Farmers in the state are in a quandary with the state government asking them to avoid growing high-yield paddy varieties such as PAU 201, the per hectare yield of which was reported at 100 quintals in certain parts of the state last year.
The government has issued advertisements in various newspapers directing them to desist from sowing PAU 201 and various hybrid varieties. There is a sort of a ban on the sale of seed of the high-yield varieties in the state. Hence, farmers have been forced to procure the seed from neighbouring Haryana.
Most hybrid varieties not only give a high yield but are of short duration and consume less water compared to non-hybrid varieties. Farmers say most hybrid varieties are sown in July and mature in 100-105 days whereas other varieties take about 130 days to mature and have to be sown in the second week of June.
Official sources said the farmers had been told not to sow the PAU 201 variety because the FCI, which has near monopoly on the rice market in the state, had refused to lift it from the mills during 2009-10 and 2010-11. Likewise, it was reluctant to procure rice of hybrid varieties.
Haryana has a better market mechanism compared to Punjab. In Haryana, traders also purchase hybrid and other varieties in large quantities for sale in the market.
Traders avoid the paddy market in Punjab because of the high taxes on the purchase of foodgrain. A trader has to pay about 14.5 per cent as tax, including the market fee and VAT, for every quintal of paddy purchased.
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