Rajeev Chandrasekhar writes to Sitharaman on Kerala MSP bonus

Kerala BJP president Rajeev Chandrasekhar has written to Union Finance Minister Nirmala Sitharaman seeking the withdrawal of a directive issued by the Union Ministry of Finance asking the state government to discontinue the additional bonus paid to paddy farmers.The issue has already triggered a political row in the state, with the ruling Left Democratic Front (LDF) government and Chief Minister Pinarayi Vijayan strongly criticising the Centre’s move, terming it hostile to Kerala and its farming community.
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 for paddy procurement. The letter cited excess rice stocks beyond the requirement for the Public Distribution System and described the additional bonus as a recurring burden on the public exchequer.
In his letter to Sitharaman, Chandrasekhar alleged that the Kerala government had largely neglected the concerns of paddy farmers, particularly with respect to rising production costs, procurement mechanisms and marketing support. He said the state had failed to provide timely and adequate financial assistance, forcing many farmers to rely on private moneylenders to meet cultivation expenses, leading to mounting indebtedness and financial distress.

Thiruvananthapuram | Kerala BJP President Rajeev Chandrasekhar writes a letter to Union Finance Minister Nirmala Sitharaman requesting to exclude Kerala from the Centre’s advisory on discontinuing Minimum Support Price (MSP) bonus for paddy and wheat.

Source: BJP State Office pic.twitter.com/EEdqlPCD8d

— ANI (@ANI) February 9, 2026

The BJP state president further pointed out that the Kerala government had 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, he said, 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.Chandrasekhar said 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 does not accurately reflect the state’s situation and requested that Kerala be considered separately in view of its specific agricultural, ecological and food security considerations.Even as Chandrasekhar accused the state government of failing to adequately support paddy farmers, Chief Minister Vijayan and Agriculture Minister P Prasad have earlier maintained that Kerala provides an additional ₹6.31 per kilogram as a bonus for paddy procurement. Vijayan has also expressed apprehension that the Centre’s directive could be a first step towards opening the domestic market to American agricultural products as part of a proposed India-US trade agreement.In its communication to the state government, the Union Ministry of Finance had urged Kerala to shift its focus towards incentivising the cultivation of pulses, oilseeds and millets, in line with national priorities on nutrition security, Atmanirbharta and sustainable agriculture.