During the past decade there has been a substantial increase in export of Basmati Rice from India. Punjab is one of the major basmati rice growing areas and in view of the potential of increasing it’s share further in export of basmati rice through adoption of improved practices and use of better seeds along with the aggressive market promotion, the Steering Committee approved setting up of Agri Export Zone for Basmati Rice in Punjab. This zone will cover the districts of Gurdaspur, Amritsar, Kapurthala, Jalandhar, Hosiarpur and Nawanshahar. Setting of this zone entails an investment of around Rs. 23.30 crores out of which Rs. 11.85 crores will flow from various Central Government Agencies and Rs. 1,85 crores from State Government Agencies. Private sector is likely to invest around Rs. 9.60 crores. It is expected that during the next 5 years there would be an export of around Rs. 2340 crores of Basmati Rice from this zone. More than 3000 farmers are likely to get benefited as a consequence of setting up of this zone. This zone will entail setting up of laboratory for leaf, water, tissue analysis, modernisation of nurseries, demonstration of crop husbandry practices/agronomical practices and training and extension services.