Karnataka CM seeks Centre’s intervention as maize, green gram prices plunge
Bengaluru (PTI) 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.
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Rupee falls 9 paise to all-time low of 90.58 against US dollar in early trade
Mumbai (PTI): Rupee depreciated 9 paise to an all-time low of 90.58 against US dollar in early trade on Monday, weighed down by uncertainty over an India-US trade deal and persistent foreign fund outflows.
Forex traders said rupee is trading with a negative bias as investors are in wait and watch mode and awaiting cues from the India-US trade deal front.
At the interbank foreign exchange market, the rupee opened at 90.53 against the US dollar, then fell further to an all-time intraday low of 90.58 against the greenback, registering a fall of 9 paise over its previous close.
On Friday, the rupee had slipped 17 paise to close at an all-time low of 90.49 against the American currency.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.05 per cent lower at 98.35.
Brent crude, the global oil benchmark, was trading higher by 0.52 per cent at USD 61.44 per barrel in futures trade.
On the domestic equity market front, the 30-share benchmark index Sensex was trading 298.86 points lower at 84,968.80, while the Nifty was down 121.40 points at 25,925.55.
Foreign Institutional Investors sold equities worth Rs 1,114.22 crore on Friday, according to exchange data.
"FPIs continue to be in selling mode in equity and debt while RBI has been selling dollars to fund their long positions," said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
