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Focus Story

        Monsoon                                                                                                                 The correlation between    lowest correlation (table 1).   the SW monsoon season   Breaking down the data

                                                                                                                                                                                      plays a crucial role in
                                                                                                                                                           Among the major kharif
                                                                                                                                rainfall and major kharif crops
                                                                                                                                                                                                                 further, a sub-sample analysis
                                                                                                                                                                                      replenishing soil moisture
                                                                                                                                production stands out to be
                                                                                                                                                           crops, rice has the strongest
                                                                                                                                                                                                                 is conducted, spanning three
                                                                                                                                                                                      levels and enhancing reservoir
                                                                                                                                                           correlation with monsoon
                                                                                                                                the highest during the month
                                                                                                                                                                                                                 distinct periods: 1950-1980,
                                                                                                                                of July due to the bulk of
                                                                                                                                                                                      capacities. Therefore, SW
                                                                                                                                                           rainfall (R²=0.59).
        and                                                                                                                     sowing activities being    Interestingly, wheat, a rabi   monsoon rainfall holds   1980-2000, and 2000-2022
                                                                                                                                                                                                                 (see table A.2 for detailed
                                                                                                                                                                                      significance for not only kharif
                                                                                                                                concentrated during this
                                                                                                                                                                                                                 results). Notably, the influence
                                                                                                                                                                                      but for the rabi crop as well.
                                                                                                                                                           crop, also has a significant
                                                                                                                                period, whereas rains during
                                                                                                                                June, the beginning of
                                                                                                                                                                                                                 of irrigation on overall
                                                                                                                                                           positive correlation with
                                                                                                                                                           monsoon rains. Rainfall during
                                                                                                                                monsoon season, displays the
                                                                                                                                                                                                                 foodgrain production has
        Agriculture                                                                                                                  Table 1: Correlation between Rainfall and Production of Major Kharif Crops  grown, while the impact of
                                                                                                                                                                                                                 rainfall has gradually waned. In
                                                                                                                                                                                                                 fact, recent years have seen
                                                                                                                                                                                                                 rainfall not exerting any
                                                                                                                                                                        Rainfall
                                                                                                                                                                                                                 significant influence on
                                                                                                                                                                                                                 foodgrain production.
                                                                                                                                  Production        June       July     August    September  Total (Jun-Sep)
        Historical Perspective                                                                                                    Foodgrain         0.18       0.53      0.36       0.45        0.64             This shows that while
                                                                                                                                                                                                                 agriculture production has
        and Future Outlook                                                                                                        Foodgrain: Kharif  0.16      0.51      0.34       0.48        0.63             historically relied heavily on
                                                                                                                                                                                                                 monsoon rainfall, the rise in
                                                                                                                                                                                                                 access to irrigation facilities
                                                                                                                                  Rice              0.26       0.46      0.35       0.36        0.59             has, over the years, reduced
                                                                                                                                                                                                                 the dependence of agriculture
                                                                                                                                                                                                                 on monsoons. This trend is
