India’s rural population accounts for sixty percent of the total, where agriculture provides the main source of income. This is no different for the mid-southern state Maharashtra. A state where the monsoon drives the climate, hence determines crop yields of abundant rain-fed farmers. The state also witnessed high suicide rates among farmers in the last decade, despite high growth of the Indian economy A socio-hydrological modelling is used as a tool to interpret the crisis. A recently developed smallholder socio-hydrological modelling framework is deployed that conceptualizes the system dynamics of a farmer. First a comparative assessment is done by applying the model to two adjoining divisions of Maharashtra: Maratwada and Desh. To obtain insight into the dominant factors behind the crisis in Marathwada, which witnessed higher farmer suicide rates than Desh. It reveals that the difference in farmer distress can be attributed to differences in soil characteristics, hydro-climatic variability and cropping pattern. The role of unsuitable cropping patterns in triggering farmer distress is then assessed historically (over a 30 year period of 1981-2011) simulating 3 types of smallholders: a food grain producer, a farmer who changed his cropping to pulses (after 1992), and a farmer who switches to producing cash crops (after 1992). These assessments are based on observed changes in cropping patterns in Marathwada and support the argument that marginal farmers switching to risky cash crops, that are not appropriate for the local conditions, may be behind elevated farmer distress. Finally, various on-farm socio-hydrological processes, that were inspired by farm surveys conducted in March and April 2016 in Parbhani, were improved in order to enhance the realism of the developed model for Marathwada. These included the effect of high intra-seasonal variability on crop yields and the on-farm characteristics. All led to improved correlation with observed suicide rates. Results demonstrate that socio-hydrological modelling provides an explanation behind regional differences in suicides rates. Cash crops increase the vulnerability of small farmers to crop failure, yet farmers take more risk hoping for high returns from selling cash crops. Weak credit and crop insurance systems are accelerating the distress amongst farmers in the region. In fact, the effect of droughts is accentuated by the choice of growing cash crops. In conclusion, finding on-farm water storage solutions are not sufficient to alleviate farmer distress. Policy intervention should focus on promotion of watershed development and financial incentives may be needed to motivate a change in cropping pattern or off-farmlabour alternatives.