INTERVIEW: China import suspension drives India rice export concerns: TREACG

India's rice exports face risks from China's alleged genetically modified rice-related license suspensions and domestic logistics pressures, prompting a push for policy resolution, market diversification and infrastructure support, alongside government measures to boost trade, Mukesh Jain, president of The Rice Exporters Association of Chhattisgarh, or TREACG, said in an exclusive interview with Platts, part of S&P Global Energy, on Aug. 25.

"The suspension of 7 Indian exporters' licenses by China looks like a trade conflict issue—India does not produce GM rice," he added. "If the issue is not addressed, other importing countries could use similar claims to disrupt Indian rice exports."

He said India's scientific position has already been clarified by the government and related research bodies.

Indian exporters rely on certification from international surveyors such as SGS, while APEDA officials have examined paddy samples from Chhattisgarh and found them to be non-GMO, he added.

Jain said China remains important for Indian exporters because the country usually has a production-consumption shortfall of around 2 million tons, which is met through imports from India, Pakistan and Vietnam.

Asked what policy action would help most, Jain said exporters have requested the Indian government to take up the issue directly with China and settle it scientifically through third-party laboratory testing. Rice that does not meet Chinese import norms is typically redirected to other destinations, including Africa, he added.

Despite the blacklist, commercial demand from China has not disappeared. Platts assessed 100% broken white rice at $314/mt FOB on Aug. 25, up $30/mt month over month, supported by demand from China and domestic ethanol requirements.

At the same time, exporters are trying to reduce dependency risks by diversifying markets.

"The Philippines is emerging as a promising destination, while Latin America also offers potential. India has exported rice to Latin American countries in the past with support from Exim Bank, as payment risk is often a concern in the region. Previous shipments have gone to countries such as Venezuela and Paraguay," he said.

Despite Brazil's geographical advantage, Jain said Indian rice remains price-competitive.

Beyond China and El Niño, shipping and storage issues pose concerns

Jain said the bigger challenge for Chhattisgarh and central India is the government procurement cycle and limited storage availability.

On domestic supply, Jain said there is no immediate paddy shortage. "If there were a shortage, exports would not be happening," he said.

He added that recent price movements are being driven more by procurement and paddy-rate changes than by an El Niño-related narrative.

FOB prices for parboiled 5% rice have moved both higher and lower during the year, depending on market conditions, he said.

To ease the storage squeeze, exporters are calling for better central stock management. "The solution is liquidation of old stock in the central pool to create space," Jain said. Without storage and movement relief, millers and MSMEs may remain out of the market, allowing larger players to exert stronger pricing influence, he warned.

On the upcoming Kharif crop, Jain said central India is expected to see full production, while parts of southern India may face some rainfall-related impact. Overall availability should remain supported by India's buffer stocks and the incoming crop, he said.

Shipping disruption and freight costs are also adding pressure.

Exporters have met India's shipping secretary and requested government engagement with shipping lines, he said.

Jain also called for priority handling of agricultural vessels and better port allocation to keep exports moving.

"At Kandla, seven of 13 berths were allotted to rice vessels on priority. Authorities have also indicated that Vizag port should prioritize agricultural commodity vessels to prevent export declines," he said.

If disruptions continue, Jain said rice availability in Africa could tighten due to reduced supplies, weather concerns and lower container movement. Some traders expect prices to rise further, possibly by around Rs 1/kg, he added.

The government is also working on measures to support rice exports. Jain said the industry is in talks with the Chhattisgarh government on logistics subsidies for a dry port.

"Funds have reportedly been sanctioned but are yet to be notified in the gazette. The state already provides a 2% mandi subsidy and has prepared a 2047 Export Vision Policy, expected to include incentives for agricultural exports," he said.

"Infrastructure improvements are also expected through the Bharatmala road project, potentially reducing road freight costs by nearly 30%. The India International Rice Summit, supported by the state government and the commerce ministry, is expected to be held in Raipur, with the date to be announced soon," he added.