July rains crucial for Indian agriculture: Nomura

NEW DELHI: Surplus rains in June nothwithstanding, downpours in July would be crucial for the Indian agriculture sector, investment bank Nomura has said.

"The Indian monsoon season (June-September) has started on a positive note. For the week ending 1st June, all-India rains were 12 per cent above normal," Nomura Financial Advisory and Securities Private Limited said in a statement.

However, it is July, not the June rains that matter for the agriculture sector, Nomura said in its Asia chart alert.

"Sowing of a number of crops starts in June and good July rains determine the soil moisture and ensure proper development of the crops planted in June," it said, adding it was too early to conclude the crop prospects for this year.

Monsoon rains, which account for 70 per cent of India's rainfall, is vital for kharif crops such as paddy, sugarcane, oilseeds and pulses.

Although it is too early to predict crop yields, Nomura noted, since the strong La Nina conditions are ending and weather conditions are neutral, it is a positive sign for the monsoons in the country.

The La Nina effect has been responsible for the massive flooding in Australia, it added.