A couple of subsidiaries of Indian-listed companies based in Europe and a few companies floated abroad by Indians are sourcing Basmati rice from Pakistan to Europe and other destinations, according to global data on exports and imports of agri-products accessed by businessline.
A few European firms, which export Basmati rice from India, are sourcing and having “strategic collaboration” with the neighbouring country. The Indian companies are listed on the National Stock Exchange and the Bombay Stock Exchange. The sourcing includes 14,300 tonnes of Basmati rice exported from Pakistan after May 2, 2025, when the Directorate-General of Foreign Trade (DGFT) barred Indian firms from “direct or indirect import or transit of all goods originating in or exported from Pakistan”. The ban followed Pakistan-supported terrorists killing 26 Indian tourists at Pahalgam in Kashmir on April 22.
There are two basic issues with these shipments from Pakistan to Europe and other countries, said trade sources, who do not wish to be identified in view of the sensitivity of the topic.
Two basic issues
Sources said the first issue is how these firms could source Basmati rice from Pakistan when India is claiming the fragrant rice variety to be exclusively its own. The second is, won’t such shipments affect India from getting the exclusive GI (Geographical Indication) tag in countries such as Europe?
One of the listed companies sourced about 125 tonnes of Basmati rice ( 2 shipments) from Pakistan’s Al Wahab rice mill between May 3 and June 4 and shipped it to the Netherlands after the DGFT ban. Also, two companies floated by Indians in Europe sourced about 9,000 tonnes of Basmati rice from Pakistan’s Sarawar, Fatima, Supreme and Rana rice mills for the UK market. The shipments took place between May 6 and June 29. Overall, the shipments by all these companies were valued at nearly $13.5 million after May 2.
‘No Indian firm involved’
An official of the Agricultural and Processed Food Export Development Authority (APEDA), which registers, promotes and regulates all Basmati exports, said no Indian firm was sourcing Basmati from Pakistan.
“Indian origin importers may be sourcing Pakistan Basmati and they have nothing to do with India,” the official said, adding that if Indian companies were found sourcing the long-grained rice from the neighbouring country, it would be black-listed.
Data accessed by businessline show that over the past 10 years, these companies have sourced over $2.5 billion of Basmati rice from Pakistan to Europe and other destinations.
“It is an ethical and moral issue, too, that these companies have ignored. Over the past seven years, these companies have helped Pakistan earn millions of dollars in foreign exchange from the global market,” said a New Delhi-based source.
More when MEP was imposed
The share of these companies in Pakistan’s Basmati exports is above 30 per cent annually. One of the two companies floated by the Indians is the largest importer of Basmati rice from Pakistan.
Sources said one of the subsidiaries of Indian listed companies imported 88,851 tonnes of Basmati rice, valued at ₹642 crore, between January 1, 2020, and June 30, 2025, from Pakistan. When the Indian government imposed minimum export prices (MEP) on Basmati in October 2023, its exports from Pakistan increased three-fold. (India imposed MEP to ensure non-Basmati rice was not exported as Basmati rice when the country was facing food inflation.)
Another Indian listed firm has been importing 9,000 tonnes of Basmati rice annually. However, it did not import any rice from Pakistan after May 2.
Point of view
Indian firms have sourced Basmati rice from Pakistan’s Maps Rice Mills Private Ltd, Staple Food Private Ltd, Matco Foods Ltd, Fatima Rice Mills Pvt Ltd, Atlas Food Pvt Ltd, Supreme Rice Mills Pvt Ltd, Garibsons Pvt Ltd, Rice Expert Enterprises, Bismillah Sella Processing Pvt Ltd, Masafa Rice Mills Pvt Ltd and Sarwar Foods Pvt Ltd.
Two of the companies floated by Indians that have subsidiaries here regularly source Basmati rice from Pakistan into Europe. One of them imported 52,511 tonnes valued at ₹357 crore in 2024. Another firm imported 16,673 tonnes valued at ₹162 crore in 2024.
“Sourcing Pakistan Basmati rice by these firms owned by Indians should be seen from the Khalistan and anti-national point of view,” said the source.
Two European companies that have subsidiaries in India annually import 1.5 lakh tonnes of Basmati rice from Pakistan. Buying activities by these companies from Pakistan increased when India imposed MEP.
The 1965 example
Sources said the Indian listed companies, in particular, cannot claim their subsidiaries have taken independent decisions as they have the same software for enterprise resource planning (ERP) and system applications and products (SAP) for their operations. Relatives of the promoters manage these subsidiaries.
Data also showed that Pakistan earned about ₹11,000 crore by exporting 1121 Basmati rice. This is a pirated version of Pusa-1121 from India, and the Indian Agricultural Research Institute has called for coordinated efforts to tackle this piracy. At least 11.45 lakh tonnes of the pirated 1121 variety have been exported to over 80 countries from January 1, 2022, to June 30, 2025.
Sources wondered if these firms will resort to buying more Basmati rice from Pakistan for exports to the US, after the Donald Trump administration has decided to impose a 50 per cent tariff on Indian products.
They also wonder if some of these firms that are on the Basmati Export Development Foundation are sharing key trade information with Pakistan.
When Indian corporates such as Tatas, Birlas, Cipla and Ranbaxy, besides Indian Overseas Bank and Allahabad Bank, ended their operations and relationship with Pakistan after the 1965 war, why have companies having links in India not done anything at least after the 2016 Uri incident, the sources asked.
Published on August 12, 2025
