India: Punjab Farmers Shifting To Basmati Variety

Rice experts in Punjab, India's fourth-biggest rice producer have expressed concerns that more and more farmers may shift to premium rice varieties after government-set prices fell below expectations.

India's central government had earlier raised the price it pays farmers for their grain to 850 rupees per 100 kg from 745 rupees last year, fell 150 rupees short of the recommendation of the Commission for Agricultural Costs and Prices (CACP).

Meanwhile farmers have been selling basmati at more than 3,000 rupees per 100 kg last season and Pusa 1121 between 1,800-2,200 rupees range.

India has allowed export of basmati rice and has broaden its basmati brand by including varieties like Pusa 1121, a move that has exempted 400,000 MT of long aromatic grain from an export ban and help farmers get a better price.