State governments have also been asked to take measures to prevent spike in prices of essential commodities, it added.
"We will not allow prices of milk and for that matter any essential food items to rise due to impact of below normal rains," Agriculture Minister Radha Mohan Singh told reporters.
The Met Department has projected 8 and 10 per cent deficient rains in July and August respectively. In June, rains were 28 per cent above normal.
Stating that the government is keeping close watch on food prices, Singh said that measures are being taken to boost supply of pulses and other items, in which there have been price increase recently.
"The state governments have also been asked to take measures to check prices of essential items," he said, adding that more steps to check food inflation will be discussed in detail next week in a meeting of state food ministers, to be chaired by Finance Minister Arun Jaitley.
Singh said the government has a contingency plan for 600- odd districts to tackle deficient rains in July and August.
There has been more than 60 per cent increase in retail prices of pulses in last one year. Pulses prices have already breached Rs 100 per kg market in most markets.
Similarly, onion prices are inching up in the wake of short supply.
At present, farmers are undertaking sowing of kharif (summer) crops. Monsoon rains are crucial as more than half of the cultivable land in the country is rainfed.
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