Uttar Pradesh targets Rs 16,000 crore paddy procurement drive for rural economy

LUCKNOW — The Uttar Pradesh government is preparing to infuse approximately Rs 16,000 crore into the state’s rural economy through an expanded paddy procurement drive ahead of the 2027 assembly elections.

Under the 2026-27 marketing season, the state administration has set a target to procure 65 lakh tonnes of paddy by February 28, 2027. The initiative involves nearly 4,500 procurement centers established jointly by central and state agencies, including the Food Corporation of India (FCI).

The Central government has fixed the Minimum Support Price (MSP) at Rs 2,441 per quintal for common paddy varieties and Rs 2,461 per quintal for Grade-A paddy. In addition, farmers will receive Rs 20 per quintal for unloading, winnowing, and cleaning operations. According to official data, state agencies have already procured roughly 25,000 tonnes of paddy, disbursing about Rs 62 crore directly to cultivators.

Uttar Pradesh is among India’s leading producers of paddy, wheat, and sugarcane, with institutional procurement of these major crops exceeding an annual value of Rs 60,000 crore. In previous marketing cycles, the state recorded paddy purchases of 52 lakh tonnes in 2024-25 and 62 lakh tonnes in 2025-26. State government figures indicate that the procurement mechanism has benefited more than 37 lakh farmers over the past four years.

To ensure transparency and streamline operations, authorities have completed geo-tagging across procurement centers, rice mills, FCI warehouses, and storage depots. Traditional procurement schedules generally begin in October in western Uttar Pradesh, while operations in the eastern and central regions commence in November. Farmers retain the freedom to sell their produce to private buyers if local market prices match or exceed the established MSP.

According to a senior official, Chief Minister Yogi Adityanath has directed relevant departments to ensure that farmer payments are processed within 48 hours through Direct Benefit Transfer (DBT). The administration has also mandated that all necessary amenities be maintained at procurement centers to prevent any inconvenience to growers.