APEDA Parks ₹6 Crore in Term Deposits as Non-Basmati Rice Stalls

The government's agri-export body APEDA has decided to invest any balance above ₹1 crore from its Non-Basmati Rice Development Fund (NBDF) into term deposits, rather than spending the money on export promotion. The move has drawn quiet criticism from exporters who say the fund is too small to justify hoarding ₹5-6 crore in a bank account while Indian rice loses price ground to global competitors.

APEDA collected ₹9.66 crore from non-basmati rice exporters through a mandatory contract registration fee between September 25, 2025 and April 30, 2026, official sources said. The Department of Commerce approved the NBDF in July 2025, with a mandate to promote non-basmati rice exports. The fee is ₹9.44 per tonne including 18% GST. APEDA keeps 30% of collections. The remaining 70% is meant for promotional activities: training farmers in Good Agricultural Practices, trade delegations, buyer-seller meets, and consumer research, according to government guidelines.

An Internal Investment Committee – comprising the NBDF secretary, the head of APEDA's cereal division, and other officials – decided that amounts exceeding ₹1 crore (including current account and sweep balance) shall be invested in term deposits in multiples of ₹50 lakh on a periodic basis. The objective, per an official source, is "transparent and effective fund management, provide investment oversight and investment strategy for unutilised funds, optimise growth and capital preservation with minimum risk." Industry representatives on the NBDF committee concurred with the decision.