Section Overview
The most fiscally significant section alongside women’s welfare. Key proposals include raising paddy procurement price to ₹3,500/quintal, free modernised pump sets for 20 lakh farmers, disaster compensation increases, and a comprehensive organic/natural farming expansion programme.
Summary Ratings
| Fiscal Pressure | Economic Benefit | Social Benefit | Implementation Risk |
| HIGH | HIGH | HIGH | MEDIUM |
Proposal-by-Proposal Analysis
The table below provides fiscal cost estimates and impact ratings for the principal proposals in this section.
| Key Proposal | Fiscal Cost Estimate | Economic Benefit | Social Benefit |
| Raise paddy MSP support price to ₹3,500/quintal (from current ₹2,500 effective) | Current TN paddy procurement ~40–50 lakh MT/yr. Additional subsidy: ₹1,000/quintal × ~40 lakh MT = ₹4,000 cr/yr. This is above CACP’s 2025–26 recommended MSP of ₹2,425, requiring state bonus. | HIGH | HIGH |
| Sugarcane procurement price raised to ₹4,500/tonne | TN cane output ~5 lakh tonnes/yr. Incremental state support at ₹500/tonne above mills’ FRP = ₹250 cr/yr. | MEDIUM | HIGH |
| Free modern pump sets for 20 lakh+ farmers (no metering) | Capital cost: assuming avg ₹15,000/pump set × 20 lakh = ₹3,000 cr one-time. Plus ongoing free electricity (already committed). Total electricity subsidy ~₹6,000–7,000 cr/yr. | HIGH | HIGH |
| Disaster compensation: ₹25,000/ha irrigated, ₹12,000/ha rainfed | 2024–25 SDRF norm: ₹17,000 and ₹8,500. TN enhancement: ~₹500–700 cr/yr in average years; ₹1,500–2,000 cr in flood years. | MEDIUM | HIGH |
| Micro-irrigation expanded to 21 lakh ha | PMKSY benchmark: ₹35,000–55,000/ha. 21 lakh ha × ₹45,000 avg (partial subsidy share) = ₹9,450 cr over 5 years, shared with Centre. | HIGH | HIGH |
| Organic farming expanded to 1 lakh ha; natural farming 5x | Organic support: ₹10,000/ha incentive × 60,000 new ha = ₹600 cr over 5 years. | MEDIUM | MEDIUM |
| 1,000 agro-industry parks (eggs, coconut, banana, rice, flowers) | Based on SIPCOT agri-park costs: ₹50–80 cr/park. 20 major parks over 5 yrs = ₹1,000–1,600 cr capital (PPP model). | HIGH | HIGH |
| Net Cultivable Area raised to 50 lakh ha | Land development/reclamation: ₹20,000–30,000/ha × 8 lakh new ha = ₹1,600–2,400 cr over 5 years. | HIGH | MEDIUM |
Analytical Notes
⚑ Analytical Note: Agriculture is the single largest area of fiscal commitment outside salary/pension. The combined annual incremental cost of paddy MSP support, electricity subsidy continuation, pump sets, and disaster compensation is estimated at ₹6,000–8,500 crore per year once fully operational. This is significant but within the envelope of TN’s existing agriculture budget (~₹35,000 cr via the separate agriculture budget). The economic return is strong — agriculture employs ~35% of TN’s workforce and productivity gains have 2–3x multiplier effects in rural areas.
