Bengaluru: To ease the difficulties faced by maize growers, the State government on Sunday issued an order allowing the Karnataka State Cooperative Marketing Federation (KSCMF) to purchase maize directly from farmers and supply it to distilleries for ethanol production, reports The Hindu.
The decision comes after distilleries pointed out that buying maize through NAFED or NCCF would cost them ₹2,639 per quintal, including the minimum support price and additional expenses. Under the new arrangement, KSCMF will supply maize at ₹2,400 per quintal, with the State government covering the extra cost.
The order was issued following a meeting between Chief Minister Siddaramaiah and representatives of distilleries on Friday. As directed by the Centre, around seven lakh tonnes of maize is to be procured this season at a minimum support price of ₹2,400 per tonne.
Distilleries had earlier raised concerns that the Centre had not revised ethanol prices for three years, even as the minimum support price for maize had increased.
Procurement will be limited to a maximum of five quintals per farmer, and payments will be made within three days through direct benefit transfer.
