Uttar Pradesh: In a major move aimed at strengthening agriculture and agro-based industries, the Yogi Adityanath government has announced a 1% recovery rebate on the milling of non-hybrid paddy. This initiative is expected to boost farmers’ income, incentivize rice mills, and enhance employment and investment opportunities in the state.
1% Recovery Rebate for Non-Hybrid Paddy
The decision was taken in a meeting chaired by Chief Minister Yogi Adityanath, under which rice mills in Uttar Pradesh will now receive a 1% recovery rebate on non-hybrid paddy milling. The scheme is set to benefit 13 to 15 lakh farmers and over 2,000 rice millers directly. For this purpose, the state government will provide approximately ₹167 crore in compensation.
This initiative is expected to accelerate the paddy milling process, increase competition among mills, and improve transparency in the government procurement system, ensuring farmers receive timely payments and better prices for their produce.
Strengthening the State Economy and Employment
The Yogi government believes the rebate will boost the state economy and create more than 2 lakh employment opportunities. By reducing the production costs for mills while increasing farmers’ earnings, the measure is expected to enhance rice production and milling capacity in Uttar Pradesh.
Previously, the government provided a 3% recovery rebate on hybrid paddy. Extending similar benefits to non-hybrid paddy is aimed at encouraging investment in agro-industries, supporting local manufacturing, and promoting economic self-reliance within the state.
Promoting Atmanirbhar Bharat in Agriculture
The initiative is also aligned with India’s Atmanirbhar Bharat (Self-Reliant India) goals. With increased support for local paddy milling, Uttar Pradesh aims to reduce dependence on rice imports from other states for the Public Distribution System (PDS).
Typically, the government reimburses around ₹100 crore annually for such schemes, but this year, the additional 1% rebate has increased the total allocation to ₹167 crore, reflecting the government’s commitment to supporting farmers and millers.
Benefits for Farmers and Rice Millers
This relief package is expected to provide direct financial benefits to farmers, improve operational efficiency for rice mills, and promote investment in agro-based industries. Experts believe that the move will not only strengthen the agriculture and milling sectors but also create new job opportunities, making Uttar Pradesh a hub for rice production and processing.
