State farmers to gain as US agency clears basmati for exports

With the basmati being produced in Punjab found fit for export to United States, Japan and other countries after it met the US Food and Drug Administration norms, Punjab basmati growers are set to gain as prices have opened at ₹3,700 per quintal, nearly 25% higher than the previous year.

Factors like depreciating value of Rupee against the US Dollar, low carryover stocks and low area under basmati crop are set to give impressive returns to the farmers and exporters. Export of the produce was banned since 2014 after the US and European Union detected high pesticide content.

Punjab basmati is famous worldwide for its aroma. The teams of FDA in the US had visited basmati-growing areas in the state and expressed satisfaction over use of pesticides. The laboratory results of Agricultural and Processed Food Exports Development Authority (APEDA) found the basmati from Majha region free from five pesticides, which are banned in the US and Europe.

“After a gap of three years, many exporters have approached us to buy basmati for them. As a result, the prices of Basmati have surged 25 to 30 percent from last year. The 1509 Variety of basmati is fetching $2,700-2900 per quintal, while 1121, which is yet to arrive, has been already booked for $3,400-3,700 per quintal. Prices will increase as area under basmati is lower than the previous years,” said Deepak Kumar, a commission agent of Gurdaspur.

Agriculture secretary Kahan Singh Pannu said a four-monthlong sustained awareness campaign has yielded the results. “The department officials launched awareness drive and asked farmers to shun five chemicals which are banned in the US and European Union,” he said.

Punjab Rice Millers and Exporter Association president Arvinder Pal Singh said the success of the campaign was possible due to pro-active approach of the state government.

But European Union market is still not open for basmati. “The maximum residue level of USA and Japan is 3PPM and 5PPM for tricylazole, while it is 1PPM in EU, which is practically impossible to meet.