Bengaluru: Karnataka food and civil supplies minister KH Muniyappa urged the Union Government to release ₹1,446.36 crore pending under the Minimum Support Price (MSP) reimbursement for the 2023–24 and 2024–25 procurement seasons, stating that the delay has put considerable strain on the State’s finances.
Muniyappa raised the issue during a review meeting of the food department chaired by Union minister for consumer affairs, food and public distribution Pralhad Joshi at Krishi Bhavan in New Delhi.
Also Read: Free medicines elude Karnataka’s poor amid healthcare failures
According to the state food and civil supplies department, Karnataka has been procuring food grains and paddy/custom milled rice (CMR) from farmers strictly in accordance with the guidelines of the Centre under the MSP scheme. The procured grains are being added to the Central Pool and distributed under the Targeted Public Distribution System (TPDS) with the approval of the Union Government.
“While the State has submitted claims as per the prescribed procedure, reimbursement of ₹1,446.36 crore towards provisional MSP dues for 2023–24 and 2024–25 is still pending. This is placing serious pressure on the State’s financial resources,” Muniyappa said.
Also Read: Karnataka draws roadmap to set up hi-tech hospitals in all districts
He pointed out that procurement operations for the 2025–26 season have already commenced, and as of January 31, 2026, over 2.86 lakh farmers have registered to supply their produce. Timely payment to farmers is critical to sustaining their trust in the MSP mechanism, he said.
“Availability of funds is essential to ensure prompt payment to farmers and smooth conduct of procurement operations. We have requested the Centre to release the pending dues at the earliest,” Muniyappa added.
Senior officials, including Government Secretary Kanagavalli and Food Corporation Director Jagadeesh, were present at the meeting.
Also Read: Fraser Town residents’ assoc appeals to stop annual Food Mela
BPL Criteria and Ration Card Revision
Separately, concerns have been raised in Karnataka over the recent revision of Below Poverty Line (BPL) ration cards under the National Food Security Act (NFSA). During a recent survey, around 7.7 lakh ration cards were identified as ineligible and shifted from the BPL category to the Above Poverty Line (APL) category.
The revision has triggered debate among activists and civil society groups, who argue that the income criteria used to determine BPL eligibility need urgent reconsideration.
Currently, the Central Government has fixed the annual income limit for BPL eligibility at ₹1.2 lakh. However, activists point out that daily wage workers earning ₹500 per day would earn approximately ₹1.8 lakh annually if employed consistently, thereby exceeding the threshold despite remaining economically vulnerable.
Also Read: BBMP gears up to give facelift to parks, green spaces in Bengaluru
“Income criteria must reflect ground realities. Many daily wage earners who cross ₹1.2 lakh annually still struggle to afford essential commodities and basic services. The eligibility norms should be revised before shifting large numbers of beneficiaries out of the BPL category,” said Rajesh R, a food rights activist.
With lakhs of families now moved to the APL category, stakeholders have urged both the State and Central governments to review the income ceiling and ensure that genuinely vulnerable households are not excluded from subsidised food benefits under the NFSA.
Also Read: After years of delay, BBMP issues ID cards to street vendors
The twin issues of MSP reimbursement and BPL eligibility are expected to remain key policy concerns as the procurement season progresses and debates around food security intensify.
