NEW DELHI -- Swathes of northern India are facing water shortages due to the late arrival of monsoon rains, deepening already-acute power shortages and disrupting the sowing season of important staple food crops at a time when India's economy is already fragile.

On Friday, Sharad Pawar, India's agriculture minister, acknowledged for the first time that lack of rain had impacted crops. "June rainfall was not satisfactory for agriculture and water reservoirs," Mr. Pawar said.

Heavy...