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                  Indian Monsoon Dynamics: An Outlook for 2012‐13 
Introduction:  
The contribution of agriculture in GDP is on consistent decline; it has shrunk from over 25.80 per cent
in 1996 to about 15.0 per cent in 2012 and is further expected to decline because of the lack of focus
on agriculture. This share is on consistent decline owing to lack of focus on agriculture over the years
and shrinking economic support. Indian agriculture still continues to real under the shadow of
monsoon. The lack of irrigation facilities continues to pressure the Indian agriculture even after 62
years of independence, since only 42.4 per cent of sown agricultural land is irrigated. The land of the
country is thus under tremendous pressure to feed over a billion population and provide employment
to about 65 per cent of the total work force. It is therefore very necessary that the monsoon should
commence on proper time and precipitation should be in adequate amount.
Indian agriculture is facing increased pressure on account of consistent population growth (Annual
1.53 per cent) and its extensive reliability on monsoon rains. For farmers, it is highly critical to know
when the onset will occur as this affects the timing of the planting of crops. If rainfall is deficient then
more than two-thirds of the seedlings can die. To prevent this, the prediction systems play a very
important role. Lack of irrigation facilities has thus resulted in decline of agricultural productivity and
slight variation in the amount and timing of monsoon has serious impact on the overall food grain
production of the country. In the recent times the impact of global warming has increased the
uncertainty in both time and amount of rains in the monsoon season. El-Nino and La Nina, a widely
acclaimed weather phenomenon, which alters the climate of more than half the planet, has recently
affected Indian monsoon in both time and amount of precipitation.
El Nino takes place when warmer than usual sea water exists off the coast of South America. El Nino
causes climate effects around the world. It occurs every two to five years and lasts for several months
or even a few years. The major effects of El Nino are increase in average ocean surface water
temperature in the region, heavy rains along the Pacific Coast, disruption of food chain of fish, birds
and sea mammals, tornadoes and thunderstorms in US and reduced number of hurricanes in the
Atlantic.
La Nina is the cooling of water in Pacific Ocean. It occurs every five to eight years and the lasting
period may be few month to couple of years. The major effect of La Nina are cooler sea
temperatures, high atmospheric pressure and drier air, brings up the nutrients from deep water and
proving feast to the marine fishes, birds and mammals, causes snow on the west coast, draught in
South East America and increased number hurricanes in the Atlantic. The significant effect of La Nina
on the Indian climate is not yet noticed, the El Nino affects the climate significantly.
The effect of El Nino on Indian monsoon had been drastic for the year 2009 and is expected to cast
adverse spell on to the monsoon of 2012-13. In the current season the monsoon is expected to be 85
- 88 per cent of the long term average.
In the current season the monsoon set in over Kerala about one week late than its normal date of 1st
June. The monsoon continues to be weak in spite of covering most parts of the country. Rating
agency CRISIL warned that a continuation of this situation in the remaining weeks of this monsoon
season would lead to a drought, maybe severe, in 2012. It termed the situation akin to 2009, when
India faced the worst drought in 30 years.
 
Out of 641 meteorological districts for which data are available, 224 districts (34.95 per cent) of the
meteorological districts received excess/normal rainfall and the remaining 417 districts (65.05 per
cent) received deficient/scanty rainfall during the season (as on 25th July 2012). The operational long
range forecast for the seasonal rainfall over the country as a whole and over four homogeneous
regions except south peninsula have not been accurate. The forecast for August rainfall over the
country as a whole is not expected to be adequate owing to the recent development in the El-Nino
parameters in the Pacific Ocean.
Figure 1. Map of India Showing distribution of Rain Fall in monsoon season (2012-13)




                         Source: Indian Meteorological Department, Government of India

The above period (01 June – 25th July 2012) clearly showed that most of the agricultural areas are not
receiving sufficient rainfall. The Kharif season crop (Paddy, moong, groundnut, red chillies, cotton,
soybean sugarcane and turmeric) have suffered and gross decline in area of each crops have been
reported. The comparative study is been made between the monsoon and agriculture production in
2009 and 2012 to see the impact of monsoon on each crop.



