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Informist, Monday, Nov. 3, 2025

 

--APEDA chair: Non-basmati export development fund set up to boost rice trade
--CONTEXT: APEDA Chairman Abhishek Dev's comments in interview with Informist
--APEDA chair: Non-basmati export promotion fund to boost branding, mkt share
--APEDA chair: Mandated rice export contract registration for real-time data
--APEDA chair: Taking INR 8/tn fee from exporters for non-basmati export fund
--APEDA chair: Taking INR 70/tn fee from exporters for basmati export fund
--APEDA chair: Expect non-basmati rice development fund to be INR 120 mln
--APEDA chair: See rice development fund at INR 350 mln-INR 400 mln
--APEDA chair: Used rice export fund for delegations to Japan, Philippines
--APEDA chair: India must shift from bulk to branded rice exports
--APEDA chair: Training farmers to reduce pesticide use in paddy cultivation
--APEDA chair: India targeting high-value EU, UK mkts with branded rice
--APEDA chair: Govt not involved in appointing rice exporters federation head
--APEDA chair: Govt engages stakeholders, background checks not always done

 

By Afra Abubacker and Pallavi Singhal

 

NEW DELHI – As rice stocks within the country swell, India is counting on a new non-basmati rice export development fund to tap global markets and reduce its mounting rice surplus, Agricultural and Processed Food Products Export Development Authority Chairman Abhishek Dev told Informist. The fund, raised through mandatory export registration, will help improve the accuracy of non-basmati trade data and finance overseas promotion of Indian rice, he said.

 

"This fund also helps us gather detailed export statistics such as per-unit prices and destination-wise data, which aids export planning," Dev said in an interview with Informist.

 

In September, the government mandated non-basmati rice export contracts be registered with APEDA and introduced a nominal processing fee of INR 8 per tonne to create a non-basmati rice export development fund with an annual corpus of INR 110-120 million. According to Dev, about 70% of this will be utilised for overseas promotion, branding, and trade events.

 

"Unlike conventional wisdom, this move was requested by all the major rice export associations. They were quite happy with the export promotion measures in basmati and they wanted similar measures to be done for (the promotion of) non-basmati rice as well", he said. "If there can be a separate fund on the lines of basmati, which can be used for focused export promotion for the non-basmati, all of them were willing to contribute," he added.

 

Combined, the basmati and non-basmati export development funds collect over INR 350 million–INR 400 million annually, he added. Since 2008, the government has mandated basmati export contracts to be registered with APEDA. It has revised the processing fee from INR 25 per tonne over the years to INR 70 per tonne.

 

The fund is administered by APEDA, but managed by a multi-stakeholder committee comprising the agriculture ministry, the commerce department, three major rice export associations, and others, he said.

 

Amid soft global rice prices, India aims to climb up the value chain through branded, GI (Geographical Indication)-certified rice, and value-added products that command higher realisations. He also highlighted India's role in the global market by elaborating bulk volume it handles. During Apr-Sep, India's rice, including basmati and non-basmati exports, rose 10% on year to 10.2 million tonnes valued at $5.6 billion. In FY25, India shipped 20.1 million tonnes worth nearly $12.5 billion.

 

Addressing media reports criticising the government for facilitating the Indian Rice Exporters Federation, whose leadership faces charges of financial fraud, the APEDA chairman said the matter was internal to the association. "The government, in any case, is not involved in the selection of president and members (of the federation)," he said, adding that the government continues to engage with rice exporters and support the broader ecosystem.

 

He clarified that the government does not typically conduct background checks on private associations it facilitates or interacts with. "We normally don't ask for their case history as a stakeholder or as a key stakeholder. They all come and interact with us. We normally don't do all these background checks," he said. These are "private matters and we don't normally get into it."

 

Below are the edited excerpts from the interview:

 

Q: How do you see the current situation of surplus rice in the country? Domestic demand seems weak, and global prices are also subdued. Where do you see demand coming from, given that we already have large stocks from last year and a huge crop this year?

A: India already accounts for nearly 40% of global rice exports, yet there remains considerable untapped potential in both traditional and new markets. For example, in countries like the Philippines, Japan and Indonesia, our share is less than 1%, despite these being among the top 10 rice importers globally. So, there is a lot of demand potential there. The idea is to move up the value chain – from bulk exports to branded, packaged, and value-added products. (As of Oct. 1, rice stocks in the central pool were at a two-decade high for the month at 35.6 million tonnes, up 15% on year.)

 

We are also targeting high-value markets such as the European Union, the UK, and Latin America, while promoting our 17 GI (Geographical Indication) rice varieties, which offer distinct nutritional and health benefits, including low-glycemic-index rice suitable for diabetic consumers and zinc-rich varieties. You'll now find ready-to-cook biryani kits, cilantro rice kits popular in the US, and even Japanese-style rice-based snacks made by Indian exporters. Such innovations help utilise surplus rice and diversify our export portfolio.

 

Q: How competitive is Indian rice globally, especially with the government affecting prices through procurements at minimum support prices? How are basmati exports performing?

A: At the per-unit price level, Indian rice may sometimes be less competitive than Vietnamese rice or Thai rice. But global trade also depends on logistics, long-term buyer relationships, and supply consistency--and India enjoys a strong position there. Other countries often lack the exportable surplus India has. Despite pricing pressures, non-basmati exports rose over 30% in volume, while basmati exports rose 18% in quantity, but dipped 4% in value, largely due to price corrections in Saudi Arabia and Iran.

