India’s basmati growers object to hike in export registration fees
Basmati exporters in Haryana and Punjab have opposed Apeda’s hike in export contract registration fees from ₹30/tonne to ₹70/tonne. While the increase could raise over ₹31 crore in 2025-26, exporters argue the fund’s utilisation lacks transparency, citing unmet needs like flood-affected farmers and historical suspensions of BEDF contributions.
Basmati exporters associations of Haryana, Punjab have objected to the hike in fees on registration of export contracts to ₹70/tonne from ₹30/tonne. If India maintains the same level of export in 2024-25, Apeda may collect over ₹31 crore towards the fund during 2025-26, an increase of 73 per cent from the year-ago, industry sources said.
Though the fee hike looks small, exporters said it is neither a tax nor a cess. Hence, it escapes scrutiny on its utilisation. They cite the current instance of floods in Punjab where Basmati farmers faced problems of sand accumulating on the field after water receded. They said the Basmati Export Development Foundation (BEDF) fund should have been utilised there.
Pointing out that the BEDF has a fund of about ₹25 crore as on March 31, 2025, exporters cited a decision of May 2005 by the BEDF Board wherein it was agreed to suspend contribution and only to resume when the corpus dropped below ₹10 crore. They also cited that it remained under suspension between 2005 and 2012, but levied at ₹50/tonne in 2013 and again brought down to ₹30/tonne in 2014.
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Source : The Hindu Business line
