K'taka urges Centre to procure maize, groundnut at MSP

Karnataka government today urged the central government to relax norms and procure 6,00,000 tonnes of maize at the support price and prevent farmers from distressed sale owing to crash in the prices.
The state demanded procurement of groundnut as well because its prices too have fallen below the minimum support price (MSP) on expectation of higher crop.
The state government also sought to clear last three years' dues of Rs 1,050 crore at the earliest.
In a meeting with Union Food Minister Ram Vilas Paswan, Karnataka Food Minister U T Kadher and Agriculture Minister Byre Gowda explained how fall in maize prices below the minimum support price (MSP) is affecting farmers.

"The Centre has said that the procurement will be allowed with a condition it is utilised for PDS purpose in the state. But, we have asked them to procure and use it for central pool because there are not takers for maize under PDS," Gowda told reporters after the meeting.
It is the duty of the central government to procure crops when prices fall below the MSP and it cannot put condition and link with the Public Distribution System (PDS), he said.

Moreover, staple foodgrain in the state is rice, ragi, jowar and wheat. Therefore, maize procured under MSP operations cannot be used in PDS, he added.

"We have asked them to relax this norm and start procurement operation at the earliest under the price stabilisation fund (PSF) as maize prices in the state have fallen below the MSP level on expected higher kharif crop."
Maize prices have declined to Rs 900-1,100 per quintal at present, much lower than the MSP of Rs 1,425 per quintal fixed for the 2017-18 crop year (July-June), he said.
Buoyed by good monsoon, the state is expecting maize production of 28 lakh tonnes this year, of which procurement of 6 lakh tonnes by the central government will help stabilise mandi prices, he added.

The state government has suggested the Centre to procure maize from Karnataka and distribute through central pool to many of consuming states of north India.
It was in 2013-14, the centre had last procured 5 lakh tonnes of maize from the state at the support price.
Meeting separately with Union Agriculture Minister Radha Mohan Singh, Gowda sought procurement of groundnut under the Price Support Scheme as mandi prices have fallen sharply on expectation of better crop.
On pending dues, Gowda said, "Dues to the tune of Rs 1,050 crore for last three years has not been cleared by the Centre. We have procured on behalf of the government from our revolving funds, but that amount has not been paid to us yet".

Karnataka is one of the very few states which has a separate revolving fund of Rs 1,500 crore to undertake market operations.
Now, the amount in the revolving fund has come down to Rs 500 crore. The clearance of dues from the centre will help the state to intervene better, he added.