The Hindu Business Line : Threat from aromatic varieties

New Delhi, Oct.8 The long-term threat to the Centre’s rice procurement programme — at least in Punjab and Haryana — will come mainly from basmati and other aromatic varieties, as these become increasingly profitable over the normal long-grain paddy. The normal long-grain ‘Parmal’ or PR-106 paddy varieties yield 27-28 quintals an acre. Taking a minimum support price of Rs 715 (even after adding a likely Rs 40 bonus), the gross income for the farmers works out to about Rs 20,000 an acre.

On the other hand, the average yield for Pusa Basmati-1 ranges from 18-20 quintal an acre, while being higher at 18-24 quintals for ‘1121’. While yields may be somewhat lower, the realisations are much more — Rs 2,000 per quintal for Pusa Basmati and Rs 2,100 per quintal for ‘1121’. The gross income, thus, comes to between Rs 36,000 and Rs 50,000 an acre.

The calculations are similarly favourable even for non-basmati aromatic varieties such as ‘Sharbati’, which is now selling for Rs 1,400 per quintal, with a yield of 25 quintals an acre. Only in the case of traditional tall basmati cultivars like HBC-19 — where yields are only about nine quintals per acre — the higher realisation of Rs 2,200-2,400 a quintal does not fully justify a shift in area from the rice that is sold to the Government.

“Even if prices for basmati crash next year to Rs 1,500 a quintal, the farmer can still make more by cultivating 1121 or Pusa Basmati”, noted Mr Anil Mittal, CMD of KRBL Ltd, maker of the India Gate basmati brand.