DRI detains over 400 organic rice containers at JNPT, Mundra, and Kandla ports following reports of non-organic rice being mislabeled as organic for export.
The Directorate of Revenue Intelligence (DRI) has detained over 400 containers of rice labelled as organic at JNPT, Mundra, and Kandla ports. The action follows reports of non-organic white and parboiled rice being exported under the guise of organic rice, violating export regulations.
Trade sources revealed that these shipments exceeded the previous fiscal year’s exports, with over 1.46 lakh tonnes of organic rice exported between April and July 2024. The shipments included 1.27 lakh tonnes of white rice and over 8,000 tonnes of broken rice, despite the existing ban on white and broken rice exports from India since July 2023. Exporters also evaded the 20% duty imposed on parboiled rice.
The detained shipments included over 200 containers from JNPT alone. Reports indicate that 22,126 tonnes of organic rice destined for Vietnam and 16,547 tonnes for Kenya were misdeclared. Only 2,000 tonnes of organic rice reportedly reached Vietnam, while Kenya received none. The consignments were either diverted or falsely labelled as organic.
Sources noted that these exports were made at prices similar to those of non-organic rice, raising suspicions. Some shipments were falsely declared as originating from Sikkim, a fully organic state. The Commerce Ministry is investigating certification bodies in Sikkim and Jaipur involved in these certifications.
Industry insiders suggest that “fly-by-night” operators orchestrated these exports using fraudulent documents. Preliminary data points to the involvement of entities from Bihar and Odisha. Questions have also arisen about how the Customs Department cleared these shipments, given the discrepancies in certification documents.
Experts emphasise the need for better integration between TRACENET, used by the Agricultural and Processed Food Products Export Development Authority (Apeda), and the Customs’ ICEGATE system to prevent such violations. The recent crackdown came after reports highlighted the irregularities in organic rice exports, prompting swift action from DRI, Apeda, and other authorities.
