China suspends import licences of 3 Indian rice export firms
China has cancelled import licenses of three Indian rice exporters over alleged GMO traces, escalating trade tensions. APEDA and the Indian government may seek resolution or reciprocal action, as the move threatens growing non-basmati rice exports and raises concerns over non-tariff barriers.
About a month after rejecting consignments from three Indian rice exporters due to traces of genetically modified organisms (GMOs), China has cancelled the import licenses of these companies, effective April 17, according to sources. The Indian Embassy in China communicated the matter to APEDA, India’s official agricultural export promotion body, which subsequently informed the affected companies.
The companies involved are NM FoodImpex Pvt. Ltd., Shriram Food Industry Ltd, and Sponge Enterprises Pvt Ltd. Industry sources said the government may take reciprocal steps if China continues with the suspension, as the ground on which the decision was taken was not legally valid.
The affected companies have reportedly approached the Commerce Minister Piyush Goyal as well as APEDA to take up the matter with the Chinese on a priority basis, the sources said.
Sources added that the effective date of the Chinese customs department’s new order was determined based on the timing of the initial consignment rejections
businessline had reported in March on incidents of rejection of Indian non-Basmati rice consignments by China, citing traces of GMO, even though the non-Basmati rice was tested by China Certification & Inspection Group (CCIC), a state-owned company. Besides, India is yet to permit the commercial cultivation of GM crops, other than cotton.
The affected companies had taken up the matter with India’s agri export promotion body APEDA as well as the Indian Council of Agricultural Research (ICAR).
Industry sources said that China grows GM rice, and in 2006, the European Union had flagged the issue of GM contamination in Chinese rice.
India had exported 180,805 tonnes worth $79.43 million of non-Basmati rice to China in 2024-25, and during April-January of the current fiscal, it was already higher at 186,013 tonnes, though in value terms it was lower at $ 65.59 million. As China had restrictions on Indian rice through non-tariff barriers, the export was very low till 2019-20, only 567 tonnes in 2019-20, but it surged to 331,571 tonnes in 2020-21 after it removed those curbs.
In 2025-26, China’s rice imports are estimated to rise to 3.1 mt from 2.3 mt in 2024-25, USDA data show. Its exports are also pegged to increase to 1.9 mt from 1.2 mt and production to 146.3 mt from 145.3 mt, the data show.
When China allowed Indian rice imports, initially its own team had recognised 16 mills in India, but later on it accepted India’s official recognition and recognised over 100 rice mills to export rice, trade sources said.
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Source : The Hindu Business line
