Source: Barchart.com
Jim Roemer
Tue Oct 11,
India’s agriculture sector accounts for around 14% of the country’s $2.7 trillion economy and 42% of total employment. With around 55% of India’s arable land dependent on precipitation, the amount of rainfall during the current monsoon season could sway economic activity in the agriculture sector and industries linked to it.
The recent flooding in parts of central and northern India has damaged the cotton crop and dry weather is needed for the harvest season for sugar cane and rice, as well. Flooding may prompt the Indian government to raise minimum support prices for all of the current season’s crops to help support farmers’ incomes.
Source: Weather Wealth newsletter at www.bestweatherinc.com
About one-third of India’s manufacturing output, which makes up around 18% of the country’s gross domestic product, is linked to turning agricultural products into food. The overall Indian economy remains very vulnerable to the monsoon.
Given the terrible drought this summer to Texas cotton and now incessant October rains hitting 30-40% of the Indian cotton crop, we can see why cotton prices, in particular, rallied off of key support areas late last week and on Monday.
Thanks for your interest in commodity weather! Warm regards,
(Jim Roemer – Meteorologist – Commodity Trading Advisor – Principal, Best Weather Inc. & Climate Predict – Publisher, Weather Wealth & Climatelligence) (Source: Barchart.com)
