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India tightens food-security rules, Rice exporters brace for trade disruptions
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Wednesday, 03 December, 2025, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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In a significant shift aimed at safeguarding domestic food security, the Indian government has imposed stricter export regulations on rice a move that has already started creating ripples across global supply chains and among rice-exporting firms.
Under the revised rules, all exports of non-basmati rice must now be registered through the Agricultural and Processed Food Products Export Development Authority (APEDA), effectively adding an additional approval layer to shipments. New letters of credit (LCs) for rice consignments will require APEDA’s endorsement before exports can proceed, though existing contracts tied to previously opened LCs remain unaffected.
Industry insiders warn the added regulatory oversight could slow down shipments and raise compliance costs — especially for smaller exporters who may lack the resources to absorb delays or additional administrative burden.
For major rice-importing regions — including markets in Southeast Asia, the Middle East, and Africa — the tighter export framework is already prompting a search for alternative suppliers such as Vietnam, Thailand, and Myanmar, potentially reducing India’s market share.
The timing of the tightening comes amidst shifting export dynamics. After lifting a ban on broken-rice exports earlier this year and seeing a surge in exports reaching over 20 million tonnes in FY25, stakeholders had geared up for a bullish global supply push.
Trade analysts say the new policy underscores New Delhi’s priority to protect domestic stocks and stabilize internal food prices — even if it means creating friction with export markets. Exporters who adapt by diversifying markets, building compliance systems, and streamlining approval procedures may still remain competitive, but the transition period is expected to be challenging for many.
As global buyers scramble to reassess sourcing strategies and exporters rework supply-chain models, India’s decision to tighten food-security rules marks a new phase in the evolving interplay between domestic food policy and international trade.
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