The Karnataka government on Thursday, 5 November 2026, disbursed the first instalment of drought relief worth ₹1,260 crore to farmers across the state, timing the release ahead of Diwali. Chief Minister D.K. Shivakumar announced that a second instalment of ₹2,500 per farmer would follow within 15 days, bringing total state assistance to ₹5,000 per farmer across a maximum of two acres.

How the Relief Was Launched

Chief Minister D.K. Shivakumar and Deputy Chief Minister and Revenue Minister G. Parameshwara jointly initiated the disbursement at Vidhana Soudha in Bengaluru. The funds will be transferred directly to eligible farmers' bank accounts through Direct Benefit Transfer (DBT), bypassing intermediaries.

'Today, the Deputy Chief Minister and I are pressing the button to release the first instalment of ₹2,500. In another 15 days, we will mobilise funds and provide another ₹2,500. We have taken this decision,' Shivakumar said, addressing reporters.

Scale of the Drought Crisis

Shivakumar described the situation as an unprecedented agricultural emergency. Drought has been declared across 226 taluks in the state following a scientific assessment and adherence to prescribed government norms, without, as the Chief Minister emphasised, yielding to pressure from legislators or farmer groups. Three central government teams have already visited Karnataka to assess the situation on the ground.

According to the Chief Minister, approximately 57 lakh hectares of agricultural land have been affected, with farmers estimated to have suffered losses of nearly ₹62,000 crore. The severity is compounded by deficient rainfall, which Shivakumar linked to Karnataka being, after Rajasthan, among India's most agriculture-dependent states.

What the Government Has Asked the Centre

Karnataka has formally sought ₹22,400 crore in drought relief from the Union government, submitting all required documentation. Shivakumar said he had requested an appointment with Prime Minister Narendra Modi to present the case through an all-party delegation — a signal that the state intends to escalate the demand across political lines.

The Chief Minister was explicit that the ₹5,000 per farmer relief is being funded from the state's own resources while the Centre's response remains awaited. 'The government has made the announcement in the Assembly and is now beginning the disbursal of the promised assistance directly to farmers' accounts,' he said.

Power and Water Strain Deepen the Crisis

Beyond crop losses, the drought has strained Karnataka's finances on the energy front. The state currently spends approximately ₹20,000 crore annually on free electricity for farmers, but the drought has pushed projected electricity demand — and its cost — to nearly ₹30,000 crore. Shivakumar noted that neighbouring states are also facing power shortages, making procurement difficult even when funds are available.

Drinking water supply to rural communities is another compounding pressure. The cumulative fiscal stress places the state government under considerable strain even as it moves ahead with the relief disbursal.

The Diwali Symbolism and What Comes Next

Shivakumar acknowledged that the relief amount would not transform the lives of farmers but framed it as a gesture of solidarity. 'The farmer is in darkness while Dasara has been celebrated and Diwali is around the corner. We have taken this new decision so that the government can stand with farmers during this difficult time,' he said.

The second instalment is expected within the next 15 days, subject to fund mobilisation. The Centre's response to the ₹22,400 crore request and the outcome of a potential all-party delegation to Prime Minister Modi will be closely watched as the state braces for a prolonged recovery.