Analysts reckon that an El Nino could decelerate the Indian economy's recovery in 2014-15, besides pushing up prices.
High vegetable prices and costlier staples such as rice have pushed India's wholesale inflation to a three-month high of 5.70% in March, while retail inflation quickened 8.31% during the month.
This is the first time in a quarter century that the country's growth will end below 5% in two successive years. And deficient monsoons, critical for the kharif crop, could fan prices further.
High inflation means the Reserve Bank of India could hesitate to cut interest rates, much needed to boost economic growth.
US investment bank Morgan Stanley said in a recent research report that a possible El Niño phenomenon "could keep food inflation risks alive in the latter part of this year as well."
It could hurt industrial recovery, as well. When farm output is weak, rural spending goes down. For instance, rural buyers account for nearly half of all motorcycles sold in India.