Agriculture in India is heavily dependent on monsoon rains, and deficits can lead to reduced crop yields and lower farm incomes. For example, the rabi sowing season recently saw a 37% year-on-year decline in coverage, with rice sowing down by 3.5%. Reservoir levels were also 18% below normal, further exacerbating water shortages. States like Andhra Pradesh, Karnataka, and Rajasthan have declared droughts, highlighting the severity of the situation. These conditions can strain rural households and affect their ability to repay loans.