Centre must withdraw direction to stop paddy bonus in Kerala: LDF convener

LDF convener T P Ramakrishnan on Saturday demanded that the Centre immediately withdraw its direction given to discontinue the additional incentive bonus provided by the Kerala government for paddy procurement.

In a statement, Ramakrishnan said the Union Finance Ministry's Expenditure Secretary has written to the state chief secretary seeking withdrawal of the additional bonus given by states.

The Centre has taken the stand that the additional incentive leads to excess procurement of wheat and rice across the country, creating a financial burden on the public exchequer, he said.

According to him, the letter also states that the additional bonus encourages higher cultivation of foodgrains and leads to increased production.

Ramakrishnan alleged that such an intervention would weaken the country's food self-sufficiency.

The state government provides an additional incentive of Rs 6.31 per kg for paddy procurement, he said, adding that the Centre's share is often not released on time, creating serious difficulties.

In such a situation, the demand to withdraw the state's additional incentive is unacceptable, he said.

The LDF convener urged strong protests against the move and demanded the immediate withdrawal of the Centre's decision, stating that it poses a threat to the country's food security.

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 on wheat and paddy.

The letter also requested that the focus be shifted towards incentives to promote the cultivation of pulses, oilseeds and millets, in line with national priorities on nutrition security, Atmanirbharta and sustainable agriculture.

It stated that bumper production of wheat and paddy had resulted in wheat and rice stocks far exceeding the requirements for the Public Distribution System, buffer norms, and other welfare and contingency needs.

"The surplus continues to rise year after year, creating a significant and recurring burden on the public exchequer," the letter said.

Kerala Agriculture Minister P Prasad had rejected the Centre's suggestion, terming it "unacceptable", and said no compromise would be made on paddy cultivation.