This is perhaps the proverbial silver lining to the floods that ravaged the paddy belts of Punjab and Haryana in July. Fast-falling groundwater levels are up,acreage under water-guzzling paddy is down,and area under more frugal basmati varieties is up. According to estimates by the Agricultural and Processed Foods Export Development Authority (APEDA) of the Union Ministry of Commerce and Industry,basmati output is likely to go up by 5-7 per cent in the 2010-11 kharif season,bettering last years record production of 6.7 million tonnes. Last year,the area under basmati paddy in the country was around 17 lakh hectares; nearly 80 per cent in Punjab and Haryana,the remaining in Uttar Pradesh and Uttarakhand. Though the final figure will emerge after harvesting,we are estimating a jump of 5-7 per cent in overall production, said A K Gupta,APEDAs adviser (basmati). While there is a remarkable surge in the area under basmati in Haryana this year,in Punjab too it is likely to go past last years six lakh hectares. Our contribution of paddy to the central pool is going to decline this year as almost 65 per cent of our area under paddy is under basmati varieties (which are not procured for the central pool), said Haryanas additional director,agriculture,B S Duggal. It has increased from 5.5 lakh hectares last year to 7 lakh hectares in the 2010-11 kharif season. Against last years record production of 55 lakh metric tonnes (MT) of paddy,including basmati,Haryana will this year reach an overall production of about 49 lakh MT, Duggal said. In Punjab,where the area under basmati nearly doubled to 6 lakh hectares in 2009-10 from 3.5 lakh hectares in 2008-09,many farmers had opted for late-sown basmati after the floods as the sowing window for parmal (paddy procured for the central pool) was over. Punjab agriculture director B S Sidhu said,Basmati production is likely to be higher than last year. However,the precise percentage of increase can only be ascertained after harvesting. Crop exporters said business this year will depend on several factors. Last year,production was the highest ever and proved to be a dampener for prices. Iran,a prime market for Indian basmati,has clamped down on imports to safeguard the interests of its farmers. Also,since exporters have stocks left over from last year,prices may move as per market forces, said Amritsar-based K R S Sobti of Punjab Rice Millers Exporters Association. All India Rice Exporters Association president Vijay Setia said,Prices are presently 10-15 per cent higher than last year but the export demand is not very good. Buyers are waiting as there are reports of India having a good crop this year. Pakistans floods have damaged mainly its non-basmati crop,and it also has an exchange-rate advantage over Indian exports. Exporters are procuring basmati for Rs 1,900-2,050 per quintal this year,against the starting price of Rs 1,500-1,700 last year. The yield of basmati in Muktsar district is down but the prices are good. In mandis in Muktsar the starting range is between Rs 1,900 to Rs 1,950 per quintal, said Rajiv Ahuja,a leading commission agent of the district. In mandis of Ferozepur district such as Jalalabad,Fazilka and Abohar too farmers are fetching between Rs 1,900-2,050 per quintal for Pusa 1121,the main basmati variety grown in the district. Last year,the starting range was Rs 1,700 per quintal but went up to Rs 2,600 for the finest basmati. Reports of damage to basmati from floods in Amritsar and other districts has impacted prices in this district favourably, said Sandeep Kalra,a rice trader in Fazilka.
