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Karnataka’s government will begin releasing drought compensation to farmers from its own funds, deputy chief minister G Parameshwara on Wednesday said, adding that about 90% of crops across the state had been damaged and the Centre had yet to release relief.

“The government needs to come to the aid of farmers and people. The government is also asking banks to defer recovery of farmers’ loans and facilitate restructuring and refinancing. The government has ordered the release of ₹ 2,500 as the first instalment to affected farmers, with district collectors directed to disburse the money immediately. Ground verification is continuing in the remaining 23, with another 10 to 15 likely to be added to the list, Parameshwara, who also holds the revenue portfolio, said during a visit to drought-hit areas in Halakundi village in Ballari.

The government’s assessment covers crop losses even in irrigated areas, with the situation particularly severe in Ballari, Vijayanagara and adjoining regions, he said. We have already taken several steps to provide as much assistance as possible,” Parameshwara told reporters. Instructions are being issued to nationalised banks as well as private financial institutions, he said. Parameshwara said the government would have to sequence other spending according to the funds available, with immediate assistance to farmers taking precedence. The deputy chief minister said the impact on farmers had been compounded in areas where attempts to sow a second crop also failed.