Climate-resilient planning to fair procurement policies, stronger land rights, and irrigation infrastructure reflect the aspirations of Tamil Nadu’s farmers.
Published Mar 12, 2025 | 9:00 AM ⚊ Updated Mar 12, 2025 | 9:00 AM
Tamil Nadu boasts of having 6.34 million hectares under cultivation, with rice being the major food grain. (Wikimedia Commons)
Synopsis: A well-planned Budget that incorporates expert recommendations will not only secure the livelihoods of millions of farmers but also strengthen Tamil Nadu’s contribution to India’s food security.
Tamil Nadu stands among the pioneering states in India to introduce a dedicated agriculture Budget, underscoring its commitment to the agricultural sector.
This initiative aims to address the unique challenges faced by farmers and promote sustainable agricultural practices. Other states, such as Karnataka, have also implemented similar dedicated Budgets to focus on agricultural development.
Agriculture plays a pivotal role in Tamil Nadu’s economy, contributing approximately 13% to the state’s Gross State Domestic Product (GSDP) as of 2022. The state boasts 6.34 million hectares under cultivation, with rice being the major food grain.
The Cauvery Delta region, often referred to as the “Rice Bowl of Tamil Nadu,” is central to this production.
Additionally, the state is a leading producer of bananas, coconuts, sugarcane, and various spices, including being the top producer of oilseeds, tapioca, cloves, and flowers in the country.
In the 2024 Agriculture Budget, the government allocated funds to various schemes aimed at enhancing agricultural productivity and supporting farmers. These initiatives included:
The 2025 Agriculture Budget is anticipated to be presented by MRK Panneerselvam, the Minister for Agriculture and Farmers’ Welfare in Tamil Nadu. His leadership is expected to focus on addressing both longstanding and emerging challenges in the agricultural sector.
According to R Gopinath, Principal Scientist at the MS Swaminathan Research Foundation (MSSRF), Tamil Nadu’s diverse cropping system makes it uniquely vulnerable to climate change.
Unlike states that focus on a few key crops, Tamil Nadu cultivates a wide range, with paddy accounting for 35% of total cultivation and the remaining 65% consisting of traditional and horticultural crops.
Given this diversity, financial planning must accommodate the effects of erratic weather patterns.
“The Mannuyir Kaathu, Mannuyir Kaappom scheme, which aims to distribute traditional seeds, saw minimal implementation last year. This time, the initiative must be expanded to cover a wider range of fields,” Gopinath said.
He also called for improved soil-testing infrastructure and policy-level reforms to enhance financial assistance under the Union government’s crop insurance scheme, which currently offers inadequate compensation per acre.
Sami Natarajan, General Secretary of the Tamil Nadu Farmers’ Association, highlighted the long-standing demand for land rights among landless farmers.
“So far, around 4,18,246 acres have been distributed, but more fallow land must be allocated, and land titles (patta) should be given to farmers already cultivating on government lands,” he demanded.
Tamil Nadu has significant water storage capacity, with 17 major irrigation projects, 84 dams, and 41,948 lakes and ponds. However, Natarajan emphasised the need for systematic desilting and maintenance to maximise storage.
With the Mettur Dam currently at 110 feet, experts urged the government to ensure early monsoon irrigation for kuruvai paddy and announce a statewide desilting scheme.
One of the key concerns both experts raised was the Minimum Support Price (MSP) and procurement policies.
Natarajan cautioned against the Union government’s attempts to introduce the National Consumer Cooperative Federation (NCCF) as an intermediary for paddy procurement, which he believed, could lead to privatisation.
“The Tamil Nadu Civil Supplies Corporation (TNCSC) must remain the sole procuring agency to protect farmers from market exploitation,” he insisted.
Additionally, he called for an increase in support price for tapioca farmers, who have seen prices plummeting to ₹5,000 per tonne from ₹16,000 per tonne last year.
Similarly, Natarajan urged the state government to provide ₹3,000 per quintal for paddy and ₹5,000 per tonne for sugarcane above the Union government’s MSP. He also demanded a State Advised Price (SAP) for sugarcane to ensure better farmer returns.
