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Prevailing Drought to Cost Economy 6.5 Lakh Crore: Assocham 

Years of poor monsoon has led to drought across 10 states in the country, 3 crore people affected, says Assocham.

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A study has revealed that drought in 10 states of the country is estimated to impact the economy by at least Rs 6.5 Lakh crore as about 33 crore people across 256 districts are affected by the grave situation. The rough estimate indicates that this drought will cost the economy at least Rs 6,50,000 crore or USD 100 billion, says Assocham.

With the drought situation getting out of hand, and millions being affected by it, the Supreme Court has asked the Centre to create a disaster mitigation fund to tackle drought like situation across the country and directed the Agriculture Ministry to hold a meeting within a week with affected states like Bihar, Gujarat and Haryana to assess the conditions.

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The impact of drought is likely to remain for at least six months because one needs resources and time to revive the activities on ground even if monsoon is predicted to be normal this year.

The loss of subsidies on power, fertiliser and other inputs multiply the impact, it added. On economic impact of drought, the study said the financial resources get diverted from development to aid and the possible migration to other places puts pressure on urban infrastructure and supplies.

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‘Create disaster mitigation fund’

A bench headed by Justice MB Lokur directed the Centre to create a disaster mitigation fund and also implement the provisions of the Disaster Management Act and fix a time limit for declaration of drought on scientific grounds.

It also asked the Centre to revise the drought management manual to provide effective relief to calamity-hit farmers and prepare a national plan to tackle the crisis.

Years of poor monsoon has led to drought across 10 states in the country, 3 crore people affected, says Assocham.
An Indian farmer looks towards the sky, while standing amidst his drought-stricken crop near Patiala (Photo: Reuters)
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Agriculture Ministry is directed to hold a meeting within a week with Chief Secretaries of drought-hit Bihar, Gujarat and Haryana to assess the situation
Supereme Court Bench comprising Justice N V Ramana

The court has also directed that the National Disaster Response Force should be trained and equipped to tackle drought-like situations. Additional Solicitor General P S Narasimha had on April 26 told the bench that Centre is alive to the situation prevailing in the drought-hit areas and states are working hard to provide every possible relief to the farmers in such natural calamity hit areas.

Earlier, the apex court had asked the Centre whether it was not its responsibility to warn the states about the drought like situation likely to prevail in the near future. The court had expressed its concern over low compensation paid to calamity-hit farmers and observed that it was leading some of them to commit suicide.

The petitioner NGO, Swaraj Abhiyan, in its revised prayer, had sought a direction to Centre to abide by the provisions of MNREGA Act and use it for employment generation in drought-affected areas.

(With agency inputs.)

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