A silver lining
Normal monsoon will support rural demand
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The forecast by the India Meteorological Department (IMD) of a normal monsoon this year has come as a silver lining in the general atmosphere of despondency created by the Covid-19 outbreak. This prediction, if true, bodes well for agriculture, which supports the livelihood of over half the population, as also for hydel power generation and other water-dependent industries. The agriculture and allied activities sector, which seems set to grow at 3.5 per cent in 2019-20, regardless of the of Covid-19 onslaught towards the end of the rabi season, can be expected to sustain or excel this level of growth in 2020-21 as well. The optimism on this count is supported also by the remarkable current water profile of the country. The water stock in 123 major reservoirs is estimated by the Central Water Commission at a whopping 63 per cent above the previous year’s corresponding level and 57 per cent above normal for this time of the year. This can help meet the water needs of agriculture and domestic sectors during the approaching dry summer. The economy as a whole can also hope to gain from the buoyant agriculture because of the attendant surge in rural demand for goods and services. But this is conditional upon the success in shielding the farm sector against the crippling impact of the pandemic on labour availability, marketing, and cash flow.