Milling non-hybrid paddy: UP announces 1% rebate on recovery rate
Uttar Pradesh offers a 1% rebate for milling non-hybrid paddy to boost rice mills, aiding 15 lakh farmers and 2 lakh workers, with ₹166.51 crore allocated.
The Uttar Pradesh government has announced a 1% rebate in the recovery rate for milling non-hybrid paddy, aimed at encouraging rice mills to process such varieties and boosting the state’s rice milling industry.
The rebate, it is claimed, will directly benefit around 13–15 lakh farmers and strengthen the employment of nearly 2 lakh workers engaged in rice mills.
Finance and parliamentary affairs minister Suresh Kumar Khanna made this announcement at a press briefing here on Tuesday.
“The government will compensate millers for the rebate from the state budget, allocating ₹166.51 crore for the purpose this year. The move is expected to enhance competition among mills, promote modernisation, and expand milling capacity in the state,” he said.
Khanna noted that many rice mills earlier avoided milling non-hybrid paddy because of lower recovery rates and inadequate capital for modernisation. “With this rebate, mills can reinvest the compensation amount in upgrading technology, ensuring higher efficiency and sustainability,” he said.
The minister added that the initiative will also encourage farmers to cultivate indigenous paddy varieties, as government purchase centres will now buy both hybrid and non-hybrid paddy. The measure is expected to improve procurement timelines and reduce the Food Corporation of India’s dependence on rice supplies from other states for the Public Distribution System (PDS).
As of now, 4,100 procurement centres—1,244 in western and 2,856 in eastern Uttar Pradesh—are operational. Paddy procurement began on October 1 in western UP and November 1 in eastern UP. So far, 1.41 lakh metric tonnes of paddy have been procured this year—2.5 times more than during the same period last year.
