The state's drought-hit areas rose from 68 percent to 76 percent after the dry month of March, according to Ian Macdonald, NSW primary industries minister.

"It means that farmers are having to delay planting of winter crops, such as wheat and canola," Macdonald told ABC radio.

"And some of our summer crops such as sorghum have been badly hit. The rice industry will have its worst result in 30 years -- so it's a fairly grim position around the state."

The state's total water storage has also fallen to less than one-third of capacity, he said.

The eastern states of New South Wales and Queensland have been hard-hit by a drought that has ravaged rural communities for two or three years.

New South Wales is home to some 6.7 million of Australia's total population of just more than 20 million.

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