31st August 2012            Trade & Commodity Intelligence Group, NCML                          Page 2 
 
 
The table following shows the comparative amount of precipitation in India and four major regions
for the year 2009 and 2012.
Table1. Region wise comparison of amount of rain received (Actual & LPA in mm)
                                        2009-10 (Till 22nd July)                              2012 – 13 (Till 18th July)
Region
                                   Actual      LPA         % Deviation                   Actual       LPA        % Deviation
Northwest (NW) India                134.3              216.3             ‐38             114.3       187.8            -39
Central India                       410.6              399.4               3             255.4       347.4            -26
South Peninsula                     296.0              313.8              ‐6             218.6       283.1            -23
North East (NE) India               382.7              665.6             ‐43             578.9       613.5             -6
All India                           298.7              368.8             ‐19             256.4       328.1            -22
*LPA is Long Period Average
Source: Indian Meteorological Department, Government of India
From the above table, it is clear that the monsoon of 2012 is developing in the same pattern as that in
the case of monsoon on 2009, which was deficient by about 19 per cent till 18th July. The monsoon is
currently deficient by 22 per cent. The direct impact of the deficiency in rainfall on the crops could be
seen, when the production of major crops in the country in the current year is compared to the
figures of the preceding years.
Table 2. Major crops Acreage in the monsoon season till                            20th July 2012 (Lakh Ha)
          Normal Kharif                                                                                   Change     Change 
Crops                                 23rd July '09     22nd  July'10    20th July'11    20th July'12 
         Area as on date                                                                                 over 2011  over 2009 
Rice         153.37                     157.67            154.2           161.27          144.59          ‐10.34      ‐8.30 
Maize         51.99                      56.93            55.49           52.96           47.84            ‐9.67     ‐15.97 
Tur           20.55                      21.76            21.79           21.35           17.84           ‐16.44     ‐18.01 
Urad          11.92                      12.92            12.16           13.72           10.32           ‐24.78     ‐20.12 
Moong         12.19                      11.01            11.79            11.9            7.72           ‐35.13     ‐29.88 
Soybean       71.88                      81.53            80.96           90.33            86.2            ‐4.57       5.73 
Cotton        90.03                      80.63            97.01           92.45           83.74            ‐9.42       3.86 
Source: Ministry of Agriculture, Govt. of India




The effect of monsoon rains in the food grains output of the country can be clearly seen from the
above table and figure. The monsoon in year 2011 was almost 105.00 per cent to the normal
monsoon in 2011-12 and most of the crops exceeded their estimated targets of production and as a
result we received a record food grain production of above 250 million tonnes for the first time. The
monsoon was declared as failure in the year 2009 by the central government and the effect of
deficient monsoon is clearly visible for the gap between the target and the expected production
levels in major crops. Since similar situation in the monsoon is seen in the recent times, there are


31st August 2012                   Trade & Commodity Intelligence Group, NCML                                          Page 3 
 
 
ample reasons for us to fear for the lower production. The comparative analysis of the sowing pattern
for 2012-13 to different monsoon years since 2009 shows that there has been a significant decline in
the area for different crops. The most significant decline has been noticed in case of moong, which
showed a decline of 35.13 per cent over last year and about 29.88 per cent over the drought year of
2009. Other significant declines were noticed in case of Urad, Tur, Rice and Maize. The low level of
sowing is significant as it has dropped below the levels of 2009, which has already been declared as
one on the worst draught years in the Indian history.
Figure 2. Major Statistics of Foodgrain Production and Stocks




