India formally waved goodbye to the 2009 monsoon on December 16, as it grapples with the after effects of the worst drought in a century. The drought has severely affected the Kharif harvest, creating a food deficiency and plunging rural demand. According to the Ministry of Agriculture, out of the total 35 states and Union Territories, 22 reported deficient rainfall (262 districts) and 3 reported scanty rainfall (115 districts). As per the official data, overall 29% deficiency in rainfall was recorded in 2009, with the Northeastern states reporting 36% deficiency.

Despite a robust GDP growth of 7.9% in the last quarter-ended September, agricultural growth has proved to be a damper. Now, the policy makers are pinning hopes on the spring harvest, Rabi crops, which is likely to fuel the future economic recovery. Concerned over the rising food inflation, which crossed 20% in first week of December, the RBI is keeping a close watch on the indicators of Rabi to determine its monetary policy in early 2010.

The farmers and the Government, alike, are concerned over the disturbed weather cycles in the country. This has led to a heated up debate over the need for the implementation of latest farm technologies and controlled farming.

Poverty in India is a cause for concern even after 62 years of Independence. Poverty indicates a condition in which a person fails to maintain a living standard adequate for his physical and mental efficiency. India has the world’s largest number of poor people. Of its nearly 1 billion inhabitants, an estimated 260.3 million are below the poverty line, of which 193.2 million are in the rural areas and 67.1 million are in urban areas. More than 75% of poor people reside in villages. Poverty level is not uniform across India. The poverty level is below 10 percent in states like Delhi, Goa, and Punjab etc whereas it is below 50 percent in Bihar (43) and Orissa (47). It is between 30-40 percent in Northeastern states of Assam, Tripura, and Mehgalaya and in Southern states of Tamil Nadu and Uttar Pradesh. Some of the reasons of poverty in India are unequal distribution of income, high population growth, illiteracy, large families, caste system, poor employment opportunities in rural areas and migration of rural population to cities, which further worsens the condition.

Since majority of rural area depends on agriculture (which is highly dependant on rain patterns) inadequate rain fall and improper irrigation facilities can cause low or no production of crops which leads to severe poverty among rural population. Rural poverty is majorly due to unemployment and low productivity. Urban poverty is due to migration of people from rural areas to cities in search of jobs, slow job growth and increasing population. Though the Government has taken steps and initiated number of programs to bring down the poverty level, it has not reached to all sectors. It’s imperative that private organizations should also pitch in to help the Government to eradicate poverty levels in India.