Indian exporters say the rejected consignments were found not to have any genetic material when re-exported to other nations.

By Subramani Ra Mancombu

China has revoked the registrations of 3 more Indian rice exporters on the alleged presence of genetically modified organisms. But Indian exporters say Beijing is indulging in a sort of trade war, erecting non-tariff barriers. 

Trade sources said Kakinada-based Sarala Foods and Pattabhi Agro Foods in Andhra Pradesh and New Delhi-based Om India Trading Ltd are the affected exporters, which is actually a ban. This takes the total number of exporters whose license has been revoked to 10.

However, Mukesh Jain, President of The Rice Exporters Association, Chhattisgarh, told businessline that the Chinese rejection of Indian rice shipments was suspicious and the suspicion was that Beijing was erecting a non-tariff barrier. 

‘Didn’t conform to specs’

“The rejected consignments were brought back to India and tested by the Food Safety and Standards Authority of India (FSSAI). No presence of GMO was found in the consignments. We re-exported the rice to other countries, where too quality inspections did not find anything wrong,” he said.

BV Krishna Rao, President of The Rice Exporters Federation and Managing Director of Pattabhi Agro Foods, said the General Administrations of Customs of the People’s Republic of China (GACC) informed that the rice shipments sent to Beijing “did not conform to specifications”.

“Our Chinese buyer said his authorities found the presence of genetically modified organisms (GMOs) in our rice shipment. All shipments are broken rice,” he said.

Jain and Rao said pre-shipment inspections by GACC’s Indian arm did not show any presence of GMOs and only on landing did the Chinese authorities report the presence of GMOs.

According to former US Department of Agriculture (USDA) official Fred Gales, China is causing “consternation and puzzlement” by detecting and rejecting genetically modified material in food shipments from trading partners who claim that they don’t grow GM crops.  

He said Chinese authorities rejected 146 shipments for containing GM material in the first half of 2026. “More interesting is that Chinese inspectors have found GMOs in shipments of rapeseed oil, rice, flour, and soybean foods,” he said, adding that these include Russia, Belarus, Kazakhstan and Japan, which do not grow GM crops.

“We don’t find any point in exporting to China. Trade has come to a total halt. While it costs $250 to ship a rice container, to get back the rejected shipment, we have to pay $2,500,” said Rao.

Jain said the cost to get back the rejected consignment is as high as $4,000-4,500. “It looks like China is trying to help Pakistan gain because our volumes have increased. Now, exporters from Islamabad gain in volume and price too,” he said. 

Questionable moves

Chinese now pay a higher price for rice from other destinations, particularly Pakistan. Jain said various rice associations raised the issue with Commerce Secretary Rajesh Agrawal, who assured to discuss this with foreign trade ministers at last week’s BRICS meet. Queries sent to officials were unanswered until this report was published.

Earlier this year, China banned seven exporters based in Karnataka, Andhra Pradesh and Chhattisgarh.  Indian authorities see the Chinese intentions malafide and say this is because this year’s requirement of Beijing has been fulfilled. 

Officials, traders, exporters and analysts have questioned the Chinese move as its Indian arm cleared the pre-shipment consignments. India does not grow any GM crop at all, let alone GM paddy.

Until the end of May this year, China rejected at least 70 Indian non-basmati rice consignments, alleging they contained GMOs. China’s rejections and revocations of exporters’ licences are despite the Indian government’s communication to Beijing specifically that no GM crop is grown in the country. 

Competing with ageing Chinese rice

Data from the Agricultural and Processed Food Products Export Development Authority show that India exported 2.07 lakh tonnes of non-basmati in 2025, while shipments more than doubled during January-June this year to 4.92 lakh tonnes.

Gales said China’s rejections of imports of rice from India coincide with its attempt to sell off old rice from its reserves (which began in March). All but one of the Indian shipments rejected were broken rice, a cheap product that directly competes with ageing rice from China’s reserves.  China has not rejected rice from other suppliers of broken rice: Vietnam, Myanmar, and Pakistan, though.

Published Date: September 17, 2026