Bengaluru, Jan 4 (PTI) In a major relief to maize-growing farmers facing distress sales due to a sharp fall in market prices, the Karnataka government on Sunday approved a Market Intervention Scheme for the 2025-26 kharif season to compensate farmers for price shortfalls below the benchmark rate.
Under the scheme, a Market Intervention Price (MIP) of up to Rs 2,150 per quintal has been fixed for maize. The decision follows record maize production in the state during the current kharif season, a GO said.
According to official estimates, maize was cultivated over 17.64 lakh hectares during 2025-26, with an expected output of 53.80 lakh metric tonnes—a significant increase compared to previous years.
Government data shows that between August and December 2025, around 20.50 lakh metric tonnes of maize arrived in Agricultural Produce Market Committees (APMCs), accounting for over 38 per cent of total production. However, market prices ranged between Rs 1,600 and Rs 2,000 per quintal, forcing farmers to sell under pressure.
Under the MIS, maize transactions up to a maximum of four lakh metric tonnes will be permitted through the Unified Market Platform (UMP) in notified APMC and sub-market yards, the government order added.
Considering the prevailing average modal price of Rs 1,900, farmers selling maize at this rate or below will receive a price difference payment of up to Rs 250 per quintal.
The compensation will reduce progressively as market prices rise and will not apply if prices reach Rs 2,150 per quintal or above.
The benefit is capped at 50 quintals per farmer, subject to landholding details available in the FRUITS software, with a ceiling of 12 quintals per acre.
Implementation will be carried out by the Karnataka State Cooperative Marketing Federation (KSCMF), with farmer registration conducted using biometric authentication via the NeML platform.
Payments will be made directly to farmers’ bank accounts through Direct Benefit Transfer (DBT) after verification of land records, Aadhaar details, and crop survey data.
Farmers who have already supplied maize for ethanol production, poultry or cattle feed units, or to the Karnataka Milk Federation will not be eligible under the scheme.
Mandatory quality checks will be conducted by technical officers appointed by district task force committees.
The MIS will remain operational for one month from the date of the first transaction recorded on the UMP platform.
District deputy commissioners will supervise implementation, ensure daily reporting of arrivals and transactions, and prevent misuse.
A post-implementation audit will be conducted within two months of the scheme’s completion. PTI GMS SSK
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