China has turned away three shipments of Indian rice alleging the presence of genetically modified organisms (GMO) in what appears to be a calculated attempt to gain leverage in trade talks. The rejection comes despite the fact that the non-basmati rice consignments were tested and cleared by a Chinese agency before the shipments.
Furthermore, India has yet to permit the commercial cultivation of any GM food crops, with cotton remaining the only genetically modified one authorised in the country. The affected companies have taken up the matter with India’s agri-export promotion body, APEDA, as well as the Indian Council of Agricultural Research (ICAR), according to industry sources.
In its representation to ICAR, Nagpur-based Shriram Food Industry said that Chinese buyers and authorities are demanding an official declaration confirming that rice grown in India is non-GMO, even though only non-GMO paddy is cultivated nationwide. The company has requested that ICAR issue a general statement or declaration confirming this status.
Seeks APEDA probe
“This would be extremely helpful for exporters like us, as several shipments to China are currently facing difficulties during clearance due to the absence of such a document,” the firm noted in its communication.
Anup Goyal, Chairman and Managing Director of Shriram Food, said the India office of China Certification & Inspection Group (CCIC), a Chinese State-owned company, had inspected and certified the shipments, yet they were still rejected by Chinese customs upon arrival. Goyal stated that they have requested APEDA to investigate how these consignments were rejected on grounds of GMO presence after receiving prior clearance.
Industry sources pointed out the irony in the situation, noting that China itself grows GM rice. In 2006, the European Union had even flagged concerns regarding GM contamination in Chinese rice exports.
Why only India?
Foreign trade policy expert S Chandrasekaran wondered why China is demanding GM-free declarations, specifically from India and not from competitors like Thailand, Vietnam, Pakistan, or Myanmar. He said China may be engaging in strategic trade planning regarding its rice supply.
Data show that India exported 180,805 tonnes of non-Basmati rice worth $79.43 million to China in 2024-25. During the April-January period of the current fiscal year, the volume higher at 186,013 tonnes, though the value was lower at $65.59 million. Because China previously restricted Indian rice through non-tariff barriers, exports were minimal until 2019-20 — totalling only 567 tonnes, but surged to 331,571 tonnes in 2020-21 after the curbs were removed.
While the current volume is relatively small compared to the 14 million tonnes of non-Basmati rice India exported globally in 2024-25, trade sources said access to this growing market is vital. USDA data indicate that China’s rice imports are estimated to rise to 3.1 million tonnes in 2025-26 from 2.3 million tonnes in 2024-25. Its exports and production are also pegged for slight increases during the same period.
100 mills authorised
When China first allowed Indian rice imports, its internal teams initially recognised only 16 Indian mills. Over time, it began accepting the Indian government’s own recognition, and currently, over 100 rice mills are authorised to export to China.
Chandrasekaran said while India has deregulated certain modern breeding techniques to enhance climate resilience, China maintains a high-security, process-based approach that may view these techniques as a biosafety risk.
“While India has deregulated certain modern breeding techniques to boost climate resilience, China maintains a high-security, process-based approach that may view these same techniques as a potential biosafety risk,” he said.
Published on March 24, 2026
