We have to see how monsoon fares because food inflation could be the joker in the pack: Madan Sabnavis

A normal monsoon forecast for India is a necessary but not sufficient condition for a good Kharif harvest, said Madan Sabnavis, Chief Economist at Bank of Baroda, due to variables such as timing and location of the monsoon. Food prices could be under pressure if a delay occurs as farmers would shift crops, like rice to pulses. Wheat has already suffered damage from excessive rain and heat. Food inflation could be the joker in the pack, upsetting calculations from a rate-raising perspective, said Sabnavis.