Pusa 1121 paddy arrives in market, but buyers wary

Praful Chander Nagpal

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Fazilka, October 18

Even as the Pusa 1121 variety of basmati has started arriving in one of the largest grain markets of the Northern region in Fazilka, the purchase is yet to begin. Rice mill owners, who are bulk buyers of the variety, are hesitant about purchasing basmati due to huge financial losses incurred last year, due to low prices of basmati in the international market.

“It will not be viable for rice millers to offer more than Rs 1,700-1,800 per quintal to farmers to meet the input cost to run their mills as the exporters have announced the price of fresh basmati rice as Rs 3,700 to 3,800 per quintal,” said Ranjam Kamra, spokesman, Basmati Rice Millers Association, Punjab.

There is apprehension among rice millers as a large quantity of old stocks is yet to be liquidated.

On the other hand, farmers are also worried about the proposed prices of their produce. Sources said fresh basmati paddy fetched only Rs 1,700 to 1,900 per quintal in other markets of the state. “The farmers should be offered at least Rs 2,500 per quintal to make the cultivation of basmati viable and to promote diversification,” said Om Singh of Pakka Chisti village, who is sitting in the market for the last one week awaiting auction.

The sources said farmers were trying to delay bringing their produce to the market in hope of getting remunerative price. Although the state government has announced MSP of all varieties of paddy to be Rs 1,450, the aromatic 1121 variety is sold on higher rates.

The economy of the district, particularly Fazilka and Jalalabad subdivisions, is largely dependent on rice trade in the absence of any other industry in this border belt. Paddy is sown in about 97,000 hectares (basmati in 72,000 hectares and parmal in 25,000 hectares) in the district.

The farmers and rice millers have demanded that the Centre should introduce an export policy to save its patent product of basmati.