Weak Monsoon Reduces Farm Input Demand in India
Weak Monsoon Reduces Farm Input Demand in India
IN · Published Sep 23, 2026
• India's June-September monsoon, which contributes nearly 70% of the country's annual rainfall, has been erratic and significantly below normal this year.
• As of 21 September 2026, monsoon rainfall was reported to be 15% below the average, with September and August recording deficits of 18% and 16%, respectively, according to Barclays.

Impact & Risks

The below-normal monsoon is raising concerns about crop yields, rural incomes, and food inflation in India, the world's third-largest economy. Farmers, uncertain about achieving full harvests, are reducing their use of agricultural inputs, which could further affect productivity. The weak demand for farm inputs is also impacting companies in the agrochemical and seed sectors, with firms like Rallis India, Dhanuka Agritech, and Godrej Agrovet reporting lower sales. This situation could exacerbate challenges in the agricultural sector, potentially leading to higher food prices and economic strain in rural areas.

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