In the above figure, an attempt has been made to find the link between the total foodgrains
                                                                            production, the percentage of
 The available data on rainfall indicate on drought perspective that –      irrigated land and the stocks in
     • 16% of the Country’s total area is drought prone and annually        hand of the government to
         about 50 million people in the country are exposed to the crisis   cope up with the adverse
         of drought;                                                        climatic/ production scenario.
     • A total of 68% of sown area is subject to drought in varying         The data represented in the
         degrees;
                                                                            above graph is between 1972
     • 35% of area receives rainfall between 750-mm - 1125-mm and           and 2010. The Red Ovals in the
         is drought prone;
                                                                            plot marks the drought year (as
     • Most of drought prone areas lie in the arid (19.6%), semi-arid
         (37%) and sub-humid (21%) areas of the country that occupy         declared by All India Summer
         77.6% of its total land area of 329 million hectares.              Monsoon Rainfall, Department
     • Annual Average Rainfall is 1160 mm in India. However, 85%            of Agriculture & Cooperation,
         is concentrated in 100-120 days (SW Monsoon)                       Ministry      of      Agriculture,
     • 33%of area receives less than 750-mm rainfall and is chronically     Government of India). The
         drought prone;
                                                                            Identified drought years are
     • 21% area receives less than 750 mm rainfall (large area of           1972, 1974, 1982, 1985, 1986,
         Peninsular and Rajasthan)
     • Rainfall is erratic in 4 out of 10 years.                            1987, 2002 and 2009. In almost
     • Irrigation Potential is 140 Million Ha (76 MHa Surface + 64 MHa      all the drought years the
         Groundwater)                                                       production of foodgrains had
     • Depletion of Ground water and limitation of surface water imply      come down. The percentage
         that not all net sown area is amenable to irrigation.              irrigated land in the country is
     • Per Capita Water availability is steadily declining due to increase  almost constant (about 45 per
         in population, rapid industrialization, urbanization, cropping     cent) for the last 10 to 12 years.
         intensity and declining ground water level. Problems are likely to
         aggravate.
                                                                            The foodgrains stocks in the
     • Net Result – Inevitability of Drought in Some Part or Other.         hand of the government has
                                                                            also shown declining trend in
                                                                            the corresponding draught
                                                                            years.
The status of the foodgrain production in the drought years in comparison to the preceding normal
year on monsoon is shown in the following table.

31st August 2012             Trade & Commodity Intelligence Group, NCML                               Page 4 
 
 
Table: 2. Performance of foodgrains production in draught in comparison to non-drought years (%)

Drought Years         Area        % Irrigated Land       Production   Procurement   Offtake    Stocks
1972-73               ‐2.80               ‐3.62             ‐8.39 
1974-75               ‐4.51                7.55             ‐4.85       ‐52.71       ‐2.01      ‐5.99 
1982-83               ‐3.23                3.90             ‐2.92         8.35      13.86        0.27 
1984-85               ‐3.54                3.13             ‐4.69        17.00      ‐13.43      29.62 
1985-86                1.05               ‐1.59              3.26         4.26      30.28       ‐2.17 
1986-87               ‐0.64                3.68             ‐4.89        ‐0.35        1.34      ‐6.25 
2002-03               ‐7.83               ‐0.47            ‐21.78        ‐9.78      37.20      ‐55.50 
2009-10*               0.15               ‐1.11             ‐8.13       ‐18.88      ‐44.16      26.65 
 Source: Based on figures from Ministry of Agriculture

From the above table it can be inferred that the production of foodgrains has declined in the drought
year. The growth of the irrigated area has been evenly paced with marginal dips in the drought years.
The pressure has been noticed in case of the procurement of foodgrains by the government agencies
which have declined in almost every drought. The Offtake from government agencies have shown a
consistent increase during the drought years. The major reason identified for the drought in the
country between 1972- 2002 is been the El-Nino (the basic description of which has been given in the
earlier text). Important geological facts regarding Indian drought has been mentioned in the following
text box which we feel is of prime importance if we have to discuss the overall performance of the
agriculture sector.
The pattern and the progress of monsoon and its comparison to the total foodgrain production over
the years in the country could be analysed from the following figure.
Figure 3. Progress of Foodgrain Production & Developments in Monsoon Rain Distribution




The food production trend over the years have been upside barring few down’s due to weather woes,
which is positive for the country. The major slump in the production was seen in 2002-03 which was a
severe drought year. The same trend was noticed for the year 2009-10. The point of concern is the
distribution of rainfall. From the above figure it is evident that the number of districts with normal to
excess rainfall is declining as the years are passing. If the same trend continues for another decade or
so the threat of drought occurring in the country would increase immensely and hence only 45 per
cent of the total cultivated area has good irrigation facilities, the Indian agriculture may be heading
towards much stiffer challenges.

