Karnataka Chief Minister Siddaramaiah has written an urgent letter to Prime Minister Narendra Modi over the steep fall in maize prices, expressing concern that the crisis has pushed thousands of farmers in the State into a state of financial distress. The letter highlights how maize growers across regions such as Haveri, Belagavi, Raichur, Ballari, Chitradurga and Vijayapura are witnessing dramatic drops in market prices, far below the Minimum Support Price (MSP). The State government insists that without immediate intervention by the Centre, maize farmers may be forced to abandon cultivation or face crushing debt.
According to market records cited in the Chief Minister’s letter, maize prices have fallen significantly below the MSP fixed at ₹2,225 per quintal. Farmers are reportedly being forced to sell their produce anywhere between ₹1,350 and ₹1,700 in several Agricultural Produce Market Committees (APMCs). This disparity is being blamed on low procurement, rising imports of broken maize substitutes, and alleged cartelisation by traders. The CM has urged the Centre to direct central procurement agencies to begin large-scale purchases at MSP rates, claiming that failure to do so will trigger irreversible livelihood losses.
Farmers Say Delay in Response Is Affecting Next Crop Cycle
In several maize-growing regions, farmers are now uncertain about sowing plans for the upcoming season. Many say they cannot risk growing maize again without knowing whether the Centre will intervene at MSP. Farmers in Belagavi and Raichur argue that crop decisions are directly linked to government market assurances, and delaying a response forces them to choose alternative crops with lower yields but predictable prices. Extension workers warn that sudden shift from maize could destabilise fodder markets and livestock feed supply. Farmer groups fear that without timely intervention, Karnataka might witness a decline in maize acreage next season.
A Domino Effect on Poultry and Cattle Feed Industries
The steep fall in maize prices has not only affected farmers but also created unusual dynamics in livestock feed industries. Lower maize prices temporarily favour poultry and cattle feed manufacturers, who benefit from cheaper raw materials. However, agricultural experts caution that long-term exploitation of farmers will hurt the livestock sector eventually, as poor prices discourage maize cultivation. If maize production decreases in upcoming cycles, feed industries will face a shortage, triggering sudden price spikes. Thus, experts argue that market correction must happen now to avoid future instability that could affect the entire agricultural value chain.
Storage Infrastructure Remains the Weak Link in the Crisis
The crisis has revealed a long-standing weakness in Karnataka’s agricultural infrastructure: the shortage of government-run storage facilities. Despite being one of the leading maize producers, regions like Ballari and Vijayapura lack adequate warehouses under public agencies. Farmers without access to storage are forced to sell immediately, losing bargaining power. The State insists that procurement cannot succeed unless supported by decentralised storage with modern drying and grading facilities. Analysts believe that the Centre must expand storage infrastructure, not merely announce MSP interventions. Without storage, price protection becomes an empty promise for farmers.
Farmer Leaders Warn Against Middlemen Dominance
Farmer organisations fear that delayed government action will strengthen the influence of traders and private millers. Leaders argue that middlemen profit most during market collapse by purchasing crops at distress rates and releasing them later when prices recover. This cycle reinforces trader dominance and prevents farmers from accessing stable market benefits. Leaders from northern Karnataka have demanded strict monitoring of APMC markets during procurement phases, along with punitive action against traders who engage in price suppression. They warn that without accountability, maize farmers will continue suffering regardless of MSP announcements or government guidelines.
Women Farmers Face a Unique Financial Strain
A significant portion of maize cultivation in parts of Haveri, Chitradurga and Belagavi involves the participation of women farmers, especially small landholders and widows running family farms. Many of them depend on local cooperatives for loans, which demand repayment soon after harvest. With falling prices, women cultivators claim they are unable to repay their loans, forcing them to borrow again or rely on informal lenders who charge high interest rates. Women’s agricultural unions argue that government policies rarely address gender-specific vulnerabilities, even though women farmers bear heavier financial burden during market fluctuations.
Awaiting Centre’s Intervention: Farmers Hope Letter Sparks Change
Across Karnataka’s maize belt, farmer groups hope that Siddaramaiah’s letter triggers swift intervention from the Central Government. They believe a strong response could revive confidence, stabilise markets, and signal that maize cultivation remains a viable livelihood option. Traders and mill owners also await clarity, stating that clear directives from the Centre can prevent disputes over pricing. Economists caution that the longer the government takes to respond, the deeper the economic shock. For now, Karnataka waits for acknowledgement from New Delhi, with farmers holding onto the hope that their urgent plea will not be ignored.
CM Urges Centre to Start Emergency Procurement
The Chief Minister’s letter emphasises that urgent procurement at MSP is the only way to restore confidence among maize farmers who fear they will not recover the cost of cultivation. Farmers spent significantly more on fertilisers, seeds, labour, irrigation, and transportation during the recent season, expecting MSP-based returns. Siddaramaiah argues that if the Centre activates urgent procurement through agencies such as the Food Corporation of India and the National Agricultural Cooperative Marketing Federation, farmers will receive fair compensation. The State maintains that its procurement capacity alone cannot handle the current scale of market collapse without Central support.
