New Pusa variety to boost Basmati rice exports

Pusa Basmati 1509 was commercialised in kharif sowing season this year for the first time

With the commercialisation of the new Pusa Basmati 1509 variety, exports of basmati rice from India are set to exceed four million tonnes (mt) this year, 11 per cent more than last year.

Developed by the Indian Agricultural Research Institute last year, Pusa Basmati 1509 was commercialised in the kharif sowing season this year. With an estimated output of 30,000 tonnes, the new variety offers a yield of 6.5 tonnes a hectare, against the popular Pusa 1121 variety’s yield of 4.5 tonnes a hectare.

“India can achieve total basmati exports of about four mt this year, against 3.5 mt in the previous year, owing to robust demand from importing regions, including the West Asia, the UK, and the US,” said M P Jindal, president of All India Rice Exporters’ Association.

At Rs 16,523.87 crore, guar gum led the list of Indian agri exports in 2011-12, against Rs 15,449.6 crore for basmati rice. The trend continued in 2012-13—guar gum exports stood at Rs 21,287.01 crore, against Rs 19,419.39 crore for basmati rice. This year, however, basmati rice is set to regain the top slot on the agri exports list, owing to a spurt in realisation and a sharp decline in guar gum prices. While guar gum prices have fallen 85 per cent to about Rs 15,000 a quintal from Rs 1,00,000 a quintal two years ago, export realisation from basmati rice soared about 50 per cent to Rs 73,150 a quintal from Rs 48,610 a quintal during the same period.

Gurnam Arora, joint managing director of Kohinoor Foods, the producer of Kohinoor brand basmati rice, said, “Basmati rice farmers’ incomes have increased 30-50 per cent this year due to robust global and domestic demand. Globally, demand has outpaced supplies, leading to firm prices. Surprisingly, consumers have accepted the price spurt and, therefore, more price rises cannot be ruled out.”

  A CARE Ratings study showed India's basmati rice exports grew at a compounded annual rate of 22 per cent during the four years ended 2011-12, driven by an increase in demand from the key importing countries of Iran, Saudi Arabia, UAE, Iraq and Kuwait. The study forecast a stable outlook for rice exporters this year on expectations of a good harvest in the 2013-14 crop year.

Also, the demand outlook for the industry remains healthy, with increasing domestic consumption and export demand of basmati rice, given India’s dominant position in the global basmati rice segment. Jindal said this year, the procurement cost of basmati rice had risen to Rs 59 a kg from Rs 38 a kg last year.

Therefore, farmers were the biggest beneficiaries of the price rise, he added.