Gopinath also underscored the need for both the state and Union governments to work together to find a solution regarding MSP.
Natarajan called for a fixed minimum price for rubber, similar to one existing in Kerala.
“Despite land allocation, the Rubber Research Centre in Kanniyakumari remains non-functional and should be made operational immediately,” he demanded.
On tea and coffee pricing, he urged the state to set the price of green tea leaves at ₹5.35 per kg and implement a “Carbon Neutral Coffee” procurement initiative, offering small and medium coffee farmers additional incentives of ₹10 per kg.
He also advocated the expanding ration shop sales of coconut oil beyond the initial five districts and recommended continuous copra procurement by the Union government.
Tamil Nadu, despite being a major rice producer, still relies on storage warehouses and rice mills built in the 1960s. While modernisation plans have been announced, Gopinath questioned their execution.
Natarajan pointed out the pathetic state of cooperative-run sugar mills in Madurai, Amaravathi, Ambur, and NPKR.
“These mills must be revived, and staffing shortages in functioning mills must be addressed immediately,” he urged.
He also recommended the setting up of an Agricultural Engineering College and Research Centre in the delta region to drive farm mechanisation and research.
While Tamil Nadu promotes millet cultivation to tackle nutritional deficiencies, Gopinath called for structured policies to track cultivation, procurement, and distribution.
He also stressed that technological advancements, such as drones, must be accessible to small farmers.
“Tractors transformed Indian agriculture because they were affordable. Similarly, if drones are to be useful, their cost and usability for small farmers must be considered,” he said.
Farmers practicing natural farming should receive three-year subsidies to encourage the transition. Furthermore, urban residents should be encouraged to adopt rooftop vegetable gardening, with seed distribution managed by the Agriculture Department, Natarajan suggested.
The recent directive restricting livestock grazing near forest borders has been deemed impractical.
Natarajan insisted that “instead of enforcing such restrictions, the government must find long-term solutions to mitigate crop damage by wild animals, particularly wild boars.”
Additionally, he strongly opposed involuntary land acquisition for industrial projects on fertile agricultural land.
“Farmers cultivating in forest areas for generations must be granted land titles under the Forest Rights Act of 2006 instead of being evicted,” he demanded.
Natarajan warned against the Union government’s National Policy Framework for Agricultural Markets (NPFAM), arguing that it could lead to market liberalisation that disadvantages Tamil Nadu’s farmers.
He called on the state government to pass a resolution in the Tamil Nadu Assembly rejecting NPFAM.
Natarajan criticised the existing scheme, stating, “The Union government’s crop insurance scheme largely serves as a profit-making mechanism for private insurance companies rather than benefiting farmers. The state government should establish its own crop insurance corporation to ensure full compensation for crop losses. Additionally, the scheme should be expanded to cover damages caused by wild animals.”
Echoing similar sentiment, Gopinath pointed out the inadequacy of compensation under the current system.
“Even though the crop insurance scheme is technically provided by the Union government, the actual compensation received by farmers—especially during disasters like floods—is extremely low. As a result, while funds are allocated in the name of crop insurance, they fail to provide meaningful relief to farmers. The scheme appears to be implemented merely as a formality. The government must introduce policy reforms to enhance the scheme and increase the compensation amount,” he said.
Both experts emphasised an urgent need for structural changes to ensure that farmers receive adequate financial protection against losses, advocating for a state-led initiative to improve the existing system.
As Tamil Nadu prepares its 2025 Agricultural Budget, the demands of experts like Gopinath and farmer leaders life Natarajan highlighted the urgent need for policy reforms.
From climate-resilient planning to fair procurement policies, stronger land rights, and irrigation infrastructure, these demands reflect the aspirations of Tamil Nadu’s farmers.
A well-planned Budget that incorporates these recommendations will not only secure the livelihoods of millions of farmers but also strengthen Tamil Nadu’s contribution to India’s food security. The state government must act decisively to address these pressing concerns and ensure sustainable agricultural growth in the years to come.
(Edited by Majnu Babu).
