It is due to the interest evinced by the State’s farmers in growing paddy that about 9 lakh MT paddy is expected to be produced during the Kharif year 2014.
During year 2013, less basmati paddy was produced in the state and country due to which farmers got prices ranging from Rs 3200 to Rs 3500 per quintal. Due to ample paddy production in the state and country coupled with fall in national and international demand during year 2014, farmers were being offered prices of paddy at Rs1000 to Rs1500 per quintal as compared to year 2013.
After comprehensive review of the situation, the state government made efforts to provide competitive prices of basmati paddy to farmers, exempted basmati paddy produced in the state from Mandi Cess from December 9, 2014 to May 31, 2015 and motivated other states to purchase basmati paddy. Teams of Mandi Boards are being sent to major basmati paddy Mandis in the state for inspection. Information is being displayed and announced in these mandis about the prices of basmati paddy prevailing in mandis in the vicinity of farmers as well as those of other states.
As a result of these efforts by the State government, declining prices of basmati paddy have been stabilized due to competition and now farmers are getting Rs2000 to Rs2300 per quintal. The state mostly produces Pusa-1121 basmati paddy. Prices of this variety of paddy are Rs2300 to Rs2500 per quintal in Punjab and Haryana presently.The state government is reviewing the situation daily. Further corrective steps will be taken in future.