New Delhi: Finance Minister Arun Jaitley on Thursday dismissed the ongoing speculation on Monsoon as misplaced and stressed that there is no need to panic.
“I have been going through media reports with regard to the advanced predictions about the Monsoon,” Jaitley told a press conference.
“For anyone to draw conclusions on the basis of Monsoon predictions on inflation or some kind of distress situation is far-fetched,” Jaitley said further, adding, “I don't foresee this kind of a situation.”
The minister's remarks came a day after the Indian Meteorological Department (IMD) downgraded the Monsoon rain forecast from 93 percent to 88 percent of the long-period average (LPA). Unofficially, rainfall of less than 90 percent implies a drought year.
The minister said he had met senior scientists from the IMD and had a detailed analysis of their prediction and estimates.
Geography and timing of the Monsoon rains are more significant than the extent of rain, Jaitley said.
According to him, the country's northwest will see inadequate rain. “But that has substantial irrigation facility,” he added.
“Advanced predictions suggest Monsoon will be closer to normal in south, central and northeast zones,” the minister stated, adding that the advanced predictions on Monsoon are better than last year.
He further sought to assure that foodgrains production will not to be impacted by a poor Monsoon.
“Adequate stocks of foodgrains are available,” he told reporters.
He, however, did note that Monsoon has a significant impact on the economy, implying a poor rainfall may hurt GDP growth.
