India may receive normal rain in July: official

Monsoon rains will be normal next month in the country, helping boost the prospects for a bigger harvest of rice, lentils and soybean.

Rains in July, which account for a third of the four-month monsoon showers, will be 95 per cent of its long-term average, M Rajeevan, director of the India Meteorological Department's National Climate Center, said.

The forecast is good news for the country's 234 million farmers, whose crops suffered due to below-normal rains in two of the past five years, pushing up prices of food staples. Prime Minister Manmohan Singh's government lost two state elections in February amid anger at food costs, which have risen at almost twice the pace of manufactured goods in the past year.

"Sowing has begun in most states and normal rains in July should boost crop prospects," said Harish Galipelli, head of research at Karvy Comtrade Ltd, by telephone from Hyderabad. "Inflation has already moderated and a good harvest will help bring down prices further."

India's inflation rate slowed to a 13-month low after the Congress party-led coalition took measures including scraping the import duty on wheat and lentils, and cutting the levy on vegetable oils three times since January.

Wholesale prices climbed 4.03 per cent in the week to June 16 from a year ago, slowing from 4.28 per cent in the previous week, the Ministry of Commerce & Industry said today. That's the lowest since the week ended April 29 last year.