Union Minister Joshi Urges Karnataka CM to Release Rs 1,680 Crore Crop Insurance Premium Share

Union Minister Pralhad Joshi on Friday urged Karnataka Chief Minister D K Shivakumar to immediately release the state's pending Rs 1,680 crore share of the crop insurance premium for the 2026 Kharif season, alleging that the delay was preventing drought-hit farmers from receiving compensation.

In a letter to Shivakumar, Joshi said the amount had been pending with the state Finance Department for around one-and-a-half months, while the Centre had already released Rs 1,342 crore towards its share of the premium subsidy.

Farmers who suffered crop losses due to severe drought were facing serious financial distress and struggling to recover their cultivation expenses, Joshi said, describing compensation under the Pradhan Mantri Fasal Bima Yojana (PMFBY) as a crucial lifeline.

According to the minister, the Centre released Rs 1,342 crore in July and August, with the last instalment paid on August 27. The amount accounted for approximately 80 per cent of the Centre's total share. The remaining amount would be released after farmers' enrolment data was finalised and claims were received from insurance companies, he said.

Joshi said the state's premium liability for the season stood at Rs 1,680 crore, but no funds had been released so far. He added that insurance companies needed to receive at least 50 per cent of the premium to settle claims under additional insurance coverage.

The minister said he had also raised the issue with Shivakumar during the chief minister's previous visit to his office. Joshi urged the chief minister to intervene personally, clear the pending file with the Finance Department and release the state's share without further delay.

He also called for coordination between the concerned departments and insurance companies to ensure that compensation due to eligible farmers was credited to their bank accounts at the earliest.