Karnataka urges Centre to halt maize imports as prices crash
Bengaluru/Mysuru (PTI): The Karnataka government on Friday stepped up pressure on the Centre to halt maize imports and immediately commence central procurement.
Chief Minister Siddaramaiah said that farmers were in deep distress due to a sharp fall in market prices despite a bumper harvest.
Speaking to reporters at the Mysuru airport, the CM said, "The state would provide all kinds of assistance to farmers who are in distress due to the fall in maize prices."
He noted that although the Centre had fixed the MSP for maize at Rs 2,400 per quintal, procurement centres had not yet opened.
"Farmers are insisting that the procurement process be started," he said.
Citing concerns over the 70 lakh metric tonne of maize imported by the Centre, Siddaramaiah said the decision had stalled procurement by nodal agencies such as NAFED and NCCF.
"Because of this, farmers in some places are holding protests," he said.
Karnataka alone expects to produce around 55 lakh MT of maize this season, he added.
The CM said distilleries had already stocked up when prices were low.
"Instructions have been given to discuss with distillery owners to purchase maize as per rules and facilitate farmers," he said.
The state has now directed officials to set up procurement centres to purchase 10 lakh metric tonne of maize directly from farmers.
Siddaramaiah added that the government would write to the Centre not to import more maize at a time when the country had grown abundantly and required market stabilisation.
The chief minister also said Karnataka had sought crop-loss compensation from the Union government following rain damage over 15.5 lakh hectares.
An appeal for revision of Fair Average Quality (FAQ) norms for horse gram has been filed, and officials have been asked to visit Delhi for further discussions.
In a separate communication to the Union government, Chief Secretary Shalini Rajneesh, writing to Ashish Kumar Bhutani, Secretary (Cooperation), flagged the gravity of the ongoing crisis.
"The market price of maize has fallen sharply, far below the Minimum Support Price (MSP). This has pushed our farmers into a state of anxiety and financial vulnerability, at the very peak of the harvesting season," she wrote.
Rajneesh noted that while the MSP stood at Rs 2,400 per MT, prevailing prices in Karnataka were just Rs 1,600 per MT, with distress sales accelerating. The state has a marketable surplus of nearly 32 lakh MT, she said, calling for "urgent intervention from NAFED."
The letter proposed a two-fold strategy: immediate procurement under Price Support Scheme (PSS) or a market intervention mechanism, with 12.50 lakh MT allocated to Public Distribution Sheme (PDS) and national nutrition schemes, and 20 lakh MT procured for ethanol; and temporary restriction on import of maize to stabilise prices and "uphold the spirit of MSP."
The Chief Secretary also sought a one-time relaxation of FAQ norms for slightly discoloured greengram affected by recent rains.
"Timely action will restore confidence among farmers and uphold their rightful claim to fair compensation," the letter said.
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