El Nino factor may push up food inflation: Assocham

Further says that the risk of inflation will be much higher and it may even go beyond 15% as in 2010

El Nino factor will be the biggest contributor in further pushing food inflation if there is 10% rainfall deficit in non-irrigated areas, apex industry body Associated Chambers of Commerce and Industry (Assocham) said on Wednesday.

It further said that the risk of inflation will be much higher and it may even go beyond 15% as in 2010.

"The states with maximum impact could be Maharashtra, Madhya Pradesh (MP), Gujarat, Tamil Nadu and Andhra Pradesh which contribute significantly to agricultural growth in India," said DS Rawat, national secretary general of Assocham while interacting with media on the sidelines of chamber's conference on 'MP-MICE Tourism Destination'.

"While the national Gross Domestic Product (GDP) may be impacted by about 1.75% to two%, states like Madhya Pradesh, significantly dependent upon agricultural growth, may feel an impact of between 2.5 and 3% to their Gross State Domestic Product (GSDP)," said Rawat.