In a significant move to support farmers, Karnataka Chief Minister Siddaramaiah has announced that the state government will procure maize directly from cultivators at the Minimum Support Price (MSP) for use as animal and poultry feed. This initiative aims to provide a stable market and remunerative prices for maize growers.
Government Steps In to Stabilize Maize Market
The procurement process will be managed through the Karnataka State Cooperative Marketing Federation (KSCMCF) Limited. This state-run body will act as the nodal agency, purchasing the maize produce from farmers across the state. The announcement, made on December 1, 2025, is expected to bring immediate relief to the agricultural community.
State to Bear All Logistic Expenses
In a major financial concession, Chief Minister Siddaramaiah stated that the government would fully subsidize key ancillary costs associated with the procurement. The state exchequer will bear the expenses for transportation, loading, and unloading of the maize. This decision effectively increases the net price realization for farmers, as they will not have to deduct these logistical charges from their earnings.
This policy is designed to address two critical issues simultaneously. First, it ensures that maize farmers receive a guaranteed price for their crop, protecting them from market volatility. Second, it creates a government-managed supply of maize specifically for the animal husbandry and poultry sectors, which are major consumers of the grain as feed.
Implications for Farmers and Related Industries
The directive has several important consequences:
- Assured Income for Farmers: Maize cultivators now have a guaranteed buyer in the state government at MSP, reducing distress sales.
- Boost to Allied Sectors: The poultry, dairy, and livestock industries will benefit from a streamlined supply of feed material procured by KSCMCF.
- Reduced Financial Burden: By covering transport and handling costs, the government is directly putting more money into farmers' pockets.
The move underscores the state government's focus on agricultural support and price stabilization. It represents a direct market intervention to fulfill the promise of MSP, a key demand of farming communities. The success of this scheme will depend on the efficient execution by the Karnataka State Cooperative Marketing Federation, ensuring timely purchases and payments to farmers across the state.
