The decision was taken at a Cabinet meeting chaired by Chief Minister Arvind Kejriwal.
According a senior official, the assessment of affected crops have been estimated at 19,000 acres of land. Around 30,000 to 40,000 farmers will be compensated.
"Cabinet has approved a fund of Rs 36 crore as compensation to the farmers. It is initial amount which can also be revised," the official said.
On April 11, Kejriwal had announced a compensation of Rs 20,000 per acre of damaged crops.
The government is also planning to provide subsidy to farmers on the purchase of seeds and fertilisers. He said the development department is preparing its plan to implement this measure.