Centre's Anti-Farmer Measures: Directs States to Withdraw Additional Financial Assistance

New Delhi: The Modi government is once again implementing measures that are seen as harmful to farmers. The central government has asked states to withdraw the additional financial assistance provided by them, in addition to the Minimum Support Price (MSP) set by the central government for paddy and wheat. This move is expected to significantly affect farmers' income.

In response to a question raised by MP John Brittas, the Ministry of Agriculture and Farmers Welfare confirmed that the Secretary of the Department of Expenditure, Ministry of Finance, had sent a letter to the Chief Secretaries on January 9, 2026. The letter asked states to stop the financial bonuses provided for crops such as rice and wheat, and to align their policies with those of the central government.

The letter stated that bonuses for crops like rice and wheat have been halted, and instead, crops like pulses, oilseeds, and similar products are being promoted. This new directive raises serious concerns about the central government's approach to farmers and the autonomy of states in supporting their agricultural sectors.

Farmers across the country are already grappling with rising production costs, inflation, and income insecurity. In such circumstances, the central government's suggestion to withdraw the additional support provided by states comes as a blow. The current MSP for rice is Rs 2,369 per quintal, but the Kerala government has been providing an additional bonus of Rs 631 per quintal, making the total Rs 3,000 per quintal for Kerala farmers.

If the central government's proposal to remove these bonuses is accepted, Kerala's farmers will lose this extra support, which will have a severe impact on their income. The Kerala government has expressed its disagreement with the proposal to remove these incentive bonuses. MP John Brittas has also urged the central government to reconsider any policy changes that could negatively affect farmers.