El Nino Threatens to Drive Up Food Prices in India This Monsoon Season
Will El Nino push food prices higher this monsoon season? Govt responds
Zee News&w=1200&q=75)
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India's Finance Ministry warns that the looming El Nino could lead to higher food prices due to deficient monsoon rains, impacting rural demand and economic growth. While food reserves are adequate, the potential for a below-normal monsoon raises concerns for crop yields, particularly for pulses and oilseeds.
- 01India's food reserves stood at 817.53 lakh tonnes of rice and wheat as of April 2026.
- 02The India Meteorological Department projects monsoon rainfall at 92% of the Long Period Average due to El Nino.
- 03Crops like pulses and oilseeds, which are climate-sensitive, may see declines in acreage and yields during El Nino years.
- 04Livestock operations could face challenges from fodder shortages and rising feed costs.
- 05Domestic consumption patterns show mixed signals, with strong automobile sales but a decline in air passenger traffic.
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India's food inflation outlook is becoming increasingly uncertain as the Finance Ministry raises alarms about the potential impact of El Nino on the upcoming monsoon season. The Ministry's Monthly Economic Review for May highlights that deficient rainfall could lead to increased food prices, weakened rural demand, and slower economic growth. Currently, India's food reserves are in good shape, with 817.53 lakh tonnes of rice and wheat available. However, the India Meteorological Department forecasts a transition to El Nino conditions, predicting monsoon rainfall at around 92% of the Long Period Average. This poses a risk to certain crops, especially pulses and oilseeds, which are prone to declines during El Nino episodes. The Review also notes that livestock and dairy operations might suffer due to fodder shortages and rising feed costs. While some sectors, like automobile sales, show resilience, overall consumption may face challenges if the monsoon falls short.
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Higher food prices could strain household budgets, particularly in rural areas where food security is crucial.
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