I am a farmer and I know it better. Husk and Mudhian are two different things, extracting Mudhian is much costly, time taking and painstaking thing than their selling price.
Husk is used for all those purposes you are saying. People have developed some ways to get husk when using Combine-Harvester, a decade ago people has compromise on husk while using Combine-Harvester, still they have to compromise a good portion of plant while yielding the wheat or rice crop.
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This is not restricted to rice or wheat a good portion of crop residue burned for the maize and sugarcane and for cotton crop residue agriculture department suggests that it is good to burn residue to control pest.
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