Erratic monsoons signal farm distress, sowing down in five states

Rural India faces double whammy, with lower growth in output, decline in its terms of trade

The BSE-CMIE-UMich Index of Consumer Sentiment seems to be stabilising at a little over 97 (base: 100 in September-December 2015) in July. If the index settles below 98 for the month, it would be lower than its level a year ago. Sentiments have been subdued. 

  

During June and July, the most important factor influencing consumer sentiments is the progress of the southwest monsoon. Monsoons impact farmers directly and, they impact the rest of the economy as well. 

  

Last year, monsoons turned out to be good after a gap of two years. At the end of July 2016, monsoons were 0.42 per cent