India has over one billion people to serve everyday, and it depends on annual monsoon rains for over 60% of the agricultural produce. The country has so far faced over 20% shortfall in rainfall this year and the government has officially indicated that there could be severe shortfall in the production of rice and few other grains.
The imminent shortfall has already resulted in many of the food items shooting up by over anything between 10% to 50% . Some of the pulses have shot up by 40% plus in the last four months. The increase in industrial commodities over the last two months is only expected to add pressure on the overall inflation.