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Money

Monsoon shifts and El Nino threaten India’s food prices and household budgets

India faces a growing food security challenge as a weakening monsoon, rising temperatures, and El Niño conditions combine to stress agricultural output. While national grain stocks remain substantial, nearly half of the country's net sown area relies on rainfall, making the kharif and rabi crop cycles vulnerable to delayed or intense rains.

Climate volatility is already impacting reservoir levels and rural incomes, with concerns intensifying as multiple food-producing states experience simultaneous weather stress. A chain reaction across successive crop cycles threatens to transform manageable seasonal challenges into broader supply disruptions.

Food inflation serves as the primary economic indicator of this pressure, directly affecting household purchasing power and rural demand. As wholesale prices rise, retail markets transmit these costs to consumers, creating a dual squeeze from domestic weather shocks and global supply disruptions in edible oils and pulses.

Read the full story at indicanews.com.

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