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The government plans to set up one Basmati DNA testing facility each in Karnal (Haryana) and Amritsar (Punjab)
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The government is considering making registration of export contracts mandatory with its agri-export promotion body APEDA for non-Basmati rice before shipments are allowed by the Customs Department. This is on the lines of the current system in place for Basmati rice. The government may charge a fee of ₹10-20/tonne for the registration. This will be used for promotion of Indian rice abroad.
There is also a plan to raise the registration fee up to ₹50/tonne from the current ₹30/tonne for Basmati rice, sources said, adding the step will help the government set up additional testing facilities and seed processing centres for the aromatic rice.
“Currently, there is one testing and seed processing centre for Basmati rice at Modipuram in western Uttar Pradesh. By raising the fund for registration of contracts, which is a pre-condition for exporting Basmati rice, it will help meet the expenditure to set up another seed processing centre in Pilbhit district of UP,” a source said, adding the State government has agreed to provide land for it.
DNA testing facility
Besides, the government plans to set up one Basmati DNA testing facility each in Karnal (Haryana) and Amritsar (Punjab), sources said.
Last week, before his departure to the US, Commerce Minister Piyush Goyal held discussions with rice exporters on the plans, sources said. He suggested the fees for Basmati registration of contract should be hiked to ₹100/tonne. However, as there were some objections from a few leading Basmati exporters, the government may finally settle for about ₹50/tonne, sources said.
The Minister also agreed to induct one representative each from the Basmati and non-Basmati exporters community in the Board of APEDA, after some of the participants raised questions over utilisation of the fund, managed by the agency.
Since there is no provision for registration of contracts for non-Basmati rice, the Commerce Ministry will issue the notification for it after approval of the minister, the sources said.
The Minister also agreed to the industry’s demand to allow exporters of non-Basmati rice to avail the benefits of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme after there was some reclassification of HS codes under different sub-heads for speciality GI (geographical indication) rice varieties.
The government is set to extend the popular RoDTEP scheme beyond September 30, 2025, when it is scheduled to lapse, businessline reported recently.
“The introduction of RCAC (Registration cum Allocation Certificate) and fee in non-Basmati rice may segregate common rice and speciality rice in line with recently created harmonised system code. This will enable data insights to Commerce Ministry and APEDA,” said S Chandrasekaran, MD of Svastha Ecoharvest and a foreign trade policy expert.
As the recently-concluded EU and UK SPS zone creation and agreement will have implications on rice and other food products, the RCAC for non-Basmati rice may help exporters reduce rejections since APEDA may demand the copy of EIA (export inspection agency) certificate to EU/UK, where it is a pre-condition, said Chandrasekaran.
Published on May 20, 2025
This article first appeared on The Hindu Business Line
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