New Delhi, May 30 -- The Reserve Bank of India (RBI) has said that the outlook for India's agriculture sector in 2026-27 remains dependent on the progress and distribution of the south-west monsoon, while warning that the possibility of El Nino conditions poses downside risks to farm output.

In its Annual Report 2025-26, the RBI said that although weather-related risks remain, the agriculture sector is expected to benefit from improved irrigation, technological advancements, government support measures and targeted policy initiatives announced in the Union Budget 2026-27.

"The outlook for the agriculture sector in 2026-27 remains contingent upon the progress and distribution of the south-west monsoon. The likelihood of El Nino condition...