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Sunday, March 29, 2009

Basmati prices jump 40%

THE prices of Pusa 1121 variety, the latest entrant into the elite basmati club, have shot up by about 40% in the domestic market in the past 10 days on increased export demand from the Middle East. The price of Pusa 1121 variety of paddy has surged to Rs 2,500 a quintal in the domestic market from Rs 1,800 a uintal 10 days ago, traders said, adding that the price may translate into as much rise in terms of rice, too. Pusa 1121 was included in the basmati rice category four months ago.
    Export demand has increased from Saudi Arabia and a few European nations though the EU has
not yet accepted the variety as basmati rice, traders said. They added that the supply of the aromatic rice from Pakistan, another major producer, has probably exhausted, prompting buyers to turn to
    India, which offers better quality though
commands higher price as well.
    It is learnt that rice to the tune of 5-6 containers are being contracted regularly and exporters are getting about $1,050 a tonne and adjusting it with the minimum export price of $1,100 a tonne by including a commission of $50
that they pay to brokers. The rise in demand for pusa 1121 variety has impacted the price of pusa basmati, which is the first hybrid in the aromatic rice category.


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