                                                                                                                                  Coarse cereals
                                                                                                                                                    0.01
                                                                                                                                                                                    0.30
                                                                                                                                                                         0.34
                                                                                                                                                                                                0.41
                                                                                                                                                               0.33
        S  outh-west (SW) monsoon,                            Figure 1: Rainfall and Kharif Production                                                                                                           particularly visible in the case
                                                                                                                                                                                                                 of rice, which has
           spanning from June to
        September is the predominant   350.0                                                                                      Pulses            0.03       0.43      0.28       0.35        0.46             progressively shifted towards
        contributor to more than 70    300.0                                                                                                                                                                     greater reliance on irrigation,
        per cent of nation’s total     250.0                                                                                                                                                                     while rainfall no longer
        annual precipitation. This     200.0                                                                                      Oilseeds (Groundnut)  0.18   0.43      0.23       0.36        0.50             influences its production in
        rainfall season coincides with                                                                                                                                                                           the recent years.
        the Kharif crop growing        150.0                                                                                      Wheat             0.15       0.31      0.24       0.20        0.37
        period during which major      100.0
        crops such as rice, pulses,     50.0                                                                                                                                                                     However, despite the
        oilseeds, cotton, jute, and                                                           Rainfall (mm)                       Source: CII Research                                                           improvement in irrigation
        sugarcane are cultivated. These   0.0                                                 Kharif production (mn ton)                                                                                         infrastructure, the extent of
        Kharif crops, accounting for        1967  1969  1971  1973  1975  1977  1979  1981  1983  1985  1987  1989  1991  1993  1995  1997  1999  2001  2003  2005  2007  2009  2011  2013  2015  2017  2019  2021  land covered under irrigation
        about 63 per cent of total                       Source: IMD and Department of Agriculture & Farmers Welfare                                       Advancements in irrigation   trends from 1950 to 2022   is still low, especially for
        cropped area, contribute over                                                                                            THE DEPENDENCE OF                                                               coarse cereals, pulses, and
        55 per cent to the nation’s   Figure 2 captures the   kharif production. Monsoon   indicating that inadequate            FOODGRAIN                 infrastructure can significantly   reveals a strong and positive
        total foodgrain output.                                                                                                  PRODUCTION ON             reduce the reliance of     impact of irrigation and   oilseeds (figure 3). Among
                                   correlation between monsoon   rainfall is closely linked to   rainfall can have a detrimental                           agriculture on rainfall. Despite   rainfall on the output of   coarse cereals, jowar has
                                   rainfall (per cent deviation   foodgrain production (0.63)   effect on production.            RAINFALL HAS
        Agricultural production in   from LPA) and foodgrain and   and kharif production (0.64),                                 DIMINISHED, WHILE         the considerable development   foodgrains and major kharif   shown an increasing
        India remains predominantly                                                                                              RELIANCE ON               of irrigation facilities over the   crops, including rice, jowar,   dependence on rainfall over
        rainfed, hence, rainfall                                                                                                 IRRIGATION HAS            years, the extent of land   maize, pulses, and oilseeds    the years, with the relatively
                                                                                                                                                                                                          1
        variability results in changes in                Figure 2: Correlation between Rainfall and Production                   INCREASED OVERTIME        covered under irrigation   (see table A.1). This      insignificant role of irrigation
        crop production. Instances of                                                                                                                                                                            in influencing its production.
        reduced rainfall have often led   Foodgrain Production (yoy%) - Rainfall (% deviation)  Kharif Production (yoy%) - Rainfall (% deviation)          remains low, especially for   underscores the pivotal role
        to decreased crop production                20                                20                                        While agricultural production   pulses, coarse cereals, and   of both rainfall and irrigation   Conversely, maize has
        (figure 1).                                 10                                10                                        has historically relied heavily   oilseeds (figure 3).  in influencing agricultural   reduced its reliance on rainfall
                                                     0                                 0                                        on monsoon rainfall, the                              production.                and has become increasingly
         INADEQUATE RAINFALL               -20  -10  -10  0  10  20   30  -40    -20  -10  0   20     40                        landscape has evolved      CII's analysis of foodgrain and                       reliant on irrigation.
         CAN HAVE A                                 -20                               -20                                       significantly over the years.   major kharif crop production
         DETERIMENTAL EFFECT                        -30                               -30
         ON PRODUCTION                                             Source: CII Research                                        1  The result is based on the regression analysis of kharif crop production on area sown, irrigation and rainfall from 1950 to 2022. The major kharif crops for which the analysis is
                                                                                                                                conducted are – foodgrains, rice, jowar, maize, pulses and oilseeds. Results of the regression analysis are shown in table A.1.

        10   ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY                                                                                                                                               ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY  11
                                                                                                                                                                                                                  QUARTERLY JOURNAL OF ECONOMICS
             QUARTERLY JOURNAL OF ECONOMICS
             SEPTEMBER 2023                                                                                                                                                                                                 SEPTEMBER 2023
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