Maharashtra clears Rs 7,500 crore for Rs 5,000 advance to 1.5 crore farmers in drought-hit talukas

With Diwali approaching, the Maharashtra government has sanctioned Rs 7,500 crore to give an advance of Rs 5,000 each to about 1.5 crore farmers in 304 drought-affected talukas. The aid is meant to give immediate relief to farming families struggling with crop losses and rising expenses.

The decision was taken at a state Cabinet meeting on Tuesday chaired by Chief Minister Devendra Fadnavis. The money will be sent directly to the bank accounts of eligible farmers before Diwali. Assessment of crop losses is still under way, so the amount is being given as immediate support.

The aid will go to farmers in the 304 officially declared drought-hit talukas whose crops suffered more than 33 per cent damage. The government has decided that, whatever the final calculation of crop-loss compensation, eligible farmers will be given a uniform advance of Rs 5,000 before the festival.

The Rs 7,500 crore is meant for about 1.5 crore beneficiaries. The money will reach farmers' bank accounts through Direct Benefit Transfer (DBT).

To avoid delays from repeated verification, the government has clarified that farmers who completed e-KYC under various government schemes between November 1, 2025 and the date of the Cabinet decision will not have to repeat the process. Paperwork hurdles are expected to ease for those whose identity has already been verified under existing schemes.

Provision has also been made for farmers with forest rights who have not yet received an AgriStack farmer ID. They will be able to receive the advance on the basis of e-KYC, so the lack of a farmer ID will not automatically block payment. With about 1.5 crore farmers to be paid, avoiding unnecessary verification and document delays will be important to the government's promise of payment before Diwali.

The state government is still assessing farm losses in the drought-hit areas. Surveys are under way to determine crop categories and the extent of damage in different regions. Compensation will be decided on this assessment under the applicable relief provisions. The government has therefore described the Rs 5,000 as an advance, not the final settlement of crop-loss claims. The detailed assessment and compensation process will continue.

For farmers distressed by failed crops, the amount could help with household expenses and farming needs during the festival season. However, how much relief each family actually gets will depend on the applicable compensation framework and the outcome of the crop-loss assessment.

The state is also considering whether to add more areas to the drought list. Ground inspections are under way in places that have faced moisture shortage and farm losses but were left off the list. Parts of Palghar and Raigad, and Hatkanangle in Kolhapur district, are among those being examined. Whether the list is expanded will depend on the findings and the government's next decision. If more areas are added, more farmers will become eligible for drought assistance.