New Delhi [India], April 12 : Nirmala Sitharaman on Sunday dismissed Tamil Nadu Chief Minister MK Stalin's allegations that the Centre had asked the state to stop incentives for paddy cultivation, calling them "factually baseless" and a "deliberate distortion."
Responding to Stalin's remarks, Sitharaman said in a post on X that the Centre had merely suggested that states align their bonus policies with national priorities, such as encouraging crop diversification and achieving self-sufficiency in pulses and oilseeds. She emphasised that the declaration of a bonus over and above the Minimum Support Price (MSP) remains the prerogative of state governments.
Sitharaman accused Stalin of creating diversions to serve his "narrow, self-serving political interests" and urged him to adopt a positive approach and work in the national interest. "The farmers of Tamil Nadu deserve a government that works for their prosperity, not one that weaponises their anxieties for votes," she said.
Backing the Finance Minister's statement, the Ministry of Finance said that the communication sent to states was "an advisory to states and was not directive."
The ministry said a letter dated January 9, 2026, sent by the Department of Expenditure to all Chief Secretaries was meant "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."
Sitharaman also underlined that the Centre had not curtailed the powers of states, saying, "The declaration of a bonus over and above the Minimum Support Price has been, and remains, entirely the prerogative of State Governments. No one has taken that power away."
The Finance Ministry stressed that the communication reflected "a constructive & positive approach aimed at strengthening India's long-term food and crop security," adding that encouraging diversification was necessary to reduce overdependence on crops like wheat and paddy.
Explaining the rationale, the ministry said that when states offer additional bonuses on these crops, "it further encourages their cultivation, leading to reduced acreage under pulses, oilseeds, and millets, greater environmental stress... and higher import dependence."
The ministry also reiterated that the broader goal was to boost domestic production of key crops, noting that "expanding domestic production in pulses, edible oils, and oilseeds is essential... for farmer welfare" and to reduce reliance on imports.
It added that the Centre's approach integrates MSP support, infrastructure, and crop diversification measures, and warned that "any attempt to portray it as an imposition or to deliberately misread its purpose is a distortion of the record."
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