Karnataka ready to share cost if Centre waives farmers' loans: Shivakumar

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Karnataka ready to share cost if Centre waives farmers' loans: Shivakumar

Synopsis

Karnataka CM D.K. Shivakumar put the Centre on notice over farmer loan waivers, offering to share the cost and inviting the Opposition to jointly approach PM Modi — a rare cross-party move that underscores just how acute the drought crisis in the state has become.

Key Takeaways

Shivakumar on 24 September urged the Centre to waive farmers' loans amid a severe drought, offering to share the state's portion of the cost.
Shivakumar proposed cost-sharing formulas of 50:50 , 60:40 , or 70:30 depending on Central agreement.
He invited Opposition Leader R.
Ashoka to join an all-party delegation to meet PM Narendra Modi and said he would write immediately for an appointment.
Karnataka had earlier secured ₹3,000 crore in drought compensation after approaching the Supreme Court .
The state is running irrigation projects worth nearly ₹1.25 lakh crore against a departmental allocation of ₹20,000 crore .
The Tungabhadra reservoir has lost around 30 TMC of storage capacity to silt accumulation; Karnataka , Andhra Pradesh , and Telangana have agreed to build a parallel reservoir.

Karnataka Chief Minister D.K. Shivakumar on Thursday, 24 September urged the Centre to waive farmers' loans amid a severe drought gripping the state, assuring that the Karnataka government was prepared to bear its share of the financial burden under any cost-sharing formula the Centre proposed.

Key Developments

Speaking in reply to Opposition Leader R. Ashoka during a special legislative discussion on drought in both Houses of the Legislature, Shivakumar invited the Opposition to join an all-party delegation to meet Prime Minister Narendra Modi and seek relief for farmers. He said he would write to the Prime Minister immediately to seek an appointment, adding: 'I will not do politics on this issue. I will give him the respect he deserves.'

Shivakumar drew a pointed comparison between the Centre's treatment of industrialists and farmers. 'Just as the Centre has waived loans worth lakhs of crores of rupees for industrialists, it should waive farmers' loans. We are ready to bear our State's share,' he said. He indicated the state government was open to a 50:50, 60:40, or 70:30 funding split, depending on what the Centre agreed to.

Drought Relief and State Guarantees

The Chief Minister said he had personally visited several affected districts and held divisional-level meetings to assess conditions on the ground, covering issues from milk prices and fodder shortages to rural employment. Shivakumar also highlighted Karnataka's track record of pursuing constitutional remedies, noting that the state had earlier approached the Supreme Court and secured ₹3,000 crore in drought compensation.

He defended the state's guarantee schemes, saying benefits were extended without political discrimination. 'We do not work based on votes. We are providing free electricity to 1.60 crore households, 10 kg of rice to 4.40 crore people and the Gruha Lakshmi scheme to 1.21 crore women,' he said.

Water Management and Fiscal Pressures

On irrigation, Shivakumar said steps had been taken to address silt accumulation in the Tungabhadra reservoir, which had reportedly reduced storage capacity by around 30 TMC. He added that Karnataka, Andhra Pradesh, and Telangana had agreed to construct a parallel reservoir and jointly tackle siltation. On the Kasturirangan report, he said the government had consulted legislators, farmers, and residents before forming a position, committing to protect farmers along forest boundaries.

Acknowledging fiscal strain, he noted the irrigation department had an allocation of ₹20,000 crore while projects worth nearly ₹1.25 lakh crore were under way. He also criticised the Centre's GST framework, saying Karnataka's revenue outflows to the Centre were disproportionate. 'The State is paying GST whether you sit or stand. Even farmers' tractors attract GST,' he said.

Call for Cross-Party Cooperation

Shivakumar closed with an appeal for political cooperation over confrontation. 'I want to move forward through cooperation rather than conflict. If there are things I need to correct, I am ready to do so,' he said. The Chief Minister's willingness to include the Opposition in a Prime Minister-bound delegation signals an attempt to build bipartisan pressure on the Centre ahead of formal relief talks.

Point of View

With irrigation liabilities running at six times the department's allocation. The all-party delegation gambit is equally calculated — if the Opposition declines, it bears the cost of being seen as blocking farmer relief; if it accepts, Shivakumar leads the march to Delhi on his terms. What the debate obscures is a structural reality: drought frequency in Karnataka is rising, yet the state's water infrastructure — as the Tungabhadra silt crisis illustrates — remains chronically under-maintained.
NationPress
25 Sept 2026

Frequently Asked Questions

What did Karnataka CM Shivakumar demand from the Centre regarding farmers?
Karnataka Chief Minister D.K. Shivakumar demanded that the Centre waive farmers' loans, citing the severe drought situation in the state. He assured that Karnataka was ready to bear its proportionate share of the cost under formulas such as 50:50, 60:40, or 70:30.
Why is Karnataka facing a drought crisis in 2026?
Karnataka is experiencing a severe drought that has hit multiple districts, causing fodder shortages, depressed milk prices, and reduced rural employment. Shivakumar said he has visited several affected districts and held divisional-level meetings to assess ground conditions.
How has Karnataka previously sought drought relief from the Centre?
Karnataka had earlier approached the Supreme Court seeking drought compensation and secured ₹3,000 crore as a result. Shivakumar cited this precedent while urging the Centre to now act on a broader farmer loan waiver.
What is the Tungabhadra reservoir issue mentioned in the drought debate?
The Tungabhadra reservoir has lost approximately 30 TMC of storage capacity due to silt accumulation, significantly reducing its water-holding ability. Karnataka, Andhra Pradesh, and Telangana have agreed to construct a parallel reservoir and jointly address the siltation problem.
Who is being invited to join the all-party delegation to meet PM Modi?
Shivakumar invited Opposition Leader R. Ashoka to join an all-party delegation to meet Prime Minister Narendra Modi and seek drought and loan-waiver relief for farmers. He said he would write to the Prime Minister immediately to request an appointment.
Nation Press
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