New Delhi, June 27 -- The cost of droughts has risen sharply. An average drought in 2035 is projected to cost at least 35 per cent more than it would today, according to a new report by the Organisation for Economic Co-operation and Development (OECD).

Globally, economic losses and damages due to droughts are increasing at an annual rate of 3-7.5 per cent, according to the report. Agriculture is the most affected sector. Crop yields can decline by up to 22 per cent in particularly dry years.

The report titled OECD Global Drought Outlook: Trends, Impacts and Policies to Adapt to a Drier World was published on June 17, 2025. It assessed current and future drought risks, their impacts on ecosystems, economies and societies and outlined pol...