India declares drought as El Nino appears
- India sees its first drought in last three years due to deficient Monsoon rains
- As per India Meteorological Department (IMD) the El Nino weather pattern may reduce rains again in the second half of the June to September season.
- India last suffered a drought in 2009, which forced it to import sugar that pushed global prices higher.
- This time global grain prices are towering as the United States is also going the worst drought in the country in a half a century.
- Monsoon rains are considered deficient if they fall below 90% of a 50-year average.
- The monsoon is crucial for around 55 % of farmlands that do not have irrigation.
Impact on Gold and Silver:
- India is one of the top consumers of precious metals. The deficient monsoon this year can impact rural incomes and may slash the demd for gold and silver.