Located in Asia, India is the leading rice exporter of the world. It commands a mammoth 40% share in the global rice trade and different varieties of Indian rice enjoy strong global demand worldwide. From Kheers to Biryanis, Indian rice has marked its presence across cuisines and among all the varieties of Indian rice, Basmati rice enjoys a great global demand
Favorable climatic conditions coupled with government initiatives have helped India establish its name in the global rice market. Central and state governments regularly guide, assist and take initiatives to promote the cultivation of the staple and this year as well the Punjab government is planning to fix a support price of the aromatic paddy for the upcoming season.
Punjab Government’s Plan
The state of Punjab holds huge significance when we talk about Indian basmati rice. Of the total Rs 12,000 crore basmati rice export every year, Punjab alone contribute 40% of the total exports.
Recognizing the significance, the Punjab government is planning to fix the support price of aromatic paddy variety between Rs 2600- Rs 2800 per quintal for the upcoming season. This would help stabilize the prices of aromatic variety of rice, especially in the absence of minimum support price (MSP) by the GOI.
Why Is The Decision Significant?
The Punjab government’s plan is of huge significance as currently there is no minimum support price (MSP) fixed by the government for aromatic paddy. In the absence of MSP, the basmati growers sell the aromatic grain in the open market and to big export houses and while the rates usually remain high, international trade dynamics and price fluctuations can at times lead to losses.
Last year, the premium grain prices touched Rs 3500 per quintal; however, there have been instances where the grain prices stood at Rs 1800 per quintal.
The move by the Punjab government will for provide price support to the basmati rice growers and will for sure motivate them to carry out with production process.
The Bottom Line
India is one of the pioneers in global rice market and initiatives and measures by the government have helped India achieve this feat. The central and state governments always assist, guide and take steps to help the rice growers cultivate and promote their produce in global markets and this time as well the Punjab government is planning to take a step in this regard.
Accounting for 40% of the total basmati rice exports, Punjab plays a crucial role when we talk of Indian basmati rice and realizing the same, the Punjab government is planning to fix the support price of the aromatic paddy for the upcoming season. The idea is to make Markfed, the agency to support basmati rice crop and a formal announcement in this regard is expected shortly.
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