Less returns for Pusa rice as prices fall 35-40%

Written by Press Trust of India | Chandigarh | Updated: Nov 1 2009, 05:10am hrs
The expectations of paddy growers of Punjab and Haryana to fetch higher returns on selling basmati Pusa 1121 paddy variety may shatter this season as the prevailing rate of this variety is ruling 35 to 40% less than the last years prices.

However, farmers body Bhartiya Kisan Union (Rajewal) has accused rice-exporting community of deliberately causing lowering of rates by creating a cartel. As Pusa 1121 basmati variety of paddy has started arriving in grain markets of Punjab and Haryana in the ongoing kharif marketing season 2009-10, farmers are fetching much lower price of this variety compared with the price they got last year, traders said.

In Punjab, rate of Pusa 1121 variety is ruling at Rs 18-18.50 per kg, while in Haryana, the rate for the same variety stood at Rs 19 per kg, traders said. Last year, farmers of both the states fetched Rs 28-30 per kg on short supply of crop and increasing demand in export market. Notably, rice exporters before the start of the paddy procurement season this year had predicted lowering of Pusa 1121 rates due to substantial increase in its area in both states.