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Home ›› Commodities ›› Commodities Agri ›› Crop loss due to rain nears ₹100 crore; Kerala seeks ₹110 crore central aid

Crop loss due to rain nears ₹100 crore; Kerala seeks ₹110 crore central aid

Kerala's preliminary crop loss estimate from rain and floods stands at ₹99.29 crore, affecting 36,829 farmers across 3,264 hectares. Agriculture Minister T Siddique has sought ₹110 crore in central aid, including ₹10 crore for soil fertility restoration. The state is also expediting compensation verification and loan relief.

iG
iGEN Editorial
August 7, 2026
Crop loss due to rain nears ₹100 crore; Kerala seeks ₹110 crore central aid

Preliminary estimates of crop losses from the ongoing rain and floods in Kerala have reached ₹99.29 crore, Agriculture Minister T Siddique said on Friday, as the state government sought ₹110 crore in immediate financial assistance from the Centre for relief and restoration measures. According to the minister, 36,829 farmers have been affected and crop damage has been reported across 3,264 hectares of agricultural land as of Thursday evening.

Damage assessment so far

As of Thursday evening, the preliminary crop loss estimate stands at ₹99.29 crore, according to Siddique. Damage reports cover 3,264 hectares and 36,829 farmers.

Indicator Figure
Farmers affected 36,829
Agricultural land affected 3,264 hectares
Estimated crop loss (preliminary) ₹99.29 crore

The minister said this is only a preliminary assessment and the figure is expected to increase as more reports come in.

Assistance sought from the Centre

Siddique said he has written to Union Agriculture Minister Shivraj Singh Chouhan seeking ₹110 crore in immediate assistance, broken down as:

  • ₹100 crore towards crop losses
  • ₹10 crore for restoring soil fertility, restarting cultivation and providing support to farmers
Component Amount (₹ crore)
Crop loss compensation 100
Soil fertility restoration and support 10
Total 110

Floods cause a significant loss of soil nutrients, which affects future farming, the minister noted. “We need urgent assistance to restore agricultural land and enable farmers to resume cultivation,” he said.

Soil testing and restoration

Siddique said soil testing facilities would be established across all flood-affected areas to assess nutrient depletion. “Soil testing will be carried out in all flood-affected regions, and measures to restore fertility will be implemented as a mission,” he added. Restoring soil health is critical for the next planting cycle, as nutrient loss from flooding can reduce yields even after standing water recedes.

Compensation and loan relief for farmers

The state Cabinet has already approved a 25 per cent increase in compensation for crop losses caused by natural calamities, the minister said. He also acknowledged a substantial backlog in pending compensation payments.

If my memory serves me right, compensation relating to natural disasters has been pending since 2022. There is a significant backlog. We are seriously considering measures to ensure that the pending cases are cleared without further delay.

T Siddique, Kerala Agriculture Minister

To address immediate farmer distress, a special meeting of financial institutions — including cooperative banks, nationalised banks, the Agriculture Department, the Finance Department and other agencies — has been convened on Monday. Siddique said the meeting will examine restructuring or easing loan burdens of affected farmers and facilitating fresh loans wherever required. “This is the first initiative of its kind in such a situation,” he said.

Crop loss reporting and verification

Farmers are required to report damage to their local Krishi Bhavan, after which officials carry out field verification. Once the assessment is confirmed, the details are uploaded to the dedicated portal of the agriculture department and linked to the crop loss compensation scheme. The minister said the verification process could take around three weeks, but farmers need not wait for that period before reporting losses. Steps are being considered to speed up verification, with coordination planned with the Kerala State Disaster Management Authority (KSDMA) and financial institutions.

Central assessment team sought

Kerala has requested the Union government to send a Central team immediately to conduct physical verification in selected locations. Siddique said the state specifically requested visits to Alappuzha, Kuttanad, Wayanad, Pathanamthitta and Kottayam districts. The Centre’s natural disaster relief mechanism requires a field assessment by a Central team, and the state has asked for it “at the earliest.”

The ₹99.29 crore figure remains preliminary and is expected to rise as more reports come in. The state government is exploring every possible option to support farmers while waiting for Central assistance, including restructuring loan burdens and facilitating fresh loans. For commodity market participants tracking Indian agricultural supply, the key upcoming data points are the Central team’s physical verification, the updated damage assessment, and Monday’s meeting of financial institutions, which will determine the pace of loan relief and fresh credit to affected farmers. Siddique also noted that restoring soil fertility is a prerequisite for resuming cultivation, meaning production from the affected 3,264 hectares will lag until restoration measures are completed.


Sources: AGRI_TIO

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