CHENNAI: Union Finance Minister Nirmala Sitharaman on Sunday rejected allegations by Chief Minister MK Stalin that the centre had directed Tamil Nadu to stop incentives for paddy cultivation, asserting that no such instruction was issued. Responding to Stalin’s remarks made during an election campaign in Thanjavur, Sitharaman said the claims are “factually baseless, politically motivated, and a deliberate distortion aimed at misleading farmers”.
In a statement, the Union Finance Ministry also clarified that the January 9, 2026 communication from the Department of Expenditure to state chief secretaries was only an advisory and not a directive to withdraw incentives for paddy cultivation.
Sitharaman said the centre had merely suggested that states align bonus policies with broader national priorities such as promoting pulses, oilseeds and millets to improve nutritional security and achieve self-reliance.
“Centre’s suggestion to states is rooted in a forward-looking vision to encourage crop diversification and help farmers tap better price realisation where domestic demand far outstrips supply,” she said. She pointed out that announcing bonuses over and above the Minimum Support Price (MSP) remains entirely within the prerogative of state governments. “No one has taken that power away,” the minister added.
Accusing Stalin of creating diversions for “narrow, self-serving political interests”, Sitharaman said, “When the nation seeks solutions, the DMK manufactures controversies.” She added that farmers in Tamil Nadu deserve policies that support their prosperity rather than “weaponising anxieties for votes”.
The finance ministry also highlighted measures taken to promote crop diversification, including missions on pulses and edible oils, MSP support favouring these crops, and schemes such as PM-KISAN and PM Fasal Bima Yojana. Citing the Economic Survey 2025-26, it said edible oil import dependence declined from 63.2% in 2015-16 to 56.25% in 2023-24.
Between 2014-15 and 2024-25, oilseed cultivation area increased by over 18%, production by nearly 55%, and productivity by around 31%. Sitharaman said the NDA government would continue working for farmers across states “regardless of which party is in power” and would not be deterred by what she termed “manufactured outrage.”