwest monsoon rainfall deficit of approximately 40% below the long-term average (LPA), marking one of the weakest starts to the season in a decade. The weak start is attributed to developing El Niño conditions in the Pacific, which have delayed the monsoon’s progress.

Monsoon Concerns relatable image
Relatable context: Monsoon Concerns

Delays in Kharif Sowing Raise Food Inflation Concerns for RBI

The sluggish rainfall has delayed the planting of summer-sown crops, including rice, soybeans, corn, and cotton. Central India and the Southern Peninsula are facing dry conditions and low reservoir levels. Economists warn that a prolonged deficit could pressure food inflation, presenting a key policy challenge for the Reserve Bank of India.