Exporters flush with orders, good season expected for basmati growers in Punjab

Countries securing buffer stocks, say exporters; state likely to increase area under cultivation from 15 lakh acre to 17 lakh acre

Basmati exporters have asked the growers of this aromatic variety in the state to increase area under cultivation, saying that they have orders in hand, despite the covid-19 pandemic affecting most other sectors of the economy.

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“We are flush with orders from West Asia, Arabian countries, Europe, Canada and the US. We have asked farmers to increase area under cultivation and would purchase the entire basmati crop at a good remunerative price,” says Ashok Sethi, president, Punjab Rice Exporters’ Association.

He added countries around the world were securing buffer stocks, leading to the orders. He added exports of basmati from the country were expected to touch Rs 40,000 crore this year, an increase of 15% over Rs 35,000 crore last year. Punjab is expected to contribute around 40% of the exports, at around Rs 15,000 crore.

Sethi added the association has asked basmati growers to grow 1718, 1509 and 1121 varieties as these were in huge demand, both in national and international markets.

Sethi added that the market was buoyant despite the fact that Iran was not importing (its share in India’s total export was around 33% till two years ago) due to trade sanctions. “Despite the fact that there is no change is the sanctions scenario there is buoyancy in basmati export from India,” said Sethi.

The export market has also come alive as rice exporters and state agriculture department learnt from the challenge the industry faced three years ago, when European countries rejected basmati consignments on traces of insecticides.

“The impact of the state-wide campaign we ran then has shown results, as farmers have saved Rs 400 crore by cutting down on usage of pesticides,” said Punjab agriculture secretary Kahan Singh Pannu, adding that his department was in touch with basmati farmers and the state was committed to growing the aromatic variety over 17-18 lack acre. The total crop output is expected at 30 lakh tonne, and with the yield at 18 quintal per acre, a farmer can earn more the traditional paddy.

Basmati is grown over large tracts in Tarn Taran, Amritsar, Gurdaspur, Ferozepur, Fazilka, Muktsar, Hoshiarpur and Kapurthala districts. Last year, the Minimum Support Price (MSP) of basmati was Rs 1,840 per quintal, which is expected to cross Rs 1,900 in the current season, though Punjab government has demanded Rs 2,900 from the Centre.