Punjab basmati a hit with multinationals

The basmati contract-farming programme, a joint endeavour of the Punjab government and multinational companies, has received a good response. This is expected to give the farmers of the state a break from alternating between wheat and paddy.

"Seeing the success of the programme, leading MNCs like Hindustan Lever and Pepsi Foods are going to increase their areas of cultivation under basmati three times, which will provide a major push to the Punjab Agro Food Corporation's contract-farming programme," said Kripa Shankar Saroj, managing director of the corporation.

To protect the environment and to improve the water level, the corporation is encouraging the farmers of the state to adopt basmati, which is less water-intensive.

He said Hindustan Lever, a leading basmati exporter with brands like Annapurna and Indus Valley, and with exports of more than Rs 100 crore, planned to cover 13,500 acres this year under the contract-farming programme in seven districts of the state, with more than 2,500 farmers participating, guided by agronomists.

During this season, focus would be on cultivating the super basmati variety also, which required 40 per cent less irrigation than normal paddy, Saroj said, adding that this was likely to improve the water situation in the state. Pepsi Foods was interested in increasing the area under basmati to 22,000 acres in Punjab, he added.

During the past years Pepsi purchased basmati from farmers with whom they were in deal. Due to this, Pepsi has a captive body of sellers. During this year, Pepsi increased procurement prices, Saroj said.

As per the programme, Pepsi would provide the high-quality certified seeds, along with agronomic services, to farmers with a buyback commitment, he said.