The European Union (EU) is set to limit rice imports from India and other Asian countries to safeguard its growers and millers. The limits will be imposed through a safeguard mechanism. The move comes despite the EU committing itself to a free trade agreement (FTA) with India, after 11 of 23 chapters had been agreed upon already.
EU comes up with a Mechanism for Basmati & Non-basmati rice imports
In this recent move, the European Council and Parliament have decided to come up with a specific automatic safeguard mechanism for basmati and non-basmati rice imports, which targets exports from India and other Asian producers. The Council and Parliament agreed to employ a specific automatic safeguard mechanism for rice imports, through a tariff rate quota system, on Monday, December 1. If there is a major increase in rice imports above the historical average imports to the EU, the safeguard mechanism will come into play. It will make sure that shipments are subject to most favoured nation (MFN ) tariffs for a specific period to safeguard the EU rice market. Its legislation will come into force on 1 January 2027.
A note prepared by the Council of the EU on November 12, 2025, stated that EU imports from third countries are estimated to reach 1.5 million tonnes, mainly from India, Pakistan and EBA (Everything but Arms) countries — primarily Myanmar and Cambodia — which relish a preferential zero customs tariff on all types of rice and for all stages of processing. S Chandrasekaran, a New Delhi-based analyst stated that it looks like the rice market will shift from being free to oligopolistic in Europe. Less than a dozen players in Europe will benefit however, exporters of packaged and husked rice from India will likely be affected. Furthermore, he said that some 1.42 lakh tonnes (lt) of rice go in packaged form. The move is witnessed as an effort by European rice millers to promote their own brand. However, sales of packaged basmati or specialty rice such as Ponni or Sona Masuri are around 48,000 tonnes. The EU imposed safeguard duty on rice imports from Myanmar and Cambodia in 2019. It expired in 2022. Discussions for the current proposals started in 2022.
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