Poor rains, better global prices to stoke basmati cultivation

A weaker monsoon and higher prices in the global markets are encouraging more farmers in north India to sow basmati rice, instead of the usual variety of paddy.

P S Rangi, member, Punjab State Farmers Commission, says the basmati area in Punjab this year could reach 750,000-800,000 hectares (ha), the highest till now. It was 680,000 ha last year. Punjab is targeting 2.8 mn ha under paddy this year.

In adjoining Haryana, agricultural officials say the area under basmati is likely to gain, with sowing of other varieties of paddy lagging till now (basmati takes less water). They expect the area under basmati to be 60-65 per cent of the total paddy area (it is targeting 1.2 mn ha under paddy). UP farmers also sow basmati and the area there is also likely to go up from last year’s 150,000 ha.

Last year, poor prices fetched by basmati growers on account of a weak export market, had left many basmati growers in Punjab and Haryana dejected. However, this year’s monsoon in Punjab and Haryana has been 65 per cent deficient till July 15, an important criterion. The water requirement is almost half in basmati as compared to other varieties.

Also, says M P Jindal, president, Rice Exporters’ Association, the price of basmati has improved in international markets after the minimum export price imposed on it by a government order was removed. Prices for some premium basmati varieties are now $1,100-1,150 a tonne, as against $800-900 a tonne earlier.