 "Inflation worries recede as IMD predicts normal monsoon")
The India Meteorological Department’s (IMD) prediction of normal monsoon is likely to assuage fears of spike in food inflation and El Niño’s impact on rainfall.
While this is a preliminary forecast, IMD will issue an updated forecast in June. If the distribution and spatial breakup is normal, as IMD expects, it bodes well for food production and as a consequence food inflation.
Based on this forecast, economists expect agriculture to grow at three-four per cent in FY18. "Factoring in the expectation that monsoon rainfall would be around 96 per cent of the long-period average (LPA), our baseline expectation is that growth of
