Impact of Unseasonal Rains

01-Nov-2025 10:52 AM

Indian farmers were expecting excellent agricultural production this year, as the early arrival of the monsoon and good rainfall in various regions facilitated the early sowing of Kharif crops and led to a significant increase in the acreage under paddy, maize, black gram, and some other crops.

The southwest monsoon was extremely active in some states during July-August and continued to be active in September. The monsoon rainfall pattern is changing.

Previously, the northwestern part of the country was generally considered a drought-prone region, with scanty rainfall, forcing Rajasthan, Punjab, Haryana, and Gujarat to rely on groundwater for crop irrigation.

However, this year, the rains were so heavy that much of the region was submerged, increasing the risk of floods. Furthermore, the rains began in October, just as harvesting was underway.

This damaged crops in many areas, dashing hopes of a good Kharif harvest. Extremely torrential rains and severe floods also affected crops in Maharashtra, Karnataka, and Telangana, shattering the dreams of millions of farmers before they could become reality.

The recent Cyclone Montha also wreaked havoc in the southern states, destroying Kharif crops. Unseasonal rains also adversely affected Maharashtra.

While nearly all Kharif crops were affected by the natural disaster, soybean, cotton, and pulses are expected to suffer the most.

This is likely to slow agricultural growth. Crop losses will make it difficult for farmers to repay their loans and weaken the rural economy, adversely impacting consumption in rural areas.

This is likely to impact the business of FMCG companies. The Central Government's GST rate reduction on hundreds of consumer products was expected to increase demand and consumption, but given the weak purchasing power of farmers, this increase in consumption will be questionable. The state of the agricultural sector cannot be considered encouraging.