PUNE: Maharashtra is facing a worsening drought situation, posing concerns over food and cash crop output as the state is either the top or the second largest of sugarcane, soybean and cotton in the country, and a major producer of fruits and vegetables.

After a cabinet meeting Tuesday, chief minister Devendra Fadnavis announced that the state would issue a notification listing the drought-affected areas and the relief measures.

State agriculture minister Dattatray Bharane has confirmed a large contraction in the production of cotton and soybean, while the agriculture department has initiated an early crop assessment to calculate compensation as farmers are removing wilted crops from fields.

The situation could also affect milk and poultry production and prices. Some pockets have already started witnessing fodder shortages.

"We are seeing drought-like conditions in large areas and wilting of crops like soyabean, cotton and maize, jowar and paddy on large areas," said Fadnavis. His statement came even as opposition parties have been pressing to declare a drought and farmers' organisations threatening to launch agitations demanding relief measures.

Of the total 11.79 million hectares sown under soybean in the country, the crop on 8.84% area suffered 100% damage, according to data compiled by industry body Soyabean Processors Association of India (SOPA).

Soybean is the most important kharif oilseed crop of India. Some industry executives though said production in other states like Madhya Pradesh could help offset some of the impact on supplies.