Karnataka Govt. issues order for KSCMF to procure and supply maize to distilleries
Karnataka authorised KSCMF to procure maize and supply it to distilleries at ₹2,400 per quintal, easing costs after distillers flagged the ₹2,639 rate from NAFED/NCCF. The State will cover the gap. Seven distilleries need 44,895 tonnes this quarter, with KSCMF supplying half. Farmers can sell up to five quintals, with payment in three days.
To provide relief to maize growers, the State government on Sunday issued order, enabling the Karnataka State Cooperative Marketing Federation (KSCMF) to procure maize from farmers and supply it to distilleries for production of ethanol.
The KSCMF’s intervention comes after distillers pointed out at the high cost of ₹2,639 per quintal, including minimum support price and other costs, if they had to purchase maize from NAFED or NCCF.
The KSCMF will now supply maize at ₹2,400 per quintal, and the State government will foot the additional financial burden.
The order follows a meeting of Chief Minister Siddaramaiah with representatives of distilleries on Friday. As per the Centre’s directive, about seven lakh tonnes of maize is to be procured this season at a minimum support price of ₹2,400 per tonne. With good rainfall, the estimated production of maize in Karnataka this season is about 54.74 lakh tonnes on an area of about 17. 41 lakh hectares.
The distilleries have pointed out that the Centre had not revised the ethanol price in the last three years while the minimum support for maize had been revised. They have expressed inability to purchase maize since the minimum limit of ethanol production has been fixed and not the maximum limit. The distilleries feared financial loss if maize had to be purchased at ₹2,639 per quintal.
As per the agreed terms, the requirement of seven distilleries in the first quarter supply, ending on January 26, has been estimated to be around 44,895 tonnes of which KSCMF will supply 22,446 tonnes. The procurement from each farmer will be to a maximum of five quintals, and money will be transferred to farmers within three days through DBT.
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Source : The Hindu
