Basmati growers face losses as prices crash by Rs1,500/quintal

Basmati growers are staring at losses for the second consecutive year as the prices have plummeted.

With basmati arrivals picking up in mandis, PUSA 1509 variety was fetching between Rs 2,300 and Rs 2,500 per quintal, while PUSA 1718 has been sold for a maximum of Rs 3,300 per quintal.

Farmers said these varieties fetched them between Rs 3,500 and Rs 4,000 per quintal last year, whereas in 2023, they sold it for Rs 4,700 per quintal.

Rajesh Kumar, who has sown paddy on 17 acres of land in Muthianwali and Kabool Shah Hithar villages of Fazilka, said PUSA 1718 was fetching just Rs 3,300 per quintal as compared to Rs 4,000 in 2023 and Rs 3,500 last year.

“Farmers who grow PUSA 1121 variety are also staring at huge losses this year,” said Rajesh, adding that this variety fetched Rs 4,700 per quintal last year, but was now expected to remain between Rs 3,500 and Rs 4,000 per quintal.

Till Thursday, a total of 6.65 lakh metric tonnes of basmati paddy had arrived in the different mandis, with maximum arrival reported in Amritsar at 3.24 LMT.

Sanjeev Goldy Sachdeva, a commission agent in Fazilka, said while PUSA 1718 was still fetching a better price, other varieties like PUSA 1509 were being sold between Rs 2,700 and Rs 3,100 per quintal.

“Since basmati is not purchased on the MSP, the demand drives its prices. Exporters tell us that low global demand for Indian basmati is keeping prices low,” he said.

One of the reasons behind dip in basmati prices is cheaper and long grain paddy from Uttar Pradesh and Madhya Pradesh that’s being preferred by exporters, in the wake of global economic meltdown.

Ranjit Singh Josan, a basmati exporter, said the basmati crop in these two states and in Rajasthan was 20 per cent higher than previous years, thus farmers in Punjab and Haryana were not receiving a fair value for their produce.

“The conflicts in West Asia have led to fall in global demand for basmati. Due to incessant rains and flooding during the monsoon, the moisture content in basmati varieties like PUSA 1718 and PUSA 1121 is as high as 25 per cent, turning exporters away from this aromatic paddy,” he said.

Josan said payments of basmati exporters to Iran — one of the major buyers of Indian basmati — have been pending for eight months now.

“This has created an atmosphere of uncertainty and raised concerns among exporters. The higher US tariffs too have hit the exports,” he added.

Key figures

6.65 LMT arrivals

6.64 LMT bought

Rs 3,800 highest price

Rs 2,300 lowest price