Centre must withdraw direction to stop paddy bonus in Kerala: LDF convener

LDF convener T P Ramakrishnan on Saturday demanded that the Centre immediately withdraw its direction given to discontinue the additional incentive bonus provided by the Kerala government for paddy procurement.

In a statement, Ramakrishnan said the Union Finance Ministry's Expenditure Secretary has written to the state chief secretary seeking withdrawal of the additional bonus given by states.

The Centre has taken the stand that the additional incentive leads to excess procurement of wheat and rice across the country, creating a financial burden on the public exchequer, he said.

According to him, the letter also states that the additional bonus encourages higher cultivation of foodgrains and leads to increased production.

Ramakrishnan alleged that such an intervention would weaken the country's food self-sufficiency.

The state government provides an additional incentive of Rs 6.31 per kg for paddy procurement, he said, adding that the Centre's share is often not released on time,