L-R: Nirmala Sitharaman and P Shanmugam  
Tamil Nadu

CPM leader cites Union Finance Ministry letter in MSP bonus row

P Shanmugam said Nirmala Sitharaman’s claim that the Centre had not barred incentive bonuses for paddy procurement was contradicted by a letter issued by the Department of Expenditure, Union Finance Ministry, to the Tamil Nadu Chief Secretary on January 9, 2026.

DTNEXT Bureau

CHENNAI: Joining the ongoing exchange between Chief Minister MK Stalin and Union Finance Minister Nirmala Sitharaman over the issue of additional bonus on minimum support price for paddy and wheat, Communist Party of India (Marxist) State secretary P Shanmugam on Monday cited official correspondence to counter the Union Minister’s remarks.

P Shanmugam said Nirmala Sitharaman’s claim that the Centre had not barred incentive bonuses for paddy procurement was contradicted by a letter issued by the Department of Expenditure, Union Finance Ministry, to the Tamil Nadu Chief Secretary on January 9, 2026.

He said he had shared the letter in a post on X to substantiate his contention that the Centre’s position effectively constrained State governments from announcing additional bonuses over and above the minimum support price.

Questioning the Union Minister’s remarks, he said it was inappropriate for a person holding such a high office to make statements that were inconsistent with official communication.

Also read:Centre asked us to consider discontinuing bonus for paddy: TN CM; Sitharaman hits back

He reiterated that the Centre had failed to ensure a remunerative price for paddy and said that, at the very least, it should not prevent State governments from extending additional financial support to farmers.

He added that any attempt to obscure facts would eventually be exposed.

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