India, May 30 -- A majority of India's rain-fed states, which lack irrigation but account for nearly two-thirds of the country's farm output, are set to receive above-average monsoon rains for the first time in two years. This will likely boost a range of crops critical to keep a lid on food prices.

In its updated forecast, the weather office on Monday reaffirmed its earlier prediction of an above-average monsoon this year, which will potentially lift farm growth and the wider economy.

The June-September monsoon is vital for Asia's third-largest economy because nearly half of the country's net-sown area lacks irrigation and millions depend on a farm-based livelihood. The rains also replenish 150 reservoirs critical for industry, drinkin...