Weak monsoon will affect corporate sector, say captains of industry

Pune, Aug 14 (ANI): A delayed monsoon and deficient rain will have an adverse impact on Indian corporates, which directly or indirectly depend on rural produce, the food grains and power from hydro electricity projects in particular.

Such have been the views expressed by leading industrialists and economists.

Even the average rainfall for the remainder of the monsoon season, mid-August to September end, will not offset the trends of drought until it rains about 30-40 per cent in excess from the normal expectations.

It may be recalled that between the start of the summer monsoon season on June 1 and August 13, rainfall was 29 per cent below normal. And weather reports don't predict bountiful rain for the rest of the season.

Meanwhile, the Central Government has declared more than a quarter of the countrys' 600 districts in different states as drought-hit.

Consequently, the captains of industry are a worried lot.

"The current monsoon being poor and it's below average. It's going to have an impact on current crop. In some of the states, farmers have been smart and the government has been active. They have switched to supplementing paddy crops with others like cereals and oilseeds and even cotton.

But there is a concern in some of the states more particularly like West Bengal, Jharkhand and Uttar Pradesh where there's a clear shortfall. We believe the impact will be felt after the harvesting of the current crop," said Sunil Kant Munjal, former president, Confederation of Indian Industries (CII).

Analysts are of the view that the present GDP growth pegged at six per cent may go down by two per cent in the current fiscal year if the drought-like situation prevails.

The drought situation will mainly affect those who are dependent on agro products or rural demand. It will not directly affect non-agro firms or industries or fast moving consumer goods used by urban populace.

"Specially those corporates who are dependent on rural demand may get affected," said Rahul Bajaj, chairman, Bajaj Auto Limited, Pune.

Companies will be much affected, as water and power from hydroelectric plants may be available at a higher cost or in controlled quantity owing to a shortfall in rain.

"With a bad monsoon, power will continue to be a problem from our dams. Hydel power will remain a problem," added Bajaj.

Meanwhile, due to the drought-like situation, the Central Government has reacted by permitting duty-free imports of raw sugar and upto one million tonnes of duty-free imports of refined sugar. (ANI)

|Seven bombs recovered along Assam-Meghalaya border|National[Guwahati{Guwahati, Aug 14 (ANI): Police on Friday recovered seven powerful bombs from a forest along the Assam-Meghalaya border before the Independence Day.

Police suspect the explosives were being hidden by United Liberation Front of Asom (ULFA) militants.

The bombs along with detonators were found from the forest in Meghalaya's Ri Bhoi district. (ANI)