July rains ease monsoon deficit, but crop and inflation risks persist
India's cumulative monsoon rainfall deficit decreased to 19.3% from 38% at the end of June, thanks to heavy July rains. However, significant regional disparities remain, with east and northeast India facing a 35.5% deficit, raising concerns for crop yields and inflation. Policymakers and farmers remain cautious as the crucial kharif sowing window continues, with the India Meteorological Department forecasting below-normal precipitation for the month.