?China Rejects Indian Chilli Shipments After Rice Export Dispute?

?China Rejects Indian Chilli Shipments After Rice Export Dispute?

China has rejected chilli shipments from three Indian exporters, claiming they contained high levels of methamidophos, a pesticide not approved for use by Indian farmers. The exporters have also been temporarily suspended.

This comes just a month after China rejected 70 shipments of Indian non-Basmati rice from three other companies. Chinese importers cited GMO concerns, but Indian exporters denied the claims.

Experts believe China is increasing food safety checks on imported agricultural products, focusing on pesticide residues and GMO compliance.

China is the largest buyer of India's Teja chilli variety, importing between 1.5 and 1.9 lakh tonnes every year. In 2024-25, India exported more than 2.36 lakh tonnes of chilli to China out of its total global chilli exports of 7.6 lakh tonnes.

Industry sources say China's chilli imports may have slowed due to large stockpiles built up after heavy purchases over the last two years. The rejected chilli shipments have not been returned, but prices are being renegotiated, creating uncertainty for Indian exporters.

Meanwhile, trade tensions continue between the two countries. India's trade deficit with China has grown from $37 billion in 2010-11 to more than $110 billion today, even as trade and investment ties remain strong.

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