15 lakh farmers to gain as UP offers 1% rebate on non-hybrid paddy recovery

The Uttar Pradesh government on Tuesday announced a 1 per cent recovery rebate on non-hybrid (coarse) paddy, extending the same benefit already available for hybrid paddy.

The decision is expected to benefit around 15 lakh farmers and add an additional Rs 166 crore burden to the state exchequer.

State finance minister Suresh Kumar Khanna said that when hybrid paddy is milled to extract rice, the recovery rate under central government norms is 67 per cent. The state government already provides a 3 per cent rebate on hybrid paddy recovery, which costs nearly Rs 100 crore annually.

Khanna said the same concession will now be extended to non-hybrid or coarse paddy, with a 1 per cent recovery rebate.

“This (rebate) will cost Rs 166 crore and benefit approximately 15 lakh rice farmers in the state,” Khanna said.

He said the measure will help farmers secure better prices in mandis (markets) and strengthen employment in the rice milling sector, potentially creating around two lakh job opportunities.

Khanna added that the move would directly support farmers, labourers and rice mill operators, giving an overall boost to the paddy industry in Uttar Pradesh.

The government’s paddy procurement drive is already underway in the state — it began on October 1 in western districts and on November 1 in eastern parts.