- Over 70 Indian non-basmati rice consignments rejected by Chinese authorities
- Exporters dispute claims as India does not commercially cultivate GM paddy
China has revoked the registration of seven Indian rice exporters, effectively barring them from shipping rice to the country. The General Administration of Customs of the People’s Republic of China (GACC) cited the alleged presence of genetically modified organisms (GMOs) in rice shipments as the reason for the action. The move follows months of trade friction, during which Chinese authorities rejected more than 70 consignments of Indian non-basmati rice over alleged GMO presence.
GMO claims disputed by Indian exporters
The action has created uncertainty among Indian exporters, as India does not commercially cultivate genetically modified (GM) paddy. This has led domestic authorities and exporters to dispute the GMO-related claims made against the consignments. Adding to the concerns, several rejected shipments had already received pre-shipment clearance from the China Certification and Inspection Group (CCIC), a Chinese state-appointed agency that conducts testing while goods are still in India. The difference between pre-shipment clearance and subsequent rejection in China has led trade circles to view the repeated rejections as a potential non-tariff trade barrier rather than a genuine food-safety issue.
Earlier China rejections
China had also rejected three consignments from India in March as well, in which three Indian companies, Shriram Food Industry in Nagpur, Spone Enterprises in Raipur, and NM Foodimpex in Haryana also had their Chinese import licences suspended. Amid uncertainty over China’s import requirements, exporters have reportedly held back around 200 containers of rice.
Limited immediate impact on broader market
The immediate financial impact on the broader market is limited, as the seven affected exporters are largely private, small-to-mid-sized firms. The bigger concern is the potential impact on India’s agricultural export reputation and trade relations with other markets.
India holds around 40% of the global rice export market and exported 21.56 million tonnes (mnt) of rice in the 2025-26 season. If China continues to use GMO-related allegations to restrict Indian rice imports, it could create a negative narrative and potentially invite stricter scrutiny from regulators in other major markets.
Outlook
The key concern for the Indian rice industry is whether the issue is resolved through bilateral discussions. The Rice Exporters Association has requested APEDA to intervene and engage with GACC on the matter. A resolution could help reduce uncertainty for exporters, while continued restrictions may create challenges around market access and export operations.
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