The deficient rains have already resulted in prices of essential commodities go through the roof, with tur dal, a lentil native to India and part of the staple diet, costing over Rs.100 a kilogram in several states.

Finance Secretary Ashok Chawla, who was a part of the review meeting, said a decision will be taken on the measures to be adopted due to monsoon failure after obtaining the assessment reports from various states.

'We will also find adequate resources to tackle the drought,' he added.

Prime Minister Manmohan Singh has already warned that the reduced production of kharif crops, sowing for which coincides with the monsoon, may have an inflationary impact on prices of food items in the coming months.

He, accordingly, urged the states Monday to work together with the central government and activate the public distribution system.

'The contingency plan for crops, drinking water, human and animal health, fodder should be brought into operation without delay and a close watch kept on availability of food grain and prices of essential commodities.'