BS EDIT: The cost of drought

By Business StandardPublished On Oct 7, 2026

A severe shortfall

Maharashtra has declared drought in 265 of 358 talukas. Marathwada and Vidarbha are particularly affected, with soybean, cotton, tur and maize crops facing moisture stress

A wider monsoon shock

India’s monsoon ended 12.6% below normal, at 759.4 mm. More than half the country faced dry or drought conditions by mid-September

Water under pressure

Water levels in 178 monitored reservoirs fell to nearly 70% of capacity, below the 10-year average of 76.6%. This weakens the buffer for irrigation and drinking water

Beyond agriculture

The drought is also affecting power generation. Hydropower output was nearly 12% below projected requirements in H1FY27, increasing dependence on coal and adding supply pressures

Relief has a cost

Maharashtra’s drought-relief package is estimated at about ₹45,000 crore. Compensation is necessary, but repeated relief will add pressure to already constrained state finances

Build resilience

Public spending must go beyond compensation

Better water-use efficiency, crop diversification, soil-moisture monitoring and drought preparedness can reduce future economic and fiscal damage