Trucks laden with Basmati rice are trying to enter Punjab from UP and Bihar and are being prevented from entry by Punjab farmers’ associations.

India is largely known for being one of the globally leading countries in rice production, especially Basmati rice. Basmati has the highest demand in the premium rice segment driven by private players in India and is not much regulated by the Indian Government. It has been exporting a large amount of Basmati rice for a long time now.

Farmers have been facing pricing issues considerably more in this year in Punjab due to the heavy influx of basmati from neighboring states as compared to last year. Punjab Farmers feel that traders, rice millers, and few politicians have their own understandings and networks and are involved in bringing Basmati from UP, Bihar, and Madhya Pradesh (MP). This has led to a negative impact with respect to the interest of Punjab farmers as millers are pressurizing them to sell their own Basmati Rice at a rate much lower than the agreed market price. The millers are insisting on this, since there is already enough supply from other states.

This year, the farmers observed that for one of the widely sold varieties of Basmati Rice-Basmati Pusa 1509 the rate is currently at Rs. 1600-2100 per quintal against Rs. 2500-2700 per quintal last year. Traders shared that Basmati variety 1121 will not sell at a much better rate.

Famer union leaders have objected to this concern of pricing and Punjab is keen to sell premium Basmati rice at Minimum Support Price (MSP) (when it can be sold higher) since a sudden influx of paddy from Uttar Pradesh and Bihar is on the rise. To protest this, farmer union leaders have caught several trucks of Basmati near the Punjab-Haryana border. The farmers holding onto the trucks are serving food to the truck drivers for the last one week as shared by the unions.

During this pandemic, the Punjab government has converted rice shellers into purchase centers/mandi yards to avoid heavy rush in the designated mandis. Since the rice shellers are serving as mandis, they cannot indulge in their own sale or purchase.

One of the farmers from Majitha shared, “If basmati inflow from other states is not stopped by the government then the fate of Punjab’s farmers will be at stake. Why will they grow Basmati if it has to be sold below the MSP of Paddy?” He feels that politicians have no mercy for poor farmers.

While a rice exporter shares that now premium basmati rice is seen to be grown in other states then why would one restrict themselves to Punjab and pay higher rates. Punjab accounts for over 100 Basmati manufacturing units majorly used for domestic supply and export requirements. The export contribution of Punjab is almost 45% of the total country’s export of basmati rice, at around Rs. 34,000 crores. This sudden protest by Punjab farm unions at other border locations like Ludhiyana, and other districts is disrupting the supply chain process and leading to financial losses.

The author is a student member of Amity Centre of Happiness.