Basmati crop Promotion & its Success by Punjab Govt

Last Updated: 28 Dec 2024

Punjab contributes between 35-40% of annual Basmati rice export from India (~4 million tons worth Rs 36,000 crore)

IMPACT: 2024 season

-- Punjab witnessed a ~35.5% RISE in area under Basmati to 6.80 Lakh Hectares in last 2 years[1]

IMPACT: 2023 season

-- Punjab witnessed a ~21% surge in area under Basmati to ~6 Lakh Hectares[2]
-- Average purchase price across the state is ~1000 Rs higher than 2022
-- Ban on use of 10 pesticides ensured minimal residue limit as per global food safety norms i.e. Export Quality ==> Higher demand

Central Govt playing spoil sport by setting Minimum Export Price limit[3]
-- It was set to $ 1,200/ton on August 27, 2023 & after protests reduced to $950/ton
-- i.e. Punjab Exporters losing out their customer base in the Middle East to Pakistan which is offering Low $750/ton
-- It was removed in Sept 2024[4]

Govt Initiatives for Basmati Promotion

In order to boost crop diversification to basmati rice & reduce the effect of stubble burning, Govt took multiple steps:

1. Handholding farmers towards Basmati

2. Boost exports potential[5]

a. Banning export critical pesticides

  • Punjab Govt banned 10 pesticides to produce good quality Basmati rice
  • To avoid rejection of our Basmati in the international market due to the presence of traces of these chemical compounds beyond the permissible limits
  • Farmers are being told not to use these banned pesticides through farmer training camps and social media
  • Agriculture Department is also giving information to the group of Pesticides dealers not to use it on Basmati

b. Organic Farming for Basmati[6]

  • Pilot project to cultivate residue-free basmati in Chogawan block of Amritsar
  • Chogawan area falls in the basin of the Ravi river and has favourable climatic conditions to nurture the most aromatic long grain basmati rice making it export quality produce
  • 3,691 farmers have been shortlisted after the door-to-door survey conducted by the agriculture department

3. Basmati Extension-Research Centre[1:1]

  • A Basmati Extension-Research Centre and a residue testing laboratory is being established to give a boost to Punjab's basmati exports
  • This is done in coordination with Agricultural and Processed Food Products Export Development Authority (APEDA)

Impact

  • Total paddy cultivation area of Punjab is 30-32 lakh hectares (both Basmati & non-basmati)[7]
Year Basmati Area
2024-25 6.80 lakh hectares[1:2]
2023-24 5.96 lakh hectares[1:3]
2022-23[7:1] 4.94 lakh hectares
2021-22[7:2] 4.85 lakh hectares

Other Crop Diversification Initiatives

Non-Basmati vs Basmati[8]

Non-Basmati Paddy Basmati Paddy
MSP paid YES NO
Crop Yield More Less
Water requirement Huge (4,000 litres per kg) Less (largely dependent on rainwater)
Export Potential None Huge
Stubble MORE LESS
Stubble as Cattle Feed* NO YES

Economics[8:1]

  • The average yield of Basmati varieties is between 20 and 25 quintals per acre — which is 8-10 quintals less per acre as compared to non-basmati paddy
  • The MSP of paddy is fixed, was Rs 2,060 per quintal for 2022-23
  • In 2023, basmati prices remained between Rs 3,500 and 5,500 per quintal[9]
  • In some years, the average rate of Basmati remained between Rs 2,500 to 3,500 per quintal which was not encouraging

-- The paddy could be sold for Rs 57,680 to Rs 74,160 per acre depending on yield as per the MSP of paddy
-- Basmati could be sold for Rs 64,000 to Rs 1 lakh per acre despite the lower yield for decent market price

All factors favour the aromatic Basmati rice crop but fluctuating market prices and no MSP are a big hinderance for large scale adoption by farmers

References:

  1. https://www.babushahi.com/full-news.php?id=196857 ↩︎ ↩︎ ↩︎ ↩︎

  2. https://www.tribuneindia.com/news/punjab/basmati-sells-for-record-5-005-qtl-in-bathinda-552193 ↩︎

  3. http://timesofindia.indiatimes.com/articleshow/112436112.cms ↩︎

  4. https://www.cnbctv18.com/india/india-removes-basmati-rice-minimum-export-price-extends-duty-free-yellow-pea-imports-19476089.htm ↩︎

  5. https://www.babushahi.com/full-news.php?id=169006 ↩︎

  6. https://www.hindustantimes.com/cities/chandigarh-news/pilot-project-to-cultivate-residue-free-basmati-in-amritsar-minister-101694977132145.html ↩︎

  7. https://economictimes.indiatimes.com/news/economy/agriculture/punjab-targets-to-bring-20-pc-more-area-under-basmati/articleshow/101432079.cms ↩︎ ↩︎ ↩︎

  8. https://indianexpress.com/article/explained/the-case-for-basmati-as-a-paddy-replacement-in-punjab-despite-no-msp-and-lower-yield-8383858/ ↩︎ ↩︎

  9. https://www.tribuneindia.com/news/punjab/eyeing-good-returns-farmers-of-muktsar-bet-big-on-basmati/ ↩︎