What are the impacts of poor monsoon?
- Inflation: More than 60 % area is rain fed. Thus reduction in food production leads to food inflation.
- Lower industrial growth: agriculture raw materials are used in many industries like sugar, textiles etc. Low agriculture production will reduce the growth of these industries which not just provide employment to millions but also earn forex through export.
- Migration: Loss of crops leads to distress migration among farmers to already crowded cities leading more slums and more pollution and congestion.
- Rural economy slow down: due to reduction if rural demand (due to less income). This will have its share in the slowdown of overall economy.
How to make our economy monsoon proof?
- Crop insurance : Increase coverage and give timely benefits
- Diversification of agriculture: sericulture, animal rearing which are less dependent on rain.
- Irrigation infrastructure
- Better farming methods and developing crop varieties which can grow in water scarce conditions i.e. climate resilient agriculture.