India’s monsoon rainfall in 2024 marked the highest since 2020, delivering crucial relief to the country’s agriculture sector after a dry spell last year, according to a report from the India Meteorological Department (IMD). For three consecutive months, the country experienced above-average precipitation, with overall monsoon rainfall from June through September standing at 107.6% of the long-period average. This extended rainy season provided the much-needed water supply for India’s nearly $3.5 trillion economy, which is heavily reliant on monsoon rains to irrigate farmland and replenish reservoirs. Almost 70% of the rain India needs each year falls during the monsoon season.
The IMD’s data revealed that India recorded 11.6% more rainfall than average in September, following a 9% surplus in July and a 15.3% excess in August. The extended rains, while crucial for the country’s water supply and crop irrigation, also caused some damage to summer-sown crops like rice, cotton, soybean, and corn in certain regions. However, experts say the higher soil moisture will likely benefit the upcoming winter-sown crops, including wheat, rapeseed, and chickpea.
India’s strong monsoon performance comes after the country’s driest year in five years in 2023, which significantly impacted agricultural output, depleted reservoirs, and led the government to impose export curbs on staples such as rice, sugar, and onions to control domestic supply and prices. However, the improved rainfall this year has expanded the area under cultivation for key crops, leading to optimism for larger harvests in the coming months.
“This means we could have larger harvests of some summer-sown crops, potentially helping the government to relax trade restrictions in certain cases,” said Ashwini Bansod, Vice President of Commodities Research at Phillip Capital India. In fact, India recently lifted its export restrictions on non-basmati white rice and reduced export duty on parboiled rice to 10%, a sign of confidence buoyed by promising new harvests and higher stock levels in state warehouses.
The monsoon season, which typically runs from June to September, is the lifeblood of India’s economy, directly impacting the livelihoods of millions of farmers and the production of essential crops. The positive outlook on the monsoon is expected to bring relief not only to the agricultural sector but also to the broader economy, which has been grappling with inflation and supply chain disruptions.
