Andhra Pradesh Chief Minister N. Chandrababu Naidu has urged Union Agriculture Minister Shivraj Singh Chouhan to step in and support maize farmers facing falling prices, amid concerns of large-scale distress sales.
In a letter to the Centre, Naidu flagged that a bumper maize harvest during the ongoing Rabi season has pushed market prices below the Minimum Support Price (MSP), currently fixed at Rs 2,400 per quintal for 2025–26. He said that prices could decline further as peak arrivals continue until June, intensifying financial stress on farmers.
According to official estimates, maize has been cultivated on nearly 5 lakh acres in the state this season, with production expected to reach around 38 lakh tonnes. The surge in output, coupled with subdued demand, has led to a glut in the market, forcing many farmers to sell below remunerative levels.
Call for Price Deficiency Payment Scheme
To address the crisis, Naidu has proposed the implementation of the Price Deficiency Payment Scheme (PDPS) under the Market Intervention Scheme. He suggested that procurement and compensation be carried out through agencies such as NAFED and AP Markfed.
Under the proposed mechanism, farmers would receive direct compensation for the gap between the MSP and prevailing market prices, ensuring they do not incur losses.
The Chief Minister has also sought special consideration for Andhra Pradesh, requesting that the Centre bear 100 percent of the financial burden instead of the existing cost-sharing arrangement. Additionally, he has urged that the scheme’s coverage be expanded from 25 percent to the entire maize production and extended till June 2026 to cover the peak marketing season.
Distress Sales and Farmer Concerns
Many farmers, facing urgent cash needs, are resorting to distress sales at prices significantly below MSP. The situation could worsen as arrivals increase in the coming months.
The issue reflects a broader trend seen in other states as well, where bumper harvests have led to price crashes, exposing gaps in procurement and market support systems. With the harvest season underway, lakhs of maize growers are now looking to the Centre for immediate relief measures.