Basmati arrival in various mandis of Punjab have witnessed over three fold rise in the current procurement season as compared to the corresponding period last year. This year, the total arrival was 4.39 lakh tonnes as on October 27, compared to 1.32 lakh tonnes during previous year. Despite increase in arrival, there is profit for the Basmati growers as they are getting better price for their crop. This year, the premium Basmati is being procured at Rs 4,100 a quintal, while last year it fetched Rs 2500 a quintal.
Experts informed that the Punjab government recently abolished market fees, rural development fee and infrastructure development cess on Basmati, which is the main reason behind increase in arrival. One of the senior official in state mandi board added that for the promotion of Basmati exports, the state government has exempted various taxes. Earlier, traders and millers used to procure the crop directly from the farmers in order to avoid these taxes, as a result mandis used to witness less arrival of Basmati.
To encourage the farmers of the state to grow and process Basmati under the state government's crop diversification program, the Punjab Cabinet had earlier exempted the Basmati from the infrastructure development cess. Furthermore, the government had also waived off the rural development fee (RDF) and market fee on the Basmati variety of Paddy.
He added that exemption of two per cent Rural Development Fee (RDF), three per cent of Punjab Infrastructure Development Fund and two per cent market fee would entail an extra expenditure to the tune of Rs 200 crore annually on the state exchequer.
Punjab is a major grower of Basmati crop especially PUSA 1121 and area under Basmati in the state is pegged around 6 lakh hectares out of total area of 28 lakh hectares. Further, a yield of 20 to 25 quintals is expected from each acre.
