Dry spell threatens summer crops with low yield, could worsen farmer woes

Poor output of crops could raise food prices, restricting central bank from cutting lending rates

Farmers in India run the risk of planting too much, too fast in the current monsoon season as an unexpected dry spell starts to wilt summer-sown crops, raising fears of lower yields and potentially forcing some farmers to re-sow crops.

Lower yields or crop failure will increase discontent among farmers that has triggered protests in the big agrarian states in recent months and forced the state governments to waive billions of dollars of farm loans.

The ongoing dryness is affecting central, western and southern India, key producing regions for cotton, soybean, corn, sugarcane, pulses and rice.

Poor output of summer crops could also