IMD predicts below-normal monsoon in June, FMCG stocks decline

The India Meteorological Department (IMD) has forecasted a below-normal monsoon for June 2024. It said that India has received 20% less rainfall since the start of the month, at 64.5 millimetres (mm), which is less than its long-period average (LPA) of 80.6 mm.

The monsoon is now expected to advance into parts of Maharashtra, Odisha, Chhattisgarh, Bihar, northwest Bay of Bengal, Jharkhand and coastal Andhra Pradesh in the next three to four days.

In June, northwest India received 10.2 mm (70% less than normal), east and northeast India 146.7 mm (15% less than normal), central India 50.5 mm (31% less than normal), and the south peninsula received 106.6 mm, which is 16% more than normal rainfall.

The weather department said that until June 18, 11 subdivisions received normal to large excess rainfall, and 25 regions received deficient to large deficient showers.

The IMD had earlier estimated that India could receive above-normal rains in the monsoon season from June to September, with rainfall estimated at 106% of the LPA of 87 cm.

The agriculture sector in India heavily relies on the monsoon, with 52% of the net cultivated area depending on it. June and July are considered important months for the monsoon as Kharif crops are sown.

FMCG stocks fall

Following the IMD's announcement, the fast-moving consumer goods (FMCG) segment has declined. The NIFTY FMCG index is trading 0.46% at 56,905.9.

Colgate-Palmolive (-1.45%) has declined the most, followed by Procter & Gamble Hygiene & Health Care (-1.37%), Tata Consumer Products (-1.11%), ITC (-0.68%) and Godrej Consumer Products (-0.58%).\