Uttar Pradesh opens eastern paddy buying: Rs 16,000 crore for growers by February

Uttar Pradesh's paddy procurement for the 2026-27 kharif season is now running across the state, and the government's purchases are expected to put more than Rs 16,000 crore into the rural economy, according to a report published on Friday, 6 November 2026. The state has set a target of buying 65 lakh tonnes of paddy at the minimum support price (MSP) by 28 February 2027, up from 62 lakh tonnes last season. Buying in the divisions of eastern Uttar Pradesh, and in Lucknow, Rae Bareli and Unnao districts, began on 1 November, while one report says the western districts started on 12 October. The MSP fixed by the Centre is Rs 2,441 a quintal for common paddy, and the state has promised payment to farmers within 48 hours through direct benefit transfer.

Paddy is the biggest kharif crop for many small farmers in Uttar Pradesh, and the price they get at harvest decides how much cash their households have for the winter, for rabi sowing and for weddings and festivals. Selling at the MSP to a government centre gives a farmer a guaranteed floor price, which matters most when private traders in local markets offer less. A promise of payment within 48 hours also matters, because delays in payment are one of the main reasons small farmers sell to traders at a discount.

The Rs 16,000-crore figure shows how much procurement does for the rural economy beyond the farm. Money paid to farmers is spent in local markets on seeds, fertiliser, farm labour, consumer goods and two-wheelers. For rural businesses and MSMEs in the state's districts, the procurement season is one of the largest injections of cash in the year.

The staggered timetable reflects the harvest. Western Uttar Pradesh harvests earlier, so buying there began in October, while the eastern divisions, where the crop is later, started in November. In Varanasi, for example, buying began on 1 November at 39 centres. The government has also extended the season to the end of February in the east, giving farmers more time to bring their crop.

Peepals calculation: 65 lakh tonnes is 6.5 crore quintals (1 tonne = 10 quintals). At the common-paddy MSP of Rs 2,441 a quintal, that is about Rs 15,867 crore (6.5 crore × 2,441), which fits the report's estimate of more than Rs 16,000 crore once Grade A paddy at a slightly higher price is included. The target is 3 lakh tonnes, or about 4.8%, higher than last season's 62 lakh tonnes (3 ÷ 62 ≈ 0.048), and 4,195 of 4,500 planned centres, or about 93%, were open. Our calculation from the reported figures.

Short-term: Farmers in eastern Uttar Pradesh can now sell paddy at government centres, with payment promised within two days. The cash reaches villages in the weeks around Diwali and the start of rabi sowing.

Long-term: Steady procurement at the MSP supports farm incomes in one of India's largest rice-growing states and keeps rural demand up for local traders, input sellers and small businesses. How quickly payments actually arrive, and whether centres stay open through the season, will decide how far small farmers benefit.

Who is affected: Paddy farmers across Uttar Pradesh, especially small farmers in the eastern divisions; rice millers and procurement agencies; and rural traders and MSMEs whose sales rise with farm incomes.

What to watch next: The pace of purchases against the 65-lakh-tonne target, and the close of buying on 15 February in the western districts and 28 February 2027 in the east.

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