Business Standard
Saturday, Nov 21, 2009
 
drived banner
drived banner
  Advanced Search
Feedback | RSS
Content Guide
Follow us on  
|Markets & Investing|||||||| 
 Section Home | News Now | Paper | Features | Stock Watch | PF News | PF Features | IPOs | MFs | Commodities | Trends | Stock Data | Financials | Money & Forex
Home > The Smart Investor Live Markets | Smart Portfolios II
  Search:

Rain delay may raise basmati acreage
Dilip Kumar Jha / Mumbai June 28, 2009, 0:52 IST

Deficient rain in June is likely to raise the area under basmati (rice) cultivation by 3-5 per cent as this rice variety is sown generally late.

 
 
Related Stories
News Now
-Commodity to the rescue
-Railways gear up to take on water crisis
-Monsoon advances in Maharashtra, Andhra, Orissa
-Inter-ministerial differences on non-basmati rice exports
-Orissa demands men, machine and money to tackle Naxals
-Rain in Uttarakhand; more expected

According to trade sources, basmati is sown in about 4-5 per cent of the total area under rice cultivation. But this time, basmati acreage is likely to go up because of monsoon delay. However, this is unlikely to affect the output of non-basmati rice in the country as per the initial estimates.

On Wednesday, the meteorological department brought down the annual rainfall forecast to 93 per for this season, which is 3 per cent lower than the normal 97 per cent of the long-term average. As of June 19, India received just over 50 per cent of the usual rain, sounding alarm bells for over 60 per cent of paddy growers who are solely dependent on monsoon rain.

“The delay in rainfall might help divert rice acreage to basmati from non-basmati rice,” said Basmati Rice Farmers and Exporters Development Forum’s President Vinod Ahuja, who is also a senior agriculturist and farm expert.

The sowing of non-basmati rice is moving very slowly due to the deficient rainfall. It has been nearly 20 per cent lower so far this season as compared to the same period last year. As the monsoon is delayed by over a fortnight, farmers, especially in the North-East and central India, are awaiting a revival in the monsoon to commence paddy sowing.

Encouraged by the inclusion of the 1121 Pusa variety of rice in the basmati category, which got better prices and good demand for exports last year, farmers in Punjab and Haryana are willing to dedicate additional area to this variety. Last year, prices of this variety surged to Rs 3,500 per quintal from Rs 2,500 due to higher overseas demand.

“Even if rain starts in late June or early July, the rice output will be covered. Hence, we do not estimate any decline in total output this year. However, a further stretch of dry spell may cause lower output,” said Vijay Setia, president of All India Rice Exporters’ Association.

Further, the late sowing may reduce yield and stretch the crop maturing period. Therefore, farmers planning to sow the next crop, that is wheat, after harvesting the early paddy crop might be affected, he added.

The June onset of monsoon merely covers 5 per cent area, that too under non-basmati varieties. But the speed of sowing increases with the advancement of monsoon to cover the full area by July-end.

Basmati is generally sown during late July and early August. By that time, farmers have a clear picture of rain and they are able to take a decision about paddy sowing. Since, basmati is sown towards the end of the season, the leftover acreage, especially in basmati growing states—including Punjab, Haryana, and some parts of Uttar Pradesh—is covered under this variety.

A marginal three per cent reduction might not have much impact on the overall rice output of the country. But, further deficiency in July and any dry spell in August might lower yield and overall area under paddy cultivation, said V K Chaturvedi, managing director of BSE-listed Usher Agro, a paddy and wheat processing company.

During the kharif season 2008-09, total acreage under paddy cultivation slipped marginally to 43.20 million hectares (ha) from 43.77 million ha in the previous year, recording an output of 99.37 million tonnes compared to 96.69 million tonnes in the previous season.

