After remaining placid for some time, the price of basmati paddy in Punjab and Haryana have shot up by 20-25 per cent on the back of rising domestic demand and hoarding of the crop by big farmers.
The price of PUSA 1121 variety, which has seen record jump in area under cultivation in both the states during Kharif season 2009-10, has gone up to Rs 23-24 per kg from Rs 15-18 per kg (at the time of start of crop arrival), according to traders.
The rate of traditional PUSA 1 variety has jumped to Rs 28-35 per kg against Rs 25-27 per kg, while another basmati variety HBC 19 has spiked by Rs 1.50 per kg to Rs 18.50 per kg, they informed.
"The price increase in basmati variety is on account of increase in domestic demand ...moreover hoarding of crop by farmers to fetch better returns is another reason for price spurt," said a rice exporter.
Notably, the price of basmati variety, especially, PUSA 1121 had gone down by as much as 40 per cent during the time of crop arrival this year compared with last year's prices because of oversupply.
The area under the basmati variety of crops in Punjab and Haryana surged in the range of 20 to 55 per cent during Kharif season 2009-10 with PUSA 1121 variety of basmati paddy holding a major share.