India moves to tighten oversight of non-basmati rice exports with registration fee

  • Modest registration fee introduced to boost brand visibility, data tracking
  • Exporters back move as a step towards transparency, dispute resolution

India has decided to impose a nominal fee of INR 8/tonne (t) on the registration of non-basmati rice export contracts, marking a significant policy shift aimed at building the global identity of Indian rice. The move follows the government’s decision earlier this month to make registration of such contracts mandatory. Officials say the objective is to ensure that Indian non-basmati varieties retain their origin branding abroad, where they are often repackaged and sold by importers without clear identification as Indian produce.

The fee will contribute to a newly established Rice Trade Development Fund managed by the Agricultural and Processed Food Products Export Development Authority (APEDA), which will use the funds to promote Indian rice exports and enhance their market presence. This aligns the non-basmati sector more closely with the basmati trade, where registration has long been a requirement.

Industry backs move despite contrasting concerns in basmati segment

The decision comes just weeks after APEDA increased the registration fee for basmati rice exports to INR 70/t from INR 30/t, a move that triggered resistance from some Haryana-based exporters. In contrast, the non-basmati sector has welcomed the new measure. All three major non-basmati exporters’ associations endorsed the plan during a stakeholder consultation on 24 September, according to Mukesh Jain, president of the Rice Exporters Association, Chhattisgarh (TREA).

Industry leaders view the registration mechanism as a step towards structured data collection and improved traceability in global trade. “APEDA will now have visibility on the movement of cargo and destination markets, which will support better planning and market intelligence,” said BV Krishna Rao, president of TREA.

Transparency, dispute resolution, market planning

The introduction of a nominal registration charge is also expected to help resolve contractual disputes and improve policy formulation. Prem Garg, president of Indian Rice Exporters Federation (IREF) and chairman of Shri Lal Mahal Group, said the mechanism will not only create a comprehensive database of export destinations but also provide exporters with a reliable tool in case of trade disputes. “Such transparency will enhance the credibility of India’s rice trade and offer a strong foundation for future policy decisions,” Garg said.

Garg added that registration records could serve as evidence in cases of buyer defaults or supplier non-compliance, allowing exporters to approach IREF or APEDA for intervention. A recent incident involving 2,000 containers of non-basmati rice detained overseas was resolved through APEDA’s involvement, highlighting the potential of the new system to strengthen exporters’ positions.

Building stronger global presence

APEDA plans to conduct awareness seminars to familiarise exporters with the new system and ensure smooth compliance. Exporters will receive online registration certificates upon paying the fee, streamlining administrative procedures and enabling faster contract verification.

The introduction of the INR 8/t registration charge marks a strategic shift in India’s rice export policy. With industry support and a focus on traceability, branding, and dispute resolution, the initiative is expected to strengthen India’s position in the global rice trade and support the long-term development of the non-basmati segment.