Karnataka Chief Minister Siddaramaiah has written to Prime Minister Narendra Modi highlighting a fall in maize and green gram (moong) prices in the state, stating that the slump has led to distress among farmers.
In the letter written on Friday, Siddaramaiah said: “Karnataka has cultivated Maize in over 17.94 lakh hectares and Green Gram in over 4.16 lakh hectares this Kharif season, and the State is expecting a tentative production of more than 54.74 lakh metric tonnes of Maize and 1.983 lakh metric tonnes of Green Gram. Though this should have been an opportunity for prosperity, the current market conditions have turned it into a crisis.”
CM stated, “While the Government has declared an MSP of ₹2400 per MT for Maize and ₹8768 per MT for Green Gram, the prevailing prices in Karnataka are ₹1600-1800 per MT for Maize and ₹5400 per MT for Green Gram, which is a severe and unprecedented fall. Shockingly, even the modal prices over the previous three years were higher than the MSP, but this year, due to external pressures and supply-demand distortions, the prices have dropped to record lows.”
“Karnataka currently has an estimated marketable surplus of 32 lakh MT of Maize, which is far beyond the absorptive capacity of local industries,” he further added.
Karnataka CM requested the immediate intervention of the Indian government to:
1. Direct NAFED, FCI and NCCF to begin procurement at MSP without delay
Since Karnataka does not include maize in its PDS distribution, FCI, NAFED and other procurement agencies must be directed to immediately commence procurement of Maize and Green Gram at MSP under the Price Support Scheme or an appropriate market intervention mechanism, thereby ensuring price stability for farmers.
2. Ensure fair participation of Karnataka’s farmers in the Ethanol Supply Chain
The basic rate for ethanol produced from maize is Rs. 66.07 per litre, and an additional incentive of Rs. 5.79 per litre (excluding GST) is payable for ethanol sourced from maize. However, it is observed that many ethanol plants in Karnataka are purchasing maize from middlemen and traders, bypassing farmers entirely. This defeats the purpose of both MSP and the Union Government’s incentive structure meant to benefit cultivators. The Union Government should direct the ethanol plants to procure maize directly from farmers or farmer-producer organisations (FPOs). If direct procurement is not ensured, the incentive given to ethanol producers should be reconsidered, as it is not reaching farmers.
3. Increase Karnataka’s Ethanol Allocation
Karnataka has a huge maize output, supported by a high distillery capacity of 272 crore litres, and possesses a large surplus of maize that is ideally suited for ethanol production. As per the Ethanol Tender Allocation for 2025-26, OMCS tendered for 1050 crore litres of ethanol, of which 758.6 crore litres (72.45%) has been allocated to grain-based ethanol, with 478 crore litres sourced from maize alone. Karnataka, despite having an installed ethanol production capacity of 272 crore litres across 49 units, has been allocated only a small fraction of it, which is disproportionately low compared to its capacity, production strength, and the significant surplus of maize available in the State. This mismatch is particularly concerning because Karnataka and Maharashtra are among the top producers of grain-based ethanol, but the zonal allocation methodology adopted this year has disadvantaged surplus States like Karnataka. Given our substantial surplus and capacity, Karnataka deserves a higher share of grain-based ethanol allocation. This will create a reliable demand for maize at MSP-level prices and protect farmers from volatility in open markets.
4. Restriction on Import of Maize
One of the major causes for this collapse is the import of large quantities of Maize from Myanmar, Ukraine, and other nations last year. Such imports have depressed domestic prices and harmed the farmers’ rightful income. I urge the Union Government to immediately curb Maize imports so that Indian farmers, who produce some of the best maize in the world, are not pushed into forced distress sales.
“Today, when prices have collapsed below MSP, and market forces have turned against them, the Union Government’s timely intervention will restore their confidence and ensure justice. Karnataka’s farmers have contributed immensely to the nation’s food security, ethanol capacity expansion, and economic growth. Ensuring fair procurement and equitable ethanol allocation is not only their right, it is a national responsibility. I urge your immediate intervention to avert widespread farmer distress in Kamataka and uphold the strength and stability of our nation’s agricultural backbone,” he further added.
