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The prices of India’s premium rice varieties are expected to fall sharply due to bumper harvest, while exports are likely to remain unchanged owing to stiff competition with Pakistan.
04 May 2010
MUMBAI (Commodity Online): The prices of India’s premium rice varieties are expected to fall sharply due to bumper harvest, while exports are likely to remain unchanged owing to stiff competition with Pakistan.

Country’s stocks of basmati rice have quadrupled so far and the limited overseas demand is also mount pressure on the prices.

According to industrial experts, basmati stocks are expected to swell to between 1.2 million-2 million metric tons by the end of the year on September 30, from 300,000 tons a year earlier because of a bumper harvest of Pusa 1121, the newly labeled basmati variety.

The government included the Pusa variety into the basmati category in 2008 in order to help farmers to earn profit from the exports. On this farmers enlarged their acreage in 2009 that pushed to the a huge oversupply in the market, they added.

The rice variety has found ready buyers in the Middle East and commands a premium of $100-$200/ton over the floor price of $900/ton fixed by the government for basmati exports. Pusa 1121 accounts for more than 50% of total basmati exports.

The local price of Pusa 1121 has already dropped by 15% to Rs 21 per kilogram in less than a month. This would also pull down prices of other basmati varieties, industry officials said.

Meanwhile, the experts pointed out that the exports unlikely to surge in the line with the fall in prices as the demand for the aromatic rice is limited in the overseas market. Besides, Pakistani aromatic rice varieties are selling at a discount of $100-$150/ton over Indian varieties.

However, the fall in the prices is unlikely to discourage farmers from farming Pusa 1121 in the coming summer season. The basmati harvest is likely to be at least at last year's level or slightly more, industry officials said.

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COMMENTS (10)
Gurpreetsingh
05 Nov 2011
what about price for DV basmati rice today
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SUNIL KUMAR
15 Jan 2011
What aboubt price for basmati pusa 1121 rise today.
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Anter preet
10 Nov 2010
how much price a basmati pusa 1121 rise today
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Gurteg
28 Oct 2010
todays mandi price of 1121 basmati rice ,prices of basmati wiil rise or not because as per the farmers the yield is 4 quintal per acre less than the last year and many areas were flooded in rains.....
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Sonvir
04 Aug 2010
Iwant to know pusha basmati rice prices. and 1121 basmati rice prces. also DB rice prices.
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Mandeep
23 Jul 2010
I want to know what about today rate basmati rice 1121 rate
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Sunil
08 Jun 2010
I want to know what about today rate basmati rice 1121 rate
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Vikas Bansal
10 May 2010
I want to know what about Today rate paddy pusa1121 rate
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Deepak goel
05 May 2010
i want to know the pusa 1121 rate and demand in future
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Deepak goel
05 May 2010
i want to know the pusa 1121
Somisetty srinivasrao iwant to know the futue price of 1121basmati
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