Bengal’s premium variety of aromatic rice – Gobindobhog – has been witnessing a steady rise in prices backed by a firm demand from both domestic and international markets particularly Dubai and West Asia.

Production has also been steadily increasing as farmers are earning better returns on cultivation of this variety as compared to the common paddy (Swarna).

The average price of Gobindobhog paddy at the farmers’ end firmed up by nearly 10-12 per cent to ₹3,500 a quintal (₹3,200).

The price at the millers’ end is hovering at around ₹6,000 a quintal, while in the retail market it is fetching around ₹7,500 a quintal.

Higher prices

According to Suraj Agarwal, CEO, Tirupati Agri Trade, Gobindobhog prices have remained firm throughout the year due to a steady demand from South India.

This apart, demand has also been coming in from Dubai and West Asia.

“The new crop has started arriving into the market as harvesting started in end November. It is fetching close to ₹35 a kg, as compared to ₹41-42 a kg for the old crop. On a year-on-year basis, prices are up by nearly 10-12 per cent as compared with ₹32 a kg same period last year backed by a firm and growing demand,” Agarwal told BusinessLine .

Prices are likely to increase to ₹38/kg by January due to ageing of the rice.

The older the crop the higher the price it fetches as the demand is higher for old rice, a rice mill owner said.

Production up

Driven by the prospect of earning more, many farmers have turned to cultivating Gobindobhog and there has been a steady rise in its production.

While it was largely cultivated in the East Burdwan district, now it is also being cultivated in some parts of Midnapore.

Production is likely to be higher by around seven per cent at close to 3 lakh tonnes (lt) in 2020-21, as against 2.8 lt in FY20. Nearly 55-56 per cent of this is converted into rice.

The area under cultivation, which was close to 35 hectares in 2016-17, has increased to 51 hectares in 2018-19.

This is likely to increase by another 5-10 per cent this year.

Farmers cultivating this variety stand to earn ₹2,000 a bag (of 60 kg) or close to ₹3,300 a quintal, compared with ₹800-900 a bag (of 60 kg) or ₹1,500 a quintal for the common Swarna variety.