Basmati prices escalate in Haryana as market widens

The premium basmati varieties including PB 30 is being sold above ₹ 6,000 per quintal, while the other two varieties of Pusa 1121 and Pusa 1718 were also getting around ₹ 4,000 per quintal.

Basmati prices escalate in Haryana as market widens

: The prices of the traditional basmati varieties of paddy in Haryana have registered a hike for the first time in several years, reaching over ₹ 6,000 per quintal, mainly due to the government agency HAFED foraying into the market and breaking the monopoly of private traders.

With the harvesting of the traditional basmati sowing belts of the state on the last leg, the premium basmati varieties including PB 30 is being sold above ₹ 6,000 per quintal, while the other two varieties of Pusa 1121 and Pusa 1718 were also getting around ₹ 4,000 per quintal.

According to farmers, the prices of long-grained premium basmati variety were around ₹ 3,800 to ₹ 4,000 in 2021, while it fetched ₹ 4,500 to ₹ 4,800 in 2020.

The premium aromatic rice was generally purchased by the private traders but for the past two years, Haryana State Cooperative Supply and Marketing Federation Limited (HAFED) has been buying paddy directly from farmers, giving a tough competition to the private traders.

“Since HAFED is directly involved in the purchase of basmati, this has given a tough competition to the private traders, leading to an increase in the prices. Now, the prices have gone around ₹ 6,000 per quintal for the first time in the past several years,” said commission agent Mahinder Singh of Karnal’s Nilokheri grain market.

HAFED officials associated with the procurement operations said that the agency was purchasing basmati as it has got export orders from different countries. The officials said that they will buy paddy until they achieve the targets in different districts.

In a statement in October, Kailash Bhagat, HAFED chairman said that the government agency, had earned a profit of around ₹ 207 crore during the financial year 2021-22. For the current fiscal year, it has got an export order of 20,000 MT basmati rice valuing 21.85 million USD from Saudi Arabia.

Meanwhile, farmers said that poor yield is also a reason behind the increasing prices.

“The average yield has come down to around 10 quintals from 15 quintals. But the increase in the prices will help to compensate the farmers for the losses caused due to poor yield,” said basmati grower Rishi Pal of Karnal’s Sikri village.

Moreover, growers of the aromatic long-grain basmati rice earn around ₹ 10,000 per acre extra from the crop waste as they said that paddy straw is used as cattle fodder.

Date: 23-Nov-2022
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