Scanty monsoon rains and expectations of better returns have boosted the cultivation of premium basmati rice in India, the world's second biggest rice producer and top basmati seller, improving the prospects of more exports, government officials said.
Basmati rice brings higher returns, requires less water and can be sown late, factors that attract farmers in the northern Indian states of Punjab and Haryana. These states account for over 70 percent of India's output of the aromatic, long-grain staple, which has been exempted from a rice export ban. Monsoon rainfall in Punjab and Haryana has been about 70 percent less than the average level so far, the weather office data showed. "There was less rainfall during the transplantation period of paddy, therefore area under basmati will certainly rise," said P.S. Rangi, marketing consultant, Punjab State Farmers' Commission. The Punjab government estimates that the area under basmati varieties may rise to 750,000 hectares this crop year, up 10 percent year-on-year, while the farm department in Haryana expects it to rise to 800,000 hectares, up 2.5 percent.
"Weak monsoon and expectations of higher returns on basmati varieties, following the removal of minimum export price are reasons for increase in the area under basmati," said B.S. Duggal, additional director with the Haryana government's farm department. India's annual basmati exports could rise as much as 15 percent in 2012/13, touching a record 3 million tonnes, industry officials had said in June.
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