Monsoon boosts tractor, motorcyle demand

Abundant rainfall increases incomes among the 700 million Indians who live in rural areas and spurs demand for goods such as motorcyles produced by Hero Honda Motors Ltd and tractors made by Mahindra & Mahindra Ltd.

The Bombay Stock Exchange 14-member Fast Moving Consumer Goods Index, which includes country's biggest household-products maker Hindustan Unilever Ltd, rose as much as 0.7 per cent in response to the monsoon forecast and ended 0.4 per cent higher at Rs 1,829.33. Shares of Mahindra gained 2.2 per cent to Rs 722.85 and Hero Honda climbed 1.2 percent to Rs 688.9.

Rainfall since June 1 has been 7 per cent above the average recorded between 1941 and 1990, Rajeevan said on Friday. The country received an average 148.7 millimeters (5.85 inches) of rains between June 1 and 27, compared with 138.5 millimeters, a level considered normal for the period, the weather office said.

The June-September monsoon rainfall will be 93 per cent of the long-term average, a level deemed normal, Rajeevan said, reiterating an April 19 forecast by the weather office. The forecast allows for a margin of error of 4 per cent.

Planting of most early winter-harvested crops, including rice, corn, lentils, soybeans, cotton and sugar cane, begins with the onset of the monsoon. The season started four days early on May 28, according to the weather office.