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Agri-Biz & Commodities - Rice
Pusa 1121 gets notified as basmati rice

Growing areas confined to Delhi, Punjab & Haryana.

G. Srinivasan

New Delhi, Nov. 3 The Union Agriculture Ministry has at long last notified evolved basmati rice Pusa 1121 as basmati after it said so five months ago while bringing about a new definition of what constitutes basmati rice in May 2008.

The move is in response to the clamour from the growers of the evolved basmati rice variety at Punjab, Haryana and in North India.

Restrictive clause

However, the notification issued on October 29, 2008 clearly spelt out a restrictive clause by substituting the words “the whole of India” under the Seeds Act, 1966 relating to Pusa Basmati 1121 as applicable to “Delhi, Punjab and Haryana”. While basmati rice is grown in the Indo-Gangetic plains encompassing, besides the three States, Uttaranchal, western Uttar Pradesh and Jammu & Kashmir, the absence of the latter three regions has raised the hackles of the growers and traders of this variety of rice from these important States.

It might be noted that even as there was a delay in notifying Pusa 1121 as basmati, the Union Government opened up export of Pusa 1121 rice variety as non-basmati rice only in September when there was a general ban of export of non-basmati rice from April 2008, following the flare-up in domestic rice prices and the possibility of shortage developing if unrestricted export of rice is permitted.

Export duty

When contacted, the Commerce Secretary, Mr Gopal K. Pillai, told Business Line here that now that Pusa 1121 has been notified as basmati rice, the exporters have to fork out the export duty of $1,200 a tonne or Rs 48,000 and an additional customs duty of Rs 8,000 a tonne introduced on May 10 on basmati rice.

Reacting to the notification of the Agriculture Ministry, the President of All India Rice Exporters Association, Mr Vijay Setia, hailed the notification. He said it has complied with the long-standing demand of the exporters of this variety of rice, which is fetching high prices in the overseas markets.

Policy analysts conversant with the rice trade industry said the export standard of basmati rice notified by the Commerce Ministry in 2003 had circumscribed the breeding process or research method of basmati. But the new definition of basmati rice and notification of Pusa 1121 would be a breakthrough in farm research of this , paving the way for the country to unveil more varieties. This would vastly enhance the commercial value to the farmers and expansion of market, they said.

Flaws

Trade policy analysts are quick to point out some technical flaws in the new definition of Pusa 1121 as basmati in that it restricts that to Delhi, Punjab and Haryana, leaving other States such as J&K, Uttaranchal and western UP, which are also a part of the Indo-Gangetic plain and the designated area for growing this rice.

As the Geographical Indication under WTO postulates that the whole designated area is assumed to be similar environmental zone, by segregating two States out of the five States in the Indo-Gangetic plain, there would be valid questions as to how there could be differences in quality traits among the designated growing areas.

Tasks cut out

The Ministry of Agriculture has its tasks cut out in prescribing some policy on traceability mechanism to differentiate the produce of Punjab, Harayana and Delhi from other growing areas to maintain the sanctity of basmati labelling.

The rejection of other three States growing Pusa 1121, on any technical parameters, needs to be spelt out as farmers and traders growing this premium would feel irked by the Ministry’s notification, sources said.

Related Stories:
The Pusa 1121 puzzle
Rice exporters await decision on basmati definition

More Stories on : Rice | Standards & Benchmarks

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