Finance Ministry Advises States to Align Bonus for Pulses, Oilseeds & Millets

Overview The Department of Expenditure issued a D.O. letter on 09 January 2026 to the Chief Secretaries of all States . The letter is an advisory, not a directive, urging states to align their agricultural bonus schemes with the national goal of promoting pulses , oilseeds and millets . The move seeks to strengthen nutritional security, Aatmanirbharta , and sustainable agriculture. Key Developments States are asked to revise bonus policies that currently favour wheat and paddy over diversified crops. The advisory stresses the need to curb monoculture in northern India and promote crop diversification. It aligns with existing central schemes such as the National Mission on Edible Oils and the Economic Survey 2025‑26 , which report falling import dependence on edible oils. Important Facts Import dependence on edible oil fell from 63.2 % (2015‑16) to 56.25 % (2023‑24) . Area under oilseeds grew by 18 % , production by 55 % , and productivity by 31 % between 2014‑15 and 2024‑25 . Under PM‑KISAN , more than 9 crore farmers receive a yearly cash assistance of Rs 6,000 . Other farmer‑centric schemes include PM Fasal Bima Yojana (covering ~4 crore farmers) and the Prime Minister Dhan‑Dhaanya Krishi Yojana targeting 1.7 crore farmers in low‑performing districts. Relevance for UPSC The advisory illustrates the interplay between centre‑state relations, agricultural policy, and food security—core topics for GS II (Polity) and GS III (Economy). Understanding the role of the MSP mechanism, and how bonus incentives can distort crop choices, helps answer questions on agricultural reforms and fiscal federalism. Way Forward States should revise bonus structures to reward cultivation of pulses, oilseeds and millets. Continuous monitoring of crop‑diversification outcomes through the Economic Survey and state agricultural reports. Strengthen supply‑chain infrastructure such as Mega Food Parks to ensure profitability for diversified crops. Integrate farmer‑support schemes (PM‑KISAN, PM Fasal Bima Yojana) with the diversification agenda to safeguard incomes.