XM does not provide services to residents of the United States of America.

India's monsoon expected to be prolonged, threatening ripe crops, sources say



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>EXCLUSIVE-India's monsoon expected to be prolonged, threatening ripe crops, sources say</title></head><body>

By Rajendra Jadhav

MUMBAI, Aug 29 (Reuters) -India's monsoon rains are likely to be prolonged into late September this year due to the development of a low-pressure system in the middle of the month, two weather department officials told Reuters.

Above-normal rainfall due to the delayed withdrawal of the monsoon could damage India's summer-sown crops like rice, cotton, soybean, corn, and pulses, which are typically harvested from mid-September.

The crop damage could lead to food inflation, but the rains may also result in higher soil moisture, benefiting the planting of winter-sown crops such as wheat, rapeseed, and chickpea.

"There is an increased probability of a low-pressure system developing in the third week of September, which could delay the withdrawal of the monsoon," said a senior official of the India Meteorological Department, who sought anonymity as the matter is sensitive.

India, the world’s second-largest producer of wheat, sugar, and rice, has imposed various curbs on the export of these farm commodities, and any losses due to excessive rainfall could prompt New Delhi to extend those curbs.

The monsoon generally begins in June and starts to retreat by Sept. 17 from northwestern parts of the country, ending across the country by mid-October.

The lifeblood of a nearly $3.5-trillion economy, the annual monsoon brings almost 70% of the rain India needs to water farms and replenish reservoirs and aquifers. Without irrigation, nearly half the farmland in the country depends on the rains that usually run from June to September.

Monsoon rainfall in September and October could be influenced by La Nina weather conditions, which are likely to develop from the next month, said another IMD official.

In the past, when La Nina develops during the second half of the monsoon season, it has led to a delayed monsoon withdrawal, said the official, adding that "this year, we could see a similar pattern".

The two sources shared their assessment ahead of the IMD's monthly forecast for September rainfall and monsoon withdrawal, which is scheduled for this weekend.

India has received 7% more rainfall than average since the monsoon season began on June 1. However, some states have experienced as much as 66% more rainfall than average, leading to flooding.

Heavy rains during the third and fourth weeks of September and early October could affect early sown crops that are nearing harvest, said Ashwini Bansod, vice president of commodities research at Phillip Capital India.

"The impact would depend on the intensity and duration of the rainfall. If the rains persist into the first half of October, it could cause more damage if fields get flooded," Bansod said.



Reporting by Rajendra Jadhav; Editing by Jan Harvey

</body></html>

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.