Last Updated Date: 19 Aug 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 6.71 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 increasing Minimum Export Price[3]
-- It was set to $ 1,200/ton in 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
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. Ensuring Better Market Price[4]
3. Boost exports potential[5]
4. Organic Farming for Basmati[6]
| Year | Basmati Area |
|---|---|
| 2024-25 | 6.71 lakh hectares[1:1] |
| 2023-24 | 5.96 lakh hectares[1:2] |
| 2022-23 | 4.95 lakh hectares |
| 2021-22 | 4.85 lakh hectares |
| 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 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:
https://www.tribuneindia.com/news/punjab/basmati-sells-for-record-5-005-qtl-in-bathinda-552193 ↩︎ ↩︎
http://timesofindia.indiatimes.com/articleshow/112436112.cms ↩︎
https://news.abplive.com/business/budget/punjab-budget-rs-1-000-cr-for-crop-diversification-bhagwant-mann-led-aap-govt-to-come-out-with-new-agriculture-policy-details-1587384 ↩︎
https://www.hindustantimes.com/cities/chandigarh-news/pilot-project-to-cultivate-residue-free-basmati-in-amritsar-minister-101694977132145.html ↩︎
https://economictimes.indiatimes.com/news/economy/agriculture/punjab-targets-to-bring-20-pc-more-area-under-basmati/articleshow/101432079.cms?from=mdr ↩︎
https://indianexpress.com/article/explained/the-case-for-basmati-as-a-paddy-replacement-in-punjab-despite-no-msp-and-lower-yield-8383858/ ↩︎ ↩︎
https://www.tribuneindia.com/news/punjab/eyeing-good-returns-farmers-of-muktsar-bet-big-on-basmati/ ↩︎
