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Mint
24-06-2025
- Business
- Mint
After Punjab, Haryana may ban harmful pesticides, help Indian Basmati rice clear strict overseas standards
New Delhi: Haryana is gearing up to ban hazardous pesticides in Basmati rice in an attempt to make it easier to export the grain to developed and other markets with high food safety standards. Neighbouring Punjab—like Haryana a major agricultural state—has already enforced such a ban in order to meet what is known as the International Maximum Residue Limits (MRLs). These two states account for nearly 70%-75% of India's basmati exports of 6 mllion tonnes (in FY25). MRL is the highest concentration of a pesticide or veterinary drug residue legally allowed in food or animal feed, established to ensure food safety based on Good Agricultural Practices (GAP). The Union government has also imposed a ban on four highly hazardous pesticides. Basmati rice exports from India have been facing repeated rejection by the European Union, US, Japan, Oman, Kuwait, Lebanon, and UAE, owing to pesticide residues exceeding the prescribed MRLs of the importing country,according to Haryana Rice Exporters Association. This has led to a substantial loss of export business, reputational damage, and a decline in India's market share, much of which has shifted to competitors like Pakistan. The Haryana move seeks to replicate initiatives taken in Punjab. "We have banned the sale, distribution, and use of 11 insecticides on basmati rice crops for a 60-day period, starting 1 August to 30 September, to address concerns about pesticide residues exceeding permissible limits,' said a senior official in Punjab agriculture Department. The banned insecticides are Acephate, Buprofezin, Chlorpyriphos, Propiconazole, Thiamethoxam, Profenofos, Carbendazim, Tricyclazole, Tebuconazole, Carbofuran and Imidacloprid. The Punjab Rice Millers and Exporters Association reported that tests conducted by them previously had shown these pesticides at levels that were much above the MRL values for basmati. "So, our association requested for a ban on these agrochemicals to save the heritage basmati produce of Punjab, and to ensure hassle free export of basmati rice to other countries" said an exporter on the condition of anonymity. Taking a cue from Punjab, Haryana basmati exporters also approached the state government seeking a ban. "We have sought immediate intervention of the state government on prohibition on sale, stock, distribution and use of certain pesticides on basmati crop in Haryana to safeguard the integrity and global reputation of Basmati rice cultivated in the state," said Sushil Jain, President, Haryana Rice Exporters Association. According to exporters, despite continued efforts by exporters associations—through farmer awareness programmes and advisory dissemination—certain pesticides remained widely available and in use, undermining all efforts. "In light of the upcoming paddy cultivation season and the urgent need to protect the heritage, and export viability of basmati rice, we have appealed the state government to impose a prohibition for a period of at least 90 days (during the paddy crop season) 15 July on the sale, stock, distribution and use of the certain pesticides,' Jain added. The pesticides for which a ban has been sought are the same as in Punjab. A senior official in Department of Agriculture and Farmers Welfare ministry in Haryana said the final decision related to a ban will be taken in consultation with stakeholders and other relevant concerned officials. Exporters suggested that the prohibition should be strictly implemented at the field level, and that a monitoring and complaint mechanism should be established to prevent the illegal sale and use of these pesticides. "We believe that implementing a pesticide prohibition in Haryana, in line with this vision, will go a long way in promoting pesticide-compliant basmati rice and reviving India's lost standing in some foreign markets," said Vijay Setia, advisor, Haryana Rice Exporters Association.
