Centre asked us to consider discontinuing bonus for paddy: TN CM; Sitharaman hits back
Chennai: Tamil Nadu Chief Minister M K Stalin on Monday said that the Centre had asked the state to review its existing bonus policy and consider discontinuing it on paddy and asked Union Finance Minister Nirmala Sitharaman whether she was willing to place the letter in this regard in public domain. Sitharaman, however, said the chief minister's allegation that the union government directed Tamil Nadu not to provide incentives for paddy cultivation "is factually baseless, politically motivated, and a deliberate distortion designed to mislead the farmers of Tamil Nadu." What was communicated to all state Chief Secretaries - not just Tamil Nadu - was a suggestion to align state bonus policies with national priorities, she said in a post on 'X' citing the letter dated January 9, 2026, asking the states to align their bonus policy to promote pulses, oilseeds and millets, in line with the national priorities for nutritional security, Aatmanirbharta (self-reliance) and sustainable agriculture. "The letter was an advisory to states and was not a directive," she said.
Sitharaman also took exception to Stalin's recent speech referring to a letter issued by the Department of Expenditure, Ministry of Finance with regard to the bonus provided by state governments and insisted that the said letter from the Union Secretary, Department of Expenditure, Ministry of Finance, to all state Chief Secretaries was to "align their bonus policy to promote pulses, oilseeds and millets, in line with the national priorities for nutritional security, Aatmanirbharta (self-reliance) and sustainable agriculture." Tagging the finance minister, Stalin in his post said, "In the letter your Ministry sent to the Chief Secretary of Tamil Nadu, it is clearly stated that since the state’s additional bonus for paddy has led to bumper production, the state government should consider discontinuing the bonus." He had not stated anything that was not in that letter. "Nor is there any need for me to," the CM stressed and added, "While you have stated in your tweet that it is up to the state governments to consider bonus above MSP to paddy farmers and nobody has taken away such rights, the letter sent to us clearly asked us - to review the existing bonus policy of the state government and consider discontinuing the bonus on paddy. If your current claim is true, will you place that letter in the public domain?" Sitharaman argued that the letter was written with the intent for states to align their agricultural policies with broader national priorities and complement them. Alignment with such goals was not a burden on states; it was a shared responsibility that served farmers, consumers and the country as a whole, she said, and added, "Any attempt to portray it as an imposition or to deliberately misread its purpose is a distortion of the record."
