Paddy procurement to infuse ₹16,000 cr into Uttar Pradesh’s rural economy

Ahead of the crucial 2027 Uttar Pradesh Assembly elections, the Yogi Adityanath government is looking to infuse about ₹16,000 crore into the state’s rural economy through paddy procurement.

 

In the current kharif marketing season (2026-27), the state government aims to procure 6.5 million tonnes (mt) of paddy by February 28, 2027.

 

The Centre has fixed the minimum support price (MSP) at ₹2,441 per quintal for common-grade paddy and ₹2,461 per quintal for Grade A. Additionally, the state farmers will receive ₹20 per quintal towards unloading, sieving and cleaning charges.

 

With this, farmers in the state stand to receive over ₹16,000 crore for supplying paddy to around 4,500 procurement centres set up by the central and state government agencies, including Food Corporation of India (FCI).

  

“Chief Minister Yogi Adityanath has directed officials to ensure that payments to farmers are made within 48 hours through the direct benefit transfer (DBT) channel,” a senior official said.

 

According to the latest available figures, government agencies had procured nearly 25,000 tonnes of paddy in the state, while the current payments stand at roughly ₹62 crore.

 

Adityanath has also stressed that farmers should not face any inconvenience at procurement centres and that these facilities should be equipped with all necessary amenities.

 

Paddy procurement traditionally starts in October in Western Uttar Pradesh, followed by the eastern and central regions in November.

 

The state procured 5.2 mt and 6.2 mt of paddy in the preceding two kharif marketing seasons, 2024-25 and 2025-26, respectively.

 

Farmers are also free to sell their produce to private players if market prices are competitive with the MSP.

 

Uttar Pradesh is among the country’s leading producers of paddy, wheat and sugarcane, which are key cash crops. Institutional procurement of these crops in the state amounts to over ₹60,000 crore annually.

 

To ensure transparency during the kharif marketing season, procurement centres, rice mills and FCI warehouses and depots in the state have been geo-tagged.

 

According to the state government, more than 3.7 million farmers have benefitted from paddy procurement over the past four years.

 

The UP Food and Civil Supplies Department is taking steps to further expand the scope of institutional procurement.