31st August 2012                 Trade & Commodity Intelligence Group, NCML                      Page 5 
 
 
         Major Weather forecast for 2012-13
            • El Niño, a periodic warming of Pacific Ocean waters, takes two forms — the eastern Pacific El
              Niño and its more severe central Pacific counterpart, which emerged in the late twentieth century
              and is already known to cause drought.
            • Records of El Ninos in the 20th century have shown that over the past 100 years there may have
              been at least 23 El Ninos and 15 La Ninas. Out of the most powerful 10 El Ninos of the last
              century, four of the most damaging El Ninos have occurred since the year 1980 - the first year of
              global warming caused by the Cycle of the Sun (1980-2016.)
            • NOAA and other global climatologists continue to see rising temperatures in the eastern Pacific,
              now about 1-degree Celsius above normal, with receding trade winds.
            • The Sun is beginning to pick up activity, a sure sign of coming climate changes on Earth. In 2008,
              out of the year's 365 days, the Sun was blank (no sunspots) 73% of the year, about 266 days. The
              Sun has been in the longest known solar minimum recorded since 1901 and 1913. This has led to
              the unprecedented warming of the ocean surface.
            • This ENSO is expected to dominate the world's weather events through all of 2010, into 2011 and
              2012, via very strong tele-connections when the world can expect increased flooding from
              powerful storms with resulting mudslides from torrential rains to the coasts of Ecuador and Peru,
              but also witnessing droughts in the southern to mid-western United States, and severe droughts
              in the counties of Australia, China, India, Indonesia, India, Philippines, and Africa.
            • During June 2012, ENSO-neutral continued as reflected in both the oceanic and atmospheric
              anomalies. However, positive equatorial Pacific sea surface temperature (SST) anomalies have
              grown, exceeding +0.5oC across the eastern Pacific Ocean by the end of June.
            • Most of the set of dynamical and statistical model predictions issued during late June and early
              July 2012 predict development of El Nino conditions around the July-September season,
              continuing through the remainder of 2012.
            • The oceanic heat content anomalies (average temperature in the upper 300m of the ocean)
              increased during June, as above-average sub-surface temperatures became more entrenched in
              the equatorial Pacific. This warming was consistent with a weakening of the low-level trade winds
              across the east-central equatorial Pacific, along with a weakening of the persistent pattern of
              enhanced convection near Papua New Guinea. The observations are consistent with ENSO-
              neutral, but reflect a likely progression towards El Niño.
            • The dynamical models, including the NCEP Climate Forecast System (CFS), largely favor the
              development of El Niño by July-September 2012, while the majority of statistical models predict
              ENSO-neutral through the rest of 2012.
            • The past fortnight has seen climate indicators ease slightly, with all showing values near the
              threshold for an El Niño event. While indicators such as the Southern Oscillation Index (SOI), sea
              surface temperatures and trade winds have eased over the past two weeks, such short-term
              fluctuations are common and to be expected, and indicators still clearly remain near El Niño
              thresholds (Commonwealth of Australia , Bureau of Meteorology).

            Thus we expect that the Indian economy is to face much stiffer challenges in the years to come on
            the climate and weather front. The present scenario is not so encouraging. With the overall shortfall
            of rainfall by about 22.00 per cent and forecast of much lesser rains for the rest of the season India
            would be heading for tougher times. The dependence on the monsoon rains for keeping control
            over the food grains inflation may not prove too judicious. In the preview of the current study, it is
            strongly recommended that India should prepare emergency plans in advance and store supplies of
            essential foodgrains to cope up with the climatic challenges ahead.
                                                                                                                                                                                                                        Digitally signed by Dr. Hanish Kumar Sinha

                                                                                                                                                                          Dr. Hanish Kumar Sinha                        DN: cn=Dr. Hanish Kumar Sinha, c=IN, o=National Collateral Management Services Ltd,
                                                                                                                                                                                                                        ou=Head: Trade and Commodity Intelligence Group, email=hanish.s@ncmsl.com
                                                                                                                                                                                                                        Date: 2012.08.03 13:23:55 +05'30'
Disclaimer:
This consultancy report has been prepared by National Collateral Management Services Limited (NCMSL) for the sole benefit of the addressee. Neither the report nor any part of the report shall be provided to third parties without the written consent of NCMSL. Any
third party in possession of the report may not rely on its conclusions without the written consent of NCMSL.
NCMSL has exercised reasonable care and skill in preparation of this consultancy report but has not independently verified information provided by others. No other warranty, express or implied, is made in relation to this report. Therefore NCMSL assumes no
liability for any loss resulting from errors, omissions or misrepresentations made by others.
Any recommendations, opinions and findings stated in this report are based on circumstances and facts as they existed at the time of preparation of this report. Any change in circumstances and facts on which this report is based may adversely affect any
recommendations, opinions or findings contained in this report.
© National Collateral Management Services Limited (NCMSL) 2012




