"Finance Ministry must stop penalising Kerala for supporting its farmers": Kerala CM

Feb 09, 2026

Thiruvananthapuram (Kerala) [India], February 9 : Kerala Chief Minister Pinarayi Vijayan criticised the Centre, accusing it of hypocrisy over its "demand to scrap the state's Rs 6.31 per kg paddy bonus".
In a post on X, Vijayan said it was unacceptable that corporate debts are routinely waived while a modest incentive for farmers who produce food is portrayed as a burden.
"The Union Govt's demand to scrap Kerala's ₹6.31/kg paddy bonus, labeling food production a 'liability', is an affront to our farmers. While corporate debts are waived, a small incentive for those who feed us is viewed as a burden- this hypocrisy is unacceptable. Is this the first step toward opening our markets for US agricultural products under the new trade deal? Finance Minister must stop penalising Kerala for supporting its farmers and release our pending procurement funds immediately," 'X' post from Vijayan read.
Earlier, on February 1, Vijayan expressed strong disapproval of the Union Budget 2026-27, stating that it reflects continued neglect and discrimination against the state.
"The Union Budget presented today clearly exposes the Centre's persistent disregard for Kerala. Key demands long raised by the state -- including AIIMS, seven high-speed rail corridors, and a special package for the development of Vizhinjam Port -- have all been completely ignored. The refusal to increase the Finance Commission's devolution share and the continuation of the existing 41% allocation undermine federal principles. Union Ministers from Kerala must answer for this neglect," Vijayan said.
The Chief Minister added that the budget, driven entirely by neo-liberal economic logic, aims to enrich corporates while pushing ordinary people into deeper poverty.
He highlighted that the discontinuation of revenue deficit grants threatens the state's financial stability. According to Vijayan, Kerala's total grants have declined sharply--from Rs 2.2 lakh crore in 2021 to Rs 1.4 lakh crore in the current budget.