Karnataka may borrow funds to provide drought relief to farmers if needed: Dy CM Parameshwara
Oct 08, 2026
Koppal (Karnataka) [India], October 8 : Karnataka Deputy Chief Minister G Parameshwara on Thursday said the state government was prepared to borrow funds, if necessary, to provide relief to farmers affected by the worsening drought, as 217 of the state's 240 taluks have been declared drought-hit.
Parameshwara said protecting farmers was the government's first priority and that the state would take all possible measures to assist them.
He was speaking to the media after visiting and inspecting farmland at Gunnal village in Yelburga taluk.
“During recent inspections of drought conditions in Vijayapura and Ballari districts, it was found that 98% of crops in Vijayanagara district had been destroyed. Even the remaining two per cent is unlikely to reach farmers as a viable harvest. The State is facing an extremely difficult situation,” Parameshwara said.
He said the drought situation in several North Karnataka districts, including Ballari, Vijayanagara, Koppal, Raichur and Vijayapura, was more severe than in the Mysuru region.
Parameshwara said the government was prioritising drinking water supply, assistance to farmers and generation of wage employment as part of drought management.
He said drought had also triggered migration from villages, citing a Lambani Tanda where residents were on the verge of leaving in search of work.
Officials were instructed to provide employment under the rural employment guarantee scheme, he said.
“If work is available within rural areas, migration can be prevented. We can survive only if farmers survive. Without farmers, neither society nor Government can sustain itself,” he said.
Under the norms of the Union government's National Disaster Response Fund (NDRF), farmers are to receive a total relief amount of Rs 8,500, comprising the Central and State shares. Parameshwara said the Centre had not yet released its share, prompting the state government to provide Rs 2,500 each from its own share as the first instalment.
Around 50 lakh farmers across Karnataka are to receive the assistance, with the government having already spent Rs 1,250 crore for the first instalment.
“We acknowledge that this amount is not sufficient to address the distress faced by farmers. But when assistance has to be provided to 50 lakh farmers, the overall expenditure involved must also be considered. Releasing the first instalment is part of the Government’s responsibility,” he said.
The state has submitted to the Centre an assessment of around Rs 46,000 crore in crop losses based on damage in 177 taluks. Parameshwara said Karnataka had sought around Rs 10,000 crore to Rs 12,000 crore in relief from the Centre based on the current assessment and NDRF guidelines.
The Union government has sent three teams to Karnataka to assess the drought situation, and relief is expected to be released based on their reports, he said.
Parameshwara said a delegation comprising the Chief Minister, the Deputy Chief Minister and Opposition leaders had been planned to meet the Centre and seek drought relief. However, BJP and JD(S) leaders had indicated that they would not participate in the delegation, he said.
He said the final loss assessment could increase further and that if losses reached around Rs 60,000 crore by the time the final memorandum was submitted, the state could seek around Rs 18,000 crore to Rs 20,000 crore in relief.
“We will have to see how much assistance the Centre ultimately provides. MPs from Karnataka should put pressure on the Centre irrespective of party affiliation. This is not the time for politics; this is the time to stand with farmers,” he said.
The Deputy Chief Minister also said steps were being taken to ensure that crop insurance payments reached farmers who had lost their crops due to drought.
He said the government was also working on measures concerning the share of crop insurance premiums paid by farmers and would seek to ensure that eligible beneficiaries received compensation without delay.
Parameshwara said groundwater levels had fallen sharply in several parts of the state, with some areas reporting no water even after drilling to a depth of 500 feet.
“In my own region, there are places where even drilling to a depth of 1,800 feet has failed to yield water,” he said.
He said measures had also been initiated to provide drought-affected farmers with a five-year period for loan repayment. A 60-month moratorium had been provided on loan repayment, during which farmers would not have to repay their loans, he said.
The government had also informed banks that it would address related liabilities, including the issue of interest on loans, he added.
Farmers were also receiving support through diesel subsidy, electricity subsidy and the government's Guarantee schemes, he said.
“If the assistance currently being provided is found to be insufficient, further measures will be taken. Under no circumstances will we abandon farmers. If necessary, the Government is prepared even to borrow money to provide relief. Protecting farmers’ livelihoods is the Government’s responsibility,” he said.
Parameshwara said maize farmers in several North Karnataka districts were facing difficulties due to low prices and reduced yields, and that the Union government would be requested to take steps to address the issue.
He also said the Centre had a responsibility in determining the Minimum Support Prices (MSP) for crops and should provide necessary support on the issue.
Responding to a question about reports of some state transport depots running out of diesel and bus services being disrupted over pending payments, Parameshwara said the issue could be temporary and would be rectified immediately.
He rejected allegations that the Guarantee schemes had created a financial crisis in the state.
“If the Guarantees had caused such a financial problem, the Government could have stopped at least one of the schemes. But we have spent around Rs 52,000 crore on the Guarantee schemes over the past three years and continue to implement them,” he said.
Parameshwara said the Karnataka government was functioning with fiscal discipline and that the allegation that the Guarantee schemes alone had caused the state's financial difficulties was not correct.
Despite the drought, the government would continue to provide assistance to farmers through crop-loss compensation, crop insurance, extension of the loan repayment period, support relating to interest payments and other measures, he said.
“The Union Government too must discharge its responsibility in addressing farmers’ distress. The State Government has already released the first instalment of relief. In the coming days, efforts will be made to obtain assistance from the Centre and provide further relief to farmers. During drought management, farmers’ livelihoods must take precedence over politics,” Parameshwara said.