Sat May 17 11:44:09 UTC 2025: **News Article:**
**Karnataka Court Orders Overhaul of Agricultural Power Subsidies, Ending Discrimination Against Farmer Societies**
**Bengaluru, May 17, 2025:** In a landmark ruling, the Karnataka High Court has directed the state government and electricity supply companies (Escoms) to revamp the existing policy framework governing agricultural power subsidies. The court has deemed the current practice of denying subsidies to registered farmer societies, based solely on their collective power consumption, as “unconstitutional and arbitrary.”
Justice Sachin Shankar Magadum, in allowing a petition filed by representatives of farmer societies in Belagavi district, emphasized that the government’s differential treatment between individual farmers and farmer societies violates Article 14 of the Indian Constitution, which guarantees equality before the law.
The court highlighted the inconsistency of encouraging cooperative farming and resource-sharing while simultaneously penalizing farmer societies by denying them subsidies. This practice, the court noted, discourages cooperative farming, a crucial element for long-term sustainability in Indian agriculture.
The court also expressed concern over the current system of releasing subsidies to Escoms based on estimated power consumption by unmetered irrigation pump sets of individual farmers. The court noted this leads to inefficiency and wastefulness in electricity consumption, and is contrary to law.
The court ordered the government to frame and notify appropriate guidelines within six months to extend power tariff subsidies to registered farmer societies, ensuring fair treatment and promoting cooperative farming. The amended policy could include conditions based on per capita consumption, landholding, or aggregate power consumption per member of the society.
**Summary:**
The Karnataka High Court ruled that the government’s policy of denying power subsidies to registered farmer societies based on collective power consumption is unconstitutional. The court directed the government to revise its subsidy policy within six months to treat farmer societies at par with individual farmers, thereby promoting cooperative farming and sustainable agricultural development.
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