China Halts Licences of 3 Indian Rice Exporters After GMO Allegations

China has suspended the import licences of 3 Indian Rice Exporters after rejecting their shipments, stating the presence of genetically modified organism (GMO) material, as per media reports.  

The firms affected are Shriram Food Industry Ltd (Nagpur), Spone Enterprises Pvt Ltd (Raipur) and NM Foodimpex Pvt Ltd (Haryana). The issue came up after consignments of broken rice sent last month were not cleared. 

Gap Between Certification and Findings 

Before shipment, the rice had been certified as non-GMO by a Chinese state-run agency with a testing facility in Visakhapatnam.  

Despite this, authorities in China later cited GMO content while turning back the cargo. The difference between pre-dispatch certification and testing at destination has led to uncertainty among exporters. 

First Suspension in Recent Period 

This is the first such suspension involving Indian rice exporters in recent years. India is the largest exporter of rice globally, and trade participants say restrictions of this nature could affect shipments, especially in categories such as broken rice where China has been a buyer. 

Inspection by APEDA 

Chinese authorities have asked the Agriculture and Processed Food Products Export Development Authority (APEDA) to inspect the facilities of the 3 companies.  

The licences are to remain suspended until the inspection is completed, and findings are submitted. The review process is likely to take time. 

Questions on Origin of Issue 

Exporters have indicated that rice mills process paddy and are not involved in seed development. They have suggested that any verification may need to extend to seed suppliers or growers.  

In India, there is no approval for commercial cultivation of genetically modified paddy. Bt cotton remains the only genetically modified crop allowed. 

Trade Terms Under Focus 

Traders have pointed out that China requires Indian rice shipments to meet non-GMO conditions. 

Similar requirements are not applied to imports from Pakistan, according to market participants. The difference has been noted within the trade during the current review. 

Read More: India–US Trade Talks Begin Today in Washington with Tariff Changes in Focus! 

Conclusion 

The suspension is expected to hold back exports from the 3 companies until inspections are completed, affecting shipments in the near term. 

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