The reduced monsoon rainfall and subsequent crop shortages are impacting farmers across drought-hit states, who are struggling with insufficient water for winter crops like corn. This is likely to result in a 15% drop in corn production from this year's record of 55 million metric tonnes. The ethanol industry, which had expanded capacity in anticipation of higher demand, now faces overcapacity and reduced margins due to lower blending rates and government-imposed price cuts. Additionally, food inflation is becoming a politically sensitive issue, with several states, including Uttar Pradesh, set to hold assembly elections next year.