India’s Weakest Monsoon in Ten Years Threatens Rural Demand

India has received much less rain than usual during this year’s monsoon.

This can make it harder for farmers to grow some crops and may reduce spending in villages.

However, the central part of India, an important farming area, has had a smaller rainfall shortage.

Farmers also planted more crops as the season continued, so the overall crop impact may be limited.

Rice and maize planting are still lower than last year, while pulse planting is slightly higher.

Government stores contain large amounts of rice and wheat, which may help prevent food prices from rising too quickly.

Reservoirs have less water than usual, creating concerns for crops planted in winter.

A weather pattern called El Niño could bring more risks, while any help from the Indian Ocean Dipole may arrive too late.

Nomura therefore favors consumer companies with strong brands, pricing power and more urban customers.