LUDHIANA – The Agricultural Market Intelligence Centre (AMIC) of the PAU Department of Economics and Sociology has advised the farmers to sell basmati immediately after harvesting as there is no scope for increase in the prices during coming months. Dr Jagrup Singh Sidhu, In charge, AMIC, said that harvesting and marketing of Pusa-1121 basmati rice, which accounts for about 80 per cent of the total basmati rice production in Punjab, has started. Keeping in view the farmers’ curiosity to know about the expected trend in the prices, Dr Sidhu had cautioned them before sowing that more area under basmati may suppress prices due to gap in demand and supply, resulting into excess carry over stock from the previous years. The farmers were also told that its export market is limited to about 2 to 3 million tons. The domestic and export demand is expected to increase less than 10 per cent per year, said he, adding that about 70-80 per cent of Indian population consume non-basmati rice. Dr Sidhu told that to facilitate marketing decisions of the farmers, the centre has gathered and analyzed market intelligence regarding Pusa-1121 basmati rice from various sources and forecasted its prices in the range of Rs.1700 to 1900 per quintal during the marketing season, 2011-12. He pointed out that market price of Pusa-1121 in the major growing states ruled between Rs. 1900 to 2300 during 2010-11. The oversupply of basmati rice in the Indian and international market is likely to continue due to over production resulting into more and more carry over stock. He further said that this will put downward pressure on its prices during the marketing season, 2011-12.
Dr Sidhu disclosed that India produces more than 70% of world basmati rice and the rest is produced by Pakistan. Major importers of Indian basmati are Saudi Arabia, UAE, Iran and Kuwait. Its production in the country was 6.5 million tons in 2010-11 which is expected to increase to 7.5 million tons during 2011-12 due to good weather conditions and increase in area in major basmati producing states such as Punjab, Haryana and Western UP, revealed Dr Sidhu. He told that the Indian export of basmati rice is expected to increase from 2.2 million tons in 2009-10 to 2.65 million tons in 2010-11 mainly due to crop damage caused by severe floods in Pakistan which normally accounts for one third world trade of basmati rice. Dr Sidhu informed that in Punjab, the area and production of basmati rice has slightly increased from 5.5 lakh hectares and 15 lakh tons during 2010-11 to 5.71 lakh hectares and 16 lakh tons in 2011-12, respectively.
