"The agriculture ministry is likely to send a proposal either this week or next week to the cabinet for approving the 1121 variety as Basmati rice," an industry source said.

There are six traditional varieties — Taraori, Dehradun, Ranbir, 217, 370, 386 and two hybrids — Pusa and basmati of Haryana grown in India, which are notified under the Seed Act.

All India Rice Exporters Association (AIREA) President Vijay Setia said the government should not delay the decision as it would clear the confusion among the paddy farmers about which variety to grow.

The Pusa 1121 has all the qualities of Basmati in terms of elongation, aroma, non-sticky, soft and fluffy texture. This rice variety has 8 mm length which expands to 18 mm after cooking. It was developed by Indian Agricultural Research Institute, which is popularly known as Pusa, in 2003.

However, as per the current definition of basmati, any hybrid variety to be called as Basmati should have genes from at least one traditional variety. The Pusa 1121 does not qualify under this provision as it has no immediate direct linkage with traditional varieties.

Pusa 1121 has been able to take over 50 per cent of Pakistan's share in Basmati market in last three years, industry sources said.

"The demand for 1121 is at an all-time high as consumers are crazy for its taste," Setia said.

He said the paddy prices for Pusa 1121 are Rs 42,000- 45,000 a tonne, while rice is being exported at $1,600- 2,000 a tonne. The farmers income, which was nearly Rs 50,000 per acre in the last season from growing the 1121 variety, can go up to Rs 1,00,000 this Kharif, Setia added.

The AIREA President said Pusa 1121 also lessens burden on natural resources like water, power and fertilizers, compared with taditional basmati varieties which require more water.

"Besides, the yield is almost two times in 1121 than in traditional Basmati," he said.