Threats to Basmati Rice Production

Basmati Rice contributes nearly half of the total rice export earning each year. During 2011-12 Basmati exports of 1.138 Million Metric Tons earned 953 Million $ whereas non Basmati exports of 2.554 Million Metric Tons earned 1138 Million $. The first variety was identified and later registered in 1933 by the Kala Shah Kaku Rice Research Station as Basmati 370 or the well known 'Desi Basmati. Many other varieties of Basmati were also identified or developed and registered later by the Rice Research at Kala Shah Kaku. Advancement in research in the non-Basmati sector has led to the introduction of Hybrid rice. This technology achieved a land mark break through over a decade ago and is reaching new heights of production levels of up to 200 maunds per acre. Although these super hybrids have not reached the country yet time is not far away when they will. Even with the first & second generation of imported hybrid seeds currently available in the country, the area under Basmati cultivation is reducing each year.It has reduced by 15% in one year. The increasing hybrid rice seed imports are a clear indication of this trend. These imported hybrids are claimed to yield 100-l40 maunds per acre of paddy which at the current market rate of Rs. 850 of per 40 kg fetch Rs. 80-90 thousand to the farmer. These returns can surely cover the increased production costs which have doubled over last two years.
 The threats are not limited to the domestic front only. India, the only other producer of Basmati is also not playing fairly. During the last few years when all rice exports, except Basmati were banned by India to ensure sufficient availability for domestic consumption, the Commerce Ministry of India termed a non Basmati variety as Basmati and got permission to export this non Basmati variety. Since it was labeled as Basmati it was marketed at the same price ranges as those prevalent for Basmati. In 2011-12 when India opened up rice exports of all varieties, the same variety was marketed at low rates of 670 $ per ton which came as a shock for the Basmati exporters of Pakistan causing paddy buyers to pull out from the market when it was peak harvest time. It took about a fortnight to finally settle down.
The inherent threats of disease spread through of unchecked import of new plant diseases, the continuous reliance totally on imports and loss of the comparative advantage of Basmati are the apparent risks to the farmer. In the absence of a competitive policy the trend is bound to accelerate in the coming years. It is high time that the stakeholders chalk out a strategy to counter the onslaught before it is too late. During 2011-12, total production of rice in the country increased by 16.6 per cent due to 8.86 per cent increase in area and 7.11 per cent in yield. However, production of Basmati rice declined byl9.30 percent over the last year. Basmati Rice has recently been bullish after June and has reached new heights at Rs3500 -4000 per 40 Kg. This encouraging trend has sustained for over last three months and will have a positive effect on the coming Basmati paddy prices which are expected to range above Rs 2000. This has pulled non basmati paddy prices above Rsl000, making it feasible for the farmers to grows.The US Food and Drug Administration (USFDA) has found arsenic content in about 30 samples of Indian basmati rice in its preliminary analysis. The regulator would issue advisory to consumers only after completing its entire study. However, exporter from India said that basmati rice was Ofree from arsenic content as all shipments are made only after complying with required tests Arsenic is a chemical matter present in the environment from both natural and human sources. It is found in water, air, food and soil in organic and inorganic form. As of now, the USFDA has collected 200 samples of rice and rice products available in the American market from different countries including India. "The FDA is in the process of collecting and analysing a total of approximately 1,200 samples to examine the issue thoroughly. This data collection will be completed by the end of 2012. Once the data collection is completed, FDA will analyse these results and determine whether or not to issue additional recommendations," the USFDAsaid in a release. Of 200 samples released yesterday, as many as 34 samples were from Indian origin basmati rice. Of that, 31 samples contained inorganic arsenic content in the range of 1.8 to 6.5 microgram per serving.