Monsoon rains 2010 deviate 10% below normal: Impact on Industries

The progress of the south-west monsoon has been quite good in the last week of June and first week of July 2010. Rainfall during 1 June-7 July stood at 204.0 mm, 10% below normal. This is good progress considering -22% deviation from normal until 24 June 2010.

Actual rainfall has been scanty in only one region — East Uttar Pradesh (-67%) and deficient in 10 regions of India. Mainly parts of the central belt, covering MP, Chattisgarh, Orissa, Jharkhand, Bihar & West Bengal.

Details of the rainfall distribution are given by IMD.

Impact of the monsoon till 7 July on Indian Industries….

Relief package for coffee growers

During October-December 2009, major coffee producing states such as Kerala and Karnataka received heavy rainfall. The industry not only witnessed dropping of berries but also a drop in the quality of the crop. Production during the December quarter dipped by 17.5%, compared to the year-ago quarter. A drop of around 24% in coffee output to around 220,000 tonnes is expected this year due to inadequate rainfall during February and March in the coffee growing areas of Karnataka, state media reported.

Coffee growers have also been facing debt burden. Since banks were exerting pressure on coffee growers to settle their accounts under the one-time settlement (OTS) scheme, planters had been seeking a relief package as they have suffered crop loss for a number of years. The main reason for the crop loss has been excess rainfall and pests.

Finally, on April 29, 2010, the government announced a Rs 363-crore debt relief package for the sector.