The annual monsoon rains, crucial for India's farm-sector economy, are expected to be close to 100 per cent of the long-term average this year, a senior weather department official said on Monday.

"It should be close to 100 per cent of the long-period average or slightly less than that," the official at Meteorological Department told Commodity Online.

The department is likely to announce its first forecast for 2007 later this week.

Rainfall for the entire 2006 season was about 99.6 per cent of the long-term average, higher than a forecast of 92 per cent.

The monsoon is the main source of water for agriculture in India, where farm-related activity provides a livelihood to lakhs of people.

A good monsoon raises farm output, boosts rural income and spurs spending on consumer goods from soaps to bikes and cars.

Though overall 2006 was a good year, rainfall in some states especially Haryana, Eastern Uttar Pradesh and Bihar was below what was needed. Conversely, floods ravaged parts of the western region.