Bengaluru, Nov 22 (NationPress) Karnataka's Chief Minister Siddaramaiah addressed a letter to Prime Minister Narendra Modi on Saturday, highlighting the alarming decline in prices of maize and green gram that have plummeted to unprecedented lows. He urged that the National Agricultural Cooperative Marketing Federation of India (NAFED), Food Corporation of India (FCI), and National Cooperative Consumers' Federation of India Ltd (NCCF) be instructed to initiate procurement at Minimum Support Price (MSP) immediately.

Siddaramaiah expressed, "Dear Prime Minister Shri Narendra Modi ji, I am reaching out with grave concern and urgency regarding the drastic price drop in maize and green gram (moong) in Karnataka, which are vital for the livelihoods of countless farmers. Current market prices are significantly below the MSP set by the Government of India, causing severe distress among our cultivators."

This season, Karnataka has planted maize across more than 17.94 lakh hectares and green gram over 4.16 lakh hectares, anticipating a total yield of upwards of 54.74 lakh metric tonnes of maize and 1.983 lakh metric tonnes of green gram. What should have been a period of abundance has sadly turned into a crisis due to current market conditions.

While the Government of India has established an MSP of Rs 2,400 per metric tonne for maize and Rs 8,768 per metric tonne for green gram, the prevailing market rates in Karnataka hover between Rs 1,600 and Rs 1,800 for maize and Rs 5,400 for green gram, marking a significant and historic decline. Alarmingly, even the average prices from the previous three years exceeded the MSP, but this year, external factors and supply-demand imbalances have contributed to these record lows.

Karnataka currently has an estimated marketable surplus of 32 lakh metric tonnes of maize, far exceeding the local industries' capacity. Thus, I urge the Government of India to swiftly: direct NAFED, FCI, and NCCF to commence procurement at MSP without delay.

Since Karnataka does not include maize in its Public Distribution System, it is essential that FCI, NAFED, and other procurement entities be instructed to immediately start purchasing maize and green gram at MSP under the Price Support Scheme or a suitable market intervention strategy to stabilize prices for farmers.

CM Siddaramaiah also emphasized the need for equitable participation of Karnataka’s farmers in the ethanol supply chain. The standard rate for ethanol produced from maize is Rs 66.07 per litre, with an added incentive of Rs 5.79 per litre (excluding GST) for ethanol sourced from maize.

"However, it has been noted that numerous ethanol facilities in Karnataka are acquiring maize from intermediaries and traders, effectively excluding farmers from the process. This undermines the objectives of both MSP and the Union Government's incentive framework aimed at supporting cultivators.

The Union Government should mandate ethanol facilities to procure maize directly from farmers or farmer-producer organizations (FPOs). If direct procurement is not assured, the incentive provided to ethanol producers should be revisited, as it is not benefiting farmers," he remarked.

CM Siddaramaiah reiterated: "Every farming family in Karnataka relies on MSP as a commitment, a promise of dignity and fair compensation. In light of the current market collapse, the Union Government’s prompt action is crucial to restore their faith and deliver justice."

"Farmers in Karnataka have significantly contributed to the nation's food security, the expansion of ethanol production, and overall economic growth. Ensuring fair procurement and a just allocation of ethanol is not just their right; it is a national obligation. I implore your immediate intervention to prevent widespread farmer distress in Karnataka and reinforce the strength and resilience of our country’s agricultural foundation," he concluded.