Centre to release funds to pay maize growers

By S. Rajendran

BANGALORE JUNE 29. The Union Government has agreed to release funds to pay maize growers in the State, who sold their produce to the Food Corporation of India (FCI) three months ago.

Several growers were in distress earlier this year following fall in maize prices in Karnataka and the neighbouring States. The Centre, on a request by the State Government, made the FCI purchase the produce. Most growers were paid on time as funds were released soon after the purchase, but those who sold the produce in March suffered.

The Centre's favourable response to a request from the State Government this week has come as a relief to the authorities here and to the growers. The pressure on the State Government increased in the past few days following the rise in maize prices in the open market. From Rs. 300 per quintal in March, the price went up to Rs. 550 per quintal.

The Minister of State for Food and Civil Supplies, Mr. D.B.Inamdar, who has been under pressure for over a year following collapse in the prices of foodgrains and pulses, told The Hindu here on Friday that the Centre was aware of the problems the State was facing over not paying the growers. It released Rs. 5 crores two days ago and agreed to release the remaining amount in a few days. It is expected that the growers could be paid in a week or 10 days.

The Karnataka State Food and Civil Supplies Corporation was the agent of the FCI in procuring maize from various parts of the State particularly from the northern districts. A record 3.75 lakh tonnes of the produce was procured under the market intervention programme. In March, a maximum of 1.26 lakh tonnes was procured in the final stages of the programme. Over Rs. 64 crores was due to the State from the final procurement apart from the costs involved in storage, handling and transport of the produce.

Last year, the Centre procured around 4.2 lakh tonnes of maize from various States during the kharif season. Eighty- five per cent of this was from Karnataka. Initially, the Centre agreed to purchase only 30,000 tonnes since it had a huge buffer stock. It categorically stated that the procurement would close on February 28. However, following repeated requests by the State Government, the deadline was extended to March 31.

Mr. Inamdar, who held a meeting with senior officials of the Department of Food and Civil Supplies Department here on Friday, said the State Government had already released some funds to pay maize growers in certain regions of the State. This was from the ``revolving fund'' since maize growers were agitated over the long delay in payment of dues. In certain pockets of the State, the growers were even demanding return of their produce since they would get better prices in the open market.

Meanwhile, the Government is now facing another problem as the price of ragi collapsed over the past two months in the open market. Despite market intervention, the price has not increased. The summer crop is being harvested and the problem will aggravate. The problem with coarse grains such as ragi is that unlike wheat or rice, it is not the staple diet of a major section of the population. It has no demand in other parts of the country.

Send this article to Friends by E-Mail

Section  : Southern States
Previous : Transporters threaten indefinite strike from
           tomorrow
Next     : 'Leading Kannada film personality will be asked
           to inaugurate IFFI'