Supreme Court rules on basmati rice export and FSSAI standards

The Supreme Court of India has dismissed a review petition filed by the Revenue regarding a legal dispute over basmati rice export standards. The case centered on whether exporters must comply with compositional standards set by the Food Safety and Standards Authority of India (FSSAI) in addition to the specific export conditions outlined in the Foreign Trade Policy (FTP).

The dispute originated when Hightop Trading Pvt. Ltd., an APEDA-registered exporter, shipped brown basmati rice to the United Kingdom. While the shipment met most parameters, it failed to meet specific FSSAI standards regarding cooked rice length and elongation ratio. Consequently, the Revenue sought to classify the goods as non-basmati rice, leading to demands for duty recovery, penalties, and confiscation under the Customs Act, 1962. The court's dismissal affirms a previous decision by the CESTAT Chandigarh Bench.