The Agricultural and Processed Food Products Export Development Authority (APEDA) will park all money exceeding ₹1 crore from the Non-Basmati Rice Development Fund (NBDF) into fixed deposits, according to a decision by an internal committee. The fund, designed to promote non-Basmati rice exports, had collected ₹9.66 crore between September 25, 2025, and April 30, 2026, through a mandatory contract registration fee.
NBDF Background and Fee Structure
The Department of Commerce (DoC) approved the establishment of the NBDF in July 2025, with modalities finalised in September 2025 when fee collection began. The fund is managed by a panel chaired by APEDA's Chairman and includes eight members, among them three industry representatives. APEDA retains 30% of the collected fees for services and infrastructure, with the remaining 70% allocated for promotional activities.
The registration fee is set at ₹9.44 per tonne, inclusive of 18% GST. By April 30, 2026, APEDA had issued Registration-cum-Allocation Certificates (RCACs) for approximately 10.23 million tonnes of non-Basmati rice, generating the ₹9.66 crore pool.
| Metric | Value |
|---|---|
| Fee per tonne (incl. GST) | ₹9.44 |
| Collection period | Sep 25, 2025 – Apr 30, 2026 |
| Total collected | ₹9.66 crore |
| RCACs issued (volume) | ~10.23 million tonnes |
| APEDA share (30%) | ~₹2.90 crore |
| Estimated available for activities | ₹5–6 crore (post taxes & charges) |
Investment Decision
The Internal Investment Committee (IIC), comprising the NBDF secretary, APEDA's cereal division head, and other officials, decided that any amount in the NBDF account 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 IIC's objective, according to an official source, is to ensure transparent fund management, provide investment oversight, optimise growth, and preserve capital with minimum risk.
Usage of Funds
A portion of the collected funds has already been spent on promotional events. The NBDF committee was informed that expenses were incurred for the India International Rice Summit in Raipur and space rental for Gulfood 2026 exhibition in Dubai.
Per government guidelines, the 70% share of fees must be used for:
- Training farmers in Good Agricultural Practices (GAP) and organic production
- Increasing production and productivity of non-Basmati rice
- Research, development, and extension services
- Trade delegation visits, promotional programs, and buyer-seller meets
- Consumer research and studies
Exporters' Concerns
While NBDF committee members from rice industry associations concurred with the term-deposit strategy to build a corpus, some exporters who requested anonymity expressed dissatisfaction. They argued that the fund is too meagre to keep idle and should instead be spent on boosting exports, especially when Indian rice is not fetching better rates globally compared to competitors.
The article was published on June 10, 2026, by BL New Delhi Bureau.
Sources:
