India unbinds diplomatic mission to clear Indonesia farm export imbroglio

India has unleashed its diplomatic might to end the imbroglio with Indonesia on import of agriculture products and is hopeful that the shipments from the host country (India) will start moving in the next week to 10 days.

Sources in the ministry of commerce and also other places said that in the last couple of days Indian ambassador to Indonesia has called on the Director General of Indonesia Agriculture Quarantine Agency (IAAQ) while here in India top officials from APEDA and ministry of commerce have met officials in the Indonesia embassy to clear the confusion.

Indonesian agriculture imports from India have come to a sudden standstill since the last few days after the authorities there barred the approval given to certification agencies based in India.

These agencies or labs issued certificates that are mandatory for exporting agriculture products to Indonesia and had their license valid till March 25.

However, sources said despite India compiling and sending all the required documents that include intricate data for the last three years through its embassy in Indonesia in the last week of February for the renewal of the licenses.

The Indonesian authorities issued an order on March 23, cancelling all the license that it has given to the India-based certification agencies calling for fresh applications to be made.

Indonesia imported around $692 million of APEDA certified agriculture products from India as of 2020-21 that included rice, groundnut, wheat, onion, dairy and poultry products. Dairy and Poultry products have been kept out of this certification ban for now.

On imports, India is one of the biggest buyers of palm oil from Indonesia and imports almost 30 percent of the monthly requirement of crude and refined palm oil from that country.

“One must understand one thing, that just like we are keen to restart our exports, Indonesia is also looking to end the crisis at the earliest because this is the month of Ramadan there when demand for agriculture products mostly rice, sugar, wheat and onions shoot up,” a senior trade official said.

He said with the kind of push given by all including highest authorities in the commerce ministry, he was hopeful of solving the imbroglio very soon.