Chandigarh: In a significant move to give fillip to the Basmati cultivation and its export as a part of state’s ambitious crop diversification program, the Punjab Government has issued notification for waiving off the Rural Development Fee (RDF) and Market Fee on the Basmati variety of Paddy for the purpose of processing in the state.

Disclosing this here today a spokesperson of the Chief Minister’s Office said that the Punjab Chief Minister Mr. Parkash Singh Badal gave his nod by clearing the file to this effect here this morning. This notification would come into force from August 27, 2013 and step was likely to boost the Basmati cultivation by extending a benefit of nearly Rs 200 crore to its trade in the state.

The main objective of providing these exemptions by the state government to the Rice millers and Exporters under diversification plan was to make Basmati milling competitive so that farmers' Basmati produce was lifted by them at remunerative prices, as a result of which the state would be able to increase area under Basmati cultivation,  conserve its depleting underground water table besides motivating the farmers to shift from paddy cultivation to Basmati, which was a far less water intensive crop then paddy.        

This notification has been issued following a series of deliberations by the Punjab Rice Millers & Export Association with the Chief Minister.