Karnataka drought: ₹2,500 released to 50 lakh farmers, state seeks ₹12,000 crore from Centre
Synopsis
Key Takeaways
Karnataka Deputy Chief Minister G. Parameshwara on Thursday, 8 October 2026, said the state's drought situation was becoming increasingly severe, with the government releasing a first instalment of ₹2,500 each to approximately 50 lakh affected farmers from its own funds, even as it awaits a relief package of ₹10,000 crore to ₹12,000 crore from the Centre. Parameshwara made the remarks while inspecting drought-hit farmland at Gunnal village in Yelburga taluk, Koppal district.
Scale of the Drought Crisis
Of Karnataka's 240 taluks, a staggering 217 have already been formally declared drought-affected. The situation is reported to be most acute in North Karnataka, particularly in the districts of Ballari, Vijayanagara, Koppal, Raichur, and Vijayapura, which Parameshwara described as more severely hit than the Mysuru region.
During recent field visits to Vijayapura and Ballari, officials found that approximately 98 per cent of crops in Vijayanagara district had been destroyed. The Deputy Chief Minister noted that even the crops that survived the drought were unlikely to yield a viable harvest. Drought-induced migration has already begun in several villages, with communities such as the Lambani Tanda settlement reportedly preparing to leave in search of employment. Officials have been directed to provide work through the rural employment guarantee scheme to check this outward movement.
Relief Released and Funds Sought
Under the Centre's National Disaster Response Fund (NDRF) norms, each farmer is eligible for a total relief of ₹8,500, comprising both Centre and state shares. Since the Centre has not yet released its share, the Karnataka government decided to disburse ₹2,500 per farmer from state funds as an immediate first instalment. The state has already spent around ₹1,250 crore on this disbursement.
Parameshwara acknowledged that the amount was insufficient given the scale of losses but stressed that it was intended as urgent, bridge-gap relief. The state has submitted a crop-loss assessment of approximately ₹46,000 crore based on losses reported across 177 taluks. Should the drought persist, Parameshwara warned, total losses could approach ₹60,000 crore — at which point the state may seek between ₹18,000 crore and ₹20,000 crore from New Delhi.
Centre's Response and Political Friction
Three central teams have already visited different parts of Karnataka to assess the situation, and the state expects relief to be disbursed based on their reports. A delegation led by Chief Minister D.K. Shivakumar and Parameshwara, along with Opposition leaders, had been planned to meet the Centre and press for greater assistance. However, Bharatiya Janata Party (BJP) and Janata Dal (Secular) (JD(S)) leaders indicated they would not participate in the delegation.
Parameshwara appealed across party lines: 'This is not the time for politics; this is the time to stand with farmers. MPs from Karnataka should put pressure on the Centre irrespective of party affiliation.' He called on all elected representatives to prioritise farmer relief over political considerations.
Additional Measures for Farmers
The state government has put in place a range of supplementary measures. A 60-month moratorium on loan repayment has been provided to drought-hit farmers, with banks formally notified about the arrangement, including provisions related to interest liabilities. The government is also actively pursuing crop insurance payouts, having held discussions with insurance companies regarding pending claims and examining issues related to farmers' premium contributions.
Further support includes diesel subsidies, electricity subsidies, and coverage under the state's guarantee schemes. On the acute question of groundwater, Parameshwara disclosed that levels had fallen sharply, with some areas in the state failing to yield water even after drilling to 500 feet, and certain locations in his own region requiring drilling to 1,800 feet without success.
The Deputy Chief Minister also said the Centre would be requested to intervene on maize prices, as farmers in several North Karnataka districts were facing hardship due to low market prices alongside reduced yields, and called on the Union Government to ensure adequate Minimum Support Price (MSP) support.
Government's Commitment
Parameshwara was categorical that the government would not leave farmers to fend for themselves. 'Under no circumstances will we abandon farmers. If necessary, the government is prepared even to borrow money to provide relief,' he said. He also rejected allegations that the state's guarantee schemes had triggered a fiscal crisis, noting that Karnataka had spent around ₹52,000 crore on them over the past three years without suspending any government programme.
With central assessment teams having completed their visits and a potential delegation to New Delhi in the pipeline, the scale of federal relief that Karnataka ultimately receives will be the defining factor in how the state navigates what is shaping up to be one of its worst droughts in recent memory.