The Global Demand for Haryana Basmati Rice

Haryana's Basmati rice holds a dominant position in the global market, boasting nearly 65% of India's exports to around 160 countries. This premium rice, especially from the Karnal district, is coveted worldwide, including in Gulf countries, Sri Lanka, Nepal, Italy, Thailand, Spain, China, Africa, the United States, and many European nations. The demand for Haryana's Basmati rice is consistently increasing, presenting significant opportunities and challenges for exporters.

Rising Global Demand

The popularity of Haryana's Basmati rice is on an upward trajectory. Each year, more international buyers seek this high-quality product. In 2013 alone, India exported Basmati rice, with a substantial portion attributed to Haryana. Buyers from Gulf and European countries, known for their stringent quality standards, significantly contribute to this demand. Despite the rising demand, Haryana's Basmati rice exporters face numerous challenges. According to the President of the Haryana Rice Millers and Dealers Association, the government needs to implement favourable policies. Key recommendations include:The government should provide tax rebates and avoid imposing new taxes to support exporters. Lowering the MEP is crucial to competing with Pakistani rice exporters. The price war has adversely affected performance in recent years, and addressing this issue is vital for enhancing competitiveness.

The Milling Industry in Haryana

Haryana's rice milling industry is extensive, comprising 1,790 rice mills. The distribution across districts is as follows:

• Karnal: 350 mills
• Kurukshetra: 270 mills
• Kaithal: 250 mills
• Yamunanagar: 200 mills
• Ambala and Fatehabad: 180 mills each
• Sirsa: 100 mills
• Palwal: 70 mills
• Panipat: 50 mills
• Jind: 40 mills
• Sonepat: 30 mills
• Hisar and Panchkula: 25 mills each
• Rohtak: 15 mills

Many of these mills face financial difficulties, with some even shutting down. Exporters and millers call for relief measures, including reducing export duties and revising the minimum export price to enhance profitability and sustain the industry.

Government Policies and Their Impact

The current government policies have created significant hurdles for rice millers. Jwail Singh, Chairman of the Haryana Rice Millers Association, highlights that unfavourable policies are causing losses. Millers receive payments for only 62 kg of rice per 100 kg of paddy despite obtaining 67 kg after milling. This discrepancy leads to substantial financial losses. Milling rates have not been updated for 25 years, exacerbating the financial strain on millers. Intense competition among millers further pressures their margins.To address these challenges, the government must intervene with supportive measures, such as updating milling rates to reflect current market conditions. This alleviates the administrative burden on millers, particularly during physical stock verification. Lastly, it must provide financial incentives and support to struggling mills to prevent closures.

Haryana's Basmati rice is a globally recognized product with significant export potential. However, to fully capitalise on this potential, the government must adopt favourable policies and provide the necessary support to exporters and millers. By addressing the current challenges, Haryana can maintain and even expand its dominant position in the global Basmati rice market, ensuring reasonable profits for growers and sustainability for millers.