Monetary Policy- Easing expected to happen later this financial year.
The India meteorological department has stated that day temperatures are likely to be above normal by 0.5 degree Celsius, reports Sanjeeb Mukherjee.
Trend could continue on downward revision in winter harvests.
The average global temperature for July 2015 was the highest for any month since record keeping began in 1880, the National Oceanic and Atmospheric Administration said.
A normal monsoon will augur well for the country's agriculture sector and boost crop yields. However, good rains - and surplus crops - could also depress prices, hurting farm income, unless adequate steps are taken.
Dairy, sugar prices fall sharply, despite El Nio fears
The official India Meteorological Department (IMD) and the private Skymet Weather Services have made widely divergent monsoon forecasts.
Growth in cities has lagged villages as consumers troubled by persistently high inflation have cut spending in the past two years.
'Urbanisation results in heavy rainfall events.'
"The main risk stems from the uncertainty surrounding the outcome of the south west monsoon in view of the rising probability of an El Nio event around July-August, and its implications for food inflation," RBI said, as it kept the status quo on key interest rate for the third time in a row.
The IMD on its part is sticking to its forecast of July rainfall.
For many farmers, though, a bumper harvest isn't good news, as they have been forced to sell their produce, particularly pulses, dirt cheap.
Skymet is credited with correctly predicting the 2009 drought.
India remains one of the most over-owned market in Asia.
A third of FMCG sales and half of motorcycle sales come from the hinterlands
According to Skymet Weather, the initial surge in the Monsoon rains can be attributed to the transition of El Nino into the neutral phase.
Monsoon revival over weekend likely, but second-half rainfall may be muted. If the rains become scarce after mid-August, the standing kharif crops might be impacted
Officials said good rain in August - though it might not improve acreages much for most crops except urad, moong, and paddy - would help in improving yields in the crops already planted.
The India Meteorological Department's first monsoon forecast for this year would have gladdened many a heart with the hope of plentiful rain, after two drought years.
They are worried at more than one forecast of a possibly weak monsoon, reports Dilip Kumar Jha.
IMD will present its month-wise and region-wise forecast in June.
If El Nino condition affects the monsoons, as is being forecast by foreign agencies, it can slow down the economy to 5.2 per cent next fiscal from a projected 6 per cent.
This could have huge implications for agriculture, food prices, supply and overall economic growth of the country
Goldman Sachs forecasts real GDP growth to accelerate to 7.9 per cent in FY17 from a projected 7.5 per cent in FY16.
Skymet is the first major Indian weather forecasting agency to have issued a monsoon forecast for 2016.
Shortage of seeds, threat of El Nino expected to restrict sowing.
The monetary authority said it was worried on three fronts with regard to inflation as well as the economy.
The World Meteorological Organisation assessment which was released on Monday in Marrakech, Morocco said that 2016's global temperatures are approximately 1.2 C above pre-industrial levels.
Metal stocks fell on Tuesday, with the S&P BSE metal index sliding 2.8 per cent compared to the 0.64 per cent fall in the benchmark S&P BSE Sensex
Financials ended mixed despite the status-quo on key rates by the RBI. SBI, ICICI Bank and Axis Bank ended up 0.4-2.5% each.
Religion is but one trait where intolerance manifests itself. We come across 'chosen' races, communities, political ideologies, economic systems, all lending themselves to discriminatory arrangements, which trample the rights of those considered beyond the pale of whatever is the favoured calling.
The IMD has said temperatures in most parts of the country from March to May would be 'above normal'.
While the IMD had forecast a 'normal' monsoon for the entire season, Skymet stated that rain this year would be 'below normal', report Sanjeeb Mukherjee and Sahil Makkar.
Drought fears will subside if the momentum generated is maintained in August.
Monsoon is expected to cover central and eastern India after Tuesday.
We need to invest in the science of monsoons and weather forecasting.
There's some amazing stuff beneath the water. For proof, look no further than the annual Ocean Art Underwater Photo Competition.
The IMD has fancy weather-monitoring radars in the name of providing better forecasts.
RBI governor Raghuram Rajan is likely to cut rates in next monetary policy.
A number of significant linkages between rainfall and economic outcomes have policy implications.
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