Top News

Agriculture –  Kerala Chief Minister Pinarayi Vijayan has sharply criticised the Union government over its reported insistence that the state withdraw its Rs 6.31 per kilogram paddy bonus, describing the move as unfair to farmers and inconsistent with the Centre’s broader economic approach.

State Alleges Double Standards on Farmer Support

In a statement shared on social media, Vijayan said the demand to discontinue the additional incentive for paddy procurement undermines the interests of farmers who contribute directly to food security. He argued that while large corporate loans are frequently written off, support extended to small-scale agricultural producers is being portrayed as an unnecessary burden on public finances.

According to the Chief Minister, branding food production as a financial liability sends the wrong message at a time when farmers are grappling with rising costs and market uncertainties. He maintained that the paddy bonus is a modest but essential measure to ensure fair compensation for cultivators across the state.

Vijayan also questioned whether the Centre’s stance could signal broader policy shifts in the agricultural sector, particularly in the context of evolving trade discussions. He urged the Union Finance Minister to release pending procurement funds owed to Kerala and to refrain from what he described as penalising the state for supporting its farming community.

Budget Criticism Rekindles Centre-State Friction

The latest remarks come days after Vijayan voiced strong objections to the Union Budget for 2026–27. He contended that several longstanding demands raised by Kerala were not addressed in the financial plan.

Among the projects he cited were the establishment of an AIIMS facility in the state, the approval of seven proposed high-speed rail corridors, and a special development package for Vizhinjam Port. The Chief Minister said the absence of these provisions reflects a continued pattern of neglect toward Kerala.

He further criticised the decision not to revise the Finance Commission’s devolution formula, noting that the continuation of the existing 41 percent allocation does not adequately respond to the state’s fiscal concerns. According to him, this approach weakens the spirit of cooperative federalism and places additional pressure on Kerala’s public finances.

Concerns Over Fiscal Stability

Vijayan also pointed to the discontinuation of revenue deficit grants as a major concern. He argued that such grants have played a crucial role in maintaining fiscal stability, particularly for states with structural financial challenges.

Citing budget figures, the Chief Minister said Kerala’s total grants have seen a significant reduction over recent years. He noted that allocations have fallen from Rs 2.2 lakh crore in 2021 to Rs 1.4 lakh crore in the current budget cycle. In his view, this decline limits the state’s capacity to fund welfare initiatives and development projects.

The Chief Minister characterised the Union government’s economic approach as favouring corporate interests over ordinary citizens. He asserted that policy decisions reflected in the budget could deepen financial strain for vulnerable sections of society.

Political and Economic Implications

The disagreement over the paddy bonus and budget allocations has once again highlighted tensions between the Centre and Kerala’s Left Democratic Front government. Agricultural procurement, fiscal transfers, and development funding have remained recurring points of debate in recent years.

While the Union government has yet to formally respond to Vijayan’s latest remarks, the issue is expected to draw attention in upcoming policy discussions, especially as states assess the practical implications of the new budget provisions.

For farmers in Kerala, the immediate concern remains the continuity of procurement incentives and timely payment of dues. The state government has indicated that it will continue to press for the release of pending funds while defending its decision to provide additional support to paddy cultivators.

As discussions unfold, the dispute underscores the broader challenges of balancing national fiscal priorities with regional economic needs, particularly in sectors as vital as agriculture.