Maharashtra Cabinet approves ₹5,000 advance to 1.5 crore drought-hit farmers before Diwali
Synopsis
With Diwali days away, the Maharashtra Cabinet has bypassed the usual November-December drought-relief cycle and approved ₹5,000 direct transfers to 1.5 crore farmers across 304 drought-hit talukas — funded entirely from state resources because central relief timelines couldn't be met. It is one of the largest pre-festival agricultural cash interventions in the state's recent history.
Key Takeaways
The Maharashtra Cabinet on 27 October 2026 approved a ₹5,000 direct bank transfer to each of the 1.5 crore farmers in 304 drought-affected talukas before Diwali .
Relief is limited to farmers with crop losses exceeding 33 per cent ; a list of 3.5 lakh farmers for a separate loan waiver scheme is also being processed.
Groundwater levels in Marathwada have dropped by more than three metres ; over 16,000 illegal water connections have been disconnected.
CM Fadnavis said the state used its own resources to bypass central government relief timelines and ensure pre-Diwali disbursement.
A full state relief package will follow after the official damage assessment of all 304 talukas is completed.
Other cabinet decisions include ₹66.82 crore for Bajaj Auto under the EV promotion policy and revival of the Navi Mumbai – Chipi (Sindhudurg) flight route.
The Maharashtra Cabinet, chaired by Chief Minister Devendra Fadnavis, on Tuesday, 27 October 2026, formally approved a direct bank transfer of ₹5,000 to each of the 1.5 crore farmers spread across 304 drought-affected talukas — with the disbursement to be completed before Diwali. The relief applies to all farmers who have recorded crop losses exceeding 33 per cent, making it one of the broadest pre-festival agricultural interventions the state has undertaken in recent years.
Background to the Cabinet Decision
Chief Minister Fadnavis had first signalled the advance relief on October 13, immediately after the weekly cabinet meeting, pledging that each drought-affected farmer would receive ₹5,000 directly into their bank accounts ahead of Diwali. Tuesday's cabinet session translated that commitment into a formal approval. The advance is described as a bridging measure ahead of a comprehensive relief package, which the government says will be announced once the full damage assessment across all 304 talukas is concluded.
Scale of the Drought and Relief Measures
According to government sources, groundwater levels in Marathwada — one of Maharashtra's most drought-prone regions — have fallen by more than three metres. To address the water crisis, the state is deploying water tankers equipped with GPS tracking to prevent misuse, and has already disconnected over 16,000 illegal water connections. Banks and microfinance institutions have received strict instructions from the government not to forcibly collect loan repayments or electricity bills from distressed farmers during this period. The government also plans to directly procure fodder and promote fodder-crop cultivation to safeguard livestock.
Separately, the government has finalised a list of 3.5 lakh farmers for a loan waiver scheme, with processing currently underway.
What the Chief Minister Said
Addressing the urgency of the situation, Fadnavis noted that drought declarations and relief disbursements have historically been deferred to November or December. He said the state deliberately fast-tracked administrative protocols to issue notifications in October itself, citing the hardship farmers face during the festive season. 'We are well aware that this Diwali brings severe hardship for our farmers. Central government relief protocols involve procedures and timelines that cannot be finalised before Diwali. Understanding this urgency, the state cabinet decided to step in immediately, using state resources. The ₹5,000 advance transfer will ensure our farmers have immediate liquidity in hand during the festive season,' he stated.
Other Key Cabinet Approvals
Beyond drought relief, the cabinet cleared several other decisions. It approved revisions to the Maharashtra Public-Private Partnership (PPP) Policy to streamline project screening, tendering, and bidding processes. The Matoshri Gramsamriddhi Sheti-Panand Road Scheme was extended and will now be coordinated with the Viksit Bharat – Gramin Road Initiative; the scheme has been elevated from state-level to district-level status, enabling funding through the District Planning Committee (DPC).
The cabinet also approved ₹66.82 crore for Bajaj Auto Limited under the Maharashtra Electric Vehicle Promotion Policy to boost local EV manufacturing, and cleared 100 per cent Viability Gap Funding (VGF) for airline operators to revive direct flights on the Navi Mumbai – Chipi (Sindhudurg) route. A national-level exhibition centre modelled on New Delhi's Bharat Mandapam is to be developed at Lohegaon, Pune, with the development plan's reservation status for the relevant plot modified to enable faster construction. An allocation of 1 per cent of the District Annual Plan (General) was approved for the welfare and empowerment of persons with disabilities, and 289 hectares and 69 ares of land at Raver village were transferred to the Maharashtra Industrial Development Corporation (MIDC), Dhule for industrial estate expansion.
What Comes Next
The ₹5,000 advance is explicitly a stopgap ahead of the full state relief package, which will be calibrated after the official damage assessment of all 304 talukas is completed. With Diwali imminent, the government faces a tight window to process 1.5 crore bank transfers — and the pace of disbursal will be a key test of the state's administrative delivery capacity.
Point of View
000 in advance relief — rather than wait for the conventional November–December assessment cycle — is politically astute ahead of Diwali, but the harder question is what follows. Bridging transfers do not substitute for a credible, audited damage assessment, and Maharashtra's past drought-relief cycles have been dogged by beneficiary duplication and disbursement leakage. With 1.5 crore bank transfers to execute in days, the state's DBT infrastructure is under real stress. The Marathwada groundwater crisis, meanwhile, is a structural problem that a one-time ₹5,000 advance cannot address — it demands a multi-season, irrigation-linked response that the cabinet's broad relief package has yet to detail.
NationPress
27 Oct 2026
Frequently Asked Questions
Who is eligible for Maharashtra's ₹5,000 drought relief advance?
All farmers in Maharashtra's 304 drought-affected talukas who have suffered crop losses exceeding 33 per cent are eligible for the ₹5,000 advance, which will be deposited directly into their bank accounts before Diwali. The cabinet approved the measure on 27 October 2026.
Why is the Maharashtra government providing the advance from state funds rather than waiting for central relief?
Chief Minister Devendra Fadnavis explained that central government drought-relief protocols involve procedures and timelines that cannot be completed before Diwali. To ensure immediate liquidity for farmers during the festive season, the state cabinet decided to disburse the advance using state resources.
How severe is the drought in Marathwada and other parts of Maharashtra?
According to government sources, groundwater levels in Marathwada have fallen by more than three metres. The state has deployed GPS-tracked water tankers, disconnected over 16,000 illegal water connections, and issued directives to banks and microfinance institutions to halt forced loan or bill recoveries from affected farmers.
Is the ₹5,000 transfer the final drought relief, or is more coming?
The ₹5,000 is explicitly an advance, not the complete relief package. The government has said a comprehensive relief package will be announced after the full damage assessment across all 304 drought-affected talukas is concluded. A separate loan waiver covering 3.5 lakh farmers is also being processed.
What other decisions did the Maharashtra Cabinet take on 27 October 2026?
The cabinet approved ₹66.82 crore for Bajaj Auto under the Maharashtra Electric Vehicle Promotion Policy, cleared 100 per cent Viability Gap Funding to revive the Navi Mumbai–Chipi (Sindhudurg) flight route, sanctioned a national-level exhibition centre at Lohegaon (Pune) on the lines of Bharat Mandapam, and transferred 289 hectares of land at Raver village to MIDC Dhule for industrial estate expansion, among other decisions.
