Karnataka: CM Siddaramaiah seeks Centre’s intervention as maize, green gram prices plunge
Credit: Facebook/CMofKarnataka
Bengaluru: Karnataka Chief Minister Siddaramaiah has written to Prime Minister Narendra Modi flagging a steep crash in maize and green gram (moong) prices in the state, saying the slump has caused deep distress among farmers.
In the letter he wrote on Friday, Siddaramaiah said Karnataka cultivated maize on 17.94 lakh hectares and green gram on 4.16 lakh hectares this Kharif season, expecting 54.74 lakh metric tonne (MT) of maize and 1.983 lakh MT of green gram. Instead, the prices have collapsed, pushing farmers into crisis.
Siddaramaiah wrote, “Prices have fallen far below the Minimum Support Price (MSP) declared by the Government of India, creating widespread distress among cultivators.” He pointed out that while the Centre fixed MSP at Rs 2,400 per MT for maize and Rs 28,768 per MT for green gram, the prevailing prices in Karnataka have dropped to Rs 1,600 to Rs 1,800 per MT for maize and around Rs 5,400 per MT for green gram.
Even the modal prices of the last three years were higher than MSP, but external pressures and supply-demand distortions have pushed prices to record lows, he said.
According to CM, Karnataka has a marketable surplus of 32 lakh MT of maize, far exceeding the absorptive capacity of local industries.
Siddaramaiah urged PM Modi to direct NAFED, FCI and NCCF to begin MSP procurement immediately under the Price Support Scheme or another suitable mechanism.
He also sought measures to ensure Karnataka’s farmers benefit fairly from the ethanol supply chain, pointing out that the basic rate for maize-based ethanol is Rs 266.07 per litre with an added incentive of Rs 5.79 per litre. The CM alleged that many ethanol plants are sourcing maize from middlemen instead of farmers.