'Lower basmati prices due to softening of international rates'

With basmati growers complaining of fetching "lower" rates this season, the Punjab government today attributed prevailing "lesser" rates of basmati variety to "softening" of export prices in the international market.
"(Basmati) rates are linked with the international market. The crop prices which have now stuck at Rs 2,200-2,500 a quintal because (basmati export) prices have softened in international market," Punjab Agriculture Minister Tota Singh said.
He said international market determined the domestic basmati rates. "If rates are high in international market, the prices here will also be high," he said.
Punjab basmati growers have been complaining about not getting "remunerative" rates this season similar to what crop prices prevailed last season. Growers in Punjab had accused even "unscrupulous" traders of lowering crop prices by forming cartel.

Basmati crop in Punjab is fetching Rs 2,100 to Rs 2,400 a quintal as against Rs 2,800 to Rs 3,000 a quintal recorded at the time of arrival in grain markets. Notably, in neighbouring Haryana also, the basmati prices are higher by Rs 300-400 per quintal than prices ruling in Punjab.
Last year, aromatic crop varieties had fetched whopping Rs 3,500 to Rs 4,000 a quintal.

In the global market, the basmati prices curently prevail in the range of USD 1,000-1,800 per tonne, lower than USD 1,500-1,800 a tonne registered last year, exporters said, ascribing it to "lesser" demand from importing countries like Iran.

With the Punjab government emphasising on crop diversification programme, area under basmati crop surged by 55 per cent to 8.62 lakh hectares this year, creating a "glut like" situation.
With around 30 per cent of total paddy area being under basmati, its output is expected to reach 34 lakh tonnes as against 22.65 lakh tonnes recorded last season.
Meanwhile, Punjab government is yet to take a final decision on demand of Haryana rice traders seeking concession in local levies on basmati crop for purchasing from the state.
"We are yet to take a decision (on Haryana traders demand). The meeting in this regard may be held tomorrow," said Punjab Agriculture Minister.