India suffers driest June in 5 years, fears for crops and economy

Agencies
July 1, 2019

Mumbai, Jul 1: India had its driest June in five years due to a delay in monsoon rains, the weather department said late on Sunday, raising fears for crops and the broader economy.

Overall, rains were a third below average, although in some states, including the sugar cane growing northern state of Uttar Pradesh, they were as much as 61 per cent down, data from the India Meteorological Department (IMD) showed.

Over half of country's arable land relies on rainfall, while agriculture makes up about 15 per cent of Asia's third-largest economy, which is already suffering a slowdown.

The monsoon usually covers nearly the entire country by July 1, but has covered less than two-thirds so far this year, according to the IMD data.

If the rains don't improve over the next two to three weeks, the country could face a crisis that hammers harvests and rural demand, analysts said. Companies supplying farmers with everything from tractors to consumer goods would be vulnerable.

The country is still recovering from a drought last year that ravaged crops, killed livestock, emptied reservoirs and drained water supplies to city dwellers and some industries.

Rains first arrived in Kerala a week late on June 8, but the developing Cyclone Vayu in the Arabian Sea drew moisture from the monsoon and weakened its progress.

Cotton, soybean and pulses growing western and central parts of India are likely to get good rainfall in the first half of July, but rains could be below average in northern India, said an IMD official, who declined to be named as he was not authorized to speak with media.

In the second half of July rainfall in north-western India could improve, but rains in central and western India could be subdued, the official said.

Overall, India faces below average rainfall in July but the deficit is likely to be far smaller than June's 33 per cent, he said.

In 2014, we received 42 per cent less rainfall in June and ended the June-Sept monsoon season with rains 12 per cent below average.

The weak start to the monsoon has delayed planting, with farmers sowing crops on 14.7 million hectares as of June 28, down almost 10 per cent on a year earlier.

For 2019, the IMD in late May forecast average rainfall, while private forecaster, Skymet, has predicted below-normal rainfall.

A normal, or average, monsoon means rainfall between 96 per cent and 104 per cent of a 50-year average of 89 cm during the four-month monsoon season, according to the IMD's classification.

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News Network
March 6,2020

Mumbai, Mar 6: Harried Yes Bank depositors rushed to ATMs to withdraw cash but faced multitude of problems including closed down machines and long queues, after the RBI placed the bank under a moratorium, capping maximum withdrawals at Rs 50,000 per account for a month.

Aggravating the problems of depositors were difficulties accessing the internet banking channel, which ensured that they can't transfer the funds online as well. At an ATM in south Mumbai's Horniman Circle, with the RBI headquarters overlooking it, the shutters were pulled down.

The guard on duty said the machine was non-operational before he reported to work late in the evening and he was ordered to shut it after 2200 hrs. In the residential area of suburban Chembur, one ATM was dispensing cash but had a long queue of anxious depositors.

One man said it was still possible to withdraw up to Rs 50,000 in multiple transactions from the machine.

However, another machine nearby had run dry within minutes of the RBI announcement, a woman said.

The regulatory actions, undertaken by the RBI and the government, came hours after finance ministry sources confirmed that SBI was directed to bail out the troubled lender.

For the next month, Yes Bank will be led by the RBI-appointed administrator Prashant Kumar, an ex-chief financial officer of SBI.

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News Network
January 6,2020

Jan 6: Senior Bharatiya Janata Party leader Subramanian Swamy on Sunday said the country's economy is not showing good signs though Prime Minister Narendra Modi has manifested tremendous leadership skills in fighting terror and in social welfare projects.

The fiscal decisions of the government have not yielded the desired results, the Rajya Sabha MP said here.

"Modi had shown tremendous leadership skill in fighting terror, in several social areas, micro areas like bringing toilets to every village home. But the economy is a complex system...," he said while taking part in a discussion.

While every minister is talking about a 5 trillion dollar economy by 2024, but the current GDP growth has to be multiplied in four years to achieve that, the former Union minister said.

He said, if wages are slashed as a measure to cope with the situation, labor will become cheap but that will also cut down the people's purchasing power triggering dip in demand, closing down factories and rise in unemployment.

"This is one problem for which you really need an economist," he said.

Swamy said in jest, "I think Modi has one problem with me. Not only I am an economist but also a politician."

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News Network
January 6,2020

Dehradun, Jan 6: Universities are centres of learning and will not be allowed to become "addas" of politics, HRD Minister Ramesh Pokhriyal 'Nishank' has said.

The minister was replying to questions from reporters in Haldwani on Sunday about protests against the amended Citizenship Act across university campuses.

"Universities are centres of learning where the country's future is in the making. We cannot let them become addas of politics," Nishank said.

He accused the opposition parties of trying to turn the universities into hotbeds of politics.

The new legislation passed by Parliament aims to grant citizenship to persecuted religious minorities from Pakistan, Bangladesh and Afghanistan who had taken refuge in India and there is nothing wrong in it, the Union Minister said

"When Pakistan was created, the population of religious minorities there stood at 22 per cent. Today it is a minuscule 3.7 per cent. Persecuted on the basis of their religion, they sought sanctuary in India. The CAA is meant only to grant them citizenship," he said.

Terming the law humanitarian, the minister said it was going to make no difference to the status of Muslims in India and wondered why the Congress was making such a hue and cry about it.

Nishank's press conference in Haldwani was part of the BJP's campaign to create awareness in favour of the amended Citizenship Act.

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