CHANDIGARH: Following an audit by Australian biosecurity authorities, which operate one of the world’s strictest import control systems, the Australian Government has suspended the licences of 44 service providers, including five from Haryana and three from Punjab. The action affects around 60 per cent of Indian fumigation agencies approved to certify consignments bound for Australia, potentially disrupting shipments.
More than 100 containers of basmati rice, valued at around Rs 200 crore, are likely to be affected by the suspension.
Exporters clarified that Australia has not imposed any ban on Indian basmati rice imports. The action is limited to the suspension of certain fumigation service providers and does not raise concerns over the quality or safety of basmati rice.
India’s exports to Australia in the last fiscal year were valued at around $520 million, with basmati rice accounting for the largest share at $79 million, followed by miscellaneous processed items at $75 million and spices at $73 million.
According to Indian Government data, 72,422 MT of basmati rice worth Rs 734.87 crore was exported to Australia between June 2025 and May 2026. This was higher than the 60,177 MT worth Rs 607.23 crore exported during the corresponding period between June 2024 and May 2025.
Sources said Australian auditors observed instances where documentation indicated that some consignments had been packed before the recorded fumigation date, raising concerns over the integrity of the treatment chain. Authorities maintain that unless the entire post-treatment handling process is fully verifiable, the risk of re-infestation cannot be ruled out.
The action follows an Australian biosecurity audit conducted under the country’s stringent Biosecurity Act 2015, regarded as one of the world’s toughest import control regimes. Besides product quality, Australian authorities examine fumigation procedures, certification records, packaging, traceability and the integrity of the entire supply chain before allowing agricultural products into the country.
According to a communication from the Australian Department of Agriculture, Fisheries and Forestry, Canberra has in recent years shifted from document-based approvals towards continuous compliance monitoring and surprise audits.
Exporters said the decision could result in higher logistics costs, mandatory re-fumigation of consignments on arrival, shipment delays and additional compliance requirements, despite their adherence to existing export protocols. They may also have to bear additional re-fumigation costs ranging between USD 700 and USD 1,200 per container, depending on Australian quarantine requirements.
Ranjit Singh Jossan, Vice-President of the Basmati Rice Millers and Exporters Association, said the Australian action reflected shortcomings in the fumigation certification system rather than any lapse by exporters.
“Punjab’s basmati exporters depend on government-approved fumigation agencies authorised to certify shipments for Australia. Exporters have complied with the prescribed procedures, yet they have become unintended victims of regulatory action arising from compliance deficiencies in the certification process,” he said.
“Over 100 containers of basmati rice are likely to be affected by this suspension. If one container of basmati rice is valued at $22,000, consignments worth around Rs 200 crore are at risk of either being rejected or undergoing costly re-fumigation,” Jossan added.
He said India is the world’s largest exporter of rice, with basmati accounting for a significant share of its high-value agricultural exports. Although Australia is not the largest destination for Indian basmati, it remains a premium market with stringent biosecurity standards, rigorous regulatory requirements and relatively better price realisations.
“Consequently, any suspension of export-related approvals or enhanced inspection measures in Australia has implications that extend beyond that market and could potentially influence the risk perception of other developed importing countries,” Jossan said.
He said the rationale behind the decision lay in Australia’s Biosecurity Act 2015, which aims to protect the country’s agriculture, livestock, forests and biodiversity from invasive pests, diseases and other biosecurity threats.
“Australian regulations require not only that fumigation is carried out correctly, but also that every stage of the process, including treatment timing, gas concentration, temperature, exposure period, documentation and post-treatment handling, is fully recorded and compliant with prescribed standards,” Jossan said.
He added that Australia operates the Australian Fumigation Accreditation Scheme, under which overseas fumigation agencies must undergo technical evaluations, training and regular compliance audits before being authorised to certify export consignments. Accreditation remains subject to continuous monitoring and can be suspended if compliance concerns arise.
Industry representatives said the development highlighted the need to strengthen India’s fumigation compliance and certification framework in line with international biosecurity standards.
