States advised, not directed, to promote pulses and millets: FinMin

By Ruchika Chitravanshi, Shine Jacob

The Department of Expenditure’s letter to state chief secretaries urging them to align their bonus policy to promote pulses, oilseeds and millets was an advisory, and not a directive, a press statement issued by the Finance Ministry said on Sunday. 

The statement was issued in context of a speech made by Tamil Nadu Chief Minister MK Stalin, calling the advisory a “treacherous act against the farmers”. 

In a post on social media, Finance Minister Nirmala Sitharaman said that the remarks made by Stalin, alleging 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 Tamil Nadu’s farmers. 

“The declaration of a bonus over and above the Minimum Support Price (MSP) has been, and remains, entirely the prerogative of State Governments. No one has taken that power away…CM Stalin is deliberately creating diversions to serve his narrow, self-serving political interests, instead of adopting a positive approach and working in the national interest,” Sitharaman said. 

“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 is not a burden on states; it is a shared responsibility that serves farmers, consumers and the country as a whole,” the finance ministry said.

Stalin said that DMK will scuttle any attempts by the Bharatiya Janata Party (BJP) and AIADMK to stop the incentive for paddy and would continue to ensure a fair price for the farmers. 

The finance ministry said that the letter issued by the Secretary, Department of Expenditure, on January 9, 2026, was reflective of a “constructive and positive approach aimed at strengthening India’s long-term food and crop security.” The government, it said, took a responsible and forward-looking position by encouraging greater crop diversification in the national interest and to protect both farmers’ interests and the country’s food security needs. 

“States and farmers across India have a long and rich tradition of cultivating pulses and oilseeds, and this letter aims to capitalise on this strength,” the press statement said. “In a period when self-reliance in key food crops has become increasingly important, it is imperative that the states and the Centre work towards making India self-reliant in pulses and oilseeds.” 

The finance ministry said that in many states, especially in northern India, crop production remains heavily skewed toward wheat and paddy. 

“When state governments announce an additional bonus over and above MSP for these crops, it further encourages their cultivation, leading to reduced acreage under pulses, oilseeds, and millets, greater environmental stress due to water- and fertilizer-intensive farming, and higher import dependence for essential crops like pulses and edible oilseeds,” the finance ministry said. 

Tamil Nadu is at present providing additional incentives to 3 million farmers, from ₹70 to ₹156 per quintal for fine variety and from ₹50 to ₹131 per quintal for common variety. This was part of an election promise by the DMK way back in 2021. In its poll promises for 2026, the DMK has offered to raise the MSP to ₹3,500 per quintal. 

Any decision on paddy is vital as the state has around 336,000 farmers actively selling paddy through the Direct Procurement Centres. There are also around 7.9 million total agricultural landholdings in the state.

“I have shocking news to share with you. Just as I returned to Chennai after campaigning in Srikazhi, Cuddalore, and Villupuram, officials showed me the letter asking us to reconsider providing the incentive [given over and above the Minimum Support Price fixed by the Centre]. Can anyone even think of this?” Stalin said in a campaign event in Thanjavur last week. 

The letter by the Centre also said that the announcement of an additional bonus on paddy and wheat over and above MSP by some states would cause higher sowing and production of these foodgrains. It added that wheat and paddy are comparatively water-intensive crops and their disproportionate cultivation increased groundwater depletion, biodiversity loss, and stubble burning. The letter further urged states to discontinue the bonus on wheat and paddy.

This article has been republished from The Business Standard.