The Union government has asked Kerala to withdraw the additional incentive bonus given for paddy procurement, citing surplus grain production across the country. The directive was issued by Union Expenditure Secretary V. Vualnam in a letter to Kerala Chief Secretary A. Jayathilak.

If implemented, the move could reduce the price received by paddy farmers in Kerala by over ₹6 per kilogram, raising concerns about a major impact on the state’s farming community.

The Centre said state-level bonuses for paddy and wheat encourage excessive cultivation, which requires more water and fertilisers than other crops. This, it warned, could worsen groundwater depletion, soil nutrient loss, biodiversity decline, and pose risks to public health and climate resilience.

The letter pointed out that India already has surplus stocks of rice and wheat for public distribution, while production of pulses and oilseeds remains low, forcing heavy imports. The Centre has therefore urged states to focus more on cultivating pulses, oilseeds, and small grains.

Currently, the Centre provides ₹23.69 per kg for paddy procurement, while Kerala offers an additional bonus of ₹6.31 per kg, which was increased from ₹5.20 in October.

Reacting to the move, LDF convener T.P. Ramakrishnan demanded that the Centre immediately withdraw the decision, warning that it would severely affect paddy farmers and Kerala’s agriculture sector.