China rejects Indian rice shipments citing GMO concerns; exporters flag ‘trade tactic’

China has rejected at least three consignments of Indian non-basmati rice citing the alleged presence of genetically modified organisms (GMOs), triggering concern among exporters who suspect the move may be aimed at gaining leverage in ongoing trade engagements.

The shipments had reportedly been tested and cleared prior to export by the China Certification & Inspection Group (CCIC), a state-owned Chinese agency, raising questions over their subsequent rejection by customs authorities in China.

India does not permit commercial cultivation of GM food crops, with Bt cotton remaining the only genetically modified crop approved in the country.

Exporters seek official ‘non-GMO’ declaration

Affected exporters have taken up the matter with the Agricultural and Processed Food Products Export Development Authority and the Indian Council of Agricultural Research, seeking intervention and clarity.

Nagpur-based Shriram Food Industry has urged ICAR to issue a formal declaration confirming that rice grown in India is non-GMO, citing repeated clearance hurdles.

“This would be extremely helpful for exporters as shipments are facing difficulties due to absence of such documentation,” the company said in its representation.

Chairman Anup Goyal said consignments certified by CCIC’s India office were still rejected on arrival, prompting the company to seek an investigation by APEDA into the discrepancy.

Questions over selective scrutiny

Trade experts have questioned why China is seeking GMO-free declarations specifically from India and not from other major rice exporters such as Thailand, Vietnam, Pakistan or Myanmar.

Foreign trade expert S. Chandrasekaran said the move could reflect “strategic trade planning” by China in managing its rice imports.

Industry sources also pointed out that China itself cultivates GM rice, and that its exports have previously faced scrutiny over contamination concerns in global markets.

Trade impact and data

India exported around 180,805 tonnes of non-basmati rice worth $79.43 million to China in 2024–25. In the current fiscal (April–January), exports rose to 186,013 tonnes, though the value declined to $65.59 million.

While these volumes are small compared to India’s total non-basmati exports of about 14 million tonnes, exporters say the Chinese market remains strategically important due to its growing import demand.

According to estimates, China’s rice imports are expected to rise to 3.1 million tonnes in 2025–26, up from 2.3 million tonnes in the previous year.

Regulatory differences

Experts say differing regulatory approaches may also be contributing to the issue.

India has relaxed norms around certain modern breeding techniques aimed at improving climate resilience, while China follows a stricter, process-based biosafety regime.

Chandrasekaran noted that such differences could lead Chinese authorities to treat even non-GM consignments with caution.

India’s rice exports to China had remained negligible until 2019–20 due to non-tariff barriers, but surged after restrictions were eased. Currently, over 100 Indian rice mills are authorised to export to China.

Exporters warn that continued uncertainty over GMO-related clearances could disrupt shipments and affect India’s access to a key emerging market.