Protest against increase in Basmati rice export registration fee
03-Oct-2025 06:20 PM
New Delhi. The Basmati Rice Exporters Association of Punjab and Haryana has objected to the government's decision to increase the registration fee for export contracts from Rs. 30 per tonne to Rs. 70 per tonne and has strongly demanded its withdrawal.
According to industry analysts, if India's basmati rice exports remain at the same level as in the 2024-25 fiscal year, APEDA's revenue from registration fees on export deals will jump 73 percent to Rs. 31 crore in the 2025-26 fiscal year. On the other hand, the income of basmati rice exporters will decline sharply.
Although this registration fee appears small compared to the export offer value and the large volume of shipments of basmati rice, exporters argue that the devastating floods in Punjab have not only damaged the basmati rice crop but also left fields filled with sand and debris, causing significant hardship for farmers.
Basmati Export Development Fund (BEDF) funds should be used to clear the fields. Since the registration fee is not classified as a tax or cess, there will be uncertainty regarding the use of the proceeds.
As of March 31, 2025, the Board had approximately ₹25 crore (approximately ₹250 million) in the BEDF. In May 2005, the BEDF decided not to collect any contributions from exporters until this deposit falls below ₹100 million (approximately ₹100 million).
In light of this, the government should not increase the registration fee on export contracts now, but should instead defer collection of this fee.
It was suspended from 2005 to 2012. However, in 2013, the registration fee was implemented at Rs. 50 per tonne, and then reduced to Rs. 30 per tonne in 2014. There is no need to increase it to Rs. 70 per tonne at this time.
The Haryana Rice Exporters Association has revealed that the proposal to increase the registration-cum-allotment certificate fee for Basmati rice was neither discussed nor approved in the BEDF Board meeting held on June 24, 2025, but it was implemented anyway. This is truly surprising.