Kerala: Rajeev Chandrasekhar writes to Nirmala Sitharaman seeking withdrawal of directive on paddy bonus

Thiruvananthapuram: Kerala BJP president Rajeev Chandrasekhar has written to Union Finance Minister Nirmala Sitharaman seeking withdrawal of the direction issued by the Union Ministry of Finance to the state government to discontinue the additional bonus given to paddy farmers.

The LDF government and Kerala Chief Minister Pinarayi Vijayan have already come out criticising the direction, describing it as the Centre’s hostile attitude towards farmers and the state.

On January 9, V Vualnam, Secretary (Expenditure) in the Union Ministry of Finance, wrote to Kerala Chief Secretary A Jayathilak, asking the state to review its existing bonus policy and consider discontinuing the additional incentive, citing that rice stocks had exceeded the requirement for the Public Distribution System, creating a significant and recurring burden on the public exchequer.

In his letter addressed to Sitharaman, Chandrasekhar alleged that the state government largely neglected the concerns of paddy farmers, particularly regarding production costs, procurement mechanisms, and marketing support.

"The state government has failed to provide timely and adequate financial support to paddy farmers. As a result, many farmers are compelled to depend on private moneylenders to meet cultivation expenses, leading to increased indebtedness and severe financial stress," he said.

The BJP state president also said the Kerala government has not announced any additional bonus over and above the Minimum Support Price (MSP) for paddy in the manner followed by certain surplus-producing states.

Paddy procurement in Kerala operates under a distinct framework shaped by unique agro-climatic conditions, small landholdings, declining production levels and the objective of sustaining cultivation primarily for food security rather than surplus generation, he said.

According to Chandrasekhar, Kerala has witnessed a steady and long-term decline in paddy acreage and production over the decades and is not a surplus state contributing to excess central stocks.

"The issues cited in the said communication, such as surplus production, excess central stocks and groundwater depletion, are technically and substantively inapplicable to Kerala’s agricultural realities," he said.

He added that including Kerala alongside surplus-producing states may not accurately reflect the situation in the state and requested that it be considered separately in view of its specific agricultural, ecological, and food security considerations.

Even as Chandrasekhar alleged that the Kerala government had failed to provide timely and adequate financial support to paddy farmers, Chief Minister Vijayan and Agriculture Minister P Prasad have earlier maintained that the state provides an additional Rs 6.31 per kilogram for paddy procurement.

Vijayan had also expressed apprehension that the directive was the first step towards opening the market to American agricultural products as part of an Indo-US trade agreement.

In its letter to the state government, the Ministry of Finance had urged that the focus be shifted towards incentives to promote the cultivation of pulses, oilseeds and millets, in line with national priorities on nutrition security, Atmanirbharta and sustainable agriculture.