Search the Internet          Tips  Sites: Finance, Investment

Monsoon hits Kerala coast seven days ahead of schedule

The country's south-west monsoon struck the Kerala coast on Wednesday seven days early, blown in by a cyclone swirling in the Arabian Sea, weather officials said.

Traders said the arrival of the monsoon was likely to bring relief to hard-pressed farmers in the drought-hit western and central states and boost oilseed sowing.

"The cyclone (headed for India's west coast) has brought a lot of moisture, pulling the south-west monsoons to the coast earlier than expected," a senior official of the Indian Meteorological Department told Reuters.

The monsoon rains normally hit the Kerala coast on June 1.

The severe cyclone could strike coastal regions in Maharashtra in the next 24 hours, he added. State officials were on alert in anticipation of the storm that was packing winds of up to 140 to 160 km an hour.

The annual monsoon rains, which account for 80 per cent of the India's total rainfall, are crucial to the country's economic performance. India is counting on a good monsoon this year to revive demand and stimulate a slowing economy.

Finance Minister Yashwant Sinha warned earlier on Wednesday the drought in some states would have "some adverse impact" on the economy because it would reduce food grain production.

Growth slowed

Growth was estimated to have slowed to 6.0 per cent in 2000-01 from 6.4 per cent in 1999-00. The government is hoping growth will pick up to 6.5 per cent this year, helped by normal rainfall.

Last year, the department forecast a normal monsoon for the 12th straight year but western and central parts of India got less rainfall than expected, causing deep hardship to millions and resulting in the deaths of thousands of cattle.

The weather department official said there was now heavy rain in Kerala. "It is likely to continue raining for the next 24 hours and move in a northerly direction," the official said.

"If the monsoon moves in the right direction then it will reach Gujarat and Maharashtra seven days ahead but it is too early to say anything firm," he added.

Traders said the monsoon showers would lower edible oil prices and boost early sowing of oilseeds in Gujarat, Rajasthan and Madhya Pradesh.

"Farmers will step up sowing after hearing of the arrival of monsoons," trader Deepak Shah said.

The traders said the rains would mean that farmers storing soybean and mustard in case the monsoon was late would now start offloading their stock. They forecast this would lead to a softening of prices.

"The arrivals of soybean and mustard seeds is likely to pick up in the coming weeks with the arrival of the monsoon and prices will be under pressure," Atul Chaturvedi, vice-president of Adani Exports Ltd said.

Tell us what you think of this report