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Rice exporters to produce better quality basmati

Lola Nayar in New Delhi

Indian rice exporters are proposing to use their resources to produce better quality basmati rice in the wake of US food technology firm RiceTec's emergence as a global competitor.

The All Indian Rice Exporters Association, jointly with the Agricultural and Processed Food Products Export Development Authority, has decided to set up a Basmati Development Authority to make available and promote use of best basmati varieties by farmers.

"While traders and exporters do not favour backward linkages with farmers as they prefer to go to the market and pick up the stock according to their need, they have supported a move to go in for seed development in alliance with APEDA," Gurnam Arora, former president of AIREA and managing director of Satnam Overseas Ltd, major exporters of basmati rice, said.

"This will enable the exporters to have a small role to play in the pre- and post-harvest development and marketing of high quality basmati," Arora said.

Funds for the project will be from the Basmati Development Fund, set up by the AIREA for promotion of basmati marketing. This body has been actively funding efforts to protect misuse of basmati as a trademark overseas and also against RiceTec Inc that had tried to get a patent on basmati on 20 counts but was ultimately given only on three.

India is the only country in the region to have around a dozen traditional varieties of basmati, which while having a low yield are highly priced for their unmatched quality, claim traders.

"A blueprint for the setting up the basmati development authority has been made. The proposal to promote breeder variety of seeds and sell high quality certified seeds to farmers is being worked out in greater detail," said Anil Adlakha, executive director of AIREA.

To be operated purely on trade considerations, the exporters body is hopeful of getting the project off the drawing board by yearend.

"We feel there is great potential to improve on the quality of seeds being made available to farmers. While not disturbing the state agencies, we can also have a role to play in seed development," an official said.

With exporters paying Rs 50 per tonne of rice they export, around Rs 30 million is collected annually by the Basmati Development Fund. A part of around Rs 200 million collected so far will be used to set up the new project.

It is planned to be a self-generating project with an interactive role for farmers. The body will also have close interaction with the leading agriculture research bodies within the country to keep abreast of the technologies and help farmers to implement them.

The role of APEDA will be to help the trade oversee the project and later in the marketing of the produce, said APEDA chairman Anil Swarup.

From exports of Rs 18.76 billion in 1998-99, some 70 percent to Saudi Arabia, the single biggest market for Indian basmati, the exports reached Rs 21.66 billion in 2000-01.

"This fiscal year we should be able to increase our basmati exports by 10 per cent despite a lower demand from Saudi Arabia. In addition, lately Pakistan has been giving Indian basmati a run for our money in the Middle East with cheaper rates," said Swarup.

Preparations are under way to set up the infrastructure for the new authority to start the project, which would include holding farm fairs to create better awareness among the farmers in the traditional basmati growing areas in Punjab, Haryana, Uttar Pradesh and Uttaranchal.

Indo-Asian News Service

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