         31st August 2012                                                     Trade & Commodity Intelligence Group, NCML                                                                                                                                                          Page 6 
          

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Indian monsoon dynamics update 2012 13

  • 1.   Indian Monsoon Dynamics: An Outlook for 2012‐13  Introduction:   The contribution of agriculture in GDP is on consistent decline; it has shrunk from over 25.80 per cent in 1996 to about 15.0 per cent in 2012 and is further expected to decline because of the lack of focus on agriculture. This share is on consistent decline owing to lack of focus on agriculture over the years and shrinking economic support. Indian agriculture still continues to real under the shadow of monsoon. The lack of irrigation facilities continues to pressure the Indian agriculture even after 62 years of independence, since only 42.4 per cent of sown agricultural land is irrigated. The land of the country is thus under tremendous pressure to feed over a billion population and provide employment to about 65 per cent of the total work force. It is therefore very necessary that the monsoon should commence on proper time and precipitation should be in adequate amount. Indian agriculture is facing increased pressure on account of consistent population growth (Annual 1.53 per cent) and its extensive reliability on monsoon rains. For farmers, it is highly critical to know when the onset will occur as this affects the timing of the planting of crops. If rainfall is deficient then more than two-thirds of the seedlings can die. To prevent this, the prediction systems play a very important role. Lack of irrigation facilities has thus resulted in decline of agricultural productivity and slight variation in the amount and timing of monsoon has serious impact on the overall food grain production of the country. In the recent times the impact of global warming has increased the uncertainty in both time and amount of rains in the monsoon season. El-Nino and La Nina, a widely acclaimed weather phenomenon, which alters the climate of more than half the planet, has recently affected Indian monsoon in both time and amount of precipitation. El Nino takes place when warmer than usual sea water exists off the coast of South America. El Nino causes climate effects around the world. It occurs every two to five years and lasts for several months or even a few years. The major effects of El Nino are increase in average ocean surface water temperature in the region, heavy rains along the Pacific Coast, disruption of food chain of fish, birds and sea mammals, tornadoes and thunderstorms in US and reduced number of hurricanes in the Atlantic. La Nina is the cooling of water in Pacific Ocean. It occurs every five to eight years and the lasting period may be few month to couple of years. The major effect of La Nina are cooler sea temperatures, high atmospheric pressure and drier air, brings up the nutrients from deep water and proving feast to the marine fishes, birds and mammals, causes snow on the west coast, draught in South East America and increased number hurricanes in the Atlantic. The significant effect of La Nina on the Indian climate is not yet noticed, the El Nino affects the climate significantly. The effect of El Nino on Indian monsoon had been drastic for the year 2009 and is expected to cast adverse spell on to the monsoon of 2012-13. In the current season the monsoon is expected to be 85 - 88 per cent of the long term average. In the current season the monsoon set in over Kerala about one week late than its normal date of 1st June. The monsoon continues to be weak in spite of covering most parts of the country. Rating agency CRISIL warned that a continuation of this situation in the remaining weeks of this monsoon season would lead to a drought, maybe severe, in 2012. It termed the situation akin to 2009, when India faced the worst drought in 30 years.
  • 2.   Out of 641 meteorological districts for which data are available, 224 districts (34.95 per cent) of the meteorological districts received excess/normal rainfall and the remaining 417 districts (65.05 per cent) received deficient/scanty rainfall during the season (as on 25th July 2012). The operational long range forecast for the seasonal rainfall over the country as a whole and over four homogeneous regions except south peninsula have not been accurate. The forecast for August rainfall over the country as a whole is not expected to be adequate owing to the recent development in the El-Nino parameters in the Pacific Ocean. Figure 1. Map of India Showing distribution of Rain Fall in monsoon season (2012-13) Source: Indian Meteorological Department, Government of India The above period (01 June – 25th July 2012) clearly showed that most of the agricultural areas are not receiving sufficient rainfall. The Kharif season crop (Paddy, moong, groundnut, red chillies, cotton, soybean sugarcane and turmeric) have suffered and gross decline in area of each crops have been reported. The comparative study is been made between the monsoon and agriculture production in 2009 and 2012 to see the impact of monsoon on each crop. 31st August 2012  Trade & Commodity Intelligence Group, NCML  Page 2   
