Exporters are under severe financial and operational stress due to war-related disruptions.

Basmati exporters have urged Apeda to immediately suspend or withdraw the levy of ₹70 per tonne plus GST being charged on contract registration and collected for the Basmati Export Development Foundation (BEDF) as the industry is passing through an exceptionally difficult period after US-Iran war.

Pointing out that exporters are already under severe financial and operational stress due to war-related disruptions, delayed realisations, higher freight, higher insurance, blocked funds, and shrinking margins, it said annual collection itself would be extraordinarily high.

“It is also pertinent to note that annual export of basmati rice is more than 60 lakh tonnes (lt) and at ₹70 per tonne rate, the yearly collection by Apeda/BEDF works out to more than ₹42 crore, excluding GST. This itself reflects the magnitude of the burden being imposed on the trade,” said Haryana Rice Exporters’ Association (HREA).

In a letter to Abhishek Dev, Chairman, Agricultural and Processed Food Products Export Development Authority (Apeda), on April 7, HREA President Sushil Jain has said that current international situation and war-related disturbances in key trade routes and markets have substantially worsened export conditions.

War-related disruptions

Exporters are facing delay/blockage of export payments, shipment delays, cargo rollover, cargo diversion or return, demurrage, detention, warehousing expenses, higher freight, war-risk surcharge, emergency shipping charges, and increased marine insurance premiums.

The levy becomes extremely substantial when viewed in terms of actual export volumes, Jain said for instance, an exporter has to pay a total ₹41.30 lakh (including GST) to export 50,000 tonnes of basmati and it rises to ₹1.65 crore for 2 lakh tonnes.

“This clearly shows that the levy is not minor or nominal, but a very heavy financial burden on exporters, especially when margins are already under severe stress,” he added.

Indian Rice Exporter’s Federation (IREF) has also written to Apeda seeking immediate suspension of the levy.

Price-sensitive

Rajeev Setia, IREF’s acting president of basmati rice division, said in August 2025 processing fee of was raised to ₹70 per tonne from ₹30 for issuance of RCAC (Registration-Cum-Allocation Certificate) for basmati rice exports.

With GST, the burden on exporter further escalated to ₹82.60 a tonne, Setia said.

Pointing out that Indian basmati exporters operate in highly price-sensitive markets such as the Middle East and the EU, he said the added costs cumulatively erode India’s price advantage over Pakistan, especially for large-volume shipments.

Small and medium exporters, who form a significant share of the ecosystem, are likely to be hit harder, potentially reducing their participation in export markets.

Published on April 16, 2026