The sharp decline in basmati rice prices is a significant concern for farmers this year. Last year, the price of basmati rice ranged between ₹3000 to ₹4000 per quintal, but this year it has dropped to between ₹1700 to ₹2500 per quintal. The key reasons for this drop are: Bumper Production: Due to the high prices of basmati rice last year, there has been a bumper crop of basmati in Western Uttar Pradesh this year. Increased supply has led to a fall in prices as the market is flooded with rice. International Market Challenges: Issues in the international market are also affecting basmati rice prices. India�s main competitor, Pakistan, sells basmati rice at lower prices than India. This pricing disparity is impacting exports and pushing down prices in the domestic market. Early Sowing: Farmers in Uttar Pradesh planted basmati rice well ahead of the usual season, resulting in an early harvest. This has increased the moisture content in the rice and affected its quality. Early harvesting has led to an oversupply in the market, further driving down prices. Regulatory Differences: Haryana and Punjab have strict regulations to conserve groundwater, restricting rice planting to certain periods. Uttar Pradesh does not have such stringent rules, allowing farmers there to plant rice earlier. This earlier planting contributes to an oversupply in the market, affecting prices. Export Policies: The Indian government has set a minimum export price of $950 per ton for basmati rice. However, Pakistani basmati rice is sold at lower prices, which puts Indian exporters at a disadvantage. Some exporters are using this situation to negotiate lower prices with Indian farmers, further depressing local prices.