India Faces Weakest Monsoon Since 2015 Amid El Niño
The Government of India slashed import taxes on food staples after the weakest monsoon since 2015 triggered high food inflation and energy shortages.
India recorded its weakest monsoon season since 2015, with rainfall from June to September falling 12.6% below the long-term average. The Government of India responded to the resulting drought by slashing import taxes on edible oils and allowing duty-free raw sugar purchases to stabilize domestic prices before the festival season, as food inflation hit a yearly high of 5.95% in August.
Strong El Niño conditions in the equatorial Pacific Ocean drove the rainfall deficit, which depleted reservoirs and threatened the production of soybeans, sugar cane, and rice. The drought also impacted the energy sector, leading to a fifth consecutive monthly decline in hydropower generation and forcing an increased reliance on coal plants.
The India Meteorological Department warns that rainfall will likely remain below normal across most of the country through December. The agency noted that El Niño conditions will continue to strengthen and are expected to peak in November.
