Indonesia approves Indian labs to end stalemate on agriculture exports

Indian agriculture imports halted last late March to Southeast Asia nation, prompting New Delhi to put diplomatic pressure

Indonesian authorities have granted a blanket license to most Indian food testing labs for three years, ending an imbroglio over import of agriculture produce from the South Asian nation.

The Indonesian Agricultural Quarantine Agency (IAQA) said the agriculture ministry has issued a decree for registering labs in India—a document valid for three years starting April 13 and that can be renewed further.

Indian consignments already bound for Indonesia can be accompanied by a Certificate of Analysis (COA) issued on March 24 or earlier.

Indian agriculture imports halted last late March after Indonesian authorities 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.

Sources said sent all required documents, including intricate data for the last three years, through its embassy in the last week of February for the renewal of the licenses.

Indonesian authorities, however, issued an order on March 23, canceling all licences given to India-based certification agencies and calling for fresh applications. This also impacted shipments in transit carrying agriculture products like rice and sugar from India.

India then launched a diplomatic offensive to end the imbroglio.

India’s ambassador to Indonesia, in the last couple of weeks, has called on the Director General of the Indonesia Agriculture Quarantine Agency (IAAQ). In India, top officials from the Agriculture and Processed Food Export Development Authority (APEDA) and the ministry of commerce met officials in the Indonesian embassy.

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.