  • 3.   The table following shows the comparative amount of precipitation in India and four major regions for the year 2009 and 2012. Table1. Region wise comparison of amount of rain received (Actual & LPA in mm) 2009-10 (Till 22nd July) 2012 – 13 (Till 18th July) Region Actual LPA % Deviation Actual LPA % Deviation Northwest (NW) India 134.3  216.3  ‐38  114.3  187.8  -39 Central India 410.6  399.4  3  255.4  347.4  -26 South Peninsula 296.0  313.8  ‐6  218.6  283.1  -23 North East (NE) India 382.7  665.6  ‐43  578.9  613.5  -6 All India 298.7  368.8  ‐19  256.4  328.1  -22 *LPA is Long Period Average Source: Indian Meteorological Department, Government of India From the above table, it is clear that the monsoon of 2012 is developing in the same pattern as that in the case of monsoon on 2009, which was deficient by about 19 per cent till 18th July. The monsoon is currently deficient by 22 per cent. The direct impact of the deficiency in rainfall on the crops could be seen, when the production of major crops in the country in the current year is compared to the figures of the preceding years. Table 2. Major crops Acreage in the monsoon season till 20th July 2012 (Lakh Ha) Normal Kharif  Change  Change  Crops  23rd July '09  22nd  July'10  20th July'11  20th July'12  Area as on date  over 2011  over 2009  Rice  153.37  157.67  154.2  161.27  144.59  ‐10.34  ‐8.30  Maize  51.99  56.93  55.49  52.96  47.84  ‐9.67  ‐15.97  Tur  20.55  21.76  21.79  21.35  17.84  ‐16.44  ‐18.01  Urad  11.92  12.92  12.16  13.72  10.32  ‐24.78  ‐20.12  Moong  12.19  11.01  11.79  11.9  7.72  ‐35.13  ‐29.88  Soybean  71.88  81.53  80.96  90.33  86.2  ‐4.57  5.73  Cotton  90.03  80.63  97.01  92.45  83.74  ‐9.42  3.86  Source: Ministry of Agriculture, Govt. of India The effect of monsoon rains in the food grains output of the country can be clearly seen from the above table and figure. The monsoon in year 2011 was almost 105.00 per cent to the normal monsoon in 2011-12 and most of the crops exceeded their estimated targets of production and as a result we received a record food grain production of above 250 million tonnes for the first time. The monsoon was declared as failure in the year 2009 by the central government and the effect of deficient monsoon is clearly visible for the gap between the target and the expected production levels in major crops. Since similar situation in the monsoon is seen in the recent times, there are 31st August 2012  Trade & Commodity Intelligence Group, NCML  Page 3   
  • 4.   ample reasons for us to fear for the lower production. The comparative analysis of the sowing pattern for 2012-13 to different monsoon years since 2009 shows that there has been a significant decline in the area for different crops. The most significant decline has been noticed in case of moong, which showed a decline of 35.13 per cent over last year and about 29.88 per cent over the drought year of 2009. Other significant declines were noticed in case of Urad, Tur, Rice and Maize. The low level of sowing is significant as it has dropped below the levels of 2009, which has already been declared as one on the worst draught years in the Indian history. Figure 2. Major Statistics of Foodgrain Production and Stocks In the above figure, an attempt has been made to find the link between the total foodgrains production, the percentage of The available data on rainfall indicate on drought perspective that –  irrigated land and the stocks in • 16% of the Country’s total area is drought prone and annually hand of the government to about 50 million people in the country are exposed to the crisis cope up with the adverse of drought; climatic/ production scenario. • A total of 68% of sown area is subject to drought in varying The data represented in the degrees; above graph is between 1972 • 35% of area receives rainfall between 750-mm - 1125-mm and and 2010. The Red Ovals in the is drought prone; plot marks the drought year (as • Most of drought prone areas lie in the arid (19.6%), semi-arid (37%) and sub-humid (21%) areas of the country that occupy declared by All India Summer 77.6% of its total land area of 329 million hectares. Monsoon Rainfall, Department • Annual Average Rainfall is 1160 mm in India. However, 85% of Agriculture & Cooperation, is concentrated in 100-120 days (SW Monsoon) Ministry of Agriculture, • 33%of area receives less than 750-mm rainfall and is chronically Government of India). The drought prone; Identified drought years are • 21% area receives less than 750 mm rainfall (large area of 1972, 1974, 1982, 1985, 1986, Peninsular and Rajasthan) • Rainfall is erratic in 4 out of 10 years. 