Basmati Prices Surge 53% to Rs 4,300 per Quintal as Punjab Expects Record 30 Lakh Tonnes Crop

Punjab’s grain markets are witnessing strong activity this season as a 53% rise in basmati prices has brought cheer to farmers. Prices of early-maturing varieties such as Pusa 1509 and Pusa 1692 have reached Rs 4,200 to Rs 4,300 per quintal, compared with around Rs 2,800 per quintal last year. Rising demand from Gulf countries has helped basmati growers fetch better prices for their produce. Punjab is also expecting a bumper basmati crop this Kharif season, with production estimated to reach around 30 lakh metric tonnes (LMT), compared with approximately 20 lakh tonnes last year. Improved yields, favourable weather conditions and an expansion in the area under cultivation have raised hopes of a profitable season for farmers, millers and exporters. The area under basmati cultivation in Punjab has increased by at least 45,000 hectares to around 6.70 lakh hectares. Early arrivals of the Pusa 1509 variety have indicated yields of 23-25 quintals per acre, compared with 16-18 quintals last year. The expansion in Punjab has partly been driven by farmers shifting from non-basmati paddy and maize to Pusa 1509, an early-maturing variety that offers export demand and the prospect of better prices. Delayed rainfall and late sowing have also influenced cropping patterns. Last year's floods, prolonged heat and adverse weather conditions damaged the crop and affected the rice industry. This season's improved crop conditions have raised expectations of higher availability and stronger procurement within the state. However, exporters are facing challenges arising from international maritime tensions, higher freight costs and vessel shortages. The Basmati Exporters Association has advised farmers to bring mature, properly dried grain to mandis to ensure better processing results. The industry has also been urged to prepare for higher volumes across procurement, milling, storage and exports if production approaches 30 LMT. Punjab accounts for approximately 20 per cent of India's basmati production, while its rice industry has processing capacity exceeding four million tonnes annually. Basmati rice does not have a government procurement mechanism or a fixed minimum support price (MSP), and its prices are determined entirely by the private market. Basmati cultivation is also considered more beneficial than non-basmati paddy for conserving groundwater, whose levels have been declining across Punjab. The crop requires less water than varieties such as PR-126 and PR-131 and produces considerably less paddy straw. Its early maturity gives farmers more time to manage crop residue before sowing wheat, helping reduce the pressure to dispose of paddy straw in a hurry.