The move, prompted by the drought that has created a severe shortage of drinking water in the Marathwada region and parts of western and northern Maharashtra, was announced by Deputy Chief Minister Ajit Pawar, while replying to a discussion on the issue, in the Upper House.
"Sugar factories would be asked to ensure that sugarcane producers adopt the drip irrigation method, to prevent wastage of water. They will be given the responsibility to implement the scheme in their command area," he said.
Currently, the state government gives a 50 per cent subsidy to farmers to buy drip irrigation systems.
Maharashtra produces one-third of India's sugar, with nearly three million farmers being engaged in sugarcane farming, making it a politically sensitive issue.
On migration of people from affected regions, Pawar said, "the State government will ensure that nobody has to go out of the state owing to drought. The government is planning to set aside 25 per cent of the budgetary allocation towards water conservation".