In a statement, the finance ministry said the January 9, 2026, letter from the Department of Expenditure Secretary, Ministry of Finance, to chief secretaries of states was an advisory and not a directive, to align their bonus policy to promote pulses, oilseeds, and millets.
“The communication to states reflects a constructive & positive approach aimed at strengthening India’s long-term food and crop security,” the ministry said, drawing attention to Tamil Nadu Chief Minister M K Stalin’s remarks on the matter.
The letter was written with the intent for states to align their agricultural policies with broader national priorities and complement them. Alignment with such goals is not a burden on states; it is a shared responsibility that serves farmers, consumers and the country as a whole, it added.
The ministry said the Government of India announced the minimum support price (MSP) for various crops to support farmers. However, in many states, especially in northern India, crop production remains heavily skewed toward wheat and paddy.
“When state governments announce an additional bonus over and above MSP for these crops, it further encourages their cultivation, leading to reduced acreage under pulses, oilseeds, and millets, greater environmental stress due to water, and fertilizer-intensive farming, and higher import dependence for essential crops like pulses and edible oilseeds,” it said.
“Thus, the Government of India has taken a responsible and forward-looking position by encouraging greater crop diversification in the national interest. The larger objective is to discourage monoculture of wheat in certain parts of northern India and paddy in several states across India. “By encouraging states to work towards sustainable agricultural practices that protect both farmers’ interests and national food security needs,” it said.
The ministry said expanding domestic production in pulses, edible oils, and oilseeds is essential not only for strategic and economic reasons, but also for farmer welfare.
“Domestic production of pulses, oilseeds, and edible oil will reduce reliance on imports that are often exposed to international uncertainty, supply-chain disruptions, and price volatility, while strengthening nutritional security and promoting a more balanced and resilient crop pattern in the country,” the ministry added.