Drought relief: Karnataka announces one-time aid of ₹2,500 crore to about 50 million farmers, 12-month moratorium on loan repayment

Chief Minister DK Shivakumar and Deputy Chief Minister G. Parameshwara during a special session of the Legislative Assembly in Bengaluru on Thursday.

The Karnataka government on Thursday announced a one-time relief of ₹ 2,500 crore to farmers across the state in view of crop losses due to drought. The government has also announced a 12-month moratorium on loan repayments and all agricultural loans will get an extended loan period of between 36 months and 60 months, depending on the tenure.

The total burden on the exchequer from the relief package is estimated at ₹ 1,250 crore and about 45 to 50 crore farmers are expected to benefit.

While Chief Minister DK Shivakumar announced that the state will share the burden of the loan waiver if the Center announces it, the opposition BJP termed the state’s relief package “album”.

The relief was announced by Deputy Chief Minister and Revenue Minister G. Parameshwara in the Legislative Assembly at the end of a discussion on drought and agricultural distress during a four-day special session in which the K. Kasturirangan committee report was also discussed.

The government has already declared 177 taluks as drought-affected and another 50 taluks, where the ground truth exercise is underway, may join the list. Initial estimates made by the government of the drought-related losses in the state are pegged at around ₹40,000 crore.

“The government is expecting funding from the National Disaster Relief Fund (NDRF) and will provide one-time assistance of ₹2,500 to each farmer in the first phase,” said the Deputy Chief Minister.

Mr. Parameshwara said microfinance companies have been warned of criminal activity if they harass farmers in making repayments. Cooperation Minister Laxman Savadi told the House that strict instructions have been issued against any forcible recovery of loans against farmers.

Mr. Parameshwara said that 17 to 18 states are facing drought and therefore the state government is also appealing to Prime Minister Narendra Modi to declare drought as a national calamity.

Reacting to the announcement, Leader of Opposition R. Ashok, who had earlier sought loan waiver for farmers, termed the relief amount as “pittance”. He said the government has failed to understand the ground reality of the drought. “Daily wages in the state are between ₹ 600 and ₹ 1,200 and the relief announced is negligible. You cannot even get half a cent of ragi,” Mr Ashok said.

In protest at the “meager compensation”, about a dozen opposition lawmakers who were present in the House walked out.

Published – 24 Sep 2026 21:53 IST