7/27/04 Oilmandi - The north-western region, which is facing adrought-like situation, will remain largely dry until the middle of thisweek with conditions still not favourable for monsoon, a weather officialsaid on Monday.

Rains in the region, which mainly grows rice, cotton and oilseeds, havebeen 40% to 50% lower than normal so far in the rainy season, threateningthe survival and yield of standing crops.

The annual monsoon, which runs from June to September, is vital foragriculture. The farm sector accounts for about 22% of the gross domesticproduct and supports about 60% of the billion-plus population.

Poor rains in major oilseeds, cotton and rice growing areas are likely tohit crop output, but monsoon showers in the past week in some regions havehelped crops, traders said.

Scattered rains in the past couple of days in Madhya Pradesh have helpedsoybean crops, said Prem S Bhatnagar, a former director with the NationalResearch Centre for Soybeans.

But soybean production in the state, which accounts for about 60% ofIndia’s soybean output, is expected to drop by 20 to 30% from 4.2m tonneslast year, traders said.