Uneven monsoon poses upside risks to inflation: Barclays
Barclays Plc’s economist Rahul Bajoria is of the view that the progress of southwest monsoon during July-August is critical as it has a significant bearing on sowing and crop yield for the year. Bajoria cautioned that weak sowing, coupled with uneven monsoon, could affect crop yields and farm output, posing upside risks to inflation. Agriculture accounts for about 18 per cent of India’s economy. The weather pattern, which usually begins its four-month journey from the southern state of Kerala on 1 June 2021, stalled for three weeks after bringing higher-than-average rains in the first half of June.