KRBL Limited , the world's largest integrated manufacturer and exporter of Basmati rice, has initiated a pan-India awareness campaign through its India Gate brand. The campaign aims to educate consumers and trade partners about the new Food Safety and Standards Authority of India (FSSAI) regulations for Basmati rice, which came into effect on August 1, 2023.

New FSSAI Standards for Basmati Rice

The newly enforced FSSAI regulations establish stringent quality parameters for various forms of Basmati rice, including brown, milled, and parboiled varieties. Key aspects of the new standards include:

• Restriction of non-basmati grain presence to a maximum of 15% in Basmati rice
• Requirement for natural fragrance in the rice
• Prohibition of artificial coloring, polishing agents, and artificial fragrances

These regulations are designed to address the issue of adulteration in Basmati rice sold across India, ensuring consumers receive authentic products.

Comprehensive Awareness Campaign

KRBL Limited's awareness initiative encompasses multiple channels to reach a wide audience:

• Television commercials
• Print advertisements
• Social media campaigns

The company aims to inform consumers about the new quality standards and help them make informed decisions when purchasing Basmati rice.

Alignment with Company Mission

Ayush Gupta, Business Head at KRBL Limited, emphasized that the new regulations align with the company's mission to deliver authentic Basmati rice to consumers. He stated that the standards address the rampant adulteration in Basmati rice sold in India, highlighting the company's commitment to quality and authenticity.

KRBL Limited's Market Position

As the world's largest integrated manufacturer and exporter of Basmati rice, KRBL Limited boasts impressive processing capabilities:

The company's initiative to promote awareness about the new FSSAI standards demonstrates its leadership role in the Basmati rice industry and its dedication to maintaining high-quality standards in the market.

This awareness campaign by KRBL Limited not only educates consumers but also reinforces the company's position as a responsible and quality-focused player in the Basmati rice sector.

KRBL Limited , a leading rice exporter, has been slapped with penalties totaling Rs 6.10 crore by the Joint Commissioner of Customs, Noida, over alleged non-conformance to certain standards under the Basmati Rice (Export) Grading and Marking Rules, 1979.

Breakdown of Penalties

The order includes:

• A penalty of Rs 5.60 crore on both KRBL Limited and its Chairperson and Managing Director under Section 114(i) of the Customs Act, 1962.
• A redemption fine of Rs 0.50 crore on the company under Section 125 of the Customs Act, 1962.

Origin and Company's Response

The penalties stem from a show cause notice dated May 9, 2012. KRBL Limited has stated its intention to file an appeal with the appropriate authority against this order.

Financial Impact

In a disclosure to the stock exchanges, KRBL Limited asserted that there is no significant impact on its financial, operational, or other activities due to this order. The company maintains its position and plans to pursue legal remedies.

Market Implications

While the penalty amount is substantial, KRBL's statement regarding the lack of significant impact on its operations may provide some reassurance to investors. However, the market will likely keep a close eye on the appeal process and any potential long-term effects on the company's export practices.

The case highlights the stringent regulations surrounding India's basmati rice exports, a sector in which KRBL Limited is a major player. As the legal process unfolds, it may have broader implications for the industry's compliance with export standards and regulations.

Investors and industry observers will be watching closely to see how this development affects KRBL's market position and whether it leads to any changes in the company's export procedures or quality control measures.