Seeking the government’s intervention for the revocation of the temporary suspension of the three Indian companies by China on a false allegation, a rice exporters’ body of Chhattisgarh has requested Commerce Minister Piyush Goyal to intervene and safeguard their interests.
“In view of the seriousness of the situation, the Rice Exporters Association of Chhattisgarh (TREACG) has made an urgent request to Commerce Minister Piyush Goyal to intervene and safeguard the interests of Indian rice exporters,” the exporters’ body said in a statement referring to the rejection of non-Basmati rice consignments by China.
GMO concerns
Expressing serious concern over the ongoing issue of alleged GMO detection in Indian rice consignments exported to China, it has been claimed that the move by the Chinese authorities has caused significant financial losses to Indian exporters.
Quoting a communication from the Indian Council of Agricultural Research (ICAR) sent to the government’s agri-export promotion body APEDA, TREACG said that no genetically modified (GM) rice has been approved for commercial cultivation in India. “No GMO-related research is being undertaken in any rice programme under ICAR. All rice varieties cultivated and exported from India are non-GMO,” it said, adding this reaffirms India’s position as a trusted global supplier of non-GM rice.
However, despite this clarity, several consignments have faced issues at Chinese ports, it said, pointing to detention and rejection of shipments, heavy demurrage, and return freight costs. Due to “Back to Town” or diversion of cargo to alternative markets, there is increased contractual risk and trade uncertainty, TREACG said.
On April 16, APEDA informed three Indian rice exporting companies that they have been temporarily suspended by GACC (China’s customs department) in connection with the GMO issue, said TREACG.
Specific pleas
The intervention sought by the exporters from the minister included diplomatic engagement with GACC to resolve the GMO testing issue, issuance of a clear trade advisory, recognition of load port non-GMO certification as final and binding, temporary suspension of contract registration for China and relief for affected exporters.
businessline reported on April 17 that China cancelled import licenses of three Indian companies, a month after rejecting their rice consignments, claiming those had traces of genetically modified organisms (GMO).