AP CM Writes To Centre On Maize MSP Crisis

The move comes on the heels of a strong appeal from state agriculture minister K Atchannaidu, who highlighted the critical situation faced by farmers in the ongoing Rabi season.

According to official data, AP had a record maize cultivation this season, with the crop sown on approximately 4.83 lakh hectares, resulting in an estimated production of 37.61 lakh metric tonnes.
Despite this robust output, farmers are reeling under a steep fall in market prices, which are currently trading below the Minimum Support Price. With arrivals expected to continue until June 2026, officials fear the prices could dip further during the peak harvest period.

In his letter to the Centre, the CM has sought implementation of the Price Deficiency Payment scheme under the Market Intervention Scheme as a special case for Andhra Pradesh.

The major recommendations from the CM include allowing the national agricultural cooperative marketing federation (NAFED), in coordination with AP Markfed, to execute the scheme.

The state has sought a relaxation of norms, requesting that the entire 100 per cent of the financial loss be borne by the central government by deviating from the usual 50:50 cost-sharing ratio.

The state has urged the Centre to enhance the coverage from 25 to 100 per cent of the total maize production and allow the implementation of the scheme until June 2026.

Minister Atchannaidu had brought the issue to the CM’s notice, explaining that the surplus production has led to subdued trading activity in spot markets, leaving farmers vulnerable to exploitation by middlemen. The proposed scheme would ensure that farmers receive the difference between the MSP and the prevailing market rate directly, safeguarding their livelihoods.

With the Rabi season at its peak, the state government is keenly awaiting the Centre’s response to this urgent request, which is seen as a crucial step to stabilize prices and provide much-needed relief to the farming community.