1987, 2002 and 2009. In almost • Irrigation Potential is 140 Million Ha (76 MHa Surface + 64 MHa all the drought years the Groundwater) production of foodgrains had • Depletion of Ground water and limitation of surface water imply come down. The percentage that not all net sown area is amenable to irrigation. irrigated land in the country is • Per Capita Water availability is steadily declining due to increase almost constant (about 45 per in population, rapid industrialization, urbanization, cropping cent) for the last 10 to 12 years. intensity and declining ground water level. Problems are likely to aggravate. The foodgrains stocks in the • Net Result – Inevitability of Drought in Some Part or Other. hand of the government has also shown declining trend in the corresponding draught years. The status of the foodgrain production in the drought years in comparison to the preceding normal year on monsoon is shown in the following table. 31st August 2012  Trade & Commodity Intelligence Group, NCML  Page 4   
  • 5.   Table: 2. Performance of foodgrains production in draught in comparison to non-drought years (%) Drought Years Area % Irrigated Land Production Procurement Offtake Stocks 1972-73 ‐2.80  ‐3.62  ‐8.39  1974-75 ‐4.51  7.55  ‐4.85  ‐52.71  ‐2.01  ‐5.99  1982-83 ‐3.23  3.90  ‐2.92  8.35  13.86  0.27  1984-85 ‐3.54  3.13  ‐4.69  17.00  ‐13.43  29.62  1985-86 1.05  ‐1.59  3.26  4.26  30.28  ‐2.17  1986-87 ‐0.64  3.68  ‐4.89  ‐0.35  1.34  ‐6.25  2002-03 ‐7.83  ‐0.47  ‐21.78  ‐9.78  37.20  ‐55.50  2009-10* 0.15  ‐1.11  ‐8.13  ‐18.88  ‐44.16  26.65  Source: Based on figures from Ministry of Agriculture From the above table it can be inferred that the production of foodgrains has declined in the drought year. The growth of the irrigated area has been evenly paced with marginal dips in the drought years. The pressure has been noticed in case of the procurement of foodgrains by the government agencies which have declined in almost every drought. The Offtake from government agencies have shown a consistent increase during the drought years. The major reason identified for the drought in the country between 1972- 2002 is been the El-Nino (the basic description of which has been given in the earlier text). Important geological facts regarding Indian drought has been mentioned in the following text box which we feel is of prime importance if we have to discuss the overall performance of the agriculture sector. The pattern and the progress of monsoon and its comparison to the total foodgrain production over the years in the country could be analysed from the following figure. Figure 3. Progress of Foodgrain Production & Developments in Monsoon Rain Distribution The food production trend over the years have been upside barring few down’s due to weather woes, which is positive for the country. The major slump in the production was seen in 2002-03 which was a severe drought year. The same trend was noticed for the year 2009-10. The point of concern is the distribution of rainfall. From the above figure it is evident that the number of districts with normal to excess rainfall is declining as the years are passing. If the same trend continues for another decade or so the threat of drought occurring in the country would increase immensely and hence only 45 per cent of the total cultivated area has good irrigation facilities, the Indian agriculture may be heading towards much stiffer challenges. 31st August 2012  Trade & Commodity Intelligence Group, NCML  Page 5   
