Agri Buzz: Finance Ministry says persistence of El Nino could raise pressure on crop yields and food prices

Finance Ministry, in a latest monthly update, has highlighted the emerging risk of El Nino for Indian economy. The latest INCOIS Special El Nino Outlook Bulletin confirms that El Ni?o conditions had developed over the central Pacific by July 2026 and assigns an 80?98 per cent probability to El Nino remaining the dominant ENSO phase from August 2026 through March 2027. The persistence of El Nino raises the risk of a weaker or uneven monsoon and, consequently, of pressure on crop yields and food prices. At the same time, the assessment should remain measured, as the relationship between El Nino and agricultural outcomes is not one-to-one, and a country?s irrigation, procurement and food-stock mechanisms provide important buffers.

Powered by Commodity Insights