Rising crude oil prices and deficient monsoon are evolving risks to the economy, a finance ministry report has said.
While the oil prices are hovering around $94 per barrel, deficient rainfall has resulted in less acreage sowing of pulses and reservoir levels are low, which would impact the next Rabi crop too.
Flagging certain risks like steadily climbing crude oil prices in the global market, the impact of monsoon deficit in August on Kharif and Rabi crops, the review said, “that needs to be assessed.” At the same time, it observed, the rains in September have erased a portion of the rainfall deficit at the end of August.
