In a statement issued here, Jayalalithaa said: "The high level committee will assess the drought level and the crop loss and recommend to the state government the areas to be declared as drought-hit."
She said that based on the committee's recommendations, compensations to the farmers would be given at the appropriate time.
According to her, the failure of north-east monsoon and the non-release of Cauvery river water by Karnataka under the distress-sharing formula has affected the crops in the state.
She said the government had already announced compensation of Rs.13,692 per acre under the crop insurance scheme and state disaster management fund.