FM counters Stalin, denies curbs on paddy incentives

New Delhi: Finance minister Nirmala Sitharaman on Sunday dismissed Tamil Nadu chief minister MK Stalin's allegation that the Union government had directed the state not to provide incentives for paddy cultivation, calling it "factually baseless, politically motivated, and a deliberate distortion designed to mislead the farmers of Tamil Nadu".

Stalin had said in a speech on Friday that the finance ministry had sent a letter to the Tamil Nadu government asking it to discontinue the additional bonus given by the state to farmers. He added that despite the BJP-led Union government's advisory against incentives to paddy farmers, the DMK government will ensure fair price.

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In response, the finance minister posted on X, "What was communicated to all state chief secretaries - not just Tamil Nadu - was a suggestion to align State bonus policies with national priorities." She added that the objective was to encourage crop diversification and improve self-sufficiency in pulses, oilseeds and other crops.

Sitharaman said that the declaration of any bonus over and above the minimum support price (MSP) remains "entirely the prerogative of state governments" and that "no one has taken that power away".

Separately, the finance ministry said that its letter dated January 9 was an advisory to states and not a directive. It sought to discourage the practice of providing additional state-level bonuses over and above the MSP for procurement of crops such as, the ministry added.

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According to the ministry, such incremental incentives can unintentionally distort cropping decisions, leading farmers to favour water- and input-intensive cereals over more diversified crop options.