The Federation of Indian Chambers of Commerce and Industry (FICCI) has urged the government to bring more areas under irrigation and improve farm techniques to ensure food security.
Less rainfall during this monsoon has led to a dip of 15 percent in the kharif output, FICCI said in a report.
Moreover, the shortage of water levels in the reservoirs would affect the rabi output and would lower agricultural production by 5 percent, it added.
"This may translate into a lower GDP (gross domestic product) at 5.2 percent to 5.8 percent and the agricultural GDP may fall to minus 2 to minus 4 percent."
Bringing more farming areas under irrigation is the only long-term strategy to tackle the drought-like situations in the future, the report said.
The chamber further called for advanced forecasting systems that can pass on proper information to farmers on time.
"The district administration should be prepared to disseminate the information to farmers quickly and also propose remedial measures such as crop advisory," FICCI said.
Upgrading the agriculture-based research and development and developing new crop varieties that are resistance to different weather conditions are also important.
"The government should actively engage the private sector in development of varieties that are drought tolerant," the report said.
FICCI had also urged the government to initiate measures for maximum use of mechanisation in agriculture for direct seeding of paddy.