New Delhi, June 3 -- The India Meteorological Department's (IMD) revised forecast of a below-normal southwest monsoon at 90 per cent of the Long Period Average (LPA) is expected to weigh on agricultural output, rural demand and food inflation, with rain-fed crops likely to face the maximum impact, according to a report by ICICI Bank Research.

The weather office has lowered its monsoon forecast from the earlier estimate of 92 per cent of LPA and assigned a 60 per cent probability to deficient rainfall during the June-September period. The onset of the monsoon has also been delayed, while rainfall during June is expected to remain below normal across most parts of the country.

According to the report, the impact of the weak monsoon could ...