Maharashtra declares drought in 305 talukas, Rs 5,000 aid before Diwali
By Arjun MehtaSenior Business Editor, Peepals Business
Representative image: makabera / Pixabay
Maharashtra declared drought in 305 talukas on October 27, 2026, and approved Rs 5,000 for each of about 1.5 crore farmers before Diwali, costing Rs 7,500 crore.
What Happened
The Maharashtra Cabinet on Tuesday, October 27, 2026, declared drought in 305 talukas of the state and approved an advance payment of Rs 5,000 to each eligible farmer, to be sent straight to their bank accounts before Diwali. The state expects about 1.5 crore farmers to benefit, at a cost of about Rs 7,500 crore, according to reports of the Cabinet decision. Officials said the money would begin to be credited within two days, and the Cabinet plans to send a relief proposal of about Rs 40,000 crore to the Centre on October 31.
Key Facts
- Decision: Maharashtra Cabinet meeting, Tuesday, October 27, 2026.
- Drought declared: 305 talukas; one report says the government resolution lists 304, with four or five more likely to be added.
- Aid: an advance of Rs 5,000 per farmer, paid by Direct Benefit Transfer (DBT) into bank accounts.
- Eligibility: farmers who lost more than 33% of their crop to drought in the current kharif (monsoon) season, without further conditions, according to reports.
- Scale: about 1.5 crore farmers; the Cabinet approved spending of about Rs 7,500 crore. An earlier estimate, when the Chief Minister first announced the idea on October 14, was 1 to 1.25 crore farmers and about Rs 6,000 crore.
- Timing: crediting to begin within two days and to be completed before Diwali on November 8.
- Central aid: the state plans to seek a relief package of about Rs 40,000 crore from the Centre, with the proposal due on October 31.
Why It Matters
Drought has hit crops across large parts of rural Maharashtra this kharif season. A drought declaration is more than a label: it allows the state to apply a set of relief measures in the listed talukas, such as payments to farmers and relief on loan recoveries, and it is the basis for the state's request for central help.
The Rs 5,000 payment is described as an advance, paid before the full assessment of losses is complete. Chief Minister Devendra Fadnavis has said the amount cannot make up for farmers' losses but will give some relief, and Deputy Chief Minister Eknath Shinde called it a first step, with more assistance to follow. Paying before Diwali puts cash in rural households ahead of the festival.
For the rural economy the sum is significant in total, even if small per farmer. About Rs 7,500 crore reaching some 1.5 crore farmers in a few weeks will flow into village markets, input dealers and local traders.
The numbers have shifted since the first announcement, from about 1.25 crore farmers and Rs 6,000 crore to about 1.5 crore farmers and Rs 7,500 crore, as the list of drought-hit talukas grew. Farmers should check the final list of talukas and the eligibility rules in the government resolution.
| Item | Detail |
|---|---|
| Drought-hit talukas | 305 (government resolution lists 304, more may be added) |
| Advance per farmer | Rs 5,000 |
| Farmers expected to benefit | About 1.5 crore |
| Cost to the state | About Rs 7,500 crore |
| Help sought from the Centre | About Rs 40,000 crore, proposal due October 31 |
Impact
Short-term: Eligible farmers in the drought-hit talukas should receive Rs 5,000 in their bank accounts in the coming days, before Diwali. Banks and cooperative societies have been warned against coercive recovery of loans, according to one report.
Long-term: The size of further help depends on the Centre's response to the Rs 40,000 crore proposal and on the final assessment of crop losses. A second poor season would deepen stress on farm incomes and rural credit.
Who is affected: Farmers in 305 drought-hit talukas, rural banks and cooperative credit societies, input dealers and traders in rural markets, and the state's finances.
What it means for your money or business: Rural traders and dealers in the affected districts may see some pick-up in cash flow before Diwali, but a weak harvest is likely to hold back rural demand beyond the festival.
Key Takeaway
Maharashtra declared drought in 305 talukas on October 27 and approved Rs 5,000 for each of about 1.5 crore farmers, costing about Rs 7,500 crore, before Diwali.
Questions and Answers
Who will get the Rs 5,000 drought aid in Maharashtra?
Farmers in the 305 drought-hit talukas who lost more than 33% of their kharif crop to drought are eligible, according to reports of the October 27 Cabinet decision.
When will the Rs 5,000 reach farmers' accounts?
Officials said crediting would begin within two days of the October 27 decision, with payments to be made before Diwali on November 8, through Direct Benefit Transfer.
How much will Maharashtra spend on the drought advance?
The Cabinet approved about Rs 7,500 crore for about 1.5 crore farmers.
Will Maharashtra seek help from the Centre?
Yes. The state plans to send a relief proposal of about Rs 40,000 crore to the Centre on October 31.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Arjun Mehta, Senior Business EditorCovers Start-ups & Opportunities and more for Peepals Business. All stories by Arjun Mehta
Get the day's stories in your inbox
Peepals Weekly: the week decoded, free. One email a week, unsubscribe in one click.
Arjun Mehta is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
