| Date: |
14-10-2014 |
| Subject: |
Iran's hike in basmati rice import duty hurts Punjab farmers |
|
PATIALA: Increase in import duty by Iran on basmati rice from India to 45% from 10% has hurt Punjab farmers and exporters alike as it has led to a drop in the demand for the aromatic food grain lowering its rates in the domestic market. Buoyed by last season's prices, Punjab farmers had increased the area under basmati considerably who are now getting lower rates for their produce as compared to the previous year.
Area under basmati is 8.16 lakh hectares (20.40 lakh acres) this year, up from 5.50 lakh hectares in 2013. Sources said output of basmati paddy is likely to touch 40 lakh tonnes this year. New basmati variety, Pusa 1509, is selling in the range of Rs 2,300-2,700 per quintal. Rice millers, traders and exporters say even the rates of Pusa 1121, arrivals of which will start in the first week of November, are not going to cross Rs 3,000 per quintal. Pusa 1121 had touched Rs 4,400 per quintal last season.
"Given the sentiment in the international market and much higher estimated output of basmati in Punjab, we are not expecting prices of Pusa 1509 to go up in the coming weeks. Same will be the case with the all-time favourite strain PUSA 1121, which is unlikely to cross the Rs 3,000 per quintal mark this year", said Rajeev Dehra, a Rajpura-based basmati trader.
Quizzed about weak basmati prices, Patran-based trader Naresh Goyal said, "Iran is the biggest buyer of Pusa basmati, and a major factor behind the bearish sentiment is 35% increase in the import duty it. Indian importers are not getting bulk orders from Iran due to stiff hike in the import duty. Hence, prices are down this year."
Source : timesofindia.indiatimes.com
|