Farmers hopeful of better basmati prices

With the Central Government removing the cap on export of basmati, the farmers are hopeful that prices in the local markets would witness a surge on Monday, when the mandis will open. The Centre had earlier fixed the minimum export price of basmati at 950 dollars per tonne. However, with the lower prices in international markets, the exporters were reluctant to buy basmati at decreased prices.

Dr Satnam Singh Ajnala of Jamhoori Kisan Sabha said, “The government had taken the decision after farmer unions had raised concerns on the issue.” He said with the prices of basmati hovering around 700 dollars per tonne, the traders were not offering more than Rs 2,500 per quintal to the local farmers. Dr Ajnala said an increase of upto Rs 700-800 per quintal was expected in the coming days.

The farmers said this season, the area under basmati has increased to 1.46 lakh hectares from 50,000 hectares last season as the government had encouraged farmers to cultivate basmati instead of other paddy varieties to conserve water, besides other reasons.

Jatinder Singh Chinna of Kirti Kisan Union said, “With the government taking interest in basmati, the farmers hoped that it would also do something to ensure better prices. However, the prices this year are much less than last year.”