Experts Call for Rs 1.66 Lakh Crore Drought Relief Package in Maharashtra

The call for a Rs 1.66 lakh crore package emerged from a consortium of economists, agronomists, and farmer‑leadership groups who presented a detailed assessment of drought‑induced losses across Maharashtra’s western and central districts. They argued that without immediate financial assistance, thousands of smallholders risk defaulting on loans, leading to a wave of land sales and rural distress. The proposal includes direct cash transfers, subsidised irrigation infrastructure, and a complete waiver of existing farm loans for the most vulnerable households.

State officials have acknowledged the severity of the situation, noting that monsoon shortfalls have reduced reservoir levels to historic lows and forced many cultivators to shift to less water‑intensive crops. However, they caution that the sheer scale of the requested funds could strain the national budget, prompting debates over fiscal prioritisation and the role of private lenders. The central government is expected to convene a high‑level task force to evaluate the feasibility of the package.

If approved, the relief scheme could reshape agricultural financing in the region, setting a precedent for large‑scale state‑specific interventions. Critics warn that loan waivers may encourage fiscal complacency among borrowers, but proponents contend that the immediate relief outweighs long‑term behavioural concerns. The next twelve months will reveal whether the policy response can stabilise rural economies and prevent a deeper agrarian crisis.