Climate shocks trigger massive crop losses in Karnataka, insurance claims soar

Hubballi: Climate change is taking a toll on Karnataka's agriculture sector, with localised floods and droughts causing significant crop losses. Over the past five years, farmers have received Rs 7,079 crore in compensation for these losses.

Agriculture Department data shows that the number of farmers availing crop insurance has doubled over this period, while compensation payouts have tripled, highlighting the increasing vulnerability of farming.

In the past five years, Karnataka has experienced four years of above-normal rainfall, causing local floods, and one year of drought. This erratic weather has put immense pressure on farmers, pushing many to seek insurance to mitigate the risks.

Of the 15.16 lakh farmers who applied for crop insurance in 2021-22, nearly 5.15 lakh farmers sustained crop losses and claimed compensation amounting to Rs 638 crore. However, in 2024-25 (only up to the kharif season), nearly 27.04 lakh farmers applied for crop insurance, of whom 11.81 lakh farmers sustained crop losses, and the governments disbursed nearly Rs 2,076 crore as compensation.

If compensation disbursed in the last five years is used as an indicator of crop loss, districts like Gadag (Rs 1,123 crore), Kalaburagi (Rs 1,071 crore) and Haveri (Rs 1,056 crore) stand out for their consistent crop losses — each reporting an average crop compensation of Rs 200 crore annually.

Agro-economist T N Prakash Kammardi says, “Climate change has made farming more precarious and crop insurance can’t fully compensate for the losses. At best, it offers a small cushion.” He adds that the system must respond as effectively as possible.

Despite this surge in claims, many farmers remain sceptical about the insurance system. They argue that the disbursement remains unscientific, delayed and inadequate.

Sharanabasappa Mamashetty, President of the Karnataka Prantha Raitha Sangha in Kalaburagi, says, "The money never reaches farmers right after the losses. Inspections are delayed, often happening months after the crops are destroyed."

Mamashetty also points out the discrepancies in how premiums are calculated versus how compensation is determined. He criticises the Agriculture Department for not doing enough to raise awareness about the importance of crop insurance.

A senior Agriculture Department official acknowledges the need to streamline the insurance disbursal process by replacing the yield-based system with a more pragmatic total loss payment system.

"Visits by Central teams and other agencies should be expedited to ensure timely relief, allowing farmers to adopt alternative cropping practices and minimise further losses."

Agriculture Department Director G T Putra says that seasonal installments of crop loss compensation are being disbursed within the stipulated time. “Agriculture in Karnataka is becoming vulnerable due to climate change. We are witnessing more localised calamities over large-scale floods and droughts. In such cases, we, along with other agencies, conduct surveys and submit reports within 72 hours," he says.