Thiruvananthapuram, LDF convener TP Ramakrishnan on Saturday demanded that the Center immediately withdraw its directive to stop additional incentive bonus given by the Kerala government for paddy procurement.
Center to withdraw state orders on paddy bonus stop: LDF convenerIn a statement, Ramakrishnan said that the Expenditure Secretary of the Union Finance Ministry has written to the chief secretaries of the states to withdraw the additional bonus paid by the states.
The Center has taken the stand that additional incentives lead to excess procurement of wheat and rice across the country, which creates a financial burden on the government exchequer, he said.
According to him, the letter also stated that the additional bonus encourages higher cultivation of food grains and leads to increased production.
Ramakrishnan alleged that such intervention would undermine the country’s food self-sufficiency.
The state government provides an additional incentive ₹6.31 per kg for paddy collection, he said, adding that the central portion is often not released on time, causing serious inconvenience.
In such a situation, the demand of withdrawal of additional incentives of the state is not acceptable, he said.
The LDF convener called for strong protests against the move and demanded an immediate withdrawal of the Centre’s decision, saying it posed a threat to the country’s food security.
On January 9, Union Finance Ministry Secretary V Vualnam wrote to Kerala Chief Secretary A Jayathilak, asking the state to review its existing bonus policy and consider ending additional incentives on wheat and paddy.
The letter requested to focus on incentives to promote cultivation of pulses, oilseeds and millets in line with national priorities of nutrition security, self-reliance and sustainable agriculture.
It stated that bumper production of wheat and rice resulted in stocks of wheat and rice exceeding the public distribution system, buffer rules and other welfare and ancillary requirements.
“The surplus continues to grow year after year, creating a significant and recurring burden on the government exchequer,” the letter said.
Kerala Agriculture Minister P Prasad rejected the Centre’s suggestion, calling it “unacceptable” and said there would be no compromise on paddy cultivation.
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