In this study a new remote sensing drought index called Difference Drought Index (DDI) was introduced. DDI was calculated from the Terra satellite’s MODIS sensor surface reflectance data using visible red, near-infrared and short-wave-infrared spectral bands. To characterize the biophysical state of vegetation, vegetation and water indices were used from which drought indices can be derived. The following spectral indices were examined: Difference Vegetation Index (DVI), Normalized Difference Vegetation Index (NDVI), Enhanced Vegetation Index (EVI), Difference Water Index (DWI), Normalized Difference Water Index (NDWI), Difference Drought Index (DDI) and Normalized Difference Drought Index (NDDI). Regression analysis with the Pálfai Drought Index (PaDi) and average annual yield of different crops has proven that the Difference Drought Index is applicable in quantifying drought intensity. However, after comparison with reference data NDWI performed better than the other indices examined in this study. It was also confirmed that the water indices are more sensitive to changes in drought conditions than the vegetation ones. In the future we are planning to monitor drought during growing season using high temporal resolution MODIS data products.