FM counters Stalin, denies curbs on paddy incentives
In his speech on Friday, Stalin said that the finance ministry had sent a letter to the Tamil Nadu government requesting it to stop the additional bonus given by the state to farmers. He added that the DMK government will ensure fair price despite the BJP-led Union government’s advice against incentives for paddy farmers.
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In response, the finance minister shared on He added that his aim is to promote crop diversification and increase self-sufficiency in pulses, oilseeds and other crops.
Sitharaman said any declaration of bonuses above the minimum support price (MSP) remains “entirely within the prerogative of state governments” and “no one has taken away that power”.
Separately, the finance ministry said its letter dated January 9 was not a directive but a recommendation to the states. The ministry added that it is trying to discourage the practice of providing additional bonuses at the state level beyond MSP for purchase of crops like this.
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According to the ministry, such increased incentives could inadvertently distort crop decisions and cause farmers to choose water- and input-intensive grains over more diverse crop options.
