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Sitharaman, Stalin Clash on Farm Bonus Advisory

Published 13 April 2026

A heated exchange unfolded on Monday between Union Finance Minister Nirmala Sitharaman and Tamil Nadu Chief Minister M.K. Stalin over a central government communication urging states to adjust their agricultural bonus policies. The dispute centers on a January 9, 2026, letter from the Department of Expenditure in the Finance Ministry, sent to chief secretaries across all states, which Stalin interpreted as a call to discontinue Tamil Nadu's additional bonus on paddy above the minimum support price.

Stalin, addressing supporters during a campaign event in Thanjavur district last Friday, described the letter as a directive to review and potentially end the state's paddy bonus scheme, citing its role in boosting production. He challenged Sitharaman to release the document publicly, stating that it explicitly supported his position and that he had not misrepresented its contents. "In the letter your Ministry sent to the Chief Secretary of Tamil Nadu, it is clearly stated that since the state's additional bonus for paddy has led to bumper production, the state government should consider discontinuing the bonus," Stalin said in a post on X.

Sitharaman rejected the characterization as...

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