Good news at last
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Being all other things are worst, good news has come from the Indian Meteorology department that, Southwest Monsoon has set for onset in India. As the Indian economy is dependent upon Monsoon, it is not necessary to tell how this news is most crucial for the Indian farm sector. India, being an agricultural country, Monsoon plays a most crucial part in shaping farm sector and thereby the economy. In the present year, the situation is most difficult as entire country is fighting against deadliest Coronavirus which has taken a toll of at least two lakhs Indians. But, farm sector against all odds is performing with all its luster which is a wonder. According to IMD predictions, the Monsoon will be normal this year which is again a healthy sign for the revival of economy. When Monsoon will be normal, the production of crop will be tremendous and it will automatically create demand which will further revive Indian economy. As the demand grows, economy revival can be expected and current situation is most disappointing for demand. As Indian economy is severely hit by unemployment and negative GDP rate, the normal Monsoon is a silver lining in dark shade of economic doldrums. The weather conditions are perfect for the southwest Monsoon to make an onset in India. The weather department on Thursday confirmed that the southwest Monsoon arrived over Kerala. In a tweet, the India Meterological Department said the monsoon set in over southern parts of Kerala. After two years of above-average rainfall, the IMD, in its second long-range forecast, has predicted normal monsoon rainfall at 101% of the long-period average (LPA) this year. The LPA is the average rainfall (88cm) recorded in India every year between June and September from 1961 to 2010. The arrival of the Monsoon, crucial to the country’s farm-dependent economy, is announced based on factors such as wind speed, consistency of rainfall, intensity, and cloud cover. The good Monsoon will have a positive impact on farming and for the consecutive third year, Monsoon has been normal in India. Had there not been a Corona wave, the Indian economy would have been running like a horse. But, Corona has been a most difficult hurdle in racing the Indian economy. A decent Monsoon boosts demand for consumer goods in rural areas which means the companies which focus on selling products in rural areas have a chance to flourish. Not only this, good Monsoon triggers an increase in groundwater level and more hydropower output. The farm sector enjoys a good impact of decent Monsoon which spreads to every nook and corner of the country. If we look at the farming pattern in India, India is self-sufficient in rice and wheat, but a drought would increase imports of pulses and edible oils, such as palm oil, soy oil, and sunflower oil. Already India is witnessing an unprecedented increase in the prices of these oils with one hundred and seventy to one-eighty rupees per liter. This is so high that, half of the Indian population can’t afford it. A good Monsoon may increase the edible oilseeds production and the rates may come down though slightly. Farmers also change their habits of cultivating another crop than oil seeds which is the main factor behind such skyrocketing prices of edible oil. Higher rainfall can trim demand for subsidized diesel, which is used to pump wells for irrigation. This period is of bad news and for the first time, good news has come for India.