Guwahati: Unseasonal rains in some parts of India in October may have a significant negative influence on food inflation in the months to come, said SBI Research in its latest Ecowrap report.
According to the report, these unusual rains are “seriously harming Kharif crops.”
Most Kharif crops are planted in the monsoon months of June and July, and the harvest occurs in October and November.
“The amount of unusual rain fell in places like Uttar Pradesh was more than 400% over average. India has so far had startling rainfall in October that is 54% above average “it said.
In addition to cereals, it thinks that the costs of vegetables, milk, pulses, and edible oils, which make up more than a quarter of the CPI overall, are growing and will probably continue to do so in the months to come.
The Reserve Bank of India (RBI) has scheduled an extra and out-of-turn monetary policy meeting for November 3 in light of this.
The meeting has been called under the provisions of Section 45ZN of the Reserve Bank of India (RBI) Act 1934, RBI said in a statement on Thursday.
The actions that should be taken if the central bank doesn’t achieve its inflation-targeting mandate are covered by this section of the RBI Act.