Minister for Health and Family Welfare Dinesh Gundu Rao.
Credit: DH Photo
Mangaluru: Minister for Health and Family Welfare who is also Dakshina Kannada District in-charge Minister Dinesh Gundu Rao submitted a memorandum from Chief Minister Siddaramaiah to Prime Minister Narendra Modi during his visit to Mangaluru International Airport on Friday, highlighting the severe distress faced by farmers in the state due to the steep drop in market prices for maize and green gram and demanding urgent intervention from the Union Government.
Rao who welcomed PM briefed Modi on the crisis and handed over the Chief Minister’s letter explaining the plight of lakhs of farmers whose produce is being purchased at rates far below the Minimum Support Price (MSP).
According to the memorandum, Karnataka has cultivated maize on 17.94 lakh hectares during kharif season and green gram on 4.16 lakh hectares, with an estimated production of 54.74 lakh MT of maize and 1.983 lakh MT of green gram. However, market prices have crashed drastically with maize being currently sold at Rs 1600–1800 per MT , compared to an MSP of Rs 2400 per MT, while green gram is fetching Rs 5400 per MT, far below the MSP of Rs 8768.
The memorandum said that nearly 32 lakh MT of maize is currently available for sale in the state, creating a situation that demands immediate action.
The memorandum said that Karnataka does not include maize in its PDS system, leaving farmers vulnerable to market fluctuations. The state has requested procurement of maize and Green gram under the Price Support Scheme or other market intervention mechanisms through NAFED, FCI and NCCF.
The union government should ensure fair participation of Karnataka’s farmers in the ethanol supply chain. The base price of ethanol produced from maize is Rs 66.07 per litre and an incentive of Rs 5.79 per litre is payable for ethanol sourced from maize. However, most ethanol units reportedly bypass farmers and purchase produce from traders and middlemen, which defeats the purpose of MSP. The state has demanded mandatory direct procurement from farmers or Farmer Producer Organisations (FPOs) for ethanol units.
It further urged the centre to increase Karnataka’s allocation. Karnataka is one of India’s major maize-producing states, backed by a substantial distillery capacity of Rs 272 crore litres. The state currently holds a large surplus of maize suitable for ethanol production, making it well-positioned to contribute significantly to the national ethanol blending programme. Under the 2025–26 ethanol tender, Oil Marketing Companies (OMCs) floated tenders for 1050 crore litres of ethanol, of which 758.6 crore litres (72.45%) were earmarked for grain-based ethanol. Notably, 478 crore litres are to be sourced exclusively from maize. Despite having 49 ethanol units with a combined capacity of 272 crore litres, Karnataka has allegedly received a disproportionately low allocation in OMC tenders.
The state government has urged the centre to impose restrictions on maize imports. Import from Ukraine and Myanmar last year is one of the reasons for the price crash.
It also urged to relax quality norms for procurement of green gram under MSP. Due to unseasonal rain, 6–10% of Karnataka’s green gram crop has minor discoloration. The Centre currently permits procurement with only up to 4% discoloration. The state has sought relaxation up to 10%, noting that the produce remains fit for consumption.
The memorandum stressed that MSP represents a guarantee of dignity and fair income for farmers' families. With prices falling far below MSP, the state has appealed for swift and decisive intervention from the Prime Minister to restore confidence among farmers.