The NDA government’s decision to not support Karnataka’s initiative to procure maize at Minimum Support Price (MSP) has put the State government in a quandary. The issue appears to precipitate relations between the Centre and the State.
According to sources, Chief Minister Siddaramaiah is expected to write to the Centre expressing the State government’s displeasure. The Centre has decided not to support the State in maize procurement as the commodity is not being used under the public distribution system (PDS). The Centre has asked the State to spend from its own resources for maize procurement from farmers.
The State is expecting to produce around 12 lakh quintals of maize this year.
“Last year, we had spent about Rs. 480 crore on procurement and it is our duty this year too to rescue farmers from any possibility of a price crash,” Law and Parliamentary Affairs Minister T.B. Jayachandra said on Tuesday.
The Union Agriculture Department, in its letter dated November 19, 2014, had categorically stated that it would not reimburse the amount spent by the State government towards procurement.
The Centre had declared a MSP of Rs, 1,350 per quintal of maize but the price had dropped to Rs. 900 per quintal in the State.
“Why should the Centre fix MSP for the crop if it is not ready to bear the cost,” Mr. Jayachandra questioned.
When asked whether he saw it as a politically-motivated move of the BJP-led NDA government, he said “it appears to be so”.
