UP Paddy Procurement Injects ₹5,000 Cr Into Rural Economy

Uttar Pradesh has injected more than ₹5,000 crore rural economy boost through Uttar Pradesh paddy procurement during the ongoing kharif marketing season 2025–26, providing direct farmer income support across the state. The paddy procurement Uttar Pradesh exercise has gathered pace as state agencies expand purchases under the Minimum Support Price (MSP) framework.

Official data shows that around 2.14 million tonnes of paddy have been procured so far, against a target of 6 million tonnes under kharif crop procurement. Payments for the procured crop have been transferred directly into farmers bank account payments using the Direct Benefit Transfer (DBT) system, reducing delays and limiting the role of intermediaries in the process.

For the current season, the MSP for paddy 2025 has been fixed at ₹2,369 per quintal for common paddy and ₹2,389 per quintal for Grade A varieties. The assured pricing mechanism has encouraged farmers to sell through government procurement centres instead of distress-selling in open markets, especially in regions with limited private participation.

State officials estimate that if the full procurement target is achieved, institutional buying under agricultural procurement India norms could generate farm incomes exceeding ₹14,000 crore. Alongside paddy, the state has also undertaken bajra procurement Uttar Pradesh, purchasing nearly 1.6 lakh tonnes of pearl millet worth about ₹450 crore. Overall payments under kharif crop procurement have crossed ₹5,500 crore.

To facilitate operations, the state expanded its network of government procurement centres across districts to reduce travel and handling costs. Authorities said infrastructure upgrades were aligned with the broader agriculture policy Uttar Pradesh to improve efficiency and farmer participation.

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More than 7.8 lakh farmers have registered for procurement this season, reflecting increased confidence in the Minimum Support Price (MSP) system. The initiative is expected to strengthen the rural economy Uttar Pradesh by improving liquidity, supporting consumption, and preparing farmers for the next sowing cycle.