The deficient rain in the Northern plains, especially in the Gangetic region, is likely to increase food inflation in the near term as overall paddy production will be hit in these areas due to poor monsoon, according to a report.
Major agricultural States, such as Bihar, Jharkhand and Uttar Pradesh, have had poor rains during the just concluded season, which may lead to an increase in the prices of rice due to lower paddy products in the near term.
The share of these States in overall rice sowing in the Kharif season (as of September 23) has declined to 24.1% from 26% in the previous year, according to an assessment by India Ratings.
