NEW DELHI: A new report prepared by the think tank ICRIER has highlighted that the European Union (EU) has issued over 200 rapid alert notifications regarding Indian rice consignments in the past five years.
These alerts have primarily been due to the presence of banned pesticide residues and issues related to environmental compliance. India is the world's largest rice exporter, accounting for 29 per cent of global rice exports, valued at USD 11.8 billion in 2024.
The report outlines the policy measures needed to sustain India's rice exports in the EU market; otherwise, India risks losing its market share to competitors like Vietnam.
The report emphasises the threats facing India's rice sector, specifically concerning various environmental and labour risks. Indian rice consignments continue to be rejected for using banned chemicals or for not adhering to the Maximum Residue Limits (MRL).
Between 2021 and 2025, numerous serious notifications were raised on the EU’s Rapid Alert System for Food and Feed (RASFF) portal due to traces of banned chemicals or pesticide residues exceeding MRL limits in Indian rice.
During this period, the EU's stringent regulations resulted in over 200 notifications for non-compliance with EU requirements regarding Indian rice consignments.
These included alerts categorised as high or potential risk, primarily due to toxins and residue violations, underscoring persistent compliance gaps and increasing reputational risks.
The EU has banned several chemicals such as Carbendazim, Tricyclazole, and Thiamethoxam due to health risks associated with their use. Additionally, some chemicals, while not banned, are subject to strict residue limits, including Aflatoxin B1, Ochratoxin A, and Imidacloprid.
The report also points out that the environmental risks related to India’s rice sector are closely tied to farm-level input management, cultivation practices, soil and water quality, waste disposal mechanisms, and post-harvest handling.
Other environmental challenges include the extraction of resources, chemical input usage, water overuse or groundwater depletion, and energy subsidies that promote inefficient energy use.
Since the introduction of the EU Green Deal in 2019, the EU has implemented higher food safety standards than any other country, which acts as a major non-tariff barrier related to food safety and sustainability.
These tightened regulatory standards have increased costs and created new export challenges for Indian rice exporters. The report also highlights that regulatory barriers are expected to intensify under the upcoming EU Corporate Sustainability Due Diligence Directive (EUCS3D) compliance obligations, starting in 2027.
This directive will expand the scope of responsibility beyond product standards to include environmental and human rights due diligence across supply chains, imposing an additional layer of compliance for Indian exporters targeting the EU market.
In this context, strengthening domestic regulatory frameworks, enhancing monitoring systems, and improving producers' and exporters' awareness of international standards are essential for sustaining India’s competitiveness in high-value markets.