Rust of Soybean caused by Phakopsora pachyrhizi (Syd) Butler and Bisby has threatened the cultivation by causing 80 per cent yield loss on most commonly cultivated varieties, viz., JS-335, PK-1029, Monetta and Pusa-40.  The result of survey conducted during 1999 and 2000 in major soybean growing areas of Karnataka revealed more disease severity in inter-cropped with sugarcane than soybean crop alone.  The average maximum disease severity was noticed in Belgaum district (47.16%) followed by Dharwad, Haveri and Bangalore.  In Belgaum district the disease severity was more in Athani taluk (81.29%) followed by Chikodi and Hukkeri.  Ugarkhurd (Athani taluka) a place situated on the Krishna river belt recorded highest disease severity (88.43%) followed by Shedbal and Kagwad.  However, 10-20 per cent disease severity was obseved in Bangalore.  Thus based on present study the  congenial microclimate at Ugarkhurd had favored the growth of the pathogen and considered as hotspot for soybean rust outbreak.