Abandonment of maize crops is becoming a real fear, the CM noted, especially among small and marginal farmers who do not possess storage facilities to hold back harvests until market recovery. Many farmers sell immediately after harvest to avoid rental charges for storage or interest burdens on loans. The letter stresses that this has left thousands vulnerable to middlemen who exploit distressed sales. Siddaramaiah claims that the Centre must not treat the price fall as a routine fluctuation but as an agricultural emergency impacting lakhs of families. Farmers’ organisations have welcomed the CM’s decision to escalate the crisis to the Prime Minister.
Falling Prices, Rising Stocks: Farmers Trapped in Debt
Traders Accused of Manipulating Markets Amid High Yield
Farmer groups across Karnataka are alleging that traders and mill owners are colluding to keep prices artificially low despite a robust market demand for fodder and industrial-grade maize. In districts like Belagavi and Haveri, farmers report that traders enter into informal agreements to delay purchases, forcing farmers to dump crops at throwaway rates. Some millers allegedly cite poor grain quality to refuse MSP-based purchase. This contradicts data cited by State authorities indicating that overall yield and grain quality are no different from previous years. Farmer unions argue that procurement indifference enables traders to control prices in their favour.
Surplus Maize Leaves Farmers Without Storage Options
During the past season, Karnataka witnessed a spike in maize production due to favourable weather and increased acreage under cultivation. Unfortunately, the spike has turned into a disadvantage for farmers with no access to decentralised warehouses. In Raichur and Ballari, several farmers reportedly kept their produce in open spaces or temporary tarps, exposing it to moisture and loss of quantity. Storage facility shortages have now forced many cultivators to sell even lower, as deteriorating grain conditions fetch further reduced prices. Agricultural economists assert that State-level storage does not match Karnataka’s maize output, worsening the crisis.
Debt Burdens Rise as Farmers Spend More to Earn Less
A large section of maize growers entered the cultivation season with borrowed capital from banks, private lenders, or cooperative societies. The cultivation costs have risen by 20–30 percent due to increased labour charges, irrigation needs, diesel requirements, and fertiliser price fluctuations. However, the revenue earned after harvest has remained stagnant or significantly lower. In districts such as Chitradurga and Vijayapura, farmers say they are unable to repay loans, forcing them to consider borrowing again to sustain daily household expenses. Many farmer families warn that if prices do not stabilise, debt cycles could worsen beyond recovery.
Call for Policy Shift Beyond MSP
Demand for Ban on Cheap Maize Imports
Another pressing concern raised by the Karnataka government relates to imported maize and maize substitutes entering the domestic market. The CM’s letter argues that imports of cheaper broken maize and feed-grade corn are weakening farmer profits while supporting industrial livestock feed manufacturers. Farmers in Haveri and Belagavi claim that their produce is rejected on grounds of “quality mismatch” whenever substitute imports become available. The State wants the Centre to temporarily restrict imports or impose tariffs to ensure domestic farmers receive priority. CM Siddaramaiah asks the Union Government to recognise the imbalance created by unrestricted imports.
Support for Market Intervention and Price Stabilisation Funds
The CM’s appeal emphasises that MSP must be backed by market intervention mechanisms that safeguard farmers when market volatility becomes unbearable. Siddaramaiah has asked the Centre to activate the Price Stabilisation Fund to assist maize cultivators, claiming that without financial cushioning, MSP remains only a symbolic price. The letter highlights that past voluntary procurement schemes failed due to low Central participation. Farmers demand long-term commitments that extend beyond occasional intervention, arguing that maize cultivation lies at the heart of fodder security and rural employment, especially in northern Karnataka’s semi-arid zones.
Experts Call for Early Farmer Consultations
Agricultural researchers from universities in Dharwad and Bengaluru have argued that policy decisions must involve grassroots consultations. They maintain that maize farmers possess firsthand understanding of sowing cycles, rainfall inconsistencies, input cost variations, and trader behaviours. Experts believe that farmer advisory boards must be formed at district levels to predict and manage cropping patterns and price stability. Without farmer participation, sudden market shocks will persist. Researchers insist that the Centre must treat maize like sugarcane and paddy, where long-term procurement strategies already exist. Karnataka’s request echoes calls raised by farmer economists across India.
Conclusion: A State Waiting for Centre’s Response
Karnataka has made a strong appeal to protect maize farmers facing economic instability due to unprecedented price collapse. Siddaramaiah’s letter underscores the urgency of Centre-led procurement, import regulation, storage expansion, and price stabilisation strategies. Agricultural stakeholders across the State insist that the crisis is not limited to fluctuations but threatens rural livelihoods and the future of maize cultivation. The next few weeks are crucial, as delayed response will push many farmers deeper into debt cycles and influence cropping decisions in future seasons. Karnataka’s farming community now waits for decisive intervention from the Centre, hoping that their produce will finally command the dignity of fair compensation.
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