Punjab Basmati Rice: A Need to Explore its Production and Export Potential

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1 Punjab Basmati Rice: A Need to Explore its Production and Export Potential Jagshand Singh Chhina, Bhupinder Singh and Narinderpal Singh* (PAU, RRS, Gurdaspur and FASS, Amritsar)

2 Introduction Basmati rice is characterized by superfine, extra long grains having a length breadth ratio more than 3.5 with extra elongation and least breadth wise swelling on cooking. Basmati grains contain 0.09 parts per million of the chemical compound 2-acetyl2 acetyl-1-pyrroline, which is about 12 times more than concentrations found in unscented rice varieties, which gives it distinctive spicy fragrance.

3 Objectives of the study To examine the production of Basmati rice in the study area. To study the export potential of Basmati rice. To develop the policy implications.

4 METHODOLOGY The study ( ) 06) was based on both primary and secondary data and focused in districts of Amritsar and Gurdaspur. A multi stage, random sampling technique was adopted for selecting the study sample. Two blocks from each district were selected and then three villages from each block, resulting into choosing a total of 12 villages in all.

5 Selection of sample in district Amritsar (Block) Ajnala (Village) Bhullar B. grower =78 Sample = 8 Bhalapind B. grower =54 Sample = 6 Boparai B. grower =54 Sample = 6

6 Selection of sample in district Amritsar (Block) Amritsar-1 (Village) Mudhal B. grower =75 Sample = 7 Ballian Manjpur B. grower =67 Sample = 7 Talwandi Ghuman B. grower =62 Sample = 6

7 Selection of sample in district Gurdaspur (Block) Gurdaspur (Village) Lakhowal B. grower =55 Sample = 6 Ammipur B. grower =72 Sample = 7 Bhullechack B. grower =68 Sample = 7

8 Selection of sample in district Gurdaspur (Block) Batala (Village) Ammo Nangal B. grower =61 Sample = 6 Dhalla B. grower =82 Sample = 8 Mararr B. grower =71 Sample = 7

9 Categories and sample size Category Small Area (Hac) < 2.1 Sample size (No of farmers) 39 Medium 2.1 to Large > 4.3 9

10 METHODOLOGY The values of the intercept a and regression co-efficient b have been estimated by using least square method as given below: Yt = a + bt Where; Yt =Production/export/import values of basmati considered in year t a = Intercept b = Regression coefficients with respect to input variables Compound growth rates of basmati export were computed using the following log linear equation; Yt= αβt eu Or Log Yt = log α + t log β + U CGR = (β 1) 100 Where; Yt = Volume of export of basmati in year t αβ = Regression coefficients U = Random term

11 Table 1. Regression Coefficient For Basmati Rice on Sample Farms, Punjab ( ) 06) Regression parameter Small Farms Medium Farms Large Farms Overall Farms Intercept Area (ha) Human labour (Rs./ha) Farm Machinery (Rs./ha) Irrigation (Rs. /ha) Seeds (Rs./ha) Manures and Fertilizers (Rs/ha) Plant Protection (Rs/ha) (1.492) (0.231) (0.102) (0.198) (0.157) (0.015) (0.111) (0.084) Sum of electricity R Figure in parenthesis represents the standard errors (1.583) (0.103) (0.211) (0.198) (0.142) (0.206) (0.119) (0.042) (1.487) (0.149) (0.146) (0.213) (0.63) (0.052) (0.99) (0.079) (1.987) (0.073) (0.095) (0.212) (0.141) (0.126) (0.112) (0.78)

12 Table 2. Production, Consumption and Marketable Surplus of Basmati Rice on Sample Farms, Punjab ( ) 05) (Quintals) Category Total production Total consumption Marketable surplus Small farms (95.43) Medium farms (97.97) Large farms (97.53) Overall farms (97.27) Figures in parenthesis represent the per cent to total production.

13 Table 3. Basmati Rice Exports from India, to Year Price Rs/ metric tonne Quantity 000 tonnes Basmati Rice exports (Rs. Million)

14 Table 4. Basmati Rice Exports from India, to Year Price Rs/ metric tonne Quantity 000 tonnes Basmati Rice exports (Rs. Million) CGR to * (0.6096) ** (1.4625) * (3.6955) CGR to * (2.2548) 12.86* (2.7530) 23.15* (3.5319) CGR to * (0.9672) NS (3.6881) * (1.4818) Basic data Source: Agricultural & Processed Food Products Export Development Authority, New Delhi.

15 Table 5: Recommended Basmati varieties for cultivation in Punjab Sr. No. Variety Released in Punjab Maturity duration (days) Height (cm) Av. Yield (Kg/acre) 1. Punjab Mehak Punjab Basmati Pusa B Super Basmati Basmati Pusa Basmati Basmati Source: Package of practices for Kharif crops 2009 (PAU)

16 Table 6: Area, average yield and production of Basmati in Amritsar district of Punjab Year Area Av. yield Production Market arrivals (000 ha) (Kg/ha) (000 MT) (000 MT) * Source: CAO; DMO, Amritsar * Estimated,

17 Table 7: Year wise market prices of Basmati paddy in Amritsar district of Punjab (Rs/qt) Year Minimum Price Maximum Price Average Price Difference in max and min price (up to ) Source: DMO, Amritsar

18 Policy Implications It is more remunerative to increase the area under basmati rice as it will increase the returns on the farms and will also help in reducing the exploitation of under ground water. Government can demarcate specific basmati zone for its promotion and which can be protected under GI. Special incentives for the export of Basmati rice can be considered under VKGUY/ VKUI as being given to various agricultural commodities. A Basmati development board in the area with necessary infrastructure and marketing information system can be developed. Gurdaspur and Batala should be brought under the jurisdiction of Amritsar office of DGFT instead of Ludhiana due to its close proximity.

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