  • 6.   Major Weather forecast for 2012-13 • El Niño, a periodic warming of Pacific Ocean waters, takes two forms — the eastern Pacific El Niño and its more severe central Pacific counterpart, which emerged in the late twentieth century and is already known to cause drought. • Records of El Ninos in the 20th century have shown that over the past 100 years there may have been at least 23 El Ninos and 15 La Ninas. Out of the most powerful 10 El Ninos of the last century, four of the most damaging El Ninos have occurred since the year 1980 - the first year of global warming caused by the Cycle of the Sun (1980-2016.) • NOAA and other global climatologists continue to see rising temperatures in the eastern Pacific, now about 1-degree Celsius above normal, with receding trade winds. • The Sun is beginning to pick up activity, a sure sign of coming climate changes on Earth. In 2008, out of the year's 365 days, the Sun was blank (no sunspots) 73% of the year, about 266 days. The Sun has been in the longest known solar minimum recorded since 1901 and 1913. This has led to the unprecedented warming of the ocean surface. • This ENSO is expected to dominate the world's weather events through all of 2010, into 2011 and 2012, via very strong tele-connections when the world can expect increased flooding from powerful storms with resulting mudslides from torrential rains to the coasts of Ecuador and Peru, but also witnessing droughts in the southern to mid-western United States, and severe droughts in the counties of Australia, China, India, Indonesia, India, Philippines, and Africa. • During June 2012, ENSO-neutral continued as reflected in both the oceanic and atmospheric anomalies. However, positive equatorial Pacific sea surface temperature (SST) anomalies have grown, exceeding +0.5oC across the eastern Pacific Ocean by the end of June. • Most of the set of dynamical and statistical model predictions issued during late June and early July 2012 predict development of El Nino conditions around the July-September season, continuing through the remainder of 2012. • The oceanic heat content anomalies (average temperature in the upper 300m of the ocean) increased during June, as above-average sub-surface temperatures became more entrenched in the equatorial Pacific. This warming was consistent with a weakening of the low-level trade winds across the east-central equatorial Pacific, along with a weakening of the persistent pattern of enhanced convection near Papua New Guinea. The observations are consistent with ENSO- neutral, but reflect a likely progression towards El Niño. • The dynamical models, including the NCEP Climate Forecast System (CFS), largely favor the development of El Niño by July-September 2012, while the majority of statistical models predict ENSO-neutral through the rest of 2012. • The past fortnight has seen climate indicators ease slightly, with all showing values near the threshold for an El Niño event. While indicators such as the Southern Oscillation Index (SOI), sea surface temperatures and trade winds have eased over the past two weeks, such short-term fluctuations are common and to be expected, and indicators still clearly remain near El Niño thresholds (Commonwealth of Australia , Bureau of Meteorology). Thus we expect that the Indian economy is to face much stiffer challenges in the years to come on the climate and weather front. The present scenario is not so encouraging. With the overall shortfall of rainfall by about 22.00 per cent and forecast of much lesser rains for the rest of the season India would be heading for tougher times. The dependence on the monsoon rains for keeping control over the food grains inflation may not prove too judicious. In the preview of the current study, it is strongly recommended that India should prepare emergency plans in advance and store supplies of essential foodgrains to cope up with the climatic challenges ahead. Digitally signed by Dr. Hanish Kumar Sinha Dr. Hanish Kumar Sinha DN: cn=Dr. Hanish Kumar Sinha, c=IN, o=National Collateral Management Services Ltd, ou=Head: Trade and Commodity Intelligence Group, email=hanish.s@ncmsl.com Date: 2012.08.03 13:23:55 +05'30' Disclaimer: This consultancy report has been prepared by National Collateral Management Services Limited (NCMSL) for the sole benefit of the addressee. Neither the report nor any part of the report shall be provided to third parties without the written consent of NCMSL. Any third party in possession of the report may not rely on its conclusions without the written consent of NCMSL. NCMSL has exercised reasonable care and skill in preparation of this consultancy report but has not independently verified information provided by others. No other warranty, express or implied, is made in relation to this report. Therefore NCMSL assumes no liability for any loss resulting from errors, omissions or misrepresentations made by others. Any recommendations, opinions and findings stated in this report are based on circumstances and facts as they existed at the time of preparation of this report. Any change in circumstances and facts on which this report is based may adversely affect any recommendations, opinions or findings contained in this report. © National Collateral Management Services Limited (NCMSL) 2012 31st August 2012  Trade & Commodity Intelligence Group, NCML  Page 6