Arrow Other Stories     
- Sensex makes remarkable recovery, regains 17K
- Bharati to go by Sebi norms on Great Offshore offer
- Galleon exits Edelweiss; sells 7% stake for Rs 255.54 cr
- Suzlon Energy's three promoters pledge 2.8 cr shares
- Draw export strategy of $300 bn: Assocham to govt
More  
  Read Business news in 
  Get financial advisory and solutions for your projects
  Holidays starting at a delightful EMI of Rs 3481
  Switch on and say hello to Monday morning !
  Your dream home can now be a reality.
  Visit Fortis for a preventive health check-up & get a 20% discount.
  Follow the ups and downs of your investments. Try our new Portfolio Tracker
  Kolkata Dock \ Freight contract for the British Gurkhas Nepal
  Find how Midsize Businesses use ERP to gain competitive advantage
  Trading in Forex is now as easy as 1-2-3
  Discover an economical and cost effective way to market your products and services
  Giftwithlove.com: Same day delivery of Flowers and Cakes to India
  Download the E-book on the Future of Business Intelligence
  Learn Best Practices for improving customer satisfaction
  Know your customers better... download the free e-book on CRM
   Discussion Board / User Comments    
Display Name  Email-Id  
Post your comment
Ajeetkumar
Dilip jee, it won't proper to say that crunch of rainfall and delay in rainfall may increase the growing prospects for basmati rice. This is true that basmati is sown in late July and early August but apart from this farmers have alternatives as so many varieties of non basmati rice have been developed that are generally used to be sown in late period and returns better production. A compared to Basmati cost of production of these varieties is lower. You must know that cost of production of basmati rice is much more than non-basmati rice. Along with productivity of basmati is also very low as compared to non-basmati. Another aspects should also be concerned that despite of sowing in late phase basmati needs higher rainfall than the non-basmati rice. Regards, Ajeet Kumar Research Analyst smc global securities private limited new Delhi mobile-9891334881 email-aboutajeet@gamil.com
Reply
  Reply by Dilip:
This is not what I say. Industry experts like Basmati Rice Farmers and Exporters Development Forum's president Vinod Ahuja, who himself is an agriculturist, has said that. The observation was supported by Vijay Setia, pesident of All India Rice Exporters' Association. Hence, I do not see any logic in questionning industry veterans' views. regards, dilip
Most Popular
Read
E-Mailed
Commented
   
- Bharti Airtel slashes roaming rates by 60%
- Govt may allow private sector investment in education
- Suzlon Energy's three promoters pledge 2.8 cr shares
- Patni may host all IT services on 'cloud'
- We are not trying for a monopoly: HAL chairman
 
 More  
BS Poll
Cast Your Vote
 
   
 
Should India's defence sector be thrown open to foreign investments?
  Yes  No
Submit

  Hot Searches  
 
Amitabh Bachchan | N Chandrasekaran | Swine Flu | Mukesh Ambani | Anil Ambani | TCS | Infosys |  Air India |  Duronto |  Pranab Mukherjee | Sonia Gandhi | Congress | Rahul Gandhi |  Bigg Boss |  New Pension Scheme |  Service tax |  Excise duty |  Sebi | Tech Mahindra |  Ramalinga Raju |  Satyam |  Reliance  |  RBI |  GDP |  Gold |  Ratan Tata |  ICICI |  |  B-School | DLF  Sensex |  Tax calculator | Home Loan  | Bollywood | Personal Finance |  inflation | oil prices |  World Bank | Reliance Infratel |  HDFC |  Barack Obama  
 
  Member Area Write to the Editor RSS Archives Advanced Search
  Subscribe to BS print product BS e-paper Newsletter Portfolio Tracker
  BS Products BS Hindi BS Motoring
FOR HOT PRODUCTS
BS Bazaar.com
Home | Markets & Investing | Companies & Industry | Banking & Finance | Economy & Policy | Opinion
Life & Leisure | Management & Marketing | Tech World
About Us | Partner With Us | Code of Conduct | Careers | Advertise with us| Terms & Conditions | Disclaimer | Site Map | Contact Us | Feedback