Concept:
Parboiled paddy contains high moisture and needs controlled drying before milling and storage.
Step 1: LSU dryer is commonly used for drying paddy and other grains.
Step 2: It is a continuous flow type grain dryer.
Step 3: In this dryer, heated air passes through the grain and removes moisture.
Step 4: It is suitable for drying parboiled paddy because it allows efficient and uniform moisture removal.
Step 5: Therefore, the dryer used for drying parboiled paddy is LSU dryer.
\[
\boxed{\text{LSU dryer}}
\]