There have been claims of discrepancies in the shipments after certified organic rice exports from India over the initial four months of the 2024–25 fiscal year surpassed the entire exports in the 2023–24 fiscal year. According to trade sources, increasing shipments suggest that the prohibition on white (raw) and broken rice is being broken, in addition to the 20% export duty that is not paid on parboiled rice leaving the nation. According to a trading source who wished to remain anonymous, “some in the trade have taken the organic route to hoodwink authorities.”

Looking to Rice Exporter? According to sources, exports of organic rice for the first four months of the current fiscal year were 1,46,585 tonnes, while for the full 2023–2034 fiscal year, they were 1,07,727 tonnes. Of this, about 8,000 tonnes were broken rice, 1,27,120 tonnes were white rice, and the remaining 1,27,120 tonnes were parboiled rice.

Non-traditional Nations

The majority of the shipments have gone to nations that do not import organic rice from India, including Kenya (11,801 tonnes), Angola (22,100 tonnes), Mozambique (16,457 tonnes), and Vietnam (22,166 tonnes).

During the period, the United States and the Netherlands have been India's top buyers of organic rice, with 13,626 and 16,457 tonnes purchased, respectively. Everything about it is suspect. It is not customary for Vietnam, Madagascar, Kenya, Mozambique, or other African nations to import organic rice, nor does Malaysia. Such large imports of Sona masoori and organic rice have never been made by African countries. Furthermore, another trading source stated that African countries cannot afford the higher price for organic rice.

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"Since October 2023, the price of exported organic rice has continuously decreased; this decline corresponds with the July export ban on white rice." The price dropped from $940/tonne in September 2023 to $529/tonne in June 2024. However, there was an increase in July," the initial source stated. According to a dealer headquartered in Delhi, the countries offering the lowest prices for non-organic white rice include Pakistan and Myanmar, at roughly $450 per tonne. Rice that is organic is more expensive. The second source questioned, "How can they be sold at prices less than $500 a tonne?”

Soars after Curbs

Exports of organic rice have increased dramatically since the Center placed restrictions on rice shipments. This adds to the assumption that dishonest exporters have turned to this tactic," the first source stated, noting that exports of organic rice had increased by 20% prior to the restrictions on the shipments of the cereal. In 2022–2023 and 2023–2024, the export volume increased by 71%. Based on the present export pattern, trading sources estimated that organic rice shipments could increase by 308 percent this fiscal year.

Against Farmers’ Interest

They noted that there is no prospect of an abrupt increase in the output of organic rice, especially after 2022 when the nation experienced unseasonal rainfall and protracted dry spells. "There are areas where internal control mechanisms in organic are uncertain. Therefore, a dramatic increase in the production of organic rice is ruled out. The source questioned, "Have documents accounted for farmers receiving higher compensation?"  

Conclusion

Concerns about possible abuse of export laws are being raised by the sharp increase in shipments of organic rice. Falling prices and a surge in shipments to non-traditional countries raise the possibility that some exporters are eluding tariffs and prohibitions on other rice kinds. This puts the credibility of India's rice exports at jeopardy, calls into doubt the validity of the organic rice, and endangers the integrity of the market. 

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