Hindustan Times
24-06-2025
- Business
- Hindustan Times
Israel-Iran conflict: Miller's worries mount as basmati shipments worth ₹1.5K-cr stuck, payments delayed
As the Israel-Iran conflict enters its second week with no resolution in sight, Indian basmati rice exporters are bearing the brunt. Shipments of nearly 1 lakh tonnes of rice—worth ₹ 1,500 crore—meant for Iran are stranded at ports, and exporters say payments worth twice that amount are currently pending. Currently, paddy is cultivated on approximately 34 lakh acres in Haryana, yielding 68 lakh metric tonnes (MT), including 20 lakh MT of basmati rice. (HT File) Exporters warn that if the situation persists, the impact will not be limited to the industry alone. It could soon trickle down to farmers, especially in the northern states where paddy transplantation is currently underway as part of the ongoing Kharif season. India's top basmati-producing states include Haryana, Punjab, Uttar Pradesh, Madhya Pradesh, Rajasthan and Delhi. Of these, Haryana contributes the largest share—about 35%—according to Haryana Rice Exporters Association president Sushil Jain. Key basmati-producing districts in the state include Karnal, Kurukshetra, Kaithal, Panipat and Sonepat; home to nearly 100 rice mills involved in exports. Currently, paddy is cultivated on approximately 34 lakh acres in Haryana, yielding 68 lakh metric tonnes (MT), including 20 lakh MT of basmati rice. Out of India's 60 lakh MT annual basmati exports, around 10 lakh MT is shipped to Iran, which stands as the second-largest market for Indian basmati after Saudi Arabia. In fact, India exported over 6 million tonnes of basmati in 2024-25—the highest ever—and the industry had been hopeful of setting a new record this year as well. However, the conflict has brought that momentum to a standstill. All India Rice Exporters Association president Satish Goyal said shipments bound for Iran are stuck at Indian ports—mainly Kandla and Mundra in Gujarat—due to a lack of available vessels and insurance. Standard shipping insurance typically does not cover war-related disruptions, making it impossible for exporters to move consignments. Jain echoed the concern and added that Iran's threat to close the Strait of Hormuz could severely impact shipments to other Gulf countries such as Saudi Arabia and Bahrain. He further said the association has been in regular contact with the Agricultural and Processed Food Products Export Development Authority (APEDA), the central government body overseeing agri exports. APEDA has advised exporters to 'wait and watch' for now. A meeting with Union commerce and industry minister Piyush Goyal is scheduled for June 30 to address the crisis and push for a resolution on the stuck shipments and delayed payments. 'The delay and uncertainty are already hurting exporters financially. Domestic prices are also falling. For instance, the rate for the 1718 variety of basmati, which was ₹ 67–68 per kg in early June, has now dipped to ₹ 63,' Jain said.
The Hindu
23-06-2025
- Business
- The Hindu
Rice exporters stare at major disruptions, payment delays amid escalating Iran-Israel conflict
With the escalation of Iran-Israel conflict, rice exporters in Haryana -- which accounts for 30% of the country's basmati rice shipments to Iran -- are struggling with major disruptions in ship movements and payment delays. While Karnal is the main hub of basmati exports, Kaithal and Sonipat too contribute to the foreign demand. "The ongoing Iran-Israel conflict has impacted the trade," said Sushil Jain, Rice Exporters Association's state unit president. "Nearly 10 lakh metric tonnes of Basmati rice is exported from the country to Iran, of which Haryana's share is about 30-35%," he said, adding that shipments of about 1 lakh metric tonnes of basmati rice for Iran are stuck at ports. Besides, the payments amounting to ₹1,500 crore to ₹2,000 crore for nearly 2 lakh MT of the rice exported to Iran by Indian exporters has also got stuck due to the conflict, Jain said. The escalation in the conflict is going to impact the Indian market which is already witnessing some fall in the prices, he said. "Another issue which the exporters are facing is the lack of insurance cover for the vessels during war which increases the risk for us," he added. Iran is India's second-largest basmati rice market after Saudi Arabia. India exported around 1 million tonnes of the aromatic grain to Iran during the 2024-25 fiscal year. India exported approximately 6 million tonnes of basmati rice during 2024-25, with demand primarily driven by the Middle East and West Asian markets. Other major buyers include Iraq, the United Arab Emirates and the United States. The Israel-Iran conflict has escalated significantly in recent weeks, with both sides exchanging heavy strikes and the U.S. becoming directly involved in the hostilities. The shipping disruption adds to challenges facing Indian rice exporters, who have previously dealt with payment delays and currency issues in the Iranian market due to international sanctions. On Sunday (June 22, 2025), Prime Minister Narendra Modi conveyed to Iranian President Masoud Pezeshkian India's "deep concern" over Iran's conflict with Israel and called for immediate de-escalation of the situation through "dialogue and diplomacy". The phone conversation initiated by Pezeshkian came hours after the US bombed three major nuclear sites -- Fordow, Natanz and Isfahan -- in Iran.
