APEDA Allocates Significant Fees to Fixed Deposits from Non-Basmati Export Development Fund.
The Agricultural and Processed Food Products Export Development Authority (APEDA) has reported the collection of ₹9.66 crore from non-Basmati rice exporters through a mandatory contract registration fee between September 25, 2025, and April 30, 2026. This fee, set at ₹9.44 per tonne (including GST), is part of the broader framework established by the Department of Commerce (DoC) to support non-Basmati rice exports via the Non-Basmati Rice Development Fund (NBDF). An internal committee within APEDA has decided to invest all excess funds above ₹1 crore in term deposits to optimize growth, while 70% of the collected fees will be allocated for promotional activities deemed necessary for enhancing export performance.
This development holds significant implications for ordinary citizens, particularly farmers and rice exporters. By utilizing a portion of the collected fees for training in Good Agricultural Practices (GAP) and promoting organic production, the initiative aims to improve production standards, ultimately benefiting farmers through potential higher yields and better market access. However, concerns have been raised by some exporters about the adequacy of the fund and whether the investment strategy aligns with the urgent need for improved export rates amid global competition. The decision to maintain a corpus instead of immediate expenditure could create short-term dissatisfaction among stakeholders who seek urgent action to bolster export competitiveness.
Looking ahead, the government’s focus will likely remain on the strategic deployment of the NBDF to strengthen India’s non-Basmati rice export framework. The upcoming steps will possibly involve increased transparency in fund management and defining clear metrics to measure the impact of promotional efforts on export performance. Continued engagement with rice industry associations and exporters will be crucial in shaping effective policies and interventions. Monitoring international market trends and adjusting strategies accordingly will also be essential for ensuring that Indian non-Basmati rice maintains its competitive edge globally.
Source: The Hindu
(Expert Note: This report was independently prepared by the Wealthova Economy team.)