Stalin, Sitharaman spar over Centre’s letter on paddy bonus policy

The exchange highlights ongoing political friction over farm policy and Centre–state relations in Tamil Nadu.
CM Stalin alleged that the Union government had written to Tamil Nadu suggesting a review of its existing bonus scheme for paddy and advising that it be discontinued.
CM Stalin alleged that the Union government had written to Tamil Nadu suggesting a review of its existing bonus scheme for paddy and advising that it be discontinued.Photo | IANS
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CHENNAI: A political showdown erupted on social media on Monday between Chief Minister M K Stalin and Union Finance Minister Nirmala Sitharaman over the CM’s charge against the union government on the advisory to Tamil Nadu to reconsider its bonus policy of support price for paddy.

Stalin, during an election campaign in Thanjavur two days ago, alleged that the union government had directed Tamil Nadu not to provide incentive for paddy cultivation.

After Stalin challenged her to make the union government’s advisory to the state public, Sitharaman shared the letter on Monday on her ‘X’ page, maintaining that it called for “constructive, continuous and positive engagement” with stakeholders to ensure food security.

She accused the DMK of trying to project itself as the protector of farmers and Tamil people and blamed the CM of trying to create a divide between the centre and the states with false narratives.

Stalin and DMK alliance partners argued that the letter indicated an attempt by the union government to reduce the overall remuneration paid to paddy farmers by discouraging state-level bonuses. “A lengthy explanation followed by the release of the letter has only exposed your own falsehood,” the CM said in his response to the finance minister’s post.

Stalin disputes claim of consensus among states on paddy bonus

“Stalin also cited Kerala Chief Minister Pinarayi Vijayan’s remarks to contest the centre’s claim of consensus among states, asserting that there was no agreement to withdraw additional bonuses. Pinarayi had described the centre’s suggestion to scrap Kerala’s paddy bonus as an “affront to farmers”.

The communication sent by the union finance ministry to Tamil Nadu and other states in February had noted that bumper production of wheat and paddy has resulted in stocks exceeding the requirements of the Public Distribution System, buffer norms, and contingency needs.

It also flagged environmental concerns, stating that these crops are relatively water-and input-intensive and urged states to shift focus towards pulses, oilseeds and millets in line with national priorities of nutritional security, self-sufficiency and sustainable agriculture.

In her response to the CM’s charge, the FM emphasised the need to reduce India’s dependence on imports of essential food items. She said boosting domestic production of pulses and oilseeds was both an economic and strategic imperative, pointing to reliance on imports of palm oil and pulses.

She also argued that farmers could benefit from better prices in crops where there is a supply-demand gap, and accused the CM of overlooking farmers’ interests.

She said the shift from paddy and wheat would improve nutritional security through access to protein-rich crops and enhance economic stability by reducing the edible oil import bill.

Describing the communication as an invitation for shared responsibility, she said most states had responded in the spirit of cooperative federalism. “Any CM with even a passing commitment to national interest would welcome this,” she said.

Union Minister Piyush Goyal, who is in charge of the BJP’s Tamil Nadu campaign, on Monday said paddy procurement had increased from 10 lakh tonnes under the Congress to 48 lakh tonnes under the BJP-led union government.

Addressing reporters after a meeting with party functionaries in Pudukkottai, he reiterated that procurement from delta farmers had risen sharply after the BJP came to power at the centre.

Supporting the CM’s stand, CPM Tamil Nadu secretary P Shanmugam on Monday stated that while the centre fails to ensure adequate MSP, it should not prevent states from extending additional support. He also accused Nirmala Sitharaman of misleading the public.

Wading into the debate, PMK president Anbumani Ramadoss, an ally of the BJP, accused the CM of making “baseless allegations”.In March 2026, Rajya Sabha MP John Brittas raised the issue in Parliament, noting that paddy farmers in Kerala receive Rs 3,000 per quintal, including Rs 631 as a state bonus. He warned that withdrawing the incentive would result in a direct loss of income for farmers.

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