InvestorQ : What is the latest progress on the monsoon front? Are the rains on time and what does that mean for stocks like M&M, UPL and Kaveri Seeds?
Dhwani Mehta made post

What is the latest progress on the monsoon front? Are the rains on time and what does that mean for stocks like M&M, UPL and Kaveri Seeds?

Answer
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Khushi Patel answered.
3 months ago


The Southwest monsoon touched Kerala coast nearly 2 days ahead of schedule even as the IMD upgraded its forecast for 2020 rainfall to 102% of the Long Period Average (LPA). Normally, a rainfall of 96% to 104% is considered to be normal rainfall. In terms of region wise spread the North East and East are expecting below normal while the agricultural bowls of Punjab, Haryana, UP and Delhi are projected to get “above normal” rainfall. Even Central India and South India are expected to get above normal rainfall. The IMD classifies rainfall between 96-104% of LPA as normal; 104-110% as above normal rainfall and 90-95% categorized as below normal. The 4-month monsoon season from June to September accounts for 75%. The timely arrival of rainfall is as important as the quantum of rainfall. Last year, the monsoon rains were below normal but late rains in September and October resulted in a much better Rabi crop.