Overview The Finance Department of Kerala tabled a Performance Budget for FY 2024‑25 highlighting an urgent need to reverse the long‑term decline in rice production and paddy acreage. The document stresses strict enforcement of the Kerala Conservation of Paddy Land and Wetland Act and a coordinated effort involving local self‑government institutions , the Water Resources Department , and the Agriculture Department . This comes amid a contentious letter from the Union Government asking the state to discontinue the additional bonus for paddy cultivation. Key Developments Development 1: The budget recommends tax concessions or cultivation‑linked subsidies to incentivise farmers to retain paddy lands. Development 2: Proposal to set up village‑level monitoring committees , a digital land‑monitoring system , and a land‑banking mechanism for real‑time tracking of paddy fields. Development 3: Special intervention packages are suggested for traditional rice belts – Kuttanad , Palakkad , and the Kole and Pokkali wetlands – focusing on mechanisation, income support, cost reduction, and youth participation. Important Facts Fact 1: Paddy area shrank from 8.75 lakh ha in 1970‑71 to just 1.8 lakh ha in 2023‑24 , a decline of nearly 80%. Fact 2: Production fell from 3.47 lakh tonnes in 2000‑01 to 5.30 lakh tonnes in 2024‑25 , while national rice output rose from 275.6 lakh tonnes (1955‑56) to 1,490.74 lakh tonnes (2024‑25). Fact 3: Rice productivity in Kerala improved from 2,827 kg/ha (2013‑14) to 3,117 kg/ha (2022‑23) but slipped to 3,006 kg/ha in 2024‑25 . UPSC Relevance This topic cuts across multiple sections of the UPSC syllabus. In GS Paper III, it relates to Agriculture – Food Security, Crop Diversification, and Sustainable Farming and Environment – Wetland Conservation and Land‑Use Policies . GS Paper II can draw on the legislative aspect of the Kerala Conservation of Paddy Land and Wetland Act and inter‑governmental coordination. Questions may ask for comparative analysis of state‑level agricultural policies versus national trends, or the impact of urbanisation on agrarian lands. Way Forward Effective implementation of the proposed monitoring mechanisms, coupled with fiscal incentives, can stem the loss of paddy lands. Strengthening the enforcement of the Wetland Act, promoting mechanised, climate‑resilient farming, and encouraging youth participation are essential. A balanced approach that aligns state incentives with central agricultural goals will be pivotal for Kerala’s rice self‑sufficiency and overall food security.