 

Q: Did India lose basmati market share to Pakistan after export curbs? How have export policies affected the Brand India?

A: We did not significantly lose market share to Pakistan. The recent dip in value is largely due to the removal of the minimum export price, which had earlier maintained a price floor. The focus now is on building Brand India, encouraging retail presence overseas, and exporting value-added and niche varieties that fetch higher realisations.

 

As an export promotion body, APEDA always favours free trade. But the government must also ensure price stability for domestic consumers. Earlier when stocks were tight, export restrictions and duties were necessary. But now, with sufficient stocks, restrictions have been lifted. We've even introduced separate HS codes for GI rice varieties so that such premium varieties remain unaffected by future export restrictions. (HS or Harmonised System code is a standardised numerical method for classifying traded products, used globally for customs purposes to identify goods, apply tariffs, and gather trade statistics.)

 

Q: Looking back, do you think the export ban was unnecessary and premature?

A: In hindsight, policies can always be debated. But based on the data available at that time, the decision was taken in the larger interest. Since then, exports have recovered strongly, and most markets have been regained. (In September 2022, India imposed curbs on shipments of non-basmati rice, levying a 20% export duty on various grades, with only basmati and parboiled rice exempted. In August 2023, India introduced a temporary minimum export price of $1,200 per tonne for basmati rice exports. While these curbs were lifted in September 2024, they are said to have had significant ripple effects. Industry complains that international buyers, at the time, scrambled for alternative sources, which has now led to lesser market access for India.)

 

Q: APEDA recently made it mandatory for non-basmati rice exporters to register their contracts and pay a processing fee. What prompted this move, and what are its objectives?

A: Interestingly, this initiative was requested by the rice export associations themselves. They wanted a system similar to what exists for basmati to fund focused export promotion for non-basmati rice as well. A nominal INR 8 per tonne fee has been introduced, which will generate INR 110 million–INR 120 million annually. About 70% of that fund will go toward overseas promotion and branding, including delegations, trade shows, and culinary zones.

 

We have already used this fund to set up culinary zones at exhibitions and send delegations abroad. We recently took exporters to the Philippines and Japan, where GI varieties from Manipur and Jammu & Kashmir were showcased. They received excellent feedback, and we expect the first-ever shipment of Manipur rice to Japan very soon. This fund also helps us gather detailed export statistics, such as per-unit prices and destination-wise data, which aids export planning.

 

Q. How are the basmati and non-basmati export promotion funds managed?                                                             

A. The fund is administered by APEDA but managed by a multi-stakeholder committee comprising APEDA, the Indian Council of Agricultural Research, the Agriculture Ministry, the Department of Commerce, two major rice-producing states, and the presidents of three rice export associations. The first meeting has already taken place, and based on it, the committee has already made delegations to Japan and the Philippines. The next meeting will plan our participation in the Gulf Food Zone.

 

Combined, the basmati and non-basmati funds collect over INR 350 million–INR 400 million annually. The non-basmati export fee is INR 8 per tonne for shipments worth INR 44,000 per tonne. This will collect INR 110 million-INR 120 million annually from non-basmati exports. The basmati export fee is INR 70 per tonne, nominal compared to shipments valued around INR 95,000 per tonne.

 

Q: What's the latest update on the basmati GI dispute with Pakistan?

A: The dispute is ongoing. Such issues are common for products with shared geographical heritage. Pakistan, which earlier showed little interest, has now become active in filing and contesting claims, leading to parallel cases in the UK, Australia, New Zealand, Kenya, and elsewhere. For basmati, the basmati Rice Fund supports both export promotion and GI protection. India has sought GI or certification-mark protection in over 30 jurisdictions and secured it in 21 countries. We also operate a DNA testing lab in Modipuram, Meerut, which will soon become Uttar Pradesh's first organic-certified lab for rice and organic products.

 

Q: The EU and other countries have raised concerns about pesticide residues in Indian rice. What is APEDA doing to address the issue? Is there a timeline that APEDA or the government is working with to reduce pesticide use to approved levels?

A: We're addressing this through our Basmati Export Development Foundation, which is undertaking large-scale farmer training and capacity building in GI rice-growing areas. Often, farmers lack awareness about the correct type, dosage, or timing of pesticide application, and that leads to problems. Modern agriculture demands precision and scientific practice, not just traditional methods.

 

We have targeted training 100,000 farmers this financial year and have already reached over 14,000 so far. We're supplementing these sessions with YouTube videos, podcasts, and digital tutorials in local languages to reach farmers beyond the physical interaction target of 100,000. We are also working closely with state governments, which have the extension networks on the ground.

 

Q: There have been media reports about the Indian Rice Exporters Federation leadership being charged with financial crimes. Has it affected rice exporters' morale and the government's engagement at the recent global rice conference? Should the federation perhaps appoint someone else at its helm?

A: The affairs of the Indian Rice Exporters Federation are internal matters for the association to decide. The government is not involved in the selection or functioning of its leadership. Despite that, this conference has gone well. Alongside the federation, other rice exporters' associations from Chhattisgarh and Kakinada are also participating actively. All stakeholders are united in working to enhance rice exports and strengthen the overall rice ecosystem.

 

Q: Did the media reports surprise the government? Was there any lapse in due diligence in assessing the federation's background before partnering with it for the event?        

A: When we engage with stakeholders, we don't usually ask for their case history or background details. These are private matters, and we don't intervene in them.  End

 

US$1 = INR 88.77

 

Edited by Deepshikha Bhardwaj

 

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