The Uttar Pradesh government on Tuesday announced a 1 per cent recovery rebate on non-hybrid (coarse) paddy, similar to the relaxation already given on hybrid paddy.
The move is expected to benefit around 15 lakh farmers in the state and put an additional burden of Rs 166 crore on the state exchequer.
State Finance Minister Suresh Kumar Khanna told reporters here that when hybrid paddy is milled to extract rice, the recovery rate as per the central government norms is 67 per cent. However, the UP government already gives a 3 per cent rebate on hybrid paddy recovery, spending nearly Rs 100 crore annually on this concession.
Khanna said the same benefit would now be extended to non-hybrid or coarse paddy as well, 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.
This, he said, will not only help farmers get better prices in mandis (markets) but also strengthen employment in the rice milling sector, creating around two lakh job opportunities.
He added that the decision will directly benefit farmers and labourers while also supporting rice mill operators, giving an overall boost to the paddy industry in the state.
Government procurement of paddy is underway in Uttar Pradesh—having started on October 1 in western districts and November 1 in eastern parts of the state.