El Niño Impact: Panel Suggests Rs 802.92-crore Package Towards Contingency Plan

Committee urges crop insurance, irrigation support and aid for farmers hit by rainfall deficit.

Update: 2026-07-30 16:48 GMT
Drought-hit paddy fields in Telangana reflect a 30% rainfall deficit, with 26 districts facing below-normal monsoon rains. (File Image)

Hyderabad: A committee of experts constituted by the state government to assess the impact of El Niño conditions has called for a Rs 802.92-crore package as part of a contingency plan to cover irrigation, seeds, crop loans, insurance, livestock, drinking water, employment and market support to farmers.

Significantly, the committee, headed by the Planning Board vice-chairman G. Chinna Reddy, has also called for crop insurance for farmers – a facility that is not available unless farmers opt for private companies– with the state being asked to pay 75 per cent of the premium.

The committee also said that for “farmers in drought-affected areas, existing crop loans should be rescheduled and fresh loans provided to those switching to contingency crops.”

With 26 of Telangana’s 33 districts facing deficient rainfall and paddy cultivation particularly affected, the committee, in its report submitted to Chief Minister A. Revanth Reddy on Thursday, said Telangana had received 234.8 mm rainfall till July 27 — before the ongoing wet spell — against the normal 333.9 mm, a deficit of 30 per cent. The state’s normal southwest monsoon rainfall is 740.6 mm.

The report said the rainfall shortage was already visible in cultivation. Cropped area stood at 74.56 lakh acres, compared with 79.49 lakh acres during the corresponding period last year. Cotton covered 45 lakh acres, or 94.91 per cent of its normal area, and soybean 3.62 lakh acres, or 87.01 per cent. Paddy was at just 14.92 lakh acres, 22.6 per cent of normal, with the committee citing inadequate rain and limited water availability for the slow transplantation.

It said that for standing crops, the panel proposed drip and sprinkler irrigation at 75 to 90 per cent subsidy, along with mulching, both requiring Rs 452.80 crore. It also suggested that the government provide subsidy ranging from 50 to 75 per cent of the cost for installing solar powered fencing to prevent depredation of crops by wild animals.

The report also took note that another 32 lakh acres are yet to be covered by any crop and should be brought under drought-tolerant pulses, oilseeds, millets, vegetables and fodder crops through village-wise plans. It proposed supplying contingency seeds at 75 per cent subsidy costing an estimated Rs 330 crore.

The recommendations of the expert committee also extend beyond crops. Fodder banks, subsidised fodder seed, cattle camps and feed support for sheep have been proposed, along with repair and construction of village water troughs. Continuous employment for agricultural labourers should be provided through farm ponds, check dams, tank desilting, rainwater harvesting and borewell recharge works.

The panel asked the government to conserve Mission Bhagiratha supplies, repair leaks and give drinking water priority in reservoir management until the next monsoon. It also recommended uninterrupted quality power for irrigation.

The impact on farming households should also be considered by schools, with the committee recommending that private educational institutions be advised against insisting on immediate tuition fee payments from children of drought-affected farmers.

Around Hyderabad, the panel proposed bringing one lakh acres under vegetables, with seeds at 75 per cent subsidy, micro-irrigation and transport support to Rythu Bazaars. Vegetable pandals would require Rs 15 crore at 75 per cent subsidy. Floriculture and dairy units for rural youth around the city were also recommended.

The plan proposes 3,200 vermicompost units, 100 per district, at full subsidy at a cost of Rs 5.12 crore. Village nodal teams would track crops, water, fodder, employment, power and public health.

For farmers switching crops, the committee recommended market intervention through TS Markfed when prices fall below the minimum support price, with procurement centres closer to villages to reduce transport costs and distress sales.

The committee said immediate funding and coordinated action were required to protect crops and farming livelihoods and manage water, fodder and rural employment if the rainfall deficit persists.

The 27-member expert committee includes senior officials from the agriculture, education, irrigation and energy departments, along with representatives from IMD, ICRISAT and Nabard and the vice chancellors of the state’s agriculture, horticulture and veterinary universities.

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