China revoked the export registrations of three more Indian rice exporters on 17 September, bringing to ten the number of Indian firms barred from the Chinese market over allegations that their rice contains genetically modified material, Global Agriculture reported. Indian authorities and exporters dispute the claim.

The newly affected companies are Sarla Foods of Kakinada and Pattabhi Agro Foods, both in Andhra Pradesh, and Om India Trading of New Delhi, according to reporting confirmed by an Indian financial daily. They join Shriram Food Industry of Nagpur, Spone Enterprises of Raipur, NM Foodimpex of Haryana and others whose licences were first suspended in April, as China's customs authority has widened its scrutiny of Indian rice through the year.

China says its tests detect GMOs. India's position is that it has no commercially approved GM food crop, Bt cotton being the only GM crop cleared for cultivation; its food-safety authority has tested rejected shipments and found no GMO presence, and exporters say the same batches have passed checks in other markets. That gap has fed suspicion in New Delhi that the rejections are trade strategy rather than food safety.

The dispute has widened in stages: more than 70 non-basmati consignments had been rejected by late May, the number of suspended exporters rose from three to seven by August and to ten this month. Exporter federations argue the testing is applied unevenly, since rice from Vietnam, Myanmar and Pakistan has not faced comparable scrutiny, and describe it as a non-tariff barrier; some observers suggest Beijing may be managing its own rice stocks, though that remains speculation.

The costs are heavy. Industry figures cited in Indian trade press put the cost of shipping a rejected consignment back from China at $2,500 to $4,500, against outbound freight of about $250. Since 9 June the Agricultural and Processed Food Products Export Development Authority has required mandatory GMO testing of every rice consignment bound for China, through government-approved mills and accredited laboratories; exporters had sought a grace period, and the tighter protocol has not slowed the revocations.

India is the world's largest rice exporter and China one of the larger destinations for its non-basmati grades, so a sustained disruption matters beyond the ten firms. Exporters are already redirecting volumes to African and Middle Eastern buyers, which could tighten supply and firm prices in those markets without resolving the dispute with Beijing.

Source: Global Agriculture