Basmati exports from Punjab face rejection in Australia; who is to blame?

Fifty to sixty containers of basmati rice from Punjab face the possibility of being sent back to India after Australian authorities rejected fumigation certificates issued by service providers whose approvals they had suspended. Fumigation is a chemical treatment to prevent infestations, aimed at ensuring rice meets Australia's biosecurity standards.

Exporters estimate losses amounting to crores of rupees, with Punjab and Haryana potentially bearing a significant share of the impact. The dispute centers on whether exporters should bear the costs after the suspension of the service providers they used. Australia conducted an audit of fumigation service providers in June, physically inspecting facilities in Punjab and Haryana.

Suspended providers included those from Punjab and Haryana, following a biosecurity audit that checked whether the fumigation process complied with Australian requirements. The audit examined whether the certificates accompanying the consignments were valid. Exporters claim they used service providers approved under India's plant quarantine system, with certificates issued under the prevailing procedure.

They argue they should not bear the costs after the service providers were suspended. Australia's Department of Agriculture, Fisheries and Forestry is scrutinizing service providers and reviewing the certificates in more depth. The Australian action is not a rejection of Indian basmati on quality grounds but concerns the biosecurity treatment and certification process required for entry into Australia.