New basmati raises hopes

Exporters say Super Basmati production will now double

The Centre's recent decision to declare "Super Basmati" as an approved basmati rice variety for export has made exporters optimistic of capturing the overseas market in a big way.

With the recognition of this variety, exporters are hopeful that it will lead to a two-fold increase in yield (in the states of Punjab and Haryana) by the end of the next financial year

"Super" was originally developed in Pakistan. In the 2003 kharif season, the Punjab Agricultural University (PAU) at Ludhiana officially released Super after getting the seeds from Pakistan and working on it for about three years. Through scientific selection and screening, the seed was purified to suit Indian field conditions and released by the name "Shabnam".

After its good performance in the field, the All-India Rice Exporters Association (AIREA) made concerted efforts to get it officially certified as "Approved Evolved Basmati" for export and this has now been done.

Talking to Business Standard, KRS Sobti, partner in the Deva Singh Sham Singh firm said: "Earlier, exporters were keen to ship Super, but could not do so in the absence of it being certified as authentic basmati by the Export Inspection Council of India (EIC). The latest amendment is likely to trigger the exports of ' Super Basmati' as it has huge potential. Moreover, it attracts same duty benefit by European Union and can compete with Pakistan's 'Super Kernal' in the international market."

He added that although the Pakistani rupee was 30 per cent cheaper than the Indian rupee, Indians could capture the market with the certification of this variety.

Insiders opine that Super Basmati has always had an edge over Indian Pusa Basmati-1 in international markets and if India starts exporting the same, Pakistan could lose a major share in the world market.

At present, Punjab and Haryana produce about 3.50 lakh tonnes of Super Basmati, with Punjab's contribution being 70-80 per cent. With the certifications, exporters are optimistic that by next year production would double as demand in the overseas market is phenomenal

In order to boost trade in Punjab, Shri Nath Jee Trading Corporation , managing partner, Akshay Bajaj, said: "Currently, we have to pay a 4 per cent tax (2 per cent market fee plus 2 per cent rural development fee) on the rice brought outside the state (Punjab). These taxes are not applicable to Haryana. Also, we have to pay a 4 per cent tax as VAT, although it is refundable in case of exports."

Bajaj said in order to avoid the market fee, many exporters were gradually shifting base from Punjab to Haryana and Uttar Pradesh.

"The government should create a level playing field in order to boost export from Punjab, so that it can compete with Haryana and Uttar Pradesh," he said.