More basmati sowing possible this year

Sources in Apeda said there were indications of a 5 to 10% rise

After last year’s surge in the price of basmati rice, its sowing by farmers this year in the north is expected to be higher.

The price of basmati rose from Rs 2,200-3,300 a quintal in 2012-13 to Rs 3,300-3,400 a qtl in 2013-14, due to high demand abroad.

Sources in the Agriculture and Processed Food Products Export Development Authority (Apeda) said there were indications of a rise in sowing, with informal estimates pointing to a five to 10 per cent rise.

The sources said more supply might also undermine the price. Also, export demand might not rise at the same pace as Iran has made the procedure for imports by its traders more cumbersome, said an Apeda official. About a third of India’s export normally goes to Iran.

However, other markets are expected to respond well and the projection for basmati export is four million tonnes as compared to 3.75 mt last year. There is an El Niño threat on kharif crops this season, with the meteorological department predicting a a possible five per shortfall in monsoon rain.

Rice traders expect the return on basmati rice to farmers might be between Rs 2,500 and 3,000 a qtl. Farmers are expecting about Rs 4,000 a qtl on the basis of the past two years. The major basmati growing states of Punjab and Haryana have an efficient irrigation system but a dwindling water table and escalating fuel cost makes it unviable for farmers to